Performance measurement of workplace change

Transcription

1 Performance measurement of workplace change n two dfferent cultural contexts Chawat Rratanaphong

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3 Performance measurement of workplace change n two dfferent cultural contexts Chawat Rratanaphong Faculty of Archtecture and the Bult Envronment, Real Estate and Housng Department

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5 Performance measurement of workplace change n two dfferent cultural contexts Proefschrft ter verkrjgng van de graad van doctor aan de Technsche Unverstet Delft, op gezag van de Rector Magnfcus prof. r. K.C.A.M. Luyben, voorztter van het College voor Promotes, n het openbaar te verdedgen op woensdag 22 januar :30 uur door Chawat RIRATANAPHONG Master of Scence n Buldng Scences, Rensselaer Polytechnc Insttute, USA geboren te Surn, Thaland

6 Dt proefschrft s goedgekeurd door de promotor en copromotor: Prof. r. H. de Jonge Dr. r. D.J.M. van der Voordt Samenstellng promotecommsse: Rector Magnfcus, voorztter Prof. r. H. de Jonge, Technsche Unverstet Delft, promotor Dr. r. D.J.M. van der Voordt, Technsche Unverstet Delft, copromotor Prof. dr. P. Vnk, Technsche Unverstet Delft Prof. dr. P. A. Jensen, Techncal Unversty of Denmark Prof. dr. A. H. van Marrewjk, Vrje Unverstet Amsterdam Dr. M.P. Mobach, Wagenngen Unversty Prof. dr. r. J.W.F. Wamelnk, Technsche Unverstet Delft, reserveld abe.tudelft.nl Desgn: Srene Ontwerpers, Rotterdam Cover photo: Herman H. van Doorn Photos between chapters: Johnson Controls Thaland, Roche Dagnostcs Thaland ISBN ISSN Chawat Rratanaphong

7 Contents (concse) 1 Introducton 21 PART 1 Theoretcal framework 2 Performance measurement 39 3 Workplace change: drvng forces, types of changes and the mpact on organsatons and employees 81 4 Organsatonal and natonal culture Comparson between Tha and Dutch cultural settngs 125 PART 2 Emprcal research 6 Case 1: Dhanarak Asset Development, Bangkok,Thaland Case 2: Phlps, Bangkok, Thaland Case 3: Waterschap Rverenland, Tel, The Netherlands Cross-case analyss: fndngs and reflectons 225 PART 3 Conclusons & recommendatons 10 Conclusons and recommendatons Contents (concse)

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9 Preface Ths research project has taken fve years to complete, and the journey began wth an ambtous goal. However, the road was not an easy road to travel. The tremendous tasks of studyng and revsng my research could not have been done wthout the support of all those nvolved. I would frst lke to begn by thankng my supervsory team. I would lke to thank my supervsor, Professor Hans de Jonge for acceptng me as hs PhD canddate, for the support and gudance he has offered me along the way and for never gvng up on me when I sometmes struggled. It was a prvlege to have you as my supervsor. I would lke to thank my daly supervsor, Theo van der Voordt, for the enormous support he gave me and for not only havng encouraged me academcally, but also for helpng me fnd my way through all the offcal procedures so that I could lve and work n The Netherlands. Thank you for creatng the opportunty for me to conduct a research project here at TU Delft. I am grateful for your support. I am also thankful to Per Anker Jensen who has gven me several opportuntes to partcpate n varous academc actvtes durng the past few years. My acknowledgements go to my PhD defence commsson members, whose detaled and constructve comments proved to be very helpful for mprovng ths book. I would also lke to thank John Hnks for hs support. Durng the undertakng of ths research project, many people have supported me. I would lke to thank my colleagues: Alexandra, Erwn, Esra, Flava, Hlde, Leentje, Phlp, Tom, Peter and all of the other colleagues n our group for ther support and feedback. A specal thank you goes to Monque, who lfted my sprts when I was gong through a rough perod. I would lke to thank Wm Pullen, Irs de Been, Maron Bejer, Sandra Bruna and colleagues at the Center for People and Buldngs who have provded a substantal amount of data for my case study. I would lke to thank Erc Kundersma for hs wllngness to partcpate n my research. I thank for the feedback from Juraan van Meel, John Suyker, Brenda Groen and Jacke de Vres. I would also lke to thank Véro Crckx and Mchelle Mellon for ther assstance n the edtng process. Naturally, there were also my other colleagues, frends and famly n Thaland who I would lke to thank. I would lke to thank Kampon Ruethavanch and Pattaree Jantarakongkul for allowng me to conduct research n ther organsatons. I would lke to express my grattude to Professor Vmolsddh Horayangkura who gave me the opportunty to pursue my academc career at the Faculty of Archtecture and Plannng at Thammasat Unversty n Thaland. I would lke to thank Ann Tpsuda for the support she offered wth the statstcal analyss and Pak Damrongsak, Kob Kongkoon, Sukulpat and the team for takng on the huge load of admnstratve and teachng tasks at our real estate development group. I would also lke to thank Tanapon Panthasen for hs support. I thank for the support of photos between chapters from Ek Buranakul. 7 Preface

10 Fnally, there are very mportant people n my lfe who have also accompaned me on ths long journey. They are my parents, Prawt and Laddawan, and my brothers, Opas and Narong, who have supported me durng the ups and downs. The most mportant person I would lke to thank, however, s my wfe, Jttapat, who always beleves n me and who helps by takng care of our beautful baby, Pm Jnnpa. I would lke to express my great love and deep apprecaton to you for all that you have done. 8 Performance measurement of workplace change

11 Contents (extensve) 1 Introducton Performance measurement Workplace change Cultural context Research objectves and research questons Research methodology Research approach Research perspectve Research strategy Research methods Outlne of the thess Conceptual model 35 PART 1 Theoretcal framework 2 Performance measurement Introducton Purpose of performance measurement Trends n performance measurement 41 9 Contents (extensve)

12 2.4 Performance measurement frameworks and crtera Performance measurement n the context of CREM and FM The added value of corporate real estate management Comparson of dfferent studes concernng the added value of real estate CREM and FM related performance measures, ndcators and KPIs Corporate real estate performance measures from sx perspectves The proposed lst of performance measures accordng to the lterature Conceptual model Conclusons 80 3 Workplace change: drvng forces, types of changes and the mpact on organsatons and employees Introducton Drvng forces Workplace typology Current trends n workplace desgn and management Impact of workplace change on employees Employee satsfacton Perceved productvty support Prortsed aspects Conceptual model Conclusons Performance measurement of workplace change

13 4 Organsatonal and natonal culture Introducton Organsatonal culture The competng values framework Four major culture types Sx content dmensons of organsatonal culture The Organsatonal Culture Assessment Instrument (OCAI) Natonal culture Fve dmensons of natonal culture The Values Survey Module (VSM) Conceptual model Conclusons Comparson between Tha and Dutch cultural settngs Introducton Tha hstorcal context Tha natonal characterstcs The fve dmensons of Tha culture Dutch hstorcal context Dutch natonal characterstcs The fve dmensons of Dutch culture Comparson between Tha and Dutch cultures on the fve dmensons Conclusons Contents (extensve)

14 PART 2 Emprcal research 6 Case 1: Dhanarak Asset Development, Bangkok,Thaland Introducton Research methods Case descrpton Workplace change Performance measurement Employees responses to the work envronment Employee satsfacton Perceved productvty support Prortsed aspects Cultural context Organsatonal culture Natonal culture Reflectons Performance measurement Employees responses to the work envronment Cultural context Conclusons Case 2: Phlps, Bangkok, Thaland Introducton Research methods Performance measurement of workplace change

15 7.3 Case descrpton Workplace change Performance measurement Employees responses to the work envronment: assessment before the change Employee satsfacton Perceved productvty support Prortsed aspects Employees responses to the work envronment: assessment after the change Employee satsfacton Perceved productvty support Prortsed aspects Comparsons of employees responses to the work envronment before and after the change Cultural context Organsatonal culture Natonal culture Reflectons Performance measurement Employees responses to the work envronment Cultural context Conclusons Case 3: Waterschap Rverenland, Tel, The Netherlands Introducton Research methods Case descrpton Contents (extensve)

16 8.4 Workplace change Performance measurement Employees responses to the work envronment Employee satsfacton Perceved productvty support Prortsed aspects Most postve and negatve aspects Cultural context Organsatonal culture Natonal culture Reflectons Performance measurement Employees responses to the work envronment Cultural context Conclusons Cross-case analyss: fndngs and reflectons Introducton Performance measurement n the three cases Comparson between performance measurement n the cases and n the lterature Applcaton of Snk and Tuttle s seven performance crtera Applcaton of the Balanced Scorecard Applcaton of Bradley s sx categores Performance measures n connecton to dfferent stakeholders and dfferent levels Value dmensons Employees responses to the work envronment Employee satsfacton Perceved productvty support Prortsed aspects Performance measurement of workplace change

17 9.5 Cultural context Organsatonal culture Natonal culture 263 PART 3 Conclusons & recommendatons 10 Conclusons and recommendatons Introducton Conclusons Answerng the research questons based on the three cases Recommendatons Step-by-step plan to select and prortse CRE performance measures and KPIs Methodologcal reflectons Suggestons for further research 295 References Contents (extensve)

18 Appendces A I Dhanarak Asset Development data 311 A II Phlps Thaland data 315 A III Waterschap Rverenland data 323 A IV Organsaton and workplace characterstcs n three cases 333 A V Performance measures/kpis accordng to the lterature 335 A VI Statstcal analyss 351 A VII WODI Lght Questonnare (CfPB, 2010) 353 A VIII Organzatonal Culture Assessment Instrument (Cameron and Qunn, 2006) 359 Lst of publcatons 363 Summary 367 Samenvattng 371 Currculum Vtae Performance measurement of workplace change

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21 1 Introducton The sayng what gets measured, gets done, was a source of nspraton when choosng ths research topc concernng performance measurement. Several management prncples have been used by senor management to gude organsatons towards mproved performance. These prncples nclude gudelnes for usng a measurement framework to mprove process and qualty management. Due to the fact that several stakeholders nvolved n ths measurement process usually have dfferent perspectves on performance, organsatons wth dfferent context characterstcs requre a clear and understandable conceptual framework and tools for performance measurement. One of the organsaton s resources, real estate, can contrbute to organsatonal performance (Nourse and Roulac, 1993, De Vres et al., 2008, Lndholm, 2008, Den Hejer, 2011, Jensen et al., 2012a). Ths research focuses on performance measurement nvolvng workplace change whch can be appled n order to algn workplaces so that organsatonal objectves can be acheved and a contrbuton can be made to organsatonal performance. 1.1 Performance measurement The changng busness envronment mpacts the producton of goods or servces. For nstance, advanced technologes enable companes n Inda and Chna to become ntegral parts of complex global supply chans (Fredman, 2005). The organsatons strve to do busness n qute a new way to ncrease the performance of avalable resources n order to stay n busness. Compettve pressures force the organsatons to focus on cost reducton and effcency. However, drvers to mprove socal nteracton and an employee s contrbuton to an organsaton lead to the concern of other performance crtera such as effectveness, flexblty and creatvty. Tradtonal measurement tools that focus on cost mnmsaton are not suffcent n the changng context of the busness envronment (Varcoe, 1996, Kaplan and Norton, 2001, Bradley, 2002). There s an ncreasng need for performance measurement tools that not only focus on the effcency of the day-to-day operaton, but also on the strategc effectveness of busness resources that algn wth the msson and vson of the company (Nourse and Roulac, 1993, Tangen, 2003, De Vres et al., 2008, Jordan et al., 2009, Den Hejer, 2011, Rratanaphong et al., 2012). The ntroducton of new performance measures such as shareholder value, economc proft, customer satsfacton, nternal operaton performance, ntellectual captal and ntangble assets (Neely and Bourne, 2000) reflect a more holstc and ntegrated approach, takng the benefts nto account as well. Due to a rapdly changng context, organsatons 21 Introducton

22 are lookng for performance measurement approaches that not only cover all of the aspects regardng the organsaton, but whch can also be appled to varous stuatons. It s essental to use performance measurement methods whch have an ntegrated perspectve of performance. 1.2 Workplace change Performance of an organsaton can be mproved by montorng and controllng the use of an organsaton s resources whch ncludes both the personnel and ther work envronment. It has been realsed that one of the major objectves of workplace change s cost reducton (Van Meel et al., 2010). However, knowledge work and human captal drve the focus to other components such as IT, human resources and the nterdependence of facltes. Today s modern offce s more lkely to depend on these human relatons and the qualty of the nteractons undertaken n the offce envronment (Haynes and Prce, 2004). In addton, the changng nature of work has resulted n an ncreasng demand for workplaces that respond to the new types of employees needs (Duffy, 1997). The new workplace s not only concerned wth usng space effcently, but t also nvolves employee satsfacton and productvty. Research nto organsatonal behavour suggests that physcal settngs can nfluence employee satsfacton, productvty, and motvaton (Btner, 1992). Increasng workplace understandng s bult on the recognton that space has dfferent characterstcs: t performs dfferent functons and t allows people to work n dfferent ways. The output of the modern offce relates not only to the physcal characterstcs, but also to socal networks and nteractons undertaken n the offce envronment. In addton to cost reducton, employee satsfacton and perceved productvty support of the work envronment are areas that could contrbute to ncreased performance and serve as drvers to change the workplace. Performance from an employee s perspectve, wth regard to the workplace change, s the second focus of ths research. 1.3 Cultural context As a person who lves and works n Thaland, my nterest s n the development of performance measurement approaches that can be appled to workplace stuatons n my home country. Whle workng on my PhD dssertaton at the Delft Unversty of Technology, I spent most of the past four years n The Netherlands. The percepton of workplace change at the Faculty of Archtecture n Delft s qute dfferent from what 22 Performance measurement of workplace change

23 I had experenced before. Ths brought a thrd ssue nto my search for applcable performance measurement methods and conceptual frameworks n connecton to workplace change; are there cultural dfferences between Thaland and The Netherlands that play a vtal role when apprasng workplace envronments? Ths cultural ssue s used as a contextual background that could contrbute to obtanng a better understandng of the performance measurement of workplace change wthn dfferent contexts. 1.4 Research objectves and research questons The am of ths research s to provde a conceptual framework that vsualses the mpact of workplace change on employees responses to the new work envronment and to present gudelnes on performance measurement of workplace change n dfferent contexts. The followng research questons focus on these man research themes: performance measurement and workplace change. 1 Performance measurement How can the performance of workplace change be measured accordng to the lterature? How s performance of workplace change beng measured n practce? What recommendatons can be gven to mprove performance measurement of workplace change? 2 Workplace change What are the man drvers and objectves of workplace change? Whch stakeholders are nvolved n the mplementaton process and what are ther roles? What s the mpact of organsatonal structure, staff characterstcs and work processes on workplace change? How satsfed or dssatsfed are employees wth the varous aspects of ther work envronment and the perceved support of productvty, and whch aspects do they perceve as beng the most mportant? What recommendatons can be gven to mprove employee satsfacton and productvty? In addton, a background ssue wll be explored: whch smlartes and dssmlartes can be found n performance measurement and apprasal of workplace change n two dfferent cultural contexts,.e. Thaland and The Netherlands? 23 Introducton

24 1.5 Research methodology Research approach Ths thess nvolves two man research themes, performance measurement and workplace change, n connecton to a contextual background of organsatonal and natonal culture. Each theme and background data were ncorporated n developng an overall conceptual model and three related conceptual models: 1) on performance measurement, 2) on employees responses to workplace change and 3) on cultural context. These conceptual models have been used to formulate research questons, conduct emprcal studes and analyse data. Table 1 descrbes the research matrx whch has been classfed under three separate headngs Part I Theoretcal framework Part II Emprcal research Part III Conclusons & recommendatons Theme 1 Performance measurement Performance measurement theores and frameworks Performance measurement n the context of FM 1 and CREM 2 Added value of CREM Performance measures and KPIs Conceptual model Performance measurement system Performance crtera Performance measures and KPIs Theme 2 Employees responses to workplace change Drvng forces Workplace typology Current trends n workplace desgn and management Impact of workplace change on employees: 1. employee satsfacton 2. perceved productvty support 3. prortsed aspects Conceptual model Fndngs from WODI questonnare: 3 1. Employee satsfacton 2. Perceved productvty support 3. Prortsed aspects Contextual background Organsatonal and natonal culture Organsatonal culture theores Four major culture types Competng values framework Natonal culture theores Fve dmensons of natonal culture Comparson between Tha and Dutch cultural settngs Conceptual model Fndngs from OCAI questonnare: 4 - Organsatonal culture Fndngs from VSM94 questonnare: 5 - Natonal culture Connecton between conceptual models and fndngs from case studes Conclusons and recommendatons to mprove performance measurement and workplace change processes Table 1 Research matrx: two man research themes and a contextual background 24 Performance measurement of workplace change

25 1.5.2 Research perspectve The naturalstc approach (Lncoln and Guba, 1985) was chosen as a system of nqury n ths research. The ontologcal premse of naturalstc research s that there are multple, socally-constructed realtes. Naturalstc research s ntended to understand phenomena n ther naturally occurrng states. It s a dscovery-orented approach n the natural envronment. The naturalstc nqury s also known as the nterpretve paradgm. In ths perspectve even though a study may have been conducted objectvely, t s stll value bound. The researcher s background knowledge wll nfluence the socal constructon of realty (Mles and Huberman, 1994, Groat and Wang, 2002). Ths also apples to the analyses made concernng several parts of ths research, ncludng the stakeholder percepton of workplace change and the mpact of culture that mght be nfluenced by the researcher s background knowledge. In addton, part of the research has been conducted by usng questonnares whch enable a quanttatve data analyss to be conducted Research strategy In ths research, two methods of scentfc reasonng are appled: nductve and deductve reasonng. Inductve reasonng focuses on acqurng a general nsght through the generalsaton of havng observed specfc facts. The nductve process serves to relate the specfc topc to a broader context and seeks clarfcaton of multple crtcal factors affectng the phenomenon (Groat and Wang, 2002). Deductve reasonng focuses on extractng statements from general theores n order to test these statements on the bass of facts. The deductve process of nqury seeks cause-andeffect explanatons. In ths study, the researcher uses deductve reasonng to derve 1 Facltes Management (FM) 2 Corporate Real Estate Management (CREM) 3 The Work Envronment Dagnoss Instrument (WODI), a tool for collectng data on employees responses to the work envronment (employee satsfacton, perceved productvty support and prortsed aspects) (Center for People and Buldngs, 2010). 4 The Organsatonal Culture Assessment Instrument (OCAI) a tool for assessng organsatonal culture (Cameron and Qunn, 2006) 5 The Values Survey Module 94 (VSM94) a tool for assessng natonal culture (Hofstede, 1997) 25 Introducton

26 specfc research questons from the larger context of theory and nductve reasonng by explorng nsghts based on three dfferent case studes. Ths cyclcal process of nductve and deductve reasonng allows the theoretcal frameworks to be explored and tested n the emprcal research Research methods Ths secton descrbes the appled data collecton methods regardng the two man research topcs (performance measurement and workplace change). Lterature revew Performance measurement Workplace change Organsatonal and natonal culture Case studes Prvate organsaton THAILAND: 2 case studes Phlps Multple case study Dhanarak Asset Development Publc organsaton NETHERLANDS: 1 case study Waterschap Rverenland Performance Measurement: performance measurement frameworks and crtera, performance measures/kpis Employees responses to the work envronment: employee satsfacton, perceved productvty support, prortsed aspects Context of organsatonal and natonal culture Cross case comparson and feedback to theory Conclusons and recommendatons Fgure 1 Research steps concernng two man research themes and a contextual background 26 Performance measurement of workplace change

27 The research steps as presented n Fgure 1 descrbe the process from lterature revew, multple case studes to conclusons and recommendatons (ndcated by an arrow connectng each step). 1 Lterature study In Part 1 concernng the lterature revews of performance measurement, workplace change and organsatonal and natonal culture are used to explore and lnk the fndngs from exstng studes and to develop conceptual models. An overall theoretcal framework s formulated n ths part as well. 2 Multple case study To answer the research questons wthn real-lfe contexts, a multple case study has been chosen for the research approach. Ths research s a qualtatve and nterpretatve work usng a comparatve analyss of two cases and one reference case n order to understand how organsatons mplement performance measurement, and to fnd out how performance measurement from the lterature can be appled n organsatons wth dfferent contexts. Understandng the performance measurement practces, explorng the secondary nformaton of workplace change and culture, descrbng the mplementaton process of workplace change and analysng the apprasal of change are crucal n ths study. Through case studes, emprcal data helps to explan a contemporary phenomenon. In ths procedure, the nductve approach reasons through movng from a specfc case or collecton of observatons to general law (Taylor et al., 2002). However, the deductve approach s also appled n order to seek cause-and-effect explanatons regardng a factual bass. Three case studes of organsatons stuated n dfferent countres, two n Thaland and one n The Netherlands, have been conducted to explore performance measurement of workplace change n connecton to cultural ssues as a contextual background. 2a. Document analyss The emprcal study ncludes a collecton and analyss made of reports on the case study organsatons such as the type of busness, organsatonal objectves, organsatonal structure and the work process. Reports concernng performance measurement ndcate an organsaton s performance measurement frameworks, crtera and performance measures/kpis. Performance measurement methods n practce have been compared wth suggested measurement methods n lterature. In regard to workplace change, the analyss focuses on: 1) workplace change characterstcs ncludng locaton, buldng grade, archtectural desgn, workplace concept and supportng facltes, 2) mplementaton process such as drvers to change and organsaton of change, and 3) apprasal of change;.e. employee satsfacton, perceved productvty support and prortsed aspects of the work envronment. 27 Introducton

28 2b. Intervews Face-to-face ntervews were appled n the Tha cases. The purpose was to gan qualtatve data concernng the man varables ncludng organsaton, performance measurement and workplace change. In the Dutch case, the nternatonal affars manager was asked several questons. Most fndngs n ths case are based on an analyss made from the reports and documents that were avalable. 2c. Surveys In each case, a seres of questonnares s appled by usng exstng nstruments: The Work Envronment Dagnoss Instrument (WODI), a tool for an ndcatve evaluaton wth a focus on overall employee satsfacton and perceved support of labour productvty through the workng envronment and prortsed aspects (Maarleveld et al., 2009) The Organsatonal Culture Assessment Instrument (OCAI) for assessng organsatonal culture (Cameron and Qunn, 2006) The Values Survey Module 94 (VSM94) for assessng natonal culture (Hofstede, 1997) The questonnares n Englsh were translated nto Tha. The translated verson and the orgnal verson were carefully compared and examned to assure that there were no sgnfcant dfferences between them. The purpose of the three questonnares (WODI, OCAI, VSM94) was to explore the relatonshps between varables, for example, regardng the satsfacton of employees wth ther physcal workng envronment and the actual characterstcs of ther work envronment. The questonnares can be found n Appendces VII and VIII. Due to copyrght restrctons, the VSM94 has not been ncluded n the appendx. Case selecton To mprove our understandng of performance measurement regardng workplace change n dfferent countres, two case studes were chosen n Thaland and one n The Netherlands. To explore these phenomena, cases must have features that they share n common, and they should also dffer n some features as well. Four crtera have been added to the case selecton 1 Workplace change practce. In order to explore the employees responses to the changed envronment, t s mportant to select cases whch mplemented workplace change and n whch the contextual factors of the change process could be examned. 2 Publc and prvate organsaton. Because the type of busness can affect workplace change, the case studes have been chosen from both the publc and prvate sector. 3 Cultural context. The organsatonal and natonal culture of three case studes are explored and used as a contextual background whch has been added to the fndngs from performance measurement and workplace change. 28 Performance measurement of workplace change

29 4 Cooperaton and avalablty of data. To gan nsght nto the case studes, t s necessary that a wllngness to cooperate be dsplayed by the organsatons selected n order to obtan n-depth nformaton. Based on these crtera, two organsatons n Thaland and one organsaton n The Netherlands were selected to serve as case studes: 1 Dhanarak Asset Development (DAD), Thaland 2 Phlps Electroncs Thaland (PTH), Thaland 3 Waterschap Rverenland (WSRL), The Netherlands These three cases are examples of two publc (DAD, WSRL) and one prvate organsaton (PTH), whch were selected based on the workplace change characterstcs as well as the wllngness to partcpate n the research. The DAD case presents a standardsed performance measurement system of a publc organsaton. The PTH, a prvate organsaton, offered the opportunty to conduct the surveys both before and after the change. The extra data obtaned from ex-ante evaluaton has been used n order to compare t wth the fndngs from ex-post evaluaton of the PTH case. The WSRL case provdes nformaton on the Dutch workplace and the responses of employees regardng the work envronment after the change was mplemented. Except for the culture assessment whch was made, the data collecton on employees apprasals had already been carred out earler by the Center for People and Buldngs (CfPB) n The Netherlands (Bruna, 2013). The fndngs from the ex-post evaluaton were used to compare the fndngs from the three case studes wth the CfPB ndcator (Bruna, 2013). Ths ndcator shows the average percentage of satsfed employees on a number of ssues, based on over 96 cases n The Netherlands. Fgure 2 shows the procedure of a cross-case comparson of the three case studes regardng two research themes and a contextual background. 29 Introducton

30 Case studes Thaland Netherlands 2 Themes & a contextual background DAD Phlps TH WSRL Performance measurement Employees responses to work envronment Cultural context Fgure 2 Cross case comparson n two research themes and a contextual background. Table 2 descrbes data collected correspondng to the two research themes (.e. performance measurement, employees responses to workplace change). Performance measurement Employees responses to workplace change Workplace change Implementaton process Apprasal of change Performance crtera Locaton Workplace change objectves Employee satsfacton Performance measurement Buldng grade Perceved productvty frameworks support Performance measures/kpis Archtectural desgn Prortsed aspects Workplace concept Supportng facltes Table 2 Man varables found wthn ths research Summary of data collecton n three cases Table 3 summarses data collected on varous topcs accordng to the man research themes and the contextual background of the three cases. When possble, data on workplace change has been gathered from three stuatons: the workplace before the change, the change process, and the workplace after the change. However, the avalablty of data for each topc s dfferent from case to case and can be descrbed as: 1) fully avalable, 2) suffcently avalable, 3) to some degree avalable, and 4) not avalable. 30 Performance measurement of workplace change

31 Scheme Dhanarak Asset Development Thaland Phlps Thaland Waterschap Rverenland Performance measurement Performance crtera Performance measurement frameworks Performance measures/kpis ± Workplace before change Place before change Locaton Archtectural desgn Workplace concept Supportng facltes Process Daly actvtes ± Apprasal of workplace before change employee satsfacton + + perceved productvty + + prortsed aspects + + most postve and negatve aspects Implementaton process Workplace change objectves Drvers to change Organsaton of change Workplace after change Place after change Locaton Archtectural desgn Workplace concept Supportng facltes Process Daly actvtes Apprasal of workplace after change employee satsfacton perceved productvty prortsed aspects most postve and negatve aspects + + Cultural context Natonal culture Organsatonal culture avalablty of data: + + fully avalable, + suffcently avalable, ± to some degree avalable, not avalable Table 3 Data collected accordng to research themes and a contextual background of three case studes 31 Introducton

32 1.6 Outlne of the thess The thess presents a theoretcal and an emprcal part. The theoretcal part conssts of lterature revews n the feld of performance management, workplace change (.e. drvng forces and mpact on employees), and organsatonal and natonal culture. Relevant theores and concepts connected wth the research problem are presented and dscussed, as well as ther applcablty n answerng the research questons. The synthess of the lterature revew has been used to gude the emprcal feld study.e. to formulate research questons and to develop the research desgn and data-collecton methods. The emprcal part presents three case studes and a cross-case analyss. Ths frst chapter provdes an ntroducton to the dfferent research areas. Ths chapter descrbes the reasons for conductng a research study on performance measurement of workplace change n dfferent contexts,.e. Thaland and The Netherlands. In ths chapter, the research objectves, the research questons, the research methodology and the thess outlne are descrbed. Part one (Chapters 2 to 5) ntroduces the theoretcal foundaton of ths thess that ncludes the defntons of the terms used. The collecton, analyss and reflecton on exstng tools and key performance ndcators from the lterature are presented n Chapter 2. The added value of corporate real estate s dscussed n ths chapter as well, followed by a conceptual model that shows the relatonshps between the varables n connecton wth corporate and real estate performance measurement. Chapter 3 provdes the understandng of drvers and objectves of workplace change and how employees respond to ther changed work envronment. The work envronment dagnoss nstrument (WODI) questonnare that s used for collectng data on employees responses to the work envronment (employee satsfacton, perceved productvty support and prortsed aspects of the work envronment) s presented n ths chapter. Furthermore, a conceptual model that llustrates the mpact of varables on the apprasal of workplace change s descrbed n ths chapter. Chapter 4 and Chapter 5 descrbe the contextual backgrounds of organsatonal and natonal culture that are used as supportng data to the fndngs from performance measurement and workplace change. Chapter 4 descrbes the theory of organsatonal culture and four cultural types together wth an assessment tool, namely the organsatonal culture assessment nstrument (OCAI). Fve cultural dmensons are explaned n the context of natonal culture. The Values Survey Module 1994 (VSM94), an nstrument used for collectng data on fve dmensons of natonal culture, s descrbed n ths chapter followed by a conceptual model that descrbes the lnks between the organsatonal and natonal culture and other varables ncludng performance measurement, employees responses to the work envronment and workplace change. 32 Performance measurement of workplace change

33 Chapter 5 dscusses the Tha and Dutch cultural settngs. Hstorcal contexts and the natonal characterstcs of both cultures provde background data on the smlartes and dfferences found regardng the fve cultural dmensons between these two countres. Part two (Chapters 6 to 9) presents the emprcal studes conducted n Thaland and The Netherlands. Ths part shows the fndngs concernng the varables found n the conceptual models regardng performance measurement and employees responses to the work envronment, n connecton wth a contextual background of organsatonal and natonal culture. The comparson of the fndngs between Tha and Dutch case studes s dscussed n Chapter 9. An analyss of emprcal data s compared wth the exstng theores n order to explan the connectons between the varables and to explore the exstng gaps n our understandng. Part three, Chapter 10 presents the conclusons and recommendatons. Ths chapter provdes the overall conclusons, recommendatons and practcal mplcatons. Fgure 3 explans the structure of the PhD dssertaton. 33 Introducton

34 1. Introducton Background Why s t mportant to research the performance measurement of workplace change n two dfferent cultural contexts,.e. Thaland and The Netherlands? 2.Performance Measurement 3.Workplace Change PART I Theoretcal Framework 4.Organsatonal and Natonal Culture 5.Comparson between Tha and Dutch Cultural Settngs How can the performance of workplace change be measured accordng to the lterature? What are the man drvers and objectves of workplace change? Whch stakeholders are nvolved n the mplementaton process and what are ther roles? What s the mpact of organsatonal structure, staff characterstcs and work processes on workplace change? Background queston: what are the man dfferences between the Tha and Dutch culture? 6. Dhanarak Asset Development 8.Waterschap Rverenland PART II Emprcal research 7.. Phlps Thaland 9. Cross case analyss: fndngs & reflectons How s performance of workplace change beng measured n practce? How satsfed or dssatsfed are employees wth the varous aspects of ther work envronment and the perceved support of productvty, and whch aspects do they perceve as beng the most mportant? Background queston: what nfluences of natonal culture can be explored? PART III Conclusons & recommendatons 10. Conclusons & Recommendatons What recommendatons can be gven to mprove performance measurement of workplace change? What recommendatons can be gven to mprove employee satsfacton and productvty support? What recommendatons can be gven for further research? Fgure 3 Structure of the PhD dssertaton 34 Performance measurement of workplace change

35 1.7 Conceptual model Fgure 4 presents the ntegrated conceptual model that lnks the four man varables: 1) organsaton, 2) workplace change, 3) performance measurement (frameworks, crtera and measures/kpis), and 4) employees responses to the work envronment (employee satsfacton, perceved productvty support, prortsed aspects). The organsaton and workplace change affect workplace performance both objectvely (performance measurement frameworks and crtera, performance measures/kpis) and subjectvely (employees responses to the work envronment). Performance measurement s lnked to the proposed measures n sx categores accordng to the lterature ncludng: 1) stakeholder percepton, 2) fnancal health, 3) organsatonal development, 4) productvty, 5) envronmental responsblty and 6) cost effcency. CONTEXT Organsaton Busness types Objectve Structure Staff characterstcs Work process & work pattern Organsatonal culture Natonal culture PERFORMANCE MEASUREMENT Performance measurement (Objectve) Performance measurement frameworks and crtera Performance measures/kpis PROPOSED MEASURES Stakeholder Percepton Fnancal health Organsatonal development Workplace change Workplace change objectves Locaton Buldng grade Archtectural desgn Workplace concept Supportng facltes Implementaton process Performance measurement (Subjectve) Employee satsfacton Perceved productvty support Prortsed aspects Productvty Envronmental responsblty Cost effcency Fgure 4 Integrated conceptual model The organsatonal context conssts of two man varables: organsaton and workplace change. Organsaton varables nclude types of busness, objectves, structure, staff characterstcs, work processes, and organsatonal and natonal culture. Workplace change varables nclude workplace change objectves, locaton, buldng grade, archtectural desgn, workplace concept, supportng facltes and the mplementaton process. These four groups of varables are nterrelated wth each other, and a change n one or more varables can affect the others. Ths conceptual model s used to explore the relatonshp between varables, both theoretcally and emprcally. 35 Introducton

36 38 Performance measurement of workplace change

37 2 Performance measurement 2.1 Introducton Ths chapter elaborates on the current trends n performance measurement and gves an overvew of performance crtera. It also refers to the Key Performance Indcators (KPIs) used to measure the performance of corporate real estate and buldng-related facltes and servces n connecton to organsatonal performance. The KPIs found n lterature have been classfed accordng to the sx perspectves of performance measures from Bradley (2002), and a dscusson wll follow regardng whether they can be appled n practce. The added value of corporate real estate management wll be dscussed as well. A conceptual model has been ncluded whch dsplays the relatonshps between the varables that are lnked to corporate and real estate performance measurement. The fndngs of ths chapter can be used as nput to ntegrated and well-balanced performance management. 2.2 Purpose of performance measurement Accordng to Zar (1994), the functon of performance measurement s to generate nformaton that wll be useful for solvng a wde varety of problems and whch can be appled to certan stuatons. In ts varous forms, performance measurement represents the yardstcks whch gauge how well people have done and n turn, whch motvate them to acheve even hgher targets (Zar, 1994). Performance measurement provdes the nspraton to acheve superor levels of effectveness and compettveness. It focuses on the means and results (ends) or processes and outcomes, and can be descrbed n terms of practces and metrcs (Zar, 1994). Practces are characterstcs whch descrbe nternal and external busness behavours whch tend to lead to a performance gap. Practces could be related to the processes themselves, organsatonal structures, management systems, human factors, and strategc approaches. Performance measurement can also be descrbed as an mportant ad for makng judgments and decsons. Performance measurement can help managers to answer fve strategcally mportant questons: 1) where have we been? 2) where are we now? 3) where do we want to go? 4) how are we gong to get there? and 5) how wll we know that we got there? (Lebas, 1995). 39 Performance measurement

38 Snclar and Zar (1995) provded a lst of seven dmensons to emphasze the mportance and need for performance measurements. Performance measurement: enhances mprovement can ensure that managers adopt a long-term perspectve makes communcaton more precse helps an organsaton to allocate ts resources to the most attractve mprovements actvtes s central to the operaton of an effectve and effcent plannng, control, or evaluaton system can affect the motvaton of ndvduals and encourage rght organsaton behavour can support management ntatves and manage change Parker (2000) mentoned several smlar and addtonal reasons why companes should use performance measures, n order to: dentfy success dentfy whether they are meetng customer requrements understandng ther processes (to confrm what they know or to reveal what they do not know) dentfy where problems, bottlenecks and waste exsts and where mprovements are necessary ensurng that decsons are based on facts, not supposton, emoton or ntuton show f the mprovements planned, actually happened In connecton to performance measurement, Neely et al. (1995) proposed the defntons of three terms: performance measure: a metrc to quantfy the effcency and/or effectveness of an acton performance measurement: the process of quantfyng the effcency and effectveness of acton performance measurement system: a set of metrcs to quantfy the effcency and effectveness of an acton Brown and Delvn (1997) defne a performance measurement system as a complete set of performance measures and ndcators derved n a consstent manner accordng to a forward set of rules or gudelnes. It s a means to montorng and mantanng organsatonal control,.e. the process of ensurng that an organsaton pursues strateges that lead to the achevement of overall goals and objectves (Nann et al., 1990). Performance measures can be used to force an organsaton to focus on the rght ssues. 40 Performance measurement of workplace change

39 2.3 Trends n performance measurement Organsatonal performance s a broad term that covers both economc and functonal aspects. In regard to the performance of real estate and buldng-related facltes and servces whch are mportant resources to all frms both the techncal and aesthetc aspects are mportant as well. The level of performance a busness attans s a functon of the effcency and effectveness of the actons t undertakes and the resources used to support these actvtes. Hgh-performance operatons that most companes am to accomplsh should be hgh-qualty, fast, dependable, flexble and low cost (Slack et al., 2001). Tangen (2005) descrbed performance as an umbrella term for all concepts that consder the success of a company and ts actvtes. Performance measurement provdes the bass for an organsaton to assess how well t s progressng towards ts predetermned objectves, to dentfy areas of strengths and weaknesses, and to decde on future ntatves, amng to mprove organsatonal performance (Amaratunga and Baldry, 2002). Accordng to the lterature, performance measurement has been developed n two phases (Tangen, 2004, Lavy et al., 2010). In the frst phase, whch contnued untl the 1980s, performance measurement prmarly focused on fnancal crtera. Snce the late 1980s, the second phase revealed that the tradtonal performance measures had severe lmtatons ncludng the fact that t encouraged short-term thnkng, lacked strategc focus and had nsuffcent local optmzaton. The ntroducton of new performance measures such as shareholder value, economc proft, customer satsfacton, nternal operatons performance, ntellectual captal and ntangble assets (Neely and Bourne, 2000) reflected a more holstc and ntegrated approach by takng nto account the benefts as well. Neely et al. (1995, n Anderson and McAdam, 2004) summarsed the man changes from tradtonal performance measurement systems towards modern nnovatve performance measurement systems as outlned n Table 4. Van Ree (2002) came to a smlar concluson n sayng that performance measurement has changed from smply focusng on the effectveness and effcency of an organsaton to establsh a wder set of crtera (Table 5). 41 Performance measurement

40 Tradtonal performance measurement systems Based on cost/effcency Trade-off between performances Proft-orented Short-term orentaton Prevalence of ndvdual measures Prevalence of functonal measures Comparson wth standard Am at evaluatng Innovatve performance measurement systems Value-based Performance compatblty Customer-orented Long-term orentaton Prevalence of team measures Prevalence of transversal measures Improvement montorng Am at evaluatng and nvolvng Table 4 Hstory n development of performance measurement systems (Neely et al., 1995) Tll 1950s 1960s 1970s 1980s 1990s 2000s Effectveness Effectveness Effectveness Effectveness Effectveness Effectveness Effcency Effcency Effcency Effcency Effcency Productvty Productvty Productvty Productvty Flexblty Flexblty Flexblty Creatvty Creatvty Sustanablty Table 5 Performance crtera organsatons should meet (modfed from Van Ree, 2002) The same trend comes to the fore n the felds of (addng value by) FM and CREM (Jensen et al., 2012a). Organsatons try to manage the performance of real estate and real estate-related facltes and servces to support organsatonal performance and to create a postve added value or to avod a negatve nfluence on ther goals. Any actvty undertaken n mprovng the performance of corporate real estate wll affect the organsaton s resources and needs to be assessed n terms of (potental) benefts and costs on the organsatonal level (Den Hejer, 2011). That s why there s a need to dentfy FM and CREM related KPIs that help the organsaton to focus on performance (benefts) n relaton to the resources that are spent on real estate and other facltes (costs). 42 Performance measurement of workplace change

41 2.4 Performance measurement frameworks and crtera Many authors have reflected on general performance measurement and performance crtera,.e. dfferent aspects or areas of performance, and they have tred to lnk performance to concepts such as qualty, effectveness and effcency. A short tour through the key features of the most relevant frameworks regardng measurng organsatonal performance ncludng the performance measurement matrx, performance pyramd, Balanced Score Card, and Strategy mappng - provded a number of crtera that may mprove our understandng of performance measurement. Accordng to Snk and Tuttle (1989), performance of an organsaton s a complex nterrelatonshp between dfferent perspectves of performance crtera. They dentfed seven performance crtera that are nterrelated (Fgure 5): effectveness, defned as degree to whch an organzaton accomplshes what t set out to accomplsh. In practce, effectveness s expressed as a rato of actual output to expected output ef fcency, defned as a rato of resources expected to be consumed to resources actually consumed qualty, the assurance of qualty at fve checkponts: 1) upstream systems, 2) nputs, 3) transformaton value addng process, 4) outputs, 5) downstream systems productvty, relatonshps between outputs and resources consumed qualty of work lfe, feelngs of workforces on key factors n an organsaton such as safety, compensaton, pay, etc. nnovaton, a key element n sustanng and mprovng performance proftablty/budgetablty, representng the relatonshps between revenue and cost 43 Performance measurement

42 3. Qualty Upstream system Input Transformaton process Output Downstream system 1. Effectveness 6. Innovaton 2. Effcency 5. Qualty of worklfe 4. Productvty 7. Proftablty/ Budgetablty Fgure 5 Interrelatonshp between seven performance crtera (Snk and Tuttle, 1989). Keegan et al. (1989) developed a balanced performance measurement matrx that ntegrates four dfferent classes of busness performance: cost and non-cost, nternal and external (Fgure 6). Ths matrx s a smple and flexble framework capable of accommodatng any measure of performance (Neely, 2002). Accordng to Neely et al. (2001) the strength of the performance measurement matrx s that t seeks to ntegrate dfferent classes of busness performance. Non-cost Cost Internal External - Nos. repeat buyers - Nos. customer complants - Market share - Desgn cycle tme - Percent on tme delvery - Nos. new products - Compettve cost poston - Relatve R&D expendture - Desgn cost - Materal cost - Manufacturng cost Fgure 6 Performance measurement matrx (Keegan et al., 1989). 44 Performance measurement of workplace change

43 Judson (1990) developed the so-called performance pyramd. Ths framework has subsequently been mproved by Lynch and Cross (1991) and was adapted later on n Cross and Lynch (1992), (see Fgure 7). The performance pyramd establshes a clear relatonshp between goal settng and measurement, between busness strateges and mplementaton. It also dentfes measurements at the team level; work teams focus on qualty measures, whereas leadershp teams focus on process or strategy (Lynch and Cross, 1991). The strengths of ths framework are such that t dstnctly tes together the herarchcal vew of busness performance measurement wth the busness process vew (Neely and Bourne, 2000). Its objectves and related measures are focusng on vson; busness unt (market, fnancal); busness operatng system (customer satsfacton, flexblty, productvty); department and work centre (qualty, delvery, cycle tme and waste); and operatons. Corporate vson Objectves Measures Market Fnancal Busness unts Customer satsfacton Flexblty Productvty Busness operatng systems Qualty Delvery Cycle tme Waste Departments and workcenters Operatons External effectveness Internal effectveness Fgure 7 The Performance Pyramd (Cross and Lynch, 1992) One of the most well-known performance measurement frameworks s the Balanced Scorecard (BSC) that was developed by Robert Kaplan and Davd Norton n 1992 (see Fgure 8). The basc noton of the BSC s that organsatonal performance ought to be evaluated from more than smply a fnancal perspectve. It helps to translate the strategy nto actons from four perspectves: Fnancal: Tradtonal measures of proftablty, revenue, and sales growth Customer: Customer retenton, customer satsfacton and market research Internal busness processes: Processes to meet or exceed customer expectaton Learnng and growth: How the organsaton and ts people grow and meet new challenges 45 Performance measurement

