UNWIRED RESEARCH


AGILITY @ Work
adopting the corporate six pack




by Mark Dixon and Philip Ross
AGILITY @ Work     The impact of six forces on the way we work




CONTENTS
EXECUTIVE SUMMARY                             ...
AGILITY @ Work     The impact of six forces on the way we work




EXECUTIVE SUMMARY
This report sets out to predict the f...
AGILITY @ Work     The impact of six forces on the way we work




Actions for achieving a corporate ‘six pack’:


 1     ...
AGILITY @ Work       The impact of six forces on the way we work




THE CHANGING NATURE OF WORK
For over one hundred and ...
AGILITY @ Work     The impact of six forces on the way we work




With the rise of mobility, work has become more fragmen...
AGILITY @ Work     The impact of six forces on the way we work




SPACE TO WORK
In the book, Space to Work (co-authored b...
AGILITY @ Work        The impact of six forces on the way we work




THIRD SPACE
Space ‘in between’ the corporate office ...
AGILITY @ Work     The impact of six forces on the way we work




NEW WAYS OF WORKING CASE STUDIES
What is clear is that ...
AGILITY @ Work        The impact of six forces on the way we work




Interpolis, Tilburg, The Netherlands

Insurance comp...
AGILITY @ Work       The impact of six forces on the way we work




Vodafone, Auckland, New Zealand

A desire to attract ...
AGILITY @ Work     The impact of six forces on the way we work




Microsoft, Amsterdam, The Netherlands

Microsoft’s new ...
AGILITY @ Work     The impact of six forces on the way we work




6 FORCES RE-SHAPING WORK
With the early indicators abov...
AGILITY @ Work     The impact of six forces on the way we work




          CULTURE and WORKSTYLE
                       ...
AGILITY @ Work       The impact of six forces on the way we work




                PEOPLE
             For the first tim...
AGILITY @ Work     The impact of six forces on the way we work




Characteristics of the generations



                 ...
AGILITY @ Work          The impact of six forces on the way we work




                  INFORMATION AND COMMUNICATION TE...
AGILITY @ Work     The impact of six forces on the way we work




And so the digital revolution will take almost everythi...
AGILITY @ Work      The impact of six forces on the way we work




The rise of video and the death of distance
Video conf...
AGILITY @ Work     The impact of six forces on the way we work




Some Key Technologies and their potential impact


    ...
AGILITY @ Work         The impact of six forces on the way we work




             TRANSPORT
          Commuting is one o...
AGILITY @ Work     The impact of six forces on the way we work




              SUSTAINABILITY
              While not al...
AGILITY @ Work     The impact of six forces on the way we work




SIX PACK – FIT FOR BUSINESS?
The six forces identified ...
AGILITY @ Work     The impact of six forces on the way we work




CONCLUSIONS
ACTIVITY BASED WORKING (ABW)

The logical c...
AGILITY @ Work     The impact of six forces on the way we work




INNOVATION AT WORK                                     ...
AGILITY @ Work     The impact of six forces on the way we work




WHERE NEXT?
The 6 forces represent the ability for a po...
AGILITY @ Work     The impact of six forces on the way we work


APPENDICES
Our Research

Thanks
John de Lucy             ...
AGILITY @ Work     The impact of six forces on the way we work




About Unwired                                          ...
Upcoming SlideShare
Loading in...5
×

Agility @ Work: adopting the corporate six pack

2,525

Published on

This report sets out to predict the future of work. It presents six trends or forces that are reshaping work, and in turn allowing companies to change the way they organise work. These external forces are: demography, culture, technology, sustainability, transport and property. Together they not only comprise the key overheads of a business, but also the drivers of change that no company can ignore if it is to get into shape as the world emerges from recession.

About Regus: http://www.regus.com/?utm_campaign=slideshare

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,525
On Slideshare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
73
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Agility @ Work: adopting the corporate six pack

