Degw Workplace Forum 21 April 2009


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integrating workplace with workforce and culture strategy

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  • Degw Workplace Forum 21 April 2009

    1. 1. Driving Organisational Culture Through Workplace Design – When Moons Align Peter Ward – Head of People & Change South Australia Water Corporation
    2. 2. Ambitious Objectives <ul><li>We wanted </li></ul><ul><ul><li>a building that would help us shape the right culture </li></ul></ul><ul><ul><li>a building that would help us attract and retain the workforce we need to remain sustainable </li></ul></ul><ul><ul><li>to bring laboratories and offices together in one building </li></ul></ul><ul><ul><li>a very green building … in Adelaide's CBD </li></ul></ul><ul><ul><li>to achieve this through a competitive market process – with a developer team that would work in partnership with us </li></ul></ul><ul><ul><li>to avoid any cost premium to market prices </li></ul></ul><ul><li>Everybody told us it was impossible </li></ul><ul><li>It wasn’t … here is our story </li></ul>
    3. 4. About Our Culture
    4. 5. What is high performance culture? <ul><li>Organisations recognise that culture is a competitive edge or tool to be used </li></ul><ul><li>Defined by better: </li></ul><ul><ul><li>Speed to market, response times </li></ul></ul><ul><ul><li>Ability to change, withstand buffetings </li></ul></ul><ul><ul><li>Ability to deliver promised outcomes </li></ul></ul><ul><ul><li>Profit , Service delivery performance over the longer term </li></ul></ul><ul><ul><li>Attractiveness to prospective employees </li></ul></ul><ul><li>Continued high performance sustained over long periods </li></ul>
    5. 6. Definition: Performance Culture <ul><li>‘ A culture in which individuals, teams and the organisation achieve what they agree to achieve. </li></ul><ul><li>Other words that can be used for this are: accountability, achievement, focus, speed, delivery, discipline, meritocracy and rigour. </li></ul><ul><li>In a Performance Culture people deliver on their promises. When they say ‘ I can do this ’, whether it is to meet an annual target or fulfil a commitment to complete a report by Friday, it occurs. Rewards and consequences are aligned to delivery . The results are speed and focus because people are conscious of what they commit to; the assess risks more carefully and complete what they start. This provides confidence that what is targeted will be achieved.’ </li></ul>
    6. 7. Human Resources Strategy <ul><li>We then looked at various change examples and adapted a “high achieving culture” model </li></ul>Relentless pursuit of Vision, Mission, Values, Strategy Focus on Leadership and Teamwork Aligned by simple, transparent processes & systems Staffed by world class capability Intense performance driven environment (recognition, reward & consequence management) HIGH ACHIEVING CULTURE Supported by clear communication and transparent measurement
    7. 8. Cultural messages are sent through three channels Workplace impacts all of these … which all convey what is valued in the organisation Channel Message sent by BEHAVIOUR <ul><ul><li>Observation of others </li></ul></ul><ul><ul><li>Especially key influences </li></ul></ul><ul><ul><li>What is said </li></ul></ul><ul><ul><li>What is done </li></ul></ul>SYMBOLS <ul><ul><li>Where is time spent </li></ul></ul><ul><ul><li>Where resources are invested </li></ul></ul><ul><ul><li>Physical environment </li></ul></ul><ul><ul><li>What and who is rewarded </li></ul></ul><ul><ul><li>Who is involved in what </li></ul></ul><ul><ul><li>Voice of key stakeholders </li></ul></ul><ul><ul><li>Rituals </li></ul></ul>SYSTEMS <ul><ul><li>Goal setting budgeting </li></ul></ul><ul><ul><li>Reporting and measurement </li></ul></ul><ul><ul><li>Remuneration </li></ul></ul><ul><ul><li>Performance management process </li></ul></ul>