44 In the Balanced Scorecard (Kaplan and Norton, 1992), the balanced set of four perspectves of performance measures nvolves the four fundamental questons: How do we look to our shareholders (fnancal perspectve)? How do our customers see us (customer perspectve)? What must we excel at (nternal busness processes perspectve)? How can we contnue to mprove and create value (learnng and growth perspectve)? Fnancal perspectve Goals Measures Customer perspectve Goals Measures Internal busness perspectve Goals Measures Innovaton/learnng perspectve Goals Measures Fgure 8 The Balanced Scorecard (Kaplan and Norton, 1992) The strategy map - a model also orgnated by Kaplan and Norton - s another framework used to vsually represent the cause-and-effect logc of an organsaton s strategy n the four BSC perspectves: fnancal, customer, nternal processes and learnng and growth (Kaplan and Norton, 2004), (see Fgure 9). By connectng varous elements wth one another, strategy mappng helps descrbe and communcate the strategy used among executves and wth ther employees. 46 Performance measurement of workplace change

45 Strategy Map Productvty strategy Long-Term Shareholder Value Growth Strategy Fnancal Perspectve Improve Cost Structure Increase Asset Utlzaton Expand Revenue Opportuntes Enhance Customer Value Customer Perspectve Customer Value Proposton Prce Qualty Avalablty Selecton Functonalty Servce Partnershp Brand Product / Servce Attrbutes Relatonshp Image Internal Perspectve Operatons Management Processes -Supply -Producton -Dstrbuton -Rsk Management Customer Management Processes -Selecton -Acquston -Retenton -Growth Innovaton Processes - Opportunty ID - R & D Portfolo -Desgn / Develop - Launch Regulatory and Socal Processes -Envronment - Safety and Health -Employment -Communty Learnng and Growth Perspectve Human Captal Informaton Captal Organsaton Captal Culture Leadershp Algnment Teamwork Fgure 9 Strategy Map (Kaplan and Norton, 2004) Accordng to the performance prsm of Neely et al. (2001), performance measurement systems should be organzed around fve dstnct but lnked perspectves of performance (see Fgure 10): Stakeholder satsfacton. Who are the stakeholders and what do they want and need? Strateges. What are the strateges we requre to ensure the wants and needs of our stakeholders? Processes. What are the processes we have to put n place n order to allow our strateges to be delvered? Capabltes. The combnaton of people, practces, technology and nfrastructure that enable the executon of the organsaton s busness processes (both now and n the future): what are the capabltes we requre to operate our processes? Stakeholder contrbutons. What do we want and need from stakeholders to mantan and develop these capabltes? 47 Performance measurement

46 Stakeholder satsfacton Investors, Customers, Intermedares, Employees, Regulators, Communtes, Supplers Strateges Corporate, Busness unt Brands/Products/Servces Processes Develop products & servces, Generate demand, Fulfl demand, Plan & manage enterprse Capabltes People, Practces, Technology, Infrastructure Stakeholder contrbuton Fgure 10 The Performance Prsm (Neely et al., 2001). In the trple P model, Tangen (2005) defnes performance as the umbrella term of excellence and ncludes proftablty and productvty as well as other non-cost factors such as qualty, speed, delvery and flexblty, (see Fgure 11). Productvty nvolves the relaton between output and nput quantty (Tangen, 2005). Proftablty s a monetary relatonshp whch nfluences prce-factors (.e., the dfference between costs and revenues). The terms effectveness and effcency are cross-functonal when consdered n regard to the other three terms. Effectveness represents the degree to whch desred results are acheved. Effcency represents how well the resources of the transformaton process are utlsed. Qualty, delvery, Speed, flexblty Prce recovery Performance Proftablty Productvty Output Input Effectveness Effcency Fgure 11 The Trple-P model (Tangen, 2005) 48 Performance measurement of workplace change

47 2.5 Performance measurement n the context of CREM and FM Alexander (2003, p.274) dentfes the measurement of FM performance as one of three essental ssues for the effectve mplementaton of a facltes strategy. FM s assumed to be able to contrbute to performance of organsatons n many ways, ncludng strategy, culture, control of resources, servce delvery, supply chan management, and management of change (Amaratunga and Baldry, 2002). In ths context, the applcaton of the performance management concept could be dentfed as a major task facng an FM organsaton when attemptng to ntroduce performance measurement systems and dscoverng how to use them to nfluence future performance. In the feld of CREM we can notce how the demand for corporate real estate has changed consderably as a result of both external economc shfts and organsatonal change. Today, frms are confronted wth a wder range of choces when they dentfy a need for new or mproved accommodaton. The purpose of real estate performance measurement s to comprehend the mpact of management decson-makng on the success and falure of the real estate portfolo and to suggest possble mprovements (Cable and Davs, 2004). It s mportant to an organsaton as t provdes muchneeded drecton to management for decson makng. The goals of performance measurement also nclude determnng the extent to whch a buldng caters to ts occupants and dentfes major ssues affectng ts performance adversely (Douglas, 1996). Performance levels can be broken down nto three levels of prorty: 1) health, safety and securty performance, 2) functonal, effcency and work flow performance and 3) psychologcal, socal, cultural and aesthetc performance (Preser, 1983, Vscher, 1989). Based on the Trple-P model of Tangen (2005), De Vres et al. (2008) connected real estate nterventons to compettve advantage, proftablty and productvty, (see Fgure 12). Compettve advantage has been defned as the (developments n) market share. Research from De Vres (2007) has demonstrated both the postve and negatve effects of real estate nterventons on the organsatonal performance of the Academes of Appled Scences, caused by real estate nfluences on producton, customer satsfacton, cost reducton and so on. However, she also concluded that cause-effect relatonshps were hard to prove, due to the smultaneous changes n organsatonal characterstcs and the external context. 49 Performance measurement

48 CONTEXT: Legslaton, socety, market, demography ORGANISATION: Culture / structure / ams and objectves INPUT Human resources Technology Informaton Captal REAL ESTATE Real estate nterventon Mantenance Functonal adjustment Reshufflng (partal) Renewal New Buldng PROCESS Influence Producton Satsfacton Image Flexblty Culture OUPUT Products Servces Innovaton Costs Rsk control Possblty to fnance Change n PERFORMANCE Productvty Proftablty Compettve Advantage Stakeholders Owners Governement Employees Supplers Clents Neghbours Fgure 12 Conceptual framework used to study effects of real estate nterventon on organsatonal performance (De Vres, et al., 2008). 2.6 The added value of corporate real estate management CREM s usually defned as the management of a real estate portfolo of a corporaton or publc authorty by algnng the portfolo and servces to the needs of the core busness n order to obtan maxmum added value for the busness and to contrbute optmally to the overall performance of the organsaton (adapted from Dewulf et al., 2000)). Nourse and Roulac (1993) lnked real estate decsons to corporate strategy by dscussng how alternatve real estate strateges can contrbute to busness objectves. Accordng to Nourse and Roulac, eght dfferent types of real property strateges can be lnked to several goals that a frm mght have whch are descrbed as follows: 1 Occupancy cost mnmsaton Explct lowest-cost provder strategy Sgnal to crtcal consttuences of cost-conscousness 2 Flexblty Accommodate changng organzatonal space requrements Manage varablty/rsk assocated wth dramatc escalaton/compresson space needs Favour facltes that can readly be adapted to multple uses by corporaton and others 50 Performance measurement of workplace change

49 3 Promote Human Resources objectves Provde effcent envronment to enhance productvty Recognze that envronments are mportant elements of job satsfacton and therefore compensaton Seek locatons convenent to employees wth preferred amentes 4 Promote marketng message Symbolc statement of substance or other value Form of physcal nsttutonal advertsng Control envronment of nteracton wth company s product/servce offerng 5 Promote sales and sellng process Hgh traffc locaton to attract customers Attractve envronment to support/enhance sale 6 Facltate and control producton, operatons, servce delvery Seek/desgn facltes that facltate makng company products/delverng company servces Favour locatons and arrangements that are convenent to customers Select locatons and layouts that are convenent to supplers 7 Facltate manageral process and knowledge work Emphasze knowledge work settng over tradtonal ndustral paradgm Recognze changng character, tools used, and locaton of work 8 Capture the real estate value creaton of busness Real estate mpacts resultng from demand created by customers Real estate mpacts resultng from demand created by employees Real estate mpacts resultng from demand created by supplers De Jonge (1996) descrbes seven elements of added value of real estate that nclude varous aspects of workplace change: 1 Increasng productvty Offerng adequate accommodaton Ste selecton Introducng alternatve workplaces Reducng absence of leave 2 Cost reducton Creatng nsght nto cost structure More effcent use of workplaces Controllng costs of fnancng 3 Rsk control Retanng a flexble real estate portfolo Selectng sutable locatons Controllng the value development of the real estate portfolo Controllng the process rsk durng (re)constructon Controllng envronmental aspects and labour condtons 51 Performance measurement

50 4 Increase of value Tmely purchase and sale of real estate Redevelopment of obsolete propertes Knowledge and nsght nto the real estate market 5 Increase of flexblty Organsatonal measures (workng hours, occupancy rates) Legal/fnancal measures (mx own/rent/lease) 6 Changng the culture Introducng workplace nnovatons 7 PR and marketng Selecton of branch locatons Image of buldngs Governng corporate dentty Smlarly, eght dfferent types of real estate strateges (Nourse and Roulac, 1993) and seven elements of added value of real estate (De Jonge, 1996) have provded several lnks to workplace change such as ncreased flexblty, cost reducton, promote marketng and sales. Prevous studes on the added value of CREM relate workplace performance and productvty. In the study of the value-addng attrbutes of real estate, Lndholm and Levänen (2006) stated that the demand for more effcent utlzaton of space and hgher workplace productvty has led to busnesses adoptng a range of strateges for managng ther facltes. In ther study, real estate strateges are organzed to support core busness strateges nto the seven alternatves (see Fgure 13): 1 ncreasng the value of assets 2 promotng marketng and sales 3 ncreasng nnovaton 4 ncreasng employee satsfacton 5 ncreasng productvty 6 ncreasng flexblty 7 reducng costs 52 Performance measurement of workplace change

51 Core busness performance level Real estate strategy level Increase value of assets Real estate decson makng and operaton level - Obtan current valuatons of facltes - Select sutable locatons - Manage rsk assocated wth propertes - Make lease/purchase decson on a faclty by faclty bass - Redevelop obsolete propertes - Create and mantan IT-system for property management Maxmze wealth of shareholders Proftablty growth Revenue growth Promote marketng and sale Increase nnovatons Increase employee satsfacton Increase productvty Increase flexblty - Select locatons that attract customers - Provde space that attract customers - Make symbolc statement through desgn and locaton - Create workplaces that support the brand - Provde envronment that supports the sale - Develop usablty of the workplaces - Desgn facltes that allow nnovatve processes - Emphasse knowledge work settngs - Allow users to partcpate n desgn phase - Seek locatons convenent to employees - Provde pleasant workng envronment - Provde functonal workplace - Provde desred amentes - Respond quckly to real estate requests - Mantan facltes to accommodate optmal operatons - Provde envronment that enhances productvty - Choose convenent layouts and locatons for provders - Desgn facltes that mprove the creaton and delvery of products - Choose convenent locatons for employees n separate buldngs - Choose leasng nstead of ownng - Negotate short-term leases - Create flexble workplace solutons - Favour multple use facltes - Select servced offces Reduce cost - Mnmze acquston and fnancng costs - Mnmze operatng expenses - Create economes of scale n acqustons - Use workplaces more effcently - Conduct routne mantenance - Balance between outsourced and n-house servces - Act as a control mechansm - Utlse government ncentves - Establsh workplace standards Fgure 13 The model for dentfyng the added value of CREM (Lndholm, 2008) The FM Value map developed by Jensen (2010) s a framework that can be used to provde a better understandng of the value and contrbutons of FM. The value map has been developed based on nductve reasonng from an analyss that has been made of a large number of cases n the Nordc countres of Europe. The FM value map focuses on value creaton as part of FM and how FM can add value to a core busness as well as the surroundngs - for the beneft of all the relevant stakeholders (see Fgure 14). 53 Performance measurement

52 STAKEHOLDERS Socety Customers Staff Owners IMPACTS (OUTCOME) Economcal Satsfac -ton Cost Socal Spatal Envronmental Productvty Relablty Adaptaton Culture SURROUNDINGS CORE BUSINESS PROVISIONS (OUTPUT) Basc products Addtonal offerngs Space Servces Development Relatons PROCESSES (PDCA) Plannng Coordnatng Controllng Improvng RESOURCES (INPUT) Facltes Actvtes Real estate Technology Manpower Know-how FACILITIES MANAGEMENT Fgure 14 FM Value Map (Jensen, 2010) The value map entals that FM use certan resources that work as nput to some processes, leadng to a number of provsons as outputs. These provsons can have varous mpacts on both a core busness and the surroundngs, whch can be of beneft to the varous stakeholders. The resources of FM are subdvded nto facltes and actvtes wth facltes consstng of real estate and technology, whereas actvtes consst of manpower and know-how. The processes n FM are subdvded accordng to the PDCA (Plan-Do-Check-Act) n plannng, coordnaton, controllng and mprovng. The provsons of FM are subdvded n basc products and addtonal offerngs. The basc products consst of space and servces, whereas addtonal offerngs consst of development and relatonshps. The mpacts to the core busness are dvded nto satsfacton, cost, productvty, relablty, adaptablty, and culture. For the surroundngs, the mpacts are dvded nto economcal, socal, spatal, and envronmental. The stakeholders are dvded nto owners, staff, customers, and socety. The FM Value Map not only provdes the understandng of the nterface between FM provsons and the mpact to the core busness n dfferent stakeholders perspectves, but t also ncludes the mpacts on the surroundngs that are lnked to sustanablty and corporate socal responsblty. Den Hejer (2011) dscussed the mpact of unversty real estate on performance on two levels: 1) the mpact on an organsaton and socety, lnkng t to busness economcs theores and 2) the mpact on ndvduals, lnkng t to psychology theores. In her study, the herarchy of addng value s connected to the dfferent stakeholders and lnked to four man performance crtera: proftablty, productvty, compettve advantage (the same as Tangen, 2005, and De Vres, 2007) and sustanable 54 Performance measurement of workplace change

53 development, (see Fgure 15). Ths model for addng value to performance could also be appled to other organsatons, but the prorty of each performance crtera mght be assgned dfferent rankngs. However, the types of performance that a partcular company strves to fulfl are very case specfc. ADDING VALUE Compettve advantage PERFORMANCE (OUTPUT) through strategc goals through fnancal goals Proftablty stmulatng collaboraton score 64 stmulatng nnovaton score 64 supportng culture score 26 supportng mage score 89 mprovng qualty of place CAMPUS STRATEGY FUTURE CAMPUS MODELS (INPUT) qualty ambton CREM budget n euros decreasng costs score 66 ncreasng real estate value score 14 controllng rsks score supportng user actvtes score 145 ncreasng user satsfacton score 145 # users nvolved Types of m 2 3 reducng footprnt score 45 5 ncreasng flexblty score 105 Productvty through functonal goals through physcal goals PERFORMANCE (OUTPUT) Sustanable development Fgure 15 Herarchy of addng value - model to assess real estate decsons from project (nput) to performance (output) ex post and ex ante (Den Hejer, 2011) In terms of addng value to the unversty s performance, Den Hejer developed a lst of goals that focus on effcency and effectveness. Ths lst of goals has been based on campus goals that were found n the research (De Jonge et al., 2000, Den Hejer, 2002) and related to varous ways of addng value to the unversty s performance. The followng lst was prortsed by the Dutch campus managers (see Fgure 16). 55 Performance measurement

54 focus on effectveness - support dentty unversty/attract more students & staff members - support dentty user (faculty, department or nsttuton that uses the buldng) - support user goals more effectvely (follow changes n educaton/research) - ncrease ncome/decrease expendture on level organsaton - ncrease ncome: make buldng rentable to a thrd party - ncrease ncome: make buldng marketable to a thrd party - more qualty for user (more luxurous, representatve) - support culture change (for nstance after reorgansaton) - stmulate nnovaton/collaboraton (staff-staff, staff-student, student-student) - ncrease flexblty: non-terrtoral offces for staff/spaces used by multple users - ncrease flexblty: adaptablty/multfunctonal use - ncrease occupancy and frequency rates - less square metres per user - save accommodaton costs - acheve or mantan qualty for use permt (safe and healthy workplace) focus on effcency Fgure 16 Lst of goals that can be supported by the campus. 2.7 Comparson of dfferent studes concernng the added value of real estate Dfferent terms are used to dentfy the added value of CREM ncludng real estate strateges (Nourse and Roulac, 1993, Lndholm, 2008), performance measurement (Bradley, 2002), objectves (Van Meel et al., 2010) and added value (De Jonge, 1996, Den Hejer, 2011, Van der Zwart and van der Voordt, 2012, Jensen et al., 2012a). These terms are nterrelated and n some cases they are nterchangeable. Table 6 compares the areas of the added value of CREM from several dfferent authors. 56 Performance measurement of workplace change

55 Bradley (2002) Nourse and Roulac (1993) De Jonge (1996) Lndholm (2008) Van Meel et al. (2010) Den Hejer (2011) Van der Zwart and Van der Voordt (2012) Jensen et al. (2012) 1.Stakeholder percepton (employee satsfacton) Promote Human Resources objectves not mentoned Increasng employee satsfacton Attract and retan staff Supportng user actvtes Increase user satsfacton Increase user satsfacton Satsfacton Improvng qualty of place 2.Fnancal health 3.Organsatonal development 4.Productvty 5.Envronmental responsblty 6.Cost effcency Capture the real estate value creaton of busness Flexblty Facltate manageral process and knowledge work Promote marketng message Promote sales & sellng process Facltate and control producton, operatons, servce delvery not mentoned not mentoned not mentoned Occupancy cost mnmsaton Increase of value Increase of flexblty Changng the culture PR and marketng Rsk control not mentoned Increasng productvty not mentoned Cost reducton Increasng the value of assets Increasng flexblty not mentoned Promotng marketng and sales not mentoned Increasng nnovaton Increasng productvty not mentoned Reducng costs not mentoned Increase flexblty Encourage nteracton Support cultural change Express the brand not mentoned Stmulate creatvty Enhance productvty Reduce envronmental mpact Reduce costs Increase real restate value Increase flexblty Supportng culture Stmulatng collaboraton Supportng mage Controllng rsk Stmulatng nnovaton Supportng user actvtes Reducng the footprnt Decreasng costs Improve fnance poston Improve flexblty Improve culture Support mage Controllng rsk Increase nnovaton Improve productvty not mentoned Reduce costs not mentoned Adaptaton Culture not mentoned Relablty not mentoned Productvty Envronmental Cost Table 6 Comparson of dfferent lsts of added value of CRE 57 Performance measurement

56 The added values have been classfed accordng to the sx perspectves of performance measures derved from Bradley (2002) (see Secton 2.8.1). These sx perspectves of performance measures have been algned wth most of the areas of the added value of CREM n the lterature. The performance measures n sx categores nclude: 1) stakeholder percepton, 2) fnancal health, 3) organsatonal development, 4) productvty, 5) envronmental responsblty and 6) cost effcency. All of the authors express ther concern about cost reducton and flexblty as the approach to add value followed by productvty, changng the culture, user satsfacton and promotng marketng and sales. The other areas have been mentoned less often ncludng rsk control, ncreased real estate value and stmulatng nnovaton. The leastmentoned area s envronmental responsblty. The comparson table shows that one of the most recent studes, the one by Den Hejer (2011) on the added value of CREM n connecton to unversty performance, can be compared to all of the sx perspectves of busness performance measures appled n ths PhD study (Bradley, 2002). 2.8 CREM and FM related performance measures, ndcators and KPIs Cable and Davs (2004) stated that performance measurement through the establshment of KPIs helps the senor management team to make mportant strategc decsons. It s essental for organsatons to descrbe ther performance requrements n terms of factors that are crtcal to the successful operaton. KPIs represent a set of measures that focus on those aspects of organsatonal performance that are the most crtcal for the current and future success of the organsaton (Parmenter, 2007). KPIs are used both as ndcators of ndvdual performance and busness performance as a whole. There are frequently used terms relatng to KPIs ncludng performance measures, performance ndcators and metrcs. Although these terms are often nterchangeably used, they are dfferent and should be mentoned here. Htchcock (2002) and O Sullvan et al. (2004) state that performance metrcs can defne the performance objectves n a clear and quantfable manner. Performance metrcs relate to the objectves of the performance evaluaton of a buldng and can be helpful n determnng the progress made n achevng the performance goals of a buldng (Deru and Torcelln, 2005). Accordng to Neely et al. (1995), performance measure s defned as a metrc to quantfy the effcency and/or effectveness of an acton. Performance measurements are drectly measurable tems such as the total expenses or facltes partculars, such 58 Performance measurement of workplace change

57 as occupancy costs, gross floor area, etc. (Ho et al., 2000). Performance ndcators are data obtaned by measurng expenses or facltes partculars aganst certan metrcs, such as occupancy costs per employee, occupancy costs per square meter, rato of gross floor area to usable floor area, proporton of gross floor area servced wth energy, etc. (Ho et al., 2000). Douglas (1996) emphasses the mportance of ndcators that portray the space n terms of amount (area and volume), qualty (approprateness, vsual and envronmental qualtes) and shape (plan and layout). A smple explanaton to dstngush performance ndcators from performance measures s that a performance ndcator ndcates (not measures) performance, and a results ndcator ndcates results. A key performance ndcator s a performance ndcator that s more mportant (key) than others (Jones, 2012). Becker (1988) mentoned sx KPIs of facltes: No loss of busness due to buldng servces or systems falure Operatng costs controlled and wthn budget Proactve reportng and plannng carred out Low cost, functonal buldngs Promote corporate mage Reduced occupancy cost vs. revenue Varcoe (1996, p.51) stated that the bass of strategc management n sound performance measures means that only from the frm bass of a clear understandng of the overall organsatonal performance equaton that busness decsons and valuebased recommendatons for mprovement supported by measurement can be made n the proper context of true organsatonal need. The acknowledgement that operatonal buldngs are durable physcal assets that requre ongong management has created a need for more robust decson-makng tools that are capable of evaluatng the respectve nfluences of dfferent operatons, mantenance and servce usage strateges throughout the extended servce lfe of a faclty (Preser and Vscher, 2005). Bon et al. (1998) mentoned that real property performance should be measured wth the objectve of gradually changng the character of the entre portfolo va contnual manageral acton bent on mprovng real property performance. In the past, FM n general, and the publc sector FM n partcular, was overtly focused on the ndcator of cost per unt area as the ubqutous comparator of buldng performance enshrned n varous gudes, codes, and benchmarkng schemes (Prce, 2004, Pnder and Prce, 2005, Hnks et al., 2007 n Prce and Clark, 2009, p.6). Nowadays, a slowly growng nterest comes to the fore nto output ndcators that measure benefts as well. Based on lterature search, Lavy et al. (2010) presented 35 major ndcators relatng to buldng and facltes n four categores (Table 7): 59 Performance measurement

58 1 fnancal ndcators, whch relate to costs and expendtures assocated wth operaton and mantenance, energy, buldng functons, real estate, plant, etc. 2 physcal ndcators, whch are assocated wth the physcal shape and condtons of the faclty, buldngs, systems, and components 3 functonal ndcators, whch are related to the way the faclty and the buldngs functon and whch express buldng approprateness through space adequacy, parkng, etc. 4 survey-based ndcators, whch are based solely on respondents opnon to surveys that are prmarly qualtatve n nature Fnancal ndcators Physcal ndcators Functonal ndcators Survey-based ndcators 1. Operatng costs 2. Occupancy costs 3. Utlty costs 4. Captal costs 5. Buldng mantenance cost 6. Grounds-keepng cost 7. Custodal and jantoral cost 8. Current replacement value (CRV) 9. Deferred mantenance, and deferred mantenance backlog 10. Captal renewal 11. Mantenance effcency ndcators (MEI) 12. Faclty condton ndex (FCI) 13. Churn rate and churn Costs 1. Buldng physcal condton quanttatve: Buldng Performance Index (BPI) 2. Buldng physcal condton qualtatve: general buldng mantenance n: (1) buldng physcal condton; (2) santary, plumbng and storm water; (3) mechancal servces; and (4) lghtng and electrcal 3. Property and real estate 4. Waste 5. Health and safety 6. Indoor envronmental qualty (IEQ) 7. Accessblty for dsabled 8. Resource consumpton energy: (1) energy use: total faclty energy use; or buldng energy use; (2) net energy consumpton; (3) annual energy consumpton; (4) total natural gas consumpton; (5) buldng electrcal consumpton; or (6) buldng electrcal demand, demand ntensty, or peak electrcty demand 9. Resource consumpton water: (1) water consumpton; or (2) net water consumpton 10. Resource consumpton materals: (1) materal consumpton, or (2) net materal consumpton 11. Securty 12. Ste and locaton 1. Productvty 2. Parkng 3. Space utlzaton 4. Employee or occupant s turnover Rate 5. Msson and vson, and Msson Dependency Index (MDI) 6. Adequacy of space 1. Customer/buldng occupants satsfacton wth products or servces 2. Communty satsfacton and partcpaton 3. Learnng envronment, educatonal sutablty, and approprateness of faclty for ts functon 4. Appearance Table 7 35 ndcators relatng to buldng and facltes n four categores (Lavy et al., 2010) 60 Performance measurement of workplace change

59 Den Hejer (2011) dentfed a number of KPIs to measure the performance of a unversty, dvded n KPIs for productvty, proftablty, compettve advantage and sustanable development as shown n table 8. Except for compettve advantage, all of the groups nclude KPIs that are related to real estate. Key performance ndcators (KPIs) to measure a unversty s performance Productvty Proftablty Compettve advantage Sustanable development publcaton per academc fte output per m 2 student per m 2 employee per m 2 energy costs per m 2 total costs of ownershp as % of total costs (or turnover) etc. revenue mnus costs solvency lqudty envronmental goals poston on nnovaton ndex ctaton score (economc) value of alumn ncreased real estate value nternatonal rankngs market share of students qualty of alumn student satsfacton alumn satsfacton employee satsfacton energy use per m 2 energy use per user CO 2 emsson per m 2 CO 2 emsson per user energy labels of buldngs footprnt n m 2 per user Italcs = real estate related KPIs Table 8 Key performance ndcators to measure a unversty s performance (Den Hejer, 2011) Corporate real estate performance measures from sx perspectves The Balanced Scorecard (BSC) concept n connecton to corporate real estate and the workplace has been appled to several added value approaches such as real estate strateges (Lndholm, 2008), FM value map (Jensen, 2010) and performance measurement frameworks n the Worldwde Workplace Web (W4) network (Wlson et al., 2003). The use of the BSC s equally applcable to not-for-proft and governmental organsatons as well as to commercal organsatons (Bradley, 2002). However, the scorecard s always organsaton-specfc n ts detal. Bradley classfed performance measures n sx perspectves of busness performance accordng to the BSC concept (Bradley, 2002): 1 stakeholder percepton (customer perspectve) 2 fnancal health (fnancal perspectves) 3 organsatonal development (nternal busness process perspectve) 4 productvty (learnng and growth perspectve) 5 envronmental responsblty (nternal busness process perspectve) 6 cost effcency (fnancal perspectve) 61 Performance measurement

60 As a result of the lterature revew regardng performance measures, a long lst was drawn up of performance measures and ndcators (see Appendx V). The lst of performance measures was frst gathered from publc nsttutons ncludng the Natonal Property Board of Sweden (NPB), the Brtsh Columba Buldngs Corporaton (BCBC), the Real Property Servces (RPS), the Branch of Publc Works and Government Servces Canada, the Norwegan Drectorate of Publc Constructon and Property (Statsbygg), The Netherlands Standardsaton Insttute (NEN) and U.S. General Servces Admnstraton (GSA). Subsequently, the lst was supplemented wth lterature from Carder (1995), Hnks and McNay (1999), Bradley (2002), Kaczmarczyk and Murtough (2002), Kaczmarczyk and Morrs (2002), Wlson et al. (2003), Van der Voordt (2004) and Lndholm and Gbler (2005). The purpose of the lst s to gather performance measures from varous perspectves wth a partcular focus on real estate and workplace connecton. To mprove the applcablty, the lst was clustered to correspond wth the sx perspectves mentoned above. Instead of sufferng from a lack of adequate performance measures, an organsaton wll usually fnd t has too many. The performance measures from sx perspectves accordng to the lterature were formulated (see Appendx V). However, the long lst of performance measures s not very practcal. Therefore, a shorter lst of performance measures wth regard to real estate and workplace has been formulated n ths chapter. 1 Stakeholder percepton In the lterature, employee satsfacton wth the work envronment and customer satsfacton wth facltes are two performance measures that are frequently mentoned n connecton wth real estate and workplace. Sometmes communty and well-beng are mentoned as well. Employee satsfacton wth the work envronment Several authors dscuss employee satsfacton wth work envronment (Sundstrøm, 1986, Arthur Andersen et al., 1993, Nourse, 1994, Vollebregt, 1996, Hnks and McNay, 1999, Bder, 2003, Van der Voordt, 2003, Lndholm and Gbler, 2005, Cleements- Croome, 2006). Employee satsfacton wth the work envronment refers to the degree to whch the work envronment meets the wshes and needs of the workng ndvdual (Van der Voordt, 2003). Employee satsfacton wth the work envronment can be measured by the followng factors: Qualty of ndoor envronment: lghtnng, ar condtonng, temperature, nose level (Kncad, 1994) Provson of safe envronment (Hnks and McNay, 1999) Provson of amentes (Bder, 2003) Rato of offce space to common areas (Lubeneck and Desrocher, 2003) Amount of workplace reforms and space modfcatons (Lndholm and Gbler, 2005) 62 Performance measurement of workplace change

61 Accordng to Maslow s herarchy of needs, the qualty of the ndoor envronment refers to the physologcal needs. The provson of a safe envronment refers to both physologcal and safety needs, whch are concerned wth personal securty, health and well-beng. The provson of amentes, the rato of offce space to common areas and the amount of workplace reforms and space modfcatons relate to the work envronment that fts wth daly actvtes and functonalty, stmulates communcaton, provdes concentraton and supports personalsaton and expresson of status. Employee satsfacton wth corporate real estate servces The other measures ncludng employee satsfacton wth CRE servces (Duckworth, 1993, Lubeneck and Desrocher, 2003, Lndholm and Gbler, 2005) and locaton success factors (access to employees, amount of local amentes) (Duckworth, 1993, Lubeneck and Desrocher, 2003) are classfed as nnovatve performance measures (Lndholm and Gbler, 2005) that are necessary for the management of corporate real estate and facltes. These measures are ncluded n the Work Envronment Dagnoss Instrument (WODI) for an ndcatve evaluaton of employee satsfacton through the workng envronment. Employee satsfacton wth professonal sklls and nformaton sharng are especally mportant durng the preparaton and mplementaton process of workplace change. Customer satsfacton wth facltes It s wdely accepted that the customer (clent) plays an mportant role n many ndustres, partcularly n the servce busness (Hu and Zheng, 2010). Customer satsfacton has been lnked to hgher proft margns and greater employee satsfacton, customer retenton, and repeat purchases (Berry and Parasuraman, 1992, Jones and Sasser, 1995, Schneder and Bowen, 1995, Conrad et al., 1997, Appah-Adu and Sngh, 1999). In addton to the tradtonal fnancal performance, the Balanced Scorecard concept covers the other perspectves that reflect an organsaton s goals, ncludng placng a focus on the customer. Mobach (2009) mentoned that faclty servces have dfferent effects on organsatonal performance wth regard to the mpact of spatal characterstcs on health, mood and behavour of people n and around organsatons. Tranfeld and Akhlagh (1995) suggest that performance measures for facltes should relate to the man busness ndcators of the prmary task. Performance measurement systems used n the prmary task may reflect the power of the varous stakeholders n the organsaton, and reflect the balance of the varous goals beng pursued by the senor management. If customer satsfacton wth facltes s a key ndcator n the prmary task, t may be useful to use a smlar ndcator n property performance measurement. Measures of performance for customers could nclude customer satsfacton surveys and a recordng the number of complants (Walters, 1999). Accordng to Wlson et al. (2003) and Lndholm and Gbler (2005), customer satsfacton wth facltes s the 63 Performance measurement

62 most commonly used CRE measure. Ths measure was mentoned n Carder (1995), Kaczmarczyk and Morrs (2002), Hagarty and Wlson (2002), Wlson et al. (2003) and GSA (2006). Carder (1995) mentoned performance measures, such as the average call frequency and the cost per square foot the Help Desk that can provde a useful proxy for customer satsfacton. On the other hand, the publc organsatons concern about the overall tenant satsfacton wth property management servces (RPS, 2003) and survey ratng (.e. extent to whch full servce workplace provsonng solutons meet customer needs; BCBC, 2003). In terms of marketng and sales as an area n the added value of real estate, the nnovatve performance measures relatng to customer satsfacton nclude locaton success factors such as access to customers, the dstance to other stes and busnesses (Duckworth, 1993, Lubeneck and Desrocher, 2003) and the ratngs based on buldng attrbutes (Duckworth, 1993). Customer satsfacton wth facltes can be measured by: survey ratng (e.g. customer/tenant survey of the facltes, buldng, property management and CRE servces) number of complants average call frequency and cost per square foot the help desk locaton success factors (e.g. access to customers, dstance to other stes and busnesses) Communty and well-beng From the external stakeholder perspectve, the measures relatng to communty and well-beng are mostly mentoned n the publc sector and nclude the contrbuton to publc polcy and socetal prortes (Kaczmarczyk and Morrs, 2002, Wlson et al., 2003). To sum up, Table 9 shows the most frequently-mentoned performance measures on stakeholder percepton that have been obtaned from several authors n the feld. 64 Performance measurement of workplace change

63 Stakeholder percepton Employee satsfacton wth work envronment Employee satsfacton wth CRE servces Customer satsfacton wth facltes Performance measures Qualty of ndoor envronment: lghtnng, ar condtonng, temperature, nose level, etc. (Kncad, 1994, Van der Voordt, 2003) Provson of safe envronment (Hnks and McNay, 1999) Amount of workplace reforms and space modfcatons (Lndholm and Gbler, 2005) Rato of offce space to common areas (Lubeneck and Desrocher, 2003) Provson of amentes (Bder, 2003) Locaton success factors (access to employees, amount of local amentes) (Duckworth, 1993, Lubeneck and Desrocher, 2003, Lndholm and Gbler, 2005) Employee satsfacton wth professonal sklls Employee satsfacton wth nformaton sharng Survey ratng (e.g. customer/tenant survey of the facltes, buldng, property management and CRE servces) (Walters, 1999) Number of complants (Walters, 1999) Average call frequency and cost per square foot for the help desk (Carder, 1995) Locaton success factors (proxmty to requred transportaton, access to customers, dstance to other stes and busnesses) (Duckworth, 1993, Lubeneck and Desrocher, 2003, Lndholm and Gbler, 2005) Communty and well-beng The contrbuton to publc polcy and socetal prortes (Hagarty and Wlson, 2002) Table 9 Performance measures of stakeholder percepton 2 Fnancal health Fnancal health (also referred to as fnancal well-beng) s most often defned as a way n whch the overall fnancal aspect of organsatons can be measured by ncludng the amount of assets that are owned as well as how much ncome must be spent to cover regular and other expenses (Busness.com, 2012). For example, the most common measures n ths area nclude net ncome, return of equty, return on nvestment, busness volumes, rato of expenses to revenue and captal expendtures. Fnancal resources determne the company s ablty to nvest n new facltes and to upgrade exstng facltes. Ths perspectve relates to both nternal and external contexts such as nvestment captal, real estate market condtons, corporate context and fnancal consderatons. Captal expenses nclude the purchase and development or ownershp of facltes, and the purchase of long-lved tems such as furnture and fxtures. O Mara (1999) suggested askng a few general questons ncludng What source of nvestment captal s avalable for real estate and facltes? Should the company lease or own propertes? What mpact wll a major real estate commtment have on the company captal market poston? Companes can fnd many other uses for the money approprated for real estate and facltes. However, f not enough attenton s pad to faclty nvestment, ths could have adverse compettve consequences. The way n whch both operatng and captal expenses are accounted for and charged back vares from company to company. Some companes track faclty costs drectly from the busness unts that beneft from them, but the others pool together all of the real estate costs, and then allocate costs evenly across the company (O Mara, 1999). 65 Performance measurement

64 Real estate and facltes are sgnfcant consumers of both operatng and nvestment captal. From a corporate perspectve, real estate s the ffth resource, n addton to human resources, technology, nformaton technology, nformaton and captal (Joroff et al., 1993), whch s a necessary nput n a producton process. The problem of real estate s that, economcally, t s vewed as an ndvsble asset, hard to consume n small quanttes, and also long-lved. In addton, real estate s an llqud asset. The ownershp usually brngs a number of legal and fnancal lablty ssues, whch have mplcatons for the busness far beyond the value of the real estate (Louargand, 2000). In terms of the economc value added, ths concept generally mples measurng all the wealth that has been put nto the company over a gven perod, as compared to the amount of wealth that s ensured at the end of the process. If the busness processes are beng managed correctly, then wealth wll be created (Louargand, 2000, p.67). Capturng the real estate value creaton of busness s one of the alternatve real estate strateges. (Nourse and Roulac, 1993). Smlar terms are used by dfferent authors ncludng an ncrease of value (De Jonge, 1996), fnancal health (Bradley, 2002), ncreasng the value of assets (Lndholm, 2008), ncreasng real estate value (Den Hejer, 2011), and mprovng the fnancal poston (Van der Zwart and Van der Voordt, 2012). Value of property, plant and equpment Value of property, plant and equpment (for balance sheet) (Lubeneck and Desrocher, 2003) s related to the area of the added value of CREM and can be measured by: Real estate cost of acqustons versus returns/irr Lease vs. constructon or ownershp cost comparsons Real estate return on nvestment Real estate return on equty Busness return on real estate assets Sales or revenue per square foot (metre) Space (square feet or metres) per unt (dollar) of revenue From the publc sector perspectve, the economc or market value added wth regard to corporate real estate ncludes the followng measures: Return on Investment for Owned Market-Comparable Offce Buldngs (BCBC, 2003) Return on property management. Result before fnance cost as percentage of nvested captal per year (Statsbygg, 2003) Total ncome from consultng and plannng, constructon project management and property management (Statsbygg, 2003) Total Proceeds on Propertes Sold (BCBC, 2003) 66 Performance measurement of workplace change

65 There are a number of performance measures that address the sgnfcance of fnancal performance. However, the pure busness performance measure terms used for the entre busness operaton are dffcult to dentfy n connecton to real estate. Ths s because real estate s a farly small tem on the balance sheet (Louargand, 2000). In ths PhD research, the focus s on the value of property, plant and equpment as the economc or market value added of corporate real estate. In most cases, real estate s mpact on the ncome statement s the most crtcal and relevant measurement (Lubeneck and Desrocher, 2003). Table 10 shows the most frequently-mentoned performance measures by several authors that focus on fnancal performance. Fnancal health Value of property, plant and equpment (Lubeneck and Desrocher, 2003) Performance measures Busness return on real estate assets (Lndholm, 2008) Real estate return on nvestment (Lndholm, 2008) Real estate return on equty (Lndholm, 2008) Sales or revenue per square foot (metre) (Lndholm, 2008) Space (square feet or metres) per unt (dollar) of revenue (Lndholm, 2008) Return on property management (Statsbygg, 2003) Table 10 Performance measures of fnancal health 3 Organsatonal development Ths area can be compared wth the Balanced Scorecard s nternal busness process perspectve. Ths perspectve emphaszes the way n whch the organsaton must excel n order to mprove performance such as those processes that are meant to meet or exceed customer expectaton (Kaplan and Norton, 1992). In terms of corporate real estate, an organsaton s busness processes can be mproved n three man areas: 1) qualty of facltes, 2) accommodaton usage and 3) CRE unt qualty (Kaczmarczyk and Morrs, 2002, Wlson et al., 2003). Qualty of facltes The organsatonal development not only ncludes the quanttatve, tangble aspect, but t also focuses on the qualtatve aspect or effectveness of the busness processes. Performance measures relatng to the qualty of real estate and facltes nclude: Physcal condton of facltes (Lndholm and Gbler, 2005) Number of buldng qualty audts (Lndholm and Gbler, 2005) Sutablty of premses and functonal envronment (Hnks and McNay, 1999) Equpment provded meets busness needs (Hnks and McNay, 1999) Number of development projects (obsolete propertes) (Lndholm and Gbler, 2005) Standards of cleanng (Hnks and McNay, 1999) All work on propertes done n accordance wth approved mantenance plan (Statsbygg, 2003) Rato of area managed per operatons and mantenance employee (BCBC, 2003) 67 Performance measurement

66 Accommodaton usage Ths measure focuses on the measurement of an organsaton s real property assets and workng spaces such as lease terms, square metre areas or number of workstatons. Ths area can be measured by: Area leased as percentage of total area (m 2 ) (Statsbygg, 2003, Lndholm and Gbler, 2005) Percentage of space occuped (Nourse, 1994, Bder, 2003) Gross floor area per usable floor area (Massheder and Fnch, 1998) Space Supply and Demand Ratos (RPS, 2003) Percentage of surplus assets sold (Lndholm and Gbler, 2005) Length of lease terms (Lndholm and Gbler, 2005) Number of workstatons per employee (nformaton workers) (Lndholm and Gbler, 2005) Effectve utlsaton of space (e.g. amount of teamwork space, vacancy rates, tme wasted wth nterruptons due to open space layout) Square feet per employee (Arthur Andersen, 1993, Nourse, 1994, Massheder and Fnch, 1998, Bder, 2003, Lndholm and Gbler, 2005) Total square feet employees housed (GSA, 2006) Area managed/employee (BCBC, 2003) CRE unt qualty Lndholm and Gbler (2005) mentoned the CRE unt qualty as nnovatve performance measure that ncludes: Tme used n project versus tme budgeted for the project Money spent on project versus money budgeted on the project Amount of advce gven to other busness unts The sutablty of premses and functonal envronment also relates to other performance measures such as whether the equpment provded meets the busness needs and standards of cleanng (Hnks and McNay, 1999). In accommodaton usage, the square feet per employee s more approprate than the number of workstatons per employee, gven that the dfferng space and type of workstatons are requred by dfferent groups of employees throughout the company. The effectve utlsaton of space (Hnks and McNay, 1999) s sutable for descrbng how the accommodaton s used and measured such as the amount of teamwork space, vacancy rates, percentage of space occuped, gross floor area per usable floor area and space supply and demand ratos. To sum up, Table 11 shows the most frequently-mentoned performance measures on organsatonal development. 68 Performance measurement of workplace change