  1. 1. UNWIRED RESEARCH AGILITY @ Work adopting the corporate six pack by Mark Dixon and Philip Ross
  2. 2. AGILITY @ Work The impact of six forces on the way we work CONTENTS EXECUTIVE SUMMARY 3 THE CHANGING NATURE OF WORK 5 NEW WAYS OF WORKING 6 SPACE TO WORK 7 THIRD SPACE 8 NEW WAYS OF WORKING CASE STUDIES 9 6 FORCES RE-SHAPING WORK 13 REAL ESTATE 13 CULTURE and WORKSTYLE 14 PEOPLE 15 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) 17 TRANSPORT 21 SUSTAINABILITY 22 SIX PACK – FIT FOR BUSINESS? 23 CONCLUSIONS 24 ACTIVITY BASED WORKING (ABW) 24 INNOVATION AT WORK 25 FLEXING SPACE 25 WHERE NEXT? 26 APPENDICES 27 Our Research 27 About the Authors 27 Philip Ross 27 Mark Dixon 27 About Unwired 28 About Regus 28 UNWIRED Research 2 © Unwired Ventures Ltd, 2010 All Rights Reserved
  3. 3. AGILITY @ Work The impact of six forces on the way we work EXECUTIVE SUMMARY This report sets out to predict the future of work. It presents What is clear is that work is rapidly becoming something we six trends or forces that are reshaping work, and in turn do, and not a place we go to. Mantras such as work ‘on the allowing companies to change the way they organise work. pause’, or ‘management by results’ show that supervision and These external forces are: demography, culture, technology, presenteeism are giving way to trust and empowerment. sustainability, transport and property. Together they not only People will in the future be increasingly free to choose their comprise the key overheads of a business, but also the drivers work/place. of change that no company can ignore if it is to get into shape as the world emerges from recession. This has a big impact on sustainability. Two of the key contributors of carbon emissions are commercial buildings That shape is a corporate ‘six pack’ - a new way of structuring and commuting to those buildings. Both can be challenged work, based on a new set of assumptions and an understanding by changing patterns and places of work. of new opportunities. This can be achieved through the adoption of new approaches to workplace provision such as But there is still a gap in the provision of places to work ‘on activity based working and a new view of a polycentric city. the pause’. This report will look at early examples of ‘third spaces’ and discuss the growth needed to accommodate an We believe that these six drivers will reshape organisations increasingly agile workforce. We predict a new network (both in the ‘tennies’ to be fitter, and leaner – the ‘six pack’ for the virtual and physical) that in effect becomes the ‘office’. This corporation that provides a much lower cost base for work. hub and spoke approach will be crucial, as multiple locations We have looked at the ‘cost of work’ – a measure of the in a city give rise to consolidation, and continued transport overhead required today to allow a person to be productive. congestion make movement around a city a continuing issue For a leading, blue chip organisation this is anywhere – immobility in the city will lead to a growth in the demand between $19,000 and $22,000, at the moment per person per for multi-centric working. annum in a capital city. The target for some companies is now under $7,000, achieved through innovation, mobility and the Work will no longer be about a building, a dumb container, to adoption of new workstyles. which people commute and which ‘houses’ the corporation’s infrastructure, data, technology and files. Work is now New technology will have a dramatic affect on how and permeable – the boundaries are blurring and there are better, where work is done. We present the key drivers and enablers more efficient places to house technology and data. The of change, for both small and medium sized businesses as future is being redefined. well as multi-national enterprises. Trends such as accelerating the adoption of mobility, virtual workplace portals and the This future will result in corporations leasing less real estate. migration to ‘cloud computing’ will see a gradual transition to As they emerge from recession, fit corporations that have ‘empty’ or thin office buildings, devoid of all technology. adopted ‘six-pack’ thinking will be able to achieve growth in headcount without taking on additional square feet. This research not only looks at evidence based on case studies from early adopters of radical workstyles across the globe. It also discusses issues with leading heads of real estate from global companies to understand their thinking, concerns and aspirations for the new world of work. Time Magazine UNWIRED Research 3 © Unwired Ventures Ltd, 2010 All Rights Reserved
  4. 4. AGILITY @ Work The impact of six forces on the way we work Actions for achieving a corporate ‘six pack’: 1 Real Estate Review workplace strategy and introduce activity based working and mobility. Gather data on utilisation rates and real cost of occupancy as well as churn costs. Create an aspirational vision for new workstyles. 2 Culture Introduce change management to prepare people for new workstyles. Move from management by supervision to a results based approach. Identify champions for innovation and change. 3 People Understand demographics and profile the workforce to identify the needs of different groups by age, job function and psychometric analysis. Engage with the workforce to develop opportunities for change. 4 Technology Identify key drivers and enablers of change. Then align technology to the real estate strategy and introduce the appropriate tools for new workstyles. 5 Transport Realisation that continued stress in transport corridors will require a new approach to commuting and mobility, and the adoption of polycentric thinking. 6 Sustainability Reduced quantity of commercial real estate leased, together with better management of property assets, reduced commuting and greener technology will allow targets to be met. UNWIRED Research 4 © Unwired Ventures Ltd, 2010 All Rights Reserved
  5. 5. AGILITY @ Work The impact of six forces on the way we work THE CHANGING NATURE OF WORK For over one hundred and twenty years our workplace - the corporate hierarchy. The office has reflected status and power, office - has been dominated by fixed technology. From the not role and function. But it has also represented stability and Remington Typewriter and Bell’s telephone in the 1880s certainty, and for the company inflexibility and sloth. Change to IBM’s PC in the 1980s, there has always been heavy was difficult, expensive and slow. equipment on desks that has tethered down the office worker. The growth of the networked computer has resulted But this approach to workplace is increasingly redundant. in an ‘intelligent office building’, engineered to house, power Most people no longer sit behind desks all day carrying out and cool the servers and switches that create the network, repetitive tasks. In fact research shows that the majority of process and store corporate data. And a complex industry desks, typically 55%+, in an average office are empty at any one has grown up to house this connected real estate, from raised point in time. More and more work is collaborative, and people access flooring to cable managed systems furniture. spend more time working with others. Having a telephone extension number that represents a piece of furniture or a But you can look back into the mid-1800s at a pre-IT era when room is archaic in an age of fast communications. the workplace had no technology at all. Clerks with pens at simple desks or benches were the predominant model. And And while desks are usually empty, research shows2 that you we believe that we are heading ‘back’ to an under-engineered, can never find a meeting room. Space for teams, projects, technologically sparse workplace environment, at least in the M&As, pitches or war rooms are needed but not available. eyes of the user or occupant. As the Financial Times stated: The types of spaces that people will demand for the types of “Fifty years ago computers were absent from office life… In work undertaken in buildings are changing. 50 years time things will be much the same. There will be no machines on our desktops.”1 When people do find a room for a team session, the barriers to collaboration and connectivity are extreme. Complexity As well as heavy, personal desktop technology, paper and to get people onto a network, sharing resources such as a personal files have tied the worker to his or her desk. People printer or projector are substantial in most workplaces today. store many linear meters of paper and filing each, at or near And for non-employees with so-called ‘alien devices’ it can be their desk. In many workplaces, between 15 and 17 % of floor difficult or impossible to connect and use peripherals such as space is given over to storage, and the paperless office has printers. yet to materialise. Yes much is about to change and challenge not the use of paper but the need to file and store it. ‘Digital Now, with the introduction of mobile, portable technology flow’, new display technology, tablets and ebooks will all and the ability to communicate across distance at little or reduce the ‘half life’ of paper. no cost, many of the fundamental rules of office life will be challenged. There is something significant happening to the Allocating one person to one desk or office has been the nature of work, and the places created to house it in the 21st predominant approach to organising work, clustering Century. people by department in a building that represents the static “Fifty years ago computers were absent from office life… In 50 years time things will be much the same. There will be no machines on our desktops.” Financial Times 1 1 Financial Times, The Office is future-proof, Special Report on the Future of Work, Monday September 27 2004 2 UNWIRED research report 2008 UNWIRED Research 5 © Unwired Ventures Ltd, 2010 All Rights Reserved
