Workplace Transformation for Worktech APAC by Cushman & Wakefield


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With some 200 occupiers in attendance, the conference focused on the future of work and the workplace as well as real estate, technology and innovation. C&W was represented by Sheridan Ware on the Tech & Trends Panel Session, discussing the role technology plays in empowering new ways of working. Sheridan also authored “Workplace Transformation” – a series of 6 Factsheets which can be used as a toolbox for change managers interested in workplace transformation. These factsheets will be distributed, among other channels, on our new Twitter page @CushWake Workplace which will be used to promote news, trends and tools for workplace transformation - including activity-based working, agile working, collaboration, innovation and sustainability.
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Workplace Transformation for Worktech APAC by Cushman & Wakefield

  1. 1. READY TO MAKE THE CHANGE?WORKPLACE TRANSFORMATIONFACTSHEETS INSIDE Be the first to find out as new factsheets are released – subscribe to us on Twitter @CWorkplace
  2. 2. WORKPLACE TRANSFORMATION THE CHANGE | TECHNOLOGYTechnology is enabling workplace transformation and blurring the distinction between AREAS TO ASSESSemployees’ work lives and personal lives. Work is now both a physical environment and avirtual environment; less a place to go and more something that employees can do anytime and GENERALanywhere, enabled by: • What is the current technology strategy and initiatives?DEVICES • How are employees currently supported in using technology devices and applications?No longer working from just a company-issued computer, employees are using their own • What are the current response times and employee satisfaction levels with IT services?devices – including laptops, smart phones, tablets and PDAs – allowing greater mobility and, in • Are there opportunities for cost savings through a more centralized approach?many cases, a simpler, easier-to-use and more interactive interface. DEVICESCONNECTIVITY • Which devices are currently supported and what do employees want?Leveraging ever-increasing bandwidth and connectivity to give employees ubiquitous andhigh-speed access. Faster connectivity also enables organizations to move data storage and • Is there an IT policy for Bring Your Own Device (BYOD)?processing outside of the traditional office which, in turn, enables employees and others to • Which devices will different employee types need moving forward?access systems via the ‘cloud’. • How much does it cost to outfit the average employee and how will this change?DESKTOP CONNECTIVITYPowered by cloud computing models employees can access their ‘virtual desktop’ anytime • What is the current bandwidth and how does this differ by location?and anywhere irrespective of location or device. With the decoupling of data, applications anddevices, the device simply provides the means of accessing the network which houses everything • Are offices currently set-up for ubiquitous wireless internet access?else – thereby enabling employees to bring their own device. • How would bandwidth need to be improved to support workplace transformation? • Where is data stored currently and what are the opportunities for greater integration?APPLICATIONSEmployees and other collaborators (e.g. suppliers, contractors, customers and partners) have DESKTOPaccess to new internet-based applications to support social networking, collaboration and • What systems do employees currently use and how do they log on?innovation. • How well are communications and applications integrated?TECHNOLOGY ENVIRONMENT • What changes would need to be made to enable a ‘virtual desktop’? APPLICATIONS • What applications do employees have or need to support their collaboration efforts? • What applications are needed to support the new workplace? • Who has or will have access to these applications? RISKS TO WATCH • Adding new devices creates greater complexity and needs to be carefully managed • Security (perceived and actual) can be threatened by new devices and applications DEVICES CONNECTIVITY DESKTOP APPLICATIONS • Allowing employees to use their own devices creates a greater need to separate personal and corporate data and ensure ongoing compliance • Any additional load on the network caused by introducing new devices or applications needs to be matched with increases in bandwidth to ensure no loss of productivity
  3. 3. DEFINING REQUIREMENTS CHECKLIST FOR CHANGE AREA POTENTIAL REQUIREMENTS • Office work zones are equipped with the technology required for  Develop an overarching strategy for changing technology but customize depending on DEVICES the relevant activity – including wireless internet, access by alien local requirements, nuances and cultural differences devices and interactive whiteboards CONNECTIVITY • Server hosting of applications and data to allow access anywhere  Think strategically about IT investment – providing the necessary infrastructure and through any device will involve upfront investment but this may be offset by lower IT salary costs (due to • Sufficient bandwidth to allow employees to access data and centralization and less time spent on managing local networks) and other