67 Organsatonal development Performance measures Qualty of facltes Physcal condton of facltes (Lndholm and Gbler, 2005) Sutablty of premses and functonal envronment (Hnks and McNay, 1999) Number of buldng qualty audts (Lndholm and Gbler, 2005) Accommodaton usage Square feet per employee (Arthur Andersen, 1993, Nourse, 1994, Massheder and Fnch, 1998, Bder, 2003, Lndholm & Gbler, 2005) Effectve utlsaton of space (e.g. amount of teamwork space, vacancy rates, tme wasted wth nterruptons due to open space layout) CRE unt qualty Tme used n project versus tme budgeted for the project (Lndholm and Gbler, 2005) Money spent on a project versus the money budgeted for the project (Lndholm and Gbler, 2005) Amount of advce gven to other busness unts (Lndholm and Gbler, 2005) Table 11 Performance measures of organsatonal development 4 Productvty Productvty s a frequently-mentoned area regardng the added value of CREM (De Jonge, 1996, Bradley, 2002, Lndholm, 2008, Van Meel et al., 2010, Den Hejer, 2011, Jensen et al., 2012a, Van der Zwart and Van der Voordt, 2012). In fact, mprovng productvty and decreasng costs turned out to be the areas most dscussed concernng addng value by CREM (Jensen, et al., 2012). Regardng the workplace, the term productvty refers to the fne balance between the total occupancy costs of a workplace and ts contrbuton to employee performance (Van Meel et al., 2010). Productvty concerns mprovng staff output at less of a cost (Van Meel et al., 2010). Therefore, the work envronment s an area closely related to perceved productvty support such as the move to the new workplace or an alternatve workplace arrangement (Kaczmarczyk and Morrs, 2002, GSA, 2006, Jensen, et al., 2012a). Employee productvty Van Meel et al. (2010) state that the relatonshp between the work envronment and productvty s elusve and complex. It s a rather ndstnct construct that s dffcult to defne n most offce-based organsatons. However, Van der Voordt (2003) mentoned that the dfference n productvty among the dfferent work envronments can be measured by: Actual labour productvty Perceved productvty Amount of tme spent on dfferent actvtes Absenteesm due to llness Indrect ndcators (see also Table 17) Absentee rates by buldng s a measure whch relates to workplace performance and whch reflects the qualty of the buldng, for nstance, whether t should be mproved or developed further. Whle many authors mentoned absenteesm as a measure 69 Performance measurement

68 of productvty (Hagarty and Wlson, 2002, Kaczmarczyk and Morrs, 2002, BCBC, 2003, RPS, 2003, van der Voordt, 2004), self-assessment of productvty has been used most frequently to assess productvty (Oseland, 1999). Despte the many ways to measure productvty, some research shows that self-assessment s the most approprate measure of offce productvty (Oseland, 1999, Van der Voordt, 2003). Perceved productvty n the workplace can be measured by the percentage of people who perceve the workng envronment as havng a postve nfluence on productvty, n team or ndvdually (Van der Voordt, 2003, Lndholm and Gbler, 2005). There are other factors whch nfluence the perceved labour productvty such as the dstance that employees must commute (Duckworth, 1993). In ther study, Lndholm and Gbler (2005) classfed employees opnons on how well the workplace supports ther productvty as an nnovatve performance measure. Another ndrect measurement of employee productvty ncludes (Offce of Real Property, 1999): Turnover retenton of employees, cost of retanng. Tme-trackng devces log books, overtme, project hours. Customer demand for products or servces. Observed downtme for modfcatons, complants, nterruptons. Churn costs employee downtme, space move costs, tme to execute a move and get a person back up-and-runnng (phone, computer, etc.). Strategc nvolvement of corporate real estate Haynes (2007, p.460) mentoned two contrastng approaches of offce productvty. The frst approach adopts a control paradgm that ams to acheve greater effcency. Ths approach focuses on reductons n ether cost or space provson. The second approach adopts an enablng paradgm that ams to acheve greater effectveness. Ths approach centres on occupers beng provded wth an offce envronment that enables them to ncrease ther productvty. The enablng paradgm proposes a lnk between work processes, the work envronment and ncreased offce productvty. The latter approach requres the understandng of work envronment that ntegrates human resource management, work psychology and facltes management. Lubeneck and Desrocher (2003) mentoned the strategc nvolvement of corporate real estate that can be consdered as ndrect measures relatng to productvty. These measures are: CRE nvolved n corporate strategc plannng (Lubeneck and Desrocher, 2003) CRE ntegrated wth HR strateges (Lubeneck and Desrocher, 2003) CRE actvely nvolved n frm-wde ntatves such as specal asset use, consoldatons, or shared servces opportuntes (Lubeneck and Desrocher, 2003) Table 12 shows the most frequently-mentoned performance measures on productvty from several authors. 70 Performance measurement of workplace change

69 Productvty Performance measures Employee productvty Productvty (% of perceved productvty support from workng envronment) (Carder, 1995, van der Voordt, 2004, Lndholm & Gbler, 2005) Absentee rates by buldngs (Massheder and Fnch, 1998) Strategc Involvement CRE nvolved n corporate strategc plannng (Lubeneck and Desrocher, 2003) CRE ntegrated wth HR strateges (Lubeneck and Desrocher, 2003) CRE actvely nvolved n frm-wde ntatves such as specal asset use, consoldatons, or shared servces opportuntes (Lubeneck and Desrocher, 2003) Table 12 Performance measures of productvty 5 Envronmental responsblty Pressure for mproved envronmental performance s lkely to ncrease from several sectors ncludng the government, publc and busness (Katskaks, 2006). Government nfluences on property are becomng more evdent such as the envronmental mpact assessment (EIA) that s now n force n many countres. The EIA s an assessment of the possble postve or negatve mpact that a proposed project may have on the envronment, consstng of a combnaton of the envronmental, socal and economc aspects. EIA was mplemented n Dutch legslaton on 1 September The categores of projects that requre an EIA are summarsed n Dutch legslaton, the Envronmental Act (Wkpeda, 2013d). The SANE study (Sustanable Accommodaton for the New Economy), a major European Commsson ntatve, focuses on the creaton of sustanable, collaboratve workplaces for knowledge workers across Europe that results n makng less energy footprnts from buldng blocks. Influenced by the government, polcy frameworks amed at sustanable development are lkely to nfluence everythng from constructon materals, to energy use, to travellng to and from work (Harrs, 2006). Pre-fabrcaton and sustanable constructon wll become more commonplace and the desgn of buldngs could well be turnng nwards. (Katskaks, 2006). The envronmental effcency of buldngs can be measured by usng an exstng green buldng ndcator system such as Leadershp n Energy and Envronmental Desgn (LEED) and Buldng Research Establshment Envronmental Assessment Method (BREEAM). LEED provdes buldng owners and operators wth a concse framework for dentfyng and mplementng practcal and measurable green buldng desgn, constructon, operatons and mantenance solutons (Wkpeda, 2013a). BREEAM sets the standard for best practce n sustanable buldng desgn, constructon and operaton whch s amed at mnmsng the envronmental mpact by ensurng that sustanablty best practces are n place, whle at the same tme, also lowerng an organsaton s costs through energy effcency (BREEAM, 2012). 71 Performance measurement

70 Duffy (1997) gave hs vew on the dfferences of offce buldng desgn between the North Amercan tradton and the northern European countres that have dfferent focuses. Whle the North Amercan offce buldngs express commercal success and acheve hgher densty, the northern European offces are more concerned wth the needs of the employees wth a focus on havng access to daylght and natural ventlaton, whch also produces less envronmental mpacts. Drvers n the changng pattern of work, organsatonal structure, technology, sustanablty, flexblty and personal well-beng are creatng a demand to whch organsatons need to respond. To meet the plannng demands for more sustanable envronments, the multfunctonal use and adaptablty of the space and mxed-use envronment provde greater flexblty n regard to the offce space. Havng a flexble way of workng, whether from home or other locatons, contrbutes to sustanablty by reducng energy consumpton from transportaton. The re-use of buldngs also helps to acheve a sustanablty objectve by avodng new constructon that n turn mght consume a large amount of non-renewable resources. Resource use In terms of resource use, the energy consumpton of a buldng s a drect way to evaluate energy performance. Related terms are energy use/square meters, energy ntensty and number of energy audts. To acheve the sustanablty objectve, the organsaton may have to concern tself wth several ssues ncludng the transportrelated sustanablty effects, envronmental mpacts on land and water, etc. Envronmental mpact The concern about envronmental mpacts s consdered as an area n the added value of CREM (Bradley, 2002, Van Meel, et al., 2010, Den Hejer, 2011, Jensen, et al., 2012a). Offce buldngs have a large mpact on the envronment as they requre a great deal of raw materals to buld and even more natural resources to run (Van Meel, et al., 2010). The approach to reduce envronmental mpacts helps to stablze an organsaton s resources and to cope wth the nterests and needs of the dfferent stakeholders. There s an ncreasng awareness and actve partcpaton by busness professonals n the development of Corporate Socal Responsblty (CSR). Organsatons are ncreasngly becomng more nvolved n green ntatves by developng sustanable approaches and practces, adaptng products and servces to the low-carbon economy and nnovatng n all areas of ther busness (Garrett, 2012). Key benefts from sustanablty nclude ncreased energy effcency and property values (Reed and Wlknson, 2005). Smth and Ptt (2009) also dentfed the added value of sustanable workplaces to mprovng employee health and well-beng and ncreasng productvty. CSR s another area, where FM has a great potental to add value (Jensen, et al., 2012). In fact, facltes managers can expect to be asked to provde nformaton for CSR, by 72 Performance measurement of workplace change

71 drawng up reports whch nclude envronmental performance. A typcal lst of aspect regardng envronmental performance covers sx areas (Arny, 2012): 1 Emssons (greenhouse gas, emssons that affect health) 2 Envronmental mpacts on land 3 Envronmental mpacts on water 4 Resource use 5 Waste (waste management, envronmental mpacts of waste) 6 Supply chan (purchasng, resource use n the supply chan, envronmental mpacts n the supply chan) In terms of the corporate real estate management, contamnated stes management and the amount of garbage are performance measures that the organsaton should be concerned about and whch support the sustanable development objectves. To sum up, Table 13 shows the most frequently-mentoned performance measures on envronmental responsblty from several authors. Envronmental responsblty Performance measures Resource use Energy consumpton of buldng (Hnks and McNay, 1999, Lndholm and Gbler, 2005) Number of energy audts (Lndholm and Gbler, 2005) Waste Contamnated stes management (BCBC, 2003) Amount of garbage (Lndholm and Gbler, 2005) Table 13 Performance measures of envronmental responsblty 6 Cost effcency Frms are confronted wth a number of choces once they have recognzed that there s a need for workplace change. The organsatons can buld or purchase accommodaton, lease space for long or short perods wth or wthout the ncluson of servces, or they can use nstant offce solutons provded by servce offce operators (Gbson, 2000). The costs of real estate are the second or thrd largest cost factor n most companes (Stoy and Kytza, 2006). Brll et al. (2001) dentfed the total costs of the workplace whch consst of three man areas: buldng, technology and operatons. Gbson (2000) mentoned that the costs of an offce portfolo for an occuper s a combnaton of real estate plus workplace nfrastructure supported by servces (FM and busness support). Whereas the fnancal health perspectve focuses on the overall fnancal aspect of organsatons, cost effcency focuses on cost reducton from real estate. Fnancal health, wth regard to real estate, s more mportant to those organsatons whch are nvolved n real estate-related busness or organsatons wth a large portfolo. On the other hand, cost effcency affects most organsatons at all levels (.e. small and large corporatons). 73 Performance measurement

72 The occupancy costs play an mmnent role n assessng the total workplace cost. The occupaton costs (rent, rates) account for about half of the total occupancy costs. Other elements requred to create a workng envronment are lkely to be controlled by a number of departments or groups wthn a large corporaton (Gbson, 2000). The estmated breakdown of average total occupancy costs consst of (Gbson, 2000): Occupaton (rent, rates) (49%) Support (18%) Adaptaton (15%) Operaton (15%) Management (3%) The cost classfcaton from the standards of The Netherlands Standardsaton Insttute (NEN) conssts of: NEN 2631, nvestment costs (land costs, constructon costs, fttng-out costs and addtonal costs) NEN 2632, operatng costs (fxed costs, energy costs, mantenance costs, admnstratve costs and specfc operatng costs) The costs of offce space can be classfed to nclude occupancy costs and other operaton-specfc, producton-related personnel and materal costs (Stoy and Kytza, 2006). Two mportant tems that nclude the cost of the workplace are: 1) occupancy costs and 2) operatng costs (buldng and FM). Occupancy costs: Occupancy Cost per square foot (Arthur Andersen, 1993, Nourse 1994, Bon et al. 1994, Massheder and Fnch, 1998, Bder 2003) Occupancy cost per employee (Arthur Andersen, 1993, Massheder and Fnch, 1998, Bder, 2003) Occupancy cost as a percentage of the total operatng expense (Arthur Andersen, 1993, Bder, 2003) Occupancy cost as a percentage of operatng revenue by buldng or busness unt (Massheder and Fnch, 1998) Occupancy cost per dollar or per unt of revenue (Nourse, 1994) Occupancy cost per seat (Bder, 2003) Occupancy cost per customer (Bon et al., 1994) Actual extra occupancy cost versus predcted cost (Massheder and Fnch, 1998) Occupancy cost per sales or turnover (Lndholm and Gbler, 2005) Occupancy cost per busness unt (Lndholm and Gbler, 2005) Buldng Occupancy Charge (BOC) savngs to customers (BCBC, 2003) 74 Performance measurement of workplace change

73 Operatng costs (buldng and FM): Total Annual Buldng Occupancy Charges (BCBC, 2003) Cost of servces and resources (cleanng, caterng, furnshng, offce artcles) (NEN 2748) External facltes costs (external accommodaton, layout of home workplace, transport) (NEN 2748) Faclty management costs (envronment, workng condtons, qualty) (NEN 2748) Operaton cost/square meters (Statsbygg, 2003) Mantenance cost/square meters (Statsbygg, 2003) Dfferent costs per square metre, such as energy consumpton; operatons and mantenance cost; and leasng costs (NPB, 2003) Cost of leased vs. owned nventory (Hagarty and Wlson, 2002) Total project cost n relaton to budget, the exceedng of total property management budget and admnstraton budget (Statsbygg, 2003) Number of moves per year Cost of underutlsed space (Lndholm and Gbler, 2005) Workplace standards n use (Lndholm and Gbler, 2005) Cost of acqustons versus returns (Massheder and Fnch, 1998) Despte the numerous measures regardng occupancy costs, the total occupancy costs per employee provdes the most accurate pcture of overall portfolo performance (Lubeneck and Desrocher, 2003). In addton, the organsaton should take the rato of expenses to revenue nto consderaton. A lower rato of cost to revenue reflects the real estate s greater contrbuton to the company s proft margn. On the other hand, the corporate real estate personnel are accountable for the management of the buldng costs to budget. Ths s done n the same manner as a revenue centre whch s responsble for revenue aganst budget as the CRE unt may be requred to examne the total operatng expendtures versus the budget. To sum up, Table 14 shows the most frequently-mentoned performance measures on cost effcency from several authors. Cost effcency Performance measures Occupancy costs Total occupancy cost per employee (Arthur Andersen, 1993; Massheder and Fnch, 1998; Bder, 2003) Occupancy cost as a % of total operatng expense (Arthur Andersen, 1993; Bder, 2003) Occupancy cost as a % of operatng revenue by buldng or busness unt (Massheder and Fnch, 1998) Operatng costs (buldng and FM) Table 14 Performance measures of cost ef fcency Total operatng expendtures versus budget ncludng: general admnstraton; captal expendtures; moves, adds, rearrangements; faclty/propertes servces; other busness servces (mal, and copy centres, rsk, and/or securty) (Hnks and Mcnay, 1999; Lubeneck and Desrocher, 2003) Faclty management costs (envronment, workng condtons, qualty) (NEN 2748) 75 Performance measurement

74 2.8.2 The proposed lst of performance measures accordng to the lterature Table 15 ncludes the most frequently-mentoned corporate real estate performance measures taken from the sx categores n the lterature that were prevously descrbed n Secton Ths shorter lst of performance measures wth regard to real estate and workplace change wll be used as the proposed lst of corporate real estate performance measures n order to compare them wth the performance measurement data from the case studes. Smlartes and dssmlartes from the comparson could lead to the selecton of corporate real estate performance measures that are algned wth the organsatonal objectves. Stakeholder percepton Employee satsfacton wth work envronment Employee satsfacton wth CRE servces Customer satsfacton wth facltes Communty and well-beng Fnancal health Value of property, plant and equpment Performance measures Qualty of ndoor envronment: lghtnng, ar condtonng, temperature, nose level, etc. Provson of safe envronment Locaton success factors (access to employees, amount of local amentes) Rato of offce space to common areas Provson of amentes Amount of workplace reforms and space modfcatons Employee satsfacton wth professonal sklls Employee satsfacton wth nformaton sharng Survey ratng (e.g. customer/tenant survey of the facltes, buldng, property management and CRE servces) Number of complants Average call frequency and cost per square foot help desk Locaton success factors (proxmty to requred transportaton, access to customers, dstance to other stes and busnesses) The contrbuton to publc polcy and socetal prortes Busness Return on real estate assets Real estate return on nvestment Real estate return on equty Sales or revenue per square foot (metre) Space (square feet or metres) per unt (dollar) of revenue Return on property management >>> 76 Performance measurement of workplace change

75 Organsatonal development Qualty of facltes Accommodaton usage CRE unt qualty Productvty Employee productvty Strategc Involvement Envronmental responsblty Resource use Waste Cost effcency Occupancy costs Operatng costs (buldng and FM) Performance measures Physcal condton of facltes Sutablty of premses and functonal envronment Number of buldng qualty audts Square feet per employee Effectve utlsaton of space (e.g. amount of teamwork space, vacancy rates, tme wasted wth nterruptons due to open space layout) Tme used n project versus tme budgeted for the project Money spent on project versus money budgeted on the project Amount of advce gven to other busness unts Productvty (percentage of perceved productvty support from workng envronment) Absentee rates by buldngs CRE nvolved n corporate strategc plannng CRE ntegrated wth HR strateges CRE actvely nvolved n frm-wde ntatves such as specal asset use, consoldatons, or shared servces opportuntes Energy consumpton Number of energy audts and amount of garbage Contamnated stes management Amount of garbage Total occupancy cost per employee Occupancy cost as a percentage of total operatng expense Occupancy cost as a percentage of operatng revenue by buldng or busness unt Total operatng expendtures versus budget ncludng: general admnstraton; captal expendtures; moves, adds, rearrangements; faclty/propertes servces; other busness servces (mal, and copy centres, rsk, and/or securty) Faclty management costs (envronment, workng condtons, qualty) Table 15 Corporate real estate performance measures accordng to the lterature 2.9 Conceptual model A number of performance measurement frameworks from the lterature have been ntroduced n order to understand the general concept of performance measurement. These frameworks nclude several varables such as organsatonal goals and objectves, corporate and real estate strateges, an organsaton s nput, process, output and outcome and stakeholder percepton. The lterature revew of performance measurement and the related varables provde a better understandng of performance measurement n dfferent perspectves. There s a need to have a conceptual model 77 Performance measurement

76 that can be used to understand the relatonshp between the varables of organsaton and corporate real estate performance measurement, and whch can also be used to select and prortse corporate real estate performance measures and KPIs. The development of a conceptual model to depct performance measurement (Fgure 17) was nfluenced by the partcular elements of conceptual frameworks from the varous authors that have been ntroduced n ths chapter. Among these frameworks, the conceptual framework for studyng the effects of real estate nterventons on organsatonal performance from De Vres (2007) and the FM value map from Jensen (2010) came to the fore. These frameworks can explan the mpact of real estate on core busness (organsatonal performance) and surroundngs. The postve and negatve effects of real estate can be traced from the mpacts of the organsaton s nput, process, output and outcome on organsatonal performance (.e. changes n productvty, proftablty, costs). The conceptual model of performance measurement was developed from the bass above. The conceptual model s amed to provde the understandng of performance measurement n dfferent perspectves (.e. organsaton and corporate real estate performance) and n the dfferent processes of an organsatonal system (.e. nput, process, output, outcome). The conceptual model shows how an organsaton and real estate performance measurement can be appled to algn wth corporate and real estate strateges. Accordng to the model, performance measurement can be appled to montor actons and resources whch have been used to support these actons n order to acheve the set targets. Performance measurement can be dscussed n connecton to the organsatonal context, operatons, resources, mpacts and stakeholders. The second purpose s to use the conceptual model for the prortsaton of corporate real estate performance measures and KPIs that wll be further dscussed n Chapter 10. The thrd purpose would be to use the conceptual model n order to develop an ntegrated model that can be used to explan the connectons between performance measurement, workplace change, the apprasal of change and cultural background. 78 Performance measurement of workplace change

77 Corporate strateges Msson & vson Customer & markets Products & servces Dstnctve competences Value & culture Organsatonal performance measurement Organsaton Objectve Structure Staff characterstcs Organsatonal culture Natonal culture Input HR, Technology, Captal, ICT, RE Process Work process Output Product & servce Outcome Impacts Stakeholder Percepton & Assessment Real estate strateges Cost reducton Flexblty Promote HR objectves Real estate value creaton of busness, etc. Corporate real estate performance measurement Context: legslaton, economc stuaton, labour market Fgure 17 Conceptual model of performance measurement Descrpton of varables The conceptual model descrbes the varables regardng the nput, process, output and outcome n connecton to corporate and real estate performance measurement. Performance measurement s an mportant ad to make judgments and to make decsons. The level of performance a busness can attan s reflected n the effcency and effectveness of the actons t undertakes and the resources t uses to support these actvtes. Performance measurement focuses on the means and results (ends) or processes and outcomes. Corporate real estate performance measurement ams to comprehend the mpact of management decson-makng on the success and falure that s seen n the real estate portfolo and suggest possble mprovements. Ths PhD research apples sx perspectves of busness performance from Bradley (2002) n order to connect real estate performance to organsatonal performance. These sx perspectves of busness performance nclude: stakeholder percepton, fnancal health, organsatonal development, productvty, envronmental responsblty and cost effcency. Corporate strateges are descrbed as the total pattern of the decsons and actons that poston the organsaton n ts envronment and that are ntended to acheve ts long-term goals (Slack et al., 2001). Organsatons descrbe the key elements of ther busness along the dmensons of corporate strateges whch nclude msson & vson, customer & markets, products & servces, dstnctve competences and values & culture (Osgood Jr, 2004). Real estate strateges refer to the strateges that encompass how real estate decsons can be guded, for example, cost reducton, flexblty, promote marketng message, promote human resource objectves, etc. 79 Performance measurement

78 An organsaton ncludes the varables n objectve, structure, staff characterstcs, and organsatonal and natonal culture that mpact on nput varables ncludng human resource, technology, captal, ICT and real estate. In terms of the workplace, a process s descrbed as work processes that are carred out n an offce. The output s defned as products, servces or fnancal results that can have varous mpacts on dfferent stakeholders perspectves. Context ncludes varables n legslaton, economc stuaton and labour market. These varables can nfluence the way organsatons operate ther resources Conclusons Ths chapter traced a number of frameworks that lnk both organsatonal performance and the performance of real estate and buldng-related facltes to general concepts such as qualty, effectveness and effcency (Van Ree, 2002, Snk and Tuttle, 1989, Lynch and Cross, 1991) and addng value (De Vres et al., 2008, Den Hejer, 2011). Many authors menton the sgnfcance of a wde set of performance crtera, ncludng sustanablty (Van Ree, 2002, Den Hejer, 2011), creatvty (Van Ree, 2002) and stakeholder satsfacton (Kaplan and Norton, 1992, Neely et al., 2001). In order to reduce the complexty of performance measurement, the wde range of KPIs needs to be arranged n a more practcable way. In ths PhD dssertaton, the prncples of the Kaplan and Norton s strategy map (2004) representng cause-and-effect relatonshp of an organsaton s strategy n four balanced scorecard perspectves proved to be helpful n clearly clusterng KPIs n connecton to the organsatonal objectves. In addton, a huge number of corporate real estate performance measures and KPIs have been clustered n the sx perspectves of busness performance accordng to Bradley (2002). These corporate real estate performance measures that compose the sx perspectves can be used as a reference to compare them wth performance measures and KPIs from lterature and what has been found n practce. The overvew of KPIs can be useful to organsatons n dfferent contexts and on dfferent levels: operatonal, tactcal and strategc. The current lst goes beyond cost effcency and connects organsatons strategc objectves to performance management and as such t also lnks FM and CREM to the core busness. The KPI lst can provde performance measurement nformaton that affects a postve change n organsatonal culture, systems and process. The shft from performance measurement to performance management can be acheved by helpng to set the agreed-upon performance goals, and by allocatng and prortsng an organsaton s resources. Ths can be done by gvng prorty to the performance measures that can help the organsaton to focus on partcular actons and resources. The results obtaned from ths process can be used to mprove the organsaton s performance measurement system. 80 Performance measurement of workplace change

79 3 Workplace change: drvng forces, types of changes and the mpact on organsatons and employees 3.1 Introducton An organsaton s goals and dverse drvers can nfluence workplace change, whch n turn, affects the productvty of ts employees and ther job satsfacton. Changes n organsatonal structure, work patterns, technologcal developments and the need for a culture change provde the man reasons for why the organsatons decde to change ther workplaces (Rratanaphong, 2006). If the workplace s classfed by takng dfferent perspectves, a better understandng of ts characterstcs can be obtaned. How an envronment s bult expresses the brand, reduces envronmental mpact, stmulates creatvty and supports culture change. These are all mportant aspects to take nto consderaton when employng real estate strategy. The mpact of workplace change on employees (.e. employee satsfacton, perceved productvty support and prortsed aspects of the work envronment) are descrbed n ths chapter. 3.2 Drvng forces Generally speakng, when an organsaton decdes to change ts workplace, the most common reason for ths s the need to reduce costs, to promote effcency and to mprove performance. In addton, drvers to change the workplace such as a changng work pattern and organsatonal structure can nfluence workplace change and affect how ths change s receved. Cost reducton One of the most mportant factors drvng change n the workplace s cost reducton (Becker, 2004, Van Meel et al., 2010). Cost reducton s a sound economc reason for changng ways of workng (e.g. desk sharng or hotelng). Whereas organsatons are forced to reduce the costs of property and occupancy due to ferce busness 81 Workplace change: drvng forces, types of changes and the mpact on organsatons and employees

80 competton, half of the offce s often unoccuped (Van Meel et al., 2010). Nowadays, work processes are more flexble, so that work actvtes can be carred out n dfferent spaces and tmes. To acheve effcency, organsatons need to arrange ther workplaces wth greater flexblty n order to support ther work processes. Changng work pattern McGregor (2000) mentoned that n the future unpredctable work patterns wll be the norm rather than the excepton. Onlne workng wll become more and more commonplace, and the pattern of a workng day wll vary dependng on the work processes of the ndvdual. Offce space wll be used more ntensvely, wth less focus beng placed on the long-term ownershp of ndvdual workplaces. There wll be more flexble and shorter-term ownershp of offce space for varous groups of users (Duffy, 1997). These statements are n keepng wth the current stuaton, n whch organsatons are confrontng tme-based competton and they have to elmnate the tme wasted n the offce as well as reduce wasted space. Knowledge workers are beng offered the freedom to alter ther work patterns by choosng work envronment optons regardng how, when and where to work. Permanent employees are engagng wth external partners and a contngent workforce as much as they do wth ther colleagues (Mcunas, 2013). Organsatonal structure Varous trends n organsatonal structure that affect offce work nclude the ncrease of cross functonal team workng, fewer herarchcal unts and more focus on customers needs (Rratanaphong, 2006). The organsaton s emergng wth a flatter structure, responsblty s beng decentralsed and a greater autonomy s beng awarded to operatng unts (Alexander, 1994). Flat management organsatons are empowerng employees to manage ther work wth greater autonomy and to choose how ther tme may best be spent (PSFK, 2013). Many frms prefer to use the management term empowerment n ther busness process. Ths term can be defned as hghperformance nvolvement n whch companes break down nto smaller unts, and whch provdes ther employees wth the satsfacton of ownershp and responsblty. The mplcaton s that offce desgn and offce locaton wll be prompted by hghly opnonated, ntellgent, dspersed, and dverse users, leadng to an ncreasng demand for smaller and less centralsed offces (Duffy, 1997, p.51). Accordngly, an organsatonal structure whch ncludes several geographcally dspersed locatons can also provde a workforce that s more closely connected to ts customers. In addton, ths organsatonal flattenng s placng ncreased demands on knowledge workers tme and t s challengng the notons of work-lfe balance (Mcunas, 2013). What s partcularly worth notng s that senor management must provde condtons n whch facltes can be effectvely managed and that they have the ultmate responsblty for generatng resources that meet the organsaton s needs so as to support ts busness objectves (Alexander, 1994, p.7). 82 Performance measurement of workplace change

81 Technology The nnovaton of nformaton and communcaton technology s respondng to the demands made by the compettve world of busness and the globalsaton of trade. Such technologcal developments have helped the nternatonal commodty trade and money markets to mprove the speed and effcency of the servces they offer to the nternatonal tradng communty, whch also helps to facltate the growth of world trade (Cole, 1997). Dgtal technology has made t possble to create and mantan relatonshps and to accomplsh tasks from a dstance that were prevously only possble to realze face-to-face n tradtonal locatons (Joroff, 2002). It s estmated that by 2020 there wll be over 50 bllon devces connected to the nternet (Csco, 2011). Trends n technology that ntegrate voce, data, and mages and whch engage n networks and the web, are becomng ncreasngly mportant to organsatons. Organsatons are currently expermentng wth new workplace strateges whch explot the new nformaton technologes to meet the goals of reducng overhead costs and to better serve ther customers needs (Rratanaphong, 2006). Organsatonal culture It s dffcult to understand the mpact a workplace has on an organsaton wthout examnng the role of an organsatonal culture n the desgn and use of the workplace. Becker and Steele (1995) lnk organsatonal culture to a number of aspects, for example, the expectatons and assumptons of how good members should behave, the common language and understandng about the meanng of words and events, major polces, symbolc meanngs, basc assumptons about the way the world works, and commonly held values about what s worth dong and how t should be done. The corporate culture embodes the organsaton s assumptons regardng how space s structured and what the relatons between staff and management are lke. Generally, the amount of space s allocated to ndvduals or groups accordng to the exstng herarchcal structure. However, recent research has shown that there s a shft n employees atttudes towards expectatons for hgh flexblty of where, when, and how to work (Intel labs, 2012). In the flexble workplace, the workng spaces are arranged from work processes rather than postons or status. Varous culture types and dmensons and ther mpact on workplace wll be descrbed n more detal n Chapter Workplace change: drvng forces, types of changes and the mpact on organsatons and employees

82 3.3 Workplace typology Varous terms refer to workplace change such as workplace redesgn, re-engneerng, revtalzaton, renovaton and nnovaton of the physcal workng envronment. There s a choce whch can be made regardng whch knd of workplace change reles on whch varables wthn an organsatonal context. Dfferent types of workplace reflect dfferent work processes. The followng offce taxonomy descrbes a workplace from varous perspectves. Duffy (1997) categorsed work processes by usng two varables: nteracton and autonomy, and proposed the terms as: Group processes Den (hgh nteracton, low autonomy) Indvdual processes Hve (low nteracton, low autonomy) Concentrated study Cell (low nteracton, hgh autonomy) Transactonal knowledge Club (hgh nteracton, hgh autonomy) Interacton ncreases Group Processes DEN Transactonal Knowledge CLUB Indvdual Processes HIVE Concentrated Study CELL Autonomy ncreases Fgure 18 Fgure 18a (left mage) Typology of of fce work based on two organsaton varables (Duffy, 1997). Fgure 18b (rght mage) Four types of of fce work (Duffy, 1997). Ths classfcaton by Duffy (1997) descrbes four organsatonal types, patterns of work, space occupancy, offce layout and the use of nformaton technology. Accordng to Duffy, no one organsaton can be categorsed as beng completely a hve, cell, den or club, but most are actually combnatons. He further stated that the sum of all offces at any one tme must consst of a proporton of all four types. The ntegrated workplace s the result of a collaboratve, multdscplnary approach to developng and provdng workspace, untng the organzaton s real property plan wth the organsaton s strategc busness goals. It responds to the people and work practces of each ndvdual and group, and provdes them wth the physcal space and tools needed for ther success (GSA, 1999). Apart from the defnton of the ntegrated 84 Performance measurement of workplace change

83 workplace by the GSA, Becker and Joroff (2000) ntroduced the four perspectves of Integrated Workplace Strategy as follows: 1 The nature of physcal settngs (where the work s conducted) 2 The nformaton technologes used n the performance of work (how data, opnons, and deas are accessed, processed, and communcated) 3 The nature of work patterns and processes (when and how tasks must be performed to acheve busness objectves) 4 Organsatonal culture and management (the formal and nformal values, expectatons, polces, and behavours that nfluence all the other factors) Another taxonomy of offce types has been developed at the Delft Unversty of Technology (Vos et al., 1999). Ths framework has taken three dmensons nto account: place, space and use. Place (locaton) refers to the central offce or telework (satellte offce, busness centre, guest offce, home offce and nstant offce) Space refers to the cellular offce, group offce, open plan offce and comb offce Use s categorsed as personal offce, shared offce or non-terrtoral offce. Fgure 19 Of fce typologes (Vos et al., 1999) Nutt (2000) classfed the way n whch work and work communcaton can be organsed n space and tme: Same place - Same tme refers to a face-to-face workplace or a tradtonal offce Same place - Dfferent tme refers to touch down or drop-n offce Dfferent place - Same tme refers to a satellte offce or vdeo conferencng support Dfferent place - Dfferent tme refers to the vrtual offce 85 Workplace change: drvng forces, types of changes and the mpact on organsatons and employees

84 Non Concdent Workng Dfferent Place Same Tme Dfferent Place Dfferent Tme Space Concdent Workng Same Place Same Tme Same Place Dfferent Tme Concdent Workng Tme Non Concdent Workng Fgure 20 Work organsaton n space and tme (Nutt, 2000) Nutt further stated that there are three key dlemmas assocated wth these four domans of work. The frst concerns an organsaton s choce of fndng an approprate mx of the four workng domans to support the organsaton s objectves and the employee s needs. The second s the choce of management structure, procedure and culture. The thrd dlemma relates to the quantfcaton of the demand and supply of facltes, space and support servces (Nutt, 2000, p.75). Accordng to Frankema (2003), the workplace can be categorsed by three relatonal characterstcs (Frankema, 2003): The workplace related to accommodaton and facltes The workplace related to a work process and an organsaton and The workplace as a functon n the objectves of an organsaton The problem addressng workplace ssues may be caused by the dfferent defntons of a workplace. The approach needed to tackle these ssues would be to have a holstc vew of the workplace and workplace-related ssues. When consderng the workplace desgn, t should not be lmted to the physcal aspects of the workplace, but t should extend to nclude the busness objectves and the organsaton s characterstcs. For example, the mplementaton of a workplace concept should be n algnment wth organsatonal characterstcs such as objectves, drvers, work processes, staff characterstcs, management styles and culture. 86 Performance measurement of workplace change

85 3.4 Current trends n workplace desgn and management In terms of workplace desgn, alongsde wth the functonal purpose of supportng occupants performance, the workplace has an mportant role to stmulate creatvty. An envronment whch encourages a team to buld trust and to play freely s an essental ngredent for nnovaton (Grove et al., 2010). Workplaces that are appealng to our sensory aesthetcs nspre feelngs of passon for those who work there. To establsh an effectve offce concept, the underlyng objectves should be clear. The followng objectves are often assocated wth new offce concepts. Express the brand Brandng s about creatng a partcular mage or percepton of the organsaton and ts products or servces among customers or other strategc stakeholders. The study conducted by Levens et al. (2007) shows the mportance for organsatons (employers) to mantan a generally consstent mage among relevant stakeholder groups,.e. employees and applcants. Physcal presence conveys and renforces organsatonal messages contnually, wthout requrng any effort (Becker, 2004). The physcal workng envronment can be used to convey a partcular message or dentty wth the ncorporaton of brand vsuals (logos, slogans and company colours) as seen n the cases of Nke, LEGO, Google, Phlps desgn and Vrgn (Grove et al., 2010). The case of Dgtal Equpment Corporaton, a major Amercan company n the computer ndustry, whch has been mentoned by Becker (2004), s another example of the nteror desgn approach that transforms the conventonal offces usng by lazy-boy chars, wall murals, decoratve fountans, and swng sets and pato furnture and brngs brand recognton to the publc. Reduces envronmental mpact Exstng buldngs requre over 40% of the world s total fnal energy consumpton, and account for 24% of the world s CO 2 emssons. The buldng sector s one of the most cost-effectve sectors for reducng energy consumpton (Internatonal Energy Agency, 2006). In addton, by reducng the overall energy demand, and by mprovng energy effcency n buldngs, the carbon doxde (CO 2 ) emssons from the buldng sector can be sgnfcantly reduced. Envronmental ssues are becomng more and more a concern n the buldng and constructon ndustres. The energy effcent desgn concept such as the use of specal reflectve or thermal nsulaton materals n buldng envelope (.e. roof, walls, floor or wndows) can reduce heatng or coolng load. The specal technque of the tghtly sealed buldng envelope provdes the control of ventlaton and nfltraton and helps to buld thermal storage and the control of solar heat gan. The choce of offce concept n partcular the footprnt of workstatons and whether or not they are to be shared has a consderable nfluence on the envronmental mpact of an offce buldng. Small footprnts by flexble offces not only lead to space reducton, but t also requres fewer materals and less mantenance, less HVAC and less demolton work at the end of the lfe cycle (Van Meel et al., 2010). 87 Workplace change: drvng forces, types of changes and the mpact on organsatons and employees

86 Stmulate creatvty and nteracton Modern organsatons are ncreasngly perceved as ecosystems: systems n whch tact knowledge s developed and exchanged through conversatons, formal and nformal. Space that encourages effectve conversatons mght speed up organsatonal learnng (Haynes and Prce, 2004). Company performance s becomng more dependent on an organsaton s ablty to be creatve (Martens, 2008). Grove et al. (2010) have explored 38 case studes n varous themes common to the unque creatve envronments rangng from communal areas, such as ktchens and lvng room-lke places that serve as nformal gatherng spaces that encourage open and unbased nteracton between co-workers to the flexble floor plans and adaptable furnture that encourages magnatve thnkng. Lterature suggests that the physcal work envronment can have a postve effect on the creatvty of an organzaton (Worthngton, 2001, Becker, 2007). Martens (2008) has proposed a model whch can be used to poston relatons, elements and forces that determne the match of a creatve workplace and ts occupers. Creatvty can emerge from complex, dynamc nteracton processes ncludng contextual aspects such as organsatonal structure, culture as well as spatal envronments (Boden, 2004, Meusburger, 2009). Saler (2011) studed two crtera for creatvty n workplaces: spaces to stmulate encounters wth people from dfferent teams; and a balance of spaces for communcaton and concentraton. However, n hs research, only the frst crteron was successfully met. Support Culture change Makng changes n culture s one of the most dffcult manageral tasks. Offce desgn, however, can be a powerful tool or even a change agent n ths process. O Mara (1999) mentoned that the work envronment can be used to nfluence cultural change by facltatng certan behavours and mpedng others. For example, the provson of coffee bars, open starwells and recreaton areas can all promote nteracton. Another strategy that can be used to reduce the emphass on herarchy s to reduce the number of space standards and put more managers n open offces. O Mara further stated that the mportant questons to be asked are: What are behavours the organsatons want to encourage and what do they want to change? Are the changes n the offce desgn consstent wth other behavoural changes the organsatons are champonng throughout the company? However, changes n the physcal settngs that are ntended to support culture change should go hand n hand wth changes n management style and workng practces (Van Marrewjk, 2009, Van Meel et al., 2010). Workplace assessment Regardng workplace management, Becker (2004) mentoned that the problem wth a great deal of performance measurement s ts falure to effectvely defne just what the purpose of the measurement s, and who the real audence s n regard to the fndngs. The followng three key questons that can be used to test assumptons concernng what the management s lookng for n connecton to performance assessment: 88 Performance measurement of workplace change

87 1 What, exactly, s meant by organsatonal performance n the context of workspace strateges and offce desgn? 2 What s the best way to assess the value of workspace nterventon? 3 Who would lke to know about organsatonal performance, and why? Becker further stated that workspace performance assessment s dfferentatng among three knds of organsatonal performance: faclty performance (effcency measures nvolvng costs, speed, utlsaton), human performance (behavours and atttudes beleved or demonstrated to contrbute to key organsatonal goals such as speed of delvery or qualty of servce), and corporate performance (outcomes such as number of meda mentons n the natonal press and potental clents who vst whch enhances the frm s brand and strengthens ts relatonshps wth clents). The prevous study of nnovatve workplace desgn that was produced by the department of Real Estate & Housng of the Faculty of Archtecture at Delft Unversty of Technology revealed the potental costs (such as negatve effects, nvestment n labour or rsks) and benefts (such as profts, postve effects or reduced costs) of workplace nnovaton (Van der Voordt, 2003, Rratanaphong, 2009). Identfyng the costs and benefts of workplace change s essental to the management of workplace change. The Delft knowledge center, Center for People and Buldngs s contnuously requested to conduct an ex post evaluaton of workng envronments after change and also to conduct ex ante research to explore employee satsfacton ( Implementaton process Becker et al. (1994) menton that the success of alternatve offces s determned by the underlyng strategy and the method of mplementaton. The organsaton wth a process-orented approach s far more lkely to accomplsh than the cost-drven and soluton-orented organsaton. The frst approach nvolves the desre to work n a new way, whch s more dynamc, effcent and effectve than the latter that focuses on cost reducton. Each group of stakeholders has dfferent prortes. In partcular, employees at dfferent levels and wth dfferent functons respond dfferently to the dea of workplace change (Vscher, 2012). A well organsed mplementaton process helps reduce the resstance to change by engagng, nformng and nvolvng end-users and by makng a careful analyss of the actual needs of the organsaton. By settng clear and explct objectves, all of the stakeholders nvolved wll have smlar expectatons concernng the new offce concept (Van Meel et al., 2010). Feedback from employees s a requred protocol for supportng the mplementaton of workplace practces that can be appled to mprovng the facltes condtons. 89 Workplace change: drvng forces, types of changes and the mpact on organsatons and employees

88 3.5 Impact of workplace change on employees The study of a workplace and ts mpact on organsatonal performance can be dscussed from a vewpont that the workng envronment has on core busness. In ths research, the mpact of workplace change on employees focuses on three areas: employee satsfacton, perceved productvty support and prortsed aspects of the work envronment. Employee percepton of the changed envronment that algns wth real estate goals can contrbute to organsatonal objectves, whch n turn can nfluence organsatonal performance Employee satsfacton User satsfacton s recognsed as an mportant factor n the success of an organsaton and s regarded as a key performance ndcator (Flemng, 2005, Lee, 2006). Ths s based on the reason that hgher satsfacton levels mprove morale and reduce voluntary turnover (Dole and Schroeder, 2001). There are a range of areas related to employee satsfacton n regard to the work envronment. Employee satsfacton wth work envronment In the prmary process of the offce-based organsatons, the actual transformaton s establshed through the coordnated nteracton between the producton factors: people and means (Van Ree, 2002). These factors can be dscussed n terms of effcency and effectveness. Whle reducng the occupancy costs s the approach to acheve effcency, provdng a comfortable and satsfyng workng envronment s the way to acheve effectveness (Van Ree, 2002). Accommodaton can have a postve mpact on all fve performance crtera that the organsaton should meet (effectve, effcent, productve, flexble and creatve), especally by nfluencng the producton factor people (Tapscott, 1982). Employee satsfacton wth work envronment s drectly related to ther job satsfacton and ndrectly related to organsatonal commtment and turnover ntenton (Carlopo and Gardner, 1992). Employee satsfacton about the workng envronment s defned as the degree to whch the workng envronment meets the wshes and needs of the workng ndvdual (Van der Voordt, 2003). The term can relate to the work tself (content, complexty, requred knowledge and sklls, degree of autonomy); the socal workng envronment (colleagues, management style, condtons of employment such as salary, leave of absence arrangements, and career prospects); the physcal workng envronment (workplace, lghtng, daylght, vew); and other nteractons that take place regardng these aspects. 90 Performance measurement of workplace change

