The Facilities Frontier: Third Places and New Corporate Workplaces

The Facilities Frontier Glenn Dirks, Teletrips February 24, 2010 Jim Ware, Work Design Collaborative Juniper Networks Sunnyvale Barbara Sprenger, Satellite Work Centers Diane Coles, SCAN Health Plan

Two-Thirds of Knowledge Work Today Is Done Outside Organizational Facilities Corporate In Between – At Home— Facilities–35% 30% 35% “First Place” “Third Place” “Second Place” © Copyright 2010 by The Work Design Collaborative. All rights reserved -1-

The Business Case for Distributed Work Support Cost Per Worker* $30,000 HR/Admin $25,000 IT $20,000 CRE/Facilities $15,000 $10,000 $5,000 $- Traditio nal Off Environ ice 80% of Wo Hypothetical data, calculated using ment rkforce Flexible/Mo the WDC ROI Calculator bile © Copyright 2010 by The Work Design Collaborative. All rights reserved -2-

Shifting to a Third Place for Workforce Support* Traditional Office Third Place Environment Costs HR/Admin $30,000 IT $25,000 CRE/Facilities $20,000 $15,000 $10,000 $5,000 $- Source: WDC proprietary financial models © Copyright 2010 by The Work Design Collaborative. All rights reserved -3-

A Case Example Prescott, Arizona Publicly Advanced Funded Video “Concierge” Conferencing Services Focused on Workforce Development Aimed at Entrepreneurs © Copyright 2010 by The Work Design Collaborative. All rights reserved -5-

The Prescott BCC Important Lessons Membership 20% People Need Resources Word of 30% Mouth Works 50 % Micro Businesses Offer a Variety It Can Become of Spaces Self-Sustaining Corporate Employees Self-Employed © Copyright 2010 by The Work Design Collaborative. All rights reserved -6-

Desk Phone! Post! Cell Phone! Email! Smart Phone! IM! Management ! Remote ! Work! Price of Oil! Acceptance! Laptop! VPN @ ! 15Mbs/sec! PC! Broadband! Mainframe! Carbon ! Savings! Dial-Up!

The Challenges  3

2006 Telework Survey    42% prefer working near home, not in home 44%  DistracDons  43%  Business‐Quality Equip  29%  Professional Environment  21%  High‐speed Broadband  16%  Onsite tech support  11%  Keep home/work separate  11%  IsolaDon  0%  10%  20%  30%  40%  50%  4

The SoluDon:  Local Workspace Centers  •  Small, neighborhood‐based  •  Near commuters’ homes  •  Cater to use of tech tools  •  24/7 access, tracking  •  Staﬀed  •  Flexible space  5

The Satellite  6

What’s Important  •  AestheDcs – comfortable workspace vital!  •  LocaDon – walk to coﬀee, lunch & drinks (and shops and parks  and gym)  •  Instant ready‐to‐work  •  Membership‐based  ‐‐ Needs vary, plans vary  •  “Hoteling” ‐‐ Flexible scheduling, ﬂexible workspaces   •  24/7 access  •  Balance of automaDon and personal service  •  Community center concept   7

Costs and Savings  Per  Per  Commuter  Month  Employer  Month  Satellite Membership, 3d/wk  $285  Satellite Membership, 3d/wk  $285  Save 25 miles each way, 3 x/ ($330)  Savings:    51%*  week @ $.55/mi.       HR/Admin  Oﬃce space tax savings   ($97)       Facility space costs      @ 34% fed and state       Oﬃce equip purch & mtce  TransportaDon tax savings   ($75)      (to corporate HQ)  Total MONTHLY SAVINGS   ($217)  *from Future of Work      aker 7.5% of AGI  8

Enhanced Quality Community/ of Local Business Life Reduced Increased Carbon Productivity Footprint 9

 The saddest aspect of life right now is that  science gathers knowledge faster than  society gathers wisdom…Isaac Asimov  10

Aligning Strategy with Real Estate Challenges ■  Real Estate Challenges –  Changes in federal regulations –  Rapid growth –  Expansion –  Attracting and retaining talent –  Corporate facility at some risk –  Space did not meet 2012 vision and culture –  High workforce support costs 1

Redefining Our Workplace In 2007 New Direction   Enabling face-to-face   More distributed/virtual workforce management   Less space but better space, and   Inefficient space more effectively used   Traditional “grid” workplace   More exciting, creative space that design fosters teamwork & innovatio (NO   Hierarchical SILOS)   Space, technology, and services   Less hierarchy were silos   Integrated solutions of space,   Focus on place technology, and services   Cost focus   Focus on work   No attention to Green   Cost focus – with benchmarking   Go Green 2

Embracing the Future of Work ■  Charter to re-align the real estate portfolio to reduce cost and handle growth ■  Moved several hundred employees to flexible work ■  In 2008 went from 185 sf/person to 155 sf/person at corporate headquarters ■  Achieving an ROI of 40% ■  Redesigned the workplace planning process, saving 38% in cost and 3 time

The New Space Concept ■  The Neighborhood –  Townhouse –  Single Occupant –  Phone Booth –  Café –  Library –  Mail Box Etc. / Copy Center 4

New Collaboration Spaces 5

New Collaboration Spaces 6

The Townhouse 7

The Townhouse 8

The Call Center Solution 9

Cost to Reconfigure Space 10

Cost to Reconfigure Space 11

The Youtube Video http://www.youtube.com/watch?v=k1A9AdVd0Ks 13

For Further Information Diane Coles, MCR Barbara Sprenger Director, Workplace Services http://www.thesatelliteinc.com SCAN Health bsprenger@thesatelliteinc.com dcoles@scanhealthplan.com +1 831 222 2100 voice +1 562 989 8327 voice +1 831 345 6529 Glenn Dirks Dr. James Ware http://www.teletrips.com http://www.thefutureofwork.net gdirks@teletrips.com jim@thefutureofwork.net +1 650 948 5899 voice +1 510 558 1434 voice +1 650 867 4242 mobile +1 510 206 8147 mobile 14

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The Facilities Frontier: Third Places and New Corporate Workplaces

by James Ware on Feb 25, 2010

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The Facilities Frontier: Third Places and New Corporate Workplaces — Presentation Transcript