How to Keep Productivity and Employees Humming During a Facilities Move

By Rachel Walls of The Golden Gate Company, LLC

** This article has been published in Employment Relations Today.

There are a variety of reasons why companies decide to move to new facilities, including the desire to secure more appropriate space for their employees and operations; to capitalize on more favorable business and employment environments; or simply to improve the lifestyle of their employees. According to a recent International Facilities Management Association survey, companies move, remodel, or relocate 25 to 30 percent of their facilities’ total square footage each year. These moves run the gamut of local relocations within the same building or city, to across-the-country moves, to international relocations.Whatever the motivation for the move, senior management of any company expects a company relocation to be a positive experience—one that will result in improved operations, more cost-effective facilities, raised productivity, and increased profits.

A lot is at stake if the move does not go smoothly. Take, for example, the overall costs associated with a move, costs that will need to be recouped out of the benefits attained by the move. As one moving consultant recently put it: “Just moving within the same building can cost from $400 to over $1,000 per person.”

More important than the cost of the move itself, a relocation can seriously disrupt the day-to-day routines of employees in any operation, causing substantial downtime and, therefore, lost revenue. Downtime is an expense that companies must control if the relocation is to be an overall success.

The bottom line is that a company relocation can result in improved operations, more cost-effective facilities, raised productivity, and increased profits if management signs up for, and follows through on, four important objectives:

1. Comprehensive communications to get buy-in from the staff as early as possible and to keep them in the loop at all stages.
2. A detailed and well-documented moving or relocation plan that is in place months before the actual move.
3. An action plan that involves employees from all corners of the organization to allow them to provide input and accept responsibility.
4. A plan to increase efficiencies in the new location.

COMPREHENSIVE COMMUNICATIONS– PRESELLING THE MOVE

It’s well documented that change of any kind can lead to disruption in the work environment, but a physical move is even more difficult for employees to see as positive in the beginning stages.

Without proper communications, most individuals will continue to view the planned move as a negative, not a positive. In addition, if not handled correctly, a move can result in more than just decreased productivity; it may result in employees opting to leave the company out of frustration. Replacing employees is a very expensive proposition that should be avoided at all costs, particularly during a serious transition such as a move.

Communication is important to keeping employee morale high before, during, and after the relocation process. There is a fine line between involving employees too much to the point of distraction and keeping them informed so they feel involved in the process.

The most important decisions that need to be announced to employees are the new location, when the move will be happening, and how they can prepare. It’s important to give them as much advance notice regarding these decisions as possible so they can get used to the idea. It also ends rumors and uncertainty throughout the company, both of which result in a decrease in morale. Providing employees early on with the information they need to prepare for the move is a great way to get them feeling involved in the process.
A careful strategy of detailed planning, employee involvement, and improvements to the infrastructure can decrease attrition, raise morale, and maintain productivity throughout the entire relocation process.

A DETAILED AND WELL-DOCUMENTED PLAN

One of the cornerstones of a successful move is detailed planning. The consequences of not developing and following a detailed plan are significant, particularly once you calculate the amount of lost revenue a company will suffer from a single day of downtime. Experienced relocation consultants know hundreds of horror stories about companies that decided to plan a move on their own only to experience cost overruns, which can exceed 50 percent of the total projected cost without careful planning and scrutiny.

According to a recent survey of 231 companies, with employees ranging from 30 to 1,000, the individuals responsible for the moves said that their biggest problem was insufficient planning (52 percent). It was the only item that received more than 50 percent of the vote. Other problems that they cited included design flaws in their new facilities (43 percent); telephone and computer failures (39 percent); selecting appropriate vendors and movers (37 percent); getting staff cooperation and maintaining moral (29 percent); getting rid of old files (21 percent); forgetting important tasks (19 percent); keeping within the budget and schedule (11 percent); and matching files and equipment to the right offices (10 percent).

Managing all of the details is absolutely key to maintaining productivity throughout the relocation process.

Here are some of the important steps to undertake:

– Start the planning early. Many companies make a huge mistake by not thinking about all the details of the move until a lease is signed. That is too late in the game for most major moves. Experts agree that for moves that involve areas that are smaller than 50,000 square feet, a company must allow six months; larger moves may require as much as a year of planning. Special facilities such as biotech labs and other research centers may take as much as 18 months to complete a proper moving plan.