89 Influental factors The assessment of employee satsfacton should take nto account the possble nfluence of varous factors. Relevant ssues nclude (Van der Voordt, 2004): the extent to whch the workng envronment as a whole fts wth daly actvtes the functonalty and appeal of varous types of workplace the extent to whch the envronment stmulates communcaton the extent to whch personnel can concentrate n ther workng envronment the extent to whch the envronment fts wth psychologcal needs such as prvacy, terrtoralty, dentty, personalsaton and expresson of status accessblty of people (physcally, by phone, dgtally) flexblty and adaptablty of the envronment servces such as recepton, repro, caterng, mal delvery, helpdesk ndoor clmate (temperature, lght, sound, vew, daylght) ICT facltes furnture flng (flng method, amount of flng space, accessblty) Fgure 21 llustrates varous factors that nfluence employee satsfacton ncludng the physcal workng envronment, condtons of employment, the work tself and the nteracton that take places regardng these aspects. Work content Fllng and storage Career prospects Use of space and nteror Salary/frnge benefts Prvacy and concentraton Thermal ndoor envronment Employee satsfacton Physcal workng envronment Communcaton and accessblty Ventlaton and ar qualty Supervson Workplace faclty (performance of dutes) Audtve ndoor envronment Colleagues Indoor clmate Indvdual controllablty Permanent appontment/ employee certanty Ergonomc furnture Vsual ndoor envronment Corporate polcy Other facltes (auxlary) Satsfacton wth work Satsfacton wth workng envronment Satsfacton wth ndoor clmate Fgure 21 Factors that nfluence employee satsfacton (Sundstrøm, 1986, Vollebregt, 1996, Cleements-Croome, 2006 n Van der Voordt, 2003) 91 Workplace change: drvng forces, types of changes and the mpact on organsatons and employees

90 Accordng to Herzberg, employee satsfacton s determned by two factors: Motvators or satsfers : factors that act as a source of satsfacton and as a motvaton to perform, such as pleasant and nterestng work, assumng personal responsblty, recognton and success. Hygene factors or dssatsfers : factors that do not necessarly encourage satsfacton, but whch cause dssatsfacton f they are absent (.e. poor physcal condtons, low pay and ncompetent management) (Herzberg et al., 1959, Herzberg, 1966) Because the wde scope of satsfacton nvolves many factors, t s mportant to determne beforehand what the partes concerned would lke to know and what they want to do wth the acqured knowledge. It s also mportant to ensure that the demands and wshes of employees match those of the organsaton as a whole (Van Meel et al., 2010). In terms of workplace change, nvolvng end users drectly wthn the desgn and brefng stages would enhance ther overall perceptons of the workplace as t wll nfluence and determne (Becker, 1990): the amount and qualty of nformaton collected the nature and qualty of solutons proposed and accepted help determne employees satsfacton wth the process colour ther vew of the fnal outcome Performance measures of employee satsfacton Becker (1990) emphasses that FM performance ntegrates not only the buldng performance as a physcal product, but t also recognzed, n terms of outcomes, from cost to human satsfacton and performance, that the buldng nfluences n some way the organsaton values. From the lterature, performance measures of employee satsfacton nclude: employee satsfacton wth work envronment (Arthur Andersen, 1993, Nourse 1994, Bder, 2003, Hnks and McNay, 1999, Lndholm and Gbler, 2005) employee satsfacton wth CRE servces (Duckworth, 1993, Lubeneck and Desrocher, 2003) Employee satsfacton wth the workng envronment s related to real estate and the physcal work envronment (.e. qualty of ndoor envronment, provson of safe envronment, locaton success factors, rato of offce space to common areas, provson of amentes, amount of workplace reforms and space modfcatons). On the other hand, employee satsfacton wth CRE servces (.e. professonal sklls, nformaton sharng) dsplays the satsfacton of the socal workng envronment because t relates to the management of the facltes, rather than the work or physcal workng envronment. 92 Performance measurement of workplace change

91 Assessment technques to measure employee satsfacton Van der Voordt (2004) mentoned fve ways of measurng satsfacton wth workplace nnovaton ncludng: satsfacton wth specfc aspects; often on a fve-pont scale. For example, How do you value the followng aspects (prvacy of conversaton, desk sharng, the sze of your workplace, etc.): (very) unsatsfed - (very) satsfed; (very) bad - (very) good? the extent to whch users vew these aspects as beng mportant: lkewse, mostly on a fve-pont scale, rangng from very unmportant to very mportant. general assessment: for example, What s your overall assessment of your physcal workng envronment, expressed on a graded scale? or What s your general mpresson of the new work envronment: postve, neutral or negatve? assessng the most postve and the most negatve characterstcs of the work envronment, for example, Whch three characterstcs of your envronment have had the greatest postve/negatve nfluence on your work? makng a comparson wth the orgnal stuaton: for example, Would you rather return to the orgnal stuaton? The Center for People and Buldngs n Delft, a knowledge centre that specalzes n the relatonshp between people, workng processes and the workng envronment has developed the WODI Lght questonnare, a tool to assess employee satsfacton and perceved support of productvty through the workng envronment (Maarleveld et al., 2009). WODI Lght ncludes a short questonnare wth a focus on ssues that have turned out to be of utmost mportance to overall employee satsfacton and labour productvty. In addton, a more detaled questonnare s avalable to nvestgate employee satsfacton more n depth (Volker and Van der Voordt, 2005). Ths WODI Lght questonnare ncludes dfferent types of questons that have been structured nto themes, completed wth questons on personal characterstcs and overall questons. The themes nclude organsaton and work, the buldng, the drect work envronment, prvacy, the workplace, concentraton, communcaton, archve, IT, ndoor clmate, external servces and perceved work productvty. The thrty-nne tem questonnare makes use of a fve-pont scale that can take about 10 mnutes per respondent to complete. In addton, the actual use of the workplace s questoned, as well as the actvtes whch are performed by the employees durng the day (the percentage of ther workng tme) (Maarleveld et al., 2009). In ths PhD research, the WODI Lght tool s used to explore the mpact of workplace change on employee satsfacton. The results regardng employee satsfacton, perceved productvty support and prortsed aspects n varous components of workng envronment can be lnked to real estate objectves and the added value of CREM/FM. 93 Workplace change: drvng forces, types of changes and the mpact on organsatons and employees

92 Organsaton Content and complexty of work Sharng own deas about workng envronment Accessblty of the buldng Archtecture and appearance of the buldng Subdvson of the whole buldng Number, dversty, and functonalty of spaces Adjacency and localty of the spaces Openness and transparency of envronment Functonalty and comfort workspaces Interor desgn appearance and ambance Prvacy Opportuntes to concentrate Opportuntes to communcate Archve and storage facltes ICT and ICT support facltes Facltes and facltes management Indoor clmate Lghtng Acoustcs Facltes for remote workng Very dssatsfed Dssatsfed Neutral Satsfed Very satsfed Fgure 22 Example of fndngs usng the WODI Lght questonnare: employee satsfacton wth the work envronment (A case study of Dhanarak Asset Development, N = 85) There s also another user satsfacton survey nstrument whch has been developed by Publc Works Canada (Dllon and Vscher, 1987). It s an nstrument that can be used to measure worker comfort and satsfacton based on occupant surveys and t conssts of a standardsed questonnare. The questonnare s made up of twenty-two questons on a fve-pont scale whch are related to nne envronmental dmensons. Worker responses to the questons are grouped to generate mean ratngs for each dmenson. Dmenson Measures Questons no. Thermal comfort Temperature comfort 1-3 Ar qualty Temperature and ventlaton 4-6 Offce nose Intrusve or dsturbng nose levels 7-9 Spatal comfort Furnture arrangement Prvacy Voce prvacy and telephone prvacy (acoustc comfort); Vsual prvacy as part of workstaton layout Lghtng Amount of lghtng n the workspace (electrcal lghtng) Buldng nose control Nose generated by the buldng tself rather than by ts occupants (e.g. nose from ar system, nose from outsde the buldng) Table 16 Dmensons and measures obtaned from the user satsfacton survey (Dllon and Vscher, 1987) Performance measurement of workplace change

93 The survey yelds comparatve nformaton about envronmental condtons n dfferent areas of a buldng. The survey results are used to generate a profle of the tested buldng whch can then be compared to a normatve profle (developed by Publc Works Canada), or ratngs from a prevously occuped buldng. Ths can provde nsght nto the functonng of the buldng and help gude decsons to be made regardng further nvestgaton, buldng plannng, and mprovement (Kroner et al., 1992). Employee satsfacton as an added value of CREM Several authors have mentoned employee satsfacton as an added value of CREM. Nourse and Roulac (1993) menton employee satsfacton under the term promote human resource objectves. The attractve workplace desgn that responds to the wshes of employees can have a strong real estate strategy mpact. One of the man purposes of an offce s to attract and retan staff (Van Meel et al., 2010). Lndholm (2008) descrbed employee satsfacton as one of the seven corporate real estate strateges that can be acheved by seekng locatons convenent to employees, respondng quckly to real estate requests and provdng a pleasant workng envronment, functonal workplace and desred amentes. Den Hejer (2011) lnks campus strateges to the qualty of place, to satsfy the users and to attract and retan students, professors and other employees. Van der Zwart and Van der Voordt (2012) propose to mprove user satsfacton by steerng on a functonal, comfortable and pleasant workng envronment, takng nto account user needs and preferences. In addton, the FM value map, whch focuses on the value creaton as a part of FM, ncorporates the staff satsfacton as one of the mpacts that can add value to a core busness and surroundngs and for the beneft of all stakeholders (Jensen et al., 2012b) Perceved productvty support In order to attan vablty and contnuty of organsatons t s mportant to maxmse productvty (Van der Voordt, 2003, Vnk, 2009 n Bakker et al., 2013, p.72). There s a growng body of evdence that lnks the physcal workplace wth employee satsfacton and productvty (De Croon et al., 2005). Several authors study the relatonshp between employee satsfacton to perceved productvty support of the work envronment (Kroner et al., 1992, Lefer, 1998). However, dfferent measurement approaches are requred for dfferent aspects of productvty. 95 Workplace change: drvng forces, types of changes and the mpact on organsatons and employees

94 Perceved productvty support of work envronment The West Bend mutual study revealed a statstcally sgnfcant postve assocaton between the change n productvty and the change n overall satsfacton wth the workspace (Kroner et al., 1992). The buldng survey approach by Lefer (1998) s descrbed by the ablty that target buldng mantenance and refurbshment are related to occupant satsfacton and productvty. Hs study amed to relate users satsfacton to ther productvty as ndcated by ther perceved ablty to carry out ther work. Haynes found that workers percepton of the envronment has an mpact on ther productvty. He further concludes there s suffcent evdence to support the clam that offce comfort can affect productvty (Haynes, 2008a n Rothe et al., 2012). The concept of productvty s a multdmensonal term, the meanng of whch can vary, dependng on the context wthn whch t s used (Tangen, 2005). In scentfc lterature, productvty s defned as the relatonshp between output and nput, between results or proceeds and sacrfces (Brnkerhoff and Dressler, 1990, Aronoff and Kaplan, 1995). Productvty s defned as the relaton between output quantty (.e. correctly produced products whch fulfl ther specfcatons) and nput quantty (.e. all resources that are consumed n the transformaton process) (Tangen, 2005). Leaman and Bordass (2006) assgned the meanng of productvty as the ablty of people to enhance ther work output by ncreasng the quantty and/or qualty of the product or servce they delver. Although better or more output s the ntenton of productvty mprovement, t s also possble to focus on the same output wth fewer resources. Varous perspectves of productvty There are varous ways to defne productvty and they can be dvded nto three man categores (Ghobadan and Husband, 1990): The technologcal concept: the relatonshp between ratos of outputs to the nputs used n ts producton The engneerng concept: the relatonshp between the actual and the potental output of a process The economst concept: the effcency of resource allocaton The mprovements n productvty can bascally be caused by fve dfferent relatonshps (Msterek et al., 1992): Output ncreases faster than nput; the ncrease n nput s proportonately less than the ncrease n output (managed growth) More output from the same nput (workng smarter) More output wth a reducton n nput (the deal) Same output wth fewer nputs (greater effcency) Output decreases, but nput decreases more; the decrease n nput s proportonately greater than the decrease n nput (managed declne) 96 Performance measurement of workplace change

95 Performance measures of productvty Had (1999) proposes a holstc vew to the measurement of offce productvty. She proposes that productvty measures should be dscussed and splt nto three areas: 1 quantfable and tangble measures 2 ndrect measures,.e. staff turnover, etc. 3 organsatonal measures such as teamwork and creatvty Realsng that the measurng of productvty s of complex nature, the Offce of Real Property (1999), proposed examples of ndrect measurement of employee productvty as follows: Turnover retenton of employees, cost of retanng Absenteesm sck leave, annual leave Self-assessment of workplace effects on one s own productvty Tme-trackng devces log books, overtme, project hours Customer demand for products or servces Observed downtme for modfcatons, complants, nterruptons Anecdotal evdence on workplace sutablty people s perceptons of workplaces sutablty are stll a vable measurement Churn costs employee downtme, space move costs, tme to execute a move and have a person back up-and-runnng (phone, computer, etc.) Accordng to Clements-Croome (2006), productvty depends on four clusters of varables: 1 Personal characterstcs, such as the phase n someone s career, the technology at someone s dsposal that allows hm or her to work at home and the relatonshp between work and prvate lfe 2 Socal factors, such as relatonshps wth colleagues 3 Organsatonal characterstcs, such as the organsatonal structure or management style 4 Characterstcs of the physcal envronment, such as the ndoor clmate (temperature, lghtng and acoustcs), ar qualty (humdty, draughts and polluton) and the workplace layout However, Leaman and Bordass (2006) argue that human productvty n workplaces s fraught wth dffculty, for example, studes of ndvdual occupants often mss out the wder context of physcal and locatonal dfferences between buldngs, and how they are managed and operated. The study conducted by Leaman and Bordass (2006) lsts fve varables that affect perceved productvty: 1 comfort, ncludng personal control 2 responsveness to need, ncludng comfort, but a host of other ways n whch needs should be met effectvely 3 ventlaton type, whch also encompasses attrbutes such as sze, buldng depth and other allometrc propertes (.e. how sze affects shape, volume, servces etc.) 4 workgroups and ther layout n the space plan 5 desgn ntent and how ths s communcated to users and occupants 97 Workplace change: drvng forces, types of changes and the mpact on organsatons and employees

96 Another dffculty of productvty s that n many places t s nvsble. There are measures that can be qute easy to employ for repettve offce work. However, the basc qualtes such as speed and accuracy are much more dffcult to assess because they ntroduce a hgh degree of subjectve assessment (Cleements-Croome, 2006). Indcators of ncreased productvty nclude (NEMA, 1989): Performng tasks more accurately Performng faster wthout loss of accuracy Capablty to perform longer wthout trng Learnng more effectvely Beng more creatve Sustanng stress more effectvely Workng together more harmonously Beng more able to cope wth unforeseen crcumstances Feelng healther and so spendng more tme at work Acceptng more responsblty Respondng more postvely to requests From the lterature, performance measures of perceved productvty support nclude: employee productvty (Carder, 1995, Van der Voordt, 2004, Lndholm and Gbler, 2005, Massheder and Fnch, 1998) CRE ntegrated wth HR strateges (Lubeneck and Desrocher, 2003) Employee productvty s ncorporated wth measures n 1) the percentage of productvty support from workng envronment and 2) absentee rates by buldng. The corporate real estate ntegrated wth HR strateges (.e. the use of the workplace to attract and retan employees) s consdered as the strategc nvolvement of corporate real estate. Assessment technques to measure perceved productvty support Kroner et al. (1992) and Lefer (1998) used the nstrument developed by Publc Works Canada (Dllon and Vscher, 1987) to relate to users satsfacton wth productvty. Kroner et al. (1992) appled the productvty assessment, whch s a work-flow form, to test the hypothess that more postve changes n productvty would have more postve changes n the overall satsfacton wth the workspace. The study conducted by Lefer (1998) was ntended to relate users satsfacton to ther productvty as ndcated by ther perceved ablty to carry out ther work. On the other hand, Van der Voordt (2003) descrbes fve ways of measurng productvty and the dfference n productvty among workng envronments. 98 Performance measurement of workplace change

97 Productvty Descrpton 1. Actual labour productvty For example, the number of translated words per each employee and per unt of tme (translaton agency), the number of phone calls that have been made (call centre), concluded polces (nsurance company) per dvson, or the number of manufactured cars per FTE (automoble ndustry) 2.Perceved productvty 3.Amount of tme spent 4.Absenteesm due to llness 5.Indrect ndcators For example, by askng people to assgn a report mark to the envronment ndcatng the extent to whch t supports ther productvty, or by askng them to rate ther apprecaton usng a three or fve-pont scale. Varants nclude: What percentage of your tme s spent workng productvely? What percentage of your tme s spent workng unproductvely due to much dstracton? What percentage of your tme s spent searchng for a sutable workplace? By what percentage would your productvty ncrease f workng condtons were to change? The amount of tme ganed because fllng s carred out more effcently, staff turnover can be dealt wth more easly, or the amount of tme that s lost by havng to log on more frequently and clearng desks on a regular bass. A form of non-productvty Table 17 Productvty of the workng envronment (Van der Voordt, 2003) To what extent are people able to concentrate properly or are they actually dstracted: how quckly can employees solve a problem or supplement a lack of knowledge through nteracton wth colleagues? Self-assessment of productvty has been used n the feld for some tme and has provded useful results (Oseland, 1999). Ths statement s also true for offce nnovaton that usually measures perceved productvty (Van der Voordt, 2003). Oseland (1999) confrmed that self-assessment s the most approprate measure of offce productvty, and requested that further research be done wth a larger sample sze to renforce confdence n the self-assessment measure. The followng s an example of a measurement tool of perceved productvty from Buldng Use Studes questonnares. Although the questonnare s a subject of much comment from those who prefer objectve measures, the subjectvely perceved productvty scales outwegh the dsadvantages (Leaman and Bordass, 2006). +40% or more +30% +20% +10% or more 0-10% -20% -30% -40% or more Productvty ncreased by Productvty decreased by.. Fgure 23 Perceved productvty queston used n Buldng Use Studes surveys (Buldng Use Studes, 2005) 99 Workplace change: drvng forces, types of changes and the mpact on organsatons and employees

98 Another example taken from the Delft Unversty of Technology ams to evaluate perceved productvty of workplace nnovaton. a How would you rate your productvty? Explanaton (f any) b In your opnon, what s the effect of the current workng envronment on your productvty (output)? Explanaton (f any) Fgure 24 Example of how perceved productvty s measured (Van der Voordt, 1999) The WODI Lght tool that was prevously mentoned s also used for assessng the perceved productvty support of the work envronment n three aspects: 1) ndvdual productvty, 2) team productvty, and 3) organsaton productvty. Indvdual productvty Team productvty Organsaton productvty (%) Totally unsupportve Unsupportve Neutral Supportve Totally supportve Fgure 25 Example of fndngs usng the WODI Lght questonnare: perceved productvty support (A case study of Dhanarak Asset Development, N = 85) 100 Performance measurement of workplace change

99 3.5.3 Prortsed aspects Indvduals prefer dfferent workng envronments to perform tasks dependng on ther personal factors. Prevous studes concernng user percepton of workng envronments emphasse the sgnfcance of offce desgn wth regards to user requrements (Haynes, 2008b, Tucker and Smth, 2008, Vscher, 2008, Rothe et al., 2011). User percepton Tucker and Smth (2008) studed the mportance of user perceptons wthn an organsatonal context, and how perceptons are postvely appled wthn facltes management. The fndngs show how dfferences n user perceptons and expectatons can be effectvely appled to a strategc management context wthn FM, and they explan that perceptons n the organsatonal context are two-fold frst, va the workplace envronment and productvty, and second, va strategc FM delvery. They conclude that user perceptons need to be vewed as a holstc process wthn FM busness plannng. Ther study focuses on several key ssues and elements revolvng around the perceptons of the workplace such as: personal control prvacy nteror plantng personalsaton colour wndows and lghtng User preference Preference s defned as prorty n the rght to demand and receve satsfacton of an oblgaton (Merram-Webster, 2013). It s the thng that s preferred over another. The prortsed aspects of the work envronment, therefore, are the tems preferred over the others. User preferences are ssues that cause happness and satsfacton, but whch are not necessary for performng a task (Rothe et al., 2012). For example, workspaces next to wndows may be preferred although ths may cause no dfference n terms of the output produced from the occupers located n other areas. Types of preferences The creaton of workplaces that result n satsfed end users requres more nformaton about user preferences towards ther work envronments. Rothe et al. (2011) assess preferred work envronment attrbutes that offce users see as mportant and present dfferent user profles that are determned based on user choces and preferences regardng ther work envronments. Types of preferences concernng the work envronment can be descrbed as follows (Rothe et al., 2012): 101 Workplace change: drvng forces, types of changes and the mpact on organsatons and employees

100 servce preferences (e.g. lobby, postng and meetng room servces) vrtual and moblty preferences - vrtual envronment and the possblty to choose the type of workplace accordng to the current task) collaboraton preferences - work envronments that support teamwork mage preferences - a workspace that supports the mage mpact preferences - an ndvdual s possblty to have an mpact on hs or her work envronment sustanablty - the sustanablty characterstcs of the buldng and ts management such as energy effcency, recyclng, green cleanng, and possble green buldng certfcates commutng preference - ssues that support commutng by car and bcyclng to work In order to reach end-user satsfacton, both needs and preferences should be taken nto consderaton: Employee satsfacton refers to the degree to whch the workng envronment meets the wshes and the needs of the employees (Van der Voordt, 2004). Rothe et al. (2012) menton the dfference between needs and preferences that needs have the propertes of hygene factors: dssatsfacton ncreases f the needs are not met, whle the preferences are motvators: n order to ncrease satsfacton also preferences have to be fulflled. User needs and preferences model Rothe et al.(2012) demonstrate the relatonshp between the concepts need, preference and requrement and mplementaton (Fgure 26). Preference Increases satsfacton when met a Need Causes dssatsfacton when not met b c d Requrement and mplementaton a. Compromse: Is needed and preferred but not mplemented, causes dssatsfacton b. Blss: Preferred and mplemented, ncreases satsfacton c. Must have: Is needed, preferred and mplemented, ncreases satsfacton d. Necessty: Is needed and mplemented, does not ncrease satsfacton Fgure 26 Relatonshp between needs, preferences, and requrements and mplementaton (Rothe et al., 2012) 102 Performance measurement of workplace change

101 Based on envronment-behavour research, the needs and preferences model proposed by Vscher (1985) addresses the users demands and ncorporates them prmary assumptons: 1 users needs and preferences can be dentfed through questonng the users, or key nformants who are spokesmen for the users 2 approprate desgn and manpulaton of physcal aspects of the envronment do result n the users needs beng met 3 meetng users needs s a prmary, f not the prmary, objectve of envronmental desgn Vscher (2008) further states that measurng the occupants experence provdes nformaton both about the product how spaces affect behavour n dfferent stuatons, the effects of buldng systems on comfort and about psychologcal processes how people feel about and respond to the spaces they occupy, as well as about process. Feedback from users can and sometmes nforms the desgn, constructon, management and dsposton of buldngs. In Vscher s study, a framework based on three levels of envronmental comfort that nfluences productvty ncludng physcal, psychologcal and functonal comfort has been developed. Physcal comfort: health and safety, responsble desgn, respectng constructon standards, comfort standards Psychologcal comfort: terrtoralty and prvacy, satsfacton, envronmental empowerment through nformaton dssemnaton and choce Functonal comfort: Workspace desgned to support task performance, mproved task performance, envronmental competence, measurable dmensons Psychologcal comfort Organsatonal effectveness Functonal comfort Group/team effectveness Indvdual effectveness Physcal comfort Fgure 27 Analytc framework for assessng the user s experence (Vscher, 2008) 103 Workplace change: drvng forces, types of changes and the mpact on organsatons and employees

102 In the buldng, the user s at the centre of ths approach to a theory of the bult envronment. Users are defned accordng to ther use of the bult envronment, and thus the users experence becomes a measure of ts effectveness. Unts for users n an offce buldng are the ndvdual worker, the team or workgroup, and the organzaton. Each nteracts wth the bult envronment at a dfferent level and thus the measure of envronmental effectveness vares for each unt. The focus on dfferent dmensons of workng envronment aspects can provde the soluton that s most sutable to the wshes of the employees. Assessment technques to measure prortsed aspects Prortsed aspects of the work envronment can be measured usng the WODI Lght tool. The fndngs present the rankng of the % of respondents markng a partcular aspect as one of three most mportant aspects of the workplace envronment from 19 aspects (Fgure 28) Fgure 28 Example of fndngs usng the WODI Lght questonnare: prortsed aspects of the work envronment (A case study of Dhanarak Asset Development, N = 85) Rothe et al. (2012) used the survey questons n whch respondents can mark the mportance of partcular work envronment attrbutes on a fve-step scale: not mportant, less mportant, neutral, mportant to some extent, and very mportant. The study focused on dfferent age groups and ther preferences towards varous work envronment aspects. The questonnare comprsed questons of four dfferent 104 Performance measurement of workplace change

103 categores: locatonal attrbutes, servce attrbutes, offce buldng attrbutes, and workspace attrbutes. These attrbutes were fnally classfed to seven preference areas: servce, vrtual and moblty, collaboraton, mage, mpact, sustanablty, and commutng. Average factor scores of respondents n dfferent age groups (2) Vrtual envronment VIRTUAL (9) Envronment supports collaboraton (16) Networkng n the buldng (19) Prvacy and concentraton COLLABORATION AND PRIVACY 1940 s 1950 s 1960 s 1970 s 1980 s (4) Image of area and buldng (14) Safety and cleanlness of area IMAGE (18) Space supports organsatonal mage and values Factor scores (Average) Fgure 29 Average factor scores, preferences concernng the vrtual envronment, prvacy and collaboraton, and mage (Rothe et al., 2012) Notes: Factor relevant based on Dscrmnant Analyss. The hgher the factor score, the more mportant s the factor for the respectve group, compared to other groups. 3.6 Conceptual model Inventory of approaches n ths chapter were used to develop a conceptual model of workplace change apprasal. Among these approaches, the ntegrated workplace strategy from Becker and Joroff (2000) came to the fore. The four components of the ntegrated workplace strategy (physcal settngs, IT, work patterns and processes, organsatonal culture and management) can explan the factors that nfluence workplace change apprasal. These four components were used to develop varables of the workplace change apprasal,.e. organsaton, work process, workplace change, mplementaton process, and the apprasal of change. The precondtons and external context were subsequently added to the model (Fgure 30). 105 Workplace change: drvng forces, types of changes and the mpact on organsatons and employees

104 The conceptual model has been developed n order to explore the mpact of nfluental factors on workplace change apprasal and the extent these factors can nterplay when they are compared n the three case studes. The thematc comparson of the wthn case analyss n Chapters 6-8 s based on the varables n the conceptual model. The second purpose of the conceptual model s that t can be used to develop the ntegrated conceptual model whch can explan the lnks between workplace change, the apprasal of change, performance measurement and cultural background. Organsaton - Busness types - Objectve - Structure - Staff characterstcs - Organsatonal culture - Natonal culture Organsaton - Busness types - Objectve - Structure - Staff characterstcs - Organsatonal culture - Natonal culture Work process - Daly actvtes: what, when, how, by whom, where Precondtons - Tme - Money - Informaton Workplace before change - Locaton - Buldng grade - Archtectural desgn - Workplace concept - Supportng facltes Implementaton process - Workplace change objectves - Drvers to change - Change management Workplace after change - Locaton - Buldng grade - Archtectural desgn - Workplace concept - Supportng facltes Work process - Daly actvtes: what, when, how, by whom, where Precondtons - Tme - Money - Informaton External context - Legslaton - Economc stuaton - Labour market Apprasal of change - Employee satsfacton - Perceved productvty support - Prortsed aspects External context - Legslaton - Economc stuaton - Labour market Fgure 30 Complex relatonshps between the varables mpactng on an apprasal of workplace change (Rratanaphong and Van der Voordt, 2012) Descrpton of varables Organsaton-related varables nclude busness types, objectve, structure, staff characterstcs, organsatonal and natonal culture. Busness types, objectves and the structure of the company all descrbe the organsatonal characterstcs that can have an mpact on how an organsaton s resources are managed. Staff characterstcs descrbe how staff deals wth certan stuatons. Work process refers to daly actvtes (what happens, when, where, how and by whom) that are carred out n a workplace. The culture varable ams to dentfy certan types of behavours, atttudes, belefs values and norms of ndvduals workng n organsatons. Ths part can be assocated wth the fndngs receved from cultural surveys. Organsatonal culture assessment dentfes how employees perceve ther current and preferred culture n four major types: clan, adhocracy, herarchy, market (Cameron & Qunn, 2006). A natonal culture survey assesses fve cultural dmensons accordng to Hofstede (1997): power dstance, ndvdualsm, masculnty, uncertanty avodance and long-term orentaton. The cultural context wll be descrbed n more detals n Chapter Performance measurement of workplace change

105 Precondtons are consdered n terms of tme, money and nformaton. Tme refers to the moment of mplementng the workplace change that mpacts the organsaton and ts operaton. Money s the fnancal stuaton of the organsaton at the tme of mplementng the workplace change. Informaton s regarded as the facts provded or learned about the preparaton and mplementaton of the workplace change practce. External context concerns the mpact of legslaton, the economc stuaton and the labour market at that tme. The workplace, as seen before and after the change, ncludes varables of locaton, buldng grade, archtectural desgn, workplace concept and supportng facltes. Buldng grade refers to the classfcatons of offce propertes such as age, locaton, nteror desgn qualty, standard of mantenance, length of leases, etc. The mplementaton process nvolves factors that cause workplace change and how the organsaton copes wth change. Apprasal of change s the assessment of employee satsfacton, perceved productvty support and prortsed aspects n the varous components of the workng envronment. 3.7 Conclusons Ths chapter descrbes the theores of workplace change and ts mpact on employees. Theores on workplace change provde an understandng of several factors whch have an mpact on the desgn and management of a workplace. The fndngs from lterature emphasse the mportance of drvers and objectves to brng about change, such as cost reducton, the changng work pattern and the organsatonal structure that can all have an mpact on workplace change and how ths s apprased. A typology of offce work that s based on dfferent varables (e.g. nteracton and autonomy, space and tme) helps to understand the relatonshps between dfferent work processes and varous workplace concepts (Duffy, 1997, Vos et al., 1999, Nutt, 2000). Trends n workplace desgn and management provde nformaton to dscuss workplace strateges n connecton to real estate and organsatonal objectves. Ths mproved understandng of the workplace can be used to analyse the varous components of workplace change and the apprasal of change. Several theores were ntroduced n ths chapter to elaborate on the employees responses to the changed work envronment n three ways: employee satsfacton, perceved productvty support and prortsed aspects. A holstc vew of factors whch nfluence employee satsfacton (.e. physcal workng envronment, condtons of employment, the work tself) appear to be helpful n understandng the mpact that can have on employees (Sundstrøm, 1986, Vollebregt, 1996, Cleements-Croome, Workplace change: drvng forces, types of changes and the mpact on organsatons and employees

106 n Van der Voordt, 2003). The fve ways of measurng productvty (Van der Voordt, 2003) enable to understand the varous approaches used to measure productvty. User needs and preference model (Rothe et al., 2012) and the analytc framework for assessng a user s experence (Vscher, 2008) have appeared to be useful n explanng the fndngs from the prortsed aspects of the work envronment. Smlar assessment technques on employee satsfacton and productvty were found n the lterature ncludng Publc Works Canada (Dllon & Vscher, 1987) and Work Envronment Dagnoss Instrument (WODI; Center for People and Buldngs, 2010). Because of the applcablty of the tool, the WODI Lght has been selected to evaluate employees responses to the workplace change depcted n the case studes n ths PhD research. Moreover, the Center for People and Buldngs ndcator (CfPB ndcator, 2013), provdes the average percentage of satsfed respondents n 96 Dutch cases, and offers the opportunty to compare the fndngs of the case studes wth smlar data taken from a number of Dutch cases. 108 Performance measurement of workplace change

107 4 Organsatonal and natonal culture 4.1 Introducton One of the obstacles to defne culture s that t has been mentoned by many authors n dfferent perspectves and on many occasons. On the one hand, culture refers to the customs and rtuals that socetes develop. On the other hand, t can be referred to as the clmate and practces that organsatons develop, or as the espoused values of an organsaton (Schen, 2004). Furthermore, dfferent deas about culture are the subject of an ongong academc debate. Despte the assumpton that there are better or worse cultures and stronger or weaker cultures (Schen, 2004), there s no scentfc evdence to affrm that one group s ntrnscally superor or nferor to another, and one culture has no absolute crtera for judgng the actvtes of another culture as beng low or noble (Hofstede, 1997). Schen (2004: 17) defnes culture as a pattern of shared basc assumptons that the group learned as t solved ts problems of external adaptaton and nternal ntegraton, that has worked well enough to be consdered vald and, therefore, to be taught to new members as the correct way you perceve, thnk, and feel n relaton to those problems. He further mentons that the concept of culture ponts to phenomena that are powerful n mpact but nvsble and, to a consderable degree, unconscous. Accordng to Hofstede (1997), dfferent groups and categores of people can be classfed n several layers ncludng a natonal, regonal, gender, generaton, socal class and organsatonal level. In addton, Hofstede (1997) classfed manfestatons of culture nto four categores: symbols, heroes, rtuals and values, as shown n Fgure 31. Symbols Heroes Rtuals Values practces Fgure 31 Manfestatons of culture: from shallow to deep (Hofstede, 1997) 109 Organsatonal and natonal culture

108 Symbols are words, gestures or pctures that have partcular meanng that s recognsed by group members that share the culture. Heroes are people who have characterstcs that are hghly valued n a culture. Rtuals are collectve actvtes that are socally mportant wthn a culture such as ways of greetng. Values are broad tendences to prefer certan states of affars over others, for example, ratonal and rratonal feelngs. Symbols, heroes, and rtuals can be subsumed under the term practces because they are vsble to an observer, although ther cultural meanng les n the way they are perceved by nsders. The core of culture s formed by values (Hofstede, 1997). Ths chapter descrbes varous aspects of culture and ntroduces dfferent types and dmensons of organsatonal and natonal culture. Theoretcal fndngs from ths chapter wll be used as background data to explore the role of culture on performance measurement of workplace change between organsatons n Thaland and The Netherlands. 4.2 Organsatonal culture Hofstede (1997) descrbes culture one as the cvlsaton or refnement of the mnd and the results of such refnement such as educaton, art and lterature. Another aspect of culture as mental software s a much broader use, called culture two. Commonly used terms relatng to culture emphasse the dea that certan thngs n groups are shared or held n common, for example: group norms, espoused values, formal phlosophy, clmate, shared meanngs and formal rtuals and celebratons. The word culture adds other crtcal aspects to the concept of sharng, whch nclude structural stablty, depth, breadth, and patternng or ntegraton (Schen, 2004). Cameron and Qunn (2006:145) refer to culture as beng mplct, ndscernble aspects of organsatons. It s an endurng, slow-changng core attrbute of organsatons that ncludes core values and consensual nterpretatons about how thngs are. In addton, culture s a potental predctor of other organsatonal outcomes such as effectveness (Cameron and Qunn, 2006). Organsatonal culture s defned as the belefs and expectatons that brng about norms that powerfully shape the behavour of ndvduals and groups wthn the organsaton (Schwartz and Davs, 1981, Schen, 1990, O Relly et al., 1991). Schen (1999) states that organsatonal culture s developed over tme as people n the organsaton learn to deal successfully wth problems of external adaptaton and nternal ntegraton; t becomes the common language and the 110 Performance measurement of workplace change

109 common background. In ths way culture can arse from what has proven successful for the organsaton. Cameron and Qunn (2006) argue that the concept of organsatonal culture emerged from two dfferent dscplnary roots: an anthropologcal foundaton (the fact that organsatons are cultures) and a socologcal foundaton (the fact that organsatons have cultures). Consequently, two dfferent approaches to culture were developed wthn each of these dscplnes: a functonal approach (culture emerges from collectve behavour) and a semotc approach (culture resdes n ndvdual nterpretatons and cogntons). The former approach assumes that researchers and managers can dentfy dfferences among organsatonal cultures, can change cultures, and can emprcally measure cultures. They further menton that the use of the term organsatonal culture helps to dfferentate the culture of the general organsaton from the values, preferences, and nclnatons of ndvduals (personal culture), and from the language, norms, and phlosophes of a naton or cvlsaton (socetal culture). The applcaton of the concept of culture to organsaton has receved ncreasng attenton (Schen, 1990, O Relly et al., 1991). As mentoned by Schwartz and Davs (1981), organsatons cannot functon wthout some degree of regularsed, formal nformaton flow, polces, procedures, and meetngs through whch the essental tasks of the busness are carred out. Organsatons are bult upon the sklls, experence and requrements of the employees that compose them. The organsatonal culture s also assocated wth the shared behavour of employees wth regard to the job and organsaton (Rambersad, 2003). Moreover, t can be explaned by the management n terms of management style (Schwartz and Davs, 1981) and organsatonal structure (Smth, 1998). The organsatonal culture can affect the organsaton s capablty of attanng objectves and plans. Thus, the success of the organsaton s determned by the ntegraton of organsatonal culture, the management system, the structure and the people (Schwartz and Davs, 1981 n Chongruksut, 2009). Measurement Organsatons have many unque subcultures assocated wth dfferent subunts, and each of these subcultures holds common attrbutes that formulate an overarchng culture whch s typcal for the entre organsaton. Three strateges are used to measure culture at the organsatonal level of analyss (Cameron and Qunn, 2006): 1 a holstc approach n whch the nvestgator becomes mmersed n the culture and engages n n-depth partcpant observaton 2 metaphorcal or language approaches n whch the nvestgator uses language patterns n documents, reports, stores, and conversatons to uncover cultural patterns 3 quanttatve approaches n whch the nvestgator uses questonnares or ntervews to assess partcular dmensons of culture 111 Organsatonal and natonal culture

110 Wth regard to the three strateges, a quanttatve approach allows multple vewponts to be consdered when assessng the attrbutes of an organsaton s culture. In a qualtatve approach, the nvestgaton of multple organsatonal cultures becomes mpossble when mmerson n each one s mandatory. Therefore, to conduct comparsons among multple cultures, quanttatve approaches must be used (Cameron and Qunn, 2006) The competng values framework Cameron and Qunn (2006) developed an organsatonal culture model based on the Competng Values Framework (CVF) (Qunn and Rohrbaugh, 1983). In the CVF, the organsatons are dentfed n three value dmensons: flexblty - control, nternal external, and means - ends, and postoned n four models of effectveness: human relatons, open systems, nternal processes, and ratonal goals. The CVF adopts an anthropologcal approach that ams to assess how thngs are n the organsaton rather than how ndvduals feel about them. The CVF was developed ntally from research conducted at the Unversty of Mchgan on the major ndcators of effectve organsatonal performance. Ths model provdes an understandng of the CVF n two dmensons: flexblty-control and nternal-external, wth the ntegraton of meansends to each dmenson, whch can account for the ndvdual characterstcs and behavours of the organsaton (Qunn and Rohrbaugh, 1983). HUMAN RELATIONS MODEL Flexblty OPEN SYSTEM MODEL Means: Coheson; Morale Means: Flexblty; Readness Ends: Human resource development Ends: Growth; Resource acquston Internal Output Qualty External Means: Informaton management; Communcaton Ends: Stablty; Control Means: Plannng; Goal settng Ends: Productvty; Effcency INTERNAL PROCESS MODEL Control RATIONAL GOAL MODEL Fgure 32 Model of the CVF n three dmensons: flexblty-control, nternal-external, means-ends (Qunn and Rohrbaugh, 1983) 112 Performance measurement of workplace change

111 The frst dmenson makes a dstncton between an emphass beng placed on flexblty, dscreton, and dynamsm and an emphass placed on stablty, order, and control. For example, some organsatons and managers are vewed as effectve f they are flexble, adaptable, and transformatonal. Other organsatons and managers are vewed as effectve f they are stable, predctable, and consstent. Ths contnuum ranges from versatlty and plablty at one end, to steadness and durablty at the other (Cameron, 2009). The second dmenson makes a dstncton between an nternal orentaton whch focuses on ntegraton, collaboraton, and unty from an external orentaton whch focuses on dfferentaton, competton, and rvalry. For example, some organsatons and managers are vewed as effectve f they have harmonous nternal relatonshps and processes. Others are judged to be effectve f they successfully compete aganst others and establsh a market nche. Ths contnuum ranges from coheson and consonance at one end to separaton and ndependence at the other. The thrd dmenson s consdered by the means-ends contnuum that s nterpreted as the objectves of organsatons (ends) and the means or processes through whch they sustan themselves and attan ther objectves (Qunn & Rohrbaugh, 1983). These dmensons form four quadrants, each representng a dstnct set of organsatonal and ndvdual factors. These four core values represent opposte or competng assumptons. Each dmenson hghlghts a core value that s opposte to the value at the other end of the contnuum -.e., flexblty versus stablty, nternal versus external. The four major quadrants defned by these two axes have been labelled as the Human Relatons Model, the Open System Model, the Internal Process Model, and the Ratonal Goal Model (Qunn & Rohrbaugh, 1983). The human relatons model emphasses flexblty and nternal focus, and stresses crtera such as coheson and morale (as means) and human resource development (as an end). The open system model emphasses flexblty and external focus, and stresses crtera lke flexblty and readness (as means) and growth, resource acquston, and external support (as ends). The ratonal goal model emphasses control and external focus, and stresses the effectveness crtera n plannng and goal settng (as means) and productvty and effcency (as ends). The nternal process model emphasses control and nternal focus, and stresses the role of nformaton management and communcaton (as means) and stablty and control (as ends). 113 Organsatonal and natonal culture

