With some 200 occupiers in attendance, the conference focused on the future of work and the workplace as well as real estate, technology and innovation. C&W was represented by Sheridan Ware on the Tech & Trends Panel Session, discussing the role technology plays in empowering new ways of working. Sheridan also authored “Workplace Transformation” – a series of 6 Factsheets which can be used as a toolbox for change managers interested in workplace transformation. These factsheets will be distributed, among other channels, on our new Twitter page @CushWake Workplace which will be used to promote news, trends and tools for workplace transformation - including activity-based working, agile working, collaboration, innovation and sustainability.
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Workplace Transformation for Worktech APAC by Cushman & Wakefield
1. READY TO MAKE THE CHANGE?
WORKPLACE TRANSFORMATION
FACTSHEETS INSIDE
Be the first to find out as new factsheets
are released – subscribe to us on Twitter
@CWorkplace
2. WORKPLACE TRANSFORMATION THE CHANGE | TECHNOLOGY
Technology is enabling workplace transformation and blurring the distinction between AREAS TO ASSESS
employees’ work lives and personal lives. Work is now both a physical environment and a
virtual environment; less a place to go and more something that employees can do anytime and GENERAL
anywhere, enabled by: • What is the current technology strategy and initiatives?
DEVICES • How are employees currently supported in using technology devices and applications?
No longer working from just a company-issued computer, employees are using their own • What are the current response times and employee satisfaction levels with IT services?
devices – including laptops, smart phones, tablets and PDAs – allowing greater mobility and, in • Are there opportunities for cost savings through a more centralized approach?
many cases, a simpler, easier-to-use and more interactive interface.
DEVICES
CONNECTIVITY
• Which devices are currently supported and what do employees want?
Leveraging ever-increasing bandwidth and connectivity to give employees ubiquitous and
high-speed access. Faster connectivity also enables organizations to move data storage and • Is there an IT policy for Bring Your Own Device (BYOD)?
processing outside of the traditional office which, in turn, enables employees and others to • Which devices will different employee types need moving forward?
access systems via the ‘cloud’. • How much does it cost to outfit the average employee and how will this change?
DESKTOP CONNECTIVITY
Powered by cloud computing models employees can access their ‘virtual desktop’ anytime
• What is the current bandwidth and how does this differ by location?
and anywhere irrespective of location or device. With the decoupling of data, applications and
devices, the device simply provides the means of accessing the network which houses everything • Are offices currently set-up for ubiquitous wireless internet access?
else – thereby enabling employees to bring their own device. • How would bandwidth need to be improved to support workplace transformation?
• Where is data stored currently and what are the opportunities for greater integration?
APPLICATIONS
Employees and other collaborators (e.g. suppliers, contractors, customers and partners) have DESKTOP
access to new internet-based applications to support social networking, collaboration and • What systems do employees currently use and how do they log on?
innovation.
• How well are communications and applications integrated?
TECHNOLOGY ENVIRONMENT • What changes would need to be made to enable a ‘virtual desktop’?
APPLICATIONS
• What applications do employees have or need to support their collaboration efforts?
• What applications are needed to support the new workplace?
• Who has or will have access to these applications?
