Agility @ Work: adopting the corporate six pack

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This report sets out to predict the future of work. It presents six trends or forces that are reshaping work, and in turn allowing companies to change the way they organise work. These external forces are: demography, culture, technology, sustainability, transport and property. Together they not only comprise the key overheads of a business, but also the drivers of change that no company can ignore if it is to get into shape as the world emerges from recession. About Regus: http://www.regus.com/?utm_campaign=slideshare

Text of Agility @ Work: adopting the corporate six pack

AGILITY @ Workadopting the corporate six pack

UNWIRED RESEARCH

by Mark Dixon and Philip Ross

AGILITY @ Work The impact of six forces on the way we work

UNWIRED Research Unwired Ventures Ltd, 2010 All Rights Reserved 2

CONTENTS

EXECUTIVE SUMMARY 3

THE CHANGING NATURE OF WORK 5 NEW WAYS OF WORKING 6 SPACE TO WORK 7 THIRD SPACE 8 NEW WAYS OF WORKING CASE STUDIES 9

6 FORCES RE-SHAPING WORK 13 REAL ESTATE 13 CULTURE and WORKSTYLE 14 PEOPLE 15 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) 17 TRANSPORT 21 SUSTAINABILITY 22 SIX PACK FIT FOR BUSINESS? 23

CONCLUSIONS 24 ACTIVITY BASED WORKING (ABW) 24 INNOVATION AT WORK 25 FLEXING SPACE 25

WHERE NEXT? 26

APPENDICES 27 Our Research 27 About the Authors 27 Philip Ross 27 Mark Dixon 27 About Unwired 28 About Regus 28

AGILITY @ Work The impact of six forces on the way we work

UNWIRED Research Unwired Ventures Ltd, 2010 All Rights Reserved 3

This report sets out to predict the future of work. It presents six trends or forces that are reshaping work, and in turn allowing companies to change the way they organise work. These external forces are: demography, culture, technology, sustainability, transport and property. Together they not only comprise the key overheads of a business, but also the drivers of change that no company can ignore if it is to get into shape as the world emerges from recession.

That shape is a corporate six pack - a new way of structuring work, based on a new set of assumptions and an understanding of new opportunities. This can be achieved through the adoption of new approaches to workplace provision such as activity based working and a new view of a polycentric city.

We believe that these six drivers will reshape organisations in the tennies to be fitter, and leaner the six pack for the corporation that provides a much lower cost base for work. We have looked at the cost of work a measure of the overhead required today to allow a person to be productive. For a leading, blue chip organisation this is anywhere between $19,000 and $22,000, at the moment per person per annum in a capital city. The target for some companies is now under $7,000, achieved through innovation, mobility and the adoption of new workstyles.

New technology will have a dramatic affect on how and where work is done. We present the key drivers and enablers of change, for both small and medium sized businesses as well as multi-national enterprises. Trends such as accelerating the adoption of mobility, virtual workplace portals and the migration to cloud computing will see a gradual transition to empty or thin office buildings, devoid of all technology.

This research not only looks at evidence based on case studies from early adopters of radical workstyles across the globe. It also discusses issues with leading heads of real estate from global companies to understand their thinking, concerns and aspirations for the new world of work.

What is clear is that work is rapidly becoming something we do, and not a place we go to. Mantras such as work on the pause, or management by results show that supervision and presenteeism are giving way to trust and empowerment. People will in the future be increasingly free to choose their work/place.

This has a big impact on sustainability. Two of the key contributors of carbon emissions are commercial buildings and commuting to those buildings. Both can be challenged by changing patterns and places of work.

But there is still a gap in the provision of places to work on the pause. This report will look at early examples of third spaces and discuss the growth needed to accommodate an increasingly agile workforce. We predict a new network (both virtual and physical) that in effect becomes the office. This hub and spoke approach will be crucial, as multiple locations in a city give rise to consolidation, and continued transport congestion make movement around a city a continuing issue immobility in the city will lead to a growth in the demand for multi-centric working.

