Part Two DESIGNING THE WORKPLACE EXPERIENCE · occupier’s overall real estate portfolio strategy. With that established, an occupier can focus on the design of the workplace and

Better Business Performance Through Better Workplace Performance

A CBRE Thought Series

Part Two

DESIGNINGTHE WORKPLACE EXPERIENCE

2 © 2016 CBRE, Inc.

Better Business Performance Through Better Workplace PerformancePart Two: Designing the Workplace ExperienceEXECUTIVE SUMMARY

THE EVOLVING WORKPLACE

WHY CHANGE YOUR WORKPLACE?

WHAT MAKES FOR A GREAT WORK EXPERIENCE?

FOUR STEPS TO CREATING A WORK DESTINATION

TOWARD A BETTER WORKPLACE

Work is constantly changing. Consider how differently you perform your daily tasks today as

compared to even five years ago. But modern workplaces have not adapted at a pace equal

to technology, and the inability of real estate to keep pace is prompting many occupiers to

think differently about how they plan and allocate their space.

Attracting and retaining talent, driving greater collaboration and productivity, and improving

business agility are all top drivers of workplace change. Once the right market for talent is

identified, the focus must turn to creating an environment where that talent can feel engaged

and thrive.

Many things go into making “the office” so much more than the physical space one sits in.

These include everything from the conference room technology to the services available to

employees to help balance personal and professional demands. The extent to which such

factors are considered in workplace design can help create a great work experience.

Creating an optimal workplace is a four-step process: Know your users and what they need to

be effective; see your office as the center of a network of places where work gets done; meet

your people’s basic functional needs first; and, design for delight. When you are committed to

designing a workplace that creates competitive advantage for your organization, you need to

challenge the status quo.

It is essential to analyze the path to an informed workplace strategy. Lead with your vision.

Gain commitment from key stakeholders. Take a user-centered approach to understanding

what your people need. Address the experience, not just the place. Accelerate your cycle of

investments. Finally, experiment, adapt, repeat. This process is most successful when it is led

from the top and recognized for what it is: a tremendous organizational transformation effort.

As we discuss in the first paper in this thought series, the starting point for any discussion around workplace performance is labor and

location selection. In addition to being a core element of any organization’s business strategy, talent needs to be a keystone in an

occupier’s overall real estate portfolio strategy.

With that established, an occupier can focus on the design of the workplace and reimagining how the office functions. The

technological and social changes that have redefined how work gets done demand a rethinking of how we accommodate our

employees and design an optimal workplace experience.

3 © 2016 CBRE, Inc.

Better Business Performance Through Better Workplace PerformancePart Two: Designing the Workplace Experience

Work is constantly changing. Consider how

differently you perform your daily tasks

today as compared to even five years ago.

Driven largely by the rapid advancement

of technologies that seamlessly integrate

into our lives and enable us to do things

smarter and faster, each new breakthrough

redefines how we communicate and share

information, changes the hours we work,

and expands the number of places from

which work can be done.

Modern workplaces, however, have been

a bit slower to evolve: In the course of a

10-year lease, it is likely that the technology

that enables our work will materially change

two, maybe three, times.

Occupiers coming to the end of their

lease term in 2017 likely made decisions

about their current work environment

before the release of the first iPhone in

2007, which fundamentally changed how

we consume information.

The inability of real estate to keep pace

with changes in technology is prompting

many to think differently about how they

plan and allocate their space. The smartest

organizations are no longer thinking of their

real estate as a “necessary evil,” but instead

as a dynamic and flexible asset capable of

driving business performance.

Today they are asking: “What will happen

when employees no longer need laptops?”

“How will the cloud affect our business

model?” “What resources will people need

as service becomes more app-driven and

on-demand?” “What will the role of the

office be in the future?”

THE EVOLVING WORKPLACE

4 © 2016 CBRE, Inc.


The smartest organizations are no longer thinking of their real estate as a “necessary evil,” but

instead as a dynamic and flexible asset capable of driving

business performance.

