Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.

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Clinton Osborne
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2 Credit(s) earned on completion of this course will be reported to AIA CES for AIA members. Certificates of Completion for both AIA members and non-aia members are available upon request. This course is registered with AIA CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.

3 Course Description and Learning Objectives Conventional office lighting is out of sync with the new collaborative workplace. Traditional lighting practice contributes to reduced occupant satisfaction and under-mines productivity. This session combines recent industry findings and a case study example to describe how portable, furniture-mounted lighting systems compensate for reduced space allocations and improve business performance while driving significant savings to the bottom line. At the end of this course, participants will: Recognize employee environmental satisfaction as the primary driver of organizational success. Recognize individual focus work as the most significant factor in business performance. Understand how furniture-mounted task/ambient lighting can improve the effectiveness of collaborative workspaces. Understand how portable office lighting changes the ROI equation

4 Workplace quality makes a difference

5 Workplace quality makes a difference

Workplace quality makes a difference Respondents said a better working environment could increase their productivity 21%. 49% said they would work an extra hour per day.

6 Workplace quality makes a difference Respondents said a better working environment could increase their productivity 21%. 49% said they would work an extra hour per day. Creating a more collaborative office construct and culture surfaced as the key to increasing organizational output and competitiveness. Gensler U.S. Workplace Survey 2006

7 Design to support 4 modes of work

8 Design to support 4 modes of work Collaboration was identified as one of 4 work modes. Top performing companies provide workspaces that support all four work modes. 6% 48% 32% 6% Gensler U.S. Workplace Survey 2008

9 Design to support 4 modes of work Open work environments reduce real estate footprint but can result in visual distractions that hamper the ability to focus. Modern pressures on real estate costs have diminished the quality of the focus mode. Balancing focus with other work modes [and space allocations] is a challenge 6% 6% 48% 32% Gensler U.S. Workplace Survey 2008

10 New focus on individual work

A workplace that scores well for effective focus scores well for collaboration, learning

11 New focus on individual work The most significant factor in workplace effectiveness is not collaboration, it s individual focus work. A workplace that scores well for effective focus scores well for collaboration, learning and socializing. The criticality and time spent on focus is increasing. What We ve Learned About Focus in The Workplace, Gensler 2012

12 Workplace effectiveness is in decline

13 Workplace effectiveness is in decline

Workplace effectiveness is in decline Overall workplace performance has dropped 6% since 2008. A decrease in the effectiveness of focused work drove this decline.

14 Workplace effectiveness is in decline Overall workplace performance has dropped 6% since A decrease in the effectiveness of focused work drove this decline. When focus is compromised in pursuit of collaboration, neither works well. Knowledge workers are focusing more and collaborating less. The ability to focus and complete one s individual work is a baseline need for today s knowledge workers. Gensler U.S. Workplace Survey 2013

15 Workplace effectiveness is in decline Overall workplace performance has dropped 6% since 2008.

effectiveness scores across all four work modes Employees without choice report

16 Choice drives performance and innovation Employers who offer choice in when and where to work have workers who are 12% more satisfied with their jobs and report higher effectiveness scores across all four work modes Employees without choice report organizational policy as the primary limit to their workplace autonomy Gensler U.S. Workplace Survey 2013

17 Noise undermines productivity Audible noise Technological noise Visual noise

18 Noise undermines productivity Audible noise Technological noise Visual noise

19 Traditional office lighting does not support focus Indiscriminate Impersonal Visual emphasis is on the public aspect of the space Fails to acknowledge employee value

20 Traditional office lighting does not support focus Indiscriminate Impersonal Visual emphasis is on the public aspect of the space Fails to acknowledge employee value

21 Traditional office lighting invites distraction Luminance, color, and motion demand visual attention.

22 Traditional office lighting invites distraction Luminance, color, and motion demand visual attention.

23 Traditional office lighting invites distraction Luminance, color, and motion demand visual attention.

24 Traditional office lighting invites distraction Luminance, color, and motion demand visual attention.

25 Favorable luminance ratios support personal work Establish environmental luminance that does not subvert task focus.

26 Favorable luminance ratios support personal work An inverted luminance hierarchy: Reduces visual distractions Elevates perceived visual privacy Increases visual comfort De-emphasizes the public construct; aids in place-making Enables focus

27 Favorable luminance ratios support personal work An inverted luminance hierarchy: Reduces visual distractions Elevates perceived visual privacy Increases visual comfort De-emphasizes the public construct; aids in place-making Enables focus

28 Furniture-mounted task/ambient lighting An inverted luminance hierarchy: Reduces visual distractions Elevates perceived visual privacy Increases visual comfort De-emphasizes the public construct; aids in place-making Enables focus

29 Furniture-mounted task/ambient lighting

30 Furniture-mounted task/ambient lighting

31 Furniture-mounted task/ambient lighting

32 Furniture-mounted task/ambient lighting

33 Furniture-mounted task/ambient lighting

34 Furniture-mounted task/ambient lighting

35 Furniture-mounted task/ambient lighting

36 Furniture-mounted task/ambient lighting Strategically deploys energy resources Shields occupants from glare Accessible for personal control Supports individual focus work

37 Furniture-mounted task/ambient lighting Invites distraction Energy is not optimally applied Occupants are exposed to direct glare No opportunity for personal control

38 Furniture-mounted task/ambient lighting Aligning lighting with occupants conveys organizational commitment Personal control counters the onesize-fits-all mentality

39 Furniture-mounted task/ambient lighting When lighting is designed to support individual focus work, offices look different and feel better. Lighting solutions that acknowledge and empower individual workers compensate for reduced space allocations.