  6. 6. AGILITY @ Work The impact of six forces on the way we work With the rise of mobility, work has become more fragmented example, that 5 people share say 4 desks. Sharing ratios are and staccato – people dip in and out of work, and increasingly often the limit of current thinking, and represent a first step on ‘work on the pause’. The office has become one of a number of the journey to a new workstyle. locations in which work can take place. But the other spaces in which people try to work are often challenging. A coffee The terms ‘Hot Desking’, alternative officing and ‘Hoteling’ were shop, where there may be WiFi connectivity but no power or born, alongside the corporate initiatives such as SMART, Free ability to print. A transport hub where there is no place to get Address, iWork, my work and so on. They describe the early away from noise, or an hotel where there are no private work examples of introducing new workstyles. But all too often spaces. they were attempts to shave cost and share desks. There was little gain for the individual and the spaces created were often We predict the rise of new destinations and locations for work; poor and unappealing. Now a new approach is evolving. places in between the home and corporate centre. Many of the current examples of new workstyles owe their NEW WAYS OF WORKING origins to a few pioneers. Apart from the obvious candidates in accountancy, companies such as SOL (a cleaning company), Chiat Day (an advertising business), Digital Equipment Mindful of these trends, and with a desire to cut costs, Corporation (a computer company) and British Airways (the companies have started to experiment with flexible working airline) began to make radical advances in the way they used and introduced the idea of hot desking or desk sharing, with work space. moderate ambition of occupancy efficiency to the extent, for “Whereas the new mode of “Mobile people need working was once an exception, somewhere to touch now the office will be seen as a down.” last resort.” Chris Hood, Hewlett Packard Mark Tamburro, Nokia UNWIRED Research 6 © Unwired Ventures Ltd, 2010 All Rights Reserved
  7. 7. AGILITY @ Work The impact of six forces on the way we work SPACE TO WORK In the book, Space to Work (co-authored by Philip Ross first commercial buildings in the world, where people clustered and Jeremy Myerson) four key trends were identified for by profession, skill or trade. Now we see a re-emergence of the knowledge company, based on research with over the Guild, as employment by the corporate entity is joined 200 businesses worldwide. These are represented by the by freelance and independent careers – the portfolio workers diagram and show the tensions at work, between permeable that now form a major part of many organisations. and contained work, and between high and low corporate visibility. The BBC is perhaps the first to experience the re-emergence of the Guild as workplace. Its workforce is a mix of employees The corporate office becomes an Academy – a place for and independents – production companies and freelancers people that provides choice and empowerment, enabled by that work on programmes and use BBC workspaces. As Chris technology and an accepting leadership culture. This balances Kane (BBC) explains, “people want to work with us. Freelancers with the Agora – the increasing ability to be effective ‘in the are a big proportion of our population.” field’, in front of customers or working from new, third spaces. It means that people have to come back to the corporate In the diagram below, people find their own balance or office on a less frequent basis and so challenges the need to equilibrium, based on their profile. But what is clear is that give them a desk. the ‘academy’ corporate centre will contract, while work in the agora and lodge will increase. As Chris Hood from Hewlett The other trends are about new space. Working near the Packard states, “Mobile people need somewhere to touch home, in the community, was called Lodge to evoke the period down.” And so new destinations are needed. in history when piece work from home, or community based working, commerce and trade were the norm. A regrouping by people from the same profession was also recognised – the 21st Century Guild. Guild buildings were the As Chris Kane (BBC) explains, “I never work at home; “People want to work I only work remotely.” with us. Freelancers are John Killey, Citigroup a big proportion of our population.” Space to Work Four key trends in the Knowledge Economy UNWIRED Research 7 © Unwired Ventures Ltd, 2010 All Rights Reserved
  8. 8. AGILITY @ Work The impact of six forces on the way we work THIRD SPACE Space ‘in between’ the corporate office and home environment Another innovator in third space is The British Library next has been referred to as third space. And a range of innovative to London’s new Eurostar terminal at St Pancras. The Library ideas have emerged, from clubs and hubs to serviced offices initially provided WiFi connectivity for the 4000 people that and public buildings. came in each day, but demand for space to work was so great that a free wireless workzone was created in front of the King’s library. The space provides good ergonomic furniture, with PRIVATE PRIVILEGED PUBLIC free power (delivered to the arm of sofas) and task lighting. SoHo House The Hub Starbucks It has proven to be so popular that now 5000 people use the The Hospital Regus British Library building each day, with 1000 people a day just using the space for work and meetings before heading on, for example, to St Pancras or Kings Cross stations. Using Frank Duffy’s3 well known workplace descriptors, the idea of third space can equally be categorised as public, At Regus’ Berkeley Square centre, a club workspace has been private and privileged. From the free space available in public created to allow people a drop in destination that is flexible, buildings that is being created for mobile workers, to the shared and informal. Private work pods are interspersed with private members club where you have to be nominated and soft seating and meeting spaces that people use as if they were recommended to join, a host of options for third space exist in an airline lounge. More formal space can be booked, but for and more are set to emerge. many of Regus’ Platinum and Gold card holders, the lounge is exactly what is needed for ‘work on the pause’. A professional One of the most interesting third spaces is The Hospital, a club space to drop into, connect and work. for media executives that was set up and funded by Paul Allen (a founder of Microsoft). Members pay an annual subscription, But the range of current options available to agile workers and have use of a building in London’s Covent Garden where is limited and often not fit for purpose. A café that does not they cannot only work, meet and eat, but also screen a film, provide power, a public space that has no acoustic privacy or use a recording studio or make a television programme in a a private club that offers poor wifi connectivity and no facility full, state-of-the-art studio. to print. Third space needs to become as sophisticated as a modern workplace, with a range of facilities that provides A space that can be shared, that allows high cost capital effective destinations to work ‘on the pause’. intensive spaces to be utilised well and that gives people access to resources that they otherwise could not justify, provides a new model. The Hospital British Library Regus, Berkley Square “Our wireless workzone has “We are deploying home increased visitors to the based working for all global British Library significantly” locations... and we are looking John de Lucy, British Library very carefully at in between places” Daniel Johnson, Accenture 3 Frank Duffy, DEGW UNWIRED Research 8 © Unwired Ventures Ltd, 2010 All Rights Reserved
  9. 9. AGILITY @ Work The impact of six forces on the way we work NEW WAYS OF WORKING CASE STUDIES What is clear is that many organisations have now adopted what There are hundreds of examples of new ways of working can be broadly defined as ‘new ways of working’. That is they programmes. Some are more adventurous than others, but all have broken the ‘one-desk-one-person’ model and introduced challenge the premise of the traditional office. The trends can something different. Solutions, definitions and concepts vary be seen in every part of the globe, in companies big and small from one business to another, but the trend is clear. People are and in every industry and sector, public and private. becoming mobile, enabled by new technology and given the trust and empowerment needed to work in a different way. As they experience, and are equipped for mobility, inside their workplace, they will also be able to work from a range of new destinations and use their experience to work in a different way. Nokia, Beijing, China Situated on one of the ring roads in Beijing, the new Nokia campus has created a state-of-the-art building that provides a unique campus for R&D in China, attracting the best talent in a competitive market. With the congestion problems in Beijing, mobile workers such as sales people and engineers spend much of the time on the road and when they are in the office share workspace, using the mobile units below. Business Transport Centralised ‘academy’ with Central location on an outer ring road in one Benefit enabled mobile workforce of the world’s most ‘immobile’ cities. Flexible working enabled for the mobile workforce. “In China we have given our sales force Regus gold cards as part of a pilot study providing unlimited walk-in access to Regus Beijing network.” Colin King, Nokia Nokia, Beijing UNWIRED Research 9 © Unwired Ventures Ltd, 2010 All Rights Reserved
