September 2010 – Relocation expert GAB AGHION offers his Top 10 tips to keep you stress-free throughout your search, fitout and relocation project.
Relocation projects are incredibly stressful. They can be a black hole for company time and money. Project owners are expected to navigate the minefield of site selection and negotiation, overseeing the design, meeting budget and timeline requirements, delivering the fitout, managing the move, flawlessly relocating the IT systems and dealing with the existing premises make-good together with tackling change management and environmental opportunities… all while holding down a full-time position!
To help navigate the minefield with confidence and deliver a flawless project, consider the following 10 project tips:
1. Form a strategic plan – Create project goals to guide the project and assist with the key decisions. Other than a smooth transition to the new premises, is this an exercise in brand building? Environmental considerations? Change management and staff motivation? Positioning your company for the next stage of growth? The project can also be a chance to audit processes, assess functionality and clean house for the relocation. If needed, assemble a project team to steer the project.
Ideally, the project has one clear project owner, and members of the team are an even representation across the organisation. The team should have representation from or at least direct access to senior management. Avoid large project teams where decision-making becomes cumbersome.
2. Form an initial idea of project costs to guide your early decisions – As a rough rule of thumb allow for the following costs per square metre:
- premium fitout: $1250+
- good to standard: $750 to $1250
- basic: $750 and below.
Gab Aghion.
These figures are loose estimates and serve as an initial guide. The numbers include fitout costs, consultant fees and loose furniture but exclude GST, base building upgrades, IT, relocation costs and any make-good obligations. When talking rough numbers to fitout professionals, remember to check what is included or excluded. Fitout providers tend to consider many of the client costs outside their numbers – some of the ‘unseen’ components that you will need to budget for include consultant fees, approval fees, IT expenses, removalist costs, insurances, legal fees and make good obligations.
Tighten the budget once the design takes shape, and if hitting a set budget is essential consider appointing a quantity surveyor or aligning yourself with a fitout contractor early in the design process for design cost feedback.
3. Estimate your timeline – Work backwards from the lease termination date or move deadline to create the project timeline, including the search, design, construction, relocation and handover of the existing premises (with any make good requirements). The key to a successful project is to start early – allow plenty of time before your existing lease ends to consider all options and negotiate on the future premises with confidence. Include some contingency in your timing to incorporate flexibility and relieve the pressure of project deadlines. One of the most common project pitfalls is to underestimate the time and input required, so start the process well in advance.
4. Site selection – Create a master list of search criteria, then go out to market directly through commercial real estate agents or by appointing independent representation. Allow enough time to view and review shortlisted premises together with negotiating through the Heads of Agreement. Spend time familiarising yourself with the commercial property market together with the supply and demand of the local area in which you are searching. Understand the current incentives on offer. Have quality secondary options to help with the strategic negotiations and allow a fall-back position. Inspect shortlisted premises as many times as possible, and speak to the neighbouring and outgoing tenants to gather information on the building and landlord performance.
5. Design the space – Be actively involved in the design process from the outset by creating a thorough brief of company requirements. This is the master document that your designer must work off – a beautifully designed space that doesn’t meet company functionality is a waste of everyone’s time and your money. Appoint a designer that is aligned with your budget, timing and project goals. Review their recent designs, references and visit as many projects as you have time for in order to help work out the company needs and preferences. For larger or complicated projects bring the designer into the project during the site selection stage so that spatial analysis, size requirements and thorough base building evaluations can be incorporated into the search process.
6. Change management opportunities – Change management is an important component of relocating a business. Handled poorly, a relocation project can not only be expensive and inefficient, but also create a negative work environment and drain productivity.
Suggestions to get staff involved and excited about their new workplace include:
- Promote information flow to keep staff involved and informed – find the right balance between inviting input and not becoming bogged down by opinions on every minor detail.
- Identify key stakeholders in the project, and invite feedback through these people. Consider setting up a small taskforce to run aspects of the project.
- Consider visiting the new premises with staff, displaying plans and updates on the fitout progress. Explain the design and decision process. 3D images and colour presentations assist in ‘selling’ the project to staff. A final visit prior to the relocation is recommended.
- Create a relocation guide document for staff that is clear. Leading up to the move present the document to staff and handle all questions. Schedule a post-relocation debriefing to run staff through the new premises and any training required.
7. Environmental design – A search, fitout and relocation project has many opportunities to make decisions of positive or negative environmental impact, some of which carry budget implications; others will have no cost implications whatsoever. The myriad of decisions can seem daunting, but breaking the process into four key areas can assist the process:
- future location and building selection
- design and material selection, and construction
- existing premises ‘make good’ and disposal of loose furniture
- ongoing monitoring and management.
The best approach is to seek quality information, appoint experienced, like-minded consultants and keep the environment as a core project goal through the decision making process.
8. IT systems – Include technology requirements early in the project, and use the project as an opportunity to assess potential upgrades. Provide IT design requirements during the site search and design stages (eg: comms room size, number of racks, raised floor, Voice Over IP, fire suppression systems, minimum cabling speed). Review the cabling plan for company fit and take the time to select the best workstation cable management. Check all providers’ scope and ensure your company is covering the areas that fall outside these scopes (eg: PABX system, phone and data line installation, network setup, audiovisual and security requirements).
9. Physical relocation – Micro-plan the move and select a quality commercial removalist with experience, well-maintained equipment and core staff rather than hired labour. Audit the furniture and know exactly what is being relocated and where to. Assess the existing and new premises for potential bottlenecks (eg: slow or small lifts, stairs and tight entrances) that will complicate the move. Consider moving with the crates and skates system to save time, money and minimise environmental impact. Plan the IT and warehouse components with military precision, especially if zero downtime is mission critical. If needed, conduct a series of clean-outs leading up to the relocation to take the pressure off the move day responsibilities, and line up the asset disposal and make good to commence as soon as the relocation is handled.
10. Seek quality advice – Search, fitout and relocation projects require specialist skills and the time to manage. If you do not have the time to allocate to the project or skill-set, appoint a project manager to guide you through the process. In addition, key consultants on your project are likely to include commercial real estate agents or tenancy advocates, interior designers or architects (and their associated consultants), lawyers for the Heads of Agreement and lease review, IT consultants and a specialist relocation project manager for complex or large moves. Select quality, experienced consultants that are closely aligned with your project goals, budget and timeline requirements.
Gab Aghion is the founding director of Business Relocation Management, which provides search, fitout and relocation project management services.
Companies relocating premises should visit www.businessrelocation.com.au for free project checklists, more top ten hints and to download the project pack.
More information
Business Relocation Management www.businessrelocation.com.au