RISKS TO WATCH
• Adding new devices creates greater complexity and needs to be carefully managed
• Security (perceived and actual) can be threatened by new devices and applications
DEVICES CONNECTIVITY DESKTOP APPLICATIONS • Allowing employees to use their own devices creates a greater need to separate
personal and corporate data and ensure ongoing compliance
• Any additional load on the network caused by introducing new devices or applications
needs to be matched with increases in bandwidth to ensure no loss of productivity
3. DEFINING REQUIREMENTS CHECKLIST FOR CHANGE
AREA POTENTIAL REQUIREMENTS
• Office work zones are equipped with the technology required for Develop an overarching strategy for changing technology but customize depending on
DEVICES
the relevant activity – including wireless internet, access by alien local requirements, nuances and cultural differences
devices and interactive whiteboards
CONNECTIVITY • Server hosting of applications and data to allow access anywhere Think strategically about IT investment – providing the necessary infrastructure
and through any device will involve upfront investment but this may be offset by lower IT salary costs (due to
• Sufficient bandwidth to allow employees to access data and centralization and less time spent on managing local networks) and other expenses
applications quickly and efficiently (due to BYOD and lower software purchasing and licensing costs) in the long-term
DESKTOP • Single sign-on to everything securely across devices
• Integration of collaboration and communication applications to Look for opportunities to save on IT expenses through consolidating technologies and
ensure they can be used easily and efficiently across multiple providers
devices
APPLICATIONS • Knowledge management – e.g. intranet
Ensure your IT employees have the skills and experience to implement the change
COLLABORATION
• Knowledge building – e.g. wikis, online workspaces
• Innovation platforms
Don’t implement new technologies without a clear business purpose and non-IT
• Social – e.g. social networking, social bookmarking
stakeholders within the organization who are willing to drive adoption
• Discussion – e.g. forums, discussion boards, blogs
• Information – e.g. web syndication, RSS feeds
Outfit employees based on their employee type (i.e. job profile, mobility need and
APPLICATIONS • Email and calendars selected option) – not all employees will require all devices or access to the same
COMMUNICATION
• Instant messaging applications
• Enterprise telephony with phone number portability
• Conferencing – video and audio Ensure all employees are given adequate training for new devices and applications –
• Messaging – video and audio particularly older generations who may not be as tech savvy
• Online meetings and webinars
• Podcasts Consider new ways to provide better support to employees – e.g. self-help, automated
• Presence and availability tools support and user support communities
APPLICATIONS • Workplace management and reservation systems
WORKPLACE • Smart technologies to act on events in the workplace Stay informed– technology is continually changing and allowing even more efficient,
• Online privacy policy productive and collaborative ways of working particularly as providers and platforms
POLICIES
converge
• Security and data storage policies
• Bring Your Own Device (BYOD) policy
• Email etiquette policy
TRAINING • How to use new devices
• How to use new applications
4. WORKPLACE TRANSFORMATION THE CHANGE | SPACE
While it’s the people that will determine whether workplace transformation is successful, AREAS TO ASSESS
providing them with an engaging and enjoyable work environment – whether physically or
virtually – will help make it happen. GENERAL
• Does the current workspace match the brand, values and culture of our organization?
The traditional office is shifting from a place employees come to complete their work hours, to
• How does the workplace help or hinder efficiency, productivity and performance?
a centre where they meet and collaborate. In fact, analysts suggest the percentage of personal
space needed in the office has shifted from 60% to 30% of the floor plan. Focusing on this • How much time per day do people lose:
shift as an opportunity to increase desk efficiency is like looking at the organization through • To distractions?
the wrong end of the telescope and is unlikely to achieve sustainable benefits. Try turning the • Looking for meeting rooms and other resources – e.g. whiteboards, projectors?
telescope around and looking at the role that the workplace plays in supporting collaboration, • Due to technology problems – e.g. access to internet and printers, foreign devices?
innovation and delivering competitive advantage. We like to call this the Interconnected Office
(the iOffice) whose role is to reinforce interconnections including: ACTIVITY UTILIZATION
• What modes of work does the workplace need to support and how significant is each?
SENSE OF PURPOSE
• Is the current space fit-for-purpose in terms of the different work modes?
It should communicate the brand promise to customers, employees, shareholders, the
environment and the community. • Who is collaborating and do they have the space and resources they need?
SHARING SPACE UTILIZATION
Not desks but ideas – the workplace should stimulate conversation and collaboration across
• What space do we have and what percentage of time is it occupied currently?
teams, functions and with other organizations.
• What percentage of space is devoted to shared areas versus individual workstations?
SUSTAINABILITY • How much space is dedicated to storage?
The workplace should be used efficiently and resources should not be wasted or underutilized.
• What are current and possible sharing ratios?
SOCIAL HUB
The workplace has an important social element which cannot be underestimated in attracting REAL ESTATE PORTFOLIO
and retaining the best talent.
• What is the cost to rent, operate and maintain the portfolio – overall and by location?
• What percentage is real estate of total operating expenses – overall and by location?
• Are consolidations required, for example, as a result of a merger or acquisition?
THE INTERCONNECTED OFFICE • When are leases due for renewal across the portfolio and are we planning new offices?
• Are there properties with particularly high rents or with space limitations?
• Are any offices due for reconfiguration, for example, as a result of restructuring?
• Are any offices due for major technology upgrades?