    8. 9. About SA Water <ul><li>150 years old mid 2006 </li></ul><ul><li>Previously Engineering and Water Supply Department </li></ul><ul><ul><li>Mega department for South Australia </li></ul></ul><ul><ul><li>Vertically integrated design to delivery </li></ul></ul><ul><ul><li>8000+ staff at the peak </li></ul></ul><ul><li>Corporatisation July 1995 </li></ul><ul><ul><li>Commercial Charter </li></ul></ul><ul><ul><li>Public Service staff transferred </li></ul></ul><ul><ul><li>Metropolitan Operations outsourcing to United Water </li></ul></ul><ul><ul><li>Various B.O.O.T infrastructure </li></ul></ul><ul><ul><li>Dis-aggregation of core business </li></ul></ul><ul><ul><li>Design </li></ul></ul><ul><ul><li>Capital works </li></ul></ul><ul><ul><li>Resource planning and ownership </li></ul></ul><ul><ul><li>Asset owner </li></ul></ul><ul><li>Bottomed at 1100 staff in 2001, now 1450 </li></ul>
    9. 10. When Moons Align – Seizing the Opportunity <ul><li>Culture survey identified accommodation as an issue – Morale and Equity </li></ul><ul><li>Aging, outdated facilities </li></ul><ul><ul><li>General condition is average to poor </li></ul></ul><ul><ul><li>Government policy requires SA Water to vacate Thebarton (to be returned to parklands) </li></ul></ul><ul><ul><li>AWQC is outdated and inflexible, Grenfell St has limited capacity </li></ul></ul><ul><ul><li>Significant changes and upgrading is required – regional and metro – within the next 5 years </li></ul></ul><ul><li>Significant cost incurred because of the geographical spread </li></ul><ul><li>Government accommodation standards not being achieved </li></ul><ul><li>Alignment with sustainability values and chance to showcase these </li></ul><ul><li>Opportunity only occurs once in a career </li></ul><ul><ul><li>Culture, efficiency, address internal customer and communication issues </li></ul></ul>Best Practice Companies SA Water 2003/04
    10. 11. <ul><li>Business </li></ul><ul><ul><li>Productivity/efficiency </li></ul></ul><ul><ul><li>Staff attraction and retention </li></ul></ul><ul><ul><li>Workforce morale </li></ul></ul><ul><ul><li>OH&S </li></ul></ul><ul><ul><li>Sustainability/ESD </li></ul></ul><ul><ul><li>Replace ageing accommodation </li></ul></ul><ul><li>Cultural </li></ul><ul><ul><li>High achievement </li></ul></ul><ul><ul><li>Collaboration and teamwork </li></ul></ul><ul><ul><li>Openness and transparency </li></ul></ul><ul><ul><li>Sustainability </li></ul></ul><ul><ul><li>Employer of Choice </li></ul></ul>Strategic Intent <ul><li>Government Policy </li></ul><ul><ul><li>State Strategic Plan </li></ul></ul><ul><ul><li>Parklands </li></ul></ul><ul><ul><li>Office accommodation standards </li></ul></ul><ul><li>It is more than bricks and mortar </li></ul><ul><li>Business case stacked up – do nothing/base case option not cheapest! </li></ul>
    11. 12. Key Requirements & Principles <ul><li>Flexibility, future-proof </li></ul><ul><li>Openness and transparency – no offices </li></ul><ul><li>Ecologically Sustainable - 5 Star Green Star minimum </li></ul><ul><li>Healthier environment and natural light </li></ul><ul><li>Consider our customer’s needs </li></ul><ul><li>Part of the community </li></ul><ul><li>Facilities provided on the basis of need not hierarchy </li></ul><ul><li>Encourages teamwork, collaboration and communication </li></ul><ul><li>Staff input to their own workspace </li></ul><ul><li>Accessible Leaders </li></ul>
    12. 13. About Our Process