– Focus on details. The easiest way to lose credibility with your management is to miss some of the details. The big items are tougher to forget, but the details can cause huge problems. The saying “the devil is in the details” is never truer than during a relocation.

Our company recently planned a 400-person move for San Jose State University that was to be phased in over eight months. As a result, there were thousands of details that needed to be remembered. Our project manager, therefore, created a master task list that involved a timeline with every last detail in place – from furniture installation, to cabling, to reconnecting the computers. The move went without a hitch.

– Use checklists. It’s important to document everything and develop checklists tailored to the needs of each department. The more the project is broken down into steps and tasks, the better. Nothing is too simple during this stage.

– Consider hiring an outside consultant. Few companies tackle a major move without hiring a move-management consultant who can play a big role in achieving a successful relocation. Not only are the outside experts familiar with the local and regional vendors and moving companies, but they also are extremely knowledgeable about the ins and outs of company moves and help companies navigate these waters every day. Outside consultants can also:

• Provide necessary technical expertise,
• Offer alternative solutions,
• Identify cost savings,
• Act as an information conduit to the outside world, and
• Share in the workload.

Many companies think of these outside move consultants not as vendors, but rather as specialized experts who aren’t afraid to ask tough questions of their staff.

Like most companies, our client Selectica, a technology company specializing in sales automation, didn’t have time to spend planning the company move internally. Selectica hired our company to manage the planning so that the move would be completed seamlessly, and employees could resume working as soon as possible.

For example, Selectica was located within a three-story building and wanted to relocate to an office with fewer operational expenses. Selectica hired us as its move consultant, and we pointed the company in the direction of a Regus-serviced office, which offers offices that are fully furnished and equipped, along with a shared receptionist, IT and other services. Shared expenses with other tenants brought costs down, and the space came furnished with desks and phones, so it was a relatively inexpensive move with virtually no downtime. By using a move consultant, we were able to decrease Selectica’s operating costs by 60 percent and have the company operating again on Monday morning. The time and cost savings we provided Selectica more than paid for our services within a month of the move, and the company moved into a space where it was easy to start working again.

– Stay on top of the plan. It’s important to stay organized throughout the entire process. Once organization is lost, it becomes difficult to respond to the changing needs of the company. Taking the time to carefully label all boxes and equipment, for example, is important to resuming work as quickly as possible. We advise our clients to keep a list of each box they label and the contents of each box (as detailed as possible) so that they can easily find their crucial items on their first day in their new office. This will allow them to respond to customers without any downtime immediately following the move, even before they have a chance to unpack the rest of the boxes.

The trick is to keep everything simple–with no guessing work required. Break down everything into mini-projects. Treat the computer room as one project, the cabling system and phone system as two others.

– Order corporate materials and business cards ahead of time. There are many other ways to make sure your office resumes business as quickly as possible following a move. Ordering stationary, business cards, and updating the Web site ahead of time are great ways for the company to stay on top. Be sure to give your printer plenty of time to process your large order. Passing out new business cards before the move can also provide employees with recognition, knowing that they’ve been thought about during the move.

– Plan the move for a weekend. A great way to decrease downtime is to plan your move over the weekend. Although nobody likes to work weekends, it will allow your business to run until 5 PM on Friday and start again at 8AM on Monday in the new location. Our clients often hire us to manage the move over the weekend so their employees will arrive refreshed and ready to work on Monday morning. This type of scheduling allows for a seamless transition between one location and the next and your customers won’t notice the difference.

When working with our client Fuller & Thaler Asset Management, it was absolutely mission critical that they experienced no downtime. We planned the move over the weekend to ensure that when they went down on Friday at 5 PM and that they were up and running again by Monday morning. We specifically chose a weekend over an evening because it allowed the IT department plenty of time to get all systems going again before employees showed up ready to work.

INVOLVING EMPLOYEES EARLY AND OFTEN

Considering all of the changes that take place over the course of a move and the way most companies handle these changes, it can be a complicated matter to keep employees in synch. But companies must make this a priority.

