The property productivity puzzle

Since 1996, the Copenhagen head-quartered Maersk Line has been the world's largest sea container cargo carrier. But the global financial crisis in 2008 hit the container transport world hard, leaving most lines reporting financial difficulties in 2009. Ships were laid up or scrapped.

But a sudden resurgence of demand in 2010 saw Maersk posting record profits. The resultant confidence saw them place a US$1.9 billion order with Daewoo Shipbuilding in South Korea for ten new super containers - The Maersk Triple-E class.

The name “Triple-E” emanates from the three design principles: “Economy of scale, Energy efficient and Environmentally improved.” The design brief was not only for the world's largest ships in service, but also the most efficient.

At 400m long, 59m wide and 73m high, the new vessels are 30% longer than London’s The Shard is tall. But at a mere 3m longer and 4m wider than the predecessor E-class

ships, why invest so much in such a modest change?

The answer is in a redesigned cross-section, adding 2,500 more containers – a “productivity” increase of 16% over the 15,500 capacity E class. In the world of workplace, this is classic densification strategy – more people in less space – a strategy actively pursued by the public sector over the last five years.

But a Triple-E doesn't simply load 18,000 containers at a European port, sail and then offload at an Asian port. The vessel makes 12 port calls on the 25-day trip from Gdansk to South Korea, with containers loaded or discharged at each. In a container-sized Chinese jigsaw puzzle, what happens in one port will impact directly on the efficiency of what happens in the next.

A stowage plan is designed around five factors: safety, flexibility, productivity, cost and optimal intake, with planners continuously trying to reduce inefficiencies.

They must secure the highest possible intake of cargo at each port, but plan for minimal re-stows where containers need moving aside simply to access a trapped one below.

Those drivers of safety, flexibility, productivity, cost and optimal intake sound strikingly similar to those of many corporate and public sector workplace strategy projects. So can these project deliver similar double-digit productivity improvements without following the super container model of stowing more people into less space?

This is the fine line between efficiency and productivity. More people in less space may appear to be a worthy target for financial efficiency improvement, but what if that densification hampers the outputs of the employees accommodated – their personal productivity?

In contrast to the Triple-E’s 16% productivity gain, the Bank of England's latest bulletin says UK productivity remains 16% below pre-

crisis levels. But the Bank’s Governor Mark Carney admits they are at a loss to understand why, referring to as a “productivity puzzle.”

Adding pressure, the International Monetary Fund said poor productivity in the UK was a key risk to our future economic health. But the puzzle is that whilst the UK has seen an improvement in outputs, productivity has failed to rise in tandem and is now well below that of other developed countries - creating a “productivity gap.” British workers now produce about a fifth less for every hour worked than other leading G7 nations.

Could it be that both the public and private sectors have shied from investing in property, hampered both by financial constraints and potential accusations of unnecessary frivolous decorative improvements? Or perhaps that whilst big civic bricks and mortar projects are seen as safer, these signature architect led projects fail to engage in the needs of those

working inside the envelopes?Patently productivity is

not easy to measure across a whole economy. And measuring the productivity of a knowledge or services industry employee is no less painless. But it is possible to ask employees whether or not the environment and infrastructure provided for them enables them to work productively. The response is subjective and undoubtedly susceptible to a number of potential influencing factors, but it is transferrable - as applicable to a healthcare worker as an office worker.

So if the UK central and regional governments are to address the UK “productivity gap,” they must surely lead by example, tackle the prickly subject of public sector productivity and examine and benchmark its own workplace performance. Perhaps then, with leadership and some transparency, leading examples can be held up for commerce to follow?

A briefing on global workplace strategy, management, satisfaction & effectiveness

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So why is government allowing the construction of new buildings when boroughs such as the City of London have experienced a 100% 2 increase in vacancy rates (from 8% to 16%) over 1998 – 2005? MP Matthew Hancock admitted, “Over the last year energy costs have increased by 25%. Carbon reduction measures of the sort recommended by the Westminster Sustainable Business Forum can reduce annual costs by £650,000 for the average public sector organisation.” 2

Leaner and Greener II: Putting Buildings to Work, published in November 2011 identified how financial benefits worth a potential £8 billion could be generated in the public sector by improving workforce productivity. This is achieved by improving workplace conditions and implementing more flexible ways of working, through

reinvesting money saved in rationalising the property portfolio and improving the performance of the retained estate.” 3

Underutilisation in the public sector not only wastes valuable space but also money, time and resources. The private sector demand for data around utilisation in the workplace is at an all time high, but we are yet to see this trend in the public sector.

With budgets tightening and CO2 levels rising, the public sector is under immense pressure to develop efficient workplace strategies. However in order to develop an effective long-term workplace strategy, exact utilisation figures are needed to determine how real estate is actually being used, not guesswork or estimations. Without this hard evidence, real estate rationalisation projects may never get past the business case stage.

Private sector organisations are increasingly looking to access reliable utilisation data that’s fast and straightforward.

So unsurprisingly they have been turning to workplace sensor utilisation technology to help them build effective long-term workplace strategies. But we are yet to see this trend in the public sector. Is the fear of “big brother” observation the obstacle, or perhaps that they would prefer not to know?

Most companies are aware that underutilisation is a problem and usually offer rounded estimates that their buildings are being utilised at around seventy per cent of their design load. However our data typically reveals that it is much likely lower – figures of less than 50% are not uncommon. But the latest and most accurate technology for this purpose is occupancy sensors.

Workplace occupancy sensors eradicate guesswork, collecting one hundred per cent accurate data of how their workspace is being used and so gain a comprehensive

understanding about how well that space is utilised.

Once the collected data has been analysed a new workplace strategy can then be accurately formulated. Many private sector clients find that sensor studies uncover working behaviours that are already highly mobile and that the exact data empowers them to introduce a more structural approach to shared desking.

Workplace utilisation sensor data has been shown to provide vital evidence in transformation projects. If it can increase the efficiency and effectiveness of the way in which we use workplaces, it also has the power to reduce CO2 levels on a global scale, helping us make more efficient cities worldwide.