Work will no longer be about a building, a dumb container, to which people commute and which houses the corporations infrastructure, data, technology and files. Work is now permeable the boundaries are blurring and there are better, more efficient places to house technology and data. The future is being redefined.

This future will result in corporations leasing less real estate. As they emerge from recession, fit corporations that have adopted six-pack thinking will be able to achieve growth in headcount without taking on additional square feet.

EXECUTIVE SUMMARY

Time Magazine

AGILITY @ Work The impact of six forces on the way we work

UNWIRED Research Unwired Ventures Ltd, 2010 All Rights Reserved 4

Actions for achieving a corporate six pack:

1 Real Estate Review workplace strategy and introduce activity based working and mobility. Gather data on utilisation rates and real cost of occupancy as well as churn costs. Create an aspirational vision for new workstyles.

2 Culture Introduce change management to prepare people for new workstyles. Move from management by supervision to a results based approach. Identify champions for innovation and change.

3 People Understand demographics and profile the workforce to identify the needs of different groups by age, job function and psychometric analysis. Engage with the workforce to develop opportunities for change.

4 Technology Identify key drivers and enablers of change. Then align technology to the real estate strategy and introduce the appropriate tools for new workstyles.

5 Transport Realisation that continued stress in transport corridors will require a new approach to commuting and mobility, and the adoption of polycentric thinking.

6 Sustainability Reduced quantity of commercial real estate leased, together with better management of property assets, reduced commuting and greener technology will allow targets to be met.

AGILITY @ Work The impact of six forces on the way we work

UNWIRED Research Unwired Ventures Ltd, 2010 All Rights Reserved 5

For over one hundred and twenty years our workplace - the office - has been dominated by fixed technology. From the Remington Typewriter and Bells telephone in the 1880s to IBMs PC in the 1980s, there has always been heavy equipment on desks that has tethered down the office worker. The growth of the networked computer has resulted in an intelligent office building, engineered to house, power and cool the servers and switches that create the network, process and store corporate data. And a complex industry has grown up to house this connected real estate, from raised access flooring to cable managed systems furniture.

But you can look back into the mid-1800s at a pre-IT era when the workplace had no technology at all. Clerks with pens at simple desks or benches were the predominant model. And we believe that we are heading back to an under-engineered, technologically sparse workplace environment, at least in the eyes of the user or occupant. As the Financial Times stated: Fifty years ago computers were absent from office life In 50 years time things will be much the same. There will be no machines on our desktops.1

As well as heavy, personal desktop technology, paper and personal files have tied the worker to his or her desk. People store many linear meters of paper and filing each, at or near their desk. In many workplaces, between 15 and 17 % of floor space is given over to storage, and the paperless office has yet to materialise. Yes much is about to change and challenge not the use of paper but the need to file and store it. Digital flow, new display technology, tablets and ebooks will all reduce the half life of paper.

Allocating one person to one desk or office has been the predominant approach to organising work, clustering people by department in a building that represents the static

corporate hierarchy. The office has reflected status and power, not role and function. But it has also represented stability and certainty, and for the company inflexibility and sloth. Change was difficult, expensive and slow.

But this approach to workplace is increasingly redundant. Most people no longer sit behind desks all day carrying out repetitive tasks. In fact research shows that the majority of desks, typically 55%+, in an average office are empty at any one point in time. More and more work is collaborative, and people spend more time working with others. Having a telephone extension number that represents a piece of furniture or a room is archaic in an age of fast communications.

And while desks are usually empty, research shows2 that you can never find a meeting room. Space for teams, projects, M&As, pitches or war rooms are needed but not available. The types of spaces that people will demand for the types of work undertaken in buildings are changing.

When people do find a room for a team session, the barriers to collaboration and connectivity are extreme. Complexity to get people onto a network, sharing resources such as a printer or projector are substantial in most workplaces today. And for non-employees with so-called alien devices it can be difficult or impossible to connect and use peripherals such as printers.

Now, with the introduction of mobile, portable technology and the ability to communicate across distance at little or no cost, many of the fundamental rules of office life will be challenged. There is something significant happening to the