INTRODUCTION TO ART FORCE AND EVIDENCE BASED DESIGN Several market studies have concluded that the returns on fine art compares favorably to Market Indexes such as the S&P 500. CNBC Alternative Investing, October 2010 The positive opinion of the EBD process is encouraging. Many recent studies have examined how physical environment can influence wellbeing, promote healing, relieve patient pain and stress, and also reduce medical errors, infections and falls. Design Research Survey, by Ellen Taylor; Healthcare Design Magazine, January 2012 One of the biggest reasons EBD is working is the positive impact it can provide an organization seeking to leverage art to help optimize performance, confront adversity and/or manage organizational change. Research and common sense tell us that the condition of an organization’s work place has a big effect on employee morale and ultimately productivity. 2003 survey by the Business Committee for the Arts Inc. and the International Association for Professional Art Advisors. A compilation of selected studies providing data supporting the integration of evidence based design in healthcare and business environments TABLE OF CONTENTS Letter from the President Page 2 Section 1: Introduction to Corporate Art Force History Page 3 Return on Investment Page 4 Risks Factors Page 6 Risk Management Page 6 Categories of Investment Returns: Page 7 Section 2: Evidence Based Design What is Evidence Based Design? Page 8 Why is Evidence Based Design Important? Page 9 How do you actually use Evidence Based Design Work? Page 13 Acknowledgements Page 15 1|Page LETTER FROM THE PRESIDENT Thank you for the opportunity to introduce Art Force. We hope you are enlightened by our unique perspective in approaching artwork as a valuable asset to your organization. Located in the heart of the Northeast Minneapolis Arts District, Art Force has a mission “To be the Premier Provider of Artwork Services”. Our primary focus is to help our clients optimize their artwork program so that it perfectly aligns with their organization’s culture and brand, while providing them with centralized control over how they are perceived by customers or patients, employees and the general public. We believe art has the potential for attractive Intrinsic Returns on Investment. Over the past several years we have developed and implemented a comprehensive art management program, which we call the SmartArt Program™. Our Certified Art Consultants have been specially trained to guide clients through the SmartArt process. With SmartArt we: thoroughly evaluate our clients existing art program and potential artwork needs, design a custom art program, based upon those unique uncovered needs, that would incorporate key strategies like art re-distribution, rotation and exchange, inventory tracking and maintenance; and finally, execute the program, offer finance options and provide ongoing reviews and evaluations. We provide our clients with a standardized logistical process necessary to select, procure, frame, deliver and install artwork in their facility, so that they can stay focused on their core competencies. Our hope is that in the following pages you will learn more about our philosophy and how we can have a positive impact on your organization. Sincerely, Bill William Kieger President Corporate Art Force 2|Page SECTION 1 INTRODUCTION TO CORPORATE ART FORCE HISTORY Art Force was formed in September of 2009 during depths of the “Great Recession”. During our formative years we asked our employees and partners to participate in a survey to select our tagline. The survey results concluded that our tagline should be “The Premier Provider of Artwork Services”. We believe artwork is an asset that when matched to an organization’s mission, brand and objectives provides both an intrinsic and a potential real return on investment (ROI). We are located in the heart of the Northeast Minneapolis Minnesota Arts District and are currently the #1 arts based employer in the Twin Cities metropolitan area. Since our formation we’ve delivered more than 28,000 pieces of artwork to more than 150 clients in 42 states. We are the originators of the SmartArt Program™, “The Smartest Way to Manage Your Art Assets”; a comprehensive artwork management program that helps our clients plan, implement, and continually evaluate the effectiveness of their artwork, throughout the complete life cycle of the art. The markets we serve include Enterprise Organizations, Healthcare, Small and Medium Size Organizations and Educational Institutions. At Art Force, we share the belief that when carefully selected, framed and installed, artwork has the ability to serve many valuable functions that far exceed decoration. An organization’s environment is a reflection of who they are and what they value. Our team is comprised of the most qualified individuals in the industry, possessing an appropriate blend of creative and business process skills. All of our Art Consultants are enrolled in our proprietary Certification Program that includes an internal curriculum of art education and principles of business consulting. External continuing education is also required to maintain the Certification. 