5 © 2016 CBRE, Inc.


“You don’t change your workplace purely

for the sake of change—or because others

are doing it,” says Georgia Collins, who

co-leads CBRE’s Workplace practice in the

U.S. “You change because you’re trying to

push your business in a new direction, to

attract and retain talent, to better reach and

serve your customers, to speed up your time

to market. Whatever it is, there’s a behavior

or work-process change, and the smart

companies are leveraging their workplaces

as a catalyst to drive that shift.”

Today, the attraction and retention of

talent, and the desire to drive better

collaboration, increase employee

productivity and improve business

agility, are the top drivers of workplace

change, in addition to cost savings.1 In

the Americas, the attraction and retention

of talent and better collaboration rank

higher than cost savings on the agendas

of corporate real estate executives.

WHY CHANGE YOUR WORKPLACE?

6 © 2016 CBRE, Inc.


“You don’t change your workplace purely for the sake of

change. You change because you’re trying to push your

business in a new direction, to attract and retain a different kind of talent, to better reach and serve your customers, to

speed up your time to market.” —Georgia Collins, U.S. Co-lead, Workplace Practice, CBRE

7 © 2016 CBRE, Inc.


MAIN DRIVERS OF WORKPLACE STRATEGY ARE GLOBALLY CONSISTENTReflects the main drivers of workplace strategy globally in green bars, and top three regionally in multi-color markings

Source: CBRE Global Occupier Survey, 2015/16.

Productivity Agility Employee Attraction

and Retention49%

Better Collaboration 55%

60

50

70

40

30

20

10

0

Global Americas EMEA Asia Pacific

Cost Savings49%

Increased Employee

43%

Business

35%

8 © 2016 CBRE, Inc.


As we discuss in the first paper in our thought series, finding the

right market for that talent is critical—along with other strategic

factors such as client reach, supply chain proximity and, yes,

cost. But once you have found it, the focus shifts to creating an

environment where that talent can thrive. And in this regard,

employers often look to employee engagement as a benchmark.

There is good reason for that focus: Gallup2 reports that

companies with highly engaged workforces outperform their

peers by 147 percent.

But driving engagement is not easy. Despite the fact that most

executives rate engagement as a top priority, engagement scores

across the globe are relatively low. According to a widely cited

2014 study by Gallup,3 only 31.5 percent of U.S. employees

are engaged at work. In a similar study of the global workforce,

Towers Watson found that while a slightly higher 40 percent of

employees are highly engaged, a full 60 percent of them lack

the elements required to be highly engaged. Of that 60 percent,

close to a quarter are disengaged and another 36 percent can be

described as either unsupported or detached.4

While there are many factors that impact employee engagement—

clear expectations, company culture, connectivity to managers

and leaders, mentorship and training—there are many instances

where real estate decisions can and should have an impact, such

as on productivity.

“There are any number of things that actually steal productivity

from employees,” says Karen Ellzey, executive managing director

for Global Workplace Solutions at CBRE. For instance, “How much

time do employees spend commuting? How long does it take

them to resolve a technology issue? How quickly can employees

find a place to work in a free-address workplace? How readily

available are conference rooms? Does the AV work? If we put as

much effort into removing known barriers to productivity as we do

trying to measure it, we begin to find real, tangible opportunities.”

36%Percentage that feels unsupported or detached

from workplace engagement

24%Percentage that feels fully disengaged

Is the global workforce disengaged?

Source: 2012 Global Workforce Study, Towers Watson, 2012.

9 © 2016 CBRE, Inc.


“There are any number of things that actually steal

productivity from employees. If we put as much effort into removing known barriers to

productivity as we do trying to measure it, we begin to find

real, tangible opportunities.” —Karen Ellzey, Executive Managing Director,

Global Workplace Solutions, CBRE

10 © 2016 CBRE, Inc.