40 Organizational benefits and ROI Employees measure their organization s commitment to their personal well-being in part by how well workplace lighting is aligned with their personal work space and needs. National Research Council Canada Institute for Research in Construction, 2010

Organizational benefits and ROI Furniture-mounted task/ambient lighting can Mitigate the impact of reduced space allocation Reduce employee turnover Attract talent and reduce

41 Organizational benefits and ROI Furniture-mounted task/ambient lighting can Mitigate the impact of reduced space allocation Reduce employee turnover Attract talent and reduce hiring and training costs Reduce absenteeism Support individual focus work Elevate workforce productivity National Research Council Canada Institute for Research in Construction, 2010

42 Organizational benefits and ROI better working environment better lighting and personal control $45.40 per hour $1,889 annual savings per employee 176SF $94,432 avg. annual salary and benefits 1 $10.73 annual savings/sf 1. Comparing the Compensation of Federal and Private-Sector Employees, Congressional Budget Office, 2012

43 Codes embrace positive change Energy codes promote furniture-mounted lighting for energy savings Permanent Portable W/sf 0.20 W/sf 0.90 W/sf 0.20 W/sf 0.90 W/sf 0.20 W/sf 0.75 W/sf 0.30 W/sf

44 Tangible cost savings and ROI Energy cost savings $ Consumes 10%-50% less energy than traditional lighting systems $ 30-50% below energy code allowances $ Personal control contributes to energy savings $ Corresponding savings in AC system sizing and energy costs

45 Tangible cost savings and ROI Reduced installation labor and branch wiring costs $ Eliminates overhead conduit and wiring $ Installed by furniture trade, not E.C. (most municipalities) $ Taps into underutilized furniture power systems

46 Tangible cost savings and ROI Maintenance cost savings $ Fewer lamps and ballasts $ Walk-up relamping no ladders; minimal business interruption. $ AC system maintenance (proportional to reduced load)

47 Tangible cost savings and ROI Reconfiguration savings $ Portable; easy to reposition and/or relocate $ Minimal business interruption

48 Tangible cost savings and ROI Tax deductions $ Qualifies as tangible business property $ Accelerated depreciation; 7-year write-off vs. 39 years (TI and NC) $ IRS Section 179 first-year deduction and bonus for small companies

49 Tangible cost savings and ROI Tax deductions $ Qualifies as tangible business property $ Accelerated depreciation; 7-year write-off vs. 39 years (TI and NC) $ IRS Section 179 first-year deduction and bonus for small companies

Tangible cost savings and ROI Case Study High-rise office building in NYC Previous space: 299,407sf New space: 180,519sf 40% space reduction 180,519sf on 11 floors

50 Tangible cost savings and ROI Case Study High-rise office building in NYC Previous space: 299,407sf New space: 180,519sf 40% space reduction 180,519sf on 11 floors for 690 current employees and 115 future employees = 224sf per employee 703 bench workstations in 50,790sf of open workspace = 72.2sf per employee in the open plan

51 Tangible cost savings and ROI Case Study Traditional recessed ceiling troffers

52 Tangible cost savings and ROI Case Study Furniture-mounted task/ambient

53 Tangible cost savings and ROI Case Study Traditional recessed ceiling troffers, 0.66 W/sf 1280 lamps Furniture-mounted task/ambient, 0.57 W/sf 0.5 W/sf with dimming 720 lamps 1 1. Assumes 30% of occupants with personal dimming operate at 50% output.

54 Tangible cost savings and ROI Case Study Traditional recessed ceiling troffers Furniture-mounted task/ambient

55 Tangible cost savings and ROI Case Study Traditional recessed ceiling troffers Furniture-mounted task/ambient

56 Tangible cost savings and ROI Case Study Cost/Benefit 11-year savings 1 (PV) Lighting equipment (incl. lamps) $1,404,280 $1,560,596 Lighting installation and wiring Sales tax 11-year operating cost after tax 1 (PV) -$765,493 $0 Ceiling troffers Task/ambient Task/ambient w/personal dim 1. Assumes 6% cost of capital. 2. Includes investment cost on initial premiums, depreciation tax savings and 35% corporate tax rate. 9% 30% -$547,546 -$595,864

57 Tangible cost savings and ROI Case Study Cost/Benefit Accumulated annual savings 3.1 yrs Year-by-year savings 30% premium Years Portable task/ambient w/personal dim (incl. hardwired egress)

58 International Living Future institute Case Study Glumac s Shanghai office is the first Living Building Challenge project in Asia The project employs furniture mounted LED task/ambient lighting

59 International Living Future institute Case Study Glumac s Shanghai office is the first Living Building Challenge project in Asia The project employs furniture mounted LED task/ambient lighting

60 Where do we go from here?

61 Where do we go from here?

Implement task/ambient lighting to provide choices and support individual focus work in the collaborative workplace.

62 Where do we go from here? Employee environmental satisfaction drives business performance. Downward pressures on space allocations and energy consumption are not going away. Reverse the productivity drain. Implement task/ambient lighting to provide choices and support individual focus work in the collaborative workplace. Choose portable solutions to facilitate deployment and leverage tax deductions to overcome the initial cost of advanced technologies that maximize overall performance

63 This completes the CEU portion of this presentation. Questions?

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