2 –– Issue 14

The utilisation of public buildings

Opinion | Paul Statham

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Ŗ%HM@MBH@K�ADMDƥSR�VNQSG�@�ONSDMSH@K�a��AHKKHNM�could be generated in the public sector by improving workforce productivity ’

1 According to the Statistics from the Department for Communities & Local Government (DCLG)

2 Matthew Hancock MP, Chair, WSBF inquiry, ‘Leaner and Greener: Putting Buildings to Work’

3 www.policyconnect.org.uk/wsbf/research leaner-and-greener-2-putting-buildings-work

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Beyond the Workplace

Leesman Review –– 3

Opinion | Chris Kane

(M�,@X�SGD�!QHSHRG�(MRSHSTSD�of Facilities Management @MC�SGD�"G@QSDQDC�Institute of Personnel and Development announced SG@S�SGDX�VNTKC�AD�VNQJHMF�together to investigate change in the very nature NE�VNQJ�@MC�SGD�VNQJOK@BD ��

‘Working with CIPD forms part of our strategy of bringing the right people from outside of the FM profession to analyse, debate and challenge the latest thinking that impacts on the world of business, the economy and wider society.’ Gareth Tancred, the BIFM’s CEO.

Full Name Chartered Institute of Personnel and Development

Who do they represent?HR and people development.

Description Working in HR, learning and development, people management and consulting across private businesses and organisations in the public and voluntary sectors.

Member Size130,000+

Date of Formation1913

Full Name The Institute of Chartered Accountants in England and Wales

Who do they represent?Chartered accountants.

Description A person must belong to the ICAEW, ICAS or CAI to hold themselves out as a chartered accountant in the UK.

Member Size142,000+

Date of Formation1880

Full Name Royal Institute of British Architects

Who do they represent?Collective voice of architecture and the built environment.

Description RIBA champions better buildings, communities and the environment through architecture.

Member Size28,000+

Date of Formation1834

Full Name Royal Institution of Chartered Surveyors

Who do they represent?Represent everything professional and ethical in land, property and construction.

Description ,DLADQR�@QD�JMNVM�@R�̂chartered surveyors and are recognised by the designation after their name: MRICS (Member), FRICS (Fellow) and AssocRics (Associate).

Member Size118,000+

Date of Formation1792

Full Name International Facility Management Association

Who do they represent?Facilities management professionals.

Description The world's largest and most widely recognized international association for facility management professional in over 94 countries.

Member Size23,000+

Date of Formation1980

Full Name British Institute of Facilities Management

Who do they represent?Facilities management professionals.

Description Promote excellence and professional standards in facilities management for the ADMDƥS�NE�OQ@BSHSHNMDQR��the economy and society.

Member Size14,500+

Date of Formation1993

Though Chris Kane is keen not to be seen as the catalyst of this union, the energy and experience he has applied is key in the momentum gathered already.

This is all about building a bridge of understanding between the world of people and place. Having attracted a lot of interest, particularly on social media, we have completed plans to bring this topic to life with as many people as possible.

The core proposition is simple: that we need a response to the enormous challenge that trends in the future of work present to organisations. The ‘Big Conversation’ is the centrepiece, designed to fuel a truly collaborative debate.

So we’re talking to anyone who is on that journey and in doing, increase insight and create connections that are both thought provoking and practical. The aim is to enable ongoing collaboration at every

level where previously silos existed. If you want to get involved - whether you’re in the world of place, people or any other ‘tribe’ then search on LinkedIn for ‘Beyond the Workplace Conversation’ or for Twitter use the hashtag #BtWC. You’ll immediately get a sense of the momentum gathered already.

Together we are aiming to

Ş� “Educate” and raise awareness on the megatrends impacting the changing nature of people and places at work.

Ş� “Bring together” a movement of fellow travellers, with open access to everyone on an equal footing with a modicum of structure.

Ş� “Generate” positive ideas and innovative responses EQNL�SGD�BNLLTMHSX�SN�ADMDƥS�NQF@MHR@SHNMR��DLOKNXDDR�and society at large.

Ş� “Co-create” opportunities for collaborative working. A veritable one stop shop for those dealing with the change agenda inside the organisation.

Ş� “Act Upon” the ideas and opportunities sourced and assessed from the ‘Big Conversation’ to deliver positive change in the workplace.

‘The physical workplace is one of many factors in modern management and work that needs to adapt, with business leaders needing to continually innovate and challenge conventional wisdom about what drives performance and engagement.’ Peter Cheese, chief executive, CIPD.

There are numerous professional organisations representing sectors of the “people-place” equation, but whether they can be coerced into a more singular dialogue around the subject, QDL@HMR�SN�AD�RDDM �%QNL�LX�ODQRODBSHUD��SGD�JDX�BNLONMDMS�QDL@HMR�SGD��VNQKC�NE�ƥM@MBD�@MC�DBNMNLHBR�Ŕ�LNUHMF�"%.ŗR��@KNMF�VHSG�SGDHQ�ƥM@MBH@K�L@M@FDQR�@MC�@M@KXRSR��SN�RDD�VNQJOK@BD�@R�@�S@BSHB@K�SNNK�HM�NQF@MHR@SHNM@K�ODQENQL@MBD��MNS�LDQDKX�@�ATQCDMRNLD�CDOKDSHNM�NM�OQNƥSR �tim.oldman@leesmanindex.com

Paul Statham | Founder & CEO | Condeco

/@TK�2S@SG@L�HR�SGD�ENTMCDQ�@MC�"$.�NE�"NMCDBN��RODBH@KHRSR�in the development of room and desk booking software that has revolutionised the way the world’s largest organisations manage their real estate.

paul.statham@condecosoftware.com

Chris Kane | Part time CEO of BBC Commercial Projects

Describing himself as an “instigator, integrator and interpreter,” "GQHR�HR�MNV�SGD�O@QS�SHLD�"$.�NE�!!"�"NLLDQBH@K�/QNIDBSR��leading the delivery phase of the “Smart Value” sale of the BBC’s iconic London landmark Television Centre, whilst also helping shape the new UK National Health Service Property vehicle to deliver quality healthcare environments.

chris@ckassociates.co.uk

also challenged, to make the way people work fit the space rather than the other way round. Staff were asked what they might need private space for, for instance, and answers included having confidential discussions, dealing with an upset employee and leaving private documents out. Sheppard Robson sought to accommodate the first two – but not the third. “That was just outlawed,” laughs Webb.

