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Author: OpenWork Agency

Most Interesting Coworking-Related Articles of 2018 (January)

As part of being in the coworking industry since its inception, operating coworking spaces, consulting with coworking operators and real estate developers, participating in (and running) global coworking and workspace conferences, it’s our job at OpenWork to stay-in-the-know regarding innovations (and disruptions) in our industry.

We share a lot on social media about coworking, the future of work, and innovation. You can follow OpenWork Agency on LinkedIn or @OpenWorkAgency on Twitter.

With so much going on in the industry, it’s easy to miss some of the most interesting happenings, so we wanted to take a little bit of time and curate a quick list of some of the more interesting/thought-provoking articles that came across our newsfeed in the last month.

OWA’s Recommended Coworking Articles of January 2018

8 Things You Should Know About Coworking Space in 2018

A transformative change has taken place in recent years – with the concept of coworking evolving from an alternative to a traditional office lease for start-ups and freelancers to becoming an integral component of bona fide corporate real estate portfolios. Here are eight key concepts for 2018 and beyond. (Published: 01/18/2018)

California Resorts Offer Skiing by ‘Subscription’

The idea for the membership began early on when looking at the people taking advantage of the coworking spaces. “People aren’t coming to Mammoth just to work,” said Jung. “They’re coming for a specific reason–to ski, bike, hike, and do all the things Mammoth is famous for. We wanted to create … (Published: 01/18/2018)

6 office improvements to promote employee mental health in 2018

Efforts to reap the benefits of the cubicle farm and the open office floor plan without the downsides mean that 2018 will be the year that employers attempt to find balance when it comes to office space. To do so, they’ll likely focus on a few other key areas to improve employee productivity, creativity and mental health… (Published: 01/19/2018)

 

Health care leader breaks ground on co-working space in Northeast Heights

Albuquerque will soon have a new elder care-focused co-working space – the first of its kind locally, according to its founder. Mary Martinez broke ground on the Isabel Gallegos Center for Aging on Wednesday afternoon, putting her closer to her goal of helping New Mexico’s aging population in every … (Published: 01/04/2018)

Why prioritizing human experience in the workplace is key to shared future success

The World Economic Forum’s agenda for its annual meeting in Davos this month is ‘Creating a Shared Future in a Fractured World’. January is a time for fresh thinking and I’ve been giving some thought to the words ‘shared future’ as the resounding note of optimism in that theme. In particular, I have been reflecting on how that applies to the changing concept of work. (Published: 01/18/2018)

Mumbai, Jan 7 The momentum gained by co-working spaces in 2017 is likely to continue this year as well as large corporates look at consolidating businesses to maximise their productivity, says experts. Co-working, also known as alternative workspaces, is recognised as a style of working as well as… (Published: 01/07/2018)

Micro-leasing deals on prebuilt offices raise occupancy at 1 World Trade Center

the standard leasing model is disrupting/ innovating. (Published: 01/17/2018)

The Changing Value Proposition Of Coworking: A Q&A With Steve King

Allwork spoke with King about coworking going mainstream, the growing value of professional networks and how reducing loneliness is emerging as a core value proposition of coworking. Allwork.Space: With regards to the shared workspace industry, are there trends you’re following that other people may … (Published: 01/11/2018)

That’s all for now… Cheers to a great start to 2018- Looking forward to what February has in store!!


This article was written by David Walker, Founding Partner at OpenWork Agency. Connect with David on LinkedIn to follow his posts about coworking, future of work, and innovation. 

Company Culture in the Age of Coworking

In my current book project (tentatively called “After Corporate Culture”), I am trying to understand the long-term impact that fluid and mobile working is having on company culture. For quite some time, of course, many firms have allowed, either officially or unofficially, employees to work from home or off-site at least some of the time. However, as more and more firms embrace fully-alternative workplace solutions such as coworking, something new is happening.