3|Page RETURN ON INVESTMENT – (Including content from CNBC ALTERNATIVE INVESTING – October 2010) Corporate Art Force maintains an ROI philosophy when working with our clients. The return on your investment may be intrinsic or real. Our belief, based on evidence based design studies (EBD), is that an organization has an opportunity to optimize their wall space by aligning what is placed on their walls with their mission, objectives and brand. The intrinsic value of artwork includes the outcomes of what people consciously and subconsciously experience when they are exposed to what is strategically selected and displayed in front of them. Intrinsic Returns - Evidence Based Design (EBD) Studies - Increased employee productivity - Improved brand impression and customer awareness - Improved healthcare outcomes EBD Optimization Illustration High Impact Low Impact Productivity Brand Outcomes Copyright 2013 Corporate Art Force. LLC C 4|Page Our research also suggests that artwork has a longer lifespan than other business investments including furniture and equipment. In any organization there exists a “Hierarchy of Needs”. A traditional business requires desks, chairs, telephone equipment, computers, etc. in order to function properly. Most of those items will have minimal residual value after 10 years. Historically, both original fine art and decorative art will hold its value better and longer than furniture and equipment. 10 Year Residual Value Comparisons 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Furniture Equipment Artwork Copyright 2013 Corporate Art Force, LLC Several market studies have concluded that the returns on fine art compares favorably to Market Indexes such as the S&P 500. For the ten-years ended July 2010, the price index of all fine art work sold more than once worldwide has produced a nearly 11 percent annualized return, outperforming the Standard & Poor’s 500 index of large cap stocks and most other asset classes, including bonds and commodities—though gold was the clear frontrunner during those years, according to artprice.com in France, which tracks the market. Despite the economic slump, strong recent sales of Impressionist and modern art pieces in 2010 similarly pushed the Mei Moses “All Art Index” to a 13.4-percent gain for the first half of the year, compared to a 6.5 percent loss for the S&P 500 index, according to artasanasset.com, which maintains the index. Over the longer term, the Mei Moses Fine Art Index of repeat art sales at the leading auction houses and the S&P 500 produced roughly equal compound annual returns over the last 50 years. Indeed, investment-grade art enjoys a low correlation with other asset classes, including stocks and bonds, strengthening its case as a candidate for portfolio diversification. And some maintain art can act as an inflation hedge, since “real assets” (like gold) tend to rise in value while the value of money falls. 5|Page Risks Factors To begin with, art is a volatile asset. It’s hard to tell when demand for a certain genre will suddenly surge or dry up. After a ten-year run, for example, in which Chinese contemporary art saw prices rise more than 500 percent and Indian contemporary art enjoyed a 700 percent gain, prices for works in both categories then fell by 30 percent in 2008 and 2009, according to Art price. Art is far less liquid than other financial assets, making it harder to sell in a pinch. Lastly, keep in mind that indexes which track repeat sales are somewhat skewed because they include only art pieces that already have an established following. Risk Management According to Artprice, some 70 percent of all artwork sold at auction between January 2008 and June 2009 was priced at $5,000 or less. During that same period, “affordable” art priced below $5,000 gained 60 percent in value, while higher end pieces gained a staggering 150 percent. “It is important to educate yourself on the forces affecting the art market overall, and the niche you’re hoping to pursue”, says Paul Provost, senior vice president, director of trusts and estates at Christie’s auction house in New York. “The art market is made up of a series of micro markets and each one moves in accordance with its own dynamic,” he says. Mr. Provost explains further that American furniture and decorative folk art, for example, have a different demand cycle than, say, classical antiquities, impressionist paintings or post war contemporary pieces. “It’s the same with investing in the stock market,” says Provost. “You have to drill down to the issues surrounding large-cap, mid-cap and small-cap stocks along with the different sectors. You’re not just going to say, ‘I want to invest.’” 