expenses applications quickly and efficiently (due to BYOD and lower software purchasing and licensing costs) in the long-term DESKTOP • Single sign-on to everything securely across devices • Integration of collaboration and communication applications to  Look for opportunities to save on IT expenses through consolidating technologies and ensure they can be used easily and efficiently across multiple providers devices APPLICATIONS • Knowledge management – e.g. intranet  Ensure your IT employees have the skills and experience to implement the change COLLABORATION • Knowledge building – e.g. wikis, online workspaces • Innovation platforms  Don’t implement new technologies without a clear business purpose and non-IT • Social – e.g. social networking, social bookmarking stakeholders within the organization who are willing to drive adoption • Discussion – e.g. forums, discussion boards, blogs • Information – e.g. web syndication, RSS feeds  Outfit employees based on their employee type (i.e. job profile, mobility need and APPLICATIONS • Email and calendars selected option) – not all employees will require all devices or access to the same COMMUNICATION • Instant messaging applications • Enterprise telephony with phone number portability • Conferencing – video and audio  Ensure all employees are given adequate training for new devices and applications – • Messaging – video and audio particularly older generations who may not be as tech savvy • Online meetings and webinars • Podcasts  Consider new ways to provide better support to employees – e.g. self-help, automated • Presence and availability tools support and user support communities APPLICATIONS • Workplace management and reservation systems WORKPLACE • Smart technologies to act on events in the workplace  Stay informed– technology is continually changing and allowing even more efficient, • Online privacy policy productive and collaborative ways of working particularly as providers and platforms POLICIES converge • Security and data storage policies • Bring Your Own Device (BYOD) policy • Email etiquette policy TRAINING • How to use new devices • How to use new applications
  4. 4. WORKPLACE TRANSFORMATION THE CHANGE | SPACEWhile it’s the people that will determine whether workplace transformation is successful, AREAS TO ASSESSproviding them with an engaging and enjoyable work environment – whether physically orvirtually – will help make it happen. GENERAL • Does the current workspace match the brand, values and culture of our organization?The traditional office is shifting from a place employees come to complete their work hours, to • How does the workplace help or hinder efficiency, productivity and performance?a centre where they meet and collaborate. In fact, analysts suggest the percentage of personalspace needed in the office has shifted from 60% to 30% of the floor plan. Focusing on this • How much time per day do people lose:shift as an opportunity to increase desk efficiency is like looking at the organization through • To distractions?the wrong end of the telescope and is unlikely to achieve sustainable benefits. Try turning the • Looking for meeting rooms and other resources – e.g. whiteboards, projectors?telescope around and looking at the role that the workplace plays in supporting collaboration, • Due to technology problems – e.g. access to internet and printers, foreign devices?innovation and delivering competitive advantage. We like to call this the Interconnected Office(the iOffice) whose role is to reinforce interconnections including: ACTIVITY UTILIZATION • What modes of work does the workplace need to support and how significant is each?SENSE OF PURPOSE • Is the current space fit-for-purpose in terms of the different work modes?It should communicate the brand promise to customers, employees, shareholders, theenvironment and the community. • Who is collaborating and do they have the space and resources they need?SHARING SPACE UTILIZATIONNot desks but ideas – the workplace should stimulate conversation and collaboration across • What space do we have and what percentage of time is it occupied currently?teams, functions and with other organizations. • What percentage of space is devoted to shared areas versus individual workstations?SUSTAINABILITY • How much space is dedicated to storage?The workplace should be used efficiently and resources should not be wasted or underutilized. • What are current and possible sharing ratios?SOCIAL HUBThe workplace has an important social element which cannot be underestimated in attracting REAL ESTATE PORTFOLIOand retaining the best talent. • What is the cost to rent, operate and maintain the portfolio – overall and by location? • What percentage is real estate of total operating expenses – overall and by location? • Are consolidations required, for example, as a result of a merger or acquisition?THE INTERCONNECTED OFFICE • When are leases due for renewal across the portfolio and are we planning new offices? • Are there properties with particularly high rents or with space limitations? • Are any offices due for reconfiguration, for example, as a result of restructuring? • Are any offices due for major technology upgrades? RISKS TO WATCH SENSE OF • New workplace designs can increase the level of noise, interruptions and distractions SHARING SUSTAINABILITY SOCIAL HUB PURPOSE and increase the potential for people to over-communicate – making it critical to build in quiet and private spaces • Leaders often equate workplace transformation to desk sharing and working from home rather than enabling a variety of work locations and redesigning the traditional office around work activities to ultimately increase productivity and efficiency PHYSICAL + VIRTUAL
