EMERGING WORKPLACE STRATEGY (EWS) A Case Study for IFMA Workplace Evolutionaries April 2016 Indianapolis, IN

Transcription

1 EMERGING WORKPLACE STRATEGY (EWS) A Case Study for IFMA Workplace Evolutionaries April 2016 Indianapolis, IN

2 About our Presenter Denise Elliott Progressive Corporate Real Estate 11 years at Progressive Workplace Evangelist Consultative background Soccer

3 Progressive Insurance facts at a glance #153 on Fortune 500 list (2015) $20 billion in total revenues $2 billion in profits Founded: 1937 Stock Symbol (NYSE): PGR Employees: 28,000 Authorized Independent Agents: 30,000+ Contact Centers: Austin, Cleveland, Colorado Springs, Sacramento, Tampa, and Phoenix (placed by labor pool and time zones)

4 Progressive Real Estate (March 2016) Total Portfolio 306 branch offices (primarily claims) 70 service centers (66 owned) 36 regional buildings 412 Properties Total 1.9 million rsf (Avg: 6,000 sf) 0.8 million rsf (Avg: 12,000 sf) 3.8 million rsf (HQ, call centers, etc) 6.5 million square feet National portfolio Real Estate located in all 50 states + Australia Annual Occupancy Costs Rent Depreciation Operating Expenses Real Estate Organization Total $33,800,000 $26,000,000 $64,900,000 $26,000,000 $150,700,000

5 Aligning the Workplace to the Business Key Business Drivers 1. Customer Value Proposition 2. Destination Era 3. Employee Value Proposition

6 Aligning the Workplace to the Business 1. EWS started as Growth Without Growth 2. Invisible workplace 3. Not a C-level mandate 4. Build the road & create map as we go

7 Progressive Process HR Flexible Work Arrangements (FWA) Early adopters share experiences Continual rollout and refinement of EWS Real Estate begins laying foundation Real Estate Pilot; furniture standards EWS Marketing Plan & Communications Template

8 Progressive Process Data Driven Design

9 Progressive Process Data Driven Design

10 Progressive Process Data Driven Design

11 Progressive Process Data Driven Design Private Offices Headcount Current HC Seats Area/Seat Sharing Ratio Assigned - Dedicated Private Office :1 Unassigned - Shared Office :1 Assigned Workstation :1 SubTotal 21 8 Workstations Headcount Current HC Seats Area/Seat Sharing Ratio Assigned - Dedicated Workstation :1 Unassigned - Shared Workstation :1 Unassigned - Project Resources Bench :1 SubTotal

12 Progressive Process Data Driven Design SUMMARY FOR DESIGNER BY SPACE TYPE: SPACE CALC Dedicated Private Office 0 Shared Private Office/Large Enclave 17 Small Enclave 7 Dedicated Workstation 0 Unassigned Workstation 64 Bench Seats 94 Collaborative Conference Room* 10 Open Collaborative* 5 Total Production Seats 182 * Not included in total production seat count

13 Progressive Process Communications

14 Progressive Process - Communications

15 Before

16 After

17 Impact to the Business

18 EWS 3-Month Survey Results 92% would like to stay with the new configuration 92% said right amount of communication was given about the project 86% don t have major concerns about germs 89% of people feel they have enough storage 88% felt their use of conference rooms has decreased or stayed the same 95% feel that this space supports Progressive s culture better than traditional space

19 Metrics Progressive Real Estate - trailing 12 mos Sept 2010 March 2016 $190 million $151 million 8.3 million sf 6.5 million sf EWS Average occupancy is 99% compared to 72% for traditional space EWS Average utilization is 58% compared to 40% for traditional space 2,000 employees currently working in EWS environment (7%) Additional 350 employees to convert to EWS space in 2016 Business groups continuing to come to Real Estate and asking for EWS

20 Measures of Success Portfolio Efficiency Portfolio Flexibility Business Agility Productivity Satisfaction smaller footprint higher density 8.3 million 6.5 million sf (22% reduction) increase capacity not RE 2 levers: mobility and ratios same space can serve more people decision making speed technology enabled dynamic teamwork distributed collaboration group huddle up reduction of conference room usage real-time communication in some groups, this can be measurable energetic environment variety of employee choice flexible work arrangements 92% don t want to go back to traditional space

21 What s Next? Continue trend lines with portfolio (down), costs (down or flat), and headcount (up) We call it Emerging Workplace Strategy for a reason Refining processes What is the right workspace for the future?

22 EWS Challenges What is the right level of efficiency? Culture Grass roots effort

23 Key Learnings Be true to who you are Dedicated resources takes time and money Partnerships with IT and HR Other groups can help, too Can be grass roots effort, but you have to have support Need key leaders to try it

24 Questions?