6|Page CATEGORIES OF INVESTMENT RETURNS - Original Fine Art - More Expensive/Lower Investment Risk - Emerging Artists Creations - Less Expensive/Higher Investment Risk Asset Allocation Catagories Cash Real Estate Original Art Artwork Bonds Emerging Art Stocks Copyright 2013 Corporate Art Force, LLC 7|Page SECTION 2 CORPORATE ART FORCE: GUIDE TO EVIDENCE BASED DESIGN WHAT IS EVIDENCE BASED DESIGN? Evidence-based design (EBD) is a field of study that emphasizes the importance of using credible data in order to influence the design process. Evidence-based design is a relatively new field of study which borrows terminology and ideas from several disciplines including Environmental Psychology, Architecture, Neuroscience and Behavioral Economics. Over the past 10 years, EBD has emerged within healthcare delivery as a scientific response to questions about how the built environment impacts patient, staff and resource outcomes. During this timeframe, EBD inquiries have exponentially exploded in the wake of the Institute of Medicine’s benchmark studies on the quality and safety of healthcare delivery in America. The approach has become popular in Healthcare Architecture in an effort to improve patient and staff well-being, patient healing process, stress reduction and safety. Because of the recession, both operationally and strategically, business has changed. Some of the major challenges for business’s today are team building, talent development and retention, leadership and full scale organizational development. Early evidence demonstrates that the use of EBD can positively impact these issues. According to the Third Annual Design Research Survey, by Ellen Taylor, AIA, MBA, EDAC, 82% of 1,300 study respondents indicated some use of the research, while 72% indicated regular use of the EBD process. Only 3% acknowledged that they were not familiar with the term EBD and just 2% of respondents indicated not knowing about research on how the design features of the built environment could improve outcomes. 8|Page WHY IS EVIDENCE BASED DESIGN IMPORTANT? Because early indication is that it works! Even in a weak economy, the positive opinion of the EBD process is encouraging. Many recent studies have examined how physical environment can influence well-being, promote healing, relieve patient pain and stress, and also reduce medical errors, infections and falls. Many hospitals are adopting elements of evidence-based design in new constructions, expansions or re-modeling. It is a process used by architects, interior designers, facility managers, and others in the planning, design, and construction of commercial buildings. An evidence-based designer, together with an informed client, makes decisions based on the best information available from research, from project evaluations, and from evidence gathered from the operations of the client. Personal Opinions of EBD Improves OUTCOMES…………………………………………. 97.9% Informed DECISION-MAKING…………………………….. 97.0% Improves QUALITY OF LIFE in healthcare…………… 95.6% Improves SAFETY……………………………………………….. 94.8% USING FEATURES supported by research…………. 90.2% A FORWARD THINKING trend…………………………… 87.8% REDUCES COST over the life cycle.……………………. 80.2% PRESERVES INTENT in value engineering………….. 81.3% Using HYPOTHESIS & MEASUREMENT………………. 78.3% COMPETITIVE ADVANTAGE……………………………….. 77.9% A DEFINED PROCESS of outlined steps………………. 56.2% More IMPORTANT during a weak economy………. 50.3% A passing FAD……………………………………………………… 8.4% Just meets an RFP REQUIREMENT……………………... 6.2% A WASTE of money………………………………………........ 1.2% SOURCE: "Are you using EBD" by Ellen Taylor, Dec 1 2011. 9|Page Everyone has an intuitive knowledge of the relationship between colors and emotions. Colors influence mood. And sunlight has a number of positive effects. It provides people with Vitamin D, and has even been shown to ward off depression. But can it make us smarter or more productive? Evidence points to yes. Students who are fortunate to be in a school classroom with large windows and skylights perform better on tests than those in rooms with very little natural light — between 7 percent and 18 percent better, according to research conducted more than a decade ago in the Day lighting in Schools study, administered by the Pacific Gas and Electric Co. This study also demonstrated that test scores go up even higher if the windows are operable. This is valuable information for an interior designer or architect hired to create an educational facility, which could potentially improve both teaching and learning, as well as the productivity of the space and client satisfaction. Evidence can be a powerful tool used to inform designers’ and architects’ decisions. Traditionally associated with healthcare architecture, evidence-based design (EBD) is making inroads into being part of the process for designing schools, office spaces, hotels, restaurants, museums, prisons and even residences. In short, EBD is when decisions about physical space are based on research and data. “EBD took hold in hospital design because of the existing evidence-based medicine culture,” says David Watkins, FAIA, Founding Principal of Houston-based WHR Architects, and co-author of EvidenceBased Design for Multiple Building Types (2008). Watkins suggests that EBD, less formally, already occurs in designing other building types. “We use facts to inform our designs,” he states, noting that rational experience, building codes and guidelines, as well as existing practices, such as post-occupancy evaluations, all provide designers with solid information that directs design decisions. His goal, through