112 4.2.2 Four major culture types Cameron and Qunn (2006) developed an organsatonal culture model, based on the CVF (Qunn and Rohrbaugh, 1983). The lnk of the CVF to organsatonal cultures can be descrbed n terms of key values; leadershp types, value drvers, approaches to change; and the theores of effectveness n culture type resdng n each of the four quadrants of the framework. The four culture types are algned wth the four quadrants of the CVF: human relatons, open systems, nternal processes and ratonal goals (see Fgure 33). These quadrants are alternatvely referred to as clan, adhocracy, herarchy, and market cultures, respectvely (Cameron and Qunn, 2006). Flexblty and Dscreton Internal focus and Integraton CLAN HIERARCHY ADHOCRACY MARKET External focus and Dfferentaton Stablty and Control Fgure 33 Four types of organsatonal culture (Cameron and Qunn, 2006) 1 The clan culture The clan culture s smlar to a famly-type organsaton. A clan-type organsaton emphasses teamwork, employee nvolvement, corporate commtment to employees and the long-term beneft of ndvdual development. Customers are consdered partners n ths organsatonal type. The organsaton promotes a humane work envronment n whch the nternal clmate and concern for people defne success. Leaders are vewed as mentors who have the manageral task of empowerng employees and facltatng ther partcpaton, commtment and loyalty. The relatonshp n an organsaton s mantaned by loyalty and tradton. 2 The herarchy culture The herarchy culture can be descrbed as an organsaton that focuses on an envronment that s relatvely stable, n whch tasks and functons can be ntegrated and coordnated, unformty n products and servces can be mantaned, and workers and jobs are under control. Ths type of culture s charactersed by a formalsed and structured workplace that s held together by formal rules and polces. In ths culture, 114 Performance measurement of workplace change

113 success s defned by clear lnes of authorty, standardsed rules and procedures, and control and accountablty mechansms. Leaders have roles as coordnators and organsers. Mantanng a smooth-runnng organsaton wth the long-term concerns of stablty, predctablty and effcency s mportant. 3 The adhocracy culture Adhocracy s derved from the term ad hoc, whch mples somethng temporary, specalsed and dynamc. Ths culture does not have centralsed power or authorty relatonshps. Instead, power s authorsed to ndvduals or task teams dependng on the problem beng addressed. An organsaton charactersng the adhocracy culture can be seen as adaptable, flexble and creatve where uncertanty, ambguty and nformaton overload are typcal. Leaders are vsonary, nnovatve and rsk-orented. 4 The market culture The market culture refers to a type of organsaton that functons as a market tself. Ths culture type emphasses transactons wth external partes such as supplers, customers, contractors, lcensees, unons and regulators. Ths culture type operates through economc market mechansms, manly monetary exchange, n whch compettveness and productvty are core values. Leaders are hard-drvng producers and compettors. Because the long-term concern s on compettve actons, t s essental to outpace the competton and to have market leadershp Sx content dmensons of organsatonal culture Qunn and Rohrbaugh (1983) developed an assessment tool employng the CVF as a means for determnng the relatve mportance of cultural trats wthn an organsaton, establshng the organsaton s domnant culture type characterstcs and an overall culture profle n terms of the four cultural forms mentoned above, and by addng the followng sx key dmensons of organsatonal culture. 1 The domnant characterstcs. Ths dmenson characterses what the general organsaton s lke. 2 The organsatonal leadershp. Ths dmenson emphasses the leadershp style and approach that permeate the partcular organsaton. 3 The management of employees. Ths dmenson refers to the style that characterses how employees are treated and what the workng envronment s lke. 4 The organsatonal glue. Ths dmenson refers to the bondng mechansms that hold the organsaton together. 5 The strategc emphass. Ths dmenson defnes whch areas of emphass drve the organsaton s strategy. 6 The crtera of success. Ths dmenson determnes how vctory s defned and what s rewarded and celebrated. 115 Organsatonal and natonal culture

114 In combnaton, these dmensons characterse how organsatons functon n terms that reflect fundamental cultural values and mplct assumptons of the organsatons. In other words, these dmensons reflect how thngs are n the organsaton (Cameron and Qunn, 2006). In an organsaton, the sx content dmensons of organsatonal culture can be explaned n relaton to the four culture types The Organsatonal Culture Assessment Instrument (OCAI) The OCAI questonnare uses a scenaro analyss procedure n whch respondents report the extent to whch wrtten scenaros are ndcatve of ther own organsaton s culture. These scenaros serve as cues - both emotonal and cogntve - that brng core cultural attrbutes to the surface (Cameron and Qunn, 2006). Many well-known studes of organsatonal culture have used ths approach, ncludng Ouch and Johnson (1978), O Relly (1983), and Denson (1990), and t s represented by the competng values approach to culture assessment. The OCAI questonnare asks questons on sx tems: 1) domnant characterstcs, 2) organsatonal leadershp, 3) management of employees, 4) organsatonal glue, 5) strategc emphass and 6) crtera of success. Each tem has four optons: A = Clan, B = Adhocracy, C = Market and D = Herarchy. Respondents are asked to dvde 100 ponts among the four optons, dependng on the extent to whch each opton represents the respondent s organsaton. A hgher number of ponts s gven to the opton that s most smlar to the organsaton. The column for the nstrument labelled Current corresponds wth how the organsaton that s beng rated currently operates. The respondents are then asked to rate how they thnk the organsaton should be n fve years tme n the Preferred column (see Appendx VIII). The respondents thus produce two ndependent ratngs of the organsatonal culture - one as t currently exsts and the other as they would lke t to be n fve years tme (Cameron and Qunn, 2006). In ths study, I apply OCAI to assess the organsatonal culture of the three case studes as t can be used to assess the common attrbutes of subcultures (.e. culture of unts/departments) thus makng up an overall culture of the organsaton. Assessng organsatonal culture means that the overarchng elements are the focus of measurement, and the organsaton level of analyss s the ntended target of assessment when usng the nstrument. The analyss of organsatonal culture types n four quadrants of the competng values framework s helpful when dscussng cultural characterstcs n connecton to other varables of the study such as performance measurement and workplace change characterstcs. 116 Performance measurement of workplace change

115 4.3 Natonal culture Lke all culture, natonal culture s a learned characterstc that s not genetc. Although natonal cultural trats are learned and therefore could have been learned dfferently from one country to another, the dfferences n natonal patterns of mental programmng tend to be very stable over tme (Hofstede, 1982). There are strong forces towards ntegraton wthn natons such as one domnant natonal language, common mass meda, a natonal educaton system, a natonal army, a natonal poltcal system, a natonal market for certan sklls, and natonal products and servces (Hofstede, 1997). There s a tendency for ethnc, lngustc and relgous groups to seek recognton of ther own dentty. For example, natonal culture n European countres s derved from a dfferent country cluster: the UK comes from the Anglo cluster, Italy from the Latn cluster, Germany from the Germanc cluster and Sweden and The Netherlands from the Nordc cluster (Ronen and Shenkar, 1985). Hofstede (1997) reported that the followng ssues qualfy as common fundamental problems that all socetes encounter worldwde, wth consequences for the functonng of these socetes, of the groups wthn these socetes, and of ndvduals wthn these groups: 1 Relaton to authorty 2 Concepton of self, n partcular: the relatonshp between ndvdual and socety, and the ndvdual s concept of masculnty and femnnty 3 Ways of dealng wth conflcts, ncludng the control of aggresson and the expresson of feelngs. Hofstede (1997) nvestgated cultural dfferences of IBM employees n 50 countres around the world. Dfferences n values among matched populatons of employees of natonal subsdares of a multnatonal allow a conservatve estmate of dfferences among the natonal populatons at large, as respondents are supposed to share the same worldwde corporate culture Fve dmensons of natonal culture A dmenson s an aspect of a culture that can be measured n regard to other cultures. The basc dfferences between natonal cultures correspond to dmensons whch Hofstede (1997) termed as follows: power dstance (from small to large), collectvsm versus ndvdualsm, femnnty versus masculnty, uncertanty avodance (from weak to strong) and long and short term orentaton. 117 Organsatonal and natonal culture

116 1 Power Dstance Index (PDI) Power dstance s the extent to whch the less powerful members of nsttutons and organsatons wthn a socety expect and accept that power s dstrbuted unequally. 2 Indvdualsm Index (IDV) Indvdualsm s the opposte of Collectvsm. Indvdualsm stands for a socety n whch the tes between ndvduals are loose: a person s expected to look after hmself or herself and hs or her mmedate famly only. Collectvsm stands for a socety n whch people from brth onwards are ntegrated nto strong, cohesve n-groups, whch contnue to protect them throughout ther lfetmes n exchange for unquestonng loyalty. 3 Masculnty Index (MAS) Masculnty s the opposte of Femnnty. Masculnty stands for a socety n whch emotonal gender roles are clearly dstnct: men are supposed to be assertve, tough, and focused on materal success; women are supposed to be more modest, tender, and concerned wth the qualty of lfe. A masculne score on ths dmenson ndcates that the socety wll be drven by competton, achevement and success, wth success beng defned by the wnner or whoever s best n the feld. A femnne score on the dmenson means that the domnant values n socety are carng for others and qualty of lfe. A femnne socety s one n whch the qualty of lfe s a sgn of success and standng out from the crowd s not vewed as beng admrable. 4 Uncertanty Avodance Index (UAI) Uncertanty avodance s defned as the extent to whch the members of nsttutons and organsatons wthn a socety feel threatened by uncertan, unknown, ambguous, or unstructured stuatons. 5 Long-term Orentaton Index (LTO) Long-term orentaton s the opposte of short-term orentaton. The long-term orentaton dmenson s closely related to the teachngs of Confucus, an nfluental Chnese phlosopher. Confucus s prncples had a foundaton n common Chnese tradton and belef. Ths orentaton can be nterpreted as dealng wth socety s search for vrtue, the extent to whch a socety shows a pragmatc future-orented perspectve, n partcular perseverance and thrft, rather than a conventonal hstorcal short-term pont of vew. Short-term orentaton stands for a socety that fosters vrtues related to the past and present, n partcular respect for tradton, preservaton of face, and fulfllng socal oblgatons. In addton, the sxth dmenson Indulgence versus Restrant was establshed later n 2010 (Hofstede et al., 2010). Indulgence stands for a socety that allows relatvely free gratfcaton of basc and natural human desres related to enjoyng lfe and havng fun. Restrant stands for a socety that controls gratfcaton of needs and regulates t by 118 Performance measurement of workplace change

117 means of strct socal norms (Hofstede, 2011). Ths dmenson has not been ncluded n ths PhD research because t was not orgnated from the same sample (IBM employees) of the former fve dmensons. The country ndexes appled n ths research s based on the data obtaned from the IBM database (Hofstede, 2001). In each dmenson, dfferences between countres manfest themselves at dfferent levels: chld/famly - school - workplace - ctzen/state - deas/phlosophy. Tables summarse the key dfferences of these fve cultural dmensons wth regard to the workplace. Small Power Dstance Herarchy n organsatons means an nequalty of roles, establshed for convenence. Decentralzaton s popular. There are fewer supervsory personnel. There s a narrow salary range between the top and bottom of the organsaton. Managers rely on ther own experence and on subordnates. Subordnates expect to be consulted. The deal boss s a resourceful democrat. Subordnate-superor relatons are pragmatc. Prvleges and status symbols are frowned upon. Manual work has the same status as offce work. Large Power Dstance Herarchy n organsatons reflects exstental nequalty between hgher and lower levels. Centralzaton s popular. There are more supervsory personnel. There s a wde salary range between the top and bottom of the organsaton. Managers rely on superors and on formal rules. Subordnates expect to be told what to do. The deal boss s a benevolent autocrat, or good father. Subordnate-superor relatons are emotonal. Prvleges and status symbols are normal and popular. Whte-collar jobs are valued more than blue-collar jobs. Table 18 Key dfferences between small and large power dstance socetes n connecton to the workplace (Hofstede, 1997) Occupatonal moblty s lower. Collectvst Employees are members of n groups who wll pursue ther n group s nterest. Hrng and promoton decsons take an employee s n group nto account. The employer-employee relatonshp s bascally moral, lke a famly lnk. Management s management of groups. Drect apprasal of subordnates spols harmony. In-group customers receve better treatment (partcularsm). Relatonshp prevals over task. Indvdualst Occupatonal moblty s hgher. Employees are economc people who wll pursue the employer s nterest f t concdes wth ther self-nterests. Hrng and promoton decsons are supposed to be based on sklls and rules only. The employer-employee relatonshp s a contract between partes on a labour market. Management s management of ndvduals. Management tranng teaches the honest sharng of feelngs. Ever customer should receve the same treatment (unversalsm). Task prevals over relatonshp. Table 19 Key dfferences between collectvst and ndvdualst socetes n connecton to the workplace (Hofstede, 1997) 119 Organsatonal and natonal culture

118 Femnne Management as ménage: ntuton and consensus. Resoluton of conflcts by compromse and negotaton. Rewards are based on equalty. Preference for smaller organsatons. People work n order to lve. More lesure tme s preferred over more money. Careers are optonal for both genders. Hgher share of workng women n professonal jobs. Humanzaton of work by contact and cooperaton. Compettve agrculture and servce ndustres. Masculne Management as ménage: decsve and aggressve. Resoluton of conflcts by lettng the strongest wn. Rewards are based on equty. Preference for larger organsatons. People lve n order to work. More money s preferred over more lesure tme. Careers are compulsory for men, optonal for women. Lower share of workng women n professonal jobs. Humanzaton of work by job content enrchment. Compettve manufacturng and bulk chemstry. Table 20 Key dfferences between femnne and masculne socetes n connecton to the workplace (Hofstede, 1997) Weak Uncertanty Avodance More changes of employer, shorter servce. No more rules than strctly necessary. Hard-work only when needed. Tme s a framework for orentaton. Tolerance for ambguty and chaos. Belef n generalsts and common sense. Top managers are concerned wth strategy. More new trademarks. Focus on decson process. Intrapreneurs relatvely free from rules. Fewer self-employed people. Better at nventon, worse at mplementaton. Motvaton by achevement and esteem or belongng. Strong Uncertanty Avodance Fewer change of employer, longer servce. Emotonal need for rules, even f these wll not work. There s an emotonal need to be busy and an nner urge to work hard. Tme s money. Need for precson and formalzaton. Belef n experts and techncal solutons. Top managers are concerned wth daly operatons. Fewer new trademarks. Focus on decson content. Intrapreneurs constraned by exstng rules. More self-employed people. Worse at nventon, better at mplementaton. Motvaton by securty and esteem or belongng. Table 21 Key dfferences between weak and strong uncertanty avodance socetes n connecton to the workplace, organsaton and motvaton (Hofstede, 1997) 120 Performance measurement of workplace change

119 Short-Term Orentaton Efforts should produce quck results. Socal pressure toward spendng. Respect for tradtons. Concern wth personal stablty. Concern wth socal and status oblgatons. Concern wth face. Long-Term Orentaton Perseverance, sustaned efforts toward slow results. Thrft, beng sparng wth resources. Respect for crcumstances. Concern wth personal adaptveness. Wllngness to subordnate oneself for a purpose. Havng a sense of shame. Table 22 Key dfferences between short-and long-term orentaton socetes: general norm (Hofstede, 1997) The key dfferences of fve cultural dmensons wth regard to the workplace level are used to understand the complex relatonshp between natonal culture and workplace change. However, most ssues are related to organsaton and management (socal work envronment), and less regardng the physcal characterstcs of the work envronment The Values Survey Module (VSM) Hofstede conducted research n one multnatonal busness corporaton n 40 countres (Hofstede, 1980) and t has currently been extended hs research to nclude 93 countres. Surveys of large data sets of smlar respondents n dfferent countres enabled formulate ndexes (on a contnuum between 0 and 100) based on the smlartes and dfferences between the respondents. Subsequently, the Values Survey Module (VSM) was developed n order to compare culturally determned values of people from two or more countres or regons. The 20 content questons allow ndex scores to be calculated on fve dmensons: power dstance, ndvdualsm, masculnty, uncertanty avodance, and long-term orentaton. These dmensons are extensvely valdated aganst other aspects of natonal socetes as well as tests of ther cross-tme stablty (Hofstede, 2001). These generalsed dmensons do not am to stereotype the cultural groups, or to suggest that culture n the partcular groups s the same or cannot be changed. Ths cultural framework allows an opportunty to dscuss and exchange dalogues of the partcular stuatons based on fve dmensons of natonal culture. The 20 questons were selected for the natonal culture survey because, n statstcal terms, the country mean scores are strongly correlated. When matched samples from dfferent countres are compared, the mean scores for the countres belongng to the same dmenson usually vary. Although t s lkely that the answers to the 20 content 121 Organsatonal and natonal culture

120 questons vary between natonaltes, t cannot be sad that each respondent of a specfc natonalty gves one answer and those of another natonalty gve a dfferent answer. Accordng to Hofstede, the questons and dmensons n ths questonnare were chosen to be able to compare countres, and the questonnare was developed for use at the country level. The mnmum number of respondents per country or regon to be used n comparsons s 20. Below that number, the nfluence of sngle ndvduals becomes too strong. The deal number s 50. All content questons are scored on fvepont scales. Index scores are derved from the mean scores of the response. The value of each ndex s usually between 0 and 100, but values below 0 and above 100 are techncally possble. In ths study, the VSM s appled to the three case studes n order to calculate the scores on fve dmensons of natonal culture. VSM (1994 verson) was selected for ths research as t has been wdely used n many countres. Results from the surveys n the case studes can be used to compare country ndexes from Hofstede (.e. Thaland and The Netherlands) as well as the natonal characterstcs of each country. However, fndngs from the natonal culture survey n fve dmensons should not be consdered as beng representatve of natonal culture, but are amed at provdng a framework for developng our understandng of partcular stuatons, antcpatng cultural conflcts and addressng them through personal dalogue. 4.4 Conceptual model The model n Fgure 34 has been developed from the conceptual model of workplace change apprasal prevously mentoned n Chapter 3. To focus on organsatonal and natonal culture, the other varables such as objectve, structure, precondtons and external context have been removed from ths model. In addton, performance measurement has been added to the model to explan the role of culture on corporate and real estate performance. Fgure 34 presents the conceptual model of organsatonal and natonal culture that lnks four man varables: 1) organsatonal and natonal culture, 2) workplace change, 3) performance measurement and 4) employees responses to the work envronment. The conceptual model s developed to explore the possble relatonshps between organsatonal and natonal culture and other research varables,.e. performance measurement, workplace change and employees responses to the work envronment. In order to explore the cultural context, data on dfferent types and dmensons of organsatonal and natonal culture n the case studes wll be dscussed n connecton 122 Performance measurement of workplace change

121 to: 1) dfferent characterstcs of workplace change, 2) performance measurement frameworks, crtera and performance measures/kpis, 3) employee satsfacton, perceved productvty support and prortsed aspects. Workplace change Workplace change objectves Locaton Buldng grade Archtectural desgn Workplace concept Supportng facltes Organsatonal Natonal culture culture Power dstance, Clan, Indvdualsm, Adhocracy, Masculnty, Herarchy, Uncertanty avodance Market Long term orentaton Employees responses to the work envronment Employee satsfacton Perceved productvty support Prortsed aspects Performance measurement Performance measurement frameworks and crtera Performance measures/kpis Fgure 34 Conceptual model of organsatonal and natonal culture Descrpton of varables The conceptual model shows the mpact of organsatonal and natonal culture on performance measurement, workplace change and employees responses to the work envronment. Organsatonal culture s ncorporated wth four organsatonal types: clan, adhocracy, herarchy and market. Organsatons are charactersed n fve dmensons of natonal culture ncludng power dstance, ndvdualsm, masculnty, uncertanty avodance and long term orentaton. Employees responses to the work envronment are descrbed as the percepton of employees to the changed work envronment,.e. employee satsfacton, perceved productvty support and prortsed aspects. Workplace change ncludes varables of workplace change objectves, locaton, buldng grade, archtectural desgn, workplace concept, supportng facltes and mplementaton process. Performance measurement nformaton s gathered from performance measurement frameworks, crtera and performance measures/kpis beng used n the case studes. These varables wll be dscussed n connecton to the fndngs from organsatonal and natonal culture of the three case studes n Chapter Organsatonal and natonal culture

122 4.5 Conclusons In ths chapter, I descrbe the theores of organsatonal and natonal culture from the perspectve of culture as ntroduced by several authors. The manfestatons of culture classfed nto practces and values by Hofstede (1997) provde an understandng of the varous layers of culture. Dfferent strateges (.e. holstc, metaphorcal and quanttatve approaches) were mentoned to measure organsatonal culture. Among these strateges, a quanttatve approach proposed by Cameron and Qunn (2006) s requred to conduct comparsons among multple cultures (common attrbutes of subcultures) n the organsaton. The competng values framework (Cameron and Qunn, 2006) helps us to better understand the dfferent types of organsatonal culture; ther four quadrant framework has been appled as a fundamental concept for dscussng the role of organsatonal culture. A general concept of natonal culture has enabled us to understand fundamental aspects that all socetes encounter. Lterature on fve dmensons of natonal culture has descrbed these aspects n connecton to the workplace and can be used to dscuss fndngs from the natonal culture survey n connecton to workplace change characterstcs and the apprasal of change n the three case studes. The understandng of organsatonal and natonal culture and fndngs from cultural surveys (OCAI and VSM94) can be used as background data to support the analyss of the man fndngs of ths study: performance measurement of workplace change n two dfferent cultural contexts. 124 Performance measurement of workplace change

123 5 Comparson between Tha and Dutch cultural settngs 5.1 Introducton Ths chapter concerns the Tha and Dutch natonal cultures and characterse them accordng to Hofstede s (1997) fve dmensons of natonal culture. In Secton 5.2, the hstory of Thaland s descrbed through the orgn of a naton state and ethnc backgrounds, together wth the nfluences of Buddhsm, the economy and the poltcal systems. These nfluences are ntertwned and ntegrated, formng the typcal Tha natonal characterstcs descrbed n Secton 5.3. In Secton 5.4, the mpact of western culture and globalsaton on the Tha natonal dentty are dscussed n terms of nfluences, controverses, conflcts and nterests. Accordng to Hofstede (1997), the fve cultural dmensons have been drawn from the dfferent perspectves whch vew the partcular culture of the Tha people. Secton 5.5 descrbes the hstorcal context of The Netherlands n terms of hstorc background, Calvnstc phlosophes, poltcal and socal nfluences. Dutch natonal character trats are dscussed n Secton 5.6. These Dutch characterstcs are used to delneate the fve dmensons of Dutch culture n Secton 5.7. In Secton 5.8, I dentfy the smlartes and dfferences between the Tha and Dutch culture n fve dmensons. Ths enables us to dscuss the mpact of culture on workplace characterstcs, performance measurement frameworks and crtera and performance measures/kpis, and on employees responses to the work envronment. 5.2 Tha hstorcal context Hstorcal background There have been many theores suggestng that the Tha people are a subgroup of the Ta, people who orgnally lved n the Southern Chna. However, some propose an ndgenous states theory, as ndgenous states were able to absorb foregn poltcal and cultural nfluences, and shape ther own dstnct cultural dentty (Wolters, 1982). Although more than 85% speak Tha and share a common culture, there s a strong sense of regonal dentty and prde n many parts of Thaland. 125 Comparson between Tha and Dutch cultural settngs

124 Thaland has a mult-ethnc socety. Approxmately one-thrd of the populaton lves n central Thaland, ncludng Bangkok; one-thrd lves n the northeast, wth sgnfcant Lao and Khmer ethnctes; 20% n the north; and 15% n the south. Ethnc Malay Muslms comprse a majorty n the three southernmost provnces. Up to 12% of Tha are of Chnese hertage (IBP, 2011). Central Tha s the language taught n schools and used n government. Despte the lngustc and cultural dversty of central, northern, northeastern and southern Thaland, the offcal rhetorc has been that they are all Tha (Vasu, 2005). In 1939, the Tha mltary government under Feld Marshal Phbun Songkram changed the country s name from Sam to Thaland, representng the natonal dentty, an acton that was popular wth the people (Chachavalpongpun, 2009). Buddhsm As they developed, the ntal Tha states gradually nherted a Buddhst culture. Combnng the varous lfestyles and belefs found n ths regon, Buddhsm became the core fath of early Tha socety and the Buddhst fath was recognsed by both the state and the people. Buddhsm played a role n determnng the poltcal system and the affars of the rulng classes that was accepted n early Tha socety (Sarksyanz, 1965). The nfluence of Buddhsm durng the early Tha state perod formed the foundaton for the development of the kngdom of Thaland. Economcs The Tha government ams to acheve a balanced economc sustanablty, and t s currently attemptng to reduce the ncome gap. The large ncome gap n Tha socety has led to an unjust dstrbuton of socal servces, especally for the lower mddle class. In Thaland, n 2009 the rchest 20% generated almost 60% of the ncome, the hghest of all countres n the regon ncludng Indonesa, Laos, Malaysa, the Phlppnes and Vetnam whle the poorest 20% garnered only 4% of the ncome; also the lowest among the group (Fernquest, 2011). The current focus on socal and economc trends n urbansaton has led to the expanson of ndustral actvtes, whch have now surpassed the country s fundamental development n agrculture and servce ndustres. These trends have rased several ssues n relaton to modernsaton, for example n creatng a demand for more consumer products at the expense of locally made goods, servces, and recreatonal actvtes (Lepoer, 1987). In addton, the problem of urbansaton s reflected n the abandonment of land and rural home communtes as people move to the cty seekng employment. Poltcs Snce the foundng of the Kngdom of Sukhotha n 1238, the Tha kngdoms and the Kngdom of Sam were under the absolute rule of a monarchy. The state was transformed nto a consttutonal form after the democratc revoluton n 1932 that led to the ssue of the frst wrtten consttuton. Thaland s poltcal system s conducted wthn the form of a consttutonal monarchy. The kng s head of state and the Prme 126 Performance measurement of workplace change

125 Mnster s the head of government. The judcary s ndependent of the executve and the legslatve branches (Wkpeda, 2012). However, Thas are stll poltcally dvded wth entrenched opnons (Bangkok Post, 2013). Poltcal stablty has been threatened by ongong conflcts between the current government, the opposton and supporters of both groups. In 2006, these conflcts led to a coup and a year-long poltcal crss. 5.3 Tha natonal characterstcs The country s desgnaton Tha means free man. The country s name, the land of the free, s a feature of ts hstory. Despte the European colonal rule n Southeast Asa and Western Indonesa, Thaland was the only country never to be colonzed (Malhotra, 2006). Therefore, for centures the Tha culture was not nfluenced by Western cultures. Ths long and ndependent hstory resulted n specfc forms of behavour whch are seen as beng proper wth regards to the country s fundamental belefs. Ths behavour s ntertwned nto certan patterns that are manfested n several aspects of lfe, such as the way foregn natons, economc matters, relgous practces or famly lfe are dealt wth. These aspects are equally relevant and are lnked wth one another (Benedct, 1943). The enjoyment of lfe The Tha enjoy lfe. They are frendly and cheerful as can be seen n the way they greet each other n daly lfe. They seem to have no worres, and may be seen as carelessness (Campbell, 1902). Ther festvals are occasons of lvely celebraton and of sensory enjoyment. Whether the occason s the kng s brthday or the tradtonal Tha New Year or relgous holdays, these events wll be celebrated wth an orchestra, theatrcal performances and dsplays of freworks. The Tha are peace-lovng, as s descrbed n the Tha natonal anthem. Prvate dsputes also characterstcally pass off wthout volence. However, poltcal conflcts may cause ncreasng confrontaton wth opponents, together wth ncreasng levels of hostlty. Mert makng Mert s a concept n Buddhsm/Hndusm; t s the result of havng performed good deeds, acts or thoughts and mert s accumulated throughout one s lfe or n subsequent ncarnatons (Wkpeda, 2013b). Mert-makng s an ethcal precept of a good lfe n Tha Buddhsm. Mert can be ganed n a number of ways, for example specal acts such as gettng on well wth your neghbours. The nterpretaton of mertmakng for the Tha s that f a person exercses suffcent care n followng the rules, he/she need not be anxous (Benedct, 1943). 127 Comparson between Tha and Dutch cultural settngs

126 Buddhsm places a great emphass on the mnd. Angush n the form of remorse, anxety or gult has to be avoded n order to cultvate a calm and peaceful mnd. A lay Buddhst should cultvate good conduct by tranng n what are known as the Fve Precepts ; these are tranng rules that should not be broken. The practce of precepts helps to cultvate compasson, generosty, contentment, truthfulness and mndfulness. All Buddhsts should try to observe at least fve precepts n order to elevate themselves morally and sprtually. The fve precepts are (BuddhaNet, 1996): 1 to avod takng the lfe of bengs. Ths precept apples to all lvng bengs not just humans. All bengs have a rght to ther lves and that rght should be respected. 2 to avod takng thngs not gven. Ths precept goes further than mere stealng; people should avod takng anythng unless they can be sure that s ntended for them. 3 to avod sensual msconduct. Ths precept s often mstranslated or msnterpreted as relatng only to sexual msconduct, but t covers any overndulgence n any sensual pleasure such as gluttony as well as msconduct of a sexual nature. 4 to refran from false speech. As well as avodng lyng and decevng, ths precept covers slander and speech whch s not benefcal to the welfare of others. 5 to abstan from substances whch cause ntoxcaton and heedlessness. Ths precept s n a specal category, as t does not nfer any ntrnsc evl n alcohol tself, but ndulgence n substance lke these could be the cause of breakng the other four precepts. The Concept of Thaness Lke all countres n Asa and the Pacfc regon, Thaland has nevtably been caught up n the changes occasoned by the expanson of Western nterests and the nfluence of Western deas. When Thaland had to confront Western culture, Thaland s rulng class chose to comply wth Western-style materal progress and to mantan most parts of Thaness n culture by assgnng new defntons to varous consttuent parts of Thaness to prevent t from beng seen as barbarc (Sattayanurak, 2005). In 1913, Kng Rama VI defned the Tha naton as a naton that comprses people whose lvelhood was ntrcately lnked wth Tha culture and who were loyal to the heart of Thaness, whch conssts of the royal nsttuton and Buddhsm. He emphassed that ths Thaness s as unversal as the European cvlsatons because t s based on Buddhsm that s superor both n terms of ratonal dogma and Buddha s royal lneage. Ths s one of several defntons of Thaness that stresses the core value of Buddhsm n Tha custom. In ths way, no matter how much the socety develops, the Tha way of lfe wll stll reman because the socety has been rooted n kndness, generosty and harmony under the unfyng sprtual centres of kngshp and Buddhsm. It s not only these values that help drect the Thas toward vrtue, but the Tha socety has a whole wll then have the effcent mechansms for governng the naton at the same tme (Sattayanurak, 2005). 128 Performance measurement of workplace change

127 5.4 The fve dmensons of Tha culture Hofstede (1997) stated that culture s a catchword for all those patterns of thnkng, feelng, and actng that not only refne the mnd, but also the ordnary thngs n lfe such as greetng, eatng, showng or not showng feelng, keepng a certan physcal dstance from others, sexual actvty, or mantanng body hygene. The nfluence of the Tha hstorcal context and natonal characterstcs such as Buddhsm, mert makng and enjoyment of lfe can be used to delneate fve dmensons of natonal culture. Tha natonal culture can be descrbed n fve dmensons: power dstance, ndvdualsm, masculnty-femnnty, uncertanty avodance and long term orentaton (Fgure 35) Power Dstance Indvdualsm Masculnty Uncertanty Avodance Long term Orentaton Fgure 35 Cultural ndex scores of Thaland (Hofstede, 2001) 1 Power dstance Although Thaland scores 64 on the Power Dstance Index, whch s slghtly lower than the average for Asan countres, the hgh score ndcates a hgh power dstance socety (Hofstede, 1997). Hofstede descrbes power dstance as the degree of centralsaton of authorty and the degree of autocratc leadershp. Power dstance socety accepts nequaltes. Each rank n ths type of socety has ts prvleges. Employees offer loyalty and respect for ther superors n return for protecton and gudance. Ths can lead to paternalstc management n Tha busness culture; a patronage system s the preemnent characterstc of Tha busness culture (Cooper, 1994, Teeraparppun, 1998, Unger, 1998). Paternalsm demonstrates a more complex relatonshp between the nvolved partes than what an organsaton needs. There are two partes n such a relatonshp: one s a patron who protects, helps, cares and gudes the other party, who s a subordnate loyal. Paternalstc relatonshps may develop wthn and also among organsatons; ths enables the partes nvolved to exchange certan monetary, socal and other types of resources (Mead, 1994). 129 Comparson between Tha and Dutch cultural settngs

128 Thas accept wde dfferences n power n ther organsatons (Komn, 1990) and subordnates wll not nfluence ther superor s deas or decsons (Holmes and Tangtongtav, 1995). The Tha management style s based on the mantenance of formal organsatonal relatons through a herarchcal structure. The relatonshps are also based on goodness and the norm n that the younger has to respect the older (Kanchananga, 1979, Hofstede, 1984, Vvanchakul and Udomsr, 1990). Thus, the atttude towards managers s more formal, the nformaton flow s herarchcal and controlled. In addton, a hgh power dstance socety s also reflected n the bureaucraces of Tha organsatons (Serbshon, 1994). 2 Indvdualsm Wth a score of 20 on the Indvdualsm Index of Hofstede, Thaland s a hghly collectvst country (Brown, 1995, Hofstede, 1983). In collectve socetes, people are ntegrated nto strong cohesve n-groups whch protect them n exchange for unquestonng loyalty. Ths s also manfest n a close long-term commtment to the member group (a famly, extended famly, or extended relatonshps). Subordnates are requred to accept a superor s vews and to conform (Hofstede, 1984). As a result, a superor s assumed to be an ntator and a decson-maker, whle a subordnate s assumed to be an obedent person (Vvanchakul and Udomsr, 1990). The socety fosters strong relatonshps where everyone takes responsblty for fellow members of ther group. Personal and famly connectons play an ntegral role n Tha busness. Vews and opnons have a greater mpact on busness management when expressed by members of famly or n-group members (Jrachefpattana, 1996). In the collectve socety, the Tha workers expect an organsaton to take care of them lke a famly and to protect ther benefts. They perceve that the organsaton nfluences ther well-beng (Hofstede, 1984). The Tha are very senstve to not shamng others n front of ther group. Personal relatonshps are key to conductng busness and t takes tme to buld relatons, thus patence s necessary as well as avodng an open busness dscusson on frst occasons (Hofstede, 2001). 3 Masculnty-Femnnty Thaland s consdered to be a femnne socety. The score of 34 on the Masculnty ndex s the lowest score among the Asan countres (53) and the world n average (50). Femnnty represents a socety n whch emotonal gender roles overlap: both men and women are supposed to be modest, tender, and concerned wth the qualty of lfe. A femnne socety s one where qualty of lfe s a sgn of success, and standng out from the crowd s not admrable. It s a socety that s less assertve and compettve, compared to one n whch these values are consdered to be more mportant and sgnfcant. Moreover, ths can be delneated n qute a negatve connotaton by the term coolness of Tha behavour; t s a knd of sangfrod and mples coolness of atttude toward work, responsblty, or trouble (Landon, 1939). 130 Performance measurement of workplace change

129 4 Uncertanty avodance Hofstede (2001) defnes uncertanty avodance as the extent to whch the members of a culture feel threatened by uncertan or unknown stuatons. The uncertanty avodance dmenson has to do wth the way that a socety confronts an uncertan future: should the future be controlled, or should t just happen? Socetes n dfferent cultures deal wth ths anxety n dfferent ways. Countres that have hgh uncertanty avodance tend to avod uncertan stuatons. Ths uncertanty s not just for ndvduals, but t can be shared wthn the communty or across socety as a whole. Thaland scores 64 on ths dmenson, representng a preference for avodng uncertanty. Strct rules, polces and regulatons can be appled to mnmse ths hgh level of uncertanty. The goal of the populaton n ths culture s to control the envronment n order to elmnate the unexpected. From a survey n Thaland, t was found that superors n Tha organsatons accept that they have to make decsons n an authortaran way (Holmes and Tangtongtav, 1995). The authortaran manager s enttled to make decsons about what he/she thnks s correct, and to gude subordnates. Uncertanty avodance n Thaland s usually assocated wth avodance of decson-makng. Decsons made may lead to unwanted tasks and responsbltes that subordnates do not want to take. Furthermore, undesrable results from the decson may cause uncertanty of job securty and blame on the subordnate. As a result, subordnates tend to avod takng on more responsbltes n order to avod mstakes that mght happen. Thus decson-makng n Thaland s delegated upwards. A myrad of major and mnor decsons can be found on the desks of those at the top of the herarchy (Holmes and Tangtongtav, 1995). 5 Long-term orentaton The long-term orentaton dmenson can be nterpreted as beng able to deal wth socety s search for vrtue; the extent to whch a socety shows a pragmatc futureorented perspectve rather than a conventonal hstorcal short-term pont of vew (Hofstede, 2001). Long-term orentaton s reflected by respect for tradton and nequalty between people. Workng hard and havng a sense of moderaton are domnant n ths type of culture. Mantanng personal relatonshps and havng a network s mportant. Thaland has a score of 56 on ths dmenson, and can therefore be consdered as a long-term orented culture, although ths s qute moderate compared wth other Asan countres. Not losng face s key and a protocol n the non-confrontatonal behavour of Tha busness culture. Komn (1990, p.135) mentons that the face s dentcal wth ego and s very senstve. Snce the Tha place tremendous emphass on face and ego, preservng one another s ego s the basc rule of all Tha nteractons, both on the contnuum of famlarty-unfamlarty, and the contnuum of superor-nferor, wth dfference only n degree. The Tha try to avod conflct and crtcsm at all tmes due to ths aspect of face savng (Thanasankt and Corbtt, 2002). In partcular, ther 131 Comparson between Tha and Dutch cultural settngs

130 emphass on long term orentaton cause the Tha not to look for one truth, whch helps them be flud n deadlnes and tmescales, and pragmatc n negotatons (Hofstede, 2001). 5.5 Dutch hstorcal context Hstorcal background In the second half of the sxteenth century, the Kng of Span nherted all of the provnces that were ncluded n the terrtory of The Netherlands. Phlp II was a ruler who beleved n a powerful central authorty and based hs decsons on the ethcal and deologcal prncples of the one sole relgon, that of the Roman Catholc Church. Instead, ths central role was played by Wllam of Orange, the patrarch of the Dutch royal famly. Wllam of Orange was a representatve of the kng n one of the provnce, Holland. In The Netherlands at that tme, there was much sympathy for Protestantsm, especally that of John Calvn (Lemeux, 2007). The revolt aganst Phlp II brought about the formaton of the Republc of the Seven Unted Netherlands, a formaton that s smlar to the European Unon today. In ths republc, no one could assemble suffcent power to take on a poston of domnance, and enemes were only nvoked when too much wealth and power was expressed. A poltcally hgh-rankng poston could only be based on nfluence and not on power. Nowadays, The Netherlands s no longer a unon of states, but nstead t s a democratc state whose unty s symbolsed by the Monarch (Lemeux, 2007). Calvnstc phlosophes Although Dutch socety has become strongly secularsed, t s stll greatly nfluenced by Calvnstc phlosophes (Lemeux, 2007). Calvnsm has been both the relgous and deologcal foundaton of the Dutch socety snce the fght aganst the Catholc Spansh court n the Eghty-Year War ( ). There were central condtons to beng successful n Calvnstc phlosophes: thrft, sobrety, tolerance and realty, whle refranng from glamour and splendour. Nowadays, t s stll the core of Dutch culture and has great nfluence on Dutch everyday lfe (Hofstede, 1983a, d Irbarne, 1989, Lawrence, 1991, Van Iterson and Ole, 1992, Ole, 1996, Pot, 1998). Calvnsm was embraced n a lberal way by a majorty of the elte. Even though Calvnsm emerged as the domnant relgon after the revolt, t never had the status of state relgon. The strong protestant work ethc wth suggestons of moderaton n all aspects of lfe, decson-makng by consensus, and the stymeng of ndvdualsm, s stll evdent today (Lemeux, 2007). 132 Performance measurement of workplace change

131 Trade As a hstorc pont of commerce, the sea has charactersed The Netherlands as a tradng naton. Overseas trade brought the naton ts prosperty, whch led to the Golden Age n the seventeenth century. The western part of the country, where many Dutch ports have long been stuated, s stll the current economc hub (Meekanon, 2002). As a result of the ndustral revoluton n 1880, The Netherlands was able to close the ndustral gap wth other European countres by 1914 (Lawrence, 1991, Van Iterson and Ole, 1992). Before 1880, only bankng, nsurance and fnance had prospered n The Netherlands (Van Iterson and Ole, 1992, Goey, 1999). Nevertheless, t was not untl 1914 that the naton had reganed ts orgnal strengths n logstc busness, trade, fnance and agrculture (Lawrence, 1991, Van Iterson and Ole, 1992). Pllars Many Dutch socal nsttutons such as newspapers, schools, unverstes, hosptals, sports clubs, trade unons, banks, broadcastng organsatons, professonal assocatons and poltcal partes were organsed accordng to formal relgous (Roman Catholc, several Protestant denomnatons, humanstc) and deologcal (lberal, socalst, communst) loyaltes. Ths phenomenon s called Verzulng (pllarsaton) (Meekanon, 2002). Pllarsaton s the relgous, socal, poltcal and cultural segregaton of Dutch and Belgan socety. These socetes were dvded nto several segments or pllars accordng to dfferent relgons or deologes (Wkpeda, 2013c). Pllarzaton has had a strong nfluence on both the nsttutons and on aspects of Dutch socal lfe. Durng the last decade, when some pllars merged n order to gan more barganng power, for example the merger between Catholc and Protestant poltcal partes to form the CDA (Chrstan Democratc Appeal) n 1977, the Dutch do not tend to adhere to a sngle standpont (Lawrence, 1991, Van Iterson and Ole, 1992, Kng, 1993, Hampden-Tumer and Trompenaars, 1994, Ole, 1996). 5.6 Dutch natonal characterstcs In the 1930s and 1940s, a number of academc publcatons were wrtten that focused on the Dutch natonal character (Van Heerkhuzen, 1980). These books gave nsghts nto the specfcty of Dutch culture, by answerng the queston what s typcally Dutch? How does the world vew and the behavour of the Dutch dffer from that found n other natons and why? (Van Gnkel, 1992). The promnent Amercan Anthropologst, Ruth Benedct (1974), portrayed the typcal Dutchman as a moralsng, ndvdualstc, lberty and peace-lovng, tolerant, self-assured, proud, ronc, purtan, tdy, prudent, thrfty, conservatve, domestc, serous and somewhat melancholy person, who s very conscous of class and socal dstnctons. 133 Comparson between Tha and Dutch cultural settngs

132 Moralstc, ndvdualstc, fond of freedom and peace-lovng and tolerant In her observatons about the Dutch natonal character, Benedct noted that the Dutch were convnced of beng n the rght, No country n Europe s so jealous of ts moral rghtness as The Netherlands (Benedct, 1944b). The typcal Dutchman stands up for hs rghts and does not submt to dctaton. However, the Dutch do not resst authorty tself as long as the rules apply to everyone. They accept nnumerable dctatons from above provded that they apply equally to all ctzens (Benedct, 1944a). Accordng to Benedct (1974), the ndvdualstc atttude, the partcularsm and the moralsm of the Netherlanders are nextrcably ntertwned. Self-assured and proud The Dutch are self-assured, wth an extreme convcton of havng rght on ther sde. They are proud and sometmes ths leads to feelngs of superorty. These feelngs can be traced back to the seventeenth-century hstory (the war of lberaton aganst Span) and to the Dutch colonal empre. The feelng of superorty over other small European natons derves from the noton that The Netherlands controlled an extensve overseas regon. In addton, the Dutch are also proud of ther achevements n the feld of water management and control. The Dutch boast that n other countres, God made the land, but the Dutch made Holland (Benedct, 1944a). Prudent, thrfty and conservatve The Dutch are charactersed by warness and crcumspecton nstead of foolhardness. The Dutch are prudent, as s seen n ther proverb, Een stuvertje gespaard s een stuvertje gewonnen (a penny saved s a penny earned). Dutch conservatsm can be descrbed by ther character trats. The Dutch are conservatve prmarly because they have somethng they value to conserve. Ther lbertes are not threatened ether by the Crown, the noblty, or the Church (Benedct, 1944b). Home and famly-orented Domestcty s a promnent feature of Dutch socal lfe, Holland s pre-emnently a country of dependable and hosptable homes (Benedct, 1944a). Benedct (1974), ponted to another proverb whch she consders typcal, zoals het klokje thus tkt, tkt het nergens (the clock tcks at home lke nowhere else). Moreover, Dutch women are devoted homemakers and are valued for ther domestc vrtues. They are careful, bountful and responsble mothers. Serous The Dutch are serous. Benedct (1974) mentoned that the Dutch serousness s rooted n ther upbrngng: educaton s an oblgaton, not a pleasure. Educaton s taken very serously, and turns the unformed chld nto a formed person. She further commented that the only form of lghtweght behavour on the part of Dutch men was flower-growng and pantng. 134 Performance measurement of workplace change

