Corporate architecture

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Corporate architecture refers to the use of architectural design to construct physical spaces (buildings, workplaces, etc.) that can promote the corporate image of a corporation. [1] During the 20th century corporate architecture was able to transition from designs with mainly function in mind to more creative endeavours, which are able to be an architectural expression of the firm’s institutional identity and play a role in stakeholders’ image of the organisation. [2] [3]

Contents

Definition

Corporate architecture is defined as a modern term for the architectural features of a firm’s building. These features are thought to communicate certain aspects of the business or the identity of the organisation as a whole. [4] The design of these buildings is created to tell the corporation’s story and are a physical manifestation of their business culture. [5]

Researchers also suggest that corporate architecture needs a wider definition that considers a broader range of economic and social contexts. Examples of this are considerations regarding the functional flexibility of buildings and headquarters, as well as the total landscape corporate spaces create and their potential future impacts. [6]

History

Prior to the 20th century, planning for the construction of new buildings was typically based on land costs and location, with the main concerns being of “image”. [7]

The utilitarian standards of the industrial revolution were largely reflected in 19th century corporate architecture. Building designs were purely functional, with simple and proportional styles. [2]

View of the Regional Enterprise Tower, built as the Alcoa Building PERSPECTIVE VIEW FROM SOUTHWEST OF THE ALCOA BUILDING, A WELL-KNOWN POST-WAR CORPORATE SKYSCRAPER BUILT IN 1953 AND DESIGNED BY THE FIRM OF HARRISON AND ABRAMOVITZ. - ALCOA Building, HABS PA-6724-1.tif
View of the Regional Enterprise Tower, built as the Alcoa Building

Over time, the economy shifted focus from production to consumption, and as this transition occurred architecture became more elaborate through use of varied shapes and symbols, as well as the use of different materials. [2] [8] For example, in 1911, Fargus shoe factory located in Lower Saxony, Germany, used glass to transform their buildings into light and open spaces. Inspired by these new ideas, new buildings were created in the 1900s that are regarded by experts as milestones of modern corporate architecture. [2] American examples described by academics are the Regional Enterprise Tower (built as the Alcoa Building) in Pittsburgh, Pennsylvania (1953), Owens-Corning Fiberglass Tower in Toledo, Ohio (1969), and the AT&T Building in Manhattan, New York (1984). [2] [8] Some defining design features of these buildings include intricate details at the base and more sculptural forms on the higher levels with heavy use of granite and marble. [8]

Additionally, offices used to be about cost-effectiveness; organisations packed people together into workspaces who had differing roles and expertise. However, in the early 2000s, there was a shift in the way offices were designed. Employees were physically grouped together based on their professional skills and functions in the company, allowing more interaction and collaboration in office spaces. [9]

The study of physical space in organisational and management studies dipped in the 1970s but became more prominent again in the 1990s as more attention was given to subjects of organisational culture and has continued to endure in the early 2000s. [10] Additionally, in the late 20th century research in multiple approaches to office design began to emerge. [7] By the late 1990s various modes of working remotely had been enabled through IT innovations. This could introduce more de-centralised organisations, self-employment opportunities and cause large businesses to downsize. [7] It is thought that the definition of “the office” and corporate architecture is changing. [11]

Function

The main rationale behind corporate architecture is to distinguish the organisation from its competitors. [4] A long term, positive reputation can be created for a company when architecture is used effectively. The physical settings stakeholders of the company interact with can create an emotional impact, which aids in their identification with the firm’s organisational practices and branding. [3] Ideally corporate architecture will result in “identification, employee attachment, job satisfaction, well-being and feelings of comfort”. [12] In management literature, corporate architecture is studied in various research fields; organisational, strategic management, marketing and communication and brand management. [2]

The Barclays Bank DCO Building in Tanzania Barclays Bank DCO Dar es Salaam.jpg
The Barclays Bank DCO Building in Tanzania

As architecture is a material art form, corporate architecture provides a physical “memory space” for corporations. [13] The idea, which posits that collective memories and identities are tied to physical spaces, makes it an important aspect of corporate heritage and marketing. [13] [14] Places like landmark buildings and corporate headquarters can provide visual cues which form individuals’ experiences and therefore their perceptions of the firm. This role in business can be seen in the banking sector, the perception of which was negatively impacted after the 2008 financial crisis. The industry was able to restore clients’ trust and gain consumer preference through creating corporate heritage. [13] [15] Another example of this can be seen in the imperial banks of the mid-1900s which operated in West Africa; Barclays Bank DCO and Standard Bank of West Africa. Bank branches preceding the late 1950s was built in a distinct colonial style, which was abandoned when the banks realised they were viewed negatively by the public as a figure of British colonialism. A modernist style of architecture was then adopted, which made no reference to the region’s colonial past. [14]