    13. 14. Three Key Processes <ul><li>Planning a holistic process of change </li></ul><ul><ul><li>Unusual - we started with change management </li></ul></ul><ul><li>Reinventing how we work </li></ul><ul><ul><li>Space requirements are easy – but what do you want staff to say and do? </li></ul></ul><ul><ul><li>Allow people the opportunity to ask “why do we do it this way” </li></ul></ul><ul><ul><li>Extensive Consultation – executive, managers and staff, unions </li></ul></ul><ul><li>Reinventing how a building is procured </li></ul><ul><ul><li>Allow people the opportunity to ask “why do we do it this way” </li></ul></ul><ul><li>Build a great project team </li></ul><ul><ul><li>Within the organisation, key consultants (private + government), and the development partner </li></ul></ul>
    14. 15. Unique Procurement Process DAIS REM + Project Risk Services our Partner DEGW + ARUP our consultants Change Management + Workplace Brief What is this building for … and how do we intend to use it … what can be different? 36-6 months Building Performance Brief Defining a building by what it does – not how to design/build it Used both for RFP then as a design quality review 8 weeks RFP – commercial + design responses – 3 bidders 6 week design process 3 workshops with each developer team  design + commercial Encouraged to put forward innovation – and choices Transparent, partnership building 6 weeks Evaluation + Implementation Partnership, Site, Design, Commercial Work in partnership to complete design against brief 12 weeks+
    15. 16. The results We were able to meet many stakeholder requirements <ul><li>Design: </li></ul><ul><ul><li>6 Star Green Star achieved 87 points </li></ul></ul><ul><ul><li>GOAC standards met or exceeded </li></ul></ul><ul><ul><li>Exciting and engaging design </li></ul></ul><ul><ul><li>High level of innovation </li></ul></ul><ul><ul><li>Integration of offices and laboratories </li></ul></ul><ul><li>Commercial: </li></ul><ul><ul><li>Acceptable gross rent achieved ( now comparably cheap!) </li></ul></ul><ul><ul><li>% increase achieved acceptable </li></ul></ul><ul><ul><li>High level of transparency </li></ul></ul><ul><ul><li>Best impact on long term financials (25 year NPV calculation) </li></ul></ul>Partnership: Experienced and capable team Willingness to engage and share information, share pain and gain High level of trust Openness and transparency Site Objectives: Best resolution of access and customer requirements Great urban amenity A memorable presence on the skyline and at street level
    16. 17. What is Change Management? <ul><li>Magic? </li></ul><ul><li>Risk management? </li></ul><ul><li>HR Gobbledy-gook? </li></ul><ul><li>The correct answer is Risk Management </li></ul><ul><li>Change Management is about applying simple risk management principles to specific areas that research and history have shown are essential to the successful completion of all projects. </li></ul>
    17. 18. What are the specific areas? <ul><li>Staff Involvement/Engagement </li></ul><ul><li>Leadership </li></ul><ul><li>Communication </li></ul><ul><li>Workforce Transition </li></ul><ul><li>Training and Development </li></ul><ul><li>Performance Orientation </li></ul>
    18. 19. Why Engage Staff? <ul><li>3 very good reasons: </li></ul><ul><li>Cultural </li></ul><ul><li>Risk Management </li></ul><ul><li>Legal </li></ul>
    19. 20. Executive and Senior Manager Workshop 18 March Building Design Brief Manager & Team Leader Workshops late March Staff Workshops by end April Staff Reference Group early April Change Management Strategy and Plan
    20. 21. SA Water Change Management
    21. 22. Engagement Starts at the Top <ul><li>Executive and Senior Management Team workshop in March 2005 </li></ul><ul><li>Purpose: Create a shared understanding and vision </li></ul><ul><li>Mission: Create a building that brings us together whilst allowing freedom & diversity leading to a dynamic organisation for a sustainable future. </li></ul><ul><li>Draft project principles developed </li></ul><ul><li>Project objectives agreed </li></ul><ul><li>Opportunities and Threats identified </li></ul>