It’s important for employees to feel that their voice is being heard when it comes to the design of their new office space. Besides keeping employee morale high throughout the moving process, it can make company management aware of issues that will make employees more efficient in the new space.

We faced a typical problem recently when our client Envision Schools was moving to a much smaller space than the employees were used to. Although most employees would generally be put off by this, we made sure employees were consulted at the beginning of the construction process – helping to select paint colors and soliciting feedback on the space plan that we put together. Involving employees months before the move helped them feel happy with their new office even though they were moving to a tighter space.

Similar to other comprehensive tasks in a company, moving a company from one place to another is a team sport – and this refers to more than just the physical act of moving. One person simply cannot accomplish every task that’s required. Even more important, no one individual can expect to have all the answers to every question.

Each company, therefore, needs to create a move planning committee (MPC) that includes individuals from every critical part of the organization – finance, human resources, manufacturing, telecommunications, and information systems, as well as other groups germane to the move: reprographics and records management, for example. The MPC then executes all the interfaces with the outside consultants and vendors. Here are some of the vital items that the MPC deals with:

• Defining critical issues,
• Researching required information,
• Identifying priorities,
• Handling schedule conflicts,
• Communicating back to the employees, and
• Sharing the workload.

When considering how to involve employees, consider very carefully their needs in the new space. Our client Gene Ed wanted to make sure that the company’s employees felt ownership in the moving process so they would feel happy and productive in their new space. In order to make that happen, we interviewed employees to find out what they would like to see in the new space. Asking employees what they needed and wanted during the relocation process made them excited about the move. It also created a space that maximized efficiency because employees told us what kind of space would help them to do their specific jobs better.

Throughout the planning process the overall manager responsible for the move should keep everyone involved in move-related decisions. The MPC, along with representatives from each department, should meet once a week with the relocation consultant to discuss move-related decisions and tasks so that the entire group could work toward that goal. Between meetings, the representative from each group should meet with their departments and discuss issues that will affect them.

When working with our client San Jose State University, it was important to get all of the employees involved in order to make a 400-person move successful. To solve the problem, we held regular move meetings in which a representative from each department was in attendance. The regular meetings gave each department an opportunity to express concerns and gave us an opportunity to provide solutions. This involvement from departmental coordinators was crucial to making sure employees remained happy throughout the move and helped to foresee problems that might cause delays later on.

As the outside consultant on the project, we attended project meetings in which a representative from facilities, technology, and procurement, and as well as each department’s coordinator, were present. After each project meeting, the technology department met to discuss the implementation of plans made at the project meeting. Through designating departmental representatives and creating a communication strategy, we were able to coordinate the move successfully, and employees were satisfied with our results.

Warming Up the Team
Giving employees a site tour is a great way for them to get excited about the new space. During the tours, keep the groups small so employees can easily ask questions. The question session is especially important because it allows employees to express their concerns. For employees who may not be excited about a move before it happens, the opportunity to be able to look at a new space and see its potential can make a big impact. It also gives employees an opportunity to plan appropriately and think about what they can bring to the new space and what they should discard.

Creating a move team, setting up communication channels, and providing a site tour are great ways to get employees involved at all levels. Employee buy-in into the moving process is important in order to keep morale high and the company functioning at optimal efficiency. Although a relocation is a complicated process, utilizing the full power of your team can ensure a successful move.

INCREASE EFFICIENCY IN THE NEW LOCATION

The fourth tenet to a successful move is to increase efficiency in the new location. Most companies only plan as far as moving from one location to the next; however, a move is an excellent opportunity to update technology, improve processes, and reduce operational expenses.

Update technology
A move is a great time to update your technology. The latest technology can easily improve the efficiency and speed with which employees respond to customer requests and internal responsibilities. For example, upgrading your telephone technology to VOIP (voice-over-internet protocol) can offer you slightly lower operating costs and a lot more features and functions. A small or medium-sized business can run a call center on its own and have one system manage main and branch offices and even remote and telecommuting workers. This is not only feasible with VOIP, but also cost effective.