IS SMALLER BETTER? IN PURSUIT OF GREATER EFFICIENCIES

“Given the uncertain economy and tighter budget constraints, the workplace is actually viewed as an opportunity by most organizations to optimize on space and costs,” says Singapore-based Arpan Barua, a director in CBRE’s Advisory & Transaction Services business. “In Asia, where workplaces are usually high density already, the ability to lever activity-based working has enabled companies to optimize space.”

These cost savings are often the result of driving investments out of the things people no longer need—larger offices and cubicles, inflexible policies, antiquated conferencing technology—and into the things they place higher value on, including better services, agile work environments and policies, and user-centric technologies.

“Efficiency, while often a goal, is rarely a headline driver for change. By embracing the idea that the office exists as one in a network of places where work gets done, companies are reducing the footprint they pay for while giving their people more flexibility to work from just about anywhere,” says Lenny Beaudoin, co-lead of CBRE’s Workplace practice in the U.S.

“By embracing the idea that the office exists as one in a network of places

where work gets done, companies are reducing the footprint they pay for while

giving their people more flexibility to work from just about anywhere.”

—Lenny Beaudoin, U.S. Co-lead, Workplace Practice, CBRE

11 © 2016 CBRE, Inc.


Consider your typical workday: What

separates a good day from a bad one?

Is your commute easy or painful? How long

does it take to get through security? Are you

greeted by name when you walk through the

door? When you have a meeting, how long

does it take to get connected? When you

need to speak to someone, can you easily

find her? When it is time for lunch, is it easy

to quickly grab a good meal? When your

computer malfunctions, is it easily fixed? Do

you have time to think between meetings?

While many of these things may seem minor

and inconsequential alone, when

aggregated they can make, or break, how

you feel about work on a daily basis. This is

why “the office” is so much more than the

physical space you sit in.

WHAT MAKES FOR A GREAT WORK EXPERIENCE?

12 © 2016 CBRE, Inc.


“When we talk about designing a total work experience,” says

Lewis Beck, who leads CBRE’s Workplace practice in EMEA, “we’re

talking about much more than space. We’re focusing on all the

attributes that impact how work gets done: where, when and how

people focus, how employees develop relationships and build

networks, how people connect across locations and time zones,

and how well the environment helps them balance the personal

and professional demands on their time.”

“At least half of the workforce spends more than 50 percent of their

waking hours at work,” says Julie Whelan, who heads Americas

occupier research for CBRE. “Our work environments should be

places that connect our personal and professional personas as

well as support and improve our well-being.”

“Our work environments

should be places that connect our

personal and professional

personas as well as support and improve our well-being.”

—Julie Whelan, Head, Americas Occupier Research, CBRE

“The office” is so much more than

the physical space you sit in.

13 © 2016 CBRE, Inc.


THE GIFT OF TIME (AND WHY HAVING AN OFFICE DOESN’T GUARANTEE THAT YOU’LL BE ABLE TO FOCUS)

“People often cite the need for focus and concentration as a rationale for why they need an office, but the mere presence of four walls and a door doesn’t usually solve this problem,” says Georgia Collins.

“Sometimes it is finding the time to focus that is the problem.”

In a 2014 Harvard Business Review article,5 researchers Michael Mankins, Chris Brahm and Greg Caimi argued that organizations waste tens of thousands of hours on email, instant messaging applications and ineffective meetings annually. “It’s hard to know exactly how much of this squandered time could be rescued,” they wrote. “But our data suggest that most companies have an opportunity to liberate at least 20 percent of their collective hours by bringing greater discipline to time management.”

This research lends strong credibility to Collins’ argument that helping people manage their time more effectively might be the best route to increasing productivity. But that doesn’t mean you should do away with all of your enclosed space and switch to 100 percent open plan.

“Having enclosed space that is acoustically sound should be a staple in every office. But it should be available to everyone, not just the top 10 to 20 percent of the organization,” says Nina Charnotskaia, director and research lead in CBRE’s Workplace practice. “We need to attack this problem from all angles, providing the space, time and optimal conditions for people to focus.”

“Having enclosed space that is acoustically sound should be a staple

in every office. But it should be available to everyone.”