    22. 23. Staff Engagement - The Beginning <ul><li>Staff Reference Group (SRG) of approximately 40 people established – training, process and support provided </li></ul><ul><li>Staff consultation session conducted by the SRG </li></ul><ul><li>Approximately 650+ out of 800 people attended </li></ul><ul><li>Education and information provided – ESD, the case for change, the procurement process, WIIFM </li></ul><ul><li>1000’s of comments collected </li></ul><ul><li>Results presented to the Executive Team </li></ul><ul><li>Project principles changed to incorporate staff suggestions </li></ul><ul><li>Project brief reflects staff preferences, particularly ESD </li></ul><ul><li>Results communicated to staff </li></ul>
    23. 24. Staff Engagement – During <ul><li>Intranet site established </li></ul><ul><li>Regular updates and articles in weekly staff newsletter </li></ul><ul><li>Regular presentations to SRG, Managers and work groups and through them staff </li></ul><ul><li>Workplace Performance survey undertaken </li></ul><ul><li>Focus Groups during the design process </li></ul><ul><ul><li>Workstyles </li></ul></ul><ul><ul><li>Specialty areas </li></ul></ul><ul><ul><li>Laboratories </li></ul></ul><ul><ul><li>Office protocols </li></ul></ul><ul><li>Manager and staff involvement in decision making – eg ‘their areas’ and furniture </li></ul><ul><li>Workpoint Pilot – approximately 300 people participated. </li></ul><ul><li>Site visits </li></ul><ul><li>Site training and induction programs (mandatory program) </li></ul><ul><li>Communication, communication, etc. </li></ul>
    24. 25. Staff Engagement – ‘Post’ <ul><li>Ongoing communication during relocation and settling in </li></ul><ul><li>Ongoing implementation of the office protocols </li></ul><ul><li>Maintain workplace design principles </li></ul><ul><li>Post-implementation Review to include: </li></ul><ul><ul><li>Changes to staff satisfaction and productivity </li></ul></ul><ul><ul><li>Changes in Workplace Performance Survey </li></ul></ul><ul><ul><li>Retention/attraction/to be employer of choice </li></ul></ul><ul><li>Relocation to the building is just the start of the journey. </li></ul>
    25. 26. The Induction Experience <ul><li>Modules of Induction </li></ul><ul><li>Safety & Security e-learning </li></ul><ul><ul><li>Security, Emergency Procedures & OHS (including Lab awareness) </li></ul></ul><ul><ul><li>Workstation set up </li></ul></ul><ul><li>Behavioural </li></ul><ul><ul><li>Site tour to assist with building orientation </li></ul></ul><ul><ul><li>A-Z Building User Guide </li></ul></ul><ul><ul><li>Workplace Protocols (in line with our Corporate Values) </li></ul></ul><ul><li>Technical </li></ul><ul><ul><li>Telephony (VoIP phones) </li></ul></ul><ul><ul><li>MFDs (Multi Function Device) copy, print, scan, fax </li></ul></ul><ul><ul><li>AV Equipment </li></ul></ul><ul><ul><li>Tele-Conference and Video Conference facilities </li></ul></ul>
    26. 27. Induction cont. <ul><li>Further Support for our People </li></ul><ul><li>Move Champions </li></ul><ul><li>Technology Champions </li></ul><ul><li>OHS&W Champions </li></ul><ul><li>IS Champions and intranet site set up with online tutorials, user manuals and FAQs </li></ul><ul><li>Induction Support team </li></ul>
    27. 28. About Our Building
    28. 29. Snapshot of the Project <ul><li>Headcount – 940 people </li></ul><ul><li>Area 17,000sqm </li></ul><ul><li>over eight levels </li></ul><ul><ul><li>Offices 11,500sqm </li></ul></ul><ul><ul><li>Laboratories 5,300sqm </li></ul></ul><ul><ul><li>Learning 350sqm </li></ul></ul><ul><li>Density </li></ul><ul><ul><li>13 sqm/p typical </li></ul></ul><ul><ul><li>15 sqm/p overall (SA Government guidelines) </li></ul></ul><ul><li>Costs </li></ul><ul><ul><li>building AU$2,900/sqm </li></ul></ul><ul><ul><li>tenancy AU$1,350/sqm </li></ul></ul><ul><ul><li>laboratory AU$5,300/sqm </li></ul></ul><ul><li>Rental </li></ul><ul><ul><li>AU$420/sqm (gross) </li></ul></ul>Assumed exchange rate AUD$1 : SGD$1
