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LET’S TALK CONTENTS
6 1 0 2 LET’S TALK VOLUMEVOLUME 1 1 LET’S TALK LET’S TALK R VOLUME 2 VOLUME 3 E SUMMERSUMMER 2014 2014 MONSOON 2014 SUMMER 2015 M S U M CREDITS: EDITORIAL AND CONTENT - ANUBHAV GUPTA NAMRATA MEHRA CREATIVES - JYOTIKA PURWAR
THE MAKING GOOD BUSINESS SENSE BY DESIGN THE TREES | GODREJ BKC STUDIO DESIGN METRICS 04 - 21 HOW WE WORK APPROACH 22 - 95 PARTNERSHIPS SCALE SUSTAINABILITY ENGAGEMENTS STUDIO 2.0
NEWS & NOTEWORTHY 96 - 101
INSIDE STORIES 102 - 117
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THE STUDIO
Vikhroli has always been a vibrant test bed for entrepreneurship, new visions, experimentation and innovation. More recently, the Imagine Studio and The Trees (GPL’s flagship development) as a whole have emerged as successful prototypes of a new way of thinking and delivering real estate in India. A brand new vision is currently underway – one that celebrates our legacy, encapsulates our values and offers the opportunity for brighter living.
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DESIGN THINKING
DESIRABILITY
MARKETABILITY DES IGN W T H R? H O IS T F O IN I K I N G
DESIGN
FEASIBILITY VIABILITY CONSTRUCTION (BUSINESS) APPROVABILITY
most benefits from point out that design is The hypothesis of this MAKING GOOD BUSINESS SENSE BY DESIGN – design seem to only be not about design, well - cultural shift is based recognized after the fact as most people know it. on making our interface DESIGN THINKING DECODED FOR REAL ESTATE of producing the tangible Steve Jobs famously said - with complexity simpler, artifact and its subsequent Design is not how it looks intuitive, pleasurable They say, what you don’t business success. like or feels like. Design and memorable. Design know can’t hurt you but is how it works. In real thinking could be the yet we are afraid of it. However, whilst this estate, we coined our own dot connector and a Design is somewhat like success acknowledges phrase – Design is not a progressive system based that and for the most design as a powerful business vertical, Design tool for whole brained part it hugely benefits contributor, its value is is a business horizontal. thinking, decision making us (if done right), yet in never quantified; rendering Jon Kolko’s article in the and finally to achieve traditional real estate it a speculative case-by- Harvard Business Review* a desired business development it appears case investment to those refers to our world of outcome. Hence, to make to be the most stifled, who deem its importance dynamic complexity where that leap between fuzzy under optimized, least somewhat necessary in an organizational shift is logic to Boolean business invested in and always today’s day. In light of currently underway to logic, we set up the GPL at the sacrificial alter of this it maybe useful to put design close to the Design Studio, an anomaly any other priority deemed center of enterprise. He within the traditional to have more immediate articulates that this shift real estate development and significant business is not about aesthetics company. The Studio can interest. The process of but about applying be described as an open design appears fuzzy to design principles to the source framework that most left brained thinkers way people/companies/ applies the principles who tend to get frustrated things/interfaces work. of design thinking and with making (what appears powers the organization to be) a blind investment to – ‘make good business in its fuzzy logic to sense, by design.’ arrive at a desirable business conclusion. *https://hbr.org/2015/09/ It is no surprise that design-thinking-comes-of-age
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DESIGN THINKING
W HAT IS IT ? ION NNOVAT SS I INE BUS R FO G W IN The concept/application story. Companies that are NK H HI of design thinking is perceived at the cutting T N A not a new one nor is edge of innovation and
IG
S T it rocket science. It thought leadership across
E
D
DEFINE was first discussed in sectors have design
1969 by Nobel laureate, thinking in common
HO
Herbert Simon in his with their core business
W
book, The Sciences of strategy. These include
the Artificial. Over the (but may not be limited
years, leading international to) Apple, IBM, GE,
EMPATHISE IDEATE
design/business Philips, Pepsi, 3M, Aston
schools and more Martin, Tata Motors and
recently management more recently the Godrej
consultancies like IDEO, group. As evidenced from
Mckinsey, Bain, BCG, available literature, it is
Deloitte and Accenture (to also interesting to note
name a few) are advising that investors are taking
global companies on its notice of design thinking
clear value additions to and its benefits in the
their businesses. boardroom for their long-
term returns. W
PROTOTYPE Essentially, design thinking
O is a problem solving H
system that answers the -
who, what, how and why
by empathizing, defining, STORY TELLING ideating, prototyping
TEST and testing, all woven WHY together in an authentic
narrative to make a
compelling/participative
IGN ES S D AND DEM INNOVATION
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DESIGN THINKING
H O E ? W IS IT D O N
So what do these FOCUS ON PARTICULARLY EMPATHY, USING companies do that others 1 EMOTIONAL RESONANCE are still struggling to EXPERIENCE embrace?
