creating value with knoll

Creating Value with Knoll

For Internal Use OnlyPrepared: January 7, 2009

Creating Value with Knoll© Knoll, Inc. 2009

Prepared: January 7, 2009 Page 1

Creating Value with Knoll In a challenging economic climate, our clients will scrutinize and measure more carefully the

value delivered by every purchase of goods and services. They will:

• Look for solutions that save money

• Demand more for less

• Focus on the short-term (12-18 months)

• Avoid risk

• Take longer to decide

• Require more approvals

• Need more changes

Our sales process and product offering will need to take these conditions into consideration.

We have discussed in the past how Knoll offers to every client a unique combination of distinct choices

for diverse workplace needs, enduring design and a consultative approach.

For the past seven decades, these core values have driven the development of products that allow us to

offer our client an economical solution.

In this document we will explore strategies to deliver economies of space (planning), time and place

(facilities management) and product (specification).

On the other hand, narrow focus on product and price is not enough. Ultimately, our clients will look

at us to provide information to support their decisions and to offer solutions that contribute to larger

business goals.

The strategies and tactics used to make our products more economical are a good match to important

trends in planning and workplace research. Combining our insight into the way people work with

suggestions for product solutions may open new, engaging conversations with companies that are

reducing their spending or downsizing.

In the following pages you will find examples of strategies that can make a furniture solution more

economical. They will be paired with insight from our workplace experience and research and followed

by examples of Knoll products that you can use to illustrate each point.



1. Planning Efficiency – Economies of Space

Lower Heights

Lowering panel heights from standing privacy (60”+) to seated privacy (48”-50”) can create

immediate savings up to 10% in the price of the panel surround. Combine lower panels with

open shelves and eliminate overhead cabinets and the list price of a cluster of station may

drop up to 15%

As many companies move their private offices from the perimeter to the core of the building, lower panel

heights allow natural light to penetrate the entire workplace for improved employee satisfaction and

productivity.

Lower panel heights and access to natural light can also become part of a lighting strategy that reduces

energy cost for the entire building. Additionally, specific LEED Credits are assigned for access to daylight

and views.

In companies with a significant percentage of mobile workers, lower panel heights allow employees

to see and be seen, creating effective connections when they are visiting the office and fulfilling the

individual mobile worker need for social interaction.

• AutoStrada supports a low landscape with its continuous spine runs, low storage units and

expansive open tables. Horizontal aluminum trim underline the connectedness of the open office.

• Crisp rectilinear lines, Open Weave screens, continuous top trim options and credenzas create a

linear, horizontal look for Dividends Horizon and support lower workstation heights.

• Illustrate how lower partitions can be fully functional by explaining how to up-mount overhead

storage from panels and spine walls.



Smaller Footprint

Intuitively, smaller workstations are less costly since they are built with fewer, smaller

components. A simple 6x6 station with 48”H panels and no overhead storage is 5% to 10%

less expensive than a corresponding 6x8. Lower panels and 120-degree planning can create

functional workstation that don’t feel cramped but occupy fewer square feet.

The balance of square footage assigned to individual and common spaces is changing. As more interior

space is dedicated to meeting, conference and team rooms, people are spending less time and doing

less work at their individual workstations.

Flat screen monitors and wireless keyboards eliminate the need for computer-dedicated desktop space.

An 8’x8’ station with a dedicated computer corner worksurface (required for a CRT monitor)

occupies 64 square feet but leaves only 22 square feet of usable work area. A 6’x7’ station

with rectilinear surfaces and a flat screen monitor offers the same 22 square feet

of usable work area in only 42 square feet of total footprint.

• The Chadwick chair is scaled to fit smaller workstation sizes and maximize

capacity for common areas. Only 41.8” tall and 25.5” deep, the Chadwick chair

offers full ergonomics with minimal controls, making it the ideal chair to multi-

task between individual and meeting areas.

• Flat screen monitors are more energy efficient and eliminate the need for more

costly corner work surfaces. Plan a 24” or 30” deep main work surface for

writing and computer work and reduce the surface along the spine to 18” deep

work surfaces or even shelves mounted at desk height. This type of layout is

smaller and uses fewer panels and brackets. Flat panel monitor supports, CPU

holders and keyboard supports allow users to keep desk surfaces clear for

added workspace.

• Where more unstructured, collaborative work is done, Currents Fence and

Upstart tables can create a compact, open and inexpensive office with high density of power and

data outlets and moveable, height-adjustable tables and desks. A 6-person grouping of freestanding

spine and Upstart tables will be at least 10% less expensive than a corresponding panel cluster.



Consolidated Storage

Calibre files offer a 1.5” planning model for drawer heights to combine two storage solutions into one.