The project starts with a couple of simple questions:

  1. What happens to a sense of company community, shared identity, and common practices among employees of companies who no longer work at the company (i.e. on the company campus)? Disconnected from the day to day interactions, informal communications and routines, to what extent does a connection to a common culture begin to dissipate?
  2. The corollary and equally important questions is: How do the interactions and experiences of corporate coworkers (defined as employees of firms who actually work on a daily basis at a coworking space such as WeWork rather than at the ‘company’ office) reflect back on and impact the mother-ship culture back at HQ?

Only long-term research and observation will be able to answer these questions, but I think the questions are worth asking. But why?

Earnings & Omelettes

The first and quick answer is that, at last count, ~15% of the S&P 500 companies now have some number of employees who work out of coworking spaces. That is, coworking is no longer just a cool thing for kids and startups. It is for grown-ups too, and it is happening in real numbers.

The second, and more complicated answer is that by scrambling people who work for different firms into work omelettes, there is fresh potential to perhaps alter the DNA of the companies whose employees are participating in the mashup. To the extent that, sadly, so many public companies have their people locked into the executioners’ cycle of quarterly earnings management, it is hard to see what conventional tweak or tool can possibly intervene in any meaningful way.

At OpenWork, we believe that the long-term potential of coworking goes far beyond workplace strategy and revenue per square foot. While the real estate industry has been the most enthusiastic of the late adopters, we anticipate that large firms (and their HR functions) will make up the late majority of participants over the long haul.

Emergent Culture Inventory

Going forward, we are looking at ways to understand and map emergent cultures in companies and coworking spaces where the omelettes are being made. We would be foolish to assume that the cultural experiences of such knowledge workers will remain the same as their more sedentary and domesticated counterparts. Sending employees out ‘into the wild’ is scary for some firms, but the knock-on effect of that is now a thing.

The Emergent Culture Inventory (ECI) tool is a simple, real-time diagnostic platform that captures key words and phrases that employees use to describe their experiences, levels of motivation, engagement, and productivity. Rather than asking questions that presume that companies fall within a certain “type” of culture, the ECI works from the bottom up and lets the employees tell us what is going on and what it means to them. Monitoring and mapping these experiences over time will eventually tell us what coworking really means for companies that embrace it.


This article was originally posted on LinkedIn by OpenWork Agency Partner, Drew Jones, PhD.

Are You Ready for Coworking?

Are You Ready?

For the past four years we have been closely watching as more and more mainstream users have embraced coworking as a new way of working. What at first seemed like a fringe phenomenon that was suited primarily for freelancers and startups has grown to be much more than this.

coworking readiness assessment

Recently, while walking through a WeWork, we noticed areas where employees of Dell, Amazon.com, and Samsung were all (co)working on the same couple of floors. Employees of different (large) firms sharing a workspace is something that no one would have predicted ten years ago. Yet here it is, happening everyday. In fact, 10% of the S&P 500 companies now have employees who cowork. A recent survey of companies included the following firms:

  • Dell
  • GE
  • HSBC
  • Merck
  • Microsoft
  • Silicon Valley Bank
  • Amazon.com
  • Unilver
  • Marriott
  • KPMG

What does it mean for companies whose employees cowork around employees of other firms? Have you ever thought about how coworking might be relevant to you personally or your company organizationally? Do you think you are ready for coworking?

Find out at: CoworkingReady.com


This article was originally posted on LinkedIn by OpenWork Agency Partner, Drew Jones, PhD.

Boomerangs & Slingshots – After Corporate Culture: Managing Culture in the Sharing Economy

Culture Past and Future

In his 2015 Wall Street Journal article, “Data is our New Middle Manager,” Christopher Mims chronicles the emerging management practices of lean startups. The article suggests that, in an era of radical transparency where ALL employees have access to ALL the relevant data that impacts a company (small or large), there is less and less need for managers to translate information to the ‘little people.’ Peter Drucker’s much-loved professional manager, it would seem, is no match for data. But I am not here to write the obituary for middle managers, that has been (prematurely) done already.