—Nina Charnotskaia, Director and Research Lead, Workplace Practice, CBRE

14 © 2016 CBRE, Inc.


So, what goes into creating an optimal

workplace experience—making the office

a destination that people prefer over

other alternatives? We believe it is a four-

step process:

1. Know your users and what they

need to be effective.

Fundamental to the idea of creating

workplaces that attract people is

understanding the people themselves.

Today, that often equates to understanding

the millennials, who, according to the Pew

Research Center, are currently the largest

contingent of the U.S. labor force at 53.5

percent. In 2014 alone, companies spent

$70 million on generational consulting, with

much of this investment focused on analyzing

the demands of the millennial employee.6

However, a 2014 CBRE study7 that looked at

more than 5,500 professionals found that

“variety, choice, access and transparency—

preferences typically associated with

millennials—are equally important to

Generation Xers and Baby Boomers.”

This year, CBRE delved into this question

further, surveying nearly 7,000 of our own

staff across the globe to understand life and

work preferences.8 The results reaffirmed

the previous finding that generational

preferences vary minimally, but also

showed that compensation, business

ethics, HR policy, learning opportunities

FOUR STEPS TO CREATING A WORK DESTINATION

15 © 2016 CBRE, Inc.


and organizational culture were the most important workplace

variables in driving new job selection across all generations.

A life-stage indicator drove the one significant variance:

Respondents with younger children placed higher value on flexible

work policies. In fact, the presence of children in the household was

a consistent differentiator for both work and lifestyle preferences,

reinforcing the importance of considering life stages when defining

a work experience that supports employee engagement.

As more organizations begin to track performance measures

such as engagement, social networks and employee happiness,

corporate real estate leaders are being asked to develop solutions

to improve culture and connectivity, well-being and flexibility in

the workplace. Of note: In a recent CBRE well-being report,9

91 percent of commercial real estate leaders surveyed said

they expect the level of CRE engagement in health and wellness

initiatives in organizations to increase.

2.Seeyourofficeasthecenterofanetworkofplaces

where work gets done.

As technology increases our ability to work from anywhere, many

organizations are embracing the idea that the office is just one in

a network of places where work can be done effectively.

Effective flexibility programs give employees greater control of

their time and signal that their employers trust them to make good

decisions—a signature element of engagement.10 They also offer

organizations a means of reducing the amount of underutilized

space in the office. Instead of designing for peak demand, many

are targeting average demand.

But that doesn’t mean you should plan for fewer people in the

office. A Harvard Business Review report on managing across

distances11 finds that 95 percent of people surveyed see in-person

meetings as key to building long-term relationships, and that

only 20 percent believe you can achieve the same results through

virtual connections as you would in person. Connections are easier

to forge and maintain face-to-face. The office can accelerate, or

inhibit, establishing and maintaining these relationships.

As more organizations are

tracking performance

measures such as engagement, social

networks and employee

happiness, corporate real

estate leaders are being asked to

develop solutions to improve culture and connectivity,

well-being and flexibility in the

workplace.

16 © 2016 CBRE, Inc.


“Even when employees have choices in where they work, they will come to the office

more, not less, if you make the office the most effective place to

connect with others and get their work done.”

—Lenny Beaudoin, U.S. Co-lead, Workplace Practice, CBRE

17 © 2016 CBRE, Inc.


“The importance of face-to-face interaction is especially prevalent

in Asia,” says Peter Andrew, Workplace practice lead in Asia

Pacific for CBRE, “which means that there are not as many

telecommuting programs. Homes are also smaller, and the quality

of work-from-home arrangements isn’t as good as in other parts

of the world. That puts even greater pressure on making the office

a great destination.”

“Even when employees have choices in where they work,” says

Beaudoin, “they will come to the office more, not less, if you make

the office the most effective place to connect with others and get

their work done.”

3.Meetyourpeople’sbasicfunctionalneedsfirst.

A workplace has to meet your people’s basic functional

demands before any higher-order benefits can be achieved.

