DWire OCCo Presentation Handout

Workplace StrategyCurrent Status- Future Trends

Five Components of Workplace Strategy

Process : Work process, technology interface, collaboration

Structure : Management/organisational structure, business units, technology infrastructure, culture

Strategy : Brand strategy, change management & workplace transformation, business strategy

People : Demographics, motivation, retention & hiring, HR policies

Rewards : Understanding how employees value workplace as compensation

„Star Model‟ for effectiveness - Jay Galbraith 1995

Designing Organisations: An Executive Briefing on Strategy, Structure and Process

A Strategy is a long term plan of action designed to achieve a goal.

Workplace Strategy – A Definition

Workplace Design should be :

- maximising the use of space and minimising costs

- providing accommodation to suit the business

- enhancing productivity/performance

- an enabler of cultural change

- a manifestation of the ‘brand’

“Common definition shows a limited and cost-focused perspective.”

Arnold Craig Levin, Design Management Review, Spring 2007


Workplace Strategy - Design

Workplace Design

Post WW II – „Modernism‟ – form followed function

1980’s – „Post-modernism‟ – design form took precedence over function

1990’s – Workplace Strategy was a backlash

Primary driver was reduction in Real Estate costs.

Space planning and strategy were separated from design.

Perceived value was only in the business case. Then came…..

Universal Planning - structured space planning to increase density and save costs.Judged by…..

Benchmarking - m2 per person and % usage as a tool for judging financial success.

2004-2009 +/- Workplace Strategists provide the way to combine the brief and design

concept.


Workplace Strategy – A History

Workplace Strategy should align with the enterprise drivers :

Process Driven :

1. Educate & Assess

2. Build the Business Case

3. Design the Plan

4. Implement

5. Monitor for Continuous Success

Property related costs are second only to Salaries and Benefits

CoreNet Global Leader Magazine Jan/Feb 2008

Written by Debra Moritz & Sarah Evans: Jones Lang LaSalle


Workplace Strategy – Process

NIA - New

56%

19%

5%

20%

Open plan

Cellular

Meeting Support

Secondary Circulation

10,058

m2

2,759 m2

243 m2

5,910 m2

Total Net Internal Area – 18,970 m2

3,714 m2

887 m2

3,536 m2

10,833

m2

Total Net Internal Area – 18,970 m2

By re-planning the space more efficiently and taking down walls to increase the open plan area, secondary circulation was reduced from 31% to 20%.

Source: Project ABN Amro


Universal Planning – Example Space Saving by Increasing Density

Food

Service

Additional

Support

Meeting

Space

Floor

Support

NIA per

occupant*

for Support

Space

* m2/occupant

~3.9 m²

~15%

~31%

~46%

~8%

Europe

~3.0 m²

~20%

~25%

~50%

~5%

BE

~4.7 m²

~8%

~19%

~67%

~6%

UK

~4.6 m²

~10%

~24%

~56%

~10%

Worldwide

~3.5 m²

~23%

~36%

~32%

~9%

NL

~6.2 m²

~6%

~23%

~65%

~6%

US

28.01.2005

Example Benchmarking

Source: Gensler Project ING


Workplace Trends – Mid/Back Office Actual Support Space Comparison

Existing

43%24%

22%

7%4%

Alternative Office0%

4%

33%

22%

Status Quo0%

4%

31%

22%

Loss Factor

MD’s/Directors

Workplace

Shared Facilities

Circulation

Legend

43%

41%Source: Gensler


Workplace Trends – Emerging Trends and Findings USA 2006

Alternative Work Strategies (AWS)

- Distributed Work Options- teleworker, mobile, remote

- Satellites – hubs for touchdown & unassigned desks

- Move to Mobility- term currently used for unassigned workplaces

- Kantoorinnovatie – NL GBA 1997 definition for working from multiple places

- Change of Use – buildings other than office buildings

An average week =Working at your desk 52% of the timeInternal meetings or interacting with colleagues 28%

External meetings 12%Travelling 8% Source: Gensler


Workplace Strategy – 2008

Innovation comes not from discovering

something wholly new,

but from putting elements together in a

wholly new way.

Planning approach

Alternative workspace is a concept that provides a flexible working

environment designed to match the needs of modern business and can be

interpreted in many different ways.

Increases meeting space:

Breakout

Meeting room

Presentation room

Private lounge

Video conference

Think tank

Provides alternative work settings for different types of activities:

Project space

Teaming areas

Lounge

Think tank

Increases capacity of the floor without downsizing the individual workstation:

Communal meeting spaces

Quiet rooms

Project space

Flexible meeting / office spaces/ rooms

Provides space for visitors to work and collaborate:

Visitor touchdown

Study office

Quiet room

Source: Gensler Project ABN Amro


Workplace Strategy – Current Status 2005

NIA Philips

30%

15-20%10%

40%

NIA (Europe)13%

53%

16%

18%

Closed Offices

Open plan

Common Support

Primary Circulation

WORK PERFORMANCE

Companies create open plan environments to promote teamwork, communication,

and innovation. Breaking down the walls decreases the perceived and real hierarchy

in a traditional, entitlement based environment. It also helps to promote greater

interaction between employees, encouraging more chance encounters and informal

discussions. The trend is toward more collaborative spaces and as the number of

traditional worksettings decrease, the amount of support space and alternative

worksettings increases.