RISKS TO WATCH
SENSE OF • New workplace designs can increase the level of noise, interruptions and distractions
SHARING SUSTAINABILITY SOCIAL HUB
PURPOSE and increase the potential for people to over-communicate – making it critical to build in
quiet and private spaces
• Leaders often equate workplace transformation to desk sharing and working from home
rather than enabling a variety of work locations and redesigning the traditional office
around work activities to ultimately increase productivity and efficiency
PHYSICAL + VIRTUAL
5. DEFINING REQUIREMENTS CHECKLIST FOR CHANGE
AREA POTENTIAL REQUIREMENTS Develop an overarching strategy for changing the workspace but customize depending
on local requirements, nuances and cultural differences
WORK SPACE • Open plan working environments with smaller desk spaces and limited or
no personal offices Recognize that reaping the benefits of workplace transformation requires much
• Increased natural light and greater access to views and other amenities more than reconfiguring the traditional office – a focus on enhancing the efficiency of
• Flexible furniture configuration to allow the workplace to adapt for workstations will not provide competitive advantage but enhancing the effectiveness
different activities and reduce churn-related costs of people and driving cultural change will
• Centralized filing systems
Consider all distributed work locations – not just working from home
• Locker space for employees to store their belongings
• Wayfinding and high interior visibility so employees can easily orient In the office, experiment with different work zone alternatives and give employees a
themselves in the workplace chance to test and provide feedback so they feel empowered and engaged in the
change
• Enable use of the office outside of normal working hours
Create virtual alternatives of physical work zones – e.g. video and audio conferences,
WORK • On-demand desks – which can be booked in advance webinars, discussion boards and social networking tools
ZONES • Touchdown desks – which can be taken on a first-come-first-served basis
• Collaborative spaces – for groups to work together in brainstorming and co-creating Communicate the purpose of each work zone to employees but resist putting too
many rules around usage – allow them to adapt the workplace to their needs
• Meeting rooms of varied sizes for different activities – e.g. booths for taking
phone calls, alcoves for private one-on-one meetings and large rooms for team meetings or
Ensure there is sufficient quiet space as well as availability indicators to allow
training
employees privacy when they need it
• Quiet rooms – for focused individual work
• Project rooms – which can be booked for the duration of short-term assignments Locate shared spaces centrally to drive traffic and encourage informal interaction but
experiment to ensure they don’t become so busy that employees feel like they can’t
• Social and relaxation spaces – free-flowing hallways and areas to enjoy downtime
easily shift to having a private conversation
with others or alone
• Resource spaces – for shared resources such as printers, faxes and photocopiers Find ways to create ownership over a communal space rather than an individual desk
• All areas are equipped with necessary resources depending on the – e.g. through shared spaces and home zones
activity they are intended to support – e.g. wireless internet, whiteboards,
portable phone numbers Time workplace changes to take advantage of other changes – such as consolidations,
acquisitions, renovation and organizational restructures
DISTRIBUTED • A variety of distributed work locations provided – not just working from home
LOCATIONS • Employees have the ability to connect and work from these varied Recognize that change takes time and it’s better to spend time experimenting with
locations with minimal impediments different approaches and finding the right alternative which engages employees rather
than to rush the change
POLICIES • Office protocols – e.g. meeting management, client greeting, clear desk
TRAINING • How to work effectively in the new office
• How to book and use different work zones
6. WORKPLACE TRANSFORMATION THE CHANGE | PEOPLE
Today’s business environment – characterized by increasing collaboration, competition for AREAS TO ASSESS
customers and talent, globalization and pressure to deliver greater value in a shorter period of
time – is requiring organizations, managers and employees to question how, where and when WORK FORCE
work gets done. • How many employees do we have currently and how will this change?
As a result the very nature of work is changing and it’s estimated that by 2017 employees will • What type of work do employees do and how is this changing?
spend 80% of their time collaborating; not just with their direct work teams but an increasingly • How satisfied are employees with current ways of working?
complex network of suppliers, contractors, customers and partners located in different • What are their preferences for how, when and where they work?
geographies and time zones. • How would they structure their day differently to be more efficient and productive?
This is causing a shift in traditional hierarchical management styles with the focus moving away
from presence to performance and with an understanding that employees can work anytime and WORK CULTURE
anywhere as long as their targets are met.
• What is the organization’s culture and what do people pride themselves on?
In the face of such a seismic shift, engaging the hearts and minds of your employees and • How is the culture reinforced through symbols, workplace design and work practices?
management will be the key to making it happen. Through questionnaires, interviews, workshops • Are there any existing programs or desire to transform the organization’s culture?
and experiments you must understand and act on their needs, concerns and ideas and ensure • What initiatives, if any, are already underway to effect this change?
they have the skills and confidence to adapt to new ways of working.