This issue of Let’s Talk focuses on specific examples where we have successfully CREATE TO EXAMINE COMPLEX deployed design thinking 2 PROBLEMS USING DESIGN to demonstrate both MODELS & ARTIFACTS TO EXPLORE, DEFINE, qualitative and quantitative EMPOWER COMMUNICATE AND BUILD benefits for our real estate CONSENSUS business.
DEPLOY TO TEST POSSIBLE SOLUTIONS 3 AND SOLICIT FEEDBACK ON PROTOTYPES SUCCESS PARAMETERS
TOLERATE WITHIN REASON BACKED 4 BY COST BENEFIT ANALYSIS FAILURE TO INVEST IN SUPERLATIVE SUCCESS THROUGH ITERATIVE EXPERIMENTATION
SYSTEMISE THIS WAY OF THINKING AND 5 PROBLEM SOLVING & SCALE
CELEBRATE AND SHARE GREAT STORIES 6 OF SUCCESS MAKING EVERY- ONE FEEL GREAT
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EES % R O T F
E V H A T DESIGN L U
THINKING E
G
E
GPL WHY WOULD N
G
E
O R
YOU DO IT? A
PORTFOLIOGPL D T
E RE D J BKC 2% 98% COMMERCIAL | RESIDENTIAL
GODREJ EXAMPLES OF DESIGN LED PROJECTS BKC The Trees is GPL’s flagship Godrej BKC is one of final product. The vision project and the first node the company’s marque conceived during concept in Vikhroli’s development commercial projects. design is refined during
Godrej BKC, our Grade A and regeneration. Its Responding to the subsequent design stages commercial asset record- success can be attributed stringent architectural and rigorously evaluated
ed sales of 435,000 SFT in large measure to the controls mandated by on business parameters with a value of 1,479 crore clear and deliberate MMRDA for the Bandra prior to sign offs. A making it the largest ever “ focus on design across Kurla Complex, the large contribution to the “end-user commercial real scales from master building manages to create success of the project was estate transaction in India. At a price of 34,000 per SFT, planning to innovations a sense of place through the invaluable, tangible the project has been able at the dwelling level. The its sensitive architectural and intangible benefits in to command this premium project addresses the and landscaping response. the building design, which basis our focus on design, key principles of identity, An integrated joint effort customers recognized and and project specifications. sustainability, community, between the site team, appreciated. - Royden Braganza and connectivity saving central design and our Head – Commercial 90% of existing trees consultants has ensured sales and leasing, GPL to set up a unique accurate and precise VIKHROLI THE product proposition. An translation of design TREES adaptive reuse project - during execution at site. The Imagine Studio was The approach process delivered to house the involves design and BKC project’s experience engineering working The Trees was GPL’s most centre focusing on the hand-in-hand through an
successful launch in terms walkable mixed-use area intensely collaborative of value of real estate sold
with sales of 862 crore in between buildings. The engagement across the first month alone. The narrative of ‘Imagine various stages and Life in the Trees,’ has milestones to achieve the “launch commanded 1.35 “ times the premium over consistently influenced the base micro-market rates project’s positioning and with the project beating product strategy, visual sluggish real estate market identity, place making, trends to create significant marketing communication, value for the company. and sales strategy. - Anubhav Gupta Business head – Vikhroli
12 13 LET’S TALK // VOLUMEVOLUME 44 LET’S TALK / VOLUME 4 OPPORTUNITY VISION FOCUS ON TECHNICAL DUE PRODUCT DILIGENCE
MASTER PLANNING
DESIGN NARRATIVE
THE IMAGINE STUDIO
LANDSCAPE ARCHITECTURE
ARCHITECTURE
PRODUCT INNOVATION EXPERIENCE
LIGHTING MASTERPLAN
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FOCUS ON EXPERIENCE
THE TREES LAUNCH There are those rare times evangelists. Planning, when - we question how organizing, collaborating, we conduct business; managing and delivering when innovation isn’t timely business results restricted to a function, in such a complex matrix product features or a based primarily on soft singular ‘unique selling influence and people point’; when we break relationships came with boundaries to disrupt and several challenges that unite across differences. helped us do things better The launch of The Trees for our equally successful was one such case residential phase 2 launch. wherein the promise of We were able to achieve a thoughtfully designed path-breaking success product was matched both from a business in equal measure by standpoint as well as how we demonstrated an experiential one as its differentiation to our reported by customers. customers. In prototyping Our first internal town a new approach for hall meeting with the customer engagement, management to share we brought together these insights and the people from teams and small celebrations of our functions across the milestone successes make