Many organizations jump to implementing an all open-plan

environment in an attempt to foster communication, but fail

to meet the need for focus. The result is often an environment

that neither meets the aspirational goal of collaboration nor the

practical goal of helping employees be productive.

“Great workplaces address a hierarchy of needs for their users.

Like Maslow’s hierarchy,12 these start with the foundational

elements we all need to be productive at work,” offers Beaudoin.

“Elements we think are non-negotiables for the future include:

access to a wide variety of spaces that appeal to different

work patterns and preferences, seamless technology, support

of well-being, and the ability to easily find information and

access other people.” CBRE, for instance, offers up to 14 or 15

distinctly different work choices through its Workplace360 work

environment—compared to three to four work settings in a more

traditional environment.

The case for choice

In the last 40 to 50 years, most offices were designed with private

offices for managers, cubicles for everyone else and a smattering

of conference rooms. While this allocation of space may reflect

the hierarchy of the organization, it does little to address the

functional requirements of those in it.

Most knowledge workers, regardless of function or seniority, spend

roughly half of their time working autonomously, and the other

half working with others face-to-face or remotely. An office that

acknowledges this reality should offer a greater variety of space

types—both enclosed and open—and give everyone access to

both, so that people have easy access to both collaborative and

private, quiet spaces.

Technology with purpose

People can take advantage of the variety of spaces a more

progressive workplace offers only if they have the technology

to seamlessly move between them. They are also more likely to

communicate virtually if it doesn’t take the first 10 minutes of

each meeting to connect. When provisioning a workspace for

functionality, technology should be consistent (Does this docking

station or conference room monitor work like the others do?),

relevant (Does this technology help me do my job better or faster?)

and intuitive to use (Can I connect without assistance?).

Looks good, feels good

In a 2007 Harvard Business Review article, Tony Schwartz and

Catherine McCarthy argued that “the core problem with working

longer hours is that time is a finite resource. Energy is a different

story … [it] can be systematically expanded and regularly renewed

by establishing specific rituals—behaviors that are intentionally

practiced.” It is no surprise then that health and well-being in the

workplace has become a hot topic in corporate real estate circles

in recent years.

As reported in a recent CBRE survey, eight out of 10 employees

agreed that a company’s wellness offering would be crucial to

recruiting and retaining them in the next 10 years. Furthermore,

47 percent of organizations surveyed by CBRE report13 that

wellness initiatives improved employee engagement, and 25

percent reported an increase in employee retention.

A place where everyone knows your name

“When you ask people why they come to work, by and large their

first answer is, ‘I come to see other people. I come to be present

with my colleagues,’” says Collins. “And while that doesn’t mean

that people spend their entire work day collaborating, it does

18 © 2016 CBRE, Inc.


mean that having physical proximity to others who can help

move something forward by providing feedback, direction and

perspective is hugely valuable.

This reality puts pressure on the office to be a social place where

people can get to know one another, build their internal network,

and easily find the people they need when they need them. It

translates to workspaces that promote transparency (read:

more glass, lower panels), connectivity (internal stairways and

centralized support services) and community (spaces and events

that promote socialization and knowledge exchange).

4. Design for delight: building on the foundation.

Leading organizations recognize that their workplace investment is an

opportunity to differentiate—to go beyond the common and expected

and use their space as a way to create competitive advantage.

By connecting closely to the culture and brand of the organization,

the work experience goes beyond meeting the fundamental

needs of employees, and begins to facilitate an experience that is

unique to the company. “This is more than posted slogans or walls

painted in corporate colors. Cosmetic features of that nature do

no harm, but seldom influence behavior,” says Beaudoin. “Rather,

by more intrinsically reflecting what you value through design,

services and policies, you create an environment that becomes

a catalyst for the culture you want to encourage at work.” And,

you help build a sense of pride among your employees for their

organization and their workplace.

When it comes to creating a comprehensive workplace experience,

the key consideration is how an organization can drive the specific

behaviors and connectivity that allow its greatest asset, its people,

to thrive at work.

