Real Estate Workplace Strategy
& Change Management
Company commitment (based on surveys)
Why do you need a Workplace Strategy?
The Methodology (6 steps)
References
Author: Coralie Clément
May 2009

Company commitment to
Workplace Strategies
76% report the presence of a WS Program within their organization
55% of the respondents agree that the commitment to the overall AWS has
increased significantly to support current economic conditions
• The most commonly used strategy is the Team-Environment
• Participation for Telecommuting are expected to grow faster over
the next 3 years, rising from 5 to 11%
Source: IFMA Research July 2008
2
Microsoft & Corenet April 2009

Company commitment to
Workplace Strategies
WS Results - Decline in sqf/worker.
+ Positive evolution – CRES, IT & HR are working closer to build
a joint vision for the best possible workplace.
Cost impact - Higher Technology costs must be factored when
implementing AWS.
- AWS: Off site options encounter management’s resistance to
change followed by organization culture & technology constraints.
CRITICAL FACTOR:
> When implementing change, communication continues to be critical to
successful implementation of distributed WS.
Source: IFMA Research July 2008
3
Microsoft & Corenet April 2009

Why do you need a
Workplace Strategy?
SPACE AS A TOOL
Work Environments that are aligned with Corporate Goals can
Encourage people to behave in new ways and help achieve desired
Business results.
Workplace efficiency => productivity => Company Results
4

Why do you need a
Workplace Strategy?
Deliver a more effective working environment
=> In accordance with the needs of their business
=> Attract & Retain Talent (work/life balance)
=> Generating improved productivity (motivation, collaboration …)
=> Resulting in cost efficiency ($/Sqf, capital efficiency)
=> Reducing environmental impact of the property and workforce
Source: IFMA Research July 2008
Microsoft & Corenet April 2009 5

Why do you need a
Workplace Strategy?
EXAMPLES
General Electric
After field employees at GE had their assigned desks replaced with high tech
communication tools for working anywhere, anytime, they started spending 50% less
time in the office and more time with their customers. Now when field employees
need to access GE’s resources on-site, they can work at unassigned “hot desks”
at various field facilities. Desk are full equipped and available at 1st come, 1st served
basis.
National City Bank
Minneapolis based National City Bank saw teaming as a way of achieving greater
customer satisfaction. So, the bank tore down walls between people, provided
generous shared work surfaces so employees could easily work together, and
accommodated changing team needs with a variety of flexible furnished areas.
Workspaces based on function, rather than status, help people feel equal. For their
efforts. He bank realized a 20% drop in turnover and increased performance. 6

Why do you need a
Workplace Strategy?
Examples about productivity increase:
General Electric
After field employees at GE had their assigned desks replaced with high tech
communication tools for working anywhere, anytime, they started spending 50% less
time in the office and more time with their customers. Now when field employees
need to access GE’s resources on-site, they can work at unassigned “hot desks”
at various field facilities. Desk are full equipped and available at 1st come, 1st served
basis.
National City Bank
Minneapolis based National City Bank saw teaming as a way of achieving greater
customer satisfaction. So, the bank tore down walls between people, provided
generous shared work surfaces so employees could easily work together, and
accommodated changing team needs with a variety of flexible furnished areas.
Workspaces based on function, rather than status, help people feel equal. For their
efforts. He bank realized a 20% drop in turnover and increased performance. 7

Workplace Strategy Methodology
Supporting the change
Preliminary step
To successfully bring a property in line with
Corporate goals, it is important to explore:
- Organization’s business objectives & issues
- Existing work environment
- Space & Furniture strategies
1
1 - Potential impact on individuals & the organization
- Measurement of success
Defining the Goals - Ways to continually adapt the environment
The most important is to ensure that the Workplace Strategy
MAKES GOOD BUSINESS SENSE
8