At the same time as the workspace was being designed, the BBC had to handle the mammoth task of relocating numerous staff from multiple sites, the biggest move in the BBC’s history. For this, they turned to the Met Office, which in 2003 had moved from Bracknell to Exeter.

“It was really interesting, especially as they too use complex technology. But they did it very differently to us; it was a much financially richer move. They gave staff three years, gave them huge flexibility and much more generous relocation allowances. They did it because they didn’t want to lose those skills.

“We didn’t do that – we didn’t have the funds.

The dynamic of what we were doing was also different. We are a 24/7 operation pumping out thousands of hours of programming a month. We had to have clarity: make your decision, decide if you are on board, and come with us or not.”

It was advice, incidentally, that Webb took; unlike her predecessor, Richard Deverell, who declined to relocate, Webb and her husband moved their three children from Surrey to Manchester in 2011.

There have been some well-publicised complaints about the new hub. Some staff complain of feeling isolated, with links into central Manchester poor. There have been high-profile relocation refuseniks, such as presenter Sian Williams.

There have been accusations that politicians and celebrities are less willing to travel to Manchester. And some commentators, admittedly often in right-wing media, have lambasted the entire move as a waste of taxpayer

money. The BBC is a public body that the majority of the population pays for (through the licence fee) and even for the public sector, feelings about it run especially high.

Webb says she appreciates the level of change and subsequent depth of feeling involved in a project of this magnitude. But what ultimately matters is how the new site works, and how happy audiences and staff are. The rest is noise. The latest staff engagement survey revealed that 78 per cent of respondents were happy working at BBC North, and as Webb says with just a hint of resignation: “People will always comment and do what they want to [when it comes to the BBC]. It’s not irrelevant – but it’s not something that we get excited about.”

‘If you are 12 people, we will only give you ��OK@BDR��ADB@TRD�XNT�VHKK�DAA�@MC�ƦNV�@MC� we still want you to use communal spaces.’

4 –– Issue 14

So when the BBC gave the green light to a significant new site in the north of England, one of the first things it did was cast around for similar projects. And it drew a total blank.

“We looked for people but we just couldn’t find them,” recalls Alice Webb, chief operating officer of BBC England. “We looked around for anyone doing something on a similar scale but you could barely count them on one hand.”

From the beginning, it was clear this project was going to be unique.

The decision to create a northern base was taken in summer 2004, when an internal report called Building Public Value addressed criticisms that the BBC was too London-centric by suggesting moving key departments to the north of England. It was then announced in December that BBC Children’s, BBC Learning, BBC Future Media, BBC Radio 5 Live and BBC Sport would make the move.

Not that they had anywhere to move to, or even knew where. It was not until summer 2006 that a preferred bidder

was announced: a proposed development by Peel Holdings, a real estate investment firm, called MediaCityUK located in Salford on the banks of the Manchester Ship Canal. The BBC agreed, in a break with tradition, to rent the site on a 20-year lease; prior to this, the BBC had almost always owned its buildings outright.

It took another year for Salford City Council to grant planning permission and for the BBC, Peel Holdings and BBC Trust – the corporation’s governing body – to reach agreement.

Those protracted deliberations, common to all major projects but especially so in the public sector, meant that work did not begin on the site until June 2007.

Webb says the BBC used that time to establish what it wanted to achieve with the new space. There were five core principles: create a centre for creative excellence in the north; to be highly connected to audiences; to have teams and cultures that perform at the highest level and were recognised for that; to enable flexible and collaborative ways of working; and to be more efficient, effective and sustainable – the BBC may be

a public body, but increasingly the entire sector is expected to behave like private companies with a constant eye on costs.

The next step was how to translate those principles into effective practice. With examples of similar projects scarce, trips were organised to America’s West Coast. Home to some of the world’s most inventive companies, both in terms of product and the ways they work, the BBC visited entertainment giants Pixar and DreamWorks, Google and ESPN, the sports broadcaster.

“The whole sense of what we have created here was influenced by what goes on in the West Coast,” says Webb. “We wanted to understand their dynamics and how they created an efficient yet creative workspace.”

They also sought influences closer to home by asking staff what they needed. Not that they always got their own way, however: “We asked people how many meeting rooms they needed, as an absolute minimum,” recalls Webb. “They said 95, so we built 40. You only need [a meeting room] for something that’s absolutely confidential. Otherwise you should be able to come together in different formats.”

Sheppard Robson, an architecture and interior design firm, was then brought in. “Sheppard Robson was very important in how we set this place up,” insists Webb. “We established core principles that we run this place on today [and] a new operating model as to how we work.

“Sheppard Robson had to work to that. But we then said ‘right, that’s what they are doing now, they are the experts’. You cannot have staff meddling. Instead, we were clear about what we wanted and they had to provide a space that enabled us to do that.”

The overarching concept was to create an open, accessible and flexible space that enabled creative and collaborative ways of working. It was decided that dedicated areas for individual departments would be largely done away with, replaced with fluid spaces that could be used by different teams at different times. Desks would not be

allotted; staff were to be given laptops and mobile phones. Meeting rooms would be scaled back and informal areas, with seating but not desks, increased.

It was important, however, to ensure a sense of identity still existed. “No one owns space in this place, so how do you keep the identity when it’s all Velcro and wheels?” asks Webb.

“Some areas are fixed – we don’t move Radio 5 Live for instance because they are on every day and will be for 20 years.

“But take Rip Off Britain. They’re here for 12 weeks and then they’re gone. So we put up signs, give them a bench, a logo. But the sign is magnetic so as soon as your programme is done, we take it down and then give the space to someone else.

“It’s a different use of space. If you are 12 people, we will only give you 8 places, because you will ebb and flow and we still want you to use communal spaces.”

Working behaviours were

Leesman Review –– 5

Report

Abigail Townsend and Alice WebbFew things are truly NQHFHM@K �2N�HS�HR�Q@QD�VGDM�DLA@QJHMF�NM�@�new building project or QDETQAHRGLDMS�MNS�SN�ƥMC�someone, somewhere, who has done something RHLHK@Q �6GDSGDQ�HS�HR�in the same country or overseas, in the public or private sector, there are normally myriad examples that project managers can use, be it as a template or just to learn EQNL�NSGDQRŗ�LHRS@JDR

By Mark LeftyIn this age of austerity there has been little in the 3QD@RTQX�BNƤDQR�SN�ETMC�SGD�HMEQ@RSQTBSTQD�MDDCDC� to keep the British economy competitive.