• How are employee performance and productivity currently measured?
• What policies, processes and systems are in place for measuring performance?
TRANSFORMATION LEVERS • Are there any planned changes to performance management systems or processes?
SOCIALIZE FOCUS • If so, how are these going to be implemented?
WORK MODES & PROFILES
• What amount of time is spent on each of the work modes by job profile, department?
• Which segments of the workforce are already highly mobile?
• Which departments are asking for new technology or ways of working?
• Who will be part of the change and which job profiles and locations will be eligible?
• Who will be the best early adopters to experiment with new ways of working?
RISKS TO WATCH
• Managers may fear losing control if they are unable to see and monitor employees on a
LEARN COLLABORATE daily basis and may lack confidence managing distributed teams
• Resistance may come from those who believe stature is conferred by space allocation
• Some employees may fear losing their desk, purpose and sense of belonging or not
being seen in the office
• Other employees may be enthusiastic about the change but their work activities will
restrict mobility – e.g. paper-intensive work
• Home is not an ideal environment for everyone due to lack of space, distractions,
technological impediments or loneliness – creating the need for alternative locations
7. DEFINING REQUIREMENTS CHECKLIST FOR CHANGE
AREA POTENTIAL REQUIREMENTS
Develop an overarching strategy for changing management and working styles but
LEADERSHIP • Ensure the majority of leaders are engaged and willing to visibly support the customize depending on local requirements, nuances and cultural differences
change
• Encourage leaders to model desired behaviors – such as collaboration, informal Take time to develop a comprehensive change management plan with a strong
interaction and trust emphasis on effective engagement and communication at all levels throughout the
EMPLOYEE • Segment the workforce on multiple levels: process
TYPES - Level of mobility – e.g. mobile, offsite, office-based
- Job profile – linked to work modes Conduct visioning sessions to create a tangible and shared concept of the new space
- Ability and willingness to accept change – which will determine the options
available to them Conduct one-on-one sessions with department heads to understand specific concerns
- Importance to engage in the change effort and sign-off an agreed approach to effect the change
• Provide suitable work zones, technology and policies for each segment and
the types of activities they undertake Give incentives to employees for making the change – e.g. new devices and
• Develop and communicate personalized messages around each segment reimbursement of internet and phone expenses in exchange for giving up their desk
DISTRIBUTED • Assist distributed teams in setting clear objectives and help them reach agreement Provide tools that allow employees to assess the change on an individual basis – e.g.
TEAMS on team member expectations, how decisions will get made, how information will a calculator to assess commuter cost and time savings
be shared and how work will get done
• Ensure accountability for following agreed norms and completing assigned tasks Hire, promote, develop and celebrate employees who are able to make the switch and
who exhibit supportive behaviors such as being collaborative, accountable and
FACE-TO-FACE • Ensure regular communication for distributed teams – e.g. daily or weekly team autonomous
CONNECTION meetings via video or audio conference
• Provide opportunities for less frequent face-to-face meetings for geographically- Assess leaders and managers on their ability to adapt to new ways of working and
dispersed participants to meet, socialize, set team objectives and agree team model desired behaviors
norms and processes
• Require employees to come into the office at certain time intervals or for Find ways to demonstrate position other than through symbolic space-related artifacts
specific meetings – e.g. social recognition rather than the corner office
PERFORMANCE • Clear goals and key performance indicators (KPIs) – especially for remote Recognize that change takes time and develop a multi-phased approach – e.g. new
MEASUREMENT employees employees adopt new practices immediately while existing employees are given options
• Metrics and data to track performance
Recognize that some valuable employees will not be willing or able to make the change
POLICIES • Flexible working policies
and manage these exceptions
• Commuting guidelines
TRAINING • How to manage performance for managers – for soft skills (goal setting,
measurement, coaching and feedback) and hard skills (performance management
systems and policies)
• How to manage performance for employees
• How to effectively manage and work in distributed teams
8. WORKPLACE TRANSFORMATION THE CHANGE | PLANNING
“By failing to prepare, you are preparing to fail” THE PLANNING PROCESS
BENJAMIN FRANKLIN
ANALYSE BUSINESS NEEDS
The success of any workplace transformation will be dependent on how well it is planned with • People – engage stakeholders and assess the desire to change
respect to the three transformation levers. • Competition – understand strategies for attracting customers and talent
• Financial – understand expectations and cost reduction plans
PEOPLE • Sustainability – understand goals and regulatory requirements
Designing the workplace around your employee’s work activities and ensuring their
expectations, concerns and ideas are acted on. Also empowering both employees and managers • Technology – understand the current infrastructure and gaps
to adopt new ways of working through communication and training.