  5. 5. DEFINING REQUIREMENTS CHECKLIST FOR CHANGE AREA POTENTIAL REQUIREMENTS  Develop an overarching strategy for changing the workspace but customize depending on local requirements, nuances and cultural differences WORK SPACE • Open plan working environments with smaller desk spaces and limited or no personal offices  Recognize that reaping the benefits of workplace transformation requires much • Increased natural light and greater access to views and other amenities more than reconfiguring the traditional office – a focus on enhancing the efficiency of • Flexible furniture configuration to allow the workplace to adapt for workstations will not provide competitive advantage but enhancing the effectiveness different activities and reduce churn-related costs of people and driving cultural change will • Centralized filing systems  Consider all distributed work locations – not just working from home • Locker space for employees to store their belongings • Wayfinding and high interior visibility so employees can easily orient  In the office, experiment with different work zone alternatives and give employees a themselves in the workplace chance to test and provide feedback so they feel empowered and engaged in the change • Enable use of the office outside of normal working hours  Create virtual alternatives of physical work zones – e.g. video and audio conferences, WORK • On-demand desks – which can be booked in advance webinars, discussion boards and social networking tools ZONES • Touchdown desks – which can be taken on a first-come-first-served basis • Collaborative spaces – for groups to work together in brainstorming and co-creating  Communicate the purpose of each work zone to employees but resist putting too many rules around usage – allow them to adapt the workplace to their needs • Meeting rooms of varied sizes for different activities – e.g. booths for taking phone calls, alcoves for private one-on-one meetings and large rooms for team meetings or  Ensure there is sufficient quiet space as well as availability indicators to allow training employees privacy when they need it • Quiet rooms – for focused individual work • Project rooms – which can be booked for the duration of short-term assignments  Locate shared spaces centrally to drive traffic and encourage informal interaction but experiment to ensure they don’t become so busy that employees feel like they can’t • Social and relaxation spaces – free-flowing hallways and areas to enjoy downtime easily shift to having a private conversation with others or alone • Resource spaces – for shared resources such as printers, faxes and photocopiers  Find ways to create ownership over a communal space rather than an individual desk • All areas are equipped with necessary resources depending on the – e.g. through shared spaces and home zones activity they are intended to support – e.g. wireless internet, whiteboards, portable phone numbers  Time workplace changes to take advantage of other changes – such as consolidations, acquisitions, renovation and organizational restructures DISTRIBUTED • A variety of distributed work locations provided – not just working from home LOCATIONS • Employees have the ability to connect and work from these varied  Recognize that change takes time and it’s better to spend time experimenting with locations with minimal impediments different approaches and finding the right alternative which engages employees rather than to rush the change POLICIES • Office protocols – e.g. meeting management, client greeting, clear desk TRAINING • How to work effectively in the new office • How to book and use different work zones
  6. 6. WORKPLACE TRANSFORMATION THE CHANGE | PEOPLEToday’s business environment – characterized by increasing collaboration, competition for AREAS TO ASSESScustomers and talent, globalization and pressure to deliver greater value in a shorter period oftime – is requiring organizations, managers and employees to question how, where and when WORK FORCEwork gets done. • How many employees do we have currently and how will this change?As a result the very nature of work is changing and it’s estimated that by 2017 employees will • What type of work do employees do and how is this changing?spend 80% of their time collaborating; not just with their direct work teams but an increasingly • How satisfied are employees with current ways of working?complex network of suppliers, contractors, customers and partners located in different • What are their preferences for how, when and where they work?geographies and time zones. • How would they structure their day differently to be more efficient and productive?This is causing a shift in traditional hierarchical management styles with the focus moving awayfrom presence to performance and with an understanding that employees can work anytime and WORK CULTUREanywhere as