133 Emphass on equalty Because merchant tradtons have long been domnant n The Netherlands, the Dutch tend to emphasse egaltaransm and respect for dfferences between people. To reach an agreement, the Dutch usually convnce each other usng facts and fgures n the process of barganng, and exchangng nformaton among several partes. In addton, these tradtons lead to lack of personal authorty and loyalty. The emphass on equalty causes nformalty to be as mportant as formalty (Meekanon, 2002). Conformty The Dutch consder ndvdualty n terms of ther ndvdual accountablty and contrbuton to socety regardless of the self-mportance and self-nterest relatng to ther well-defned postons n socety. Thanks to the nfluence of Calvnsm, conformty s even more mportant than the ndvdual excellence n The Netherlands. Personal ambton s normally expressed through charty (Hofstede, 1985a, Lawrence, 1991, Van Iterson and Ole, 1992, Kng, 1993, Hampden-Tumer and Trompenaars, 1994). 5.7 The fve dmensons of Dutch culture The Dutch cultural survey conducted by Hofstede (2001) revealed fve dmensons of natonal cultures: power dstance, ndvdualsm, masculnty-femnnty, uncertanty avodance and long term orentaton (Fgure 36). An overvew of these fve dmensons of Dutch culture s gven below Power Dstance Indvdualsm Masculnty Uncertanty Avodance Long term Orentaton Fgure 36 Cultural ndex scores of The Netherlands (Hofstede, 2001) 135 Comparson between Tha and Dutch cultural settngs

134 1 Power dstance Wth a score of 38, The Netherlands scores low on ths dmenson; ths can be descrbed as the Dutch style: beng ndependent, herarchy for convenence only, equal rghts, accessble superors, coachng leadershp, management facltates and empowers. Small power dstance socetes treat nequalty as undesrable and try to reduce t where t arses (Hofstede, 1982). In the workplace, power s decentralsed and managers count on the experence of ther team members, and employees expect to be consulted. In partcular control s dslked, and atttudes towards managers are nformal and on a frst-name bass. Communcaton s drect and partcpatve (Hofstede, 2001). 2 Indvdualsm Indvdualsm deals wth the degree of nterdependence a socety mantans among ts members. It has to do wth whether people s self-mage s defned n terms of I or We. People n ndvdualst socetes are supposed to look after themselves and ther drect famly only. On the other hand, people n collectvst socetes belong to n-groups that take care of them n exchange for loyalty (Hofstede, 2001). Lke many other Western countres, The Netherlands leans towards ndvdualsm. The Netherlands, wth a score of 80 s an ndvdualstc socety. There s a strong preference for a loosely-knt socal framework. Meekanon (2002) mentons that the Dutch tend to evaluate a person on the ground of ndvdual accountablty, and value people for ther work and contrbuton to socety as ndvduals; they tend to respect dfferences between people. Despte pllarzaton n The Netherlands, the Dutch do not have a great afflaton wth ther confessonal lnes (Hofstede, 1983a, d Irbarne, 1989, Kezer et al., 2000). Dutch busness culture separates work from prvate lfe. In the workplace, the relatonshp between employees and employers s busness-lke and t does not presuppose frendshp. Loyalty to a company comes from perqustes or frnge benefts, career ladder, job securty, but not from emotonal relatonshps wth the company (Hofstede, 1983a, d Irbarne, 1989, Van Iterson and Ole, 1992, Hampden-Tumer and Trompenaars, 1994, Kezer et al., 2000). Decson-makng and responsblty are clear n most Dutch companes (Hofstede, 1983a, d Irbarne, 1989, Kezer et al., 2000). In ndvdualstc socetes, offence causes gult and a loss of self-esteem: the employer/employee relatonshp s a contract based on mutual advantage, hrng and promoton decsons are supposed to be based on mert only, and management s the management of ndvduals (Hofstede, 2001). 3 Masculnty-Femnnty The Netherlands scores 14 on ths dmenson and as such can be consdered a femnne socety. Ths means that the domnant values n socety are carng for others and qualty of lfe. It s a socety where qualty of lfe s a sgn of success, however, standng out from the crowd s not admrable. In femnne countres, t s also mportant to mantan a good work-lfe balance (Hofstede, 2001). 136 Performance measurement of workplace change

135 Dutch socety tends to be modest as there s sympathy for the weak, and concern for lvng and envronmental qualty. The Netherlands s a moderately compettve socety, however, strong ambton, assertveness and the dea that the wnner takes absolutely everythng are undesrable n Dutch socety. Thanks to the weak sex segregaton, aggresson, represents manlness and s found to be offensve. The Dutch always restran ther emotonal expresson, both n terms of condemnaton and swearng n socal places (Meekanon, 2002). Due to the Dutch norm of sympathy for the weak, most Dutch companes do not lay off ther employees n tmes of dffculty, but nstead they try to reorganse. Dutch managers are supposed to sympathse wth ther subordnates. They prefer to use persuason to motvate ther subordnates (Hofstede, 1983a, Hofstede, 1985a, Lawrence, 1991, Kng, 1993, Hampden-Tumer and Trompenaars, 1994). The Dutch work to lve, and hardy express ther ambton. They tend to overlook ther career plannng, management development and demand for mprovng remuneraton. If they have nothng to do at the offce, they go home (Hofstede, 1983a, d Irbarne, 1989, Lawrence, 1991, Kng, 1993, Hampden-Tumer and Trompenaars, 1994, Kezer et al., 2000). 4 Uncertanty avodance Hofstede (1982) descrbes the state where socetes have to deal wth the unknown future, whether they control t or let t happen, as uncertanty avodance. Ths ambguty leads to anxety, and dfferent cultures have learnt to deal wth ths anxety n dfferent ways. Uncertanty avodance s defned as the extent to whch the members of a culture feel threatened by ambguous or unknown stuatons and have created belefs and nsttutons that try to avod (Hofstede, 2001). The Dutch score of 53 s lower than n Latn countres, for nstance both Latn-European and Latn-Amercan cultures. Ths s n contrast to Asan and Afrcan countres, and several European countres (Germany, Austra and Swtzerland) whch score farly hgh. The need for order s weak n The Netherlands where the coexstence of dfferent doctrnal allegances s a fact of lfe. The Dutch admt that several truths can exst sde by sde. They are lkely to be open to dfferent thoughts n socety and accept the concept of unty through dversty. Moreover, they can accept that the new system and the former one can co-exst. Unconventonal deas are acceptable n most Dutch companes when they formulate corporate strategy and develop new markets and products (Hofstede, 1983a, d Irbarne, 1989, Lawrence, 1991, Kezer et al., 2000). 5 Long-term orentaton Long-term orentaton can be defned as the extent to whch a socety s focused on the future as opposed to the past and present. Socetes n long-term orentaton dmenson promote vrtue and persstence and focus on future rewards. Shortterm orentaton socetes emphasse the past and present and foster a respect for tradton (Hofstede, 2001). Wth a score of 44, Dutch culture tends to be a short term orentaton culture. The Dutch preference for short-term orentaton may reflect n ther nclnaton towards return on nvestment rather than return on favours. 137 Comparson between Tha and Dutch cultural settngs

136 Most Dutch top executves tend to expect an mmedate result from the strategy mplementaton that reflects the nfluence of ths dmenson. Accordng to Wemer (1995), most Dutch frms tend to set goals on the bass of a past-orented projecton. In addton, ther performance measures emphasse past-orented goals such as proft and fnancal goals. 5.8 Comparson between Tha and Dutch cultures on the fve dmensons Ths secton concerns Tha and Dutch cultural settngs based on the fve dmensons that have been descrbed for each country. As s to be expected from ther dfferent ethncs and cultural roots, Thaland and The Netherlands are dfferent n many aspects. Comparatvely large dfferences can be seen n the dmensons of power dstance, ndvdualsm and masculnty. The other two dmensons of uncertanty avodance and long-term orentaton show less dfference. Table 23 presents the cultural dmensons of Thaland, The Netherlands and other Asan and European countres. Country Power Dstance Index Indvdualsm Index Masculnty Index Uncertanty Avodance Index Long-term Orentaton Index Hong Kong Indonesa Phlppnes Malaysa Sngapore Thaland The Netherlands Great Brtan Germany FR Austra Italy Belgum France Span Table 23 Cultural ndex scores of Thaland, the Netherland and other countres (Hofstede, 2001) Power dstance The asserton of equalty s strong through many aspects of Dutch culture, whereas herarchy s preemnent n many dmensons of Tha socetal structure. The 138 Performance measurement of workplace change

137 Netherlands s the only country n Western Europe that has long been free of feudalsm. Dutch socety s not consdered as havng a herarchcal structure due to the nfluence of pllarzaton. In contrast, Thaland has been under the absolute rule of the kngs for centures, and untl recently under a consttutonal monarchy. The herarchcal structure of socety s reflected n the dfferences of power and status n ts socetal members. A patronage system s deeply-rooted n Tha socety. Inequalty and respect for authorty s easly accepted n Tha culture. Most Dutch organsatons tend to decentralse ther decson-makng and operaton. Managers count on the experence of the team members whereas the majorty of Tha frms are centralsed. Most Dutch managers and ther subordnates can dscuss on equal terms, but most Tha managers and ther subordnates have to respect the corporate herarchy (Lawrence, 1991, Kezer et al., 2000). Respect for the elderly also has a role n Tha busness culture. Most Dutch chef executves tend to start a dscusson n order to try and convnce ther subordnates about the need to moblse and take correctve acton, whereas n Thaland, senor executves tend to ether make use of ther drect postons or personal authorty to moblse ther workers. Indvdualsm Dutch culture s clearly ndvdualstc and the affrmaton of ndvduals can be strongly seen n many aspects of Dutch lfe. Under the nfluence of Calvnsm, the Dutch usually value people for the work they do and ther contrbutons to socety as an ndvdual (Meekanon, 2002). In contrast, n the Tha collectvst socety, there s a patronage system and personal connectons play a major role n Tha organsatons. The Dutch prefer to have decson-makng based on exchangng nformaton and a consensus that has been reached among several partes (Meekanon, 2002). In Tha culture, the group leader s assumed to be an absolute decson-maker. Accordng to Hofstede (1983a), the Dutch do not have a great emotonal bond or afflaton wth groups. In contrast, the vews and opnons of one s famly or n-group members have a strong nfluence on the Tha busness culture. Personal relatonshps are an advantage when conductng busness n Thaland. Masculnty-Femnnty Although both the Tha and Dutch culture are consdered femnne, The Netherlands has a much lower score on the Masculnty ndex (14) compared to Thaland (34). In ths dmenson, the Dutch norm of sympathy for the weak s vsble n the workplace n the relatonshp between superors and subordnates. In Dutch busness culture, persuason s used to motvate workers. Femnsm n Tha socety has a dfferent and more negatve connotaton, that reflects a lack of assertveness or ambton towards work and responsblty. 139 Comparson between Tha and Dutch cultural settngs

138 5.9 Conclusons Lterature concernng the ethnc backgrounds, geographcal locatons and hstorcal contexts of Thaland and The Netherlands can provde a better understandng of the dfferences between the Tha and Dutch culture. It s valuable to have nformaton on the relgous, poltcal and socal nfluences that mpact Tha and Dutch culture so as to compare the dfferences n the socal norms or core values of both countres. An understandng of Tha and Dutch cultural settngs wll provde background data regardng certan behavours and belefs that can be used to support an analyss of the emprcal fndngs relatng to natonal culture. However, culture s not statc, but tends to change over the perod of tme. For example, pllarsaton has almost vanshed or less strct than the prevous decade. Scores on natonal culture ndexes from Hofstede (2001) are average and only show an overall smplfed pcture from a much more complex realty. Culture can be dfferent n subgroups and people dffer ndvdually from natonal culture. Ths chapter ncludes the lterature from the past 40 years (Benedct, 1974). However, accordng to Hofstede (2011) culture change wll need a much longer perod around years. The comparsons between Tha and Dutch natonal characterstcs n Hofstede s fve dmensons (.e. power dstance, ndvdualsm, masculnty-femnnty, uncertanty avodance and long term orentaton) wll be used to compare the fndngs from the natonal culture surveys of the three case studes. These two countres share some smlar aspects of cultural dmensons although they also dffer n many facets of everyday lfe. Analyses of hstorcal contexts, natonal characterstcs and cultural dmensons are mportant when tryng to account for the smlartes and dssmlartes between organsatons n two dfferent cultural contexts. 140 Performance measurement of workplace change

139 141 Comparson between Tha and Dutch cultural settngs

140 Part 2 Emprcal research 142 Performance measurement of workplace change

141 143 Comparson between Tha and Dutch cultural settngs

142 144 Performance measurement of workplace change

143 6 Case 1: Dhanarak Asset Development, Bangkok,Thaland 6.1 Introducton Ths chapter presents a case study conducted n Thaland for Dhanarak Asset Development company lmted (DAD) on the mpact of workplace change, fve months after the organsaton had moved to new offce buldngs. The study ams to dentfy performance measurement frameworks, crtera and performance measures/kpis of the case organsaton, and to collect new data about employees responses to the changed work envronment. Another purpose s to explore the contextual backgrounds of organsatonal and natonal culture that may have an mpact on workplace performance. Fndngs from ths case study wll be used for a cross-case comparson wth another Tha and Dutch case study n Chapter Research methods Data were collected usng ntervews, document analyss, observatons and three separate questonnares. Data on performance measurement were collected from company reports and nformaton from the case organsaton human resource manager. The mpact of workplace change was examned usng the work envronment dagnoss nstrument (WODI) questonnare whch evaluates employee responses to the changed work envronment n three areas: employee satsfacton, perceved productvty support and prortsed aspects (Maarleveld et al., 2009). Ths tool has been descrbed n detal n Chapter 3. The Organsatonal Culture Assessment Instrument (OCAI; Cameron and Qunn, 2006) was used to assess organsatonal culture. Natonal culture was measured usng the Value Surveys Module 94 (VSM94) (Hofstede, 1997). Both the OCAI and VSM94 questonnares have been descrbed n Chapter 4. Documents used for the analyss nclude the company s annual report, roles and responsbltes handbook, code of conduct handbook, and employee satsfacton and atttude survey. A sem-structured ntervew was developed to be used for ten staff ntervews wth the chef marketng offcer, senor specalst, publc relatons manager, 145 Case 1: Dhanarak Asset Development, Bangkok,Thaland

144 human resource manager, procurement and property manager, four senor offcers and one general offcer. The ntervewees were asked about performance measurement and ther percepton of workng envronment and culture. Observatons were conducted by a walk-through the workplace and by recordng where and when certan behavour occurred. The research was conducted from September to October Case descrpton DAD s a state-owned enterprse whch was establshed n 2004 as a part of the Tha Mnstry of Fnance. It was set up to ntate, construct and operate the new Bangkok government buldng-complex. The DAD vson s to manage the government buldngs and other government assets accordng to government polcy. The company s msson covers two man areas: 1) to manage government assets accordng to government polces, and 2) to develop the government buldng-complex as a new dmenson of government housng. The man organsatonal objectves are: 1) to acheve economes of scale from the asset management of the government buldng-complex, and 2) to provde value for money to the clent. Fgure 37 Exteror of the government complex, new stuaton. Source: Organsaton structure Fgure 38 shows the DAD organsaton structure wth fve departments: 1) polcy, 2) admnstraton, 3) busness development and marketng, 4) fnance and 5) operatons. The members of the organsaton s commttee are apponted by the government and perform an admnstratve role. Ths commttee then assgns resources to the rsk management and audt commttees. 146 Performance measurement of workplace change

145 Commttee Rsk management commttee Admnstratve commttee Selecton and Remuneraton Commttee Managng Drector Audt commttee Polcy department (Offce of the Managng Drector) Rsk management Senor specalst Internal audt dvson Plannng secton Specalst Specalst Accountng audt secton Drectng secton Senor offcer Performance audt Secretary secton Operaton department Busness development & marketng department Admnstraton department Fnance department Project management Buldng control Faclty management Busness development Marketng Human resource Procurement and property IT dvson Law dvson Accountng Fnance Project management secton 1 Project management secton 2 Project management secton 3 Buldng control secton 1 Buldng control secton 2 Securty Buldng servce Safety, Health and Envronment Strategc & Busness plannng Marketng analyss Customer relaton Publc relaton Busness secton Personnel & actvty relaton Personnel development Parcel secton Property regstraton & admnstraton Montor & Mantenance IT development Specalst Senor offcer General accountng Admnstratv e accountng Tax accountng Fund rasng Fnancal management Receve - payment Fgure 38 Organsatonal structure Work process DAD employs 139 staff workng n fve departments. Work processes can be descrbed as routne offce work, workng hours from 9 to 5, wth full-tme occupancy. The general offce work has standard workspaces n an open plan layout. An excepton s the operatons department, where the employees sometmes work outsde the offce, for example at clent offces or at the constructon ste. The operatons department s responsbltes are to operate and mantan the buldng servce engneerng of the government complex. Work patterns can be descrbed as project or group work, requrng the use of PCs and group equpment (e.g. whte board, projector) wth regard to the dfferent tasks of each department. 147 Case 1: Dhanarak Asset Development, Bangkok,Thaland

146 6.4 Workplace change Workplace before the change DAD was located n a twenty-year-old, mult-tenant buldng on the Rama 6th Road n the cty centre of Bangkok. Ths buldng was constructed n 1992 to accommodate the Treasury department of the Mnstry of Fnance. DAD, a subsdary of the Treasury department, was located n ths buldng. Nearby amentes nclude shops, restaurants, banks, newsstands, convenence stores and hosptals. The buldng locaton can be accessed drectly by publc transportaton (bus and sky tran). The area s surrounded by other government offces, for example the offce of the Mnster of Fnance, the Comptroller General s department, the State Enterprse polcy offce, the Publc Debt management offce, and the Fscal Polcy offce. Ths area suffers from traffc congeston at peak hours. The DAD workplace was a conventonal offce buldng wth a smple concrete structure; a feature of government buldng desgn. The dfferent departments shared the space n a cellular offce layout on the 7th floor (see Fgure 39). The cellular offces vared from prvate offces for senor managers to offces for a group of fve employees. The lmted floor area wth a large number of employees workng n several departments resulted n a hgh densty workplace. Space for storage and archves was lmted. Photocopers and fax machnes were located n front of the offce as shared facltes and a pantry was located n the workplace. The offce area was equpped wth a splt type ar-condtonng system, however, the hgh densty workplace resulted n a poor ndoor ar qualty. Car parkng space was lmted and only avalable to hgher level personnel. Several factors affected the decson to change the workplace, ncludng the unfavourable buldng locaton, offce space congeston, car parkng, and the requrement for havng one s own workplace. The man reason for the move was to cope wth the ncreasng demand for offce space resultng from the growng number of employees. 148 Performance measurement of workplace change

147 Fgure 39 Fgure 39a (1-2) Floor plan and exteror of the DAD workplace before the change Fgure 39b (3-4) Typcal workstaton and meetng room, old stuaton Preparaton and mplementaton process The preparaton for movng to a new offce started wth a meetng of members of DAD from each department. The meetng was attended by drectors, managers, senor offcers and general offcers wth the head of the department servng as charperson. The process started wth notfcatons, and nstructons were gven to all attendees regardng a clear understandng of ther roles and responsbltes. The man tasks and responsbltes of the relocaton ncluded: Personnel from project management and buldng control dvson to oversee archtectural and M&E works of the new offces Facltes management dvson personnel to oversee the cleanlness of the locaton IT dvson personnel to be n charge of ICT servces, such as telephone and PCs A dvson secretary was apponted coordnator for contacts wth a removal company In the new buldng, personal workstatons were arranged wth regards to the work processes of each workng group n a departmental unt. Durng the meetng, employees were able to dscuss and choose the locaton of the approprate workstatons n ther workng groups. Before the move, an nspecton team examned the new offces and reported any correctons where necessary. The faclty management team was responsble for cleanng the locaton two days before the 149 Case 1: Dhanarak Asset Development, Bangkok,Thaland

148 move. The employees packed ther materals and documents n boxes provded by the removal company. A dvson secretary contacted the removal company and requested permsson to enter the new offce locaton. Subsequently, boxes and offce furnshngs were moved to the specfed departmental unt. Durng the move, the nspecton team checked to see f everythng was n place, the cleanlness, the M&E, and the IT and securty systems. The project management personnel were n charge f changes needed to be made. The organsaton had reserved spaces for future storage requrements and new employees, whch were calculated n advance based on the organsaton structure. After the move, employees were not able to change ther workstatons from the plans that had been agreed upon before n the meetng. Workplace after the change The relocaton to offces n the government buldng complex facltated the management and operaton of the complex, as set out n the company s msson. Another, more psychologcal reason, was the desre to be accommodated n a sngle tenant buldng; there was no longer a need to share the workplace wth other organsatons as had been the case n the former stuaton. In addton, support facltes (.e. computers, IT system) and amentes (e.g. banks, post offce, hosptals, shops, restaurants, food outlets, open meetng spaces) are all avalable n the new locaton. The new locaton accommodates the fve departments n three separate zones n two buldngs. Although there were fewer employees (50) n the former offce than the new locaton (139), the offce was crowded due to the lmted floor space. When the Bangkok government complex was completed n 2009, DAD moved to two of the buldngs. The offces were arranged dependng on job ttles and functons; employees occupy workplaces n an open-offce wth hgh parttons, whle hgher level personnel occupy cellular type offces. Large and small meetng rooms are located at several locatons throughout the buldng. In the DAD case, offce space s arranged accordng to work processes; departments wth smlar work processes are located n the same area. A more homely atmosphere was generated by allowng employees to decorate ther own workstaton. Parttons are used to separate dfferent departments and department sectons. Workspaces are arranged accordng to status, whereby a hgher level member of staff has more space and a hgher qualty workstaton. Offcers, senor offcers and heads of department occupy workstatons wth parttons, whle hgher levels work n prvate offces. Workplace densty vares from 4 sq.m./person (offcers), 6 sq.m./person (managers), 16 sq.m./person (drectors) and 28 sq.m./person (executve offcers). The man buldng (Fgure 40, 1-4) s occuped by the polcy, admnstraton, busness development & marketng and fnance departments. The secondary buldng s occuped by the operaton department (Fgures 40, 5-8). 150 Performance measurement of workplace change

149 Fgure 40 Fgure 40 (1-4) Floor plan, exteror of the man buldng, and typcal workspaces, new stuaton Fgure 40 (5-8) Floor plan, exteror of the secondary buldng, and typcal workspaces, new stuaton 151 Case 1: Dhanarak Asset Development, Bangkok,Thaland

150 Face-to-face communcaton s a feature of the open plan offce. However, a lack of prvacy durng telephone calls was observed. Fndngs from the ntervew wth employees show that communcaton between the departments of the separate buldngs s tme consumng, and therefore neffcent. Informal communcaton takes place n common areas where employees can meet wth other colleagues. There s a requrement for archve and storage facltes. 6.5 Performance measurement In general, performance measurement of all state enterprses n Thaland s drected by the State Enterprse Polcy Offce (SEPO), whch plays an mportant role n regulatng and supportng state enterprses good corporate governance and compettveness. The development of the performance agreement between a state enterprse and SEPO comprses three key steps. Step 1: Identfyng the Performance Crtera The current performance measurement system specfes performance crtera used for assessng state enterprses operatonal effcency n three key areas: 1 Adherence to polcy 2 Operatng performance of the state enterprse Fnancal Non-fnancal 3 Organsatonal management Management roles of board of drectors Rsk management Internal control Internal audt IT management Human resource management Step 2: Defnng Crteron Weght The weghtng of performance crtera s related to operatonal performance. DAD s a state enterprse that ams to provde publc facltes that consder operatonal aspects, especally servce qualty. Detals of the weghts per crteron are: Adherence to polcy 20% (±10) Operatng performance of the state enterprse 50% (± 10) Organsatonal management 30% 152 Performance measurement of workplace change

151 Step 3: Defnng Performance Targets for Each Crteron Value For each crteron, performance targets are classfed nto fve levels. Level 5 exceeds the set target n the annual enterprse plan (Level 3). Only state enterprses wth outstandng management can acheve a Level 5 target. Level 1 s consderably lower than the set target n the annual enterprse plan (Level 3). When determnng annual performance targets, government representatves use past performance as the bass for benchmarkng wth the prvate sector (see Table 24, 25). Ths s to encourage state enterprses to mprove ther operatonal performance and to be on a par wth the prvate sector. Even though mprovement of state enterprse standards may not be acheved n one year, by settng the targets hgher each year, the personnel can be encouraged to operate more effcently. Organsaton Avalable floor space to let (square metre) Benchmarkng (offce space for rent) Rent/month (Baht*/ square metre) Occupancy rate Return On Asset (ROA) DAD 484, % 0.31% Central Pattana 144, % 1.32% Notes nformaton at the end of 2013, *43 baht = 1 euro Table 24 Benchmarkng wth a compettor n an of fce market Organsaton Lettable floor space (sq.m.) Rental rate (Baht*/sq.m./ month) Benchmarkng (commercal space for rent) Electrcty (Baht/unt) Water (Baht/unt) Contract (Months) Depost (months) Occupancy rate DAD 26, , % The Avenue 21, , % Major Hollywood N/A % IT Square 120, ,200 N/A N/A % Central Changwattana 300,000 1,100 2,500 N/A N/A % Central Rattanatbet 105, ,000 N/A N/A % The Mall Ngamwongwan 45,000 1,000 2,000 N/A N/A N/A N/A 95% Sam macro 60 1,500 N/A N/A N/A N/A 100% Bg C Changwattana 20, ,200 N/A N/A N/A N/A 98% Tesco Changwatana 20,000 1,000 1,500 Included Included 1 2,000 (Baht) 100% Carrefour Changwattana 20,000 1,200 1,500 Included Included % Notes nformaton at the end of 2013, *43 baht = 1 euro Table 25 Benchmarkng wth compettors n a commercal space rent market 153 Case 1: Dhanarak Asset Development, Bangkok,Thaland

152 Performance Apprasal System Procedures 1 A state enterprse submts ts busness/strategc/enterprse plan to SEPO after recevng approval from the board of drectors and the lne mnstry. 2 The subcommttee, SEPO, the State Enterprse Effcency Improvement commttee and related agences jontly revew the busness/strategc/ enterprse plan n order to defne performance ndcators, crteron weghts and targets. 3 SEPO nforms the state enterprse of the agreed key performance ndcators, crteron weghts and targets so that the performance agreement can be wrtten. 4 The state enterprse presents quarterly and annual reports to SEPO and the State Enterprse Effcency Improvement commttee. 5 The State Enterprse Performance Apprasal commttee acknowledges the state enterprse s operatng performance at the frst half of the year. 6 The annual report of the state enterprse s operatng performance s submtted to the cabnet. Government s polcy Busness plan, Strategc plan of the state enterprse State Enterprse Effcency Improvement commttee and SEPO agree on the selected KPIs and values of performance crtera. Fgure 41 Performance apprasal system procedures 154 Performance measurement of workplace change

153 Performance crtera 1. Adherence to polcy Work done accordng to assgned plan from government 16 Crteron weghts (percent) Results (ponts) Weghted score (ponts) Percentage of work done: Dhanarak Nontabur housng as plan Percentage of Dhanarak housng unts handed over n Phuket, Chang Ma and Suphanbur Success level of Zone C buldng constructon project Ablty n managng nvestment plan Operatng performance of the state enterprse 44 Fnancal Income from commercally rented area Earnngs before nterest, taxes, deprecaton and amortzaton (EBITDA) Return On Asset (ROA) Non-fnancal Work done on delverng rentable area to other government agences Percentage of allocatng commercal area Satsfacton of the government complex buldng users Work done on the development of buldng management standard Work done accordng to the development of ICT Organsatonal management Management roles of board of drectors Rsk management Internal control Internal audt IT management Human resource management Table 26 Results from performance measurement n Employees responses to the work envronment Partcpants The work envronment dagnoss nstrument (WODI) questonnares were flled out by 87 of the 139 employees, 32 males and 55 females (1:1.7 rato). The majorty (48%) of partcpants was aged under 31, wth 44% aged between years old. 155 Case 1: Dhanarak Asset Development, Bangkok,Thaland

154 Most of the partcpants are well-educated, wth 57% holdng a Bachelor s degree and 36% holdng a hgher degree level. Employees responded to questons regardng the tme spent on dfferent actvtes and n dfferent types of workplaces, preferred places, satsfacton and dssatsfacton wth dfferent aspects, most mportant aspects, organsatonal culture, and key dmensons of natonal culture Employee satsfacton Fgure 42 shows employee satsfacton on a range of tems. Respondents most apprecated the archtecture and appearance of the buldng (59.2% satsfed and very satsfed respondents), opportuntes to communcate (51.4%), lghtng (40.4%), functonalty and comfort of workplaces (36.7%) and accessblty of the buldng (36.5%). Many employees were dssatsfed wth the ndoor clmate (38% dssatsfed and very dssatsfed respondents), ICT and ICT support facltes (35%), openness and transparency (31.5%), archve and storage facltes (28.4%) and opportuntes to concentrate (27.1%). Organsaton Content and complexty of work Sharng own deas about workng envronment Accessblty of the buldng Archtecture and appearance of the buldng Subdvson of the whole buldng Number, dversty, and functonalty of spaces Adjacency and localty of the spaces Openness and transparency of envronment Functonalty and comfort workspaces Interor desgn appearance and ambance Prvacy Opportuntes to concentrate Opportuntes to communcate Archve and storage facltes ICT and ICT support facltes Facltes and facltes management Indoor clmate Lghtng Acoustcs Facltes for remote workng Very dssatsfed Dssatsfed Neutral Satsfed Very satsfed Fgure 42 Percentage of satsfed and dssatsfed partcpants wth regard to dfferent aspects (N=85) 156 Performance measurement of workplace change

155 6.6.2 Perceved productvty support Although the employees had just moved to the new buldngs wth new workstaton furnshngs and suffcent buldng amentes, the extent to whch the envronment supported ndvdual productvty and team productvty was perceved as beng low: 30.4% and 34.5% respectvely. Durng the ntervews, partcpants explaned that the separate buldng locatons made communcaton between the departments dffcult; ths has resulted n the low scores. Indvdual productvty Team productvty Organsaton productvty (%) Totally unsupportve Unsupportve Neutral Supportve Totally supportve Fgure 43 Percentage of partcpants that perceve the workng envronment as beng supportve to dfferent types of perceved productvty (N=85) Prortsed aspects Fgure 44 shows how employees rank the 3 most mportant aspects of the workplace envronment. Adjacency and localty of the spaces were mentoned by 39%, subdvson of the whole buldng (35%), sharng own deas about the work envronment (31%), openness and transparency of envronment (24%), and archtecture and appearance of the buldng (24%). The least prortsed aspects nclude opportuntes to communcate (not mentoned by any respondent), acoustcs (1%), nteror desgn appearance and ambance (2%), opportuntes to concentrate (5%), facltes for remote workng (5%) and lghtng (6%). 157 Case 1: Dhanarak Asset Development, Bangkok,Thaland

156 Fgure 44 Rankng of % respondents markng a partcular aspect as one of three most mportant aspects of the workplace envronment (19 aspects) (N=85) 6.7 Cultural context The organsatonal culture survey was conducted usng the Organsatonal Culture Assessment Instrument (OCAI; Cameron and Qunn, 2006). Results from ths survey were charactersed n four organsatonal culture types: clan, adhocracy, herarchy, and club. The Value Surveys Module (VSM94; Hofstede, 1997) was used to dentfy the fve dmensons of natonal culture: power dstance, ndvdualsm, masculnty, uncertanty avodance, and long-term orentaton Organsatonal culture Table 27 presents the results of the case study OCAI analyss. The organsatonal culture was perceved as a herarchy culture (29.3 ponts), whereas the clan culture type (30.9 ponts) was the most preferred. All other culture types also appled although these were less convncng. A herarchcal culture scores hgh on organsatonal leadershp (Cameron and Qunn, 2006). The leaders are consdered to be both coordnators and organsers and effcency-mnded. The management of employees s most connected to an adhocracy 158 Performance measurement of workplace change

157 culture type, but the characterstcs of other culture types also apply. The organsaton emphasses permanence and stablty; effcency, control and smooth operatons are mportant. The domnant characterstcs are formalzed and structured wth procedures governng what people do, whch matches the herarchcal culture. Formal rules and polces are n place to structure connecton between organsaton members. Mantanng a smooth-runnng organsaton s mportant. CLAN ADHOCRACY MARKET HIERARCHY Current Prefer Df. Current Prefer Df. Current Prefer Df. Current Prefer Df. Average Domnant characterstcs Organsatonal leadershp Management of employees Organsatonal glue Strategc emphass Crtera of Success Notes. Respondents are asked to dvde 100 ponts among the four culture types. A hgher number of ponts s gven to the opton that s most smlar to the organsaton. Table 27 Organsatonal culture ndex accordng to the case study (N=80) Natonal culture The VSM94 survey results show that the DAD-company scores much lower on power dstance, masculnty and long-term orentaton than Thaland as a whole, and much hgher scores were obtaned for ndvdualsm and uncertanty avodance (Table 28). The hgh uncertanty avodance suggests that top managers are concerned wth daly operatons and focus on decson content. The organsaton s better at mplementaton, and less strong n nventon. There s an emotonal need for rules, even f these do not work. Accordng to Hofstede (1997), the low masculnty scores ndcate that management s done by ntuton and through consensus. The hgh ndvdualstc culture and low power dstance ndcate that subordnates expect to be consulted and to not be told what to do. The low long-term orentaton ndex means that efforts should produce quck results. 159 Case 1: Dhanarak Asset Development, Bangkok,Thaland

158 Index DAD Thaland* 1. Power Dstance Index (PDI) Indvdualsm Index (IDV) Masculnty Index (MAS) Uncertanty Avodance Index (UAI) Long-term Orentaton Index (LTO) * Thaland data accordng to Hofstede (1997). Notes. Values of each ndex s usually between 0 (small/weak n partcular dmenson) and 100 (large/strong n partcular dmenson), but values below 0 and above 100 are techncally possble. Table 28 Fve key dmensons of natonal culture 6.8 Reflectons Performance measurement Performance measurement of the case study covers three man areas (adherence to polcy, operatng performance, organsatonal management) that are algned wth the four perspectves of the balanced scorecard (fnancal, customer, nternal busness processes, learnng and growth). The DAD focuses on effcency by ts choce of a locaton near to clent offces. The choces for a regular square shape of offce layout and typcal work settngs were amed to acheve cost reductons of both constructon and workstaton furnshngs. Beng a publc organsaton, DAD needs to show commtment to both nternal (employees and customers) and external stakeholders (neghbourng communty). CRE performance measures n lterature and what has been found n the DAD case Based on the balanced scorecard, corporate real estate performance measures n the lterature have been dvded nto sx categores: 1) stakeholder percepton, 2) fnancal health, 3) organsatonal development, 4) productvty, 5) envronmental responsblty and 6) cost effcency. Table 29 presents the proposed lst of corporate real estate performance measures, classfed accordng to Bradley s (2002) sx categores, and the performance measures appled n the DAD case. The comparson between the proposed performance measures from the lterature, and what was found n practce, shows both strkng smlartes and dfferences. 160 Performance measurement of workplace change

159 1. Stakeholder percepton Proposed performance measures accordng to the lterature DAD Employee satsfacton wth work envronment Employee satsfacton wth CRE servces Customer satsfacton wth facltes Qualty of ndoor envronment: lghtnng, ar condtonng, temperature, nose level, etc. Provson of safe envronment Locaton success factors (access to employees, amount of local amentes) Rato of offce to common areas Provson of amentes Amount of workplace reforms and space modfcatons Employee satsfacton wth professonal sklls Employee satsfacton wth nformaton sharng Survey ratng (e.g. customer/tenant survey of the facltes, buldng, property management and CRE servces) Number of complants Average call frequency and cost per square foot help desk Locaton success factors (proxmty to requred transportaton, access to customers, dstance to other stes and busnesses) Employee satsfacton Employee satsfacton survey conducted by the author (the WODI tool) Satsfacton of the government complex buldng users Communty and well-beng The contrbuton to publc polcy and socetal prortes Percentage of complants from publc regardng to envronmental mpact 2. Fnancal health Value of property, plant and equpment Busness return on real estate assets Real estate return on nvestment Real estate return on equty Sales or revenue per square foot (metre) Space (square feet or metres) per unt of revenue Return on property management 3. Organsatonal development Qualty of facltes Physcal condton of facltes Sutablty of premses and functonal envronment Number of buldng qualty audts Accommodaton usage CRE unt qualty Square feet per employee Effectve utlsaton of space (e.g. amount of teamwork space, vacancy rates, tme wasted wth nterruptons due to open space layout) Tme used n project versus tme budgeted for the project Money spent on project versus money budgeted on the project Amount of advce gven to other busness unts Income from commercally rented area Work done on the development of buldng management standard Work done on the development of ICT NA Delverng rentable area to other government agences Percentage of allocatng commercal area >>> 161 Case 1: Dhanarak Asset Development, Bangkok,Thaland

160 4. Productvty Proposed performance measures accordng to the lterature DAD Employee productvty Strategc Involvement 5. Envronmental responsblty Resource use Energy consumpton Number of energy audts Waste 6. Cost effcency Occupancy costs Operatng costs (buldng and FM) Productvty (% of perceved productvty support from workng envronment) Absentee rates by buldngs CRE nvolved n corporate strategc plannng CRE ntegrated wth HR strateges CRE actvely nvolved n frm-wde ntatves such as specal asset use, consoldatons, or shared servces opportuntes Contamnated stes management Amount of garbage Total occupancy cost per employee Occupancy cost as a % of total operatng expense Occupancy cost as a % of operatng revenue by buldng or busness unt Total operatng expendtures versus budget ncludng: general admnstraton; captal expendtures; moves, adds, rearrangements; faclty/propertes servces; other busness servces (mal, and copy centres, rsk, and/or securty) Faclty management costs (envronment, workng condtons, qualty) * does not drectly relate to real estate, NA not appled.e. not measured or no data avalable Health & wellbeng n the workplace Productvty survey (WODI) Master plan of the IT system Management of the nformaton system IT soluton n HRM Introducton of green buldng constructon materals and equpment meet local content NA Taxes (property and land) Operatng costs - Faclty costs (buldngs & equpment) - Overhead costs (employees and commttee)* - Fees and servces* Table 29 CRE performance measures from the lterature (left) compared to case study fndngs (rght) 1 Stakeholder percepton Performance measures n ths perspectve nvolve multple levels (ndvdual, organsaton, communty). Workplace change objectves such as ncreasng floor space and mprovng envronmental qualty show a concern about employee satsfacton wth work envronment. An employee satsfacton survey s conducted annually, and ncludes areas related to the work envronment. Customer focus s demonstrated by measurng the satsfacton of the government complex buldng users (.e. tenants of rental offces, renters of commercal spaces). The DAD montors the percepton of the neghbourng communty usng the percentage of complants receved from the publc regardng the envronmental mpact. 2 Fnancal health The DAD, an asset management company, apples ncome from offce and commercal space rental as a fnancal performance measure that reflects the organsaton s busness type. 162 Performance measurement of workplace change

161 3 Organsatonal development The DAD montors work done accordng to the development of a buldng management standard, work done accordng to the development of ICT, delverng rentable area to other government agences, and the percentage of commercal area allocaton, n order to support the objectve of provdng clent value for money. 4 Productvty Fndngs show that the DAD case appled the corporate real estate performance measures related to human resource strateges. In order to create an optmal workplace settng and contrbute to employee productvty, the DAD case measures HR factors such as employee health, safety and well-beng, HR IT nformaton systems and general IT systems. Haynes (2007) noted that an emphass on human contrbuton rather than cost cuttng wll lead to an ncreased productvty. In the DAD case, the provson of a better offce envronment (workplaces, IT support) and better HR support (employee health, safety and well-beng), would lead to ncreased employee productvty. 5 Envronmental responsblty The ntroducton of green buldng by usng hghly effcent buldng materals such as specal buldng envelope to reduce heat transfer and double solated wndow frame to mnmse nfltraton contrbutes to the mprovement of energy performance that has been consdered as an approach to develop a sustanable objectve n the DAD case. The use of local constructon materals and equpment, and the recordng of complants receved from the publc regardng envronmental mpact are performance measures related to envronmental responsblty. 6 Cost ef fcency The DAD mplements performance measures related to buldng and facltes (.e. faclty costs) that can be explaned by the asset management busness of the company. Occupancy costs are an mportant factor of the total workplace costs and nclude land and property taxes. Because the organsaton owns the property, other occupancy costs such as offce rent or parkng costs have not been calculated Employees responses to the work envronment Employee satsfacton Fndngs show that n the DAD case, staff characterstcs, work processes and work patterns nfluence the typcal workplace desgn: a large open plan layout wth hgh parttons and standard work settngs. Ths has led to the result that only a modest percentage of respondents were satsfed regardng several aspects of the DAD 163 Case 1: Dhanarak Asset Development, Bangkok,Thaland

162 workplace. The DAD buldng s located qute a large dstance from the cty centre and publc transport s lmted. Ths explans the low satsfacton regardng the accessblty of the buldng. The percentage of satsfed respondents regardng archtecture and buldng appearance s hgh due to the fact that the organsaton has moved to new buldngs. It s dffcult to recognze that the buldng accommodates a publc nsttuton, so the use of buldng appearance to promote corporate culture has been mnmsed. In addton, the separate locatons of the DAD case make face-to-face communcaton more dffcult. The average satsfacton ratng of the workplace envronment as frendly and enjoyable s hgher than other aspects partly because the organsaton allows employees to personalse ther workspaces. The typcal offce layout and nteror desgn are less apprecated by the employees. The sem-open plan layout of the DAD buldngs allows socal contact between colleagues; ths has resulted n the hgh percentage of satsfed employees wth regard to opportuntes to communcate. However, the hgh parttons have resulted n the hgh dssatsfacton score n openness and transparency. DAD employees are dssatsfed most wth the ndoor clmate, whch could be due to the tghtly sealed buldng envelope, whch was desgned for energy conservaton. A lack of support spaces and the typcal layout of the DAD workplace that affect the practcal usablty of the buldng are consdered as the cause of the low percentage of satsfed employees n the subdvson of the whole buldng. Even though some employees work at clent offces, the facltes for remote workng are nadequate whch explans the low satsfacton score regardng ths aspect. Because of the herarchcal structure, DAD employees were not nvolved n the desgn process of the workplace change whch has been seen as a dsadvantage n regard to the changed work envronment. The separate locatons, the lack of prvacy and nsuffcent storage facltes of the DAD s workplace after the change are consdered as the cause of the negatve responses receved from employees wth regard to ther satsfacton wth adjacency and localty of the spaces, prvacy and archve and storage facltes. Perceved productvty support The DAD case shows a low percentage of satsfed respondents wth regard to the extent to whch the workng envronment supports ndvdual and organsaton productvty (30% and 17% respectvely). The qute typcal layout and standard work settngs may have resulted n the low ndvdual and team productvty. The lack of support spaces also has had an mpact on team productvty. From the ntervews conducted wth the DAD employees, t was concluded that the separaton of workplaces to two separate buldng locatons n the DAD case caused dffcultes for collaboraton and team workng whch has resulted n the low perceved productvty percentage n the DAD case. Fndngs from the ntervew also show that employees requre extra space for socalsng because they beleve t can help mprove productvty. 164 Performance measurement of workplace change