Central and local authorities are therefore increasingly relying on private sector money to fund projects. That’s why even the BBC is leasing MediaCityUK from Peel Holdings, when in years gone by it would have spent millions to buy the studios outright.

Using private money for public infrastructure on a large scale is a fairly recent phenomenon.

The Conservatives introduced the Private Finance Initiative (PFI) in the early 1990s, but it was the Labour government of Tony Blair and Gordon Brown that developed the model.

They built or revamped 100 hospitals and swathes of secondary schools across the UK by letting private sector consortia of builders, investors and facilities management companies pay the upfront costs. The Government would then pay an annual charge over @�BNMSQ@BS�NE�@QNTMC����XD@QR�Ŕ�VGHBG��BQHSHBR�@QFTDC��was like selling the family silver and burdened future generations with terrible debts.

By 2011, then Coalition health secretary Andrew Lansley was warning that 60 hospital units caring for a total of 12 million patients were saddled with too much debt because of PFI, and a recent analysis by The Guardian @QFTDC�SG@S�SGD�ƥM@K�BNRS�NE�/%(�VNTKC�SNO�a���AM

But despite PFI being increasingly discredited, the Coalition still needed an infrastructure boom, in large part to replace the jobs being lost in the public sector through the spending cuts. In part, this has involved outsourcing chunks of work traditionally undertaken by the state to contractors like Serco, G4S and Capita; it is estimated that around 70% of probation services could soon be managed by the private sector, and there @QD�OK@MR�SN�G@MC�NUDQ�SGD�a��AM�ATCFDS�@QL�SG@S�ATXR�the military’s missiles and helicopters to private sector companies under a so-called GoCo, or Government-owned, contractor-operated, model.

3GDM�SGDQD�HR�/%� �%HQRS�TMUDHKDC�HM�������HS�CHƤDQR�EQNL�PFI in that the public sector takes a small equity stake in projects. That way, it was argued, the state has greater control and the Treasury could receive a slice of any OQNƥSR�L@CD�VGDM�SGD�OQNIDBS�HR�RNKC

But PF2 has not been a success. A Treasury select BNLLHSSDD�QDONQS�HM�,@QBG�ENTMC�SG@S�řCD@K�ƦNV� has yet to materialise”; put simply, the institutional investors the Government need to get involved remain unconvinced.

Experts argue that to make PF2 work, the Government MDDCR�SN�ATHKC�TO�@�OHODKHMD�NE�OQNIDBSR�Ŕ�ATS�ADB@TRD�PFI, and as a consequence PF2, have such bad names, ministers are reluctant to risk the negative headlines.

.M�SGD�OKTR�RHCD��GNVDUDQ��SGDQD�@QD�LNQD�NOSHNMR�SG@M�ever before when it comes to funding public projects. NHS Foundation Trusts can borrow directly from the markets @S�BGD@ODQ�&NUDQMLDMS�Q@SDR��VGHKD�KD@RHMF�Ŕ�@R�SGD�!!"�CHC�Ŕ�LD@MR�SG@S�@�CD@K�CNDR�MNS�QDPTHQD�@OOQNU@K�NE�SGD�relevant spending department and the Treasury.

As a recent Deloitte report, Form must follow function: implementing new business models in UK public services, argued recently: “Policymakers must embrace a mantra of ‘what matters is what works’.”

,@QJ�+DESKX�HR�@RRNBH@SD�ATRHMDRR�DCHSNQ�ENQ�3GD�(MCDODMCDMS�SHSKDR�@MC�SGD�+NMCNM�$UDMHMF�2S@MC@QC �'D�HR�@KRN�@�ONKHSHB@K�BNQQDRONMCDMS�ENQ�3GD�(MCDODMCDMS�NM�2TMC@X

Public private partnerships

‘We are a 24/7 operation pumping out thousands of hours of programming a month. We had to have clarity: make your decision, decide if you are on board, and come with us or not.’

© G

ordon Bell

The BBC’s Salford hub: key facts

Eight years: time it took to complete the move, from the publication of Building Public Value QDONQS�HM�)TMD������SN�SGD�ƥM@K�QDKNB@SHNM��NE�BBC Breakfast, in April 2012

330,000 square feet: amount of open place NƧBD�@BBNLLNC@SHNM

750:�RS@Ƥ�A@RDC�@S�SGD�!!"ŗR�.WENQC�1N@C� site in Central Manchester who needed to move to Salford

1,500: Posts that needed to move to Salford from London. People relocating ƥKKDC�@QNTMC�G@KE�NE�SGNRD��SGD�QDRS�VDQD� new recruits.

2,500: @OOQNWHL@SD�MTLADQ�NE�RS@Ƥ�MNV� on site

100 million: number of people reached on a weekly basis through Salford’s 24/7 output.

20 per cent: percentage of BBC network production that will be made at Salford

Costs and estimated savings:

£24 million:�@LNTMS�O@HC�NTS�SN�RS@Ƥ�HM�relocation costs

£26.2 million: redundancy costs paid to the 548 employees who did not want to relocate and could not be redeployed elsewhere

£244 million: total gross cost of establishing SGD�2@KENQC�GTA��HMBKTCHMF�a���LHKKHNM�NM�technology

£942 million: estimated lifetime cost of LNUD�SN�2@KENQC��HMBKTCHMF�SGD�a����LHKKHNM� set up costs and 20 years of operating costs

£151 million: savings BBC North is expected SN�CDKHUDQ�NUDQ�SGD�MDWS����XD@QR �.E�SG@S�� a����LHKKHNM�G@R�@KQD@CX�ADDM�HCDMSHƥDC

Building Public Value

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alice.webb@bbc.co.uk

Europe’s largest resource of contemporary workplace performance data

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2010 20122011 2013 2014

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10,000

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60,000

50,000

30,000

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Space between work-settings

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General cleanliness

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Mail & post-room services

Health and safety provisions

Leisure facilities onsite or nearby

Internal signage

Hospitality services

1. Who are Leesman? Europe’s leading and fastest FQNVHMF�HMCDODMCDMS�VNQJOK@BD�DƤDBSHUDMDRR�measurement experts.

2. What makes Leesman ‘independent’? Leesman NƤDQ�MN�BNMRTKS@MBX�RDQUHBDR�Ŕ�ITRS�RS@MC@QCHRDC��DƤDBSHUDMDRR�LD@RTQDLDMS�SNNKR

3. What is the Leesman Index? Leesman’s standardised DƤDBSHUDMDRR�LD@RTQDLDMS�ADMBGL@QJ�SG@S�calculates an ‘Lmi score’ for each workplace.