long as their targets are met. • What is the organization’s culture and what do people pride themselves on?In the face of such a seismic shift, engaging the hearts and minds of your employees and • How is the culture reinforced through symbols, workplace design and work practices?management will be the key to making it happen. Through questionnaires, interviews, workshops • Are there any existing programs or desire to transform the organization’s culture?and experiments you must understand and act on their needs, concerns and ideas and ensure • What initiatives, if any, are already underway to effect this change?they have the skills and confidence to adapt to new ways of working. • How are employee performance and productivity currently measured? • What policies, processes and systems are in place for measuring performance?TRANSFORMATION LEVERS • Are there any planned changes to performance management systems or processes?SOCIALIZE FOCUS • If so, how are these going to be implemented? WORK MODES & PROFILES • What amount of time is spent on each of the work modes by job profile, department? • Which segments of the workforce are already highly mobile? • Which departments are asking for new technology or ways of working? • Who will be part of the change and which job profiles and locations will be eligible? • Who will be the best early adopters to experiment with new ways of working? RISKS TO WATCH • Managers may fear losing control if they are unable to see and monitor employees on aLEARN COLLABORATE daily basis and may lack confidence managing distributed teams • Resistance may come from those who believe stature is conferred by space allocation • Some employees may fear losing their desk, purpose and sense of belonging or not being seen in the office • Other employees may be enthusiastic about the change but their work activities will restrict mobility – e.g. paper-intensive work • Home is not an ideal environment for everyone due to lack of space, distractions, technological impediments or loneliness – creating the need for alternative locations
  7. 7. DEFINING REQUIREMENTS CHECKLIST FOR CHANGEAREA POTENTIAL REQUIREMENTS  Develop an overarching strategy for changing management and working styles butLEADERSHIP • Ensure the majority of leaders are engaged and willing to visibly support the customize depending on local requirements, nuances and cultural differences change • Encourage leaders to model desired behaviors – such as collaboration, informal  Take time to develop a comprehensive change management plan with a strong interaction and trust emphasis on effective engagement and communication at all levels throughout theEMPLOYEE • Segment the workforce on multiple levels: processTYPES - Level of mobility – e.g. mobile, offsite, office-based - Job profile – linked to work modes  Conduct visioning sessions to create a tangible and shared concept of the new space - Ability and willingness to accept change – which will determine the options available to them  Conduct one-on-one sessions with department heads to understand specific concerns - Importance to engage in the change effort and sign-off an agreed approach to effect the change • Provide suitable work zones, technology and policies for each segment and the types of activities they undertake  Give incentives to employees for making the change – e.g. new devices and • Develop and communicate personalized messages around each segment reimbursement of internet and phone expenses in exchange for giving up their deskDISTRIBUTED • Assist distributed teams in setting clear objectives and help them reach agreement  Provide tools that allow employees to assess the change on an individual basis – e.g.TEAMS on team member expectations, how decisions will get made, how information will a calculator to assess commuter cost and time savings be shared and how work will get done • Ensure accountability for following agreed norms and completing assigned tasks  Hire, promote, develop and celebrate employees who are able to make the switch and who exhibit supportive behaviors such as being collaborative, accountable andFACE-TO-FACE • Ensure regular communication for distributed teams – e.g. daily or weekly team autonomousCONNECTION meetings via video or audio conference • Provide opportunities for less frequent face-to-face meetings for geographically-  Assess leaders and managers on their ability to adapt to new ways of working and dispersed participants to meet, socialize, set team objectives and agree team model desired behaviors norms and processes • Require employees to come into the office at certain time intervals or for  Find ways to demonstrate position other than through symbolic space-related artifacts specific meetings – e.g. social recognition rather than the corner officePERFORMANCE • Clear goals and key performance indicators (KPIs) – especially for remote  Recognize that change takes time and develop a multi-phased approach – e.g. newMEASUREMENT employees employees adopt new practices immediately while existing employees are given options • Metrics and data to track performance  Recognize that some valuable employees will not be willing or able to make the changePOLICIES • Flexible working policies and manage these exceptions • Commuting guidelinesTRAINING • How to manage performance for managers – for soft skills (goal setting, measurement, coaching and feedback) and hard skills (performance management systems and policies) • How to manage performance for employees • How to effectively manage and work in distributed teams