  10. 10. AGILITY @ Work The impact of six forces on the way we work Interpolis, Tilburg, The Netherlands Insurance company Interpolis has broken the mould and created a very different office based on teams and tasks, enabled by mobile technology. Over 3000 people based in their purpose-designed building work in activity based worksettings that range from weavers huts to stone houses – all designed by some of the top Dutch artists. The workplace has made a substantial impact on the recruitment and retention of staff. And in the process they saved €90m on capex and over €8m per annum on opex as churn costs have been reduced to zero. Business Real Estate Capex and Opex reduction Reduction of real estate leased by 30% has been Benefit achieved in new ways of working programmes. Churn costs have been reduced to near zero. Macquarie Group, Sydney, Australia Macquarie Group’s new building on Shelley Street in Sydney has adopted activity based working, with over 2500 people sharing a range of spaces that they choose based on a particular activity. The spaces are rich and varied, with a dynamic central street as well as a plaza area on each floor. Everyone carries a laptop and uses wireless technology to connect, so people can work from anywhere. Macquarie has reduced paper by 73% and one of the surprising findings from post-occupancy is that use of lifts (elevators) has reduced by 50% as people choose to walk up the central stairs between floors. Business Sustainability Paper and storage Macquarie has reduced paper used by 73%, Benefit reduction with a 78% reduction in storage space required (from 5km to 1km of files) and a reduction in printing of 52% due to Follow Me Printing – equivalent to 42 tonnes of paper p.a. Interpolis, Tilburg Maquarie Group, Sydney UNWIRED Research 10 © Unwired Ventures Ltd, 2010 All Rights Reserved
  11. 11. AGILITY @ Work The impact of six forces on the way we work Vodafone, Auckland, New Zealand A desire to attract and retain young, talented people was one of the key drivers of this innovative workplace that presents an informal, colleigate atmosphere. 1300 people have no desk, and all are equipped with the latest mobile technology. People choose to work either at a shared workstation, or in one of the more social, café style environments. Business People Attracting and retaining A more vibrant work environment has been Benefit talent shown to be a positive factor in attracting talent. Googleplex, Mountain View, USA With over 16,000 people on their Mountain View campus, Googleplex is a remarkable mini city of people and places. As you would expect in California, the campus has a rich variety of outdoor spaces from restaurants to basketball courts. As well as fairly traditional workstations, much of the internal space is given over to common, shared spaces from cafes for grazing to lounges, seminar rooms and social space. Google make much of their 20% time philosophy, and Googlers have plenty of opportunity to find ‘20% space’ to be inspired. Business Culture Innovation The focus on 20% time has resulted in many of Benefit Google’s innovations – Gmail, Google maps and so on. People have the ability to use shared space for innovation and inspiration Google, Mountain View Vodaphone, Aukland UNWIRED Research 11 © Unwired Ventures Ltd, 2010 All Rights Reserved
  12. 12. AGILITY @ Work The impact of six forces on the way we work Microsoft, Amsterdam, The Netherlands Microsoft’s new campus at Amsterdam’s Schipol airport changes the rules. Nobody has a desk, and the workstyle is activity based working. A range of spaces have been created, from small private cocoons for concentrated work and for on screen working and review by one or two people, to open team tables and private, individual carrels. Everyone uses a laptop, and the space has no fixed phones at all, with Vodafone and Microsoft’s Enterprise Voice solution providing converged telephony and messaging that is delivered to a person, not a desk. The workplace is almost paperless, with people printing on average only one page each per day. Business Technology Death of the desk phone A move away from fixed telephony to true Benefit ‘fixed-mobile’ convergence, with one software interface providing unified comminications – connecting people and not desks Microsoft, Amsterdam UNWIRED Research 12 © Unwired Ventures Ltd, 2010 All Rights Reserved
  13. 13. AGILITY @ Work The impact of six forces on the way we work 6 FORCES RE-SHAPING WORK With the early indicators above that work and the workplace is changing, we now predict an acceleration of these trends based on six key forces: Real estate • Culture and workstyle • People • Information and communication technology • Transport • Sustainability REAL ESTATE Real estate overhead and cost reduction has To get a picture for the future, a leading global technology become one of the key drivers of work style company with over 100,000 people has introduced new innovation. As well as reducing the amount of ways of working and mobility and in doing so has reduced real estate needed, companies are also driving out opex and occupancy costs to $4,000, per head per annum (rent, rates, downtime by focusing on operational efficiency. utilities, services etc) – less than half the previous costs per capita. Real estate costs today represent for most organisations the second biggest overhead after salaries, and this is now under Even the public sector and government estate is undergoing scrutiny as companies state that they will grow in headcount change. In the UK, the Office for Government Commerce without taking on more square feet. (OGC) states that central government occupies over 100 million square feet of space. The average cost of providing In capital cities such as central London, the cost of a desk office space in London is £7700 per person per annum, and per person per annum is somewhere between $19,000 and across the UK it averages at £4178 per person per year. And $22,000. This figure includes rent, rates and services charges this amount is falling year on year. but often excludes technology. And so cost reduction can now be achieved through new ways To provide a measure of the scale of overhead that offices of working that require less space. But operational costs can contributes as a % of turnover is important. For example, also be removed, notably churn costs – the moves and changes Philips, the electronics giant, has 118,000 people worldwide which for some companies are at 80%+ - that is 8 out of every based in 877 buildings on 730 sites in 69 countries. This totals 10 people are moved around the building each year. The cost 6million square metres and costs the business annually €636m of churn can vary, but anything from £400 to £1000 per person (for real estate and facilities). Interestingly this represents 2.4% per move has been stated. One investment bank found that of turnover. they spent $8m in churn in London in one year alone. But companies are now pushing back against these costs. So corporate spaces we believe will be smaller, based on Nortel, the telecommunications company, has 9000 people an Academy model, with flexible, churn free space, and in 186 locations worldwide. They have taken occupancy costs companies will begin to rely on other destinations for work to from $12,000 to under $3,000, per person per annum. 126 sites complement these smaller centres. “The optimal real estate have been closed and $129m taken out of the portfolio over a solution may now involve only one (corporate) site in any period of only 3 quarters. Now over 2500 people carry Regus major city but this may be inconvenient for some customers Businessworld cards, so they can make use of a network of and employees who are on the wrong side of the city”, Chris workspaces, and in turn Nortel is moving towards managing Hood, HP. And so to minimise travel and down time, we see a only five corporate hubs. demand for a polycentric approach. “We need spaces on the fringes of the CBDs “The high value-add is the ability to assemble (central business districts) if we are going to team space at the drop of a hat. We win a help people work in a dispersed manor; they contract, a twenty person team needs to be need to pop up whenever.” assembled and we need to hire a project room Head of Workplace, Global Technology Company for six months.” Chris Hood, HP UNWIRED Research 13 © Unwired Ventures Ltd, 2010 All Rights Reserved