4. What is the Lmi measuring? The activities people are doing and how the physical features and facilities services provided support them in their work.

��� $UH�WKH�UHVSRQVHV�FRQƩGHQWLDO" Yes, completely anonymous. No response can ever be linked back to an individual respondent.

6. So what will that data show? Exactly and very graphically how well your real estate is supporting the work of your teams in your spaces.

��� $QG�GRHV�WKLV�PHDVXUH�VWDƨ�SURGXFWLYLW\" Not directly, but it does ask whether the design NE�SGD�VNQJOK@BD�DM@AKDR�RS@Ƥ�SN�ŖVNQJ�OQNCTBSHUDKXŗ �

8. What types of organisations are using Leesman? MXNMD�VHSG�RS@Ƥ�NBBTOXHMF�@�VNQJOK@BD�Q@MFHMF�

EQNL�LNSNQ�L@MTE@BSTQDQR��KDF@K�OQ@BSHBDR��ƥM@MBH@K�services, Higher Education institutes, aviation, broadcast media and more.

9. When is best to do a Leesman survey? In truth at any time. But certainly as early as possible in planning a capital project.

10. Can it then be used after a project is complete? Yes, this is a perfect way of measuring the improvements achieved if a survey was also done prior.

11. How many people should be invited to participate? Leesman will help you get as many respondents as ONRRHAKD�Ŕ�HS�G@R�MN�AD@QHMF�NM�SGD�BNRS

Data review The data reported above shows highlights from the aggregated results across the 64,062 individual respondents received at 30th June 2014. These results are provided through the Leesman Index employee workplace satisfaction e-survey, which has been conducted across a range of pre and post occupancy workplace projects as shown.

3GD�RTQUDX�HR�A@RDC�@QNTMC�@�ƥWDC�BNQD�LNCTKD�HM�VGHBG�the questions asked do not vary. This provides us with an unrivalled ability to report and benchmark consistently across SG@S�C@S@�@MC�NƤDQ�U@KT@AKD�HMRHFGS�HMSN�CHƤDQDMBDR�ADSVDDM�any number of variables, including industry type, location, gender, age or length of service.

Ţ 174 surveys across 554 locations Ţ 75% pre-project, 16% post-project, 9% other Ţ 63% average response rateŢ 11 minute average response time

Leesman Index Q+A

The design of my workspace is important to me

It contributes to a sense of community at work

It creates an enjoyable environment to work in

It enables me to work productively

It’s a place I’m proud to bring visitors to

2014 Q2 Data Summary Lmi 59.7Ratings reported from 64,062 respondents surveyed to date. Variance shown from 2014 Q1. Figures represent combined ‘supported, well supported, very well supported’ @BSHUHSHDR�@MC�ŖR@SHRƥDC��GHFGKX�R@SHRƥDCŗ�E@BHKHSHDR�@MC�features listed.

87% 0% Individual routine tasks

78% 0% Individual focused work, desk based

77% 0%Learning from others

73% 0% Informal social interaction

73% 0% Collaborating on focused work

72% 0%Desk

68% 0% Chair

66% +1% (M�NƧBD�MDSVNQJ connectivity

65% +1%Audio conferences

65% +2% Using technical / specialist equipment or materials

64% 0% Collaborating on creative work

64% 0% Individual focused work away from your desk

63% +1% Printing / copying / scanning equipment

63% 0% Informal, un-planned meetings

62% +1%Relaxing / taking a break

60% +2% Hosting visitors, clients or customers

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52% +2%Video conferences

49% +1% !TRHMDRR�BNMƥCDMSH@K� discussions

41% +1% General décor

38% 0%Dividers (between desks / areas)

36% +1% Informal work areas / break-out zones

34% +1% Guest / visitor network access

32% +1%Air quality

29% +1% Noise levels

26% +1% Plants & Greenery

25% 0%Temperature control

25% +1% 5@QHDSX�NE�CHƤDQDMS� types of workspace

24% -1% Quiet rooms for working alone or in pairs

19% 0%Art or photography

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Which activities do you feel are important in your work?

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Disagree Strongly (-3) Disagree (-2) Disagree Slightly (-1) Neutral (0) Agree Slightly (1) Agree (2) Agree Strongly (3)

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total no of respondents

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total no of respondents

0

0

0

6 –– Issue 14 Leesman Review –– 7

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It embarked upon an estate rationalisation programme to reduce its buildings, while taking steps to make its office space more productive and conducive to 21st-century working.

Central to the project was the refurbishment of the main office building, the Civic Centre – a typical 1960s concrete-framed structure with very high rental and running costs. Improvements were essential, both to reduce rising overheads and accommodate the staff and services moving from other buildings scheduled to close. It was also an opportunity to transform the council’s working practices.

A New Ways of Working (NWOW) project team was set up, which had total control of the refurbishment process. One of the team’s key targets was to create opportunities for more flexible working – a big cultural shift for many people in local government.

‘By definition property rationalisation means using less space, but it also means the space has to be used more intelligently,’ explains Janet Boughtwood, NWOW programme manager. ‘We’ve worked with different teams across the council to make sure they have the kind of

space they need to be more effective. Right now they are still becoming used to the changes, but the feedback we are receiving is very positive.’

One big change was the move to agile working and hot-desks, away from the concept of personalised space. However, flexibility was required because of the

differences in the way the various departments worked. For example, the 24-strong street scene team is very mobile, spending much of their time out and about. Other workers are more static.

‘It works better for some teams than others and that is partly due to the services they deliver as much as how their managers react to the new system of agile working,’ explains Boughtwood. ‘Flexibility is at the heart of everything, but we need to work a little harder on the culture within the council. One target in 2014 is to look more closely at how people stack, how they physically use the space in the building.’