163 Prortsed aspects of the work envronment Regardng envronmental comfort, the DAD respondents are more concern wth physcal comfort as ndcated by the emphass on adjacency and localty of the spaces and subdvson of the whole buldng. Physcal comfort s related to good buldng desgn and operatons, as well as related to settng and meetng the standards of health and safety (Vscher, 2008). Conceptual model of workplace change apprasal The conceptual model s used to explore the relatonshp between varables mpactng on an apprasal of workplace change (Fgure 45). In Table 30, the varables have been explaned n three groups: start, medatng and outcome. Organsaton - Busness types - Objectve - Structure - Staff characterstcs - Organsatonal culture - Natonal culture Organsaton - Busness types - Objectve - Structure - Staff characterstcs - Organsatonal culture - Natonal culture Work process - Daly actvtes: what, when, how, by whom, where Precondtons - Tme - Money - Informaton Workplace before change - Locaton - Buldng grade - Archtectural desgn - Workplace concept - Supportng facltes Implementaton process - Workplace change objectves - Drvers to change - Change management Workplace after change - Locaton - Buldng grade - Archtectural desgn - Workplace concept - Supportng facltes Work process - Daly actvtes: what, when, how, by whom, where Precondtons - Tme - Money - Informaton External context - Legslaton - Economc stuaton - Labour market Apprasal of change - Employee satsfacton - Perceved productvty support - Prortsed aspects External context - Legslaton - Economc stuaton - Labour market Fgure 45 Relatonshp between varables mpactng on an apprasal of workplace change (Rratanaphong & Voordt, 2012) Relatonshps between varables of the conceptual model Table 30 shows the assumed causal relatonshps between the characterstcs of the organsaton, work processes, precondtons, external context and the mplementaton process as start varables wth medatng varables of workplace change such as locaton, archtectural desgn and workplace concept, and the apprasal of change as an outcome. 165 Case 1: Dhanarak Asset Development, Bangkok,Thaland

164 Start varables Medatng varables Outcome Organsaton Objectves Supports postve atttudes among publc offcals Structure Herarchy Staff characterstcs Employees put hgh mportance on basc human needs Organsatonal culture The emphass on effcency n a herarchcal culture type Natonal culture Indvdualstc culture Work process Daly actvtes Routne offce works wth regular tmetable 9 to 5 Precondtons Money Investment budget Implementaton process Workplace change objectve To promote sustanable objectves through the energy effcent desgn concept Drvers to change To ncrease offce space Change management Communcaton wth employees Workplace change Workplace concept Ablty to personalse workspaces Change management Employees do not get nvolved durng the desgn process Workplace concept Typcal layout wth standard work settngs Workplace concept The near locaton of the operaton department to the other departments and clent s premses supports effcent communcaton. Workplace concept The provson of prvate rooms and hgh parttons Workplace concept Typcal workplace desgn n large open plan layout wth hgh parttons Locaton New workplace s located n suburban. Workplace s arranged wth standard work settngs* Archtectural desgn Tghtly sealed buldng envelope n order to control ventlaton and nfltraton and to buld thermal storage Workplace concept Move to a new buldng Supportng facltes Facltes and facltes management, ICT and ICT support facltes, archve and storage facltes Apprasal of change Employee satsfacton Hgh average satsfacton ratng of workplace envronment as frendly and enjoyable Employee satsfacton Low satsfacton percentage n sharng own deas about workng envronment, number dversty and functonalty of spaces Prortsed aspects On top of most mportant aspects, the DAD employees ndcate adjacency and localty of the spaces and subdvson of the whole buldng Prortsed aspects Hgh rankng of adjacency and localty of workplaces as one of three most mportant aspects of the work envronment. Employee satsfacton The hgh dssatsfacton percentage n openness and transparency due to hgh parttons Employee satsfacton Modest percentage of satsfed respondents n several aspects of the work envronment; e.g. number, dversty, and functonalty of spaces, functonalty and comfort workspaces Employee satsfacton Low satsfacton percentage n accessblty of the buldng Employee satsfacton Hgh dssatsfacton of ndoor clmate Employee satsfacton Hgh satsfacton percentage n archtecture and buldng appearance Employee satsfacton Low satsfacton percentage n the extent to whch the workng envronment supports ndvdual and organsaton productvty Bold = man varables, *charactersed by general work settngs and nteror desgn qualty based on the offce rent market (CBRE, 2012) Table 30 Relatonshps between varables of the conceptual model appled to the DAD case 166 Performance measurement of workplace change

165 Most of the publc organsatons n Thaland are developng the personnel admnstraton system that supports postve atttudes and workng methods among publc offcals n order to delver more effcent publc servces. Ths objectve has led to the agreement that allows the DAD employees to personalse ther workspaces whch results n the hgh average satsfacton ratng of workplace envronment as frendly and enjoyable. Staff characterstcs and work process of the DAD case nfluence the typcal workplace desgn (.e. a regular square offce layout and standard work settngs), whch resulted n modest satsfacton percentages n relaton to several aspects of the work envronment (number, dversty, and functonalty of spaces, functonalty and comfort workspaces). Staff characterstcs can be consdered n terms of the need for physcal comfort (Vscher, 2008), whch results n the hgh prorty gven to adjacency and localty of the spaces and the subdvson of the whole buldng. The emphass on effcency n a herarchcal culture type s demonstrated by the fact that the DAD offces are located close to the clent s premses. Ths results n the emphass on adjacency and localty of workplaces as beng one of three most mportant aspects of the work envronment. The provson of prvate rooms and hgh parttons s related to the emphass on prvacy n the ndvdualstc culture, and s the cause of a hgh percentage of dssatsfed employees wth regards to openness and transparency. Because of the need for a large land area and n order to reduce nvestment costs, the choce of locaton was made to go to the suburbs, far from the cty centre. Ths has resulted n a low satsfacton percentage regardng accessblty of the buldng. Workplace change objectve n energy conservaton nfluences the desgn of a tghtly sealed buldng envelope. The lack of natural ventlaton s the cause of hgh dssatsfacton wth the ndoor offce clmate. Drver to change the workplace and the move to a new buldng resulted n hgh satsfacton wth the archtecture and buldng appearance. The support facltes (.e. facltes and facltes management, ICT and ICT support facltes, archve and storage facltes) are not apprecated by the employees. In ths case, the move to the new locaton was made whle some parts of the buldngs were under constructon, so support facltes were nadequate. Ths s consdered as the cause of the low satsfacton regardng ndvdual and organsatonal productvty. The assumed causal relatonshp can be explaned by the lnks of varables n the conceptual model as shown n Table 30. However, there should be a drect lnk between the organsaton and the apprasal of change n the conceptual model;.e. employee satsfacton n organsaton and content and complexty of work. These two tems are not related to the physcal work envronment, but they can have an mpact on the apprasal of change. Ths has led to the slghtly adapted conceptual model, whch descrbed n Chapter Case 1: Dhanarak Asset Development, Bangkok,Thaland

166 6.8.3 Cultural context The feld research dentfed dfferent types and dmensons of organsatonal and natonal culture. However, the connectons of both types of culture and the other varables n ths study are dffcult to trace and to understand. There s a lnk between employee responses to workplace change and a partcular type of organsatonal culture. The typcal workplace desgn wth standard work settngs reflects the effcency focus n the herarchcal culture. The locaton of the operatons department close to other departments and clent premses supports effcent communcaton, and ths matches the effcency focus typcally found n a herarchcal culture. The focus on effcency s also vsble n the hgh rankng of adjacency and localty of workplaces and the subdvson of the buldng, as beng one of three most mportant aspects of the work envronment. A lnk between workplace change and organsatonal culture has been explaned by the organsatonal lfe cycle. At the earlest stages of the organsaton lfe cycle, the DAD case shared ts workplace wth another organsaton. Subsequently, the company was faced wth an ncreasng demand for space as t grew n sze and n the number of employees. It was eventually faced wth the need to emphasse structure and standard procedures n order to manage the ncreasng number of responsbltes. Order and stablty were needed, whch resulted n a move to a sngle tenant buldng. Ths corresponds wth the herarchcal culture of the organsaton (Cameron & Qunn, 2006). There s a lnk to a more standardsed workplace desgn n a hgh uncertanty avodance socety (Klote, 2007). The typcal workplace desgn wth standard work settngs of the DAD case reflects the hgh uncertanty avodant culture, and has resulted n a low percentage of satsfed employees n number, dversty, and functonalty of spaces. Accordng to the lterature, an extreme emphass on ownng space s an ndvdualstc trat (Altman, 1975). People n ndvdualstc cultures are more dstant proxmally (Gudykunst and Matsumoto, 1996). The relatonshp between ndvdualsm and workplace can be descrbed as dsplayng the need for prvacy whch s sgnalled by closed doors, soundproofng, double doors, or trees along property lnes (Hall, 1966, Altman & Gauvan, 1981). In the DAD case, the provson of prvate rooms and hgh parttons emphasses the prvacy aspects and the ndvdualstc culture. However, the hgh parttons have resulted n the hgh dssatsfacton percentage n openness and transparency n the DAD case. 168 Performance measurement of workplace change

167 6.9 Conclusons The research fndngs show that the performance measurement of the DAD case occurs at multple levels (ndvdual, organsaton, communty). The emprcal data shows connectons between the organsatonal context and workplace performance wth regard to performance crtera and performance measures. The effcency focus n the DAD case s demonstrated by the choce of a locaton near to clent offces, and by the typcal layout wth standard work settngs n order to acheve cost reducton, and less regardng for an effectve use of space. Tha governmental polcy requres publc organsatons to measure performance based on a Balanced Scorecard, as has been seen n the DAD case. The sx perspectves of corporate real estate performance measures noted n the lterature can be used as a reference to compare the performance measures used n current practce, as nput to consderng for the mprovement of the effcency and effectveness of performance measurement. Our fndngs show connectons between the varables n the conceptual model (.e. organsaton, workplace change, and employee responses to the work envronment), and they confrm that the conceptual model can be used to understand the complex relatonshp between these varables. The fndngs also show that employee satsfacton wth the organsaton can have an mpact on workplace apprasal, and should be ncluded n the conceptual model. The cultural context varable enables a better understandng of the role of organsatonal and natonal culture n relaton to workplace change and the subsequent apprasal of ths change. However, the explanaton of the fndngs (.e. performance measurement, the apprasal of change) n connecton to natonal and organsatonal culture s qute dffcult and more exploratve and nterpretatve than concludng. In addton, the mpact of natonal culture s much less vsble and explanng the results than mght be expected. 169 Case 1: Dhanarak Asset Development, Bangkok,Thaland

168 170 Performance measurement of workplace change

169 7 Case 2: Phlps, Bangkok, Thaland 7.1 Introducton Ths chapter presents fndngs from a second case study n Thaland, Phlps Electroncs Thaland (PTH) Lmted. The study was set up to dentfy performance measurement frameworks, crtera and performance measures/kpis of the case organsaton, and to nvestgate the mpact of a workplace on employee satsfacton, perceved productvty, support, and prortsed aspects, both before and after the change. Another purpose was to explore contextual backgrounds of organsatonal and natonal culture that may have an mpact on workplace performance. The fndngs from ths case study are used for a cross-case comparson wth another Tha and Dutch case study n Chapter Research methods The data collecton methods ncluded ntervews, document analyss, observatons and fndngs from three separate questonnares. Data on performance measurement were collected from company reports and nformaton from the country human resource drector. The mpact of workplace change was examned through the work envronment dagnoss nstrument (WODI) questonnare. The WODI tool (descrbed n detal n Chapter 3) s used to evaluate employees responses to the changed work envronment n three areas: employee satsfacton, perceved productvty support, and prortsed aspects (Maarleveld et al., 2009). The Organsatonal Culture Assessment Instrument (OCAI; Cameron and Qunn, 2006) was used for assessng organsatonal culture. Natonal culture was measured by usng the Value Surveys Module 94 (VSM94; Hofstede, 1997). Both the OCAI and VSM94 questonnares have been dscussed n Chapter 4. Documents used for analyss nclude PTH s post-move survey report and the workplace nnovaton report (Phlps, 2011). The study by Gumbus and Lyons (2004) provdes mportant nformaton wth regard to Phlps performance measurement; the fndngs on performance measurement are based on ther study. A sem-structured ntervew was appled for four ntervews: wth the order desk manager, regonal sales manager, general manager, and country human resource drector. The ntervews 171 Case 2: Phlps, Bangkok, Thaland

170 ncluded questons concernng performance measurement, perceptons about workng envronment and culture. The ntervew wth the country human resource drector focused on performance measurement of the organsaton. Observatons were conducted by a walk-through, recordng where and when certan behavour occurs. The WODI questonnares were appled to the surveys both before and after the change. The evaluaton of the workplace before the change was conducted from September to October The apprasal of the workplace whch took place after the change was conducted from August to September Cultural surveys usng OCAI and VSM94 were conducted durng the frst phase before the offce moved to the new place. 7.3 Case descrpton PTH manufactures, markets, and dstrbutes lghtng products, domestc electrcal and electronc goods, audo-vsual equpment, and professonal products. Phlps also sells medcal systems, consumer communcaton, and semconductors and components. In addton, t offers consumer electroncs products, personal care products, and a shared servce centre. The company was founded n 1952 and s based n Bangkok, Thaland. PTH s a subsdary of Konnkljke Phlps Electroncs NV. The Phlps msson s to mprove the qualty of people s lves through the tmely ntroducton of meanngful nnovatons wth a vson to lead n brngng sense and smplcty to people. Phlps key values for ther staff are: eager to wn, take ownershp and team up to excel. The organsaton employs over 2,000 employees workng n consumer and professonal products, ncludng three man servces: healthcare, lghtng and consumer lfestyle. Phlps Electroncs Thaland has expanded ts product lne to decoratve lghtng products and lamps n order to cover more market segments and become the market leader n the area wthn three years. The target s also part of the three-year Phlps Electroncs worldwde plan to become No.1 n the Asan consumer lumnares market (Bloomberg Busnessweek, 2011). PTH has been awarded the followng nternatonal qualty management standards: ISO 9001 (qualty management) ISO (envronmental management) TIS (health and safety) Organsaton structure Fgure 46 shows the PTH organsaton structure, comprsng four sectors: 1 Lghtng (lamps, LED components, lghtng electroncs, consumer lumnares, and professonal lumnares) 2 Consumer lfestyle (domestc applances, health and wellness, shavng and beauty, connected dsplays, perpherals and accessores, home networks, vdeo and multmeda and professonal and busness solutons) 172 Performance measurement of workplace change

171 3 Healthcare (magng systems, healthcare nformatcs, ultrasound & montorng solutons and home healthcare solutons 4 Admnstratve (human resources, procurement and operators) CEO CFO Lghtng Consumer Lfestyle Healthcare Supportng Functons GM GM GM Marketng Sales Supply chan Fnance & Account Marketng Sales Operatons Fnance & Account Customer Servce Sales Supply chan Fnance & Account Legal Corporate Communcaton Human resource Purchasng Import/ Export Fnancal Operatons Fgure 46 Organsaton structure The Management Team (MT), consstng of the CEO, CFO and GM of the four sectors, s responsble for decson makng. All mportant changes n the organsaton have to be approved by the MT. Work process The Phlps Lghtng department has a total of 76 employees who can be descrbed as moble and non-moble workers. The moble workers are employees that work out of the offce for most of the tme, for example, a salesperson who has to contact dealers/ customers n other provnces or a marketng offcer who has to promote campagns and trade exhbtons n targeted locatons. The moble workers usually spend the tme out of offce and come to work or have a few meetngs n the offce for around 30 % of the total workng tme. The non-moble workers are located at the offce, takng orders from sales or dong admnstratve tasks; from tme to tme they attend meetngs at clents offces. 7.4 Workplace change The PTH headquarters are located n the cty centre of Bangkok at the Tha Summt Tower offce buldng (See Fgure 47). Tha Summt Tower s a prme commercal property strategcally located on New Petchbur Road near the Asoke ntersecton n Bangkok. The 34-storey buldng offers 33,242 sq.m. of offce space. Desgned and 173 Case 2: Phlps, Bangkok, Thaland

172 constructed to nternatonal standards, the buldng s also professonally managed by Jones Lang LaSalle. It has 14 tenants wth an occupancy rate of 72%. The buldng began constructon n 1996 pror to the fnancal crss and was completed n Typcal unt sze equals 1,200 sq.m. wth 2.70 m. clear heght (Joneslanglasalle, 2011). Ths modern desgn offce buldng s consdered as a grade A offce; a hgh-rse purpose-bult property owned and operated by a professonal offce landlord. The rental prce s 500 Baht (12 euros)/sq.m./month, a moderate sum compared wth other buldngs n the CBD. The buldng can be easly accessed by car, subway and sky tran. Fgure 47 Tha Summt Buldng Amentes nclude: 700 car parkng spaces Chlled-water ar-condtonng system 14 hgh-speed passenger lfts and a separate servce lft Buldng automaton system Internatonal standard fre alarm and fre safety systems Meetng and conference rooms to cater up to 400 attendants Canteen Workplace before the change Before 2010, Phlps Lghtng occuped the 29th floor of the Tha Summt offce buldng. The offce space s descrbed as an open plan wth shared facltes. The general workers worked at workstatons n the open plan, and the general manager had hs own offce. Fgure 48 shows the offce layout of Phlps Lghtng department before the change. Only half the floor space s allocated to offce space whch resulted 174 Performance measurement of workplace change

173 n a hgh concentraton of people. For ths reason, the department was relocated to the 26th floor n November The new workng envronment s fully adapted to the workplace nnovaton concept (WPI). Fgure 48 Open plan of fce at Phlps Lghtng department on the 29th floor, old stuaton (Ruethavanch, 2011) Fgure 49 Open plan of fce at Phlps Lghtng department, old stuaton 175 Case 2: Phlps, Bangkok, Thaland

174 Preparaton and mplementaton process The organsaton notfed all ts employees about the move and set up a so-called WPIteam to manage the process. The WPI team conssted of the management team and representatve commttees from all workng unts. The WPI team then set up a meetng n regard to the preparaton of the new workplace. The representatve commttees are n charge of spreadng the nformaton about the preparaton process to members of each group. Samples of workstaton furnshngs were tested by employees to see whether they were comfortable and sutable for use n the new offce. The layout of the WPI was posted on the wall so that everyone could learn about hs/her locaton. In a regular meetng, the preparaton process was dscussed wth the employees. The workstatons were not fxed except for those of the non-moble staff who regularly perform desk work. The organsaton outsourced the offce move to a professonal removal frm. The removal boxes were provded by the frm. Computers and IT systems were collected and restored by the IT team. One of the change management actvtes shown n the generc tmelne s the preparaton of change and communcaton plan to algn wth the overall project plan (Fgure 50). Project Plannng WPI Project Executon Desgn Procurement & constructon Change Management Move & occupaton Sustanng Management Kck off BCMT at start of WPI Project Change and Communcatons plan algned wth overall project plan Stakeholder Inventory HR fgures, WPI Profles, WSE Reconfrm Reconfrm Storage requrements, Start drvng less paper work strategy Buld Executve Sponsorshp & Equp Leadershp WPI Engagement Agreement Buld & kck off Change Network Workforce mpact Coach Change Network Engage & Communcate Actvtes are nterlnked. Tmelne s ndcatve, depends on sze and duraton of change project. WPI Tranng WPI Survey pre & post move Close out and transton to SMT Fgure 50 Change management actvtes n the generc tmelne (Phlps, 2011) Workplace after the change Phlps Lghtng moved from the former offce on the 29th floor to the renovated offce on the 26th floor of the same buldng. The new offce has a larger floor area wth a number of work settngs ncludng a standard work settng, an enclosed offce, touchdown work settngs, a break-out area, a meetng room and a board room. Fgure 51 shows the new layout after the renovaton. The new lghtng department layout can be seen n Fgure Performance measurement of workplace change

175 Fgure 51 Open plan of fce at Phlps Lghtng department on the 29th floor, old stuaton (Ruethavanch, 2011) Fgure 52 Workstatons and work envronment, new stuaton 177 Case 2: Phlps, Bangkok, Thaland

176 7.5 Performance measurement Ths study s based on the Balanced Scorecard (BSC) of Phlps Electroncs (Gumbus and Lyons, 2004) who appled t to ts performance measurement system n order to algn the company vson and to educate employees about what drves the busness. The prncple of the scorecard desgn s to determne whch factors are crtcally mportant n order to acheve the organsaton s strategc goals. The Phlps Balanced Scorecard nvolves the mplementaton process of these crtcal success factors, the busness varables mportant for creatng value, whch can be grouped as follows: Competence (knowledge, technology, leadershp, and teamwork), Processes (drvers for performance), Customers (value propostons), and Fnancal (value, growth, and productvty). The mplementaton process of the crtcal success factors The prncple of the mplementaton process s that the top level scorecard crtera are the drvng determnants for the lower level scorecard crtera. The relatonshps to partcular performance ndcators (.e. customer satsfacton and product sales) were translated nto crtcal success factors to measure performance. Fnancal and customer crtcal success factors that gve the company a compettve edge were dentfed. Subsequently, the processes of crtcal success factors that have the greatest mpact on achevng that compettve edge were determned. The Phlps management team, a group of hgh rankng personnel, establshed a performance management system that measures the progress made towards achevng the company s vson and lnks short-term operatons wth long-term strategy. In ths way, the employees can understand how ther day-to-day actvtes contrbute to company objectves. The balanced scorecard has been cascaded down throughout the organsaton. By settng annual organsatonal targets, top management deploy the balanced scorecard to the organsatonal layers n the form of goals at busness unt level. The BSC n the Busness Unts Crtcal success factors were developed at busness unt level for each of the four perspectves of the BSC: competence, processes, customers, and fnancal (Table 31). 178 Performance measurement of workplace change

177 Economc proft realzed Income from operatons Workng captal Operatonal cash flow Inventory turns Rank n customer survey Market share Repeat order rate Complants Brand ndex Fnancal Customers Processes Percentage reducton n process cycle tme Number of engneerng changes Capacty utlzaton Order response tme Process capablty Competence Leadershp competence Percentage of patent-protected turnover Tranng days per employee Qualty mprovement team partcpaton Table 31 Indcators at the busness unt level (Gumbus and Lyons, 2004) The department had to select crtcal success factors that have a major control responsblty n order to deploy these at a lower level. Subsequently, the management team for each busness unt agreed whch crtcal success factors dstngushed the busness unt from the competton. The management teams appled a value map to acqure customer crtcal success factors by analysng customer survey data that reflected perceved performance. Fnancal crtcal success factors were determned usng standard fnancal reportng metrcs. Process mprovements that can delver the customer requrements were determned for the process crtcal success factors. The competence crtcal success factors were dentfed by determnng what human resources and competences are needed n order to accomplsh the targets set for the other three perspectves. Each busness unt had to determne ts key performance ndcators n order to measure the crtcal success factors. The relatonshps between processes and results were quantfed and performance drvers determned. Targets were dentfed based on the gap between the actual and desred performance for the current year, plus two and four years nto the future. Sx key performance ndcators that appled to all of Phlps busness unts are (Gumbus and Lyons, 2004): Proftable revenue growth Customer delght Employee satsfacton Drve to operatonal excellence Organzatonal development IT support. 179 Case 2: Phlps, Bangkok, Thaland

178 These key performance ndcators were algned wth the four perspectves of the balanced scorecard: organsatonal development and IT support relate to the competence perspectve; customer delght and employee satsfacton algn wth the customer perspectve; operatonal excellence drves the process perspectve; and proftable revenue growth drves the fnancal perspectve. Table 32 shows the ndcators of proftable revenue growth at the Phlps Lghtng department as the ndcators for each busness unt level. Objectve 1. Growth Overall Sales Growth % 2. Outgrow the market n LED LED sales growth % 3. Professonal Lumnares Sales Growth % 4. Customer centrcty Market ntroducton n tme Market ntroducton realzed sales Approbaton realzaton n tme 5. Increase proftablty Integral sale margn %% Integral sale %% of LED 6. Draw productvty Sales growth 7. Maxmze cash Overdue account recevable %% of gross account recevable 8. Breakthrough wth end users & specfers* Brand preference for key account management Brand preference for specfer 9. Buld lghtng Number of postons flled 10. Executve growth accelerators End users key account sales (outdoors/rental/offce) OEM sales *The specfer s prmary responsblty s to support specfcaton producton on projects. Table 32 The proftable revenue growth KPIs of Phlps Lghtng department (Ruethavanch, 2011) KPIs 7.6 Employees responses to the work envronment: assessment before the change Respondents The questonnares were completed by 42 of the 76 employees (55% response rate), 18 female and 24 male (1:1.3 rato). The majorty of partcpants are between 31 and 40 years old (50%). Most of the partcpants are well-educated wth 55% holdng a Bachelor s degree and 43% holdng a degree hgher than a Bachelor s. Employees responded to questons wth regard to the tme spent on dfferent actvtes and n dfferent types of workplaces, preferred places, satsfacton and dssatsfacton wth dfferent aspects, most mportant aspects, organsatonal culture and key dmensons of natonal culture. 180 Performance measurement of workplace change

179 7.6.1 Employee satsfacton Fgure 53 shows employee satsfacton on a range of tems. Items that employees apprecate most are facltes for remote workng (66.7% satsfed and very satsfed respondents), lghtng/content and complexty of work (64.3%), organsaton (59.5%), ndoor clmate/openness and transparency of envronment (57.1%) and the accessblty of the buldng (54.8%). Many employees are dssatsfed wth opportuntes to concentrate (69.1% dssatsfed and very dssatsfed respondents), prvacy (59.5%), number, dversty, and functonalty of spaces (50%), sharng own deas about workng envronment/archve and storage facltes (40.5%) and adjacency and localty of the spaces (33.3%). Organsaton Content and complexty of work Sharng own deas about workng envronment Accessblty of the buldng Archtecture and appearance of the buldng Subdvson of the whole buldng Number, dversty, and functonalty of spaces Adjacency and localty of the spaces Openness and transparency of envronment Functonalty and comfort workspaces Interor desgn appearance and ambance Prvacy Opportuntes to concentrate Opportuntes to communcate Archve and storage facltes ICT and ICT support facltes Facltes and facltes management Indoor clmate Lghtng Acoustcs Facltes for remote workng Very dssatsfed Dssatsfed Neutral Satsfed Very satsfed Fgure 53 Percentage of satsfed and dssatsfed respondents wth regard to dfferent aspects (N=42) 181 Case 2: Phlps, Bangkok, Thaland

180 7.6.2 Perceved productvty support Fgure 54 demonstrates the extent to whch the envronment supports ndvdual productvty (43.1%), team productvty (45.1%) and organsaton productvty (42.5%). Indvdual productvty Team productvty Organsaton productvty (%) Totally unsupportve Unsupportve Neutral Supportve Totally supportve Fgure 54 Percentage of partcpants that perceve the workng envronment as beng supportve to dfferent types of perceved productvty (N=42) Prortsed aspects Fgure 55 shows how employees rank the 3 most mportant aspects of the workplace envronment. Functonalty and comfort of the workspaces were mentoned by 43%, ICT facltes and ICT support facltes (33%), prvacy (33%) and facltes for remote workng (24%). The least prortsed aspects nclude the subdvson of the whole buldng (not mentoned by any of the respondents as beng one as one of the three most mportant aspects), acoustcs (2%), opportuntes to communcate (2%) and sharng one s own deas about the workng envronment (2%). 182 Performance measurement of workplace change

181 Fgure 55 Rankng of % score awarded by respondents d showng a partcular aspect as beng one of the three most mportant aspects of the workplace envronment (19 aspects) (N=42) 7.7 Employees responses to the work envronment: assessment after the change Respondents The second phase of the research was carred out n August The questonnares were completed by 32 of the 72 employees (44% response rate), 10 female and 22 male (1:2.2 rato). The majorty of partcpants are between 31 and 40 years old (59 %). Most of the partcpants are well-educated wth 44 % holdng a Bachelor s degree and 53 % holdng a degree hgher than a Bachelor s. Employees responded to questons wth regard to the tme spent on dfferent actvtes and n dfferent types of workplaces, preferred locatons, satsfacton and dssatsfacton wth dfferent aspects, most mportant aspects, organsatonal culture and key dmensons of natonal culture. 183 Case 2: Phlps, Bangkok, Thaland

182 7.7.1 Employee satsfacton Fgure 56 shows employee satsfacton on a range of tems. Items that employees apprecate most are lghtng (69% satsfed and very satsfed respondents), organsaton (66%), accessblty of the buldng/functonalty and comfort workspaces/nteror desgn appearance and ambance/facltes for remote workng (62%) and content and complexty of work/ndoor clmate (59%). Some employees are dssatsfed wth not havng prvacy (38% dssatsfed and very dssatsfed respondents), not beng able to share ther own deas about workng envronment/ opportuntes to concentrate/archve and storage facltes (31%) and ICT servces and ICT support facltes (24%). Organsaton Content and complexty of work Sharng own deas about workng envronment Accessblty of the buldng Archtecture and appearance of the buldng Subdvson of the whole buldng Number, dversty, and functonalty of spaces Adjacency and localty of the spaces Openness and transparency of envronment Functonalty and comfort workspaces Interor desgn appearance and ambance Prvacy Opportuntes to concentrate Opportuntes to communcate Archve and storage facltes ICT and ICT support facltes Facltes and facltes management Indoor clmate Lghtng Acoustcs Facltes for remote workng Very dssatsfed Dssatsfed Neutral Satsfed Very satsfed Fgure 56 Percentage of satsfed and dssatsfed respondents wth regard to dfferent aspects (N=29) 184 Performance measurement of workplace change

183 7.7.2 Perceved productvty support Fgure 57 demonstrates the extent to whch the envronment supports the ndvdual productvty (55 %), team productvty (34 %) and organsaton productvty (31 %). Indvdual productvty Team productvty Organsaton productvty (%) Totally unsupportve Unsupportve Neutral Supportve Totally supportve Fgure 57 Percentage of partcpants that perceve the workng envronment as beng supportve to dfferent types of perceved productvty (N=29) Prortsed aspects Fgure 58 shows how employees rank the 3 most mportant aspects of the workplace envronment. Opportuntes to concentrate were mentoned by 45%, prvacy (41%), functonalty and comfort workspaces (34 %), ICT servces and ICT support facltes (28%) and facltes for remote workng (28%). The least prortsed aspects nclude archtecture and the appearance of the buldng (not mentoned by any of the respondents as beng one of the three most mportant aspects), ndoor clmate (3%), facltes and facltes management (3%) and nteror desgn appearance and ambance (3%). 185 Case 2: Phlps, Bangkok, Thaland

184 Fgure 58 Rankng of % respondents markng a partcular aspect as one of three most mportant aspects of the workplace envronment (19 aspects) (N=29) 7.8 Comparsons of employees responses to the work envronment before and after the change Table 33 shows the comparsons made between the employees responses on aspects of the work envronment before and after the change. In the new stuaton, 16 of the 24 aspects have a hgher percentage of satsfed respondents. In most of the aspects regardng the new workplace, the percentage of dssatsfed respondents has decreased. 186 Performance measurement of workplace change

185 Workplace before the change Workplace after the change Dssatsfed Neutral Satsfed Dssatsfed Neutral Satsfed Organsaton Content and complexty of work Sharng own deas about workng envronment Accessblty of the buldng Archtecture and appearance of the buldng Subdvson of the whole buldng Number, dversty, and functonalty of spaces Adjacency and localty of the spaces Openness and transparency of envronment Functonalty and comfort workspaces Interor desgn appearance and ambance Prvacy Opportuntes to concentrate Opportuntes to communcate Archve and storage facltes ICT and ICT support facltes Facltes and facltes management Indoor clmate Lghtng Acoustcs Facltes for remote workng Indvdual productvty Team productvty Organsaton productvty Table 33 Percentage of satsfed, neutral and dssatsfed respondents before and after workplace change wth regard to dfferent aspects 7.9 Cultural context The organsatonal culture survey was conducted usng the Organsatonal Culture Assessment Instrument (OCAI; Cameron and Qunn, 2006). Four organsatonal culture types were used to characterse the survey results: clan, adhocracy, herarchy, and club. The Value Surveys Module (VSM94; Hofstede, 1997) was used to dentfy fve dmensons of natonal culture,.e. power dstance, ndvdualsm, masculnty, uncertanty avodance, and long-term orentaton. 187 Case 2: Phlps, Bangkok, Thaland

186 7.9.1 Organsatonal culture In the case study, the current culture s perceved as a market culture (29.9 ponts), whereas the clan culture (29.8) s the most preferred, however, all of the other culture types also apply. A market culture scores hgh on organsatonal leadershp (Cameron and Qunn, 2006); the leaders are consdered to be demandng and management of employees s usually lnked to an adhocracy culture type. The organsaton s leadershp s charactersed by ndvdual rsk-takng, nnovaton, freedom, and unqueness. The domnant characterstcs are formalzed and structured wth procedures governng what people are to do, whch fts wth the herarchy culture type. The glue that holds the organsaton together s an emphass on wnnng. Success s defned n terms of market share and penetraton. Compettve prcng and market leadershp are mportant. The organsatonal strategy emphaszes compettve acton and achevement. Httng stretch targets and wnnng n the marketplace are domnant. Table 34 dsplays the dfferent aspects of the PTH organsatonal culture. CLAN ADHOCRACY MARKET HIERARCHY Current Prefer Df. Current Prefer Df.e Current Prefer Df. Current Prefer Df. Average Domnant characterstcs Organsatonal leadershp Management of employees Organsatonal glue Strategc emphass Crtera of Success Notes. Respondents are asked to dvde 100 ponts among the four culture types. A hgher number of ponts s gven to the opton that s most smlar to the organsaton. Table 34 Organsatonal culture ndex accordng to the case study (N=42) 188 Performance measurement of workplace change

187 7.9.2 Natonal culture The case study shows that much lower scores on power dstance, masculnty and long-term orentaton have been obtan than what s normally the case n Thaland, and much hgher scores were obtaned on ndvdualsm and uncertanty avodance. Accordng to Hofstede, cultural ndexes are not supposed to be used as cultural generalsatons to stereotype and to suggest that cultural groups are all the same or wll not be altered at all by experence. Ths mght explan why the cultural values n the case study show that the employees are qute dfferent from those of the natonal Tha cultural ndexes. The hgh ndvdualstc culture and low power dstance ndcate that subordnates expect to be consulted and not to be told what to do. The low masculnty score may ndcate that management s by consensus. The low long-term orentaton ndex means that efforts should produce quck results (Hofstede, 1997). Table 35 compares the ndexes of the PTH case wth the natonal data from Thaland (Hofstede, 1997). Index Phlps Thaland* 1. Power Dstance Index (PDI) Indvdualsm Index (IDV) Masculnty Index (MAS) Uncertanty Avodance Index (UAI) Long-term Orentaton Index (LTO) * Thaland data accordng to Hofstede (1997). Notes. Values of each ndex s usually between 0 (small/weak n partcular dmenson) and 100 (large/strong n partcular dmenson), but values below 0 and above 100 are techncally possble. Table 35 Fve key dmensons of natonal culture 7.10 Reflectons Performance measurement The requrement to mprove envronmental qualty of the workplace has an nfluence on specfc performance crtera. The PTH case shows to be more concerned about the effectve use of space through the mplementaton of the workplace nnovaton 189 Case 2: Phlps, Bangkok, Thaland

188 concept. The four perspectves of the balanced scorecard have been found n the PTH case, ncludng proftable revenue growth, customer delght, employee satsfacton, drve to operatonal excellence, organsatonal development and IT support. Beng a market-orented company, PTH focuses manly on nternal stakeholders, and less on external stakeholders. The concern wth nternal stakeholders s vsble n performance measures such as market share, rank n customer survey, repeat order rate complants, and brand ndex. CRE performance measures n lterature and what has been found n the PTH case Based on the Balanced Scorecard, corporate real estate performance measures n the lterature have been classfed n sx categores: stakeholder percepton, fnancal health, organsatonal development, productvty, envronmental responsblty and cost effcency. Table 36 presents the proposed lst of corporate real estate performance measures classfed accordng to Bradley s (2002) sx categores and the performance measures appled n the PTH case. When comparng the proposed performance measures from the lterature wth what was found n practce, t appeared that there were both strkng smlartes and dfferences. 1. Stakeholder percepton Proposed performance measures accordng to the lterature PTH Employee satsfacton wth work envronment Employee satsfacton wth CRE servces Customer satsfacton wth facltes Qualty of ndoor envronment: lghtnng, ar condtonng, temperature, nose level, etc. Provson of safe envronment Locaton success factors (access to employees, amount of local amentes) Rato of offce to common areas Provson of amentes Amount of workplace reforms and space modfcatons Employee satsfacton wth professonal sklls Employee satsfacton wth nformaton sharng Survey ratng (e.g. customer/tenant survey of the facltes, buldng, property management and CRE servces) Number of complants Average call frequency and cost per square foot help desk Locaton success factors (proxmty to requred transportaton, access to customers, dstance to other stes and busnesses) Employee atttude survey (perceptons and atttudes related to employee satsfacton) Employee satsfacton survey conducted by Phlps Real Estate Employee satsfacton survey conducted by the author (the WODI tool) Rank n customer survey* Number of Complants* Communty and well-beng The contrbuton to publc polcy and socetal prortes NA 2. Fnancal health Value of property, plant and equpment Busness return on real estate assets Real estate return on nvestment Real estate return on equty Sales or revenue per square foot (metre) Space (square feet or metres) per unt of revenue Return on property management NA >>> 190 Performance measurement of workplace change

189 3. Organsatonal development Proposed performance measures accordng to the lterature PTH Qualty of facltes Accommodaton usage CRE unt qualty 4. Productvty Employee productvty Strategc Involvement 5. Envronmental responsblty Resource use Waste 6. Cost effcency Occupancy costs Operatng costs (buldng and FM) Physcal condton of facltes Sutablty of premses and functonal envronment Number of buldng qualty audts Square feet per employee Effectve utlsaton of space (e.g. amount of teamwork space, vacancy rates, tme wasted wth nterruptons due to open space layout) Tme used n project versus tme budgeted for the project Money spent on project versus money budgeted on the project Amount of advce gven to other busness unts Productvty (% of perceved productvty support from workng envronment) Absentee rates by buldngs CRE nvolved n corporate strategc plannng CRE ntegrated wth HR strateges CRE actvely nvolved n frm-wde ntatves such as specal asset use, consoldatons, or shared servces opportuntes Energy consumpton Number of energy audts Contamnated stes management Amount of garbage Total occupancy cost per employee Occupancy cost as a % of total operatng expense Occupancy cost as a % of operatng revenue by buldng or busness unt Total operatng expendtures versus budget ncludng: general admnstraton; captal expendtures; moves, adds, rearrangements; faclty/propertes servces; other busness servces (mal, and copy centres, rsk, and/or securty) Faclty management costs (envronment, workng condtons, qualty) Rsk management and busness control (strategc, operatonal, complance and fnancal rsks)* NA Percentage reducton n process cycle tme* Number of engneerng changes* Capacty utlzaton* Order response tme* Process capablty* * does not drectly relate to real estate, NA not appled.e. not measured or no data avalable, **43 Baht = 1 euro Table 36 CRE performance measures from the lterature (left) compared to case study fndngs (rght) Health & wellbeng n the workplace through the workplace nnovaton (WPI) Productvty survey (WODI) The mplementaton of the WPI Smart IT solutons for the ntroducton of WPI Green products* Energy effcency mprovement Collecton and recyclng of company s products* Amount of recycled materals n company s products* NA Offce rent (Baht/sq.m./ month)** Utlty (electrcty & water) cost/unt Parkng cost/month Overhead cost* 191 Case 2: Phlps, Bangkok, Thaland

190 1 Stakeholder percepton The fndngs show that n the PTH case, there s more concern wth nternal stakeholders (.e. employees and clents). The concern wth employee satsfacton wth the work envronment reflects workplace change objectves n mprovng the envronmental qualty of the workplace. 2 Fnancal health The PTH apples fnancal performance measures as demonstrated n the organsaton s crtcal success factors (.e. value, growth and productvty) and performance ndcators ncludng economc proft, ncome from operatons, workng captal, operatonal cash flow and nventory turns. Fnancal performance measures that are related to real estate appear to be mssng. 3 Organsatonal development The organsatonal development perspectve ncludes ndcators related to the nternal busness process perspectve of the balanced scorecard. Most PTH performance measures found n ths perspectve are not related to real estate. Although the PTH case ncludes performance measures related to rsk management and busness control, these measures are not related to the qualty of facltes. 4 Productvty The PTH case focuses on smart IT solutons for the ntroducton of workplace nnovatons that are consdered to be the strategc nvolvement of corporate real estate. The strategc nvolvement of corporate real estate n connecton to human resource strateges s vsble n the mplementaton of the workplace nnovaton (WPI) that helps to mprove health and well-beng n the workplace. Accordng to the lterature, ths approach focuses on the provson of an offce envronment that enables employees to ncrease ther productvty. Ths approach s consdered as the shft from cost reducton to human contrbuton wth regard to offce productvty (Haynes, 2007). 5 Envronmental responsblty PTH s concerns about energy performance are shown by the focus on green products, energy effcency mprovement, recyclng of company s products, and the amount of recycled materals n the company s products. However, these performance measures are not drectly related to real estate. 6 Cost ef fcency PTH rents a commercal offce space wth a fxed rental prce/square metre/month that s consdered as occupancy costs. The PTH operatng costs nclude utlty costs/ unt (.e. electrcty & water) and parkng costs/month. Another area related to cost effcency s the overhead cost reducton, however, these performance measures are not related to real estate ether. 192 Performance measurement of workplace change