BOOMERANGS

Rather, as I am exploring in a new book, After Corporate Culture: Managing Culture in the Sharing Economy (out in Spring 2018 hopefully), what Mims is really getting at is a fundamental culture clash across the generations. Millennials and others who share in the psychographic of the sharing economy, engage with the world of business according to a different core set of cultural values than their Baby Boomer predecessors. Traditional, Baby Boomer (and Gray Gen) managers, who make up the Boomerang generation and still comprise the vast majority of corporate managers, operate within the basic assumption that the past, predictability, hierarchy and social order are the goals of business strategy and growth. Particularly in our current shareholder driven business environment, what matters is that the net result of business activity, as Clayton Christensen and Derek van Bever argue in their HBR article, “The Capitalist’s Dilemma,” is that capital begets capital and that dividend yields and share buy backs move ever-upward. Indeed, between 2010 and 2015 “spending on buybacks and dividends exceeded not just investments in research and development but also total capital spending.” That is, if executed properly, the system feeds itself and reproduces itself over time, and what suffers is future-oriented strategy and capital allocation. This is the boomerang culture and economy in a nutshell.

SLINGSHOTS

Meanwhile, in other parts of the economy, an entirely different and future-oriented set of cultural values has taken root and is disrupting numerous industries-transportation, labor, hospitality, workplace, etc. Unmoored from “tradition” and predictability, sharing economy business models are firing shots into an unknown future. This is more than just efficient platform technologies (Airbnb, Uber, Lyft, UpWork, etc), it is a cultural form premised on experimentation, innovation, and the belief that business can be an instrument of social good as much as it can be a generator of wealth. As I outline in the book, slingshot cultural forces, which have their roots in the communitarian and egalitarian cultural movements of the late 1960’s, are gradually finding their place alongside the supposedly coherent and meaningful ‘corporate cultures’ which boomerangers have written about over the past forty years. A brief glance here…

Boomerang /Slingshot

  • Companies /Networks
  • Individuals/ Communities
  • Proprietary /Open-Source
  • Scarcity /Abundance
  • Predictability/ Emergence
  • Hierarchy /Autonomy
  • Control/ Transparency
  • Corner Office/ Coworking
  • Tenure/ Results

Beyond Binary

Of course this list is a simplification, but it is a helpful heuristic nonetheless. The point, at this stage in the process, is to insist that culture is a driver of what happens in our economy in ways that often goes unnoticed. It doesn’t help that for economists cultureis merely an annoying ‘externality’ that is difficult to stuff into their models. Behavioral economics helps, though. Hopefully cultural economics is next.


This article was originally posted on LinkedIn by OpenWork Agency Partner, Drew Jones, PhD.

Flexible Office Conference: See you at GWA in Miami Sept 11 – Sept 13

OpenWork Agency, Partners, Benjamin Dyett and Liz Elam, will be attending this year’s GLOBAL WORKSPACE ASSOCIATION’s Flexible Office Conference

Workspace As a Service 3.0

This year, the GWA’s flexible office conference looks at the next evolution of the industry, engaging flexible office providers, users and service/product vendors in a forward-looking dialogue to shape the industry’s future. At this year’s event, you will meet the people investing in the industry (we’re calling this “meet the money”), and meet the corporate users that many think will be the sustainability driver for the next generation of spaces.

Come for the content, stay for the beach…and the pool…and the gym…and the food..at the 1 Hotel South Beach. Our promise to you is to keep the conversation compelling enough to keep you off the beach…we’ll let you go as far as the pool bar between 9 am and 3 pm. The hotel hosts the first “Spartan Gym” and sits next to a Soul Cycle. The food is amazing and the beach beverages are plentiful.

  DEEP DIVE INTO THE FUTURE   Two facilitated and highly interactive sessions: “Deep Dive on Attracting Corporate Users” and “Deep Dive into the Future of Shared Workspace.”
  MEET THE MONEY   Get an inside look at the investors in today’s flexible office. Hear directly from asset owners, investors, and lenders.
 BUILD YOUR BUSINESS SESSIONS    Hosted by Casey Clark and Dave LeVeque with Cultivate Advisors. Take a deep dive into your business needs in leadership or marketing.
  THE FUTURE OF COMMERCIAL REAL ESTATE   Commercial real estate is evolving. What role does shared workspace play in this future environment? How are the models shifting and what are the opportunities?
  FINANCING BREAKOUT SESSIONS    Two separate sessions focus on unique financing and traditional financing. Choose your own adventure and get all of your questions answered in an open forum.

