Improving Productivity Through Work Space Design

Transcription

1 Improving Productivity Through Work Space Design Philip Cowling Director Cromwell Projects and Technical Solutions

2 The Big Question What is Productivity? How is it measured? Is the data readily available and comparable: Relevance Accuracy Impartial Is it transferable - is it relevant across the workplace

3 Definition of Productivity Workplace design may promote organizational success by creating environments that support work quantity, quality, and style, while improving turnover and absentee rates (Becker, 1981). The workforce is by far the most valuable asset of any business, and almost always the biggest cost. A business that gives serious attention to the physical environment of the office is far more likely to increase staff productivity than one which ignores the building. The cost of labour accounts for up to 80%-90% of an office-based company s total expenditure, overshadowing the cost of operating the building, including rent, energy consumption and other outgoings. Even a tiny increase in employee productivity would quickly pay back any increase in these other costs (extract from 500 Collins St Employee Productivity in a Sustainable Building report Kador and others). 3

4 Productivity Influences are complex Business and occupant processes need to be understood Call Centre Legal and Professional Behavioural Source office productivity a self assessed approach to office evaluation Dr Barry Haynes

5 Productivity Productivity Occupant interaction with their Environment Source office productivity a self assessed approach to office evaluation - Dr Barry Haynes

6 Attributes of the Physical Environment Comfort & Environmental Services o Acoustics o Temperature o Lighting o Ventilation quantity, quality o Air Velocity o Humidity o External views o Distance to natural light o Cleanliness Interaction, Comfort & Layout o Bike facilities, shower, amenities o Transport nodes o Location o Flexibility of workspace o Retail / social Office Layout, Interaction o Horizontal and vertical integration floor plate size o Inter floor travel o Security and access control o Flexibility and simplicity for churn o Breakout spaces o Quiet rooms o Connectivity / circulation o Privacy o Formal and informal zones o Identity o Furnishings / workstations o IT 6

7 Comparison to the Green Star model Ventilation Rate Air Change Effectiveness Carbon Dioxide monitoring Daylight Daylight glare control HF ballasts Electric light levels External Views Thermal comfort Individual comfort control Hazardous materials Internal noise levels VOC,s Formaldehyde minimisation Mould prevention Tenant exhaust Management Indoor Env Quality Energy Transport Water Materials Land Use Ecology Emissions Innovation Distraction Env services Office layout Interaction Designated areas Comfort Interaction points 7

8 Drivers for Refurbishment Capex and Life Cycle Time to replace do it the same or improve? Event driven Purchase / sale Grant GBF etc Re-positioning Part of a larger corporate commitment Defensive Lease Tenant retention Employee retention, new employee attraction Energy Efficiency and cost reduction NABERS Compliance

9 Productivity Improvements as a Driver Is Productivity a driver for change in itself? Employee costs are typically 80-90% of total business costs Over a building life the building construction and operating costs represents less than 1% of the total costs of its occupants - Professor Derek Clements Croome Cost for rent is typically in the order of 8.5% - 10% of operations costs Operation cost benefits include Improved productivity Sick leave, engagement, reduced mistakes, distraction, complaints Staff retention avoiding Recruitment fees Increased training costs, loss of IP, continuity and succession planning Impacts from skills shortages Loss of skilled personnel to competitors or from the industry Other intangibles The cost of hiring and training a new employee can vary from 25 percent to 200 percent of annual compensation. Costs include customer service disruption, emotional costs, loss of morale, burnout (Source, the American Management Association) 9

10 Workplace Relocation & Design Factors Encouraging Relocation or Redesign Source Colliers 2010 survey Change in business needs (73%) Attract/ Retain Staff & Clients (45%) Amenities / Services (30%) Base: All respondents (n=351) Lease terms (6%)

11 Workplace Relocation & Design Workplace Redesign Source Colliers 2010 Survey Year Promotes team development & collaboration 69% 70% 65% Easily transformed to support changing needs 69% 70% 59% Provides good environmental performance 66% 77% 49% Maximises staff health and wellbeing 65% 71% 56% Flexible lease terms 60% 59% 42% Promotes knowledge transfer 59% 61% 59% Provides areas for privacy 56% 50% 46% Provides natural light to most of the floor plate 53% 59% 50% Provides significant informal, communal space for staff 51% 55% 51% Promotes organisational transparency 47% 44% 44% Provides for flexible work styles 45% 44% 51% Provides an open-plan layout 40% 44% 57% Provides a different floor-plate size 46% Greater density or a tighter workspace ratio per person 30% Base: Australian respondents (n=274) 11

12 Changes in Staff Culture Changes in Staff Expectations Over Last 3 Years 72% of tenants believe staff expectations have changed. For Australian staff, air conditioning/air quality, bike racks and showers, and access to shops and cafes were more important factors in 2010 than Base: All respondents (n=351) 12

13 Environmental Sustainability What are the factors driving your organisation s decision to occupy a green building? Operational cost savings is the number one factor driving tenants decisions to occupy a green building. Base: All respondents (n=351) 13

14 Is there value? Yes And there is a growing body of evidence According to a 2011 update of an ongoing study, conducted by CBRE, the University of San Diego s Burnham-Moores Centre for Real Estate, and McGraw- Hill Construction. Survey comprised 150 CBRE-managed office buildings and surveys with over 2,500 building residents Over a three year period, LEED certified buildings showed an improvement of 3.1% in both building occupancy and rental rates. Green buildings were identified as a key component in employee satisfaction and productivity. 94% of respondents tenant managers reported higher worker satisfaction and 19% of tenants registered higher work productivity. Source CBRE Do Green Buildings Make Dollars and Sense?