  8. 8. WORKPLACE TRANSFORMATION THE CHANGE | PLANNING “By failing to prepare, you are preparing to fail” THE PLANNING PROCESS BENJAMIN FRANKLIN ANALYSE BUSINESS NEEDSThe success of any workplace transformation will be dependent on how well it is planned with • People – engage stakeholders and assess the desire to changerespect to the three transformation levers. • Competition – understand strategies for attracting customers and talent • Financial – understand expectations and cost reduction plansPEOPLE • Sustainability – understand goals and regulatory requirementsDesigning the workplace around your employee’s work activities and ensuring theirexpectations, concerns and ideas are acted on. Also empowering both employees and managers • Technology – understand the current infrastructure and gapsto adopt new ways of working through communication and training. DEVELOP BUSINESS CASESPACEProviding a variety of spaces – both physical and virtual – to complete their work activities • Develop a clear and tangible visionefficiently, productively and collaboratively. • Define objectives, benefits and metrics • Analyze high-level needs, requirements and investmentTECHNOLOGYEnabling the new workplace and new ways of working through new devices, applications and • Benchmark and undertake financial analysisconnectivity. • Assess risksIt’s important to develop an overarching strategy at the organizational level but customize the DESIGN THE CHANGEsolution – people, space and technology – at the local level after assessing specific requirementsand considering: • Develop an integrated team of key stakeholders • Conduct an organization-level assessment• the workforce demographics and needs (including cultural dimensions) • Define broad requirements - people, space + technology• the competitive landscape for customers and talent • Develop the workplace transformation strategy• financial performance and pressures • Develop the change management program• the economy and regulatory requirements (particularly sustainability) • Develop baseline tools, templates and processes to assist local implementation• existing technology and infrastructure gaps IMPLEMENT THE CHANGETRANSFORMATION LEVERS • Engage employees – at all levels (organization and locally) • Conduct local assessments and define requirements – people, space + technology • Identify early adopters, experiment and refine ideas PEOPLE • Document and share insights and learnings (psychological) • Roll out to different employee groups SPACE • Implement the change management program (physical) REFINE THE CHANGE TECHNOLOGY • Solicit feedback and track metrics on an ongoing basis (visual) • Conduct new experiments and roll out different approaches • Ongoing change management
  9. 9. ANATOMY OF A CHANGE MANAGEMENT PLAN COMMUNICATION STRATEGY & PHASESSTAKEHOLDER ENGAGEMENT | an experienced team for guidance and leadership• Management – buy into and visibly support the change LEVEL OF SUPPORT• Human Resources – train, coach and monitor employee impact• Real Estate – assess, develop plans and manage implementation• Information Technology – introduce new technology solutions• Corporate Communications – roll out the communication strategy• Consultants – architects, change managers and real estate consultants• Other Potential Stakeholders – including unions and employee representatives EMPLOYEE ENGAGEMENT | to create wide-spread buy-in and fuel the change • Effective Communication – with employees at every stage and across all levels • Involvement – early in the process to drive effective solutions and ensure buy-in • Early Adopters – carefully selected groups to experiment with new ways of working TIME • Feedback – provide ongoing opportunities to share ideas, comments and suggestions DISCOVERY DENIAL RESISTANCE ACCEPTANCE OWNERSHIP • Recognition & Rewards – for those who engage positively with the change (Inform & Involve) DISCOVERY (Inspire) DENIAL (Individualize) RESISTANCE (Institute) ACCEPTANCE (Innovate) OWNERSHIP INFORM &and concisely ShowINSPIRE in its Show how the change Clearly INVOLVE the change INDIVIDUALIZE INSTITUTE INNOVATE Engrain the change Constantly look for MEASUREMENT | to measure the impact and sell the change Clearly andthe change - Show the change in impacts each person and explain concisely initial stages to make Show how the Engrain thewe do new ways to improve as the way change Constantly look OBJECTIVE what, why, when, how, its initial stages to explain the change - it tangible for changeand what each group impacts they business and map as the way we do the way we work for new ways to OBJECTIVE • Choose – appropriate metrics: people, competition, financial, sustainability, technology what, why, when, how, employees and to who - its benefits and make it tangible for need to do person and group business andto the change map improve the way • Baseline – each metric at the beginning of the change progress who - itsitbenefits to the employeesthat the how relates and reaffirm and to and what they corporate success the change to