Workplace Redesign: Adapting Your Environment to Improve Productivity and Innovation

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1 Workplace Redesign: Adapting Your Environment to Improve Productivity and Innovation Tamara Samoylova Senior Manager Deloitte LLP Eric Openshaw Principal Deloitte Consulting LLP 1

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3 Appeared on Fortune s 2013 Best Companies to Work For list for the past five years Has increased sales year over year since 1999 Routinely recognized for excellent customer service Acquired by Amazon in 2009; managed independently to preserve the unique Zappos culture Sources: Robert Levering and Milton Moskowitz, 100 Best Companies to Work For, CNNMoney, January 2013, accessed March 7, 2013, and Hoover s Company Profile 3

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5 Q: What is the similarity between these examples? A: These companies designed their work environments to accelerate learning and performance improvement 5

6 Today s firms feel mounting pressures Consumers and workers demand more value In the face of limitless options and low switching costs, brandagnostic consumers demand more value at less cost Companies are under mounting performance pressure because consumers and workers are capturing the value companies create Creative workers are increasingly valued and command higher cash compensation 6

7 Firm performance has declined Return on assets (ROA) for public firms in the U.S. has fallen 75 percent ROA for the U.S. economy ( ) 6% 5% 4% 4.1% 3% 2% 1% 0.9% 0% Economy ROA Linear (Economy ROA) 7

8 The value of traditional training is limited On-the-job experiences drive learning and performance improvement 1. Pre-developed content quickly becomes obsolete 2. Training programs neglect unique context and settings 3. Standardized training is scheduled, not triggered by workers needs 4. Lag time impacts knowledge retention 5. Training addresses standard processes, not exceptions 6. Training programs are the first to be cut in downturns 8

9 We believe the most effective performance improvement occurs as a result of on-the-job experiences What are the design principles for on-the-job work environments that accelerate talent development and performance improvement? 9

10 Work environments include physical, virtual, and management systems Management Systems Virtual Physical Organization Ecosystem 10

11 Design principles center around three goals Goals apply to all from management to front line 1 Define 2 Strengthen 3 high-impact high-impact challenges connections Amplify impact Help workers and teams focus on areas of highest business impact, learning, and sustainable improvement Enable workers to connect with people who matter, both inside and outside the organization Augment worker impact with the right infrastructure 11

12 Nine design principles emerge from goals Design principles supplement and reinforce each other Define high-impact challenges Strengthen high-impact connections Amplify impact Meaningful challenges and impact Challenge-specific teaming Adaptable space Rapid experimentation Relevant connections Smart capture and share Real-time feedback and reflection Chance encounters Mutual ownership 12

13 Focus on metrics that matter Measure impact on teams and the ecosystem Financial metrics Ecosystem Operating metrics Front-line metrics Ecosystem Organization 13

14 Start small and scale up Identify metrics, desired behaviors, and experiments Select focus area Scale experiments Crowdsource hypotheses 14

15 Immediate next steps for CFOs Identify underperforming financial metrics Understand underlying operating metrics and work environments with the most impact on those metrics Find passionate leaders and engage them as champions for change Use the design principles to experiment and test solutions 15

16 This publication contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this publication, rendering business, financial, investment, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.