Take, for example, the young professional balancing family and

career. Today, there are more dual-income-earning households

than in any previous decade. In the U.S., 60 percent of children

live in a home where both parents work at least part time, up from

25 percent in 1960.14 In many households, this means that more

of the household responsibilities are shared by both parents.

19%reduction in absenteeism

25%increase in employee retention

47%jump in employee engagement

Benefits of wellness

Source: What’s Trending in Health and Wellness Best Practices in the Corporate Workplace?, CBRE Research, May 2016.

19 © 2016 CBRE, Inc.


“As organizations look to attract and retain high

performers—women and men both—they will be well served

to consider how they help those struggling to balance

professional and personal demands. What can the

workplace offer that helps to strip more of the administrative tasks out of their work day and

their personal time?”—Georgia Collins, U.S. Co-lead, Workplace Practice, CBRE

20 © 2016 CBRE, Inc.


“As organizations look to attract and retain high performers—

women and men both—they will be well served to consider how

they help those struggling to balance professional and personal

demands,” says Collins. “What can the workplace offer that helps

to strip more of the administrative tasks out of their work day and

their personal time?”

In a world of endless possibilities, how can we make real an

intangible “culture of worth?” Ashley Branca, experience services

lead within CBRE’s Workplace practice, advocates a forward-

thinking hospitality approach to tackle the challenges of daily work

and “to aid in the personal needs of employees struggling with the

blurred lines between work and life.”

In CBRE’s own Workplace360 offices, a concierge’s responsibilities

go beyond the expected reception services to include support that

tackles the real-life responsibilities of employees. This may range

from managing groceries and dry-cleaning, to arranging car

detailing, to picking up a gift for a friend—all things that would

otherwise have taken employees away either from work or from

spending quality time outside of the office.

“Hospitality does not boil down to perks,” says Branca. “Instead,

it’s about creating a positive connection to the experience of

coming to the office by making it easier for your people to do

the work you hired them to do. Hospitality-driven services that

support both business and employee needs are the most flexible

resource an organization can invest in to signal the value it

places in its people.”

“Hospitality does not boil down to

perks. Instead, it’s about creating a

positive connection to the experience of coming to the office by making it easier for your people to do the work you

hired them to do.”—Ashley Branca, Experience Services Lead,

Workplace Practice, CBRE

21 © 2016 CBRE, Inc.


WELCOME TO THE FUTURE. HOW CAN WE HELP YOU?You are committed to building a workplace that makes your employees happy, creates competitive advantage for your organization, and “manages” (read: reduces) your net real estate cost of service. To do so successfully, you’ll need to challenge the status quo.

Providing a compelling workplace means making informed bets on the future experience you want to create, not asking everyone for buy-in. Managing to consensus often means meeting in the middle, where you are not likely to exceed anyone’s expectations.

Here are a few steps to avoid that common space-planning trap:

Let data drive space allocations.

An increasing array of tools and technology are available for gathering data about how your

people work, how they communicate and what they value. Use that information to make a case

for greater efficiency while giving people more choice.

Engage your people in problem-solving outcomes, not collectively setting strategy.

Most space planning relies on asking people what they want, but few can envision something

different from what they have. Instead, base your strategy on your organizational vision for the

future, and then include your people in problem-solving aspects of how that can be achieved.

Change the rules for how you use space.

The policies that govern how space is used have as much or more to do with someone’s

workplace experience as the physical space itself. Change how you ask people to use the space

and you may find that work processes and expectations change as a result.

Introduce new and delightful services.

Redefine roles to be truly user centric. Upskill your receptionist to function more like a concierge,

responsible for problem-solving for employees and visitors. For IT, a five-star hospitality

approach might include core training, a physical IT helpdesk and a resident expert for individual

and group training.

Get into the event business.

People come to work to connect with each other. Simple things like an educational series, Friday

socials or a food truck day are all things that require little capital but make a big difference in

fostering community.

22 © 2016 CBRE, Inc.