  14. 14. AGILITY @ Work The impact of six forces on the way we work CULTURE and WORKSTYLE But these are just artefacts of yesterday’s order. People can still One of the most dramatic changes that is underway feel belonging – just not to one small desk. Done correctly, is an acceptance of management by results rather people feel ownership of a community space – rather like a than supervision. The outdated notion of being private members club. paid for the number of hours spent in the office is no longer valid in an age of distributed working. But for many middle What is clear is that status has been correlated to space for managers, letting go of ‘watching the back of peoples heads’ is over a century and for many, a career climbing the corporate a difficult transition. For people at all levels, distributed work ladder has been manifested by the journey to the corner office. has its issues. The SVP label has a physical incarnation in today’s world of corporate hierarchy. And while management report challenges in managing without ‘presenteeism’, in the current climate, people have also But in a matrix, team orientated organisation these tokens reacted with a need to be present, for job security and being become vestiges of yesterday’s approach. People find new recognised and remembered. This is partly due to ineffective ways to demonstrate position. The office no longer represents solutions to ‘virtual presence’ - the technology that can fill the the hierarchy. void left when people no longer sit together by department in fixed places. A ‘circle of trust’ is an approach used successfully One of the positive outcomes from flexible working is work- to allow a different paradigm. A company trusts its people to life balance. An overworked term that for many has little represent its values to clients, and so the same trust needs to resonance given that mobile email has extended working be vested in people and the choices they make over where hours and blurred the boundaries between work and ‘private and when they work. life’. But people spend on average 54 minutes a day commuting to their workplace. In major cities this can easily double. And This gets more interesting as more and more work is distributed in many developing economies, cities are becoming immobile on a global scale. For example, over half of London’s top law – it can take hours to move around Beijing or Dehli. firms now outsource typing to South Africa – a country within the same time zone, English speaking with qualified people at We have witnessed a dramatic growth of flexible working. For a fraction of the cost of London. example, 14% of British Telecom’s workforce are now home based. People have the tools to work anywhere. Now culture Adapting to a new workstyle is also a challenge for many and management style is catching up to create new ways of people. Years of sitting behind the same desk, day in day managing without physical presence. out, create a pattern of behaviour. The overflowing ‘to do’ pile, the ‘to read’ pile, post-it notes with phone messages and reminders, pictures of the kids and trophies and collected mementoes represent our nesting instinct. “Much of our work continues to happen “It’s not about having a physical place – its at client sites, and we certainly consider what you contribute to a company.” “travel” a work location - we have as Mark Tamburro, Nokia many people in hotels each night as we do in our consulting offices each day!” Daniel Johnson, Accenture UNWIRED Research 14 © Unwired Ventures Ltd, 2010 All Rights Reserved
  15. 15. AGILITY @ Work The impact of six forces on the way we work PEOPLE For the first time ever, there are now four Baby-boomers generations at work. This creates a unique challenge, as each has its own characteristics, aspirations and This group is so large; it is divided into early boomers, born preferred workstyles. from 1946 to 1954, and late boomers, with dates from 1955 to 1965. Both share a strong emphasis on individuality, The newest entrants to the workplace, the Millennial youth, and adventure. They are confident in their prosperity Generation (also called Generation Y), promise to exert because they were raised amidst economic growth. Boomers even more influence than their Baby Boomer parents. This have humanised the workplace, making it comfortable and group, born between 1980 and 2000, is more numerous encouraging innovation at all levels. They are exploring than the boomers. It is also a generation celebrated for its retirement in interesting ways – they are expecting an confidence, its dedication to equality in the workplace, and extended active and vital work life by working part time, its global perspective. But most important, the Millennial telecommuting or consulting. Generation takes information delivered by digital technology for granted. For them it is intuitive, invisible and essential and Generation X the infrastructure that delivers it, ubiquitous. They are used to living on line and being synchronous does not present a These born between 1966 and 1977 are typically identified as problem. They have a disregard for privacy, adapting to the slackers, winners and cynics. There is tension between them transparency of social networks and openness of location and the boomers. If these children of divorce and day-care aware services. As a social impact, for probably the first time had a slogan, it might be a sarcastic, “thank you for the world in history, these young people are considered authorities on you’re leaving me.” But Gen X is also very entrepreneurial. They something that the older generations haven’t mastered in the were raised in times of idealism and equality, so they lack the same way. social and cultural limitations of their predecessors. What are the characteristics of the other three Getting ready for the digital natives – the ‘net’ gen generations? What is clear is that the next generation (still at school) will Traditional generation be even more radical in their attitudes and approach. The ‘net gen’ or digital natives have grown up with the internet and Born between 1928 and 1945, these are the oldest members of use technology in a very different way to other generations. the workforce. They tend to exemplify faith in the Institutions, They are learning with the internet, use SMART interactive loyalty, willingness to conform, and the importance of hard white boards in their class rooms and carry with them more work. They respect their employing organisations and expect computing power than their predecessors had in their ‘paternalism’. Many of this generation are retired. But a growing workplace. They will be the generation that moves the goal percentage is staying in the workforce, offering outstanding posts – the first to be able to live on line, to read on screen and knowledge and experience. to be happy with less privacy on ubiquitous connectivity that still leaves the digital immigrants out in the cold. The ‘net’ gen classrom UNWIRED Research 15 © Unwired Ventures Ltd, 2010 All Rights Reserved
  16. 16. AGILITY @ Work The impact of six forces on the way we work Characteristics of the generations Born Age Issue Solution Traditionals 1928 63+ Will not retire but will work Bespoke areas for shared space with to 1945 part-time. treatment such as higher lux/lighting levels, areas to relax/have a nap, different furniture. Baby Boomers 1946 43 - 62 Mixed comfort with May still need allocated space as they to 1965 technology, mostly digital have climbed the ladder and are often immigrants, now leading the resistant to change. enterprise. Generation X 1966 31 - 42 Too late to be natives but Open to change and used to working to 1977 savvy with technology. Prime flexibly. Best group to introduce new contenders for flexible working. workstyles. Millennial 1980 11 - 30 Experienced PCs in the home Open to and indeed expect radical Generation or to 2000 and at college. Some learning workplace solutions. Very suited to Generation Y with technology. First digitally activity based working and advanced literate group to arrive in the technology. workplace. Net Gen Since 2000 Under 10 Will be net savvy – born with Will not need paper and probably the internet – true digital be the first group to embrace virtual natives. workplaces. UNWIRED Research 16 © Unwired Ventures Ltd, 2010 All Rights Reserved
  17. 17. AGILITY @ Work The impact of six forces on the way we work INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) New digital technology is emerging that will one where people do not have to commute in to a ‘dumb change the nature of how, why and where work container for work’. The digital office is being defined. is done. The rise of a new breed of technology is challenging not just the world we live in, but is beginning to The digital world assumes that you can connect from anywhere. redefine the very construct of the organisation. Becoming Today from a laptop and ‘smart’ phone; tomorrow from digital will change that equilibrium, resulting in a new any device through a browser. The combination of wireless relationship between ‘man and machine’, between the city network connectivity, high performance mobile devices, and suburb, and between employer and employee. high speed networks and new, software-led connectivity and ‘unified’ messaging tools have in effect sounded the death Being analogue wasn’t much fun. For the past 120 years office knell of the ‘desk phone’ and the desktop personal computer. workers have been tied to desks, tethered by the heavy, cabled technology that enabled their usually repetitive work to take The biggest technological barrier had been paper, but even place. Taylor’s time and motion was the predominant view of here its half life is diminishing and while people will still always efficiency, and ever since Alexander Graham Bell invented the use paper, it need not be stored and certainly not kept at the telephone in the 1870s, people have been tied to furniture desk. But paper is also threatened as we become digital. The for work and communication. The desk and private office previous IT revolution was basically to take paper and turn it became synonymous with status, territory and belonging in digital. And this meant that what you viewed on screen could the organisation. then be re-output to paper. No longer. What is displayed is now a mix of media, with flat, two dimensional text juxtaposed But slowly things have started to change. In the 1990s, email, with video and Uniform Resource Locators – the url links the laptop and the cell phone became the tools for a new that help us navigate the internet as well as hover or hidden mobile elite. This was followed by the growth of the internet, information. What you print no longer represents what is on with its redefinition of telephony, networks and collaboration. the screen. Then we witnessed wireless networks, mobility and ubiquity. Now we have digital flow, data centres and the cloud. Digital Now digital technology will take that data, and soon technology is re-writing the rules. applications, out of the office altogether. The rise of the corporate data centre will now be superseded by cloud So far these rules have applied to the edges of corporate life. computing, as applications, processing and data are managed Better ways to communicate, mobile email and the Blackberry via the internet in anonymous grid or utility computing farms revolution, multimedia and multifunctional devices. Faster managed by the likes of Google, Microsoft, Amazon and HP. connections and speed of communication have changed how The efficiency of these spaces with their ‘blades’ and shared we work to some extent. But now, the opportunity exists to resources through ‘virtualisation’techniques, will challenge any look at ‘digital’ as the enabler for a different way of working; corporate solution on cost, efficiency and green credentials. “As technology has improved, so has people’s understanding that they don’t need to be in a fixed place to perform.” Mark Tamburro, Nokia Picture Credit: Intel UNWIRED Research 17 © Unwired Ventures Ltd, 2010 All Rights Reserved
