Creating business value with open space flexible offices

The purpose of this paper is to examine what organisational and management practices used in connection with open space flexible offices create business value. It seeks to identify what consequences this may have for successful real estate practices.

This paper utilises an inductive case study approach. The international telecom company Telenor has implemented open space flexible offices from top to bottom amongst their 35,000 employees. The case description and analysis is based on secondary data, user evaluations and 20 interviews with middle- and top-level managers across levels and functional departments.

The case of Telenor reveals that leadership and organizing issues are important, together with work modes and communication technology, for a productive use of work place design. The paper highlights specifically how the open, transparent, flexible office solution creates business value when used with centralised and standardised organisational management systems and a participative, informal leadership culture.

The study is based on one case, so the findings need to be tested across a representative sample of companies.

Managers need to take both organisational and management issues into consideration when implementing new office space design. This challenges also the existing real estate strategies to include the organisational and management issues in their planning.

The originality and value of the paper lies in the analysis and findings of the Telenor case introducing organizational and management perspectives to real estate issues.