DEVELOP BUSINESS CASE
SPACE
Providing a variety of spaces – both physical and virtual – to complete their work activities • Develop a clear and tangible vision
efficiently, productively and collaboratively. • Define objectives, benefits and metrics
• Analyze high-level needs, requirements and investment
TECHNOLOGY
Enabling the new workplace and new ways of working through new devices, applications and • Benchmark and undertake financial analysis
connectivity. • Assess risks
It’s important to develop an overarching strategy at the organizational level but customize the DESIGN THE CHANGE
solution – people, space and technology – at the local level after assessing specific requirements
and considering: • Develop an integrated team of key stakeholders
• Conduct an organization-level assessment
• the workforce demographics and needs (including cultural dimensions)
• Define broad requirements - people, space + technology
• the competitive landscape for customers and talent • Develop the workplace transformation strategy
• financial performance and pressures • Develop the change management program
• the economy and regulatory requirements (particularly sustainability) • Develop baseline tools, templates and processes to assist local implementation
• existing technology and infrastructure gaps
IMPLEMENT THE CHANGE
TRANSFORMATION LEVERS • Engage employees – at all levels (organization and locally)
• Conduct local assessments and define requirements – people, space + technology
• Identify early adopters, experiment and refine ideas
PEOPLE • Document and share insights and learnings
(psychological) • Roll out to different employee groups
SPACE • Implement the change management program
(physical)
REFINE THE CHANGE
TECHNOLOGY
• Solicit feedback and track metrics on an ongoing basis
(visual)
• Conduct new experiments and roll out different approaches
• Ongoing change management
9. ANATOMY OF A CHANGE MANAGEMENT PLAN COMMUNICATION STRATEGY & PHASES
STAKEHOLDER ENGAGEMENT | an experienced team for guidance and leadership
• Management – buy into and visibly support the change
LEVEL OF SUPPORT
• Human Resources – train, coach and monitor employee impact
• Real Estate – assess, develop plans and manage implementation
• Information Technology – introduce new technology solutions
• Corporate Communications – roll out the communication strategy
• Consultants – architects, change managers and real estate consultants
• Other Potential Stakeholders – including unions and employee representatives
EMPLOYEE ENGAGEMENT | to create wide-spread buy-in and fuel the change
• Effective Communication – with employees at every stage and across all levels
• Involvement – early in the process to drive effective solutions and ensure buy-in
• Early Adopters – carefully selected groups to experiment with new ways of working TIME
• Feedback – provide ongoing opportunities to share ideas, comments and suggestions
DISCOVERY DENIAL RESISTANCE ACCEPTANCE OWNERSHIP
• Recognition & Rewards – for those who engage positively with the change (Inform & Involve)
DISCOVERY (Inspire)
DENIAL (Individualize)
RESISTANCE (Institute)
ACCEPTANCE (Innovate)
OWNERSHIP
INFORM &and concisely ShowINSPIRE in its Show how the change
Clearly INVOLVE the change INDIVIDUALIZE INSTITUTE INNOVATE
Engrain the change Constantly look for
MEASUREMENT | to measure the impact and sell the change Clearly andthe change - Show the change in impacts each person and
explain concisely initial stages to make Show how the Engrain thewe do new ways to improve
as the way change Constantly look
OBJECTIVE
what, why, when, how, its initial stages to
explain the change - it tangible for changeand what each
group impacts they business and map
as the way we do the way we work
for new ways to
OBJECTIVE
• Choose – appropriate metrics: people, competition, financial, sustainability, technology what, why, when, how, employees and to
who - its benefits and make it tangible for need to do
person and group business andto
the change map improve the way
• Baseline – each metric at the beginning of the change progress who - itsitbenefits to the employeesthat the
how relates and reaffirm and to and what they corporate success
the change to we work
how it relates to values, change it thathappen
organization’s the reaffirm will the need to do corporate success
• Track – progress against each metric at key milestones and beyond culture and goals
organization’s values, change will happen
• Report – progress as part of the wider communication plan culture and goals
Experimenting
Visioning Sessions
ACTIVITIES
Sharing Quick Wins
Focus Groups Consulting
Celebrating Successes
Experimenting Training Innovation Groups
Workshops Experimenting
Visioning Sessions Creating Role Models
