In renovating its Manhattan tower, Citigroup is planning to offer all the amenities of the modern skyscraper, including a rooftop deck, state-of-the-art gym, upgraded coffee and faster elevators. But when the bank’s executives move this month into their new digs at the 39-story office building, they will find one big thing missing: actual offices. The nation’s 3rd-largest bank is making the shift to an open-plan layout—a vibe more identified with tech startups than global banking conglomerates—where no one, not even its CEO will have a door. Most employees won’t even get their own desks.
Citigroup says the setup will connect people face-to-face, raise energy levels and save money, by fitting more people into one space. The new layout is minimalist and egalitarian. Because most desks aren’t assigned, employees must lock up their family photos and personal stuff each night. Everyone gets a window view—but no one gets complete privacy.
“Researchers disagree about whether open offices foster communication or encourage distraction,” writes The Wall Street Journal (Dec. 26, 2015). The wall-less workspace is meant to flatten hierarchies, something banks have traditionally been built on. The Citicorp CEO’s new 360 sq. ft. workspace won’t have walls or a door. Instead it features tall glass dividers to provide what the bank calls “seated privacy.” Lesser executives get semiprivate spaces of 180 sq. ft.
The bank says it carefully considered its employees’ concerns. The design—from white-noise generators to walls and ceilings that absorb sound—is meant to minimize the distraction of nearby conversations. Each floor will have multiple conference rooms and small phone rooms for private conversations. But other banks that have incorporated some open spaces have kept private offices for almost all of their senior executives.
Classroom discussion questions:
1.Why is office layout an important OM decision?
2. What are the 3 physical and social aspects that workspace layout must balance (see Chapter 9)?