TRADITIONAL OFFICE ENVIRONMENT

INNOVATIVE OFFICE ENVIRONMENT

Enclosed spaces

Open spaces

Common Support

Primary Circulation

NIA (World)19%

46%

19%

16%

Closed Offices

Open plan

Common Support

Primary Circulation

TRADITIONAL OFFICE ENVIRONMENT

Source: Gensler Project Toyota


Workplace Strategy – Distribution of Space 2005

350 desks

in 5250 m2

350 fixed desks

@ 1:1

350 HC supported

@density of 15m2

Per HC/Deskcount

No shared desks

Traditional Office

Desk Sharing - Mobile /Assigned – How does it Work?


Workplace Strategy – Spaceless Growth

Desk Sharing

350 desks

in 5250 m2

100 fixed desks

@1:1

250 shared desks

@1:1.6 per desk

100 people 400 people

500 people supported @ density of 15m2

per desk and utilisation of 1:1.4

Desk Sharing/Seat Capacity – How does it Work?



Desk Sharing

350 desks

in 5250 m2

100 fixed desks

@1:1

250 shared desks

@1:1.6 per desk

100 people 400 people

500 people supported @ density of 15m2

per desk and utilisation of 1:1.4

1575m2 Common

Areas

in 5250 m2

150 alternative

Worksettings &

100 meeting spaces

100 HC supported

@density of 15m2

Per HC/Deskcount

400 HC sharing

desks

@1:1.6

650 seat capacity = 728 people supported

@ utilisation of 1:1.2

Seat Capacity

The objective of Spaceless Growth is to sign a lease and by means of forecasted growth remain in the

same space, giving predictability of RE Costs over the period of the lease – but what’s holding it back?

- Management practices slow to change

- Local regulations & employees unions – risk averse

- Nature of the building stock – investment outweighs the benefits

- Demands for Sustainability – CO2 footprint

- Sector/National differences in culture- current style of workplace design

Mental Health problems are having a huge impact in the workplace. Study of 30,000 employees by

CIPD in UK shows increasing numbers are taking time off for depression and stress. Source: Independent 2007

But what is the future?

Home, once the shelter from the stress of work, will merge with the rest of the places we work in.



Computers

1955- 1975 people shared them

1975-1995 one to one relationship (desk bound)

1995- 20?? many computers to one person (laptops & wireless)

IBM - eMobility saves hundreds of millions of $ every year in Real Estate costs

Source: Workplace Trends Conference 2004

Cisco - 37/40% savings in RE with employees on the road 20% of the time

Source: CoreNet Global Summit

Capital 1 – „Future of Work‟ – AWS - 24/31% reduction in the speed of decision making

Source: Joel Ratekin, Ratekin Consulting

Office of the future requires thinking in terms of space and time…not desks and chairs, Martha O‟Mara “Strategy & Place” DW Distributed Work 2005


Workplace Strategy – Impact of Technology

Some thoughts: Technology = enablers = freedom = control = creativity

The workplace will be both virtual and geographical

Workplace will become an increasingly important place for self-realisation

We will demand original surroundings that stimulate creativity & innovation

We will take an individual role in creating our own space for work

Architecture will become more & more transparent, interior and exterior will merge

Growth will be achieved by taking a holistic approach, embracing social responsibility as well as

economics and technology

The challenge for Real Estate professionals is to adapt to managing flexible environments in the

portfolio, for IT to manage the virtual workplace and for HR to accept a greater responsibility for

reaching out to individuals.

“Collaboration will happen on an astronomical scale- teams will number in thousands or even millions

providing capability. It will challenge our most deep rooted assumptions about how to do business,”

Don Tapscott & Anthony D. Williams, “Wikinomics – How Mass Collaboration Changes Everything”


Workplace Strategy – Future Trends

The Original Creative Co-op covers all aspects of WorkPlace and the Future of Work, including but not

limited to, Workplace Strategy/Design, Cultural Mapping, Future Trends, Change Management,

Building Analysis, and Strategic Profiling. OCCo includes other trade names associated with diversified

but connected activities such as research initiatives, speaking at International events, organizing and

facilitating workshops, think tanks, and development of consulting tools.

All material copyright protected Original Creative Co-op B.V.

This handout is a shortened version of the presentation given to DWIRE (Dutch Women in Real Estate) May 2008.

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DWire OCCo Presentation Handout