Architecture can also produce a range of functional spaces that are accessible to employees and consumers. These spaces can be organised to assist the workflow and communication requirements of the occupation and industry. [16] It is said that the renovation of old buildings or the construction of completely new facilities is often due to large scale strategic or economic changes. This is not only indicative of the evolving functional requirements of a company but is also a symbolic gesture of progress and advancement. [4]

Corporate architecture can additionally be a method managers can use to prompt a change of company culture. The Dutch consultancy agency Veldhoen & Company received attention from the corporate world in 2005 regarding their work with office design. Multiple firms based in Denmark incorporated their spatial design ideas with the intention of using this physical change to instil new work styles from their employees. [10] Three forms of spatial influences can be used by managers bring about organisational change; intimidation, manipulation and seduction. Intimidation is when a feeling of domination is imposed on people. Manipulation occurs when clients or employees are being directed through the space, even when they think they are making their own independent decisions and seduction entails the process of people identifying with the space. [17]

The building an employee works in could also influence their commitment to the organisation and its brand. Because of the way images are processed in our minds, figures and forms generated through corporate design are able to create strong memories. [18] [19] Architecture is able to represent a brand in a 3-D, multi-sensory experience. Employees also can influence the brand even when not in customer facing roles, which is why marketing researchers have identified them as important stakeholders for brand management. Raffelt et al. recommends managers should involve employees in the design of buildings from the early stages of planning. [20]

Regarded as an under-researched topic, another function identified by scholars which relates to the definition of corporate architecture is the idea that investing in the construction of corporate buildings can have a social impact. [2] This is seen in the social entrepreneurship of the Italian typewriter and tool manufacturer Olivetti. It was noted by Bonfanti et al. that the construction of spacious and comfortable factories in Ivrea and Pozzuoli with high quality residential units contributed to employee well-being as well as an improved quality of life for the wider community. [2]

Principles and strategies

The design of corporate firms is a factor of an organisation’s corporate visual identity (CVI). A CVI’s main purpose is to make the firm recognisable, so making any changes takes significant time and investment. Frequently, these changes occur because of business strategy shifts, mergers, acquisitions and other large-scale events. When companies have good reputations, this shift usually happens slowly. [21] Key aspects put forth by van den Bosch et al. of how CVI affects firms are visibility, distinctiveness, authenticity, transparency and consistency. [21]

Research suggests that certain architectural styles are associated with a specific corporate image or brand personality. [22] Two main styles identified are functionalist (focusing on simple and rational forms which are purely for function) and experiential architecture (complex and eclectic forms which serve as creative expression). Additionally, two brand personality traits: competence and excitement, are explored, with each trait seen as opposites on a spectrum. It was generally found that experiential architecture designs were more associated with an exciting brand, whereas functionalist design was perceived as more of a competent brand. Corporate buildings that were considered as moderate versions of either style, situated closer to the centre point of the spectrum, were positively described as natural and harmonious. The researchers recommend that managers should ask for a particular architectural style once a desired corporate image is decided upon. [22]

Bank of China Tower in Hong Kong Bank of China Tower (Hong Kong).jpg
Bank of China Tower in Hong Kong

A common philosophy used when designing corporate buildings in the Pan-Pacific region is feng shui . It is a traditional Chinese architectural theory which involves the construction of a physical space that is deemed as harmonious. According to a Taiwanese survey 70% of the countries’ firms believe that feng shui can generate good fortune in business and pay for feng shui related consultation on design and construction projects. [23] As this philosophy affects the construction of corporate spaces, whether a building is seen to have a good feng shui design can affect the image of the company in the eyes of stakeholders who believe in the theory. An example is Hong Kong’s Bank of China Tower, the design of which has caused controversy due to its facade of linked triangle shapes that considered to be “bad feng shui”. [23]

Corporate architecture can contribute to a firm’s corporate heritage by creating distinct symbols which aid in the transformation of a generic brand into an iconic one [13] The continuous use and pursuit of specific architectural features can imbue a company with “heritage distinctiveness” if it has continued to exist over many years. [15] This sense of history and tradition can be represented through the use of corporate architecture. An example cited by experts is IKEA and their use of images in marketing material depicting an old barn where the company first started its operations. [4] There has also been the introduction of corporate buildings which incorporate the concept of flexibility and change within the design that reflects movement. Martin Kornberger and Stewart Clegg say that these buildings possess five distinct characteristics; a balance of chaos and order, flexibility, ability to generate problems, movement and design. [24]

