Presentation by Nigel Oseland, Workplace Unlimited, to the WorkPlace Trends Conference 2013 in London For years we have been chasing the Holy Grail of the link between workplace and productivity - it's time to move on. Measures of productivity exist and research shows there is a proven relationship with workplace design and operation. Not having a generic measure of productivity is not a sufficient reason to ignore it in the business case for workplace projects. Workplace design has come of age.

1. Planning for
Productivity
Nigel Oseland PhD CPsychol
www.workplaceunlimited.com

2. Property Cost v Productivity Benefits
Speed
Fees
Sales
Revenue
Cost
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Output

3. Staff:Property Costs – 2005
6.5%
4.8%
Salaries
85.0%
Building Construction
Maintenance, M&E,
Furnishings & Furniture,
Depreciation
BCO (2005) The Impact of Office Design on Business Performance.
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4. Staff:Property Costs – 1965
8.0%
6.0%
Salaries
86.0%
Building Construction
Maintenance & Operation
National Bureau of Standards (1965) Study of Federal Office Buildings
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5. ASHRAE, NEMA et al – 1990s
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6. Productivity Literature Review
0.6% - 160%
range
200+
papers
75
credible
Oseland & Burton (2013) Building the business case, Facilities Management 20(08).
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135
quantified

7. Meta-analysis Weighting
Research
Environment
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Performance
Metric
Activity
Time

8. Predicted Productivity Benefits
Lower Upper
Lighting
Acoustics
Lower Upper
0.1-2.0%
0.3-2.1%
0.2-1.7%
Control
Furniture
0.0-1.9%
Temperature
0.2-1.7%
Ventilation/IAQ
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1.0-2.1%
1.7-4.4%
Space
1.2-3.2%
General/Mixed

9. Multiple Productivity Benefits
PO = P1 + ⅔ P2 + ⅓ P3 …
Where: PO = the overall % performance change
P1 = % performance change due to 1st environmental factor
P2 = % performance change due to 2nd environmental factor
P3 = % performance change due to 3rd environmental factor
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10. Contributing Factors
Environmental Conditions
Temperature, Air Quality,
Ventilation, Lighting , Acoustics
Business Factors
Office Facilities
Marketing, Advertising,
Market Demand, Economy
Furniture, Space Planning, IT,
Storage, Meeting Space
Productivity &
Performance
Organisational Factors
Psychophysical Factors
Reward, Culture, Management,
Recognition, Prospects
Comfort, Noise, Privacy.
Aesthetics, Colour, Ergonomics
Personal Factors
Experience, Training, Pride,
Personality, Motivation
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11. Confounding Factors
Business Metrics
Relevance to Business
Revenue, profit, shares
HR Metrics
Absenteeism, retain, overtime
Team Targets
Fees, utilisation, sales, clients
Work Tasks
Calls, claims, deadlines, targets
Individual Tasks
Search, maths, errors, speed
Extraneous Factors
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12. The Lawyer UK 200 Survey
Top 10
sqft/person
Bottom 10
sqft/person
Mean = 206 sqft/person
Allen & Overy
(1.7M sqft, £1.18Bn)
Minster Law
(70K sqft, £104M)
www.thelawyer.com/good-offices/1014802.article
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13. The Lawyer UK 200 Survey
2,500
20,000
2,000
15,000
1,500
10,000
1,000
5,000
500
0
0
Minster Law
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Allen & Overy
Revenue – £ per sqft
TCO – £ per person
25,000

14. Retail Metrics – Apple
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15. Retail Metrics – Shopping Centres
500
450
Sales per sq ft
400
350
300
Cool Springs
250
River Gate
200
Hickory Hollow
Governor's Square
150
All Malls
100
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
CBL & Associates Tennessee malls
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Year

16. Conclusion
1. Productivity can be measured
2. Workplace design does affect productivity
3. Business case for workplace should include
impact on business performance not just cost
4. Ignoring productivity effects is irresponsible
5. Use business metrics like Revenue per sqft
6. Track performance over time and locations
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17. Thank You
Nigel Oseland
www.workplaceunlimited.com
www.workplaceunlimited.blogspot.co.uk