Boughtwood’s team is not part of the council’s FM and property teams, but works hand-in-hand with them as well as with ICT, HR and communications. ‘The NWOW project team is almost like a group of consultants,’ she explains. ‘We’re troubleshooters dealing with strategic issues.

We coordinate with the FMs and the property asset management teams as well as everyone else – because to achieve a high-performing workplace you need a cross-disciplinary approach. You cannot just do it with FM. You need support from HR, you need the technical backup from ICT and constant communications support to keep all of the stakeholders engaged and informed.’

When complete, the rationalisation programme will have moved the entire workforce from five buildings into the refurbished Civic Centre. Around 1,300 staff will be working across its

13 floors at any one time, including up to 300 people working for the ALMOs (third-party service providers working for the council).

Immediately after the refurbishment, which was completed in November 2012, the NWOW team undertook a Leesman Index survey, scoring 57.3. Since then the council has seen revenue savings of £526,000 and the Lmi has increased to 67. ‘Now we have hard data that provides an audit for councillors and our public, proving we have created a 21st-century working environment and delivered value,’ says Boughtwood.

8 –– Issue 14 Leesman Review –– 9

‘What we are doing is working. What was a poor working environment is well on the way to becoming a high-performing workplace that other councils want to learn from.’

Southend-on-Sea Borough Council:%ULQJLQJ�ƪH[LELOLW\�to local government

Case study

Faced with pressure SN�L@JD�R@UHMFR�@MC�improve services to the OTAKHB��2NTSGDMC�NM�2D@�!NQNTFG�"NTMBHK�RDS�NTS�SN�OQNUHCD�HSR�RS@Ƥ�VHSG�@�LNQD�DƤDBSHUD��GHFG�ODQENQL@MBD�VNQJHMF�DMUHQNMLDMS �

Recent reports in UK business broadsheet the Financial Times, suggested that central government reformists were experiencing a new coordinated pushback from civil service heavyweights, “exposing simmering tensions over attempts to inject more business-style rigour into the way government operates.”

In a letter seen by the newspaper, three leading government department Permanent Secretaries (the most senior and non-politically aligned civil servants, charged with running the departments on a day-to-day basis), suggest that spending controls being imposed by Francis Maude, the Cabinet Office Minister with responsibility for efficiency and reform, are more “like a holding company dominating its subsidiaries from a corporate centre.”

Maude, standing shoulder to shoulder with Chief Secretary to the Treasury Danny Alexander, rebuffs the accusations, pointing out that they are merely “committed to a model of Government where the centre is effective, smart and challenging.”

These effectiveness improvements cross many areas from IT and consultancy to property. And Maude’s property SWAT team, The Government Property Unit, is clear in its scope and reach: “The GPU works collaboratively across the public sector, acting as a catalyst for change, to create an effective and efficient government estate, which provides value for money for the taxpayer, reduces our environmental impact and enables improvements in the way we work.”

In March 2013, Maude had revealed that £1 billion had been saved since May 2010 through effective property management, estate rationalisation and

selling redundant stock. In June 2013 he set out a vision to create an efficient, fit-for-purpose and sustainable estate that delivers value for money and facilitates modern, flexible

working in its Government’s Estate Strategy, stating “a culture of mobile working and technology must be embraced to enable the public sector workforce to operate remotely to drive efficiency and deliver improvements.”

The GPU’s main objective remains to reduce the number of properties in the central civil estate and to deliver maximum savings and its “The Way We Work” (referred to as TW3) programme is pushing the development of modern workplaces in line with Maude’s Civil Service Reform Plan.

This includes encouraging the large-scale adoption of more agile forms of working, changes in work culture, technology and layout as well as providing more choice of work locations. In practice, this means:

number of settings, not just at a desk

workplace design to increase capacity and reduce costs

efficiently, in any location

arrangements that make it easy, yet safe, to work in a variety of settings

changes that support flexibility, productivity and effectiveness in all work settings

But in this area at least, Central Government has been “smart and challenging” for some time. In 2004, under the modernisation agenda of the previous Labour government, the Office of Government

Commerce published its milestone property statement “Working Without Walls.”

In 2008, a follow-up “Working Beyond Walls” attempted to push boundaries, and central government department thinking, further still. Both documents were intended to forward awareness, within central government and regional operating outposts, of the need to better optimise the “People – Process – Place” equation. Both documents are still referred to in circles where “smart and challenging” are of interest and in many ways are still entirely current.

Both publications were co-authored by the Office of Government Commerce with workplace design and strategy supremoes DEGW and we recently managed to gather four of the original authors to see how those publications had impacted their work. Leesman CEO Tim Oldman quizzed Bridget Hardy, Richard Graham, Tim Allen and Adryan Bell on how both documents had impacted government and on what ground still needed covering.

Q&A Q OK. To what extent

does government really buy into this?A. We are definitely getting there and have successfully moved the topic out of estates

and into transformation and change and business. But these organisational performance benefits are not being exploited as much as they could be – perhaps because government does not traditionally measure itself – and evidencing the benefits can be more difficult. A. I think our work environments are no longer viewed as an inevitable overhead but as a powerful and integral aspect of government business, which, given the right attention and investment, can significantly enhance the effectiveness of public service delivery. But we need to offer more proof.A. The impact of the working environment is subtle, but organisations looking to change and improve must understand its influence and develop their workplaces to exploit and maximise business benefits.A. And whilst we see departments embracing the concept of alternative work settings, they are not yet asking themselves why we need the office in the first place.A. We also see that trying to change behaviours without a physical workplace change is quite hard. It is easier when the daily reminders of the old way of working are removed.

Q So who are the trailblazers?A. The Ministry of Justice is a good example - 18 buildings to four with the ambition being to move to one building. They are talking about commuter hubs and encouraging people to spend at least two days a week away from the office. And they expect employees to try it – to have a go. And it is all backed up by better ICT.A. And the Ministry of Defence. Their drivers were not so much about costs but about workplace effectiveness. That is, a workplace as a tool for “faster better decision making.”

Q Is technology now an enabler in a way I’m guessing it was a barrier in 2004?A. Yes. Cyber security has improved so we can work in new ways you couldn't before, but organisations are still struggling with individual responsibility. But “bring your own” technology is not happening in government. Though this may be that people are more wary of mixing work and personal life.A. The Food Standards Agency have done a fantastic piece of work in terms of IT and environment but struggled to get the leadership engaged on the culture change - even though they had provided all the infrastructure. Culture is a massive challenge.