Where to begin? This paper identifies

many of the opportunities available in

today’s workplace and envisions what a

truly productive and connected office and

office worker may look like in the future.

What are practical steps to help prepare

your organization for these realities, and

more immediately, inform your next

workplace strategy?

Here are a few tips for getting started:

• Lead with your vision. Highlight

areas where your current workplace

accelerates or inhibits your

organizational vision and objectives.

Galvanize support for change, making

the status quo unacceptable.

• Gain commitment from key

stakeholders and influential leaders

from across the organization who will

“walk the talk.” Your real estate and

facilities team can create the space and

conditions for change, but successful

transformation ultimately lies with your

business leaders who must change

themselves and model the desired

culture and work patterns for others.

• Take a user-centric approach to

understanding what your people need.

Do not fall victim to broad stereotypes

about generational preferences or

TOWARD A BETTER WORKPLACE

23 © 2016 CBRE, Inc.


get lulled into believing that all engineers, lawyers, sales

professionals or accountants have the same needs. Instead,

seek to understand your people and what they need to be

truly effective.

• Address the experience, not just the place. A sports stadium

has a completely different feel when it is empty. Going to a

game is energizing not just because of what is happening

on the field. The food and drink, the big screen and on-field

entertainment, the home-team customs and, yes, the people

you are there with—all play a part in creating the experience.

All are deliberate decisions made by someone about what it

means to go to a game. What should it mean to go to work for

your organization?

• Accelerate your cycle of investments. Changing work habits,

disruptive technology and the necessity for organizational

agility demand change faster than the typical 10-year cycle of

workplace reinvestment. Consider budgeting for incremental

improvements and adaptations throughout the lease cycle.

• Experiment, adapt, repeat. The best workplace strategies

are never complete. Instead, they should regularly evolve

in response to new business and user requirements, lessons

learned from previous implementations, and advances in

building, enterprise and personal technology, furniture and

space design.

The precise steps that organizations should take to optimize the

appeal of their offices to the talent they seek will vary based

on each individual company’s strategy, brand aspirations and

recruiting priorities—as well as their practical implications at a

local level.

Keep in mind, too, that many people are naturally resistant to

change. But, according to Beck, “the organizations that are

most successful in changing their workplace strategy are those

that understand it has to be led from the top and coupled with a

tremendous organizational transformation effort.”

CBRE embraces the concept of decision-makers as change leaders,

not just change managers—and real estate executives as master

collaborators, with a seat at the decision-making table.

In the third paper in our thought series, we explore a holistic

approach to managing a real estate portfolio within the broader

business context to create competitive advantage for occupiers.

24 © 2016 CBRE, Inc.


At CBRE, we believe that the key to better business performance is better real estate performance. Real estate and people are the two

highest costs any occupier faces. But cost is only half the story. Our most strategic clients recognize that when properly approached, these

two critical pieces of the corporate structure can also have a transformative impact on the overall performance of their organization.

This thought series brings to life CBRE’s decades-long record of workplace-transformation experience to demonstrate how organizations

of all types and sizes can realize those goals. We bring market-leading qualifications and capabilities, including analytical expertise that

spans markets, industries and asset types; a relentless focus on superior execution; and, a high-touch, client-centric approach.

Most of all, these papers tap into the thinking of some of the sharpest minds practicing in the industry today—professionals with the ability

to drive world-class productivity and operational excellence for every client they serve.

We encourage you to connect with us to discover how we can help unlock the value of your real estate portfolio.

A CBRE THOUGHT SERIES This thought series on Workplace Performance gives consideration to optimizing an organization’s strategic goals through the proper application of its real estate portfolio. Each paper provides perspectives and insights on how to achieve this objective through labor market selection, space design and workplace experience, and portfolio optimization and workplace program development.

Part One: ALIGNING THE WORKFORCE AND THE WORKPLACEReal estate can be a significant competitive differentiator for occupiers in the race for talent. In this first paper, we outline the steps organizations need to take to identify the optimal locations for their operations and find, attract and retain the right talent to enhance their competitiveness and improve their bottom line.