    29. 30. 2,000sqm per level fritted double façade to West Building and Fitout Design by Hassell Workplace Strategy by DEGW <ul><li>Furniture system </li></ul><ul><ul><li>1800 x 900 bench (mobile) </li></ul></ul><ul><ul><li>supplier Schiavello </li></ul></ul>collaboration zone stair atrium
    30. 31. Significant Increase in Collaborative + Shared Space prior now 20% 49%
    31. 32. Who gets an office? <ul><li>No one … but we have lots of quiet and collaborative and quiet spaces we share </li></ul><ul><li>Offices are against our workplace principles! </li></ul><ul><li>Was there resistance? </li></ul><ul><li>How did we tackle that? </li></ul>
    32. 33. Avoiding Cost Premium <ul><li>One Star 10 - 19 pts </li></ul><ul><li>Two Star 20 - 29 pts </li></ul><ul><li>Three Star 30 - 44 pts </li></ul><ul><li>Four Star 45 - 59 pts Best Practice </li></ul><ul><li>Five Star 60 - 74 pts Australian Excellence (broadly equivalent to LEED platinum) </li></ul><ul><li>Six Star 75+ pts World Leader </li></ul><ul><li>The Green Building Council of Australia only certifies buildings that achieve a rating of Four, Five or Six Stars </li></ul>SA Water RFP target SA Water RFP achieved at market rental! 2% market premium
    33. 34. Greenstar in context with typical building stock 4, 5, 6 star buildings SA Water
    34. 35. Sustainability Rating Greenstar (Australia) Green Star – Office Design v2 Credit Summary for: SA Water VS1 (75+ points = 6 Greenstar) drivers for being green Category Total Points Available Total Points Achieved Management 12 12 Indoor Environment Quality 26 22 Energy 24 18 Transport 11 11 Water 13 12 Materials 14 9 Land Use and Ecology 8 4 Emissions 14 11 Total Credits 122 99 Innovation 5 3 Overall Weighted Score  87 design, probably 80 interiors
    35. 36. Challenges <ul><li>West facing façade </li></ul><ul><li>Deep footprint (2000m2) </li></ul><ul><li>Tight programme </li></ul><ul><li>Tough IEQ & energy targets </li></ul>
    36. 37. Light & Views <ul><li>Central open atrium (the brief did not ask for an atrium – it came out of satisfying how we wanted to use the building) </li></ul><ul><li>Western fritted veil </li></ul><ul><li>Automated blinds </li></ul>
    37. 38. Air <ul><li>Under Floor Ventilation </li></ul><ul><li>Individual control </li></ul><ul><li>100% outside air </li></ul><ul><li>150% to 300% increase in outdoor air quantity compared to normal building </li></ul><ul><li>C0 2 monitoring </li></ul><ul><li>Low off gassing carpets, paints, sealants, adhesives & joinery </li></ul><ul><li>Humidity Control </li></ul>Conventional – sneeze recirculates Under Floor – sneeze up and out!
    38. 39. Energy <ul><li>A fritted secondary glass skin in front of the building’s west façade to shade that façade and reduce solar loads while still retaining views and daylight. </li></ul><ul><li>High performance double glazing to north, south and east facades </li></ul><ul><li>Wider temperature band </li></ul><ul><li>Efficient water cooled chillers </li></ul><ul><li>340kWe trigeneration (electricity, heating & cooling) </li></ul>
    39. 40. Water <ul><li>Water efficiency </li></ul><ul><li>Rainwater collection </li></ul><ul><li>Class A water for toilet flushing & cooling tower </li></ul><ul><li>Recycling of fire test water </li></ul>
    40. 41. Benefits to Date <ul><li>Attraction to prospective employees </li></ul><ul><li>Retention, pride in the workplace </li></ul><ul><li>Flexibility – work and meet anywhere </li></ul><ul><li>Improved communication </li></ul><ul><li>Everything is transparent, opportunity to standardise </li></ul><ul><li>Supportive of collaboration, people bump into each other </li></ul><ul><li>Staff Amenity </li></ul><ul><li>Changed leadership behaviours, manage by being seen and by overhearing </li></ul><ul><li>Mixing of cultures </li></ul><ul><li>Very little downsides </li></ul>
    41. 42. Building and Fitout Design by Hassell Workplace Strategy by DEGW End