Most businesses hesitate to upgrade technology because of the downtime it would involve. Since the system will be taken down, disassembled, and reassembled over the weekend anyway, a move is a perfect time to upgrade technology and increase efficiency. Although it can be a large initial expense to most companies, considering the increases to employee efficiency, new technology can often pay for itself within a year of its purchase.

Upgrade Security
Security continues to become an increasingly important issue to most companies. A move is a great time to upgrade your security processes – including protecting the physical premises, intellectual property, the Web site, and information being stored on the company servers. Many companies are installing security cameras and access control technology to monitor people entering and leaving their premises, as theft can be a major issue.

Aside from protecting your physical premises, protecting your virtual space is considered equally if not more important. Hackers are also becoming increasingly clever. Reevaluating the security to your network is absolutely critical, as this protection can become outdated rather quickly. A move is a great time to update these processes because employees expect to be experiencing a learning curve in the new space.

Go “Green”
Designing your new space “green” is a great way to reduce operational costs. It used to be that green design was more expensive for a company to institute, but new technology is coming out that allows the two worlds to meet. This includes green insulation, roofing, lighting, HVAC, and other items that are good for the environment and good for a company’s bottom line. Additionally, new policies can be put in place that will encourage green thinking by employees and will result in decreased expenditures. An example of this could be as simple as turning off computers each evening before leaving for the day. Green thinking in the new space can reduce a company’s operating expenses significantly and a move is great time to educate your employees on new processes since nothing has become habit in the new space yet.

Throw Out the Old
Our mantra at The Golden Gate Company is to “purge, purge, purge.” Cleaning out your old space before you move is one of the most important parts of making your new space more efficient. A small company typically occupies the same office space for five to ten years and, during that time, a lot of unnecessary paperwork and equipment can accumulate. There’s no reason to bring this excess to the new space–it’s expensive to transport and slows down efficiency. A relocation is a great time to clean out your office. We typically advise our clients that if they haven’t looked at something in a year and there isn’t a legal reason to keep it around, then they should consider throwing it away.

Setting up bins for shredding and refuse several weeks before the move can encourage employees to clean their spaces when they find a few spare minutes during the day. Purging is an important part of the move that will result in a more productive space in the new office.

When moving over the weekend, a lot of rubbish can build up around the office space. With Fuller & Thaler Asset Management, we also scheduled a janitorial cleaning on Sunday night so the employees would come into a clean office space. Although there were unpacked boxes stacked around people’s desks, the new office space was impressively clean when employees came to their first day of work in their new office. We also placed welcome packets on employees’ desks with information about their new space, which helped them to settle into their new space and resume working as quickly as possible.

Celebrate the New
Finally, it’s important to make the new office feel special. On the first day in the new office, greet employees in a way that will create a feeling of a grand opening. A tour of the neighborhood or building is a good idea, if you have the time during the day. Most important, a company-sponsored lunch where the CEO recognizes everybody’s contribution to the relocation process can make everybody feel enthusiastic about the new office and ready to get to work.

Our client Fuller & Thaler Asset Management wanted to make an impression on employees when they entered their new office space, so balloons that matched the company’s logo were tied to the receptionist’s desk. The company also had a nice lunch catered for all employees and held a meeting over lunchtime to thank the people involved in the move and recognize their contributions. The lunch also included a cake with the company’s name on it for the employees to share. The ceremonial first day made employees feel excited about their new space.

The key elements to keeping your company humming during a relocation are early communications, detailed planning, giving employees ownership in the moving process, and increasing efficiency through upgrading technology and operational processes. Through keeping these elements in mind, your move can successfully save the company thousands of dollars in operational costs, provide a more productive environment for employees, and create space for a company to expand.

These tips are a few examples of details to remember for your move. Every company’s move, from the smallest to the largest, can be complicated and require detailed planning. We find that it’s not uncommon to come up with hundreds of tasks for each client whose move we plan. In order to respond to keep your employees happy, keep your customers satisfied and avoid lost revenue from any downtime, it’s important to remember all of the details.

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About Author:Rachel Walls, president of The Golden Gate Company, LLC (www.goldengatecompany.com), plans and executes hassle-free, efficient and cost-effective relocations for companies of all sizes, as well as universities. To start planning your move, contact Rachel at (415) 513-4490 or Rachel@goldengatecompany.com.