Part Two: DESIGNING THE WORKPLACE EXPERIENCEThe way we work continues to evolve, driving companies of all types to rethink their approach to space and the workplace experience. In this second paper, we consider the trends shaping the physical workplace and best practices in workplace design.

Part Three: BUILDING COMPETITIVE ADVANTAGEReal estate is a critical, tangible expression of the strategic decisions a company makes. In this final paper in our thought series, we focus on the total real estate management approach that organizations take within the broader business context to create competitive advantage for occupiers.

ABOUT OUR THOUGHT SERIES

25 © 2016 CBRE, Inc.


ENDNOTES

1. Source:2015/16AmericasandGlobalOccupierSurveys,CBREResearch,April2016.

2. Source:HowEmployeeEngagementDrivesGrowth,GallupBusinessJournal,June20,2013.

3. Source:MajorityofU.S.EmployeesNotEngagedDespiteGainsin2014,Gallup,January28,2015.

4. Source:2012GlobalWorkforceStudy,TowersWatson,2012.

5. Source:YourScarcestResource,HarvardBusinessReview,May2014.

6. Source:CorporateAmericaChasestheMythicalMillennial,TheNewYorkTimes,May25,2016.

7. Source:DesigningtheOfficeoftheFuture,CBREResearch,November2014.

8. Source:LiveWorkPlay,Millennials:MythsandRealities,CBREResearch,October2016.

9. Source:What’sTrendinginHealthandWellnessBestPracticesintheCorporateWorkplace,CBREResearch,May2016.

10.Source:GreatPlacestoWorkInstitute.

11.Source:ManagingAcrossDistanceinToday’sEconomicClimate,HarvardBusinessReview,2009.

12.Source:Maslow’sHierarchyofNeeds,SimplyPsychology,2016.

13.Source:What’sTrendinginHealthandWellnessBestPracticesintheCorporateWorkplace?,CBREResearch,May2016.

14.Source:TheRiseinDualIncomeHouseholds,PewResearchCenter,June18,2015.

PHOTOGRAPHS

1. Page4:CBREWorkplace360office:Tokyo,Japan

2. Page6:CBREWorkplace360office:MexicoCity,MexicoPhotocredit:RobertoLazos

3. Page7:CBREWorkplace360office:Madrid,Spain

4. Page9:CBREWorkplace360office:Chicago,IllinoisPhotocredit:BobBuyle



7. Page13:CBREWorkplace360office:Madrid,Spain

8. Page16:CBREWorkplace360office:HongKong,China

9. Page19:CBREWorkplace360office:Glendale,CaliforniaPhotocredit:RMAPhotographyInc.

10.Page20:CBREWorkplace360office:Chicago,IllinoisPhotocredit:ErichSchrempp

11.Page23:CBREWorkplace360office:Orlando,FloridaPhotocredit:JasperSanidad

12.Page26:CBREWorkplace360office:Orlando,FloridaPhotocredit:JasperSanidad

26 © 2016 CBRE, Inc.


CONTACTS

To learn more about how to drive better business performance through better workplace performance, connect with CBRE.

Georgia Collins U.S. Practice Co-lead Workplace [email protected]

Karen Ellzey Executive Managing Director Management Consulting Global Workplace Solutions [email protected]

Lenny Beaudoin U.S. Practice Co-lead Workplace [email protected]

Julie Whelan Americas Head of Occupier Research CBRE Research [email protected]

Rob Marsh Executive Vice President Labor Analytics [email protected]

CBRE’s experience in counseling global occupiers on the redefinition and optimization of their business and real estate portfolio strategies positions us uniquely to drive the

changes shaping the physical workplace and best practices in

workplace design.

About CBRE Group, Inc.CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.

Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.

Documents

Part Two DESIGNING THE WORKPLACE EXPERIENCE · occupier’s overall real estate portfolio strategy. With that established, an occupier can focus on the design of the workplace and