  18. 18. AGILITY @ Work The impact of six forces on the way we work And so the digital revolution will take almost everything out What you view on screen of the corporate office. We will in effect occupy from a digital perspective an empty building in the future, devoid of the is now a mix of media, computing power that keeps the corporate pulse. And with with flat, two dimensional the migration to the cloud will come the realisation that work, text juxtaposed with increasingly will be done from anywhere, at anytime. The video and hover or hidden necessity to co-locate in a down town office building, sitting information. What you print adjacent to departmental colleagues to carry out a task will be seen as yesterday’s approach to work in the analogue era. no longer represents what is on the screen. So with mobility and new devices, digital flow and the cloud, what is left for the office? The rise of digital does not mean the decline of bricks and mortar. People will still need to work, and will need a place for work that is not the home. Collaboration will require people to co-habit. And there will always be the need to create a branded environment that represents the corporation and acts as an extension to the corporate brand. The digital revolution will not slow down. New devices, city wide WiMax networks and a host of other innovations will continue to allow innovation and change. The next step change will see location aware systems and services that will combine with knowledge management software and real time buildings to actually bring people together when they are in the same space and have something to talk about. Engineering the chance encounters in tomorrows digital organisation will not only remove downtime but become the catalyst for an acceleration of the speed of corporate activity and human interaction. Picture Credit: Plantronics UNWIRED Research 18 © Unwired Ventures Ltd, 2010 All Rights Reserved
  19. 19. AGILITY @ Work The impact of six forces on the way we work The rise of video and the death of distance Video conferencing is about to come of age. A technology There will be an increasing demand for video conferencing that has been around for many years is reaching critical mass, ‘on the pause’, especially in shared spaces such as work hubs thanks to the spread of broadband and miniature webcams and third spaces. With the capital investment and operational embedded into devices. The credit crunch-led travel bans has costs remaining high, these rooms need high utilisation to be also had a remarkable impact on the acceptance of high quality cost effective, and so more and more companies will accept video conferencing as a replacement to physical meetings, them as a shared resource. and the market is expanding, realising the notion of the ‘death of distance’. When people can effectively meet and ‘eyeball’ For many organisations with specialist spaces, from recording each other rather than jumping on airplanes, distributed work and television studios, to immersive spaces and collaboration really works. rooms, sharing capital intensive spaces provide an attractive solution. “Moving away from specialised space, so that it was At the desk, there will be a dramatic expansion in the use provided (by a third party) would be attractive. It needs to be of high definition (HD) video for ad hoc conversations and multi-purpose, multi-functional,” suggests Chris Kane at BBC collaboration sessions. HD video will become required as a Workplace. core communications tool, and with this growth will be a new realisation of the importance of workspace design as the backdrop becomes important as well as acoustics and technology. “Between 10 an 15 hours of “Moving away from specialised telepresence in an average space, so that it was provided week – if we are an example of (by a third party) would be what is coming that is what its attractive. It needs to be multi- about.” purpose, multi-functional.” Head of Workplace, Global Chris Kane, BBC Workplace Technology Company Polycom’s roundtable video conferencing unit in Microsoft’s office of the future UNWIRED Research 19 © Unwired Ventures Ltd, 2010 All Rights Reserved
  20. 20. AGILITY @ Work The impact of six forces on the way we work Some Key Technologies and their potential impact Description Impact on work and the workplace IP Telephony and Softphones Using data networks and the Cost savings and changing economics of location. internet to carry voice The ‘death of distance’. Enabler of new work styles. Fixed-Mobile Convergence Mobile phones as ubiquitous New ways of communication. Consumers able to devices – always on with internet price compare with always on internet. access and IP Telephony Telepresence and Halo High quality video conferencing Death of distance, allowing reduced travel and new ‘av’ technologies for and increased collaboration. New types of Smart surfaces collaboration. collaborative project space in buildings. Mobile Internet Devices New format devices Always on portable internet tablets offering (MIDs), slates and tablets synchronous access to social networks, messaging and applications. Ultrawide Band and RFID Active location tags Used for sustainability in offices, to track people and measure real time occupancy. WiFi Wireless Ethernet Meru networks provide new single cell coverage in buildings with RF barriers on the facade. Near Field Communication Secure Payment System for Mobile Ability for operators to begin to offer micro Phones payment systems. Emergence of the keyless building. WiMAX Metropolitan wireless internet Changing nature of the high street and urban coverage plan. UNWIRED Research 20 © Unwired Ventures Ltd, 2010 All Rights Reserved
  21. 21. AGILITY @ Work The impact of six forces on the way we work TRANSPORT Commuting is one of the most challenging social These numbers and forecasts point to a transport infrastructure behaviours associated with work. Affecting work- at breaking point, at capacity, with only expensive options life balance, productivity (downtime) and urban available to it for expansion and growth. And this situation planning and infrastructure, it consumes an average is repeated in most other developed urban areas around the of 80 minutes a day worldwide according to figures from the world. Universities of Sheffield and Michigan. Our motorways (freeways) are not much better. Road In Thailand, the country with the longest commuting times in delays from traffic jams or accidents have a huge and often the world, a total of 37 million hours is spent travelling to work unquantified economic impact. For example, it has been shown everyday. And in Bangkok, the average travel speed during that a 13 minute holdup on the M25 motorway (freeway) in the peak rush hour is now just 7 miles per hour. the UK following an accident equates to 18 driver days lost. But current transport planning in most major cities still But what if distributed working changed patterns of correlates transport growth to economic growth. Massive commuting and so use of transport infrastructure? Can investment plans at best aim to keep corridors at their commuting patterns be changed? Could the 1/3 of inhabitants current stress levels. For example, in the current London of ‘outer London’ that commute into the centre each day plan, population is forecast to increase to 9.1m by 2031, with instead, work locally in their community – at least for a part of employment increasing from 4.7m to 5.3m jobs. A predicted the working day? 475,000 new jobs in business and financial services will be created. According to Michele Dix, Managing Director of Transport for London, an expansion of transport capacity by 20-30% into central London is required. For example, Crossrail will move 1.5m more people. But even with all the proposed investment, she predicts, “most corridors are stressed and will continue to be.” Taking a capital city such as London, 24 million trips are made every day, 3 million people use the tube each day, there are 11 million car and motorcycle trips a day and 9.5 million people walk or cycle. A staggering 2 billion bus journeys are made each year. AVERAGE GLOBAL COMMUTE TIMES (ONE WAY) Source: SASI Group (University of Sheffield) and Mark Newman (University of Michigan). UNWIRED Research 21 © Unwired Ventures Ltd, 2010 All Rights Reserved