OpenWork Partner, Benjamin Dyett, announced as panelist- The Space Age: Innovative and Traditional Office Solutions

The Space Age: Innovative and Traditional Office Solutions. Economic and lifestyle changes are driving many consultants and nonprofits to rethink the design of their workplace arrangement. Work-at-home professionals and consultants in small shops are finding coworking an attractive style of work that addresses the problem of isolation and loss of human interaction by providing a shared working environment. Nonprofits who are looking to decrease their overhead costs and improve efficiency are finding shared space offers a solution as well as opportunities to collaborate with organizations with complementary mission objectives. Still others find long-term lease and facility purchase best meet their needs. Join us for presentations about the advantages and challenges of these options and possible strategies you can use to address them.

Confirmed panelists are:

  • Benjamin Dyett, Partner, Openwork Agency; Co-Founder/former Co-President, Grind, who’ll provide an overview of coworking spaces and their genesis.
  • David Lebenstein, Executive Managing Director, Co-Director, Nonprofit Specialty Practice, Cushman & Wakefield, who’ll provide an overview of the benefits and challenges of the lease/buy options;
  • Jeff Simon, Owner & Principal, Jeffrey Simon Architect and Designer, who’ll provide an overview of renovation considerations for new and current space; and
  • Kate Sherwood, Associate, M. Arthur Gensler, Jr. & Associates, who’ll will serve as moderator. She knows well the innovative and traditional workspace options.

ANS Educational/Networking Event
Thursday, July 20, 2017
8:30 AM – 12 Noon

The Foundation Center
32 Old Slip
New York City

 

This event made possible by generous support from Cushman & Wakefield

Coworking in a Holistic Perspective

As long-standing participants in the coworking industry, the partners at OpenWork Agency have seen the industry evolve since the beginning. What was once a social movement is now a sure enough industry. Depending on what your vantage point is, though, coworking is different things to different people. In this article I reflect on some of these different perspectives, and suggest that an exogenous and holistic perspective can help make better sense of what is happening than any of the endogenous perspectives that are out there.

The CRE Perspective

Currently the loudest voice in the industry is coming from corporate real estate professionals. CRE professionals around the world are tuning in to see how coworking (and the shared workspace industry generally) will impact their strategy and bottom line. Much of our business is working with real estate firms that are trying to figure out how and if they want incorporate coworking offerings in their portfolios. The starting questions are understandable, but often the questions indicate the limitations of an endogenous view of the scene.

The starting questions are understandable, but often the questions indicate the limitations of an endogenous view of the scene.

From the CRE perspective, the challenge is often framed this way: How can we leverage the “cool and young” vibrancy of coworking as an amenity in our buildings to drive up higher rent rates in the rest of the building or development?Implicit in this and related questions is the notion that coworking is an approach to working that is separate and discrete from the mainstream world of work inside large companies. A kind of Cartesian dualism prevails here, where “real work” (fixed work stations in large offices within long-term leases) takes place inside large firms, while fun and whimsical start ups and freelancers are busy working in the ‘funky’ environments that are associated with coworking. And never the two shall meet.

A kind of Cartesian dualism prevails here, where “real work” (fixed work stations in large offices within long-term leases) takes place inside large firms, while fun and whimsical start ups and freelancers are busy working in the ‘funky’ environments that are associated with coworking.

The CRE industry has been slow to come around to the reality (and it is a reality) that many large firms are now embracing coworking in various ways (on campus and off-campus). This is puzzling, since the large firms that are their tenants are in fact the drivers of this type of coworking adoption. We assume that this blind spot is due to the profound challenge that this represents to their business model. Large, highly credited tenants signing long term leases makes their work much easier. The idea that leasing will dissolve into tons of little micro leases is an absolute nightmare. We get that.

We assume that this blind spot is due to the profound challenge that this represents to their business model. Large, highly credited tenants signing long term leases makes their work much easier. The idea that leasing will dissolve into tons of little micro leases is an absolute nightmare.