we work how it relates to values, change it thathappen organization’s the reaffirm will the need to do corporate success • Track – progress against each metric at key milestones and beyond culture and goals organization’s values, change will happen • Report – progress as part of the wider communication plan culture and goals Experimenting Visioning Sessions ACTIVITIES Sharing Quick Wins Focus Groups Consulting Celebrating Successes Experimenting Training Innovation Groups Workshops Experimenting Visioning Sessions Creating Role Models Sharing Quick Tracking Metrics Experimenting COMMUNICATION | the key to effective change management Interviewing Providing Examples Actioning Feedback Reporting Implementing Focus Groups Wins Celebrating Consulting ACTIVITIES Surveying Training Training Innovation Groups • Clear & Concise – develop short, tangible and repeatable messages Workshops Benchmarking Showing Progress Successes Experimenting Actioning Feedback Tracking Metrics Experimenting Interviewing Creating Role Models Actioning Feedback • Personal – craft customized messages for different groups Surveying Providing Examples Training Reporting Implementing • Benefits-Focused – focus on the ‘what’s-in-it-for-me’ for different groups Benchmarking Showing Progress Email, Intranet, Newsletter CHANNELS Actioning Feedback • Positive – create early wins and provide examples of the benefits in action Webinars Town-Hall Meetings Team Meetings Reports Webinars • Authoritative – have consistent messages delivered by respected leaders Posters Email, Intranet, Newsletter Site Visits CHANNELS • Actionable – compel people to get involved and feedback at every opportunity Town-Hall Meetings Mock-Ups Webinars Social networking • Interactive – act on people’s feedback and show their opinion is valued Posters Team Meetings Reports Webinars Site Visits • Regular & Timely – provide updates frequently and with time to act on feedback • Encompassing – delivered at multiple levels and through multiple channels Mock-Ups Social Networking
  10. 10. WORKPLACE TRANSFORMATION THE BUSINESS CASE ANATOMY OF A BUSINESS CASE “Organizations that ignore the changes in work patterns, workforce EXECUTIVE SUMMARY and work environment are likely to find themselves at a considerable • Vision – what is workplace transformation and what is the scope of the change? disadvantage from which it will be difficult, if not impossible, to recover.” • Objectives – what do we aim to achieve through workplace transformation? JOURNAL OF CORPORATE REAL ESTATE • Benefits – what tangible and positive changes will this bring? • Investment – how much time and funding will be required? • Timing – what are the main activities and how long will they take?When developing a Business Case for workplace transformation it’s important to realize that noone size fits all.Your Business Case should be designed around the specific situation and benefits • Measurement – how will success be defined and results measured?that can be achieved for your organization.Whether it’s improving employee productivity, efficiency and morale through the rollout of new NEEDS ANALYSIStechnologies or strengthening agility and lowering expenses by changing the physical and virtual • People – what are our employees’ expectations and how are they changing?working environments, the Business Case must uncover what’s driving workplace transformation • Competition – how must we compete for talent and customers?in your organization and all associated benefits. While an effective workplace strategy can save • Financial – how are expectations for financial results changing?up to 40% of your real estate costs, benefits relating to people, competition, sustainability andtechnology can be collectively greater with the right strategy. • Sustainability – how are government, customer or investor expectations changing? • Technology – how can technology enable a new workplace?Focusing beyond pure cost savings, giving a clear statement of objectives and showing howresults will be measured in support of broader organizational goals will also engender greatercross-functional involvement and buy-in – a key to making the change a success. REQUIREMENTS ANALYSISGiven workplace transformation will impact people throughout your organization, the Business • People – how will management styles, policies and incentives need to change?Case should start with a clear and tangible vision of what transformation means – including how, • Space – how will the physical office change and what other spaces are required?when and where work will take place in the new environment. • Technology – what are the requirements for devices, applications and connectivity?WORK SPACES OF TODAY COST BENEFIT ANALYSIS • Benchmark – results achieved by similar organizations • Identify – investment required and expected cost savings • Calculate – financial returns using cash flow modeling techniques RISK ASSESSMENTCORPORATE ALTERNATIVE HOME TRANSIT COMMUNITY • People – who will be impacted and how will their concerns be managed? OFFICE OFFICES taxis cafes • Space – what issues will new work spaces create and how will they be managed? client sites airport lounges libraries satellite offices hotels • Technology – what risks do new technologies pose and how can these be addressed?
