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 Corporate Agility

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 CORPORATE

Agility
A Revolutionary New Model for
Competing in a Flat World

Charles E. Grantham

James P. Ware

Cory Williamson

AMERICAN MANAGEMENT ASSOCIATION

New York • Atlanta • Brussels • Chicago • Mexico City • San Francisco •
Shanghai • Tokyo • Toronto • Washington, D.C.

................. 16519$ $$FM 07-27-07 12:15:49 PS

 Special discounts on bulk quantities of AMACOM books are
available to corporations, professional associations, and other
organizations. For details, contact Special Sales Department,
AMACOM, a division of American Management Association,
1601 Broadway, New York, NY 10019.
Tel.: 212-903-8316 Fax: 212-903-8083
E-mail: [email protected]
Website: www.amacombooks.org/go/specialsales
To view all AMACOM titles go to: www.amacombooks.org

This publication is designed to provide accurate and authoritative

information in regard to the subject matter covered. It is sold with
the understanding that the publisher is not engaged in rendering
legal, accounting, or other professional service. If legal advice or other
expert assistance is required, the services of a competent professional
person should be sought.

Library of Congress Cataloging-in-Publication Data

Grantham, Charles E.
Corporate agility : a revolutionary new model for competing in a flat world /
Charles E. Grantham, James P. Ware, Cory Williamson.
p. cm.
Includes bibliographical references and index.
ISBN-13: 978-0-8144-0911-4
ISBN-10: 0-8144-0911-3
1. Strategic planning. 2. Organizational change. 3. Organizational
effectiveness. I. Ware, James P. II. Williamson, Cory. III. Title.
HD30.28.G7219 2007
658.4⬘012—dc22
2007025306

 2007 Charles E. Grantham, James P. Ware, Cory Williamson.

All rights reserved.
Printed in the United States of America.
This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part,
in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the
prior written permission of AMACOM, a division of American Management Association, 1601
Broadway, New York, NY 10019.
Printing number
10 9 8 7 6 5 4 3 2 1
 C O N T E N T S

Acknowledgments ix

Introduction 1

CHAPTER 1

More Corporate Agility, Less Corporate Real Estate 5

Putting Workplace Strategies in Place 6

Jones Lang LaSalle 10

Sprint Nextel 16

Hewlett-Packard 19

CHAPTER 2

The Three Major Business Challenges: Costs, Labor, and

Innovation 27

CHAPTER 3

Reducing Fixed Operating Costs 31

Reducing the Corporate Real Estate Footprint: 33

Additional Means of CRE Cost Reduction 54

Reconfiguring CRE 58

Green Building 68

Choosing a Location 75

Outsourcing Labor Costs 77

Spherion Contingent Workforce Case Study 79

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vi Contents

CHAPTER 4

Attracting and Retaining Human Talent 87

Global Demographic Trends 87

Educational Trends 91

Knowledge Management 93

Attraction and Retention of Labor 96

Meaningful Work 104

CHAPTER 5

Innovation and Survival 109

Technology and Innovation 111

Company Culture and Innovation 116

Innovation and the Workplace 120

Under Construction 124

Innovation and the Workforce 126

Planting the Seeds of Innovation 127

CHAPTER 6

The Virtual Workforce 129

The History of Work 129

The Distributed Workforce 134

Resistance to the Distributed Workforce 142

Assessment 153

Productivity 157

CHAPTER 7

Offices Without Walls 161

The Workplace of the Future 161

Workplace Strategy 175

The Live/Work Project 181

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 Contents vii

Third Places 187

Business Community Centers 189

CHAPTER 8

The Well-Designed Workplace 193

The Seven Hallmarks of the Productive Workplace 201

The Seven Hallmarks Exemplified 207

IA Interior Architects 213

CHAPTER 9

Collaborative Strategic Management 219

A Systems Approach 220

What Does Collaborative Strategic Management Look Like? 222

The Workplace/Workforce Transformation Program 229

Wrapping It All Up 238

CHAPTER 10

Achieving Corporate Agility 239

Why Now? Change Is More Dramatic Than Ever 240

Why Now? Because the Clock Is Already Ticking 242

Why Now? Technology Is Reshaping Our Work World 243

Leadership and Strategy 244

Questions You Should Be Asking 246

Questions for an Agile Organization 247

Proceeding to Answer the Questions 248

A New Way of Looking at Organizations 249

Final Thought 252

Afterword 253

Notes 255

Index 261

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PAGE viii
 A C K N O W L E D G M E N T S