The Enterprise Perspective

Meanwhile, facilities managers and HR managers in large firms are witnessing deals such as the IBM/WeWork deal, where WeWork will manage IBM’s entire new Manhattan campus. What to make of this? We know that dozens of large companies are already sponsoring employees to be members at places like WeWork and Industrious, but that is largely an outsourcing process. What will the long-term effect of this be when more and more company employees don’t actually work at the company? This is the kind of question that we ask at OpenWork.

Oddly, it seems that this enterprise embrace of outsourced coworking is being somewhat lost on their CRE partners. As large firms rethink their real estate strategies, they are seeing massive advantages in coworking. It would seem that as some of these companies approach the end of their leases, they will begin to rethink how much real estate they need under their own management. When firms make the decision to shrink their footprint, the real losers will be their CRE clients who are witnessing the shrinking demand for their traditional products. We see this as the elephant standing in the middle of the room!

When firms make the decision to shrink their footprint, the real losers will be their CRE clients who are witnessing the shrinking demand for their traditional products. We see this as the elephant standing in the middle of the room!

We have recently launched a new service that helps firms rethink their long-term relationship with coworking, both on and off campus. But this article is not so much about that. Here I am interested in the intersection between CRE and Enterprise.

A Single Perspective

Of course, all of these changes in workplace are interrelated. Coworking is not just for kids anymore, as the recent corporate adoption of coworking demonstrates. Large firms, as we see it, will continue to open up their work environments, sending some people off campus to cowork while designing their own campuses to be more open and fluid to keep up with the changing generational demands for choice, flexibility, and mobility. In our estimation, this is the single largest driver of change in the whole world of work. Many of us like to cite the figure stating that 40% of the workforce will be freelancers by 2020, and this is indeed a staggering statistic. However, this is a drop in the bucket compared with the massive shift towards new ways of working that will be driven by large firms. This IS the world of work, not some adjunct to it.

For CRE, this is the lesson that needs to be learned. That is, coworking is no longer just an adjunct, or an amenity; rather, it is an early warning signal of what WORK will be in the near future. Yes, this challenges existing leasing practices, as well as the level of TI allowances that they will need to contribute at the beginning of a lease cycle. However, the idea that they will be able to hold on to their conventional leasing process with large firms forever, while playing around the edges of their business model with coworking, is a bit risky.

An Example

We recently toured a forward-thinking Brookfield design experiment in Houston, called DesignHive. Design hive invites local architects to design ‘spaces of the future’ with the idea being that the buildings will come pre-designed and furnished, and that corporate tenants can then say, “I’d like option B.” These spaces were all very much like coworking spaces designed for companies. Now, of course, the question is: Who pays for these up-front build outs? This is no small question, but the small scale and modularity of these spaces feel like the future of corporate offices to us. That is, they feel like coworking spaces. One company might lease one of the spaces, while another will lease a space down the hall, both sharing the same floor. Quite interesting.

Operators

Of course the other node in this process are the operators. As has been the case since the beginning of the industry, these folks have proven to be nimble and adaptive. Many operators have already seen this intersection of CRE and Enterprise and are offering their services directly to enterprise. This is additional pressure on CRE. In this respect, we feel quite confident that the innovative operators will jump on the moment and continue to grow their businesses and thus the industry as a whole.

As relative upstarts and champions of disruption, coworking operators have had a holistic perspective from the beginning. Unlike their CRE and Enterprise counterparts, who are often limited by endogenous worldviews, coworking operators are doing important work in pushing the world of work into the future. As Will Ferrell might put it, “coworking is kind of a big deal.”

OpenWork Agency is a workplace and culture consultancy that helps companies and real estate developers leverage coworking solutions within their offerings.

Coworking and Company Culture

Marc Andreessen once famously said that ‘software is eating the world,’ and that if your business can’t be boiled down to a simple (software) solution it probably doesn’t have much of a chance. Or at least, in his world of venture investing, if your startup isn’t predicated on an elegant piece of software, then your business will be challenged. While some people took offense to Andreessen’s sweeping comment, I think it is even more profound than people might think.