Sharing Quick Tracking Metrics Experimenting
COMMUNICATION | the key to effective change management Interviewing
Providing Examples
Actioning Feedback
Reporting Implementing
Focus Groups Wins Celebrating Consulting
ACTIVITIES
Surveying Training Training Innovation Groups
• Clear & Concise – develop short, tangible and repeatable messages Workshops
Benchmarking
Showing Progress
Successes Experimenting
Actioning Feedback Tracking Metrics Experimenting
Interviewing Creating Role Models Actioning Feedback
• Personal – craft customized messages for different groups Surveying Providing Examples Training
Reporting Implementing
• Benefits-Focused – focus on the ‘what’s-in-it-for-me’ for different groups Benchmarking Showing Progress Email, Intranet, Newsletter
CHANNELS
Actioning Feedback
• Positive – create early wins and provide examples of the benefits in action Webinars
Town-Hall Meetings
Team Meetings Reports Webinars
• Authoritative – have consistent messages delivered by respected leaders Posters Email, Intranet, Newsletter
Site Visits
CHANNELS
• Actionable – compel people to get involved and feedback at every opportunity Town-Hall Meetings
Mock-Ups
Webinars Social networking
• Interactive – act on people’s feedback and show their opinion is valued Posters
Team Meetings Reports Webinars
Site Visits
• Regular & Timely – provide updates frequently and with time to act on feedback
• Encompassing – delivered at multiple levels and through multiple channels Mock-Ups Social Networking
10. WORKPLACE TRANSFORMATION THE BUSINESS CASE
ANATOMY OF A BUSINESS CASE
“Organizations that ignore the changes in work patterns, workforce
EXECUTIVE SUMMARY
and work environment are likely to find themselves at a considerable
• Vision – what is workplace transformation and what is the scope of the change?
disadvantage from which it will be difficult, if not impossible, to recover.”
• Objectives – what do we aim to achieve through workplace transformation?
JOURNAL OF CORPORATE REAL ESTATE
• Benefits – what tangible and positive changes will this bring?
• Investment – how much time and funding will be required?
• Timing – what are the main activities and how long will they take?
When developing a Business Case for workplace transformation it’s important to realize that no
one size fits all.Your Business Case should be designed around the specific situation and benefits • Measurement – how will success be defined and results measured?
that can be achieved for your organization.
Whether it’s improving employee productivity, efficiency and morale through the rollout of new NEEDS ANALYSIS
technologies or strengthening agility and lowering expenses by changing the physical and virtual • People – what are our employees’ expectations and how are they changing?
working environments, the Business Case must uncover what’s driving workplace transformation • Competition – how must we compete for talent and customers?
in your organization and all associated benefits. While an effective workplace strategy can save
• Financial – how are expectations for financial results changing?
up to 40% of your real estate costs, benefits relating to people, competition, sustainability and
technology can be collectively greater with the right strategy. • Sustainability – how are government, customer or investor expectations changing?
• Technology – how can technology enable a new workplace?
Focusing beyond pure cost savings, giving a clear statement of objectives and showing how
results will be measured in support of broader organizational goals will also engender greater
cross-functional involvement and buy-in – a key to making the change a success. REQUIREMENTS ANALYSIS
Given workplace transformation will impact people throughout your organization, the Business • People – how will management styles, policies and incentives need to change?
Case should start with a clear and tangible vision of what transformation means – including how, • Space – how will the physical office change and what other spaces are required?
when and where work will take place in the new environment. • Technology – what are the requirements for devices, applications and connectivity?
WORK SPACES OF TODAY COST BENEFIT ANALYSIS
• Benchmark – results achieved by similar organizations
• Identify – investment required and expected cost savings
• Calculate – financial returns using cash flow modeling techniques
RISK ASSESSMENT
CORPORATE ALTERNATIVE HOME TRANSIT COMMUNITY • People – who will be impacted and how will their concerns be managed?
OFFICE OFFICES taxis cafes • Space – what issues will new work spaces create and how will they be managed?
client sites airport lounges libraries
satellite offices hotels • Technology – what risks do new technologies pose and how can these be addressed?