No book about collaborative strategic management could be written by a

single author—or even by a team of three. Our names may be on the cover,
but this book was written by a host of senior executives, managing directors,
and business professionals with whom we’ve worked and from whom we’ve
learned over many, many years.
That said, we’d like to pick a few faces out of the crowd, and we want to
begin by acknowledging the extensive support this project received from our
many good friends at Jones Lang LaSalle and Herman Miller. We simply
could not have written this book without the help of Debra Moritz and her
colleagues at Jones Lang LaSalle. Nor would these pages have been written
without the help of Jill Duncan at Herman Miller. Jill believed in our ideas
from the very beginning and brought our project to Herman Miller’s Joanie
Reid, whose active sponsorship opened many doors for us. Many thanks to all
of you, both for your faith in the project and for your willingness to share
your experiences and your insights about corporate real estate, workplace
design, human resources, information technology, and strategic management.
We’d also like to particularly thank certain members of the Future of Work
community—Len Pilon of Herman Miller; Dan Johnson and Sasha Lacey at
Accenture; Renee Leach, Chris Hood, and Ed Nolan at H-P; Kevin Kamp-
schroer of the General Services Administration; Donna Biskys and Sue Reidy
at Agilent Technologies; Brian Sherwood at Boeing; Tom Baker of Johnson
Controls; Gloria Young at the City of San Francisco, Mark Lautman of Forest
City Covington, and Diane Coles at Scan Health Plan.
Beyond that inner circle of Future of Work members, we’d also like to
acknowledge Buzz Buzzanco, Loretta Penn, and Gail Blount at Spherion;
Charemon Tovar at Sprint Nextel; Mark Gribbons at IA Interior Architects;
and the folks at WIRED West Michigan. We’re also grateful to Prentice
ix

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x Acknowledgments

Knight and his staff at CoreNet Global for welcoming our contributions to
the groundbreaking ‘‘Corporate Real Estate 2010’’ project back in 2002–
2003 when we were just beginning our Future of Work community.
We’d also like to recognize two friends whose belief in our mission—way
back in 2001—gave us the confidence to walk away from other endeavors
and launch the Work Design Collaborative: John Igoe and Paul Bianchi. It
was their conviction that human resources and corporate real estate have
to be dragged—even if kicking and screaming—into the same room with
information technology that motivated us to convene our first gathering of
those who believe that the future of work will be radically different than
anything any of us have yet imagined.
One more collection of friends deserves special mention—our monthly
Brain Blender group. We’re privileged to be a part of such a wonderfully
varied and geographically distributed group, which includes Candace Fitzpa-
trick, Mark Gorman, John Foster, Deena Baikowitz, Terry Musch, and espe-
cially Rex Miller. Thanks for sharing your knowledge and experiences so
unselfishly, and for keeping us learning, and laughing.
We also want to thank our wives—Ellen Grantham, Cindy Ware, and
Maria Williamson—all of whom hung in there with us though this project’s
highs and lows, and as wives will, offered sound advice even when we didn’t
want to hear it.
To conclude, we wrote this book because the three of us share a simple
goal: We want to see the future of work—where all of us will spend the rest
of our professional lives—made both more productive, and more humane. We
modestly offer the following stories, case studies, experiences, and research
results in the service of that worthy objective.

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 Corporate Agility

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This page intentionally left blank

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 I N T R O D U C T I O N

Early in 2002, as part of our continuing efforts at the Work Design Collabora-
tive, we began a modest research project we called the Future of Work. As
business consultants with backgrounds in academia—Jim at the Harvard
Business School, and Charlie at the University of San Francisco—we saw the
need for a new set of analytical tools that businesses could use to rationalize
their real estate needs, their information technology deployment, and their
human resources planning. As a result, we gathered a small group of corpo-
rate thought leaders from companies such as Agilent Technologies, Cisco Sys-
tems, Intel, PeopleSoft, Capital One, and Herman Miller and we began to
survey both labor and management in an attempt to discover how new tech-
nologies, the changing workforce, and economic globalization were changing
how and where people worked, and what those changes meant to the future
of work in the so-called Information Economy.
The initial results confirmed what our experiences as academics, consul-
tants, and corporate managers had long led us to suspect: Although the global
economy had undergone a series of rapid, model-shattering changes, most
businesses had been unable, or unwilling, to adapt their traditional manage-
ment styles to new conditions. Prisoners of their outdated business practices
and their assumptions about how work gets done, they found themselves
losing ground to competitors who had not even been on the map a decade
before. They became victims, rather than beneficiaries, of advances in infor-
mation technology. And at a time when the attraction and retention of quali-
fied, engaged employees had become an even more critical factor in a
business’s success or failure, they found themselves out of touch with a work-
force that had undergone a dizzying transformation in attitudes, abilities, and
ambitions.
Together, these factors resulted in a crippling loss of corporate agility.
1

................. 16519$ INTR 07-27-07 12:16:00 PS PAGE 1

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