Reducing the number of storage components while maintaining storage volume supports planning

trends based on lower horizons and smaller footprints.

• Reduce the number of pedestals in a workstation with 3-10-10 drawer configurations. By proposing

a reasonable compromise to reduce storage of office supplies and personal items to one 3”H

drawer, we can offer 2 file drawers and personal storage in one unit, supporting the majority of

personal filing needs and eliminating the second pedestal.

• Combine a file/file pedestal and an overhead cabinet into a single Calibre 2-high lateral file with

13.5”H receding door binder opening and a 10.5” file drawer. Filing and binder storage space

is virtually unchanged and list price is decreased by 6% (in a comparison between Calibre files,

pedestals and Series 2 overheads).

• Combine a file/file and a box/box/file pedestal into a single Calibre 2-high lateral with 3-10-10

personal and file drawers. Filing inches increase by 30% and list price decreases by 11% (in a

comparison between Calibre pedestals and files).



2. Facility Management Efficiency – Economies of Time and Place

Managing Product and Installation

A carefully selected kit of parts is the cornerstone of efficient and economical facilities

management. Universal parts and shared components in systems and accessories minimize

inventory needs and maximize flexibility in reconfigurations. Fewer parts and configurations

also make for more predictable and rapid installations. Knoll products are interchangeable and

complementary. Choices made by clients today will not limit them in their ability to change, add,

enhance and generally build on existing inventory.

For real estate and facilities teams, technology changes, mobility, globalization and shorter development

cycles reduce the ability to anticipate future direction. Occupancy times and project timelines for

commercial buildings are shrinking and the ability to react and change quickly becomes increasingly

more relevant.

•The panel frame architecture of Dividends Horizon and Reff supports changing aesthetic (different

tile surfaces and trim options) and changing functional needs, with tiers of load bearing stack panels

and base options that can be converted in the field.

•Reff floor-to-ceiling modules create enclosed office spaces from existing open plan panel

components.

•Freestanding tables, credenzas, and storage towers can be used in open plan and private office

applications, making installations faster and more intuitive, requiring little or no disassembly.

•Morrison panels are strong and light-weight. Unloading a trailer is fast, easy and damage-free.

Connectors have double-width slots for bracketry, a self-leveling device that makes for fast and

accurate assembly.

•Life and Essentials Work Chairs feature seat cushions that can be changed and updated with no

tools required; they simply snap off and on for quick and easy replacements.



Technology Management

Sophisticated distribution and built-in design details make technology installation and changes

simple, saving time and money. Avoiding risk and future-proofing solutions are key goals for IT

professionals participating in facilities and furniture decisions.

In most markets, the hourly cost of data network technicians is 60% to 80% higher than the cost of

furniture installers.

•Dividends Horizon frames allow cable routing through the

interior of the panel and removable tiles make accessing power

and data simple and cost effective. The frame supports future

power needs at the base, above or below desk height. Technology

tiles offer a simple, easy to install access point.

•Lay-in cable distribution anywhere on the face of Currents

and AutoStrada service wall studs radically reduces installation

time and makes cables instantly accessible, even after all other

components are mounted, minimizing down time and changes for

damage. The service wall integrates with existing Knoll and non-

Knoll systems for a cost effective, technology-driven, performance

upgrade.

•The Currents and AutoStrada service wall accommodates a steel conduit that creates a secure

channel for data and communications cables. Separation of data cables in the lay-in inner surface of

the spine wall allows for better management and monitoring of secure data cables.

Sustainable Practices

Many of our customers have committed to lower the cost of office facilities through the adoption

of environmentally sustainable practices in architecture and interior design.

The U.S. Green Building Council (USGBC) reports that green buildings, as compared to conventional

buildings, use 20-50% less energy, up to 40% less water and generate up to 70% savings on solid

waste, maximizing the cost effectiveness of buildings.

Additionally, green building demand is increasing, improving market value, occupancy and rent rates for

green buildings.

Knoll supports the efforts of these clients helping them achieve LEED certification.

•Knoll actively promotes third party certification to provide impartial and trustworthy foundation for

compliance. Knoll systems, storage and KnollExtra products are all Greenguard certified. Office

Seating is Greenguard Children and Schools certified. Knoll systems are available with FSC-certified

wood. Life and Chadwick chairs are SMaRT Gold certified.

•Knoll has been developing and implementing clean technology for over 25 years, with innovations

ranging from non-VOC emitting adhesives to coatings for wood veneer finishes. Our product

development process follows the Design for the Environment Guidelines that mandate design for

durability, minimum material usage and material selection.