11. STATISTICS TO CONSIDER RESULTS ACHIEVED
A key part to gaining buy-in and support for the Business Case is a statement of the likely Companies are achieving significant results across the five key areas through the implementation
benefits that can be achieved. The following statistics point to the potential upside and trends of workplace transformation strategies.
driving workplace transformation.
Deutsche Bank’s db New Workplace Program reduced Macquarie
DRIVER INTERESTING STATISTICS churn costs by 70%, led to a10-15% reduction in Group reduced
PEOPLE • iPass has found that the average mobile worker works 240 hours a occupancy and reduced power expenses while also energy
year longer than the rest of the workforce decreasing decision-making time and giving employees consumption by
a greater feeling of ownership over the office space 50%, elevator
• On average, commuting takes employees 80 minutes per day - it has
use by 50%,
been identified as one of the main sources of daily stress and
printing by
associated with poor sleep quality, bad health, exhaustion and
53% and paper
breakdown in personal relationships Lilly, by moving to an open-plan, activity-based storage by 78%
environment, increased employee satisfaction with the at One Shelley
COMPETITION • According to IBM, outperforming companies are more than three space by almost double, reduced space per employee Street in Sydney
times more likely to have adopted new ways of working by 26%, capital costs per employee by almost 50% and by designing the
• Approximately one-third of employers globally find it difficult to fill job decreased the amount of time lost to distractions, office around
vacancies due to lack of available talent - the issue is more acute in waiting, and looking for meeting rooms by 16% - collaborative
Asia Pacific (81% of employers in Japan) employees also say the new environment stimulates work
• In a survey by Robert Half International 33% of CFOs said greater creativity
telecommuting was the best way to attract talent while 46% said it
rated second behind salary
FINANCIAL • Behind salaries real estate is the most significant expense for most Microsoft, by designing their Schipol Airport Campus in Amsterdam around
companies; accounting on average for 15% of total operating activities not desks, increased sales by 51%, significantly improved employee
expenses satisfaction, reduced real estate costs by 30% as well as IT, administration and
• Workplace studies consistently find upwards of 50% of desk space is communication costs – including paper usage which decreased, on average, from
underutilized 80 pages a day to one page a day
• Through workplace transformation, companies have been able to
reduce real estate costs by over 30% and reduce churn to as low as
zero
American Express Blue Work Greenstar reports that at the City of
SUSTAINABILITY • A McKinsey study found that 40% of global emissions are generated by provides a range of flexible Melbourne’s CH2 green rated building,
buildings while commuting accounts for10-20% of a person’s own work arrangements and has led productivity has increased nearly 11%;
carbon footprint – both of which can be reduced through workforce to an increased ability to attract saving occupants $2 million annually
transformation younger workers, increased
employee productivity,
TECHNOLOGY • A Cisco study revealed that 40% of college students and 45% of young engagement and retention, Deloitte reduced square footage per
employees would accept a lower-paying job if it had more flexibility on employee by 30% and achieved a 30%
decreased retraining expenses,
device choice, social media access and mobility reduction in associated energy costs – a
lowered the carbon footprint
• Employees using their own devices enjoy increased mobility, higher job and increased collaboration and saving of over $100 million achieved with
satisfaction and improvements in efficiency and productivity innovation 205 years of implementation
12. WORKPLACE TRANSFORMATION THE REASON
The workplace as we know it is dramatically changing. The nature of work, shifting demographics collaborative and goal-orientated, they have a strong work ethic and may look to transition to a
in the workforce, increased competition, financial pressures and a sharper focus on sustainability different way of working rather than retire completely.
mean traditional workplaces and working styles are increasingly unsuitable for our current
reality. Meanwhile, changing management styles and technological advances are enabling new GENERATION X
ways of working. Born between 1965 and 1980, this generation is entrepreneurial, independent, skeptical,
individualistic, ambitious and eager to learn new skills. They respect authority less and value
work-life balance more than their predecessors and are less loyal to their employers; having
KEY DRIVERS seen their hardworking parents lose their jobs in the 1980s. This is the first generation to grow
up with computers, so they are more comfortable with technology.
TECHNOLOGY ENABLEMENT
GENERATION Y
Born between1981 and 1999, this generation has grown up consumed by the internet and
mobile devices and have a preference to learn and communicate electronically rather than
through face-to-face contact. Avid multi-taskers and team players, they value non-traditional
PEOPLE COMPETITION work settings, flexible work and are more environmentally-conscious than their predecessors.