country to tell stories for endearing stories that about our values, our would warm any heart. spirit as one team, More importantly to close the project and our the loop, this exercise aspirations to create a helped us gain insight that whole new community. as a company we should For the first time at GPL, configure the system key personnel were better to incentivize trained and deployed and operationalize such with full ownership from collective collaboration all business verticals/ quickly when necessary or geographies including perhaps on every project Design, Marketing, Sales, to leverage the best the Customer Centricity, company has to offer. Finance, CMC, Strategy & Planning and HR to interface with the customer as product
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FOCUS ON DELIVERY
CONTINUOUS ENGAGEMENT FOR DELIVERY OF DESIGN Commercial office space With large flexible floor various challenges that - Organized systems DESIGN + ENGINEERING globally has evolved plates, lease depths came up during the protocol for routine 13 CONSULTANTS following new drivers that planned to maximize construction process. meetings, workshops influence the way we natural light, a curated art Some of these ideas and decision making to work today. One of our program and an integrated are now being rolled out ensure full integration, most ambitious projects, landscape strategy, the on projects across the accountability and to avoid 192 WEEKLY COORDINATION CALLS Godrej BKC (Platinum project will be a great country. abortive work rated, Grade A, 1.28 mn. example to demonstrate SFT. Commercial office the power of space as an These include: - Set up systems to 26 WORKSHOPS building) is almost ready effective business tool. - Design leadership/ respond to change for completion. Our focus stewardship on high value management (approvals, has been to create a An integrated and projects through all stages tenant preferences, other INTEGRATED TEAM sustainable icon, which collaborative approach until delivery extraneous parameters) 1 offers world-class spaces, between design, for turnaround solutions in amenities, infrastructure, engineering and - Design supervision record time connectivity and flexibility. construction was in the appointment of Our goal is to increase prototyped to achieve the appropriate vendors to
We have worked as a team for the last 4 user satisfaction and work high quality of product build out key components;
years and together addressed engineering, productivity, and to foster delivery - exceeding sourcing of specification approval and construction concerns in order innovation in the work time, cost and quality materials; mock ups to deliver the ambitious design intent for place. Designed by New benchmarks. Using and finishing; site level “Godrej BKC. This has been such an integrated “ York based Skidmore, principles of design problem solving and effort that we actually lost sight of who was Owings & Merrill LLP thinking we were not only overall quality part of the design, operations or consultant (SOM) in partnership with able to connect the dots teams. We’ve celebrated milestones together the GPL Design Studio, across a complex matrix including several personal stories and also Godrej BKC delivers on of delivery operations; our collective achievements in building a high quality commercial asset in India.” the ‘Success by design’ equally importantly we proposition through were also able to use - Satish Jadhav thoughtful use of space. this mechanism to solve Project head - Godrej BKC
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FOCUS ON DECISION This metric captures the carpet area generated MAKING CA for every 1 SM of FSI LAND TAKE consumed and is a measure of utilization of FSI the development potential of the land parcel. DESIGN METRICS How do you turn design equation and sqft of area that we build. Benchmarking key ratios qualitative design (its the metrics needed This means that there from competition on FSI / FAR benefits and evaluation) to understand critical will be a higher revenue a regular basis would into a quantifiable correlations that impact inflow for GPL, which help further to provide Floor space index (FSI), This metric captures the framework for effective business priorities – is a positive. However, more information for also Floor area ratio (FAR) built area required to be decision-making based on most importantly cost what if it becomes making effective business is the ratio of a building’s CA constructed to achieve business priorities? optimization. prohibitively expensive decisions. total floor area (gross floor 1 SM of carpet area for the consumer and can area) to the size of the and is a measure of the The idea is not to build a Mining robust data was the sales/marketing team In protecting business piece of land upon which BUA efficiency of the design. It