Q How important is this all in managing and attracting talent – something the public sector is struggling with right now? A. We recognise that our workplaces affect the way we work and the sense of pride and value we feel as individuals and teams. That impacts on our existing employees. But it never seems to be that the government is promoted as an employer of choice. Property is not going to change that in itself, but having spaces that we are proud to say are our places of work, must surely help.A. It’s never going to be easy when graduates are making a value judgment simply on an image. Pictures of Google’s offices say one thing. Describe them simply as a “global tech firm” and it’s wholly less appealing. We can’t compete head on, but I think we should be competing for talent.

Q Working Without Walls reproduced a diagram from the OGC / University of Reading’s “Flexible Working in Central Government: Leveraging

10 –– Issue 14 Leesman Review –– 11

‘a culture of mobile working and technology must be embraced to enable the public sector workforce to operate remotely to drive DƧBHDMBX�@MC�CDKHUDQ�HLOQNUDLDMSRŗ

Feature

Working Without Wires

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the Benefits” document. How far down the evolutionary five stages would you say Government has progressed since 2004?A. When we wrote it, I’m not sure we actually knew what level 5 was or if it was achievable. But most departments are there or very near level 4… or are at least now making good progress towards it.A. And people who thought it couldn't happen, now see it’s happened. They have no choice but to believe it.A. But I think many thought level 4 and 5 would never happen and that we were just too ambitious! But sat here now, there should arguably be a level 6 and perhaps even 7.A. The risk though is that level 6 is ambushed purely for further cost cutting. So we should update the roadmap to be clear that a more efficient space isn't one that costs less, but where better policies can be made faster.A. But it is such a big estate

with such a wide range of jobs. Working Without Walls can’t mean the same across the whole estate. We need to be broader in our understanding of what it actually means. And feel comfortable with it taking different forms.A. Perhaps it should be repackaged as “The way we work” and try and get away from bricks and mortar.

Q But if you have departments at level 4 or perhaps 5, shouldn't you be promoting that as a centre of learning and excellence to commercial organisations who are struggling now? Can’t Government set an example for commerce to follow? A. Not being able to publicise what government is achieving, can be frustrating. But for many inside government there is a perceived risk, partly at least because the results of consolidating an estate from ten buildings to one is almost always a modern, slick,

contemporary new building full of the latest technology. This helps us work in a new, more effective and efficient flexible way, but often struggles to stand up to one-dimensional tabloid scrutiny. They see one lavish building with cafés and comfy sofas. We see ten inefficient buildings replaced by one super efficient one.

Q So is it time for a new publication to set an agenda for the next ten years?A. Yes. What we thought was revolutionary then has now become mainstream. It’s easy to forget how forward looking the books were, or to miss what has been achieved on the back of the questions it raised and the guidance it offered. So yes. Perhaps so.A. The first book was about the physical space, the second about technology so the third one should explore and discuss how people are no longer constrained by physical environments, technology or by culture.

Bridget Hardy Bridget works as a consultant to international public and private sector clients with more than 20 years experience working in corporate real estate in UK central government.

Adryan Bell Presently Regional Lead for Deutsche Bank’s ‘Workplace’ programme across UKMEA for Johnson Controls’. Previously with DEGW, Adryan worked on a wide range NE�OTAKHB�@MC�OQHU@SD�RDBSNQ�OQNIDBSR�Ŕ�ENBTRHMF�NM�SGD�cultural change associated with the transitions to new work environments and new work practices.

Richard Graham 'D@C�NE�6NQJOK@BD�3Q@MRENQL@SHNM�@S�SGD�"@AHMDS�.ƧBD�and Programme Manager for the UK Government’s 3GD�6@X�6D�6NQJ�/QNFQ@LLD��BQD@SHMF�@�ƥSSHMF� VNQJHMF�DMUHQNMLDMS�ENQ�@KK�RS@Ƥ�HM�SGD�"HUHK�2DQUHBD

Tim Allen Now working as Director, Workplace Strategy EME at CBRE Tim has always been park of workplace strategy and change, previously at DEGW, Turner & Townsend and Johnson Controls. ‘Tim was directly involved with many of the projects discussed in the ‘Working without Walls’ book.

)HOLFLW\�6ZDƨHU Workplace consultant with over 10 years experience HM�AQHDƥMF�@MC�RO@BD�L@M@FDLDMS�ENQ�BNQONQ@SD�occupiers, public sector, universities and further education colleges.

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www.civilservice.gov.uk

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Balance specialist ICT requirements for some groups and generic ICT for others

A genuine understanding of the work processes

Provide support and SQ@HMHMF�ENQ�RS@Ƥ�@MC�L@M@FDQR�HM�CHƤDQDMS� work environments

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Worth a closer look

3GD�NOHMHNMR�DWOQDRRDC�AX�BNMSQHATSNQR�QDOQDRDMS�SGNRD�NE�SGD�HMCHUHCT@K�@TSGNQR�@MC�TMKDRR�BKD@QKX�K@ADKKDC�@R�RTBG�CN�MNS�QDOQDRDMS�SGD�NOHMHNMR�NE�+DDRL@M�+SC �3GD�+DDRL@M�1DUHDV�HR�SGD�INTQM@K�NE�+DDRL@M��$TQNODŗR�E@RSDRS�FQNVHMF�QDRNTQBD�NE�BNMRHRSDMS�VNQJOK@BD�DƤDBSHUDMDRR�data and we welcome contributions on the subjects that you think should interest us. Leesman is a registered trademark and all Leesman Review content is Copyright September 2014. Leesman, 5 Wormwood St, London EC2M 1RQ, 00 44 20 3239 5980, info@leesmanindex.com | Design by ricknicholls@mac.com

Sensation: The New Science of Physical Intelligence 3G@KL@�+NADK� Icon Books

An exploration of how physical circumstances OQNENTMCKX�@ƤDBS�NTQ�ITCFLDMSR��DLNSHNMR�@MC�behaviour. Lobel takes us on a trip around the senses, revealing the extent to which our external environment shapes our perceptions and behaviour. “Sensation will change forever the way you think about the psychological impact of the outside world” say the publishers.

