The Facilities Frontier: Third Places and New Corporate Workplaces
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This document discusses the shifting nature of work away from traditional offices to more distributed environments. It notes that currently 35% of corporate work is done at home and 30% is done in third places outside of traditional offices. There are business benefits to distributed work such as reduced real estate and support costs. However, distributed work also faces challenges such as distractions and lack of professional environments. The document proposes local workspace centers as a solution that provide professional environments for distributed workers near their homes with amenities and services catering to mobile work needs. Case studies and costs analyses suggest both individual workers and employers can realize savings through the use of such distributed workspaces.
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The Facilities Frontier: Third Places and New Corporate Workplaces
- 1. 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
- 2. 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-
- 3. 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-
- 4. 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-
- 5. A New Kind of Workplace is Emerging We call it a “Business Community Center™” © Copyright 2010 by The Work Design Collaborative. All rights reserved -4-
- 6. 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-
- 7. 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-
- 8. 1
- 9. 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!
- 10. The Challenges 3
- 11. 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
- 12. 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
- 13. The Satellite 6
- 14. 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
- 15. 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
- 16. Enhanced Quality Community/ of Local Business Life Reduced Increased Carbon Productivity Footprint 9
- 18. 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
- 19. 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
- 20. 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
- 21. The New Space Concept ■ The Neighborhood – Townhouse – Single Occupant – Phone Booth – Café – Library – Mail Box Etc. / Copy Center 4
- 24. The Townhouse 7
- 25. The Townhouse 8
- 26. The Call Center Solution 9
- 27. Cost to Reconfigure Space 10
- 28. Cost to Reconfigure Space 11
- 29. Making SCAN more Flexible/Agile 12 © Copyright 2002-2010 Work Design Collaborative LLC. All rights reserved.
- 30. The Youtube Video http://www.youtube.com/watch?v=k1A9AdVd0Ks 13
- 31. 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