formula but a framework the first task across sell such a product at the interests, there is it is built. is dependant on layout of (which could generate regions and projects. desired pace? substantive value in FSI = 2 cores, corridors etc. numerous formulae) Making sense of it in using the ‘Design Ratio wherein parameters can reference to context As a word of caution, Template’ often times be toggled with to arrive and peculiarities (region, Design metrics are not before initiating the design at the desired solution. segment, deal type, meant to be prescriptive to evaluate whether the Think of it like an equation approval environment, or prohibitive set of rules, base assumptions for wherein one could define cultural nuances, salability but intended instead as the project are valid. CA constants and toggle etc.) was the next step. a set of levers that help Reviewing these as the This metric captures the variables to not only get Arriving at a consistent assess the decisions and design process moves Carpet area (CA) is the total built area required the output but also see set of definitions, output trade-offs essential to further towards realizing a net usable floor area to be constructed, which the impact of changing template, measurement iterate design towards viable scheme allows for within a building excluding BUA translates to costs one of the variables on barometer and studies a desired business out business plan numbers to that covered by the incurred, to achieve 1 SM the other. The parameters that demonstrate come. To build institutional be continuously validated. walls or any other areas of saleable area, which in in the design equation critical correlations knowledge and to define a It is however essential to specifically exempted SA turn translates to revenue are deeply interrelated. and interdependencies range spectrum early on in use these tools in getting from floor space index generated. This metric Hence, the idea of Design affecting the top and the design process for key all the key stakeholders on computation per is a proxy for project Metrics was born in the bottom line was the ratios on new projects; the table to take decisions regulation. profitability. GPL Design Studio. most challenging part of a comparative ‘design on project trade offs. The this exercise. Once this barometer’ of all projects team’s recommendation The development promise framework was set up, region wise was set up is to review costs vs. of a land parcel is the prototypical scenarios with rationale for trade- potential for value As any real estate professional would tell you, first thing we need to were introduced to offs (some of which were generation particularly BUA the crux of optimizing Cost of Construction ascertain. Setting up demonstrate the impact informed while others for design related calls
(CoC) lies in optimizing design. If you make the Built up area is the total design more efficient, you reduce the CoC. A consistent definitions of changing 1 percentage that had slipped between especially for the mid/
construction area of the “piece of cake isn’t it? Well, not quite. One can and ratios to map this to point that each of these the cracks for the lack of high-mid segment projects project. make the most cost effective design, but what business was a key part ratios have on the inflow/ data and this exercise) and where there is a lot of good is it, if prospective customers don’t like of the design process outflow for the business. resultant business impact. competition. it and opt for a competitor’s product? Thus “ rolled out across the As a simple example, The idea is to put each what seems a relatively simple problem at country more than 3 years one of the ratios tracked project (once completed) first, is actually a fairly complex one involving ago. More recently and was Saleable Area/Built on this barometer divergent factors, and nuanced tradeoffs. We in collaboration with the Up Area (SA/BUA). If this for future reference. realized pretty early on that what we needed Corporate Strategy team; ratio increases, from say was a mechanism by which we could make these tradeoffs as transparent as possible. with the engagement of 1.10 to 1.15, it means that key stakeholders across we have more 0.05 sft - Jishnu Batabyal GPL and under the aegis more to sell for every 1 General Manager, Corporate Strategy of Project Lakshya, we attempted to set up the
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HOW WE WORK
The GPL Design Studio is based on a highly collaborative co-creation format that has helped create tremendous intellectual property and shared value across geographies, agencies, projects, scales and experiences. From our successes on design led projects, we have found exponential business value delivered as a result of our working format.
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