15 Productivity the financial case There is now an ever increasing body of evidence to support increases in productivity when a high quality environment is provided LEED a number of studies completed on LEED silver, gold and platinum office developments and refurbishments BREAM UK including the BCO studies Australia Green star case studies, conferences, technical sessions and papers Studies tend to show a pattern and suggest potential to improve productivity by 3% to as much as 20% 15

16 Productivity the financial case Hassell 61 Little Collins St Productivity self assessed up by 3% health and well being significantly increased Sustainability Victoria sickness down 30%, concentration index increased 34% and engagement 41% At the City of Melbourne s CH2, Australia's first 6 Star Green Star (V1) - Office Design rated building, productivity increases of 10.9% were reported following staffrelocation, with an estimated annual cost savings of $2 million. 500 Collins Street - occupant studies identified 39% reduction in employee sick days 7% increase in billing hours ratio with a 12% reduction in average monthly hours worked 9% increase in typing rates 12% increase in self reported productivity 16

17 Productivity the financial case Case Study Productivity and Indoor Environment Assessment Before and After Base Building Energy Reduction Works - Brian Churchill, Local Government Super, Roger Walker, Walker Eco Strategies, Vyt Garnys, Cetec Followed a study on 4 office refurbishments 17

18 Productivity the financial case Rent is approximately 8.5% - 10% of business costs Salaries represent 80% - 90% of business operational costs 1% increase in productivity equivalent of 8.5% of rental cost For a typical 10,000m² office with an occupant density of 1:16 and assuming the current published weekly average wage for public servants at $1440 plus 15% on costs would see a 4% increase in productivity equate to savings (or increased productivity gain of approx $200/m²) Occupancy costs outgoings are also generally considerably lower in energy efficient and modern offices PCA A grade outgoings are $100/m² for Brisbane CBD 5 star Nabers rated well designed modern offices - $65 - $70/m 30% savings Salary cost taken from Australian Bureau of statistics for full time Public service worker Aug

19 Productivity the Road to Change Communicating the vision Potentially dramatic changes to the physical & working environment require buy in Appoint change champions to present designs, court opinions and sell the vision Energex took their employees on the journey to relocating to Breakfast Creek Understanding the outcomes being sought from the physical environment and the cultural one The internal fit out is not just about space ratios and workstations Re-thinking and planning business interactions and processes Storage and documentation Vs electronic and offsite IT file servers and hardware Vs Cloud computing Business and social needs Communication is king drive to open plan efficient, clean, flexible Minimise distraction acoustics, private space, function and dept planning Maximise interaction social, gyms, bike facilities, break outs, food, amenity 19

20 Productivity the Road to Change Large open plan floor plates to provide maximum efficiency for occupant density in work zones & can provide effective space and light Maximise user control and choice lighting, temp, Educate new systems, new expectations, building user guides Creating Identity Colour, signage, wayfinding Theme Provide support Create expectations check to make sure they are being delivered Building tuning is not just about defects or the AC temperature Building users guides, staff visits and involvement pre and post occupancy Soft landings Resilience Business continuity, disaster planning Flexibility and longevity Efficiency 20

21 Benchmarks To look for the very best physical improvements we can look to our own doorstep in Qld and nationally across Australia New developments achieving 6 star Green Star and 5 star+ NABERS are setting architectural and IEQ benchmarks at world best practice Qld Energex Breakfast Creek Road HQ Wickham Terrace 133 Albert St I45 Anne Street Green Square, St Pauls Terrace Santos Place, Turbot St Currently 49, 6 star projects and 152, 5 star certified projects

22 Energex Head Quarters Newstead 22

23 A typical 80 s office typical 90 s and early 2000 fit out How much do you value your work force 23

24 Victoria Avenue Chatswood - Typical office floor layouts 24

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27 321 Exhibition Street Office Refurbishment 321 Exhibition Street Built in 1989 Home to Australia Post for 20+yrs Vacated Nov 2009 NABERS 4 star Target 5 star NABERS, 5 star V3 green star 4.5 star water Façade restoration Full building refurbishment Gas tri-generation system Full building emergency power support Premium grade lifts destination control Targeted IEQ initiatives Works were to be complete in 6 months 100% leased Mar 2010 to ORIGIN 27

28 321 Exhibition Street Typical Floor Plan Workplace Layout Centre core lifts and toilets Inter floor stairs Common located breakout space and meeting rooms Circulation access around perimeter maximises natural light and reduces solar gain Acoustic ceiling tiles minimises noise breakout Digital Lighting control Quite rooms Variety of user spaces IT sophisticated to support a layout to provide for flexibility and fast efficient internal churn 28

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34 well versed well timed well considered