Workplace Strategy Methodology
Assessment > A starting point
A more effective workplace strategy begins with an
understanding of:
- Why/Where people work?
- The nature of different work activities
- Communication & Privacy needs (individual/group)
2 - Technology & tool needs (individual/group)
2 - How often teams are working together ?
Company - In What ways do they interact ?
Assessment - Benchmarking
As an organization, the target is also to facilitate interactions,
improve the collaboration and ease the company processes
9

Workplace Strategy Methodology
Creating a Common vision & Workplace
concepts
• Based on the Company assessment, you would be in
position to involve key departments and do a high level
operational & financial portfolio impact analysis.
• Once your case has been presented and agreed by
3
3 the Executive Management, you can then create a
common vision (policy) and define alternative WS.
Creating Policy
& Concepts
10

Workplace Strategy Methodology
Workplace Strategy Planning
• Site selection – Prioritize depending on BU needs,
critical dates, Performance indicators.
• Engage Planners to recommend the options.
• Assess the viability of each option financial
analysis (NPV/WACC Analysis/IRR & Payback,
Operating Budget and P&L impacts, Cash impacts)
4 • Roll out Financial & other operational criteria in a
4 scorecard showing both BU & RE objectives.
• Define your recommendation and how this one will
Planning efficiently support the BU objectives and contribute
to the success of the company as a whole.
Your Real Estate recommendation has been defined and your are now
ready to start negotiating with the Business Units and the stakeholders.
11

Workplace Strategy Methodology
Implementation, Change Management &
Project Delivery
• Pilot program management
• Change management tactics
• Rollout planning
5
5 • Ongoing measurement
Implementation
12

Workplace Strategy Methodology
Change Management tactics
FAILED WORKPLACE CHANGE INITIATIVES
- Absence of champion or Junior in the organization
- Poor executive sponsorship
- Poor project management skills
- Poorly defined organizational objectives
- Employee Perceive that the change is “done to them”
- Change team diverted to other projects
- Communication occurs much too late and in response to damage
already done
- Communication focuses on justification of what employees are
giving up in the new environment
13

Workplace Strategy Methodology
Change Management tactics
14

Workplace Strategy Methodology
Change Management tactics

Workplace Strategy Methodology
Change Acceptance Process
Recognize the transition process takes time
> Ensure that the Change can be part of the company DNA & everyone's job

Workplace Strategy Methodology
Change Management tactics
> Develop new Vision => Policies & Tool kit
> Evaluate risks
> Leadership Engagement > Marketing Campaign
> Sponsor / Champion > Communication
- Employee Meeting
> Top Change Team / Project Team
- Regular e-mail during the 1st stages
> Pilot projects & Case Studies of the implementation (incl. FAQ)
- video communications
> Realistic schedule - creation of a website
- allow feedback / forum
> Training / Education
> Communication must be planned strategically and begin early in the change process. It
must focus on what the employees will gain and how it will be achieved.

Workplace Strategy Methodology
Change Management tactics
The Team must adapt to Employee’s reaction

Workplace Strategy Methodology
Change Management tactics
The Team must adapt to Employee’s reaction
Emotional response to Change
19

Workplace Strategy Methodology
Adapt, Measure & Improve
• Post Occupancy/Project Analysis (Lesson learnt)
• On-Going Change Management
• Refine proposition
• Ongoing measurement – SWOT Analysis
6
6 • Continue to brainstorm possible improvements
& innovations on a regular basis
Continuous • Maintain regular relationship with the BU
Improvement
20

References
Innovations in Office Design - ”The critical influence
approach to effective Work environments”
by Diane Steigmeier 2008
CAP materials by GE Management Development Insitute, NY
Microsoft/CoreNet AWS Survey – Dallas – April 2009
“Measuring the Added Value of Corporate Real Estate
Management”
by Anna-Liisa Lindholm & Karen M.Gibler 2006
IFMA Members survey – July 2008
Duffy F & Tanis J – “A vision of the new workplace” 1993
Nortel/HOK Internal documentation on WS – 2004 to 2009