Simple: Conquering the Crisis of Complexity K@M�2HDFDK���(QDMD�$SYJNQM��Random House

Siegel and Etzkorn believe in simplicity as a philosophy, and a guiding principle, but have KD@QMDC�ƥQRSG@MC�SG@S�HSŗR�MNS�RHLOKD�SN�L@JD�things simple - it demands a commitment to clarity, honesty, discipline, and intelligence. !TS�SGDX�NƤDQ�SGQDD�BDQS@HMSHDR�����RHLOKHBHSX�works; 2) it is accessible to all of us; and 3) we’ve never needed it more than we do today. Seems simple put like that.

Next issue Human Resource

“Human resources” must surely be one of the most mechanical and unemotional professional titles for the very group of professionals charged with representing the more human side of organisational performance.

But that professionalism is under scrutiny as executive boards and employees both look for a new champion to help and represent them in a deeper understanding of the role of the physical workplace in supporting their personal contribution.

So issue 15 of the Leesman Review will be the “human issue,” and will consider how physical obstacles become productivity barriers and how where these barriers become toxic, they act as contagions that spread negativity and disengagement.

We will also consider the risk of HR professionals writing NƤ�SGD�CDA@SD�@QNTMC�the physical workplace as too complicated and being seduced by a more comfortable discussion around fashionable “wellness” programmes.

Case studies will cover Swedish banking giant Nordea, we will look at our forthcoming research project with the British Council for .ƧBDR�@MC�S@KJ�VHSG�celebrated psychologist and TED contributor Shawn Achor who believes that the “work to be happy” model could be backwards, arguing that it’s actually happiness that inspires productivity.

Comment | Philip Vanhoutte

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More on the web

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The Treasury said it showed government was moving “into the modern age” and would also make “dealing with government more hassle free.”

The change has been reported widely in the UK, but few reports have explained the “how” as opposed to discussing the obvious cost saving “why.” The “how” is the widespread implementation of Automatic Number Plate Recognition: cameras reading number plates and cross-referencing the electronic register of licensed drivers and 35 million UK registered vehicles.

A friend of mine recently took delivery of a new family car. Collecting it, he was pointed by the dealer to the data protection section of the user manual. It was alerting him to the role and function of the “Event Data Recorder.”

For a moment I’ll admit, the idea of my car spying on me made me feel slightly uneasy. But why should I dislike the idea of a car recording data on how it’s used and then making that data available to others at a future date, when the smartphone in my pocket is doing exactly that, almost constantly?

Face it, our smartphones are capturing and transmitting volumes of personal data that just a decade ago would have been unthinkable. And so as we become steadily more agreeable with our

lives being posted online via Facebook and Twitter, or more B2B platforms like LinkedIn, devices are being developed that build web dossiers on user habits.

At Plantronics our audio instruments (headsets) are now also capable of sensing

situations and logging events, providing users and businesses with Contextual Intelligence to support anything from Smarter Meetings to more engaged customer interactions in contact centres.

The proximity of the wearable device to the user gives us a privileged position to capture an array of behavioural data to make sense of the issue at hand, referencing other data captured in the era of Internet of Things.

But the Event Data Recorder hidden under the bonnet of the car is there, aviation black box style, to capture data in the immediate period before what the manual calls “an event.” They of course mean an accident. Data like speed, engine throttle percentage, number of events (i.e. sideswipe followed by a head-on crash). It is there for our “protection”, it says.

The means and protocols for accessing that “private” data after an event are a little

confusing. Is the data mine, or the manufacturers? Or is it my insurers? In the US at least, it is legally protected. Insurers or investigators wanting access to that data post “event” must do so through the courts and a warrant.

But it’s difficult not to feel some degree of suspicion. If it is designed to record the moments immediately prior to an accident, it is also logging your general uneventful driving habits. Habits that are downloadable whenever I drop my car off at the dealer for its regular service. Should I fear or welcome this?

Or could it actually be used to inform and improve the future design of the car? If the manufacturer better understands how I drive the vehicle, and can compare this in-service data to that of thousands of other drivers of the same vehicle, then surely the next iteration of that vehicle could be built around our collective needs.

Amazon has long used algorithms based on your searches and purchases to make product recommendations. Our purchasing history, crunched alongside aggregated social media information, is allowing companies to provide better products and customer service. So could advancements like Event Data Recorders and Automatic Number Plate Recognition ultimately be used in the same way?

This free flowing exchange of data is what the public sector is fast coming

to terms with. Big Data, the Cloud and Open Source are becoming mainstream for us as individuals and much of commerce, but how can the public sector keep pace?

In a recent survey of more than 800 civil servants, probing the top barriers to cloud adoption, 75% say cloud computing benefits are not understood by key stakeholders in their organisation and 51% do not think their department has the technical skills to implement cloud initiatives.

The skills and knowledge gap highlighted raises real concerns about the pace at which governments can progress the adoption of tools designed to improve efficiency and performance.

But public sector administration, both centrally and regionally, will come to recognise that where we the public can be made to feel comfortable sharing our personal data more freely with them, they too could design products, services, and policies better attuned to our needs.

A paperless government

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Super Scenarios

As we pass our 60,000 respondent milestone, you can stay in touch with our data and the debate abound it by subscribing to the Leesman Review digitally or in print at

leesmanindex.com

‘I’ll admit, the idea of my car spying on me makes me feel slightly uneasy ’

Predicting the future and what it holds is risky business and certainly a practice Leesman has always shied from, preferring to stick with insights of today’s challenges instead. But when you have amassed over 70,000 individual

employee views into the role of their workplace in their work, pressure mounts to offer deeper and wider insights.

So we are hosting a series of “Super Scenario” events across Europe that will explore, through

Philip Vanhoutte, 2Q�5/���,#�$,$ �NE�Plantronics and chair of +DDRL@MŗR� CUHRNQX�!N@QC

pvh@leesmanindex.com

SEPTEMBER 25contemporaneous data and open discussion, what scenarios might most challenge property professionals tomorrow.

This mid term view will not be probing what tech innovations will disrupt plans for tomorrow, but instead look at how we can learn from

the deficits of today to help occupiers be better prepared when procuring buildings and environments expected to last to 2025 and beyond.

For more information, or to reserve a place at an event, please mail to

events@leesmanindex.com