  11. 11. STATISTICS TO CONSIDER RESULTS ACHIEVEDA key part to gaining buy-in and support for the Business Case is a statement of the likely Companies are achieving significant results across the five key areas through the implementationbenefits that can be achieved. The following statistics point to the potential upside and trends of workplace transformation strategies.driving workplace transformation. Deutsche Bank’s db New Workplace Program reduced Macquarie DRIVER INTERESTING STATISTICS churn costs by 70%, led to a10-15% reduction in Group reduced PEOPLE • iPass has found that the average mobile worker works 240 hours a occupancy and reduced power expenses while also energy year longer than the rest of the workforce decreasing decision-making time and giving employees consumption by a greater feeling of ownership over the office space 50%, elevator • On average, commuting takes employees 80 minutes per day - it has use by 50%, been identified as one of the main sources of daily stress and printing by associated with poor sleep quality, bad health, exhaustion and 53% and paper breakdown in personal relationships Lilly, by moving to an open-plan, activity-based storage by 78% environment, increased employee satisfaction with the at One Shelley COMPETITION • According to IBM, outperforming companies are more than three space by almost double, reduced space per employee Street in Sydney times more likely to have adopted new ways of working by 26%, capital costs per employee by almost 50% and by designing the • Approximately one-third of employers globally find it difficult to fill job decreased the amount of time lost to distractions, office around vacancies due to lack of available talent - the issue is more acute in waiting, and looking for meeting rooms by 16% - collaborative Asia Pacific (81% of employers in Japan) employees also say the new environment stimulates work • In a survey by Robert Half International 33% of CFOs said greater creativity telecommuting was the best way to attract talent while 46% said it rated second behind salary FINANCIAL • Behind salaries real estate is the most significant expense for most Microsoft, by designing their Schipol Airport Campus in Amsterdam around companies; accounting on average for 15% of total operating activities not desks, increased sales by 51%, significantly improved employee expenses satisfaction, reduced real estate costs by 30% as well as IT, administration and • Workplace studies consistently find upwards of 50% of desk space is communication costs – including paper usage which decreased, on average, from underutilized 80 pages a day to one page a day • Through workplace transformation, companies have been able to reduce real estate costs by over 30% and reduce churn to as low as zero American Express Blue Work Greenstar reports that at the City of SUSTAINABILITY • A McKinsey study found that 40% of global emissions are generated by provides a range of flexible Melbourne’s CH2 green rated building, buildings while commuting accounts for10-20% of a person’s own work arrangements and has led productivity has increased nearly 11%; carbon footprint – both of which can be reduced through workforce to an increased ability to attract saving occupants $2 million annually transformation younger workers, increased employee productivity, TECHNOLOGY • A Cisco study revealed that 40% of college students and 45% of young engagement and retention, Deloitte reduced square footage per employees would accept a lower-paying job if it had more flexibility on employee by 30% and achieved a 30% decreased retraining expenses, device choice, social media access and mobility reduction in associated energy costs – a lowered the carbon footprint • Employees using their own devices enjoy increased mobility, higher job and increased collaboration and saving of over $100 million achieved with satisfaction and improvements in efficiency and productivity innovation 205 years of implementation
  12. 12. WORKPLACE TRANSFORMATION THE REASONThe workplace as we know it is dramatically changing. The nature of work, shifting demographics collaborative and goal-orientated, they have a strong work ethic and may look to transition to ain the workforce, increased competition, financial pressures and a sharper focus on sustainability different way of working rather than retire completely.mean traditional workplaces and working styles are increasingly unsuitable for our currentreality. Meanwhile, changing management styles and technological advances are enabling new GENERATION Xways of working. Born between 1965 and 1980, this generation is entrepreneurial, independent, skeptical, individualistic, ambitious and eager to learn new skills. They respect authority less and value work-life balance more than their predecessors and are less loyal to their employers; havingKEY DRIVERS seen their hardworking parents lose their jobs in the 1980s. This is the first generation to grow up with computers, so they are more comfortable with technology. TECHNOLOGY ENABLEMENT GENERATION Y Born between1981 and 1999, this generation has grown up consumed by the internet and mobile devices and have a preference to learn and communicate electronically rather than through face-to-face contact. Avid multi-taskers and team players, they value non-traditional PEOPLE COMPETITION work settings, flexible work and are more environmentally-conscious than their predecessors. While new to the workforce they will drive enduring change especially in the face of increasingly competitive labor markets. FUTURE GENERATIONS While they are yet to enter the workforce those born in the year 2000 and beyond are likely to have the greatest impact on the way we work. The future workforce has grown up consumed by technology – the internet and mobile devices are completely integrated in their recreation time FINANCIAL SUSTAINABILITY and in the classroom. This is the generation that is always connected, mobile and able to read naturally onscreen. With their entrance into the workforce beginning within the next decade, companies should consider now what their expectations will be and how that will shape how, when and where work will get done in the future. COMPETITION | how they work The growth of the service-based knowledge economy, greater customer demands for newPEOPLE | who is working offerings and increased responsiveness, and globalization is forcing organizations to continuallyFor the first time in history we have four generations in the workplace, each with their own restructure, push decision making down into local markets, innovate and collaborate acrossunique characteristics and expectations. With fewer younger people to replace those retiring, borders. Traditional employer-employee relationships are being replaced with a complexcompanies must deliver on these employee expectations in order to remain competitive amid network of employees, suppliers, contractors, customers and partners working together tothe coming shortage of workers. effect change; requiring physical and virtual workspaces that match to the new reality and aTHE TRADITIONALISTS move away from command-and-control, hierarchical management styles.Born between 1927 and 1945, this generation have largely retired from the workforce.Hardworking, loyal and the least technologically savvy of the generations, they remain an FINANCIAL | what they achieveimportant source of business knowledge and experience but may require more flexible With relentless pressure to deliver greater value to shareholders, organizations are looking atarrangements to ensure their continued participation. new models to continually reduce operating expenses. Evidenced in the growing trend to outsource non-core functions, offshore to lower cost or remote locations and contract to fillBABY BOOMERS short-term needs, costs at all levels are being examined and either reduced, removed or madeBorn between 1946 and 1964, this generation, either by choice or necessity brought about by more flexible – including salaries, real estate and travel.the economic downturn of 2008-2009, are opting to stay in the workforce longer. Positive,
  13. 13. SUSTAINABILITY | what impact they make THE BENEFITSSustainability is becoming an important consideration at multiple levels and making companiesquestion where, when and how their employees work: DRIVER BENEFITS• Society – triple bottom line reporting, compliance with environmental regulations and the PEOPLE • Ability to attract high-quality talent need to place less pressure on city infrastructure. • Increased employee satisfaction and retention• Company – reducing emissions, energy and waste and enhancing brand awareness and • Increased mobility and flexibility positioning with investors and consumers as an environmentally and socially-responsible organization. • Increased productivity and efficiency – through reduced commuting time and accessibility via multiple devices• Individual – reducing the carbon footprint of employees – for example through reduced commuting and business travel - and catering to the expectations of an increasingly • Improved work-life balance for employees environmentally-conscious workforce. • Reduced absenteeism • Increased diversityTECHNOLOGY | where they workAll these changes are being enabled by faster connectivity allowing the introduction of new COMPETITION • Increased collaboration and information sharingtechnologies, devices and applications which are untethering employees from the traditional • Greater innovation and speed to marketoffice and workstation. Such advancements in technology and communication now allow work • Greater accountabilityto be done from anywhere and at any time and enable the Distributed Organization to become • Increased business agilitya reality. • Faster customer response time • Higher quality DISTRIBUTED DECISION MAKING • Increased customer satisfaction agility, competitiveness • Increased brand awareness • Improved brand image FINANCIAL • Lower recruitment costs DISTRIBUTED • Lower real estate and churn expenses – through space reductions, increased PLACE DISTRIBUTED utilization and greater flexibility mobility RESPONSIBILITY • Lower technology expenses – including devices, network management, outsourcing, contracting updates and purchasing and licensing costs • Lower operating expenses – including travel, paper and power DISTRIBUTED ORGANIZATION SUSTAINABILITY • Lower water, energy and paper usage • Lower carbon footprint • Improved air quality • Healthier and more productive employees • Enhanced brand awareness DISTRIBUTED DISTRIBUTED TECHNOLOGY • Higher return on investment (ROI) from technology investments WORK HOURS GEOGRAPHIES • Enhanced disaster recovery and business continuity collaboration off-shoring, globalization • More robust security
  14. 14.