Take, for example, the corporate culture consulting industry. Since the early 1980’s management consultants have made small fortunes helping large firms ‘engineer’ their cultures to be “stronger.” By stronger, we all understand that what is actually meant here is greater profitability and higher share prices. Enron had a strong culture, but that didn’t turn out so well. However, in light of the fact that some 70% of all corporate change programs actually fail, it is worth questioning what the actual value of culture consulting is and why so many existing efforts fail? And, to what extent will culture itself be boiled down to a piece of software?

However, in light of the fact that some 70% of all corporate change programs actually fail, it is worth questioning what the actual value of culture consulting is and why so many existing efforts fail?

For us at OpenWork Agency, this is where design and design thinking are so important. Typically, culture consultancies use typologies to classify companies within one type of company or another, and then help them transition to a new ‘type’ of culture. The whole process remains in the realm of values, beliefs, and behaviors, which tend not to ever change because very little else in the company changes. That is, words are cheap and easy.

Coworking as Design Intervention

In our estimation, what is needed are tangible, material interventions in the flow of peoples’s day-to-day work. By shifting people to the open and fluid mode of work that is coworking, the day to day interactions of employees themselves are changed. Without talking about culture, per se, the elements of coworking- communication, learning, etc- and thus culture itself is changed over time. But only slowly and organically. This is a critical difference.

By shifting people to the open and fluid mode of work that is coworking, the day to day interactions of employees themselves are changed. Without talking about culture, per se, the elements of coworking- communication, learning, etc- and thus culture itself is changed over time.

Thus, we have recently launched a new culture change initiative premised on coworking. We might be fifteen minutes early, but we know what impact coworking has on people, how they work, and on the social interactions between people who cowork together. Of course the proof will be in the pudding, but we are quite confident that as more companies embrace coworking (as many, such as Microsoft, IBM, HSBC, Dell, Samsung, Amazon, Merck, GE, just to name a few, have already done), those companies will in fact change, culturally, over time.

There are no magic bullets, we understand that. Company policies will have to shift accordingly, and will have to allow for the choice and flexibility that is at the heart of coworking. Without this accompanying level of change, coworking will be as ineffective an approach as previous generations of change programs. And finally, to return to Andreessen’s earlier point, the coworking-as-change-management-platform is grounded in a technology platform that allows employees to collaborate effectively and managers to monitor and understand what is going on in real time.

However, software won’t ever replace the value of human interaction and the importance of that for building community and culture. Thus, in the end, with respect to the workplace, Andreessen’s maxim was only partially true.

However, software won’t ever replace the value of human interaction and the importance of that for building community and culture.

Enterprise Coworking

WeWork + IBM

It was recently announced that WeWork, the global coworking chain, has signed a deal to manage an entire office building for IBM in Manhattan. Up to 800 employees will work in the building, which WeWork will manage as a single shared office environment.  At first glance this looks like it is just an extension of its recent strategy of providing work spaces for employees of large firms, but it might also signal something much bigger.

Concurrent with this news was the announcement of a new Enterprise division within WeWork.  While it is unclear what the specific terms of the IBM deal will be, it seems that these enterprise deals might signal the beginning of a lease-free model, wherein the value-add of the company is in the management of the space.  We are seeing lots of ‘management fee’ arrangements in lieu of straight leases, and it would make sense that this is what the company is aiming for.  It seems like only a matter of time before the weight of SO many leases becomes a heavy burden.

But that isn’t the main point here.  Rather, what is interesting (and important) about the WeWork announcement is the shift towards enterprise.  Retail coworking, which is for the most part what the world has seen thus far, is just the first iteration of a much large shift from old ways of working to ‘new ways of working.’   All of those brave pioneers who made coworking what it is today, such as Alex Hillman and Tony Bacigalupo, have opened up the floodgates for a new wave of adoption to follow the retail coworking phenomenon.

Three years ago, before we began working primarily with real estate developers seeking retail coworking solutions, we set out to do enterprise coworking. For us, the big opportunity has always been the potential to ‘convert’ large firms to the culture and flow of coworking.  Not only is this a big business opportunity, it would seem, but it also potentially can serve to liberate corporate employees from uninspiring spaces and rigid workplace policies.