authorship and his practice, is to make it apparent that EBD cuts across all aspects of building design, and he pushes for a cultural shift in industry thinking, to include EBD as part of design services. In his book, Watkins defines EBD as “a process for the conscientious, explicit, and judicious use of current best evidence from research and practice in making critical decisions, together with an informed client, about the design of each individual project.” Watkins aims to broaden the healthcare-focused definition to include all building types and built environments. It makes sense that EBD has its roots in healthcare, where lives are at stake and legal implications are palpable, outcomes are fragile, and decisions need to be justified by hard data. Watkins says; however, that this need for justification is becoming more commonplace in most other building designs. “Clients take risks when they make decisions, often having to defend their decisions to a board or their supervisors,” he says. It then trickles down, where the building professionals are held to a higher accountability for their design solutions. 10 | P a g e Critical thinking is required to develop an appropriate solution to the design problem; the pool of information will rarely offer a precise fit with a client's unique situation; and therefore, research that is specific to the project's objectives is almost always required. In the last analysis, though, an evidencebased design should result in demonstrated improvements in the organization's outcomes, economic performance, productivity, customer satisfaction, and cultural measures. The process is being adopted across various corporate segments, but has gain the most significant momentum in health-care and complementary fields. The positive effect is shown from the patients and families, which have higher-quality stays; physicians, who practice based on medical evidence and the business-minded administrators, who prove this, would reduce costs and improve organizational effectiveness. However, it is applicable to many types of commercial building projects, but is uniquely suited to healthcare because of the unusually high stakes and the financial and clinical outcomes that can be impacted by the built environment. The building itself can help to reduce the stress experienced by patients, their families, and the teams caring for them. The healthcare environment is a work environment for the staff, a healing environment for patients and families, a business environment for the provision of healthcare, and a cultural environment for the organization to fulfill its mission and vision. Evidence Based Design and the Changing Face of the Business Workplace One of the biggest reasons EBD is working is the positive impact it can provide an organization seeking to leverage art to help optimize performance, confront adversity and/or manage organizational change. Research and common sense tell us that the condition of an organization’s work place has a big effect on employee morale and ultimately productivity. And the pressure from the economy isn’t making it any easier. In today’s marketplace businesses are facing big human capital challenges, and the quality of their office environment has become a major pawn in the game of retaining or recruiting talent. 11 | P a g e Workplace change can’t happen fast enough for some. Sir Stuart Lipton, CEO of Stanhope, the developer behind Chiswick Park, Broadgate, Stockley Park and other schemes, including the Treasury Building in Whitehall, counsels patience: 'Government is becoming more aware of good architecture and there's a focus on outcomes, not just output. A more holistic approach is emerging, centered on light, art, diversions, break-out spaces, landscaping and all the things that make us feel good at work. Generally, I'm not surprised by the overall willingness of managers to trade other perks for a more productive, more communal, less stressful work environment. We're working harder and longer. We want it to be more enjoyable, more fun.' A survey of over 800 employees working for 32 companies that currently display art within the workplace has revealed that it can be a valuable business asset: 78% of employees surveyed agreed workplace art helps reduce stress. 94% agreed it enhances the work environment. 84% agreed it was evidence of their employer's interest in improving the quality of life in and out of the workplace. 64% agreed it increases creativity and productivity. 67% agreed it enhances morale. 82% indicated that art is important in the work environment. 73% wanted more art in their workplace, claiming it helps make them feel more 'motivated' and 'inspired. SOURCE: 2003 survey by the Business Committee for the Arts Inc. and the International Association for Professional Art Advisors. 