Philip Tidd Director Europe, DEGW

1. What creates real Real Estate value? Twynstra Gudde Real Estate Masterclass Amersfoort, 21 st September 2006 Philip Tidd Director Europe, DEGW

6. Taylorist The Larkin Building, Buffalo Architect : Frank Lloyd Wright Date: 1904

7. Taylorist Seagram Building, Chicago Architects : Mies van der Rohe & Philip Johnson 1958

8. Centraal Beheer, Apeldoorn, The Netherlands Architect : Herman Hertzberger 1974 Social Democratic

9. The Networked office Pre-2002 $$$$ Client Site Large Metro Centers Long term, fixed cost with limited flexibility Integration of fixed, variable, shared and no cost facilities Emerging $$ Front Door Delivery Center Client Site Increasing remote working Service Centers BPO Satellites HUB New Workplace Models Variable cost Shared Global management consultancy flexible workplace blueprint “ Our new workplace strategy responds directly to the workforce model, reduces costs and wherever practical will shift from fixed toward variable costs to reduce our long term commitments.”

10. Technology changes fast: buildings do not 1954: Prediction: The Home Computer of the Future 2004 2004 : Reality: Pervasive, mobile technologies

11. Office buildings have changed very little in 100 years 1904: The Larkin Building 2005: Chinese Workplaces

14. Over time work culture has changed to support flexible and innovative workstyles Hierarchy & Status Function & Need Time & Location Traditional ‘ 9 – 5’ workplace Innovative Everywhere, every time 1900’s 2000’s

16. Work and the City Futurists : Original Cartoon drawing for the film Metropolis, Fritz Lang 1927

17. WORK = IDENTITY- Group, Community, Self

18. 19 th Century: WORK drives city form - manufacturing

19. IP Densities in London 21 st Century: WORK drives city form - Knowledge IP Densities in London region, 2004

20. GLOBAL FINANCIAL WHEEL Breathing cities pg107

21. Globalisation drives city form – ICONS of commerce

24. Hypothetical distributed working real estate strategy Physical team working Virtual team working (LS) Lone working Virtual team working (non LS) Communicating CORE SPACE Managed by organisation NON-CORE SPACE Managed by others    Ž Training centre Specialist facilities Canteen Restaurant Garden Cafe Airport Train Car Project Room Office Building Team Table Home ” Client site Allocating space on the basis of work pattern We are designing for populations of people working across multiple locations

25. Mapping distributed work centers across a city International Transport Hub Secondary Town Centre Business nodes Accessible Suburban Location Home CB D Corporate centre Neighbourhood centre Operations centre Personal centre Central Transport Hub

26. Corporate centre Neighbourhood centre Operations centre Personal centre … .and across multiple locations and shared service centers

41. Work-Life or Work-Work balance? The Inversion of Home and Office. As more people work from home or from small, purpose-built offices, the line between work and home life will blur. The office will become a place for the social aspects of work such as celebrating, networking, lunching, and gossiping. “ In the future, connectivity will no longer be a problem, the ability to disconnect will become far more important” Source: Francis Cairncross, ‘The Death of Distance’ 1998

42. Workspaces are generally used less than we think

43. Office buildings only ‘occupied’ for ~ 40% of the time Data is key: most offices are under-utilised 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 08:30 09:30 10:30 11:30 12:30 13:30 14:30 15:30 16:30 17:30 60% 35% ACTIVITIES IN WORKSPACES Empty Temporarily unoccupied Typical daily work activities mapped by Time Utilisation Study © DEGW 30% - 40% of time is out of the building 30% away from the desk but somewhere else in the building 35 - 40% at desks Empty Unoccupied Not obtainable Pausing Paper handling Reading Writing Talking Telephone Computer Meeting

49. new workplace choices plus opportunities to work : in other parts of the building at client / customer / partner premises at home Making the shift From: single desk provision To: Variety of worksettings which reflect actual workstyles

50. ‘ VicUrban: offices for the Victoria regional Government , Australia

53. ‘ New Ways of Learning’

54. 21 st century learning: a blending of leisure, education and work in both physical and virtual places © DEGW quiet confidential 10/10 meet ‘ Look who’s here today’ shhh ... Drop-in Group work Individual work linger fun chance encounter visible accessible activity noise 1 to 1 informal Open Non-hierarchical Kitchen table

55. Learning Landscapes Hogeschool Van Amsterdam: Briefing for a new university

56. Visualization Labs Stanford SMILE Project Concepts Special Equipment / plotters / storage Immersive table Projection Screen Plasma Screens Immersive Wall Immersive desks Visualization viewing & data manipulation Discussion / Screens Lab workstations Modeling / Preparation Immersive Walls Stanford I-Space

58. Settings for Active Learning with networked information and simulation technology Creative Classroom, Rensselaer Polytechnic Institute Greg Seleman Architects, P.C.; illustrations shareDesign, LLC) TEAL Classroom, MIT

62. Research summary: health, safety and comfort have attracted most attention

63. Research Framework: The balanced scorecard Efficiency Effectiveness Expression ? ? ? ? Business Imperatives Collaborative Development of Research Filters Recommended Workplace Initiatives and Performance Metrics Customer Human Capital Finance Business Processes

64. Financial Targets Business Process Customer Human Capital Finance

71. EFFICIENCY : making the most of the space EFFECTIVENESS: making the most out of people EXPRESSION: making the most of the brand Measuring workplace performance MOST VALUABLE TO MEASURE messages to staff messages to customers messages to shareholders MORE VALUABLE TO MEASURE attracting/retaining staff Supporting interaction Accommodating change density cost of occupation cost of change EASIEST TO MEASURE

72. The big picture: how office design could affect business performance Respond to business and technological change Attract & retain customers Drive down total cost of occupancy Support internal values: e.g. facilitate culture shifts Increase staff productivity Motivation and retention Knowledge management Innovation & creativity EXPRESSION EFFECTIVENESS EFFICIENCY external expression adaptability & flexibility efficiency in real estate and space planning internal expression health, safety and comfort staff performance 4 2 1 support to work processes 3

73. Appraising property portfolios 0% 50% 100% 50% 100% Efficiency space planning/flexibility/use of resources Effectiveness team communication/interaction optimal good marginal sub - optimal