•Knoll contributes to the common long-term goal to reduce global warming with a legally binding

greenhouse gas reduction program with the Chicago Climate Exchange.



3. Specification Efficiency – Economies of Product

Focused Enhancements

Carefully consider each component of the office and the value each client may assign to

functionality and aesthetic. Understand the big picture of the different areas and departments in

a project. Upgrade on high-touch items like seating upholstery, trim pieces and worksurfaces in

veneer finishes.

Our internal research shows that the Knoll brand is associated with an expectation of product choices,

inspiring aesthetics and design-driven solutions. Carefully chosen product details and accessories

match these expectations, strengthen our message and improve our odds.

•Always showcase numerous KnollTextiles options as part of the design process. If other

manufacturers have to adopt our textiles, the Knoll solution will be more economical. When

competing with lower-price products, use samples of KnollTextiles panel fabrics in Grade 10

and 20. They are superior in range and quality to many of the alternatives available.

•Morrison V1 trim comes at no up charge and Reff veneer worksurfaces can add refined wood

detailing at a great value to most systems layouts.

•Choosing higher end options doesn’t always mean paying a large premium. The Life chair can be

upgraded with a polished aluminum base for a list price increase of just $54 over the plastic base

(a modest upcharge compared to competitors). Choosing a higher impact KnollTextiles fabric seat

topper in a grade C is just 6.3% more than the base grade knitted seat topper for Life.

Intelligent Specification

For any kind of client or applications, there are simple tactics to create economical workstations.

Use them as specification guidelines or as a tool to review existing workstations.

•Start at the lowest possible panel height

•Specify monolithic panels rather than tiled panels

•Avoid change-of-height conditions

•Use grade 10 and 20 panel fabrics

•Start with plastic trim in Dividends Horizon and Morrison

•Specify the widest possible panels first

•Substitute end panels and support legs for wing panels

•Power spine panels only

•Avoid grommets unless expressly required (wire drops work well in most situations)

•Specify widest overhead cabinet available for the application

•Use open shelves instead of overhead cabinets

•Consider under-worksurface storage (shelves, credenzas, 2-hi lateral files)

•Concentrate storage with 1.5” planning

•Provide high volume of storage with Calibre and Series 2 storage towers

•Consolidate multiple storage products with towers and 3-10-10 files and pedestals

•Economize on components using towers in place of wing panels



Personal Value

In a tough economic climate, many of our clients will not be engaged in large-scale construction

or renovation. At the same time, they are still looking to satisfy the demands of their internal

clients, the individual employees. We can deliver efficiency and personalized value with targeted

product upgrades and enhancements. A six-person cluster of systems products for $60,000 list

may too large of an expense, but less than $10,000 list would be enough to provide all new office

and guest seating, and less than $5,000 list will integrate task lighting, new technology and

paper management tools.

Research has shown that individual control over the use of workspace improves employee performance

and reduces stress.

While figures vary, most ergonomic improvements are thought to increase worker productivity by at

least 10%.

•KnollExtra provides integral tools to make the work life easier, helping individuals illuminate and

organize their spaces, facilitating communications and managing technology.

•Ergonomic office seating provides many opportunities to upgrade comfort and performance levels

and respond to personal needs and preferences.

•Height-adjustable tables and adjustable keyboard supports respond to the sometimes challenging

ergonomic requirements of computer work and shared work areas.



Beyond the Short-TermIn the months ahead, there will be a decidedly short-term focus on the decision our clients and

design partners will have to make. The same will be true for our competitors.

This document is intended to illustrate strategies and tactics to make our products more economical and

engage in conversations with companies that are reducing their spending or downsizing.

At the same time, our core values of distinct choices for diverse workplace needs, enduring design

and a consultative approach support the long-term success of our clients.

Restrained Presence and Attention to Detail

Our products are a “supporting player,” deferring to the space they occupy. Form follows function to

deliver a quiet aesthetic that is less subject to the volatility of fashionable industrial design.

Longevity of Systems Platforms

Each product “chassis” has been time tested, with a track record of 10 to 40 years. Meaningful

enhancements in aesthetic and function build on the existing product platforms and keep them up-to-

date with work style and technology changes, safeguarding the clients’ financial investment.

Significant Workplace Experience

We have installed over $8 billion worth of office solutions for clients around the globe and we are

grounded in seven decades of real client experience in diverse industries.

Ongoing Product Introductions

We have seven decades of workplace experience behind us, but we still get most excited with what is

coming next. Today we are as excited as we have ever been about our pipeline of upcoming product

introductions:

•A revolutionary chair for the new way people work

•A storage system with architectural presence and planning intelligence

•A modestly priced pull-up chair and a multi-purpose stacker

creating value with knoll

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