  22. 22. AGILITY @ Work The impact of six forces on the way we work SUSTAINABILITY While not all companies are taking climate change equipment and even communication networks. According to seriously, financial necessity is increasingly driving McKinsey research, in the US alone using such tools could cut action in today’s corporations, backed by changes the commercial-building sector’s energy bill, and associated in government legislation. Companies and organisations are emissions, by nearly 30% a year. Globally, smart buildings increasingly being obliged to measure and publicly disclose could cut emissions by 1.68 metric gigatonnes a year. and report their energy use and related emissions. In time, there will be penalties for not doing so. The UK government There is a raft of government legislation being put in place to is already taking action. Under the latest Climate Change Act, encourage efficiency in real estate. One of the most important the UK has targets to cut emissions by 34% and to increase the of these in the UK is the Carbon Reduction Commitment, due amount of renewable electricity on the grid to 15%, both by to come into effect in April 2010. It will initially target around 2020 – a tall order when one considers that renewable energy 5,000 UK businesses which each consume over 6,000MWh currently accounts for just under 5% of energy production in of electricity every year. Under the terms of the proposals this country. But a raft of legislation is being implemented to each affected firm will be expected to reduce their energy help the country achieve its goal. consumption – and therefore their emissions – against a set baseline. The government has already said it is likely to Emissions from buildings are responsible for 40% of all global increase the reach of the proposals to cover around 20,000 emissions according to research from McKinsey and up to 80% companies in the not too distant future. of total greenhouse gas emissions in our cities and towns. In the UK, it’s accepted that 50% of the UK’s greenhouse gas While a requirement to cut energy use will help drive change, emissions are associated with buildings, which means that it is also evident that new workstyles can also generate it’s becoming critical that buildings, facilities management significant savings. Laptop use reduced carbon at Macquarie operations and workstyles begin to address the issue. Group by an estimated 8,000 tonnes. And many new ways of working programmes can result in a dramatic reduction of Obviously one of the key carbon/energy solutions for real estate leased or occupied. A 30% reduction of floor space buildings, especially in the commercial sector, lies in lighting creates a 30% reduction in carbon emissions. and temperature controls, as well as the technology that enables companies to track what’s happening in their Innovation in workstyles can also have further impacts. A buildings. Concepts such as advanced integrated wireless move to mobility requires new technology platforms, and lighting control systems mean that lights switch off when a many organisations take the opportunity to migrate to web room is empty, temperature controls respond to real-time based systems, data centres or cloud computing. This takes weather conditions, positioning blinds where they’re needed technology infrastructure out of buildings, into purpose to provide optimum light and shade – these help ensure built data centres that cool servers more efficiently. Without energy is only used when and where needed and won’t technology infrastructure in buildings, the power and cooling compromise the comfort of the building’s inhabitants. These requirements can be dramatically reduced, creating a greener building management systems (BMS), when working together building. with a network of sensors, can manage lights, heat, ventilation and air conditioning (HVAC) systems, fire safety and security “The most sustainable office is the “More and more companies and employees one you don’t have” want to be good corporate citizens and Barry Varcoe, Royal Bank of Scotland this may result in less car commuting for individuals. Therefore, I can envisage that you’ll go to a local drop down for corporate services and connect to the company network from there” Mark Tamburro, Nokia UNWIRED Research 22 © Unwired Ventures Ltd, 2010 All Rights Reserved
  23. 23. AGILITY @ Work The impact of six forces on the way we work SIX PACK – FIT FOR BUSINESS? The six forces identified that are reshaping business can be applied to make an organisation more efficient, lean and fit. They can become catalysts that accelerate a change process that develops the corporate ‘six pack’ – an organisation that occupies perhaps 30% less property, with corresponding reductions in capex. An organisation where ‘churn costs’ are close to zero and where technology infrastructure migrates to the cloud. And the most striking realisation that fit organisations are stating is that they believe that they can grow out of recession without taking on more real estate. For the first time economic growth and expansion in head count may not result in expansion in floor space. “fit organisations are stating that they believe that they can grow out of recession without taking on more real estate” Actions for achieving a corporate ‘six pack’: 1 Real Estate Review workplace strategy and introduce activity based working and mobility. Gather data on utilisation rates and real cost of occupancy as well as churn costs. Create an aspirational vision for new workstyles. 2 Culture Introduce change management to prepare people for new workstyles. Move from management by supervision to a results based approach. Identify champions for innovation and change. 3 People Understand demographics and profile the workforce to identify the needs of different groups by age, job function and psychometric analysis. Engage with the workforce to develop opportunities for change. 4 Technology Identify key drivers and enablers of change. Then align technology to the real estate strategy and introduce the appropriate tools for new workstyles. 5 Transport Realisation that continued stress in transport corridors will require a new approach to commuting and mobility, and the adoption of polycentric thinking. 6 Sustainability Reduced quantity of commercial real estate leased, together with better management of property assets, reduced commuting and greener technology will allow targets to be met. UNWIRED Research 23 © Unwired Ventures Ltd, 2010 All Rights Reserved
  24. 24. AGILITY @ Work The impact of six forces on the way we work CONCLUSIONS ACTIVITY BASED WORKING (ABW) The logical conclusion of the trends presented in this report Colin King from Nokia goes on to say that: is the wide scale adoption of activity based working, both inside and outside the corporate building. Enabled by the “A Corporate Real Estate head needs to create a Real Estate technology that has been described, people will increasingly plan that: be able to choose where to work. • Is organisationally change proof –based on key activities Heating, cooling and lighting half empty buildings will and capabilities not current organisational structures become a redundant concept as property is utilised efficiently, • Supports the business strategy in optimal way minimising emissions but also improving performance, not just of buildings but for people. An energised, dynamic • Optimises the cost of location portfolio workplace is a busy, utilised space – and not one where half • Fosters company culture, spirit and engagement – the desks and offices lie empty. aligned with ways of working/co-location/presence in the office ABW will create the experience inside buildings of using specialist spaces for specific tasks and providing people • Offers flexibility and scalability with the tools as well as the cultural and behavioural norms • Ensures best talent supply and attraction for key to adopt distributed working. This will create a new mix of capabilities space in an increasingly permeable city that people will be familiar with; a combination of ‘third space’, home working • Creates a competitive advantage over competitors and other mobile solutions such as working from clients’ - Innovation factor premises. Multiple locations, some leased or owned by a - Cost factor company, but most shared or public will begin to remove risk for businesses. There will be range of product and services that a MNC will need to consider in arriving at the right value offering for their Workspace will increasingly be just another ‘on-demand’ people.” service, adopting many of the characteristics of software as it also becomes another utility. Software as a Service (SaaS) is set to change the face of computing as people use what they need, when and pay by the minute. Workplace as a Service (WaaS) should follow the same model. These solutions and approaches de risk real estate and provide ‘flex’ for businesses that need to be as ‘nimble’ as possible. And this polycentric approach to work is set to grow. “You have to have a spread across multiple locations to de risk the business model.” Colin King, Nokia UNWIRED Research 24 © Unwired Ventures Ltd, 2010 All Rights Reserved