In literature there have been various assertions made about how symbols in corporate buildings relate to certain functions, such as boosting creativity. It is thought that certain aspects of design can elicit specific behaviours e.g. hamburger chains that strictly standardise outlets will have more standardised employee conduct. [4] Additionally, selecting the conditions and stimulus of a space create specific ambiences which can work in a company’s favour. For example, it is found that employee productivity is affected by factors like light, sound, openness and ventilation. [3] Hatch [25] additionally said that her research showed that the two main roles office design has in an organisation is communication behaviour of the employees and their perceived status. Experts additionally remark the need for clear goals, defined purpose, careful construction and clear communication of plans between architects and managers. [3]

Related Research Articles

<span class="mw-page-title-main">Feng shui</span> Chinese traditional practice

Feng shui, sometimes called Chinese geomancy, is an ancient Chinese traditional practice which claims to use energy forces to harmonize individuals with their surrounding environment. The term feng shui means, literally, "wind-water". From ancient times, landscapes and bodies of water were thought to direct the flow of the universal Qi – "cosmic current" or energy – through places and structures. More broadly, feng shui includes astronomical, astrological, architectural, cosmological, geographical and topographical dimensions.

A corporate identity or corporate image is the manner in which a corporation, firm or business enterprise presents itself to the public. The corporate identity is typically visualized by branding and with the use of trademarks, but it can also include things like product design, advertising, public relations etc. Corporate identity is a primary goal of corporate communication, aiming to build and maintain company identity.

In marketing, corporate branding refers to the practice of promoting the brand name of a corporate entity, as opposed to specific products or services. The activities and thinking that go into corporate branding are different from product and service branding because the scope of a corporate brand is typically much broader. Although corporate branding is a distinct activity from product or service branding, these different forms of branding can, and often do, take place side-by-side within a given corporation. The ways in which corporate brands and other brands interact is known as the corporate brand architecture.

In business, a competitive advantage is an attribute that allows an organization to outperform its competitors.

In marketing, brand management begins with an analysis on how a brand is currently perceived in the market, proceeds to planning how the brand should be perceived if it is to achieve its objectives and continues with ensuring that the brand is perceived as planned and secures its objectives. Developing a good relationship with target markets is essential for brand management. Tangible elements of brand management include the product itself; its look, price, and packaging, etc. The intangible elements are the experiences that the target markets share with the brand, and also the relationships they have with the brand. A brand manager would oversee all aspects of the consumer's brand association as well as relationships with members of the supply chain.

<span class="mw-page-title-main">Corporate social responsibility</span> Form of corporate self-regulation aimed at contributing to social or charitable goals

Corporate social responsibility (CSR) or corporate social impact is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in, with, or supporting professional service volunteering through pro bono programs, community development, administering monetary grants to non-profit organizations for the public benefit, or to conduct ethically oriented business and investment practices. While once it was possible to describe CSR as an internal organizational policy or a corporate ethic strategy similar to what is now known today as Environmental, Social, Governance (ESG); that time has passed as various companies have pledged to go beyond that or have been mandated or incentivized by governments to have a better impact on the surrounding community. In addition national and international standards, laws, and business models have been developed to facilitate and incentivize this phenomenon. Various organizations have used their authority to push it beyond individual or even industry-wide initiatives. In contrast, it has been considered a form of corporate self-regulation for some time, over the last decade or so it has moved considerably from voluntary decisions at the level of individual organizations to mandatory schemes at regional, national, and international levels. Moreover, scholars and firms are using the term "creating shared value", an extension of corporate social responsibility, to explain ways of doing business in a socially responsible way while making profits.

Facility management or facilities management (FM) is a professional management discipline focused on the efficient and effective delivery of logistics and other support services related to real property and buildings. It encompasses multiple disciplines to ensure functionality, comfort, safety and efficiency of the built environment by integrating people, place, process and technology, as defined by the International Organization for Standardization (ISO). The profession is certified through Global Facility Management Association member organizations.

Impression management is a conscious or subconscious process in which people attempt to influence the perceptions of other people about a person, object or event by regulating and controlling information in social interaction. It was first conceptualized by Erving Goffman in 1959 in The Presentation of Self in Everyday Life, and then was expanded upon in 1967.

<span class="mw-page-title-main">Rebranding</span> Marketing strategy

Rebranding is a marketing strategy in which a new name, term, symbol, design, concept or combination thereof is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investors, competitors, and other stakeholders. Often, this involves radical changes to a brand's logo, name, legal names, image, marketing strategy, and advertising themes. Such changes typically aim to reposition the brand/company, occasionally to distance itself from negative connotations of the previous branding, or to move the brand upmarket; they may also communicate a new message a new board of directors wishes to communicate.

In a corporation, a stakeholder is a member of "groups without whose support the organization would cease to exist", as defined in the first usage of the word in a 1963 internal memorandum at the Stanford Research Institute. The theory was later developed and championed by R. Edward Freeman in the 1980s. Since then it has gained wide acceptance in business practice and in theorizing relating to strategic management, corporate governance, business purpose and corporate social responsibility (CSR). The definition of corporate responsibilities through a classification of stakeholders to consider has been criticized as creating a false dichotomy between the "shareholder model" and the "stakeholder model", or a false analogy of the obligations towards shareholders and other interested parties.

