Workplace Strategy & Change Management


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Why do you need to have a Workplace strategy? Requirements and steps to follow.

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Workplace Strategy & Change Management

  1. 1. Real Estate Workplace Strategy & Change Management Author: Coralie Clément May 2009 – revised Feb. 2010 The Methodology (6 steps) References Why do you need a Workplace Strategy? Company commitment (based on surveys)
  2. 2. Company commitment to Workplace Strategies Source: IFMA Research July 2008 Microsoft & Corenet April 2009 of the respondents agree that the commitment to the overall AWS has increased significantly to support current economic conditions report the presence of a WS Program within their organization 55% 76% <ul><li>The most commonly used strategy is the Team-Environment </li></ul><ul><li>Participation for Telecommuting are expected to grow faster over </li></ul><ul><li>the next 3 years, rising from 5 to 11% </li></ul>
  3. 3. Company commitment to Workplace Strategies CRITICAL FACTOR: > When implementing change, communication continues to be critical to successful implementation of distributed WS. 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. - Source: IFMA Research July 2008 Microsoft & Corenet April 2009
  4. 4. Why do you need a Workplace Strategy ? 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 SPACE AS A TOOL Source: Alternative Officing strategies Steelcase Presentation
  5. 5. Why do you need a Workplace Strategy ? Source: IFMA Research July 2008 Microsoft & Corenet April 2009 => 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 Deliver a more effective working environment
  6. 6. Why do you need a Workplace Strategy ? 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 1 st come, 1 st 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. EXAMPLES Source: Alternative Officing strategies - Steelcase Presentation
  7. 7. Workplace Strategy Methodology Supporting the change <ul><li>Preliminary step </li></ul>The most important is to ensure that the Workplace Strategy MAKES GOOD BUSINESS SENSE Defining the Goals 1 <ul><li>To successfully bring a property in line with </li></ul><ul><li>Corporate goals, it is important to explore: </li></ul><ul><li>Organization’s business objectives & issues </li></ul><ul><li>Existing work environment </li></ul><ul><li>Space & Furniture strategies </li></ul><ul><li>Potential impact on individuals & the organization </li></ul><ul><li>Measurement of success </li></ul><ul><li>Ways to continually adapt the environment </li></ul>
  8. 8. Workplace Strategy Methodology Assessment > A starting point As an organization, the target is also to facilitate interactions, improve the collaboration and ease the company processes Company Assessment 2 <ul><li>A more effective workplace strategy begins with an </li></ul><ul><li>understanding of: </li></ul><ul><li>Why/Where people work? </li></ul><ul><li>The nature of different work activities </li></ul><ul><li>Communication & Privacy needs (individual/group) </li></ul><ul><li>Technology & tool needs (individual/group) </li></ul><ul><li>How often teams are working together ? </li></ul><ul><li>In What ways do they interact ? </li></ul><ul><li>Benchmarking </li></ul>
  9. 9. Workplace Strategy Methodology Creating a Common vision & Workplace concepts Creating Policy & Concepts 3 <ul><li>Based on the Company assessment, you would be in </li></ul><ul><li>position to involve key departments and do a high level </li></ul><ul><li>operational & financial portfolio impact analysis. </li></ul><ul><li>Once your case has been presented and agreed by </li></ul><ul><li>the Executive Management, you can then create a </li></ul><ul><li>common vision (policy) and define alternative WS. </li></ul>
  10. 10. Workplace Strategy Methodology Workplace Strategy Planning <ul><li>Site selection – Prioritize depending on BU needs, </li></ul><ul><li>critical dates, Performance indicators. </li></ul><ul><li>Engage Planners to recommend the options. </li></ul><ul><li>Assess the viability of each option financial </li></ul><ul><li>analysis (NPV/WACC Analysis/IRR & Payback, </li></ul><ul><li>Operating Budget and P&L impacts, Cash impacts) </li></ul><ul><li>Roll out Financial & other operational criteria in a </li></ul><ul><li>scorecard showing both BU & RE objectives. </li></ul><ul><li>Define your recommendation and how this one will </li></ul><ul><li>efficiently support the BU objectives and contribute </li></ul><ul><li>to the success of the company as a whole. </li></ul>Your Real Estate recommendation has been defined and your are now ready to start negotiating with the Business Units and the stakeholders. Planning 4
  11. 11. Workplace Strategy Methodology Implementation, Change Management & Project Delivery <ul><li>Pilot program management </li></ul><ul><li>Change management tactics </li></ul><ul><li>Rollout planning </li></ul><ul><li>Ongoing measurement </li></ul>Implementation 5
  12. 12. Workplace Strategy Methodology Change Management tactics FAILED WORKPLACE CHANGE INITIATIVES <ul><li>Absence of champion or Junior in the organization </li></ul><ul><li>Poor executive sponsorship </li></ul><ul><li>Poor project management skills </li></ul><ul><li>Poorly defined organizational objectives </li></ul><ul><li>Employee Perceive that the change is “done to them” </li></ul><ul><li>Change team diverted to other projects </li></ul><ul><li>Communication occurs much too late and in response to damage already done </li></ul><ul><li>Communication focuses on justification of what employees are giving up in the new environment </li></ul>
  13. 13. Workplace Strategy Methodology Change Management tactics
  14. 14. Workplace Strategy Methodology Change Management tactics
  15. 15. 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
  16. 16. Workplace Strategy Methodology Change Management tactics > Leadership Engagement > Evaluate risks > Top Change Team / Project Team > Realistic schedule > Pilot projects & Case Studies > Develop new Vision => Policies & Tool kit > Sponsor / Champion > Communication <ul><li>Employee Meeting </li></ul><ul><li>Regular e-mail during the 1 st stages </li></ul><ul><li>of the implementation (incl. FAQ) </li></ul><ul><li>video communications </li></ul><ul><li>creation of a website </li></ul><ul><li>allow feedback / forum </li></ul>> Marketing Campaign > 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.
  17. 17. Workplace Strategy Methodology Change Management tactics The Team must adapt to Employee’s reaction
  18. 18. Emotional response to Change Workplace Strategy Methodology Change Management tactics The Team must adapt to Employee’s reaction
  19. 19. Workplace Strategy Methodology Adapt, Measure & Improve <ul><li>Post Occupancy/Project Analysis (Lesson learnt) </li></ul><ul><li>On-Going Change Management </li></ul><ul><li>Refine proposition </li></ul><ul><li>Ongoing measurement – SWOT Analysis </li></ul><ul><li>Continue to brainstorm possible improvements </li></ul><ul><li>& innovations on a regular basis </li></ul><ul><li>Maintain regular relationship with the BU </li></ul>Continuous Improvement 6
  20. 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 Alternative Officing strategies – Steelcase