12 | P a g e HOW DO YOU ACTUALLY USE EBD? Although there are many different templates for application of Evidence Based Design, most practical use of EBD is divided into four sequential phases: (1) REVIEWING existing research literature to select significant findings and recommendations; (2) MATCHING referenced findings with data gathered from site visits, surveys results, subject matter experts; (3) PREDICTING the outcomes of design decisions; and (4) TRACKING the positive outcomes for design implementation. Traditionally, evidence-based design has been used to measure the efficacy of a building design applied for the measuring of the efficacy of a building design; it is typically carried out at the post-construction stage as a part of a Post-Occupancy Evaluation (POE). POE evidences the effectiveness or the weaknesses of design decisions in relation to human behavior in built environment. Usually questions concern issues such as acoustics, odor control, vibration, lighting, ser-friendliness, and so on, and are binary-choice (acceptable or not acceptable). Other research techniques, such as direct observation, photography, checklists, interviews, direct surveys and focus groups are utilized to supplement traditional design research methods. Several assessment tools have been developed by The Center for Health Design and by *The Picker Institute, to help healthcare managers and designers in gathering information on consumer's needs, assessing their satisfaction and measuring quality improvements. These tools are commonly used in EBD practices and can be downloaded from the CHD web site. Patient Environmental Checklist is addressed to patient and is useful to assess an existing facility's strong and weak points. Specific environment features are evaluated by patients and their families through a 5-point scale. Checklist quickly shows which areas need to be improved. Patient Survey’s purpose is to achieve information on patients' experiences with the built environment. Questions range is wide, since patients' priorities may be very different from those of administrators or designers. Focus Groups with consumers are oriented to learn more about their specific needs and generate ideas for future solutions. 13 | P a g e The”White Paper (series 3/5)”,written by The Center for Health Design, identifies ten strategies to help decision making, according to EBD practices. 1. Start with problems: identify the problems the project is trying to solve and for which the facility design plays an important role. For example: adding or upgrading technology, expanding services to meet growing market demand, replacing aging infrastructure. 2. Use an integrated multidisciplinary approach with consistent senior involvement, ensuring that everyone with problem-solving tools is included. It is essential stimulate synergy between different community to maximize efforts, outcomes and interchanges. 3. Maintain a patient-and-family-centered approach: patient and family experience are keys to define aims and to assess outcomes efficacy. 4. Focus on financial operating impacts, getting past the paralysis of first-cost, exploring the costeffectiveness of design options over time and considering multiyear returns of investment. 5. Apply disciplined participation and criteria management. These processes uses decision-making tools such as SWOT analysis, analytic hierarchy processes, and decision trees that can also be used in design processes, particularly for critical technical aspects, such as structural, fire safety, or energy design. 6. Establish quantitative criteria linked to incentives in order to increase motivation of the team design through the definition of measurable outcomes and to involve end users through checklists, surveys, simulations. 7. Use strategic partnerships to accelerate innovation, in order to create innovative new products using hospital staff expertise and leverage. 8. Support and demand simulation and testing assuming the patient’s perspective through making lighting, energy, and other kinds of models; and computer visualizations. 9. Use a lifecycle perspective (30–50 years), from the strategic planning to the sustainment, especially to explore the lifecycle return on investment of design strategies as they impact safety and work-force outcomes. 10. Over communicate: positive outcomes are closely linked to the involvement of clinical staff and community members; it can be reached by attending meetings, sending out newsletters, creating Web cams, and other tools. 14 | P a g e ACKNOWLEDGEMENTS (1) MT Workplace Satisfaction Survey; Jeremy Myerson, June 1, 2003. (2) 2003 survey by the Business Committee for the Arts Inc. and the International Association for Professional Art Advisors. (3) Article: Does the Emotional Context Influence the Recollection of Color? By Stephane Rusinek; PsyArt, January 2004. (4) White Paper: Evidence Based Design: Application in the MHS. By Eileen Malone, August 1, 2007. (5) White Paper: The Value of Art-Based Initiatives During a Recession. By Joanne South; Art & Business; July 2009. (6) Article: The Future of Evidence Based Design. By David Whitemyer; Perspective Spring 2010. (7) Design Research Survey, by Ellen Taylor; Healthcare Design Magazine; January 2012. (8) Wikipedia, the free encyclopedia. Contact Information: Corporate Art Force, LLC DBA Art Force 1400 Van Buren St. NE Minneapolis, MN 55413 Phone.763.567.2200 www.ArtForce.org 15 | P a g e
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