0
Planning for
Productivity
Nigel Oseland PhD CPsychol
www.workplaceunlimited.com
Property Cost v Productivity Benefits
Speed

Fees

Sales
Revenue
Cost



Output
Staff:Property Costs – 2005
6.5%

4.8%

Salaries
85.0%

Building Construction
Maintenance, M&E,
Furnishings & Furniture,
D...
Staff:Property Costs – 1965
8.0%

6.0%

Salaries
86.0%

Building Construction
Maintenance & Operation

National Bureau of ...
ASHRAE, NEMA et al – 1990s


Productivity Literature Review

0.6% - 160%
range

200+
papers

75
credible
Oseland & Burton (2013) Building the business ...
Meta-analysis Weighting

Research
Environment



Performance
Metric

Activity
Time
Predicted Productivity Benefits
Lower Upper

Lighting

Acoustics

Lower Upper

0.1-2.0%

0.3-2.1%

0.2-1.7%

Control

Furn...
Multiple Productivity Benefits

PO = P1 + ⅔ P2 + ⅓ P3 …
Where: PO = the overall % performance change
P1 = % performance ch...
Contributing Factors
Environmental Conditions
Temperature, Air Quality,
Ventilation, Lighting , Acoustics

Business Factor...
Confounding Factors
Business Metrics

Relevance to Business

Revenue, profit, shares

HR Metrics
Absenteeism, retain, over...
The Lawyer UK 200 Survey
Top 10
sqft/person

Bottom 10
sqft/person

Mean = 206 sqft/person

Allen & Overy
(1.7M sqft, £1.1...
The Lawyer UK 200 Survey
2,500

20,000

2,000

15,000

1,500

10,000

1,000

5,000

500

0

0
Minster Law

...
Retail Metrics – Apple


Retail Metrics – Shopping Centres
500
450

Sales per sq ft

400
350
300

Cool Springs

250

River Gate

200

Hickory Hollo...
Conclusion
1. Productivity can be measured
2. Workplace design does affect productivity
3. Business case for workplace sho...
Thank You
Nigel Oseland
www.workplaceunlimited.com
www.workplaceunlimited.blogspot.co.uk
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Planning for Productivity

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Presentation by Nigel Oseland, Workplace Unlimited, to the WorkPlace Trends Conference 2013 in London

For years we have been chasing the Holy Grail of the link between workplace and productivity - it's time to move on. Measures of productivity exist and research shows there is a proven relationship with workplace design and operation. Not having a generic measure of productivity is not a sufficient reason to ignore it in the business case for workplace projects. Workplace design has come of age.

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Transcript of "Planning for Productivity"

  1. 1. Planning for Productivity Nigel Oseland PhD CPsychol www.workplaceunlimited.com
  2. 2. Property Cost v Productivity Benefits Speed Fees Sales Revenue Cost  Output
  3. 3. Staff:Property Costs – 2005 6.5% 4.8% Salaries 85.0% Building Construction Maintenance, M&E, Furnishings & Furniture, Depreciation BCO (2005) The Impact of Office Design on Business Performance. 
  4. 4. Staff:Property Costs – 1965 8.0% 6.0% Salaries 86.0% Building Construction Maintenance & Operation National Bureau of Standards (1965) Study of Federal Office Buildings 
  5. 5. ASHRAE, NEMA et al – 1990s 
  6. 6. Productivity Literature Review 0.6% - 160% range 200+ papers 75 credible Oseland & Burton (2013) Building the business case, Facilities Management 20(08).  135 quantified
  7. 7. Meta-analysis Weighting Research Environment  Performance Metric Activity Time
  8. 8. Predicted Productivity Benefits Lower Upper Lighting Acoustics Lower Upper 0.1-2.0% 0.3-2.1% 0.2-1.7% Control Furniture 0.0-1.9% Temperature 0.2-1.7% Ventilation/IAQ  1.0-2.1% 1.7-4.4% Space 1.2-3.2% General/Mixed
  9. 9. Multiple Productivity Benefits PO = P1 + ⅔ P2 + ⅓ P3 … Where: PO = the overall % performance change P1 = % performance change due to 1st environmental factor P2 = % performance change due to 2nd environmental factor P3 = % performance change due to 3rd environmental factor 
  10. 10. Contributing Factors Environmental Conditions Temperature, Air Quality, Ventilation, Lighting , Acoustics Business Factors Office Facilities Marketing, Advertising, Market Demand, Economy Furniture, Space Planning, IT, Storage, Meeting Space Productivity & Performance Organisational Factors Psychophysical Factors Reward, Culture, Management, Recognition, Prospects Comfort, Noise, Privacy. Aesthetics, Colour, Ergonomics Personal Factors Experience, Training, Pride, Personality, Motivation 
  11. 11. Confounding Factors Business Metrics Relevance to Business Revenue, profit, shares HR Metrics Absenteeism, retain, overtime Team Targets Fees, utilisation, sales, clients Work Tasks Calls, claims, deadlines, targets Individual Tasks Search, maths, errors, speed Extraneous Factors 
  12. 12. The Lawyer UK 200 Survey Top 10 sqft/person Bottom 10 sqft/person Mean = 206 sqft/person Allen & Overy (1.7M sqft, £1.18Bn) Minster Law (70K sqft, £104M) www.thelawyer.com/good-offices/1014802.article 
  13. 13. The Lawyer UK 200 Survey 2,500 20,000 2,000 15,000 1,500 10,000 1,000 5,000 500 0 0 Minster Law  Allen & Overy Revenue – £ per sqft TCO – £ per person 25,000
  14. 14. Retail Metrics – Apple 
  15. 15. Retail Metrics – Shopping Centres 500 450 Sales per sq ft 400 350 300 Cool Springs 250 River Gate 200 Hickory Hollow Governor's Square 150 All Malls 100 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 CBL & Associates Tennessee malls  Year
  16. 16. Conclusion 1. Productivity can be measured 2. Workplace design does affect productivity 3. Business case for workplace should include impact on business performance not just cost 4. Ignoring productivity effects is irresponsible 5. Use business metrics like Revenue per sqft 6. Track performance over time and locations 
  17. 17. Thank You Nigel Oseland www.workplaceunlimited.com www.workplaceunlimited.blogspot.co.uk
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