The "Dead Zone" isn't just a paranormal television show-it's also that wasted space in your branch that isn't contributing to your ROA. But you can vanquish these vacuums, according to several facilities experts.
"We find dead space when the architect or design/build company draws an office wrong or improperly sized," said Ralph La Macchia, president of the design-build firm La Macchia Group. "The credit union has dead space, but does not notice until it examines its return per square foot. If the member does not value the experience, or if space does not serve the member, it is wasted space."
The best way to deal with dead space: not to create it in the first place, and that takes extensive planning at the outset of designing a facility. But when changing times, conversions, mergers and other factors create wasted space from what had been useful, there are ways to reinvigorate wasted space.
"Make sure, from the very beginning, to create efficiency by design," suggested Tom Lombardo, national director of business development for St. Louis-based Clayco Financial Facilities.
Paul Barrath, Clayco's vice president, said even if a credit union uses another financial institution as a model for its new branch: "their membership might be completely different. A branch has to be designed for a credit union's members. It depends on the city and location. In New York, the desks are crammed in next to each other. In smaller towns, there needs to be more space because people don't want others to know what their business is."
Several experts noted the relatively new emphasis by financial institutions on concepts formerly ignored in their branches: marketing and cross-selling. Tom Auer, vice president of architecture and engineering for St. Louis-based design/build company NewGround, said his firm treats its clients "like retailers."
"We preserve as much space for the selling floor, because that is what is important," he said. "A sporting goods store has everything it wants to sell out on the floor, and it wants its people out on the floor offering assistance. We encourage our financial services provider clients to keep their staff out on the floor, not back in offices."
"Trying to convince people offices are dead space can be a battle," Auer added. "Of course they need space to make phone calls or file papers. With careful planning, we account for every square foot of space and for adjacency-the tellers and the teller work room are next to each other, for example."
Andrew Erd, design architect for DEI in Cincinnati, said he sees an effort to create space for the retail platform. "Maximize the floor space for workers," he said. "It starts with space planning during layout and is site specific-it depends on which retail or merchandising concepts are important to the credit union."
What to do with wasted space depends on several factors, according to Will Klein, senior consultant for KDA Holdings, a design/build firm based in Marietta, Ga. Klein said approximately 80% of KDA's work is with CUs, and all of it is with financial institutions.
"The size of the dead space is important, as is the location," said Klein. "If it is in the corner of the lobby, there are a number of member service-directed functions to take up the dead space."
Possible solutions Klein offered include creating a "kiddie corner" or an "Internet caf?." He said both allow members to stay a little longer and make their lives easier.
"Maybe put in a coffee bar," Klein continued. "This is an opportunity for refreshment, and it gets the member to linger and find out more about the credit union."
For smaller dead spaces, Klein recommends marketing displays. This can range from a stand-up or a brochure rack up to a wall display. "Promote loan offers, or the credit unions SEGs. If it has multiple SEGs, perhaps it could have a rotating promotion, say one group per week."
La Macchia said the key is flexibility. "Introduce an electronics or communication element. Or, promote a sister relationship with another company. In an urban environment, add useful services such as a dry cleaner, a Post Office substation, or a UPS or FedEx drop station. Look at it as another opportunity to draw people to the credit union."
Kim Rittmeier, public relations manager for DEI in Cincinnati, said the firm had a CU client in Tennessee that had only a small amount of space for its branch. The lessons learned are applicable in many instances: "The space was round, so we used every wall for displays."
William Bily, DEI's director of design, also recommended kids areas, coffee stations, technology centers or financial information libraries.
"These all are services members may consider an additional convenience that can be added so as to not waste available space. Some of these fixtures can be combined to save space," he added.
Sometimes, said La Macchia, there isn't anything a CU can do about wasted space-if it is in the back or otherwise in an area it doesn't want members to visit. In this case, he advised: "Just turn it into storage, or maybe lockers for the staff."