  25. 25. AGILITY @ Work The impact of six forces on the way we work INNOVATION AT WORK FLEXING SPACE With the forecast adoption of activity based working, mobility One of the clear trends is that there are never enough meeting and distributed working, there are far too few places to work rooms in today’s corporate office. Research has found that from outside the corporate office or the home. The experience corporate decision making is being slowed down by a lack of working in a café or coffee shop is challenging – no where of available spaces for executives to meet. And as well as to plug in for power, poor acoustics and no way to print. And meeting rooms being at a premium, project space is normally so we predict a huge growth in third space, especially in new all but non-existent. destinations and the peripheries of cities, transport hubs and neighbourhoods. One vision for the future is the co-location of a corporate office with a serviced office or ‘meeting hotel’. The ability for an “In the future I see a ring of peripheral drop in spaces. But do outside operator to offer flex for a company, with the benefits they need to be 5*?” explains Simon Ward at Barclays. And the of co-location are obvious. “There is value in Regus becoming current range of ‘serviced offices’ on offer may not yet be the a permanent feature in every development,” says a Head of correct match for an increasingly mobile workforce. Real Estate at a FTSE 100 company. As Chris Hood from Hewlett Packard observes about ‘serviced This would allow the corporate to focus on its core workspace, office space’ today, “design can make a difference; it does not and all specialist and shared services could then be provided need to be expensive, but creative. Make it a place I really by an external partner, from meeting and project spaces to want to go.” Someone needs to bring into the market an video conferencing and high end collaboration space. As one environment that is lighter and cooler – not invest so much. Global Head of Real Estate reinforces, “If we were able to use specialised environments which demand intensive capital So the next generation of third space will need innovation to investment ‘on demand’, provided by a specialist operator get the positioning right for a large mobile workforce and not and shared with other organizations, this would be very just transient executives. A third space model also needs to interesting.” move away from the idea that companies want to either hire desks or meeting rooms only. “The idea of hiring a desk in a private office for a day does not ring right. I prefer to sit in a coffee shop and work. People need a technology capability that they can’t get anywhere else - for example Halo (advanced video conferencing)”, says Chris Hood at Hewlett Packard. What began as a solution for small and start-up businesses and a provision of temporary and overflow space solutions is now maturing to become a part of real estate strategy for major corporate and a central part of a distributed working model. “In the future I see a ring of “There is value in Regus “Make sure spaces have peripheral drop in spaces. But becoming a permanent video – that’s what its all do they need to be 5*?” feature in every about. We don’t do any Simon Ward, Barclays development.” conference calls webinars Head of Workplace, Global with a camera.” Technology Company Head of Workplace, Global Technology Company UNWIRED Research 25 © Unwired Ventures Ltd, 2010 All Rights Reserved
  26. 26. AGILITY @ Work The impact of six forces on the way we work WHERE NEXT? The 6 forces represent the ability for a point of inflexion compasses and accelerometers. The next wave of technology for work and the workplace. A change so fundamental will introduce ‘geo-presence’ – knowing where people are in that the very basis for how and where people work will be real time, inside and outside buildings, and what their current challenged. status is…“we should use technology to tell you where you can work.” says Colin King at Nokia. And the combination of The imperative for such radical change will surely come geo-presence, augmented reality (AR) and a host of other new from sustainability – our current model of work is clearly applications will begin to remove some of the boundaries and unsustainable. But it will also be driven by demographics, challenges of place-independent working – finding a nearby as the millennials and the ‘net generation’ yet to graduate place to work, feeling belonging, connecting with colleagues, shift expectations and employers react to attract and retain knowing where people are – and trusting that they are talent. Transport in cities will drive people to find alternatives actually working when they are not being ‘watched’. as urban environments become increasing immobile, and legislation will also drive change, from working hours to taxes Development of new concepts to accommodate an on business inefficiency (for example in CO2 emissions). increasingly footloose workforce will be essential, especially as these behaviours are adopted by new job functions, not Technology will have its part to play, as catalyst and driver used to flexibility. “The model needs to continue to be fine of change, but also as enabler of forces and trends in mobile tuned and tested,” says Chris Hood at Hewlett Packard. working, collaboration and teaming that are already emerging. Management culture and change will be, as always, two of “It can only get better – more and more people will move to the biggest hurdles to overcome. But reducing the cost of distributed working,” predicts Chris Kane (BBC Workplace) real estate or ‘occupancy’ will be seen to be a clear win-win, as and this vision we believe will set the agenda for work and new work styles change the cost base for doing business. patterns of use of the city and its myriad of workspaces over the next decade. Innovation will be everywhere. Mobile devices not only have global positioning systems (GPS) built in but, now, also digital UNWIRED Research 26 © Unwired Ventures Ltd, 2010 All Rights Reserved
  27. 27. AGILITY @ Work The impact of six forces on the way we work APPENDICES Our Research Thanks John de Lucy The British Library Head of Estates Chris Hood HP Head of Workplace Daniel Johnson Accenture Global Director, CRE Workplace Ronen Journo Cisco Head of Workplace EMEA Chris Kane BBC Head of Workplace John Killey Citigroup Managing Director Citi Realty Services Colin King Nokia Global Head Real Estate Richard Paver BP Global Head of Real Estate Mark Tamburro Nokia Global Head Real Estate Barry Varcoe Royal Bank of Scotland Head of Workplace Simon Ward Barclays Global Head Real Estate About the Authors Philip Ross Mark Dixon Philip is CEO of the Cordless Group, specialists in the impact of Chief executive and founder, Mark Dixon is one of Europe’s best- emerging technology on people and their behaviour in the built known entrepreneurs. Since founding Regus in Brussels, Belgium environment. in 1989, he has achieved a formidable reputation for leadership and innovation. Prior to Regus he established businesses in the He has worked with organisations such as Ernst & Young, Allen & retail and wholesale food industry. Recipient of several awards for Overy, GlaxoSmithKline, Cisco, McKinsey & Co, Nottingham City enterprise, Dixon has revolutionised the way business approaches Council, PriceWaterhouseCoopers, Royal Bank of Scotland, Jones its property needs with his vision of the future of work. Lang LaSalle and Ericsson on future concepts based on emerging technologies. Philip has spoken at conferences around the world including the Wall Street Journal Europe CEO Forum on Converging Technologies, alt. office in the USA and Corenet’s Global Summits in Beijing, Auckland, Orlando, San Diego and Melbourne. In 1994 he wrote and published The Cordless Office Report and founded Cordless Group. He has written three books on the future of cities, work and workplace: The Creative Office, The 21st Century Office and Space to Work (all co-authored with Jeremy Myerson). He has also contributed to a number of other books including the Corporate Fool and the Responsible Workplace. UNWIRED Research 27 © Unwired Ventures Ltd, 2010 All Rights Reserved
  28. 28. AGILITY @ Work The impact of six forces on the way we work About Unwired About Regus work • workplace • technology • innovation The Regus Group (LSE:RGU) is the world’s leading global provider of innovative workspace solutions, with products and Unwired is a specialist in the future of work. Through research, services ranging from fully equipped offices to professional forecasting, publishing and events it predicts the way that meeting rooms, business lounges and the world’s largest our a patterns of work will change as a result of political, network of video communication studios. Regus delivers a socioeconomic and technological trends. new way to work, whether it’s from home, on the road or from an office. Clients such as Google, GlaxoSmithKline, and Nokia Unwired was founded in 1996, and has published over 50 join thousands of growing small and medium businesses that research reports, including Creative Places for the BBC, benefit from outsourcing their office and workplace needs to the New Millennials for Nokia and Rio Tinto and Workplace Regus, allowing them to focus on their core business. Sustainability. Over 500,000 clients a day benefit from Regus facilities spread Its events include the WorkTech conferences held in London, across a global footprint of 1,000 locations in 450 cities and New York, Shanghai and Amsterdam. 78 countries, which allow individuals and companies to work wherever, however and whenever they want to. For further information visit: www.unwired.eu.com For more information please visit: www.regus.co.uk Published by Unwired Ventures Ltd Unwired Ventures Ltd, its employees, the advisory board and the The Innovation Centre sponsors of Unwired are not to be held responsible for any losses, 7 St John’s Mews expenses or any claims arising out of any reliance on the information St John’s Road contained in this publication. Since most of the information in this publication has been provided by third parties it requires further Hampton Wick verification. In every instance an application is made it must be Kingston upon Thames independently verified and applied to those individual circumstances KT1 4AN UK by a suitably qualified individual. Telephone +44 (0) 20 8977 8920 The very nature of the information contained in this publication Facsimile +44 (0) 20 8977 8970 ensures that at the time of publication it may be outdated or Email info@unwired.eu.com superseded. No copyright or intellectual property is transferred or Web www.unwired.eu.com should be assumed and all images, photographs and trademarks remain the property of their respective owners. UNWIRED is a registered trademark of Unwired Ventures Ltd. No rights exist to reproduce this publication in any form or media in part or whole. UNWIRED Research 28 © Unwired Ventures Ltd, 2010 All Rights Reserved

×