Who Needs an Office? 3 Steps to Successful Consolidation
September 17, 2020
Get A Data-Driven Site Consolidation Strategy For Your New Normal
“Welcome to the new normal.” We have heard this phrase more often this year than we’d care to remember. The business environment is changing rapidly – whether we are responding to new mandates regarding COVID-19 health protections or the need to modify our business to become more efficient, we need to adapt.
A business site strategy is critical. Here, Bridgeforce shares a site consolidation strategy model designed to help make decisions based on facts and analytics.
A Site Consolidation Strategy Based on Facts, Not Feelings
Decisions on which sites to keep and which sites to exit are prone to emotional evaluations. Site closures ultimately affect people, and making dispassionate decisions is impossible without agreeing on a strategy.
Our proprietary model breaks decision making into three main categories: stakeholders, analytics and forecasts. These assessment categories uncover necessary trade-offs, remove emotional barriers, and help you make decisions based on facts.
3 Steps to Successful Consolidation
1. Remove Emotions with Analytical Ranking
You must highlight key data elements to be part of the analytics used to rank sites and determine core site strategy. Below you will find a sampling of questions to ask, in order to identify ranking methodology.
- Functional Coverage: How many different functions are performed at the site?
- Facility Ownership: Is the building owned by your company? If it is leased, when does the current lease expire?
- Diversity: How diverse is the workforce at each site?
- Cost per Available Seat: What is the cost per seat allocated at the site?
- Available Talent in the Market: Are you going to be able to attract the talent you need in your selection of remaining markets?
- Staff Tenure and Turnover: Does the competitive landscape improve or diminish tenure and turnover?
2. Gather Stakeholder Priorities to Gain Buy-in
Stakeholders will come to the table with different priorities. You need to understand and balance competing priorities to strike an optimal strategy and agreeable outcomes.
Engage all company stakeholders to understand their key considerations for site strategies.
Example capture matrix:
|Role||What Stakeholder Cares About|
|Operations Manager||The tenure and experience of the staff at each site|
|Recruiters||Available talent in the market|
|Facilities||Whether the facility is leased or owned, and whether the remaining footprint will support future growth|
|Finance||The costs associated with staffing in each market|
|Human Resources||Ensuring that decisions don’t disproportionately impact certain demographic groups|
3. Validate Site Selections with Forecasts
Make sure your site selections do not pose any gaps or opportunities by using your business forecasts, such as:
- Functional Coverage
- Time Zone Coverage
- Site Growth Potential
You can plan for the moment, but need to be conscious of how the decisions that you are making today affect future strategic growth. Bridgeforce can help use your forecasts to validate your selections and help you understand your trade-offs.
Our Site Strategy Framework
You must develop a site strategy that pulls together stakeholder priorities, ranking tools and forecasting, so that your plan will balance consideration of your staff, and efficiency for ongoing operations and cost savings.
- Confirm Key Site Ranking Factors and ensure that you have access to supporting data that can help you refine your ranking. Some site ranking factors include Diversity, Costs, Market Differential, and Functional Coverage.
- Develop Site Scoring and Ranking Model weighing the site ranking factors that are most important to your overall business objectives.
- Capture data at the Site Level to provide a holistic view at the site level, incorporating site, staff, and function profiles.
- Develop ranking strategy through analytics to develop criteria to determine which sites to keep, which to exit and identify new markets to establish.
Got Data? Bridgeforce Has the Rest
Bridgeforce can help you move with speed. Our experience in defining a realistic site strategy to meet organizational goals runs deep. We’ve done it ourselves when we were in your shoes, and we’ve helped multiple clients do it. We bring our proprietary model and experience to guide you through the necessary foundational work, model development, decision-making and execution. Bridgeforce will:
- Lead you through exercises to define foundational principles
- Agree the data elements most important to you
- Harvest your data (no matter how disjointed it may be)
- Create, design and run the model with you to formulate your plan
- Provide model-based scenarios to choose and execute your optimal site strategy
Our model is interactive for real-time change and scope adjustments. The scenario-based model adapts to changing business needs. By being grounded in the guiding principles that we’re establishing up front, will enable you to monitor outcomes of executing your strategy.
Changes that impact your guiding principles are tracked, this enables you to see if you are on plan or straying from the established foundational principles.
We understand that change is constant. If a key element of your business changes, real time adjustments to our model will reflect the impact to constant change. Our proprietary model is not static!
Together, we can reduce your operating costs, intelligently plan site vacancy, and understand operational complexity. Call us. We can move as fast as you can. You bring the data – we have everything else.