Reputation management, originally a public relations term, refers to the influencing, controlling, enhancing, or concealing of an individual's or group's reputation. The growth of the internet and social media led to growth of reputation management companies, with search results as a core part of a client's reputation. Online reputation management, sometimes abbreviated as ORM, focuses on the management of product and service search engine results.

In the marketing field of brand management, brand architecture is the structure of brands within an organizational entity. It is the way brands within a company's portfolio are related to, and differentiated from, one another. According to J.-N. Kapferer, the brand architecture should define the different leagues of branding within the organization; how the corporate brand and sub-brands relate to and support each other; and how the sub-brands reflect or reinforce the core purpose of the corporate brand they belong to. Often, decisions about brand architecture are concerned with how to manage a parent brand and a family of sub-brands – managing brand architecture to maximize shareholder value can include using brand-valuation model techniques.

<span class="mw-page-title-main">Design management</span> Field of inquiry in business

Design management is a field of inquiry that uses design, strategy, project management and supply chain techniques to control a creative process, support a culture of creativity, and build a structure and organization for design. The objective of design management is to develop and maintain an efficient business environment in which an organization can achieve its strategic and mission goals through design. Design management is a comprehensive activity at all levels of business, from the discovery phase to the execution phase. "Simply put, design management is the business side of design. Design management encompasses the ongoing processes, business decisions, and strategies that enable innovation and create effectively-designed products, services, communications, environments, and brands that enhance our quality of life and provide organizational success." The discipline of design management overlaps with marketing management, operations management, and strategic management.

Corporate communication(s) is a set of activities involved in managing and orchestrating all internal and external communications aimed at creating a favourable point of view among stakeholders on which the company depends. It is the messages issued by a corporate organization, body or institute to its audiences, such as employees, media, channel partners and the general public. Organizations aim to communicate the same message to all its stakeholders, to transmit coherence, credibility and ethics.

Workplace Strategy is the dynamic alignment of an organization's work patterns with the work environment to enable peak performance and reduce costs.

<span class="mw-page-title-main">Corporate social media</span>

Corporate social media is the use of social media platforms, social media communications and social media marketing techniques by and within corporations, ranging from small businesses and tiny entrepreneurial startups to mid-size businesses and huge multinational firms. Within the definition of social media, there are different ways corporations utilize it. Although there is no systematic way in which social media applications can be categorized, there are various methods and approaches to having a strong social media presence.

<span class="mw-page-title-main">Office space planning</span> Process of organizing workspace layout

Office space planning is the process of organizing the workplace layout, furniture and office functions to work effectively together, while using space efficiently. Floor plans should consider the workgroup function, building codes and regulations, lighting, teaming requirements, inter-communication and storage, as well as zoning for employee workstations, task space needs, support rooms and reception areas to make the best use of available space. Optimising office spaces with effective space planning can aid circulation, productivity and improve workplace wellness, as well as the health and safety of occupants.

Online presence management is the process of creating and promoting traffic to a personal or professional brand online. This process combines web design, and development, blogging, search engine optimization, pay-per-click marketing, reputation management, directory listings, social media, link sharing, and other avenues to create a long-term positive presence for a person, organization, or product in search engines and on the web in general.

Activity-based working (ABW) is an organizational strategic framework that recognizes that people often perform a variety of activities in their day-to-day work, and therefore need a variety of work settings supported by the right technology and culture to carry out these activities effectively. Based on activity, individuals, teams, and the organization are empowered to achieve their full potential by developing a culture of connection, inspiration, accountability, and trust. On a personal level, ABW also enables each person to organize their work activities in a way that best suits what and with whom they are trying to accomplish, promoting productivity and engagement at work. Although not normally implemented as a cost-saving business strategy, it can produce efficiencies and cost savings through more effective collaboration and team work. Inspiring spaces that evolve from an activity-based approach are designed to create opportunities for a variety of workplace activities, ranging from intense focused work to collaboration, as well as areas for meetings, whether formal or impromptu.

Design culture is an organizational culture focused on approaches that improve customer experiences through design. In every firm, the design culture is of significance as it allows the company to understand users and their needs. Integration of design culture in any organisation aims at creating experiences that add value to their respective users. In general, design culture entails undertaking design as the forefront of every operation in the organisation, from strategy formulation to execution. Every organisation is responsible for ensuring a healthy design culture through the application of numerous strategies. For instance, an organisation should provide a platform that allows every stakeholder to engage in design recesses. Consequently, employees across the board need to incorporate design thinking, which is associated with innovation and critical thinking.

References

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