Office Metrics. How the Big Guys Determine How Much Space to Take. October 10, 2013
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1 Office Metrics How the Big Guys Determine How Much Space to Take October 10, 2013
2 TOP GLOBAL CEO CHALLENGES FOR 2013 Human Capital Operational Excellence Innovation Customer Relations Global Political / Economic Risk Global Expansion Corporate Brand and Reputation Sustainability
3 MEASURING PRODUCTIVITY A Function Of Outputs / Costs ENHANCE OUTPUTS CRE Can Enhance Productive Output Through Influencing Factors Access to talent Access to customers Time savings Increased collaboration Enhanced individual workflow Enhanced employee engagement Reinforced organizational culture and identity Community presence and image IMPROVE EFFICIENCY / REDUCE COSTS CRE Can Directly Enable Productivity By Reducing Cost & Improving Efficiency Asset utilization Accurate demand forecasting Move-add-change processes Facility management Energy consumption Leasing and transaction processes Project management processes (e.g. relocation, refit)
4 Workplace Transformation How Much Office Space do we Need?
5 BUSINESS GOALS LINK TO WORKPLACE STRATEGY Business Goals Ensures workplace strategy aligns with all aspects of the business, present & future Establishes a shared vision and direction for a project Determines cultural workforce changes Sets expectations Gains alignment and consensus on a common direction Connects the shared vision to measurement criteria Engages early adopters to begin the process of change Financial People Process Customer
6 BUSINESS GOALS LINK TO WORKPLACE STRATEGY Tactics Strategies Goals Customer Provide a Consistent Message to the Market All Spatial Queues Contribute to a Consistent Message Improve Way Finding & Signage Express the Brand Throughout Space Enhance Customer Experience Brand Attributes Leveraged in Physical Terms Front-of-House Experience Reassessed for Impact Design Lobby & Public Areas to Inspire Collaboration, Break-Out & Work Areas for Customers Common Goals Brand Environmental Consciousness Customer Experience Public Outreach Process Financial People Customer
7 BUSINESS GOALS LINK TO WORKPLACE STRATEGY Tactics Strategies Goals Common Goals Health & Wellness Attraction & Retention Mobile Work Culture / Community Increase Amenities & Environmental Controls Maximize Staff Health & Wellness Increase Attraction & Retention Provide a Variety of Collaboration & Personal Workspaces Support Mobility & Flexible Working People Enable a Spirited Community Financial Process Increase Casual Collaboration Spaces & Plan Hotelling Workspaces Zone Spaces to Create Neighborhoods People Customer Provide Resource/Meeting Areas to Increase Team Cohesiveness
8 BUSINESS GOALS LINK TO WORKPLACE STRATEGY Common Goals Growth Churn Cost/Sq. Ft. per Person Operating Expenses Minimize Kit-of-Parts Components Decrease Assigned Work Areas Reduce SqFt Person Standardize Space When Possible Reduce R/E Costs Per Person Financial People Process Customer Enroll Staff in Distributed Work Profiles When Possible Plan for Growth Without Growth Support Growth Containment Reduce Churn Financial Tactics Strategies Goals
9 BUSINESS GOALS LINK TO WORKPLACE STRATEGY Tactics Provide Virtual Collaboration Tools in Meeting Spaces Financial Process Strategies Leverage Technology to Increase Collaboration Re-Align Departmental Adjacencies People Customer Goals Support Knowledge Transfer Process Enhance Team Effectiveness Improve Team Communication & Collaboration Maximize Functionality & Ease of Use Match Staff Work Style with Work Spaces Create a Menu of Spaces to Support All Work Types Common Goals Collaboration/Communication Functionality Relationships/Adjacencies Leveraging Technology
10 EVOLUTION OF THE WORKPLACE Executive suites + staff pools Open office Hierarchical office assignment Management no longer confined to suites Functional planning Steel furniture Modular walls creation of the cube farm The open vs. closed debate heats-up Dilbertville proliferates Technology & networks Ergonomics Less Hierarchy Flexible components Hoteling Dot-com garage 2010 & Beyond Recruit/retain focus Collaborate to innovate Mobility/distributed work Visibility/transparency Sustainable
11 NEW RESPONSE TO OLD ISSUES Traditional Approach Occupiers of space costs the organization money people New Workplace Approach Who/what/where/when/how makes money for the organization Efficient usually based on hierarchy & tenure. Often one-size-fits-all standards Effective focus on function & nature of work. Customization Look good, presentable aesthetics Advance the company brand, engage & create energy/buzz Number of drops, bandwidth, quality of service technology Support mobility. Work anywhere / anytime As a way to reduce operating costs sustainability As a way to increase health & wellness Maximize square footage cost Value proposition. Leverage time/use factor Business unit issue performance Real estate can have a positive affect
12 EVOLUTION HAS FORCED US TO RE-FOCUS on those elements that affect choice and variety. Workplace strategies will continue to deliver solutions that provide essential support spaces, tools & amenities. Mobility & Presence People centric workplaces will allow employees to work anywhere anytime. Needs & Wants Collaboration & Work Mode A move from Me spaces to We spaces, giving employees a variety of workspace options suited to the way they collaborate, work, and socialize.
13 WHAT ARE OTHERS DOING? PROGRAM AGE ADHOC EXPERIMENTAL SELECTIVELY DEPLOYED SCALE OF ALTERNATIVE WORK STRATEGY FORMALIZED INSTITUTIONALIZED Concept credit: IFMA
14 DEFINING MOBILITY & PRESENCE It is not just about working from home, it s distributing work across a number of internal & external locations. It is dynamic working. Fixed Flexible Remote Mobility: External Fixed Flexible Transient Mobility: Internal Assigned Individual Workspace or Collaboration Spaces or Support/Resource Areas Collaboration Spaces or Unassigned Workspace or Support/Resource Areas or Other Floors/Buildings Collaboration Spaces or Support/Resource Areas or Other Floors/Buildings or Unassigned Workspace
15 DEFINING MOBILITY & PRESENCE Example Definitions
16 WHY IS MOBILE WORK POSSIBLE? Because advances in technology has enabled it. Where have all the people gone? image And because people are not at their desks as much as you would think and work function is typically misaligned with space allocation.
17 HOW DO WE GET THERE? Understand how staff work and develop a strategy that provides the tools and resources that allow individuals and the organization to succeed. People to Profile to Project Occupants Diagnostics Work Profiles Project Kit-of-Parts Final Layout Headcount with a multitude of job titles Occupant characteristics: Work activities Presence Interaction Occupants grouped into similar work profiles Mobile Networker Space allocated to match requirements of work profiles Space components x Allocation ratios Zoning, neighborhood development, circulation, kit-of-parts, furniture Field Worker Site Networker Site Resident
18 The Deloitte Story
19 BUSINESS DRIVERS IMPERATIVE AND OPPORTUNITY Deloitte s Next Generation Workplace (NGW) Strategy is a dynamic, fresh, and increasingly collaborative space that strengthens our culture and brand. The six developments below are driving Deloitte s workplace strategy: The environment Sustainable design & reducing unused workspace Expectations Younger generations & mobile teams work differently today Mobile work Both outside & inside the office Economy Reduction of unused workspace Technology Talent is untethered, but interconnected Competition
20 A TRULY VALUABLE GROUND UP APPROACH Given these changes, we are delivering a fundamentally different workplace strategy to provide the greatest impact for the people of Deloitte, today and for the future. To deliver an innovative, flexible workspace environment To realize qualitative value To size our workspace to reflect Deloitte s true usage patterns, realizing significant savings
21 INNOVATIVE AND FLEXIBLE WORKSPACE Innovative workspace lets us leverage our very best asset Deloitte professionals by giving them a motivating and highly effective space within which to deliver. This space is forcing us to collide and sit next to people. In so doing, we re reaching out to people we wouldn t ordinarily reach out to. - New York Times, In Defense of Collisions in the Office, March 6, 2013
22 DELIVERING QUANTITATIVE VALUE Workspace is a major touch point representing the Deloitte brand where we often make our first impression with our clients, our people and recruits. Deloitte Value Recruiting success Brand recognition Supports collaboration; building culture and community It has been almost two years since the Detroit office relocated to the NGW environment at the top of 200 tower of the Renaissance Center. NGW has transformed our culture and has been the catalyst for a more collaborative environment. Our team, our clients, our recruits and other guests have uniformly agreed that Deloitte is leading from the front with NGW. Mark Davidoff, Michigan Managing Partner After a tour of the Detroit office, the recruiter asked recruits what they thought: I want to work here! AERS Senior Consultant
23 SIZING THE WORKSPACE WITH INCREASING MOBILITY 30%* of national headcount access their Deloitte offices on average daily; as a consistent trend toward lower space utilization. When, where and how work gets done have fundamentally changed. Security badge and observation data inform space sharing ratios for Deloitte, to reduce unused workspace. Changing the behavior with protocols, training, tools and a service mindset are necessary to deliver a successful model. *Q2FY13 national security badge study reporting on utilization for 110 offices
24 DELOITTE S FINDINGS Successes Gen Y very positive feedback Increased collaboration, strengthening culture and community A+ from recruiting feedback Increased technology tools Consistent brand image Environmentally responsible Critical for Success Get the data and tell the story Leadership support with champions at the project level who take oath to lead their team through change Change management Aha! Moments Protocols and tools needed to change behavior Surveys are helpful, but focus groups and bright spot stories are critical Ability for impacted groups to experience a live example significantly reduces resistance Significant cost savings Increased leadership champions
25 THE POWER OF Office Metrics How the Big Guys Determine How Much Space to Take Shaping the Future of Commercial Real Estate Presented by: Amber Strang Executive Managing Director Tenant Advisory Services TRANSWESTERN Beth Forstneger CPA, CCIM, LEED AP Director, Global Business Consulting CUSHMAN & WAKEFIELD Moderator Thursday Sessions sponsored by Sandra Parét AIA, IIDA, LEED AP Director of Strategic Accounts HOK Panelist Katherine Loscalzo Workplace Strategy Leader DELOITTE Panelist 11/15/2013
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