Add effective business user relationship management to the appraisal process for all IT team members.

With the right leadership in place, and enthusiastic engagement from the senior management team, the IT department can lead the company in management excellence.

NOTES

1. Peter Ustinov, Quotable Ustinov (Amherst, NY: Prometheus Books, 1995).

2. R. Mack, Creating an IT Strategy: An Alternative Approach (New York: Gartner, 2002).

3. Gary Hamel and C. K. Prahalad, The Core Competence of the Corporation,

in Harvard Business Review, Business Classics, Keys for Managerial Success (Boston, MA: Harvard Business Press, 1990), p. 64.

4. See note 3, p. 68.

5. Louis Henri Sullivan, The Tall Office Building Artistically Considered (Philadelphia: JB Lippincott and Co., 1896).

6. www.dictionary.com (October 16, 2002).

7. Potter Stewart, Associate Supreme Court Justice, Jacobellis v. Ohio, 1964.

Real Estate and Facilities

K.Todd Phillips

Always bear in mind that your own resolution to succeed is more important than any other.

-Abraham Lincoln1

This chapter addresses the various issues and questions that the professional services firm should consider when leasing commercial office space. Topics include: (1) preliminary questions that the professional services firm should address prior to looking for office space, (2) how to work with leasing agents and the value that they bring to the process, (3) developing a list of potential properties on paper, (4) conducting property inspections and the most important things to look for and consider, and (5) the lease negotiation process.

The chapter then focuses on the office design of the professional services firm, including a basic discussion of space planning issues and the options to consider in laying out the office, from reception and other common areas, to the professional and nonprofessional offices and work stations. Last, this chapter touches on some of the larger nontechnical capital expenses that you should expect to incur in setting up a professional firm, including items such as furniture and filing systems.

Why This Topic Is Important

Selecting the right office for the professional services firm is every bit as important as it is for other businesses. The cost of leasing office space is typically one of the largest fixed, non-labor monthly expenses that any professional services firm incurs; thus, from a strictly financial perspective, it is important to carefully consider the various leasing options that the firm

will face in light of the firms budgetary constraints. Not only is choosing the right office space important from an economic standpoint, but there are a host of subissues that are important for the firm to consider before entering a lease. For example, clients invariably have certain expectations about both the location and quality of their professionals offices, and often use such things as a proxy for judging the quality of the services provided. To meet such expectations and maintain a happy and satisfied client base, which is critical to the success of any professional services firm, it is important to consider client concerns when deciding whether to enter a particular lease. In addition, commercial office leases and subleases are often complicated, long-term contracts that include various complex and unfamiliar provisions. Before the professional services firm enters into contractual negotiations over a lease, it should have a basic understanding of the more familiar and negotiable terms that are found in the standard commercial office lease. This chapter addresses each of the foregoing subjects, among others, and offers insights as to how the professional services firm might best arm itself to address these issues. Chapter 19, on legal counsel, also discusses some of the issues to be considered by the firm before entering into legally binding agreements such as leases.

Once a lease has been executed, there are still a host of issues that the professional services firm must address. If, for example, the office space in question has not been finished out, the firm must develop an office design and layout that is consistent with the image the firm hopes to project, and which promotes both productivity and cohesion among the professionals and staff. If, on the other hand, the office space has already been finished out by the landlord or sublessor, the firm must assess whether the current design meets its requirements and, if not, whether and to what extent additional construction must be undertaken. Finally, assuming that the office is not furnished, the firm must make arrangements to furnish the office space, which will include an assessment of the furniture and work-space needs of both the professionals and staff employed by the firm, as well as the common areas and back office of the firm.

Leasing Commercial Office Space

The most common arrangement for professional services firms to acquire office space is through a lease arrangement. This section covers the process for determining leasing needs and identifying appropriate space.

Preliminary Considerations

Before the professional services firm begins to search for office space, it should undertake a preliminary analysis of various factors that will help