While new to the workforce they will drive enduring change especially in the face of increasingly
competitive labor markets.
FUTURE GENERATIONS
While they are yet to enter the workforce those born in the year 2000 and beyond are likely to
have the greatest impact on the way we work. The future workforce has grown up consumed by
technology – the internet and mobile devices are completely integrated in their recreation time
FINANCIAL SUSTAINABILITY and in the classroom. This is the generation that is always connected, mobile and able to read
naturally onscreen. With their entrance into the workforce beginning within the next decade,
companies should consider now what their expectations will be and how that will shape how,
when and where work will get done in the future.
COMPETITION | how they work
The growth of the service-based knowledge economy, greater customer demands for new
PEOPLE | who is working
offerings and increased responsiveness, and globalization is forcing organizations to continually
For the first time in history we have four generations in the workplace, each with their own
restructure, push decision making down into local markets, innovate and collaborate across
unique characteristics and expectations. With fewer younger people to replace those retiring,
borders. Traditional employer-employee relationships are being replaced with a complex
companies must deliver on these employee expectations in order to remain competitive amid
network of employees, suppliers, contractors, customers and partners working together to
the coming shortage of workers.
effect change; requiring physical and virtual workspaces that match to the new reality and a
THE TRADITIONALISTS move away from command-and-control, hierarchical management styles.
Born between 1927 and 1945, this generation have largely retired from the workforce.
Hardworking, loyal and the least technologically savvy of the generations, they remain an FINANCIAL | what they achieve
important source of business knowledge and experience but may require more flexible With relentless pressure to deliver greater value to shareholders, organizations are looking at
arrangements to ensure their continued participation. new models to continually reduce operating expenses. Evidenced in the growing trend to
outsource non-core functions, offshore to lower cost or remote locations and contract to fill
BABY BOOMERS
short-term needs, costs at all levels are being examined and either reduced, removed or made
Born between 1946 and 1964, this generation, either by choice or necessity brought about by
more flexible – including salaries, real estate and travel.
the economic downturn of 2008-2009, are opting to stay in the workforce longer. Positive,
13. SUSTAINABILITY | what impact they make THE BENEFITS
Sustainability is becoming an important consideration at multiple levels and making companies
question where, when and how their employees work: DRIVER BENEFITS
• Society – triple bottom line reporting, compliance with environmental regulations and the PEOPLE • Ability to attract high-quality talent
need to place less pressure on city infrastructure.
• Increased employee satisfaction and retention
• Company – reducing emissions, energy and waste and enhancing brand awareness and
• Increased mobility and flexibility
positioning with investors and consumers as an environmentally and socially-responsible
organization. • Increased productivity and efficiency – through reduced commuting time and
accessibility via multiple devices
• Individual – reducing the carbon footprint of employees – for example through reduced
commuting and business travel - and catering to the expectations of an increasingly • Improved work-life balance for employees
environmentally-conscious workforce. • Reduced absenteeism
• Increased diversity
TECHNOLOGY | where they work
All these changes are being enabled by faster connectivity allowing the introduction of new COMPETITION • Increased collaboration and information sharing
technologies, devices and applications which are untethering employees from the traditional • Greater innovation and speed to market
office and workstation. Such advancements in technology and communication now allow work • Greater accountability
to be done from anywhere and at any time and enable the Distributed Organization to become
• Increased business agility
a reality.
• Faster customer response time
• Higher quality
DISTRIBUTED DECISION MAKING • Increased customer satisfaction
agility, competitiveness • Increased brand awareness
• Improved brand image
FINANCIAL • Lower recruitment costs
DISTRIBUTED • Lower real estate and churn expenses – through space reductions, increased
PLACE DISTRIBUTED utilization and greater flexibility
mobility RESPONSIBILITY
• Lower technology expenses – including devices, network management,
outsourcing, contracting
updates and purchasing and licensing costs
• Lower operating expenses – including travel, paper and power
DISTRIBUTED
ORGANIZATION SUSTAINABILITY • Lower water, energy and paper usage
• Lower carbon footprint
• Improved air quality
• Healthier and more productive employees
• Enhanced brand awareness
DISTRIBUTED
DISTRIBUTED TECHNOLOGY • Higher return on investment (ROI) from technology investments
WORK HOURS
GEOGRAPHIES • Enhanced disaster recovery and business continuity
collaboration
off-shoring, globalization • More robust security