Enabling Innovation Through Office Design

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Earnings grew 40% each year between 1996 and 2001, with no increase in workforce. The average rate of return since the move has been 28%.

"Most people have to work in space that's too small for their spirits," says Jeff Scherer, who was principal architect on the project. "The design of the workplace can really unlock the spiritual side of the individual and their contributions manifestly increase."

Other executives, including Larry Page and Sergey Brin of Google (GOOG), Barry Griswell, CEO of Principal Financial Group (PFG), and Jon Fredrik Baksaas, CEO of Telenor (TELNY.PK), understand that the design of the workplace is essential to enable a company's most important asset, its people. The objective for all of these leaders is to create an open culture of collaboration and shared purpose.

Uncoupling Space From Compensation

Of course, simply redesigning an office will not ensure business success. But innovation is about the development and implementation of new ideas. This requires different people from different backgrounds and disciplines connecting and thinking about opportunities differently. This will not happen in a space that separates people from each other and prevents easy contact. The CEO must uncouple space from compensation: An office is not an entitlement, but can be a resource to enable an organization to reach its full potential.

As Winston Churchill said in 1943: "We shape our buildings, and afterwards our buildings shape us."

Peter Lawrence is chairman and founder of Corporate Design Foundation and consults with companies about the use of design. Together with Sara Beckman, Lawrence edited the Winter 2007 Special Edition on Workplace Design of California Management Review.