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Simon Carter, Head of Corporate Property for National Grid - Estate Strategy = flexibility ?


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Simon Carter, Head of Corporate Property for National Grid, spoke at the FMP Event October 2013.

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Simon Carter, Head of Corporate Property for National Grid - Estate Strategy = flexibility ?

  1. 1. Estate Strategy = flexibility ? Simon Carter, Head of Corporate Property, National Grid 18th October 2013
  2. 2. National Grid – who are we • • • Originated from the restructuring of the UK gas industry in 1986 and the UK electricity industry in 1990 and entered the US energy delivery market in 2000 A network utility, based in the UK and the US. Our principal interests are: – Transmission and distribution of electricity and gas – Metering services, liquefied natural gas facilities and property in the UK – Electricity interconnectors in the UK and US Our Vision: – Connecting you to your energy needs today, trusted to help you meet your energy needs tomorrow – Be a recognised leader in the development and operation of safe, reliable and sustainable energy infrastructure to meet the needs of our customers and communities and generate value for our investors…
  3. 3. Estate strategy – what & how What: • Efficiency and effective estate – fit for purpose and benchmarked • Safe, reliable, sustainable and productive work environment How: • Business demand & estate supply analysis – total vs core • Optimise occupancy – integrated approach, considering: – Business continuity, Business separation, Risk – Best performing – efficiency & effectiveness – Estate margin • 10 year plan and business case driven: – Lease breaks, site re developments, sharing, purchase vs lease, workplace strategy … • Property asset management
  4. 4. Introduce flexibility… • • • • There are many ways to match supply with demand If you ‘ask the business’ there is a tendency to add ‘fat’ to manage uncertainty.. the unknown.. So having a real estate solution that provides: – real flexibility – reduces cost – reduces energy costs – maintains effectiveness and delights staff ! …… is essential We developed Smart Workspace, an office sharing plan aimed at getting all these in one…
  5. 5. Project positioning – Smart Workspace Aim: ……“to increase collaboration and knowledge sharing across the businesses in order to drive efficiencies and innovation. We believe that our buildings could be used much more and may no longer suit the way we work today.” Approach: • Workplace research to better understand current and future organisational and space requirements • Use design, lighting levels and colours to engage people • A pilot project will be implemented to test ideas such as greater variety of space and desk sharing • The pilot will be measured in a post occupancy evaluation • Deploy excellent change management tools and processes
  6. 6. Clarity of purpose – Company & Staff Engagement • More sustainable use of existing buildings What’s in it for National Grid • Cost savings - £8-10m p.a. • Better connected teams and more knowledge sharing • Promote brand and culture through the work space • Potential to increase employee productivity What’s in it for me? • Choice over where to work • Wider variety of workspaces to work from including desks, informal meeting, project spaces and quiet rooms • New, better quality work environment • More buzz and quiet spaces • Better access to leaders and each other within and across teams
  7. 7. Data collection… Envisioning session Informal/Ad hoc Silent Communicative Focus within discipline Face to face interaction Focus groups Self motivated Lack of sharing, silos, focused individual work Now 70% Solo work Focus across discipline Team working, stimulated Future Not obtainable Average internal mobility: 22% Average active occupancy: 41% 50% 40% 30% 20% 10% 0% 08:00 09:00 10:00 11:00 12:00 13:00 14:00 Pausing Individual work Collaboration 15:00 16:00 17:00 Time of Day Work styles breakdown 11% 9% 31% 13% 35% Anchors Task based residents Clear company presence - bold Unoccupied 60% Virtual interaction Directed by others Empty Average empty: 37% 80% Residents Identity, hidden beneath the surface Core day 90% Percentage of time desks used Formal/Scheduled Group based Observations 100% Internally mobile Knowledge workers Externally mobile Strategic Management Managers Percentage time spent in different locations by job level
  8. 8. Key research themes and opportunities Meeting culture Increase communication Balance need for concentration with team work Increase variety of settings • Mix of formal and informal meeting spaces distributed throughout floor • Provision of project space • Non assigned desks for some – encourage movement and interaction • Team areas with signage and expression of identity • Better interaction points on floor • Easily accessible open and enclosed small working spaces • Protocols which allow productive working in open plan areas • Provision of different settings to accommodate various working tasks and provide less regimented layout Flexibility related to job types • Higher job grades work more flexibly than lower grades; more mobile Provide stimulating and creative environment • Landmarks provided on floor to express National Grid culture • A vibrant, modern and professional design Increase floor density • Potential to increase overall floor densities by up to 30%
  9. 9. Design - Menu of spaces and zoning Legends Cores Hub / Social Space. Business Lounge / Touchdown. Bookable Meeting Spaces. Variety of Types. Meeting Rooms & Study Booths. Open / Enclosed / Semi-enclosed Collaborative Space. Project / Mtg / Workspace. Open Workspace Copy / Print & Tea / Vending General store / Comms (C) Main Entry to Floor Access to Lift
  10. 10. Osprey House, Nottingham BCO Best Fit Out & Occupation - Midlands & East Anglia Award Winner 2013 • Osprey House • Follows the same design principles • Similar occupancy levels • However business separation created a complexity to the occupation with 5 different businesses operating out of one building, all to National Grid’s standards • 25,000 sq ft for ~400 staff • ~£1500 – 2000 per head / year • The business case is clear…
  11. 11. People - Workplace protocols  General principles: • Everyone will work in an open plan environment with access a range of bookable and non-bookable spaces • Protocols apply equally to all regardless of grade • Everyone will have a team base to go to every day • Team bases do not ‘belong’ to anyone  Protocols are.. • not hard and fast • shared etiquette and common sense • enables workspace to work • new desired behaviours • ‘collective’ decision  Today the transformed floor plates are basically self managed
  12. 12. So, what’s been achieved ? • Flexibility and utilisation • Collaboration, creativity & innovation • Sustainability & Cost Effectiveness “85% of staff when asked said they didn’t want to go back to their old working environment” “89% of staff said they have been able to find the workplace of their choice”
  13. 13. Flexibility and utilisation  Higher utilisation  Variety of settings to suit activities  Move from territorial, hierarchical culture
  14. 14. Achieving Higher Utilisation • The pilot has enabled a 15% increase in workspace utilisation • Empty spaces have decreased by almost a quarter (24%) • The levels of ‘temporarily unoccupied’ desks has also increased by 9% indicating increased internal mobility as people use the variety of spaces available to them Observation study – utilisation of desks Before: Now: Open plan desks and offices 37% empty 13% empty 31% temporarily unoccupied 22% temporarily unoccupied 48% individual work 33% individual work 8% collaboration 8% collaboration Change Open plan desks
  15. 15. Collaboration, creativity & innovation  Increase ad-hoc interaction and knowledge sharing within teams  Break down silos and increase knowledge sharing across teams  Support individual work and collaboration  Increase presence of brand values  Support recruitment and retention
  16. 16. Supporting collaboration and creativity • Every item in the survey relating to collaboration and creativity has improved since the move • The pilot performs better with regard to supporting effective team working, knowledge sharing and ad-hoc meetings • Furthermore the pilot provides a significantly more stimulating and creative environment for occupants Average importance (post) Average performance (pre) Average performance (post) “Sitting and working alongside Property members that I previously did not come into contact with very often has enhanced my working relationships and aids productivity and delivery of service…”
  17. 17. Sustainability & Cost Effectiveness  Ensure IT is aligned with flexible working  Change habits in order to make change sustainable  Helps deliver a 15-18% reduction in our (CRE) carbon foot print
  18. 18. Changing habits is more sustainable • Comments in the survey suggest that new habits are forming which support lasting change • Particularly evident is the shift to clear desk policy and paper / filing management “Clear desk policy – it’s a nice tidy place to work and I have identified more efficient ways of working that are proving effective” “It has forced a more focussed approach to filing and shared document management” “there’s greater collaboration within the team through people moving around the floor plate”
  19. 19. A great result .. • • • New UK standard for National Grid, ~4500 people now working in transformed environments… ~500 more planned Nearly halved the space allocation per person – benchmark performance increased significantly – TOCS and IPD Enabling estate consolidation: – Increasing collaboration and engagement – Recruitment & retention – ~£8 – 10m per annum savings
  20. 20. Thank you for listening….