191 Employees responses to the work envronment Employee satsfacton The fndngs show that the busness type, staff characterstcs and work processes of PTH have an nfluence on the mplementaton of the nnovatve workplace concept that may account for the hgh percentage of satsfed respondents n several aspects of the PTH workplace. The flat structure of the PTH organsaton allows employees to become nvolved durng the desgn process, whch agan has led to the hgher satsfacton percentage n sharng ther own deas about the workng envronment, number dversty and functonalty of spaces, nteror desgn appearance and ambance, and openness and transparency of envronment. The hghly compettve busness envronment of PTH requres a partcular type of employee. Ths results n hgh expectatons regardng the effectve workplace that supports creatve and group work. In terms of work processes, there are two types of employees workng at the Phlps Lghtng department, namely, moble and nonmoble workers. The moble workers work outsde the offce most of the tme, whereas the non-moble workers are offce-based. The dfferent work actvtes of these two groups requre specfc desgn crtera and polces regardng the use of work settngs. Located n the cty centre, the PTH Grade A offce buldng s apprecated by the employees, as ths s reflected n the hgh satsfacton score regardng the accessblty of the buldng and nteror desgn appearance. The shared workspaces and storages for moble workers, the varous types of work settngs and functonal workspaces have been facltated n the new workplace. Ths resulted n the hgh percentage of satsfed respondents regardng several aspects of the work envronment ncludng facltes for remote workng, facltes and facltes management, and adjacency and localty of the spaces. The new layout desgn has mproved the connecton between spaces compared to the prevous one, and ths has led to mproved employee satsfacton wth regard to the subdvson of the buldng. In addton, the more square meters per person has resulted n a much hgher percentage of satsfed respondents regardng the opportuntes for concentrated work. However, PTH separated the workplace of the lghtng department from other unts, whch affects opportuntes for communcaton. The fndngs show that the ICT servces and the ICT support facltes are a dssatsfer (Herzberg, 1987). Ths aspect showed slght mprovement (52% of satsfed respondents compared wth 48% n the former stuaton), and t was one of the top three most dssatsfed aspects n the new stuaton. It s evdent that dssatsfacton wll reman hgh f ths aspect s not fulflled. 193 Case 2: Phlps, Bangkok, Thaland

192 Perceved productvty support The fndngs from the PTH case after the change show strkng dfferences between the perceved productvty support. The perceved support of team and organsaton productvty dropped whereas the ndvdual productvty ncreased after the change to the new workplace. There are varous groups of employees n the Phlps lghtng department, but team spaces were not provded to support group work whch caused dffcultes n communcaton and for workng n teams. It was concluded that the lack of team space caused the lower satsfacton percentage n team and organsaton productvty whch was observed after the change. The negatve mpact of workplace desgn on perceved productvty support s vsble n ths case. Prortsed aspects PTH employees ndcated that the need for functonal comfort n order to support and mprove task performance, receved hgh prorty regardng the functonalty and comfort of the workspaces and the opportuntes to concentrate. Functonal comfort focuses on the generc human need for tools to perform specfc tasks; t defnes the workspace as a tool for gettng work done (Vscher, 2008). Conceptual model of workplace change apprasal A conceptual model has been used to explore the relatonshp between the varables mpactng on an apprasal of workplace change (Fgure 59). The complex relatonshp between the three groups of varables (Start, Medatng and Outcome) of ths conceptual model s shown n Table 37. Organsaton - Busness types - Objectve - Structure - Staff characterstcs - Organsatonal culture - Natonal culture Organsaton - Busness types - Objectve - Structure - Staff characterstcs - Organsatonal culture - Natonal culture Work process - Daly actvtes: what, when, how, by whom, where Precondtons - Tme - Money - Informaton Workplace before change - Locaton - Buldng grade - Archtectural desgn - Workplace concept - Supportng facltes Implementaton process - Workplace change objectves - Drvers to change - Change management Workplace after change - Locaton - Buldng grade - Archtectural desgn - Workplace concept - Supportng facltes Work process - Daly actvtes: what, when, how, by whom, where Precondtons - Tme - Money - Informaton External context - Legslaton - Economc stuaton - Labour market Apprasal of change - Employee satsfacton - Perceved productvty support - Prortsed aspects External context - Legslaton - Economc stuaton - Labour market Fgure 59 Relatonshp between varables mpactng on an apprasal of workplace change (Rratanaphong & Voordt, 2012) 194 Performance measurement of workplace change

193 Relatonshps between varables of the conceptual model Table 37 demonstrates assumed causal relatonshps between characterstcs of the organsaton, work process, precondtons, external context and mplementaton process as start varables wth medatng varables of workplace change such as locaton, archtectural desgn and workplace concept, and the apprasal of change as an outcome. Start varables Medatng varables Outcome Organsaton Busness types Consumer lghtng busness Structure Flat structure Staff characterstcs Moble workers Staff characterstcs Specalsts n consumer lghtng ndustry Organsatonal culture Market culture Natonal culture Indvdualstc culture Work process Daly actvtes Creatve and group works Precondton Money Investment budget Implementaton process Workplace change objectve To ncrease floor space and to mprove envronmental qualty Change management Communcaton wth employees Workplace change Workplace concept Dfferent types of workspaces for lghtng specalsts Workplace concept Employees become nvolved durng the desgn process that contrbuted to the mproved work envronment Workplace concept Workplace wth varous types of work settngs and functonal workspaces Workplace concept Layout and work settngs desgned for the effectve use of spaces Workplace supports creatve and group works Buldng grade, locaton Grade A offce* n the cty centre Workplace concept The provson of prvate rooms Workplace concept Workplace supports collaboratve work Locaton, buldng grade New workplace s located n the cty centre n Grade A offce* Workplace concept The new layout desgn that mproves the connecton between spaces better than the old one More square meters area per person Supportng facltes ICT and ICT support facltes Workplace concept Team spaces are not provded to support group works Apprasal of change Employee satsfacton Hgh satsfacton percentage n number, dversty, and functonalty of spaces Employee satsfacton Hgher satsfacton percentage n sharng own deas about workng envronment and number dversty and functonalty of spaces Employee satsfacton Hgh percentage of satsfed respondents n facltes for remote workng Prortsed aspects Employees ndcate the emphass on functonalty and comfort of the workspaces and opportuntes to concentrate. Employee satsfacton Hgh percentage of satsfed respondents n nteror desgn appearance and ambance Prortsed aspects Employees ndcate the emphass on prvacy Employee satsfacton Hgh satsfacton percentage n functonalty and comfort workspaces Employee satsfacton Hgh satsfacton percentage n accessblty of the buldng and nteror desgn appearance Employee satsfacton Improved employee satsfacton wth regard to subdvson of the buldng and Hgh percentage of satsfed respondents regardng the opportuntes to concentrate Employee satsfacton ICT and ICT support facltes s one of the top three most dssatsfed aspect Perceved productvty support Lower satsfacton percentage n team and organsaton productvty after the change Bold = man varables, *charactersed by an offce that has exceptonal buldng desgn and servces (CBRE, 2012) Table 37 Relatonshps between varables of the conceptual model appled to the PTH case 195 Case 2: Phlps, Bangkok, Thaland

194 The consumer lghtng busness of the PTH case has been supported by the work envronment that supports task performance such as a large workshop room for lghtng specalsts and a storage room for sample products. The polces wth regard to the use of dfferent types of workspaces have resulted n a hgh satsfacton percentage n number, dversty, and functonalty of spaces and functonalty and comfort workspaces. The flat structure of the PTH case allows employees to get nvolved durng the desgn process and has resulted n a hgher satsfacton percentage n sharng own deas about workng envronment and number dversty and functonalty of spaces. Staff characterstcs nfluence workplace desgn wth varous work settngs that can support dfferent work actvtes whch have resulted n the hgh satsfacton n facltes for remote workng and facltes and facltes management. Ths also has resulted n the emphass on functonalty and comfort of the workspaces and opportuntes to concentrate. Market culture s reflected by the choce to occupy a Grade A offce buldng n the cty centre that ams to attract clents. The Grade A offce resulted n a hgh employee satsfacton score regardng nteror desgn appearance and ambance. The provson of prvate rooms can be vewed as a way to strengthen the emphass on prvacy n the ndvdualstc culture. One precondton s an nvestment budget whch enables PTH to rent offce space n the cty centre wth hgh-qualty buldng desgn and servces. Ths resulted n a hgh satsfacton score regardng the accessblty of the buldng and nteror desgn appearance. Workplace change objectves nfluenced the decson to occupy a larger floor area and a new layout, whch helped to mprove the connectons between spaces. Ths resulted n a hgh satsfacton score regardng the opportuntes to concentrate, and the mproved employee satsfacton wth the subdvson of the buldng. Supportng facltes such as ICT servces and ICT support facltes were not apprecated by the employees because the offce was smply moved to a new workplace, so some functons were not fully mplemented. The lack of team space for group work caused a lower satsfacton score n team and organsaton productvty followng the workplace change. Ths ndcates a need to have better channels of communcaton wth employees durng the mplementaton process. The assumed causal relatonshp can be explaned by the lnks of varables n the conceptual model as shown n Table 37. However, there should be a drect lnk between the organsaton and the apprasal of change n the conceptual model;.e. 196 Performance measurement of workplace change

195 employee satsfacton n organsaton and content and complexty of work. These two tems are not related to the physcal work envronment, but they can have an mpact on the apprasal of change. Ths has led to the slghtly adapted conceptual model, whch descrbed n Chapter Cultural context The feld research dentfed the varous types and dmensons of organsatonal and natonal culture. However, connectons to other varables of the research are dffcult to trace and to understand. PTH occupes a Grade A offce n the cty centre, whch can be easly accessed for busness contacts. The hgh qualty of buldng desgn and servces am to attract clents. Ths focus on transactons wth customers and supplers s consdered as a market culture. Ths culture type has had an effect on the hgh satsfacton percentages n the accessblty of the buldng and the nteror desgn appearance and ambance wth regard to the locaton and buldng grade characterstcs. In addton, the mplementaton of PTH s workplace nnovaton program trggered the culture change, enablng cooperaton wthn teams that also reflects the clan culture. By havng a workplace that promotes teamwork, partcpaton, and consensus, a successful nternal clmate whch s concerned about people can be acheved n ths culture (Cameron and Qunn, 2006). Accordng to the lterature, an extreme emphass on ownng space s based on ndvdualsm (Altman, 1975). People n ndvdualstc cultures are more dstant proxmally (Gudykunst and Matsumoto, 1996). The relatonshp between ndvdualsm and workplace can be descrbed as dsplayng the need for prvacy whch s sgnalled by closed doors, soundproofng, double doors, or trees along property lnes (Hall, 1966, Altman & Gauvan, 1981). The provson of the prvate rooms for telephone calls or meetngs at the PTH workplace can be seen as placng an emphass on prvacy n the ndvdualstc culture. The characterstcs of cultures that value ndvdualsm are descrbed as a socety where people s personal goals take prorty over ther allegance to groups such as the famly or the employer. A culture orented to ndvdualsm mght hghly value the ablty to work ndependently. In the ndvdualstc culture, changng the work envronment may nfluence the perceved productvty of the ndvduals better than those of the team and organsaton. 197 Case 2: Phlps, Bangkok, Thaland

196 Conclusons The research fndngs show that PTH apples performance measurement at multple levels (.e. ndvdual and organsaton). The connectons between the varables n an organsatonal context, performance crtera and performance measures are vsble n the case study. In the PTH case, we see a focus on an effectve use of space n the mplementaton of workplace nnovaton, whch can be explaned by the type of busness, staff characterstcs, and PTH work processed. The fndngs show that performance measures n the PTH busness unts are algned wth the four perspectves of the balanced scorecard. Based on the balanced scorecard, the sx perspectves of corporate real estate performance measures n the lterature can be used as a reference to compare wth the performance measures used n current practce, as nput to consderng for the mprovement of the effcency and effectveness of performance measurement. The fndngs show connectons between varables n the conceptual model (.e. organsaton, workplace change and employees responses to the work envronment), and confrm that the conceptual model can be used to understand the complex relatonshp between these varables. However, the satsfacton wth organsaton can also have an mpact on workplace apprasal (ndcated by employee satsfacton about the organsaton tself) and should be brought nto the model. The cultural context varable provdes a better understandng of the role that organsatonal and natonal culture plays n relaton to workplace change and the apprasal of change. However, the explanaton of the fndngs (.e. performance measurement, the apprasal of change) n connecton to natonal and organsatonal culture s qute dffcult and more exploratve and nterpretatve than concludng. In addton, the mpact of natonal culture s much less vsble and explanng the results than mght be expected. 198 Performance measurement of workplace change

197 8 Case 3: Waterschap Rverenland, Tel, The Netherlands 8.1 Introducton Ths chapter presents fndngs from a Dutch case study, Waterschap Rverenland (WSRL), on the mpact of workplace change after the organsaton moved to a new buldng. Ths study ams to dentfy the performance measurement frameworks and crtera as well as the performance measures/kpis taken by the case organsaton, and to collect new data concernng the employees responses to the changed work envronment. Another goal s to explore the contextual backgrounds of both the organsatonal and natonal cultures that may have had an mpact on workplace performance. The fndngs of ths case study wll be used for makng a cross-case comparson wth the other two Tha case studes n Chapter Research methods The data collecton methods ncluded document analyss and fndngs from three separate questonnares. Data on performance measurement were collected from revewng company s reports and nformaton obtaned from the Internatonal Affars Offcer of the case organsaton. Informaton wth regard to real estate performance was gathered from the Rsk Inventory and Evaluaton (RI&E) and ntervews were conducted and reports were wrtten by the Center for People and Buldngs (CfPB). The fndngs concernng the mpact of workplace change were derved from the results obtaned from the post occupancy survey carred out by the CfPB n 2008 (Maarleveld and Bruna, 2009). The survey was conducted by usng the work envronment dagnoss nstrument (WODI) tool to evaluate the employees responses to the changed work envronment n three areas: employee satsfacton, perceved productvty support and prortsed aspects. Ths tool has been descrbed n more detal n Chapter 3. The Organsatonal Culture Assessment Instrument (OCAI; Cameron and Qunn, 2006) was used for assessng organsatonal culture. Natonal culture was measured by usng the Value Surveys Module 94 (VSM94; Hofstede, 1997). Both the OCAI and VSM94 questonnares have been dscussed n Chapter Case 3: Waterschap Rverenland, Tel, The Netherlands

198 8.3 Case descrpton WSRL s a Dutch company whch s responsble for the safety of water ncludng dke management, water management, water treatment, waterways and groundwater management. It s an ndependent local authorty governed by a democratcallyelected government. The WSRL was establshed when followng former polder dstrcts merged together: Betuwe n Elst (Gld), Great Maas and Waal n Druten, Teler and Culemborgerwaarden Geldermalsen, Lnge, Geldermalsen and Rverland. The varous tasks nclude water management, flood protecton, water qualty and waterway management and they have all been bundled together snce ths merger. Fgure 60 depcts the new Waterschap Rverenland buldng. Fgure 60 The Waterschap Rverenland buldng, Tel, The Netherlands. Source: Waterschap Rverenland The WSRL s responsble for water control n the rver areas n The Netherlands. Its man objectve s to protect the rvers so that t s safe for people to lve along them. The management area s n four provnces of Gelderland, Utrecht, North Brabant and South Holland. The msson of the company s to dlgently work on sustanable water management. In terms of dlgence, a certan degree of enthusasm for one s work s encouraged n order to acheve effcent and effectve results. Sustanablty ncludes a number of nterests such as man and nature and quantty and qualty. Taxpayers are also taken nto account. The 500 staff members work on the followng man tasks: water management (.e. mantenance, water levels, water qualty) management of dkes and dranage quays management and mantenance of roads outsde the bult-up areas n the Alblasserwaard and the Vjfheerenlanden the treatment of waste water 200 Performance measurement of workplace change

199 muskrat and coypu control n Gelderland management of the waterways n Lnge, Smoutjesvlet, Alblas, Gessen and Graafstroom Organsatonal structure Fgure 61 shows the organsatonal structure of the WSRL whch ncludes fve departments: 1) admnstratve and management support, 2) water management, 3) safety, 4) purfcaton and 5) the audt commttee department. Apponted by the government, the organsaton s commttee conssts of a group of ndvduals who fll admnstratve roles and who are responsble for selectng core personnel,.e. members of the audt commttee and rsk management personnel. Secretary-Drector Commttee Management Support Management and Polcy Communcatons Water systems Safety Purfcaton Audt commttee Secretarat Secretarat Secretarat Secretarat Plans Enforcement Polcy and Advce Fnance Knowledge and Polcy Integrated Water Adm. provder support. Water and Dkes Constructon Busness Techn.adm. med. Project leaders Fnancal Polcy Fnancal Management Water treatment Companes Cvl Engneerng Taxes Projects Plannng W&E Leves Sedment KIW Operatonal tasks Fghtng muskrats Operatonal Purfcaton Lngewaal Recoveres Personnel and Organzaton Mantenance Adm. provder support. Area 1 Maas/Waal/Bee k Goes Computerzaton and Automaton Busness Offce West North South Pelbeh./Vaarw. Area 2 Area 3 Area 4 Area 5 Njmegen Overbetuwe Tel Bommelerwaard Informaton Analyst Automaton GIS Facltes Management DIV Permts EIA mantenance Faclty Management Choce Pelbeh. / Waterways WVO Laboratory Fgure 61 Organsatonal structure 201 Case 3: Waterschap Rverenland, Tel, The Netherlands

200 Work process The work actvtes determne the choce for the workplace. In ths way, knowledge sharng s stmulated throughout the workplace more effcently. The buldng has four floors and the vstors and staff are accommodated n a prvate recepton hall. Each floor conssts of several wngs marked wth numbers (floor) and letters (wng) on the carpet and columns n accordance wth drectons n whch arrows pont the way. Employees who have smlar job postons and tasks are located n the same wng. There are 400 workstatons for 500 employees that can be estmated to 7 square metres per person dependng on ther work actvtes. The total floor area s 12,500 square metres. A meetng area wth nformal seatng and coffee machnes s stuated on each floor. Staff members occupy an open workstaton separated by low cupboards. Team meetng rooms and cockpts wth computers are provded. There s a staff dnng room wth an adjacent terrace on the ground floor. There are also several meetng rooms whch staff can reserve n advance. 8.4 Workplace change Waterschap Rverenland has been formed from several partners whch used to be located n eght dfferent locatons. After the partes had all merged, these locatons were reduced to nclude only three locatons. In order to foster cooperaton and ntegraton, the organsaton decded to accommodate all of the employees n one large buldng n In December 2006, the offce n Tel was chosen to be the new headquarters. Here, a new workplace concept was conceved whch ntegrated work styles and n whch dgtalzaton was ntroduced. The objectves of the new workplace are to promote the qualty of the work envronment so that the space can be used effectvely, and to convey a sense of professonalsm by focusng more on the customer. Fgure 63 demonstrates the new workng envronment that has been mplemented at Waterschap Rverenland. After the move, the objectves and prncples of the new workplace were ntroduced and regulated as follows. Objectves to promote the ntegraton of the merger and ntegral partners to mprove the qualty of the work envronment to stmulate mutual communcaton and the exchange of nformaton to make more effectve use of space Prncples there should be a sutable workplace for each actvty mult-functonal spaces should be maxmsed employees should work together whenever possble 202 Performance measurement of workplace change

201 there should be a consderable degree of dgtzaton the use of the workplace s orented towards work processes Workplace after the change The man offce buldng s based n Tel. Ths buldng s easly accessble by car as t s only a few mnutes off the ext from the hghway. The accessblty by bus takes sx mnutes from the Tel ralway staton to reach the buldng. There s an on-ste car park for 320 cars. However, there are no amentes nearby. The offce s a new, modern buldng desgned that has been partcularly desgned for durablty. Sustanablty s clearly reflected n the use of materals and ranwater. The water that falls on the roof can be reused and collected to flush the tolets wth. The clmate control system of the buldng works accordng to the groundwater s temperature. Ths system reduces the emsson of pollutants such as carbon doxde as opposed to another system whch works on gas. The sustanable objectve of the organsaton s reflected n the desgn of the buldng and the workplace as well, for example, n the use of brck and the rounded shape of the buldng. The cockpts are decorated wth natural materals such as sandbags, rocks and plants. The workplace has been facltated so as to support the new way of workng. The flex workplace has been provded wth a varety of work settngs and workspace layouts that can support varous work processes. The applcaton of the flex workplace concept wth flexblty and the multfunctonal use of space s approprate to sut the changng needs of accommodaton such as buldng extensons and/or any adaptatons that mght be made. The polces wth regard to the flex workplace are also n place. Ths ncludes the clean desk polcy, document management, and archve and storage facltes. Fgure 62 The Waterschap Rverenland buldng, Tel, The Netherlands. Source: Waterschap Rverenland 203 Case 3: Waterschap Rverenland, Tel, The Netherlands

202 Fgure 63 Fgure 63 (1-4 Interor and exteror of the new buldng. Source: Waterschap Rverenland) Fgure 63 (5-8 Workspaces and support facltes. Source: Waterschap Rverenland) 204 Performance measurement of workplace change

203 Preparaton and mplementaton process The workplace change was managed by a small steerng commttee that s chared by the water board. The steerng commttee conssts of resource drectors, a daly board of resource portfolo, a secretary drector, constructon manager and representatves from workers as audence. The constructon project was concerned wth the hardware (buldng) whereas the project Habt@ specfcally dealt wth the software (the offce concept and staff awareness). A human resource manager also served as a representatve durng the project Habt@ whch was part of a tranng programme that allows employees to take part n the new workplace concept. The Human Resource Manager also sought to ensure that the new handlng standards and the company s core competences were algned. An advsory board was comprsed of 50 employees who served as representatves of each group, whch ncluded approxmately 10% of the total number of employees. The tasks of the board ncluded: 1) gatherng opnons and deas and proposng decsons of the board, 2) transferrng the plan to each group and 3) channelng nput from the workplace. A focus group was carred out to gather opnons from an employee s perspectve such as choosng offce furnture and antcpatng the regulatons regardng the new offce concept. Employees could express ther deas by sendng ther thoughts to the project s drect e-mal address. The new buldng has been bult wth the am of promotng ntegraton and cooperaton durng the merger between the partners. It s meant to enhance the qualty of the work envronment and to use the space more effectvely. In cooperaton wth the Center for People and Buldngs (CfPB), the user satsfacton survey was carred out n 2007 and 2008 wth the am of assessng the employees responses n regard to the new work envronment concernng several aspects. The fndngs revealed that several aspects should be mproved such as prvacy, concentraton, ICT and ICT support facltes, the accessblty of the buldng, and the archve and storage facltes. Partcpatory project approach A human resource manager was a member of the steerng commttee and acted as an observer There was a focus group of 50 employees. All knds of plans and deas were presented to the focus group rangng from prelmnary workplace desgn, choce of furnture and PCs, and specfcatons for telephonng, caterng and cleanng The desgn was transparent. Employees partcpated n varous stages of workplace desgn. Ths partcpaton led them to choose PCs wth certan specfcatons and to decde to have wndows that could be opened The project Habt@ nvolves dfferent actvtes such as employee nvolvement and motvaton and communcaton wth employees In 2004, some areas of the WSRL s offce spaces were transformed to nclude a flex workplace where employees could meet to ar ther opnons. 205 Case 3: Waterschap Rverenland, Tel, The Netherlands

204 A contest was held n order to fnd a name for the new offce. Employees partcpated n the meetng and posed questons regardng the progress beng made Employees can send questons or remarks concernng the project va e-mal The new ways of workng such as the mplementaton of a clean desk polcy were ntroduced through varous actvtes Employees were regularly remnded about the mpendng constructon Occupancy surveys were conducted after the mplementaton had been carred out n 2007 and Performance measurement Performance measurement of Waterschap Rverenland (WSRL) ncludes three man areas: 1) polcy and management processes, 2) fnance and 3) operaton. Real estate performance can be dvded nto two categores: 1) User satsfacton survey and 2) Rsk Inventory and Evaluaton. In addton, the relatonshps wth dfferent stakeholders are descrbed n ths secton. 1 Polcy and management processes Polcy and management processes developed for the WSRL case can be descrbed as follows (Waterschap Rverenland, 2006): objectves are clear to all concerned scope of work s clearly descrbed authortes and dutes are understood by all partes collectve responsbltes are clearly mentoned authortes enforced n the operaton are kept to the mnmum as much as possble unty of governance and admnstratve organsaton should be promoted actve partcpaton n external consultaton bodes should be undertaken 2 Fnance The fnancal needs are determned by the cash avalable to be deposted at the current value of the assets. In addton, cash lmts and standard nterest rates are two fnancal standards that have to be met accordng to company regulatons. 3 Operaton The management of the WSRL s a combnaton between the nternal organsatonal unts and processes that support the prmary functons of the organsaton. Ths ncludes the management of the organsaton, personnel, qualty, health, safety & envronment, polcy accountablty, nformaton polcy, accommodaton, and faclty 206 Performance measurement of workplace change

205 servces. These support processes are essental for the prmary functons to operate and for the effcency and effectveness of the polcy mplementaton. Real estate performance 1 User satsfacton survey In terms of human resource management, the organsaton mplements a user satsfacton survey every two years. The survey evaluates the overall employee satsfacton, content of work, quantty of work and relatonshps wth colleagues. The ar n my workplace s alrght (free of dust, odours, enough oxygen) At my workplace, the temperature n all seasons s alrght I have enough space at my workstaton The lghtng n my workplace s alrght (suffcent, no reflecton, no problem wth sunlght) My workplace s generally not hndered by nose My workplace has a pleasant appearance/atmosphere Strongly dsagree Dsagree Nether agree nor dsagree Agree Strongly dsagree Fgure 64 User satsfacton survey: workplace/physcal condtons (InternetSpegel, 2009) A fve-pont scale questonnare s made up of the modules. Each module conssts of a number of specfc topcs whch request the respondents opnons. Fgure 64 llustrates the results obtaned from a topc of workplace/physcal condton of the WSRL workplace n The green colour sgnfes very satsfed or strongly agree and red sgnfes very dssatsfed or strongly dsagree. 2 Rsk Inventory and Evaluaton The WSRL requested that the Arbo Une, a company specalzed n occupatonal health servces, conduct a Rsk Inventory and Evaluaton (RI&E) assessment. RI&E conssts of an nventory that has been taken of the rsks that exst wthn a company concernng the health, safety and welfare of ts employees. Accordng to Dutch law regardng labour condtons, t s compulsory that large organsatons n The Netherlands conduct an RI&E assessment. The organsatons are examned by a certfed occupatonal health servce and/or professonal servce. The evaluaton of these hazards conssts of a rsk estmate, whch examnes the probablty of a hazard occurrng, the effect t mght have and the frequency wth whch workers are exposed to the partcular hazard. The fndngs usually lead to a plan of acton that ncludes plottng out the measures the employer ntends to take n relaton to the rsks whch have been dentfed, and the 207 Case 3: Waterschap Rverenland, Tel, The Netherlands

206 perod n whch measures are to be taken n order to reduce these rsks and to mprove the health and safety (Blok et al., 2012). The evaluaton was conducted n November The RI&E ncludes the mappng of rsks, estmatng the rsks accordng to a rankng that sets and tests standards and regulatons. The rsks were dentfed and classfed so as to take approprate acton or make recommendatons. The fndngs are tested to see f they adhere to statutory regulatons and current nsghts. The evaluaton covers the followng subjects: Offce Santary Relaxaton areas Ktchen and canteen Clmate Workstaton Shaft spaces Structural safety Terran and roads Company s emergency assstance Vstors Stars Floors Lfts Lghtng Aggresson Electrcty These subjects consst of 101 assessment ponts. The assessment provdes recommendatons on how the rsks can be reduced and/or controlled. The subjects are assessed and then they are provded wth a rsk classfcaton as follows: 1 Hgh Rsk Acton - mmedate acton s necessary 2 Moderate Rsk - term acton necessary 3 Low Rsk - acton advsed Relatonshps to dfferent stakeholders (Polhus and Hemstra, 2004) The varous tasks of WSRL nvolve dfferent stakeholders that can be lnked to dfferent perspectves regardng performance. Fve aspects of the WSRL characterstcs, roles and responsbltes can be explaned n relaton to the performance measures such as: 1 Weghng dfferent nterests The WSRL board s elected by voters n the management areas. Therefore, the general admnstratve control of ths area n whch nterests often conflct must be weghed. 208 Performance measurement of workplace change

207 2 Issung and upholdng of rules Ths aspect covers the ssung of lcences and makng exemptons concernng complance. A tool such as admnstratve enforcement s appled. Offcal and admnstratve actons of the WSRL are the key for provdng proper prncples for drectors. 3 Developer/water manager The WSRL perodcally makes a water management plan. Ths plan serves as the bass for an nvestment plan. The plan depends on other organsatons such as the agrcultural and fshng ndustry, as well as other governmental nsttutons that are found n the provnces and muncpaltes. The so-called waster chan s the nterface between the partners wth regard to the sewage and water treatment. Fnally, the relatonshp and role of the WSRL wth other governmental agences (rvers, coastal and terrtoral) focus on how external partes can become nvolved and how these partes can nteract wth the other partes. 4 Admnstrator Admnstratve tasks nclude the dredgng, management and mantenance of the waterways. The tasks regardng ths aspect are expected to be ratonal and flexble. Ratonal refers to the effcency of management mplementaton. The management responsblty ncludes the costs and benefts that can be acheved. Another task whch needs to be done s the management of personnel. Employees are consdered as representatves of the WSRL. Thus, employee satsfacton s beleved to be very mportant. Human resources s an mportant factor that deserves attenton n order to mprove organsatonal performance. HRM s also one of the success factors of WSRL s performance. The development of tasks requres a dfferent atttude towards the envronment because each task carres wth t a partcular dynamc and entals the sklls and competences of personnel. For example, when the WSRL acts as a developer, the emphass s on relatonshps and partnershps. Below Table 38 lsts the varous tasks and relatonshps wth external partes n regard to the types of performance aspects (Polhus and Hemstra, 2004). Tasks of WSRL External relatons Nature of relatonshp Type of performance Weghng dfferent nterests Voter Representatve Recognzable, approachable Servce provder Customer Servce adequate, proactve Issung and upholdng of rules Subject Subordnate Predctable, consstent Developer/water manager Partner Equvalent Vsonary, Partnershp orented Admnstrator User Remote Ratonal, flexble Table 38 WSRL tasks and relatonshps wth nternal and external partes n relaton to the types of performance aspects (Polhus and Hemstra, 2004) 209 Case 3: Waterschap Rverenland, Tel, The Netherlands

208 8.6 Employees responses to the work envronment Ths research study nvestgates two separate areas: 1) the mpact of workplace change on employee satsfacton, perceved productvty and the prortsed aspects of the work envronment and 2) the evaluaton of natonal and organsatonal culture. The frst area of research was conducted by the Center for People and Buldngs (Maarleveld and Bruna, 2009). The second area of research was conducted by the researcher of ths PhD thess. Respondents The WODI questonnares, whch are used as a tool for obtanng an ndcatve evaluaton wth a focus on overall employee satsfacton and the perceved support of labour productvty through the workng envronment. These questonnares were completed by 307 employees from a total of 416 (74% response rate). Most of the respondents were between 31 and 40 years old, and 70% were male respondents. The majorty of the partcpants were well-educated wth 50% havng receved a college educaton. The largest group of respondents (32%) s employed by the Water Management, followed by the Resource Management department (22%), the Safety Management department (20%), the Human Resource department (15%) and the Treatment Management department (11%) Employee satsfacton Fgure 65 shows employee satsfacton on a range of tems. Nearly half of all the aspects obtaned a score ndcatng satsfacton from more than 70% of the employees. The tems whch receved the most postve score ncluded archtecture and appearance of the buldng (91% satsfed and very satsfed respondents), content and complexty of work (83%), the subdvson of the whole buldng (80%), followed by adjacency and localty of the spaces (76%), opportuntes to communcate (75%), accessblty of the buldng (72%) and functonalty and comfort workspaces (70%). The less apprecated aspects were prvacy (44% dssatsfed and very dssatsfed respondents) and opportuntes to concentrate (40%). The respondents are also dssatsfed about the archve and storage facltes (30%), ndoor clmate, lghtng and acoustcs (29%) and ICT and ICT support facltes (27%). 210 Performance measurement of workplace change

209 Number, dversty, and functonalty of spaces Subdvson of the whole buldng Openness and transparency of envronment Adjacency and localty of the spaces Archtecture and appearance of the buldng Content and complexty of work Organsaton Accessblty of the buldng Sharng own deas about workng envronment Functonalty and comfort workspaces Facltes and facltes management ICT and ICT support facltes Facltes for remote workng Indoor clmate, lghtng and acoustcs Archve and storage facltes Prvacy Interor desgn appearance and ambance Opportuntes to communcate Opportuntes to concentrate 0% 20% 40% 60% 80% 100% Very dssatsfed Dssatsfed Neutral Satsfed Very satsfed Fgure 65 Percentage of satsfed and dssatsfed respondents wth regard to dfferent aspects (N=307) Perceved productvty support The extent to whch the workng envronment supports organsaton productvty scored partcularly neutral (52% neutral, see Fgure 66) wth 38% beng satsfed respondents. Slghtly less than half of employees are satsfed wth the support gven regardng ther work envronment and team productvty (45 and 46% respectvely), but some respondents dsagreed (20 and 13% respectvely). Indvdual productvty Team productvty Organsaton productvty 0% 20% 40% 60% 80% 100% Totally unsupportve Unsupportve Neutral Supportve Totally supportve Fgure 66 Percentage of partcpants that perceve the workng envronment as beng supportve to dfferent types of perceved productvty (N=307) 211 Case 3: Waterschap Rverenland, Tel, The Netherlands

210 8.6.3 Prortsed aspects In addton, the employees found that the most mportant aspects of the workplace envronment to be functonalty and the comfort of ther workspaces (mentoned by 55% n ther top 3 most mportant aspects, see Fgure 67), ndoor clmate, lghtng and acoustcs (29%) and opportuntes to communcate (26%). The least prortsed aspects nclude the adjacency and localty of the spaces (mentoned by 5% as one of the three most mportant aspects), subdvson of the whole buldng (5%) and facltes and facltes management (6%). 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Fgure 67 Rankng of % respondents markng a partcular aspect as one of three most mportant aspects of the workplace envronment (19 aspects) (N=307) Most postve and negatve aspects The employees were gven the opton to answer an open queston concernng the three most postve and negatve aspects of the work envronment. The most apprecated aspect s workplace concept (mentoned by 135 respondents or 19%, see Appendx III, Table 72 and 73) followed by communcaton (128 respondents or 18%) and archtecture and plannng (122 respondents or 17%). The most negatve aspect accordng to the employees was found to be the ndoor clmate, lghtng and acoustcs 212 Performance measurement of workplace change

211 (189 respondents or 25%) due to problems wth acoustcs and nose polluton n the open space. Ths aspect ncludes the less apprecated nose n the open spaces (109 respondents or 15%), followed by the ndoor clmate (59 respondents or 8%). The workstaton was ranked n second place n regard to the most negatve responses (170 respondents or 23%), whch nvolved the lack of prvacy (56 respondents or 7.5%) and the ablty to concentrate (28 respondents or 4%). The thrd rank mentoned was facltes (126 respondents or 17%) whch can be traced to the lack of a personal archve (40 respondents or 5%) and the shortage of meetng rooms (31 respondents or 4%). 8.7 Cultural context The organsatonal culture survey was conducted usng the Organsatonal Culture Assessment Instrument (OCAI; Cameron and Qunn, 2006). Results from ths survey were charactersed n four organsatonal culture types,.e. clan, adhocracy, herarchy, club. The Value Surveys Modules (VSM94; Hofstede, 1997) was used to dentfy fve dmensons of natonal culture,.e. power dstance, ndvdualsm, masculnty, uncertanty avodance, and long-term orentaton Organsatonal culture Currently, the organsatonal culture s perceved as a herarchcal culture, whereas the famly-type culture (clan culture) s preferred most (see Table 39). The herarchcal culture emphaszes an envronment that s relatvely stable, where tasks and functons can be ntegrated and coordnated, unformty n products and servces can be mantaned, and workers and jobs are under control. In ths culture, success s defned by how decson-makers ncorporate authorty n a clear way, how they standardze rules and procedures, and how they montor control and accountablty mechansms. The survey shows that there s a cultural preference n favour of a clan culture. The clan culture s smlar to a famly-type organzaton. A clan culture emphaszes teamwork and employee development, as customers are consdered to be partners. Ths form of organzaton promotes a humane work envronment, wth the manageral goal of empowerng employees by askng for ther partcpaton, ther sense of commtment, and ther loyalty. Leaders are consdered mentors or parental fgures, as loyalty, tradton, and commtment are emphaszed. By encouragng staff to engage n teamwork, to partcpate fully, and to acheve a consensus, a successful nternal clmate can be acheved. 213 Case 3: Waterschap Rverenland, Tel, The Netherlands

212 Although there are no huge dscrepances, ths does not mean that mportant changes stll are not needed (Cameron and Qunn, 2006). The other aspects of organsatonal culture should also be concerned. The organsaton scores low n adhocracy and t dd not exhbt sgns of beng a market culture type. The goal of the organsaton n the adhocracy culture s to be nnovatve and adaptable as there s no form of centralzed power or exstng relatonshps of authorty. Indvduals n an adhocracy are often unque rsk takers who antcpate and understand change. The market culture refers to a type of organzaton whch functons as a market tself. Ths type of organsaton s prmarly concerned wth the external envronment as t focuses on transactons wth such externaltes as supplers, customers, contractors, lcensees, unons, regulators, etc. The market operates prmarly through monetary exchange as compettveness and productvty n these organzatons are dependent on strong external postonng and control. Table 39 shows the sx aspects that pertan to an organsatonal culture. CLAN ADHOCRACY MARKET HIERARCHY Current Prefer Df. Current Prefer Df. Current Prefer Df. Current Prefer Df. Average Domnant characterstcs Organsatonal leadershp Management of employees Organsatonal glue Strategc emphass Crtera of Success Notes. Respondents are asked to dvde 100 ponts among the four culture types. A hgher number of ponts s gven to the opton that s most smlar to the organsaton. Table 39 Organsatonal culture ndex accordng to the case study (N=83) Natonal culture The case study shows much hgher scores on power dstance and much lower on masculnty than the overall cultural ndex of the Netherland (see Table 40). Accordng to Hofstede, hs cultural ndexes are not supposed to be used as cultural generalsatons to stereotype and to suggest that cultural groups are all the same or 214 Performance measurement of workplace change

213 that ths cannot be altered at all by experence. Ths mght explan why the cultural values found n the case study concernng employees were qute dfferent from the natonal Dutch cultural ndexes. A large power dstance socety ndcates a strct herarchy n organzatons that reflects exstental nequalty between hgher and lower levels. Managers rely on superors and on formal rules. The ndvdualstc culture means nvolves the management of ndvduals (Hofstede, 1997). A culture orented to ndvdualsm mght hghly value beng able to work ndependently (Leake and Black, 2005). The low masculnty score means management as ménage: ntuton and consensus, resoluton of conflcts by compromse and negotaton, rewards are based on equalty and humanzaton of work through contact and cooperaton (Hofstede, 1997). Index WSRL Netherlands* 1. Power Dstance Index (PDI) Indvdualsm Index (IDV) Masculnty Index (MAS) Uncertanty Avodance Index (UAI) Long-term Orentaton Index (LTO) *The Netherlands data accordng to Hofstede (1997) Notes. Values of each ndex s usually between 0 (small/weak n partcular dmenson) and 100 (large/strong n partcular dmenson), but values below 0 and above 100 are techncally possble. Table 40 Fve key dmensons of natonal culture 8.8 Reflectons Performance measurement The performance measurement of the WSRL case ncludes several aspects (.e. polcy and management processes, fnance and operaton) that are algned wth the four perspectves of the balanced scorecard (fnancal, customer, nternal busness processes, learnng and growth). The WSRL case s more concerned wth the effectve use of space as has been shown n the choce of the flex workplace concept. The varous types of work settngs support the dfferent actvtes assocated wth the work processes. As a publc organsaton, the WSRL appears to be concerned wth both nternal (employees) and external stakeholders (ctzens). 215 Case 3: Waterschap Rverenland, Tel, The Netherlands

214 CRE performance measures n lterature and what has been found n the WSRL case Based on the balanced scorecard, corporate real estate performance measures n the lterature have been dvded nto sx categores: stakeholder percepton, fnancal health, organsatonal development, productvty, envronmental responsblty and cost effcency. Table 41 presents the proposed lst of corporate real estate performance measures classfed accordng to the sx categores from Bradley (2002) and the performance measures appled n the WSRL case. The comparson between the proposed performance measures from the lterature and what has been found n practce shows strkng smlartes and dfferences. 1. Stakeholder percepton Proposed performance measures accordng to the lterature WSRL Employee satsfacton wth work envronment Employee satsfacton wth CRE servces Customer satsfacton wth facltes Qualty of ndoor envronment: lghtnng, ar condtonng, temperature, nose level, etc. Provson of safe envronment Locaton success factors (access to employees, amount of local amentes) Rato of offce to common areas Provson of amentes Amount of workplace reforms and space modfcatons Employee satsfacton wth professonal sklls Employee satsfacton wth nformaton sharng Survey ratng (e.g. customer/tenant survey of the facltes, buldng, property management and CRE servces) Number of complants Average call frequency and cost per square foot help desk Locaton success factors (proxmty to requred transportaton, access to customers, dstance to other stes and busnesses) Employee satsfacton survey (from the WODI tool) User satsfacton survey Employee satsfacton survey (from the WODI tool) Customer satsfacton survey* Communty and well-beng The contrbuton to publc polcy and socetal prortes Provson of knowledge on water management to ctzen* 2. Fnancal health Value of property, plant and equpment Busness return on real estate assets Real estate return on nvestment Real estate return on equty Sales or revenue per square foot (metre) Space (square feet or metres) per unt of revenue Return on property management 3. Organsatonal development Qualty of facltes Physcal condton of facltes Sutablty of premses and functonal envronment Number of buldng qualty audts Accommodaton usage CRE unt qualty Square feet per employee Effectve utlsaton of space (e.g. amount of teamwork space, tme wasted wth nterruptons due to open space layout) Tme used n project versus tme budgeted for the project Money spent on project versus money budgeted on the project Amount of advce gven to other busness unts NA Rsk Inventory and Evaluaton (RI&E) Square metres per desk (n accordance wth Dutch labour law) Desgn process descrptons and optmzng busness processes* >>> 216 Performance measurement of workplace change

215 4. Productvty Proposed performance measures accordng to the lterature WSRL Employee productvty Strategc Involvement 5. Envronmental responsblty Resource use Energy consumpton Number of energy audts Productvty (% of perceved productvty support from workng envronment) Absentee rates by buldngs CRE nvolved n corporate strategc plannng CRE ntegrated wth HR strateges CRE actvely nvolved n frm-wde ntatves such as specal asset use, consoldatons, or shared servces opportuntes Health & wellbeng through workplace desgn Productvty survey (WODI) The mplementaton of the flex workplace Introducton of sustanable approach to the new buldng EU Energy label Waste Contamnated stes management, Amount of garbage NA 6. Cost effcency Occupancy costs Operatng costs (buldng and FM) Total occupancy cost per employee Occupancy cost as a % of total operatng expense Occupancy cost as a % of operatng revenue by buldng or busness unt Total operatng expendtures versus budget ncludng: general admnstraton; captal expendtures; moves, adds, rearrangements; faclty/propertes servces; other busness servces (mal, and copy centres, rsk, and/or securty) Faclty management costs (envronment, workng condtons) * does not drectly relate to real estate, NA not appled.e. not measured or no data avalable Table 41 CRE performance measures from the lterature (left) compared to case study fndngs (rght) Deprecaton expense Operatng costs - Salary costs* - Socal charges* - Personnel costs of thrd party* 1 Stakeholder percepton Performance measure wth regard to employee satsfacton wth work envronment s appled to support the WSRL s workplace change objectves. An employee satsfacton survey s carred out n ths case every two years. The survey evaluates the overall employee satsfacton, content of work