Mobility Strategy, Carbon Footprint and the Bottom Line

Mobility can dramatically lower your carbon Footprint

By adjusting our RE policy to support the mobile work style we can: –Dramatically reduce the carbon footprint of office work –Enhance organizational capability –Fund the Greening of our office buildings –Still come out ahead on the balance sheet

In the beginning “Home” was next to “Work”

Efficiency drove Work to separate from Home.

Cities pulled people in to Work… For the first time in human history more people live in cities.

The office emerges arranged like a factory

It becomes part of popular culture …and always well used

The age of abundance came and went

This is a wake up call! Globalization Competitive cost pressures Global Warming Continuity of operations Business partnerships Group work Mobile technology Worker mobility Energy costs % Heads-down work 2008 Real estate / FTE Domestic talent pool

Something has happened… 100% An Average of 55% Under Utilization! 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 8:00 8:30 9:00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 Average office space is dramatically under utilized.

A majority of organizations & people today are surprised by the high levels of mobility they are experiencing.

Now organizations are wondering where everyone is…

We still love the idea of our own desk.

Sometimes individuals are necessarily tied to a particular location.

...but more often than not the needs are very simple!

Sometimes dedicated space can become a burden.

...and it is often empty.

Utilization is the key! - Drives technology improvements - Drives policy improvements - Drives increased awareness - Reduces Commutes - Reduces Energy Consumption - Reduces Office Space per Employee - Reduces Carbon per Employee

Before > Underutilized dedicated space > No certainty that the supposed virtue of face-to- face collaboration actually occurs > Legacy filing (often hard copy) > Offices without a pulse

After > Busy, high-energy, highly utilized space with free-address work spaces > Employees are enabled to work anywhere > Better planned, and more flexible interaction

After > Smaller footprint > More discipline in filing/ sharing information > A wider range of task settings

Case Study - Sun Mobility

Sun Employee Satisfaction

Sun Flexible Employees

Case Study - HP Employees

HP Employee Engagement

HP Survey Results More frequent use of collaborative technologies correlates with higher levels of engagement – but use of “sophisticated” collaborative technologies is very limited

HP Survey Results Employees who spend more time mobile are just as engaged as dedicated desk workers

HP Survey Results Hewlett Packard employees, on average, are highly engaged (Score of 3.82 out of 5) „Future of Work‟ Survey June 2007

HP Survey Results The level of densification of the workplace has little impact on engagement

62% found home the most productive workplace 48% claim to work harder now that they are mobile 24% felt that their main office was the most productive work location The Voice of Mobile Workers Practices, Relationships and Components of Effective Workplaces Knoll Workforce Research Global Business Division 2007

Mobility drives organizational improvement > Switch easily between work settings > Collaborate with many. Collaboration focused and valued when in office The Voice of Mobile Workers Practices, Relationships and Components of Effective Workplaces Knoll Workforce Research Global Business Division 2007

Mobility drives organizational improvement > Inspire dedicated-space users to rethink how they best work > Challenge the evolving purpose and value of the office The Voice of Mobile Workers Practices, Relationships and Components of Effective Workplaces Knoll Workforce Research Global Business Division 2007

HP uses green initiatives to cut costs and gain market share “The price and performance of IT are no longer compromised by being green, but are now enhanced by it.” - Mark Hurd, CEO of HP

Net space after data center additions, new business $50 acquisitions etc. Space $20 Base space reduction 2007 2005 2008 2006

Case Study - Bracknell

Bracknell Area Savings Previous Thames Valley Consolidated Bracknell Total Net Usable Area - 451,304 sft Total Net Usable Area - 165,673 sf $8,900 per person $5,400 per person Total headcount = 2,845* Total headcount = 2,686* 63% Area Reduction * NOTE : 50% of ETW headcount

Bracknell Energy Savings 49% Energy Savings

The numbers are too big to ignore! 73,000,000 sf 2007 New Office Construction

National Legislation

State Legislation Executive Order S-3-05 700 600 Projected Business as Usual Million Metric Tons Carbon Dioxide Equivalent +1.2%/yr Historical 500 -0.9%/yr To Meet AB 32 Goal 400 300 200 100 0 1990 1994 1998 2002 2006 2010 2014 2018

Our Assumptions •Modeled on a 100,000sf building •Starts with 30% of staff going Mobile •An initial reduction of 25,000sf •Energy declining proportional to Bracknell •Commutes declining proportional to Sun •Mobility increasing 5% a year

Our Data Our Calculation Method

Mobility Cuts Carbon Emissions

Mobility Cuts Land Consumption

Mobility Reduces Cost

What is the impact? this or this? What does your workspace look like?

We are just getting started… 35% of US companies have a mobility program 26% are developing one 15% have a mobility budget Nemertes Research 2007

If Companies Go Mobile… New metric for Corporate real estate should be “CO2 per person” Calculations show 66% reduction in RE CO2 per person (over 10 years)

If Companies Go Mobile… If new construction in 07 were leveraged by mobility; This would equate to 523m metric tons of carbon over ten years‟ All US coal powered plants scheduled to be built over next ten years would not be necessary

If Companies Go Mobile… If only 40% of companies* did this over 10 years we could save –1.2 billion metric tons of CO2 –21 Manhattan‟s worth of carbon emission per year –800 acres of green land per year * Based on 4.7 billion square of existing office space in the US (Colliers 2007)

Human Resources Respondents want to learn more about employee mobility and change management practices

Workplace Respondents want to learn more about distributed work activity settings, measurement practices and social engagement technologies

What can you do tomorrow? Assess readiness Is the Status Quo acceptable? Can rethinking RE strategy contribute to future business success? How might this link to other competitive initiatives?

What can you do tomorrow? Talk to people Inside your company In other companies To practiced consultants

What can you do tomorrow? Tell the story Use this presentation Do a Utilization Study Calculate the benefits of better utilized space

Thank You!

Mobility Strategy, Carbon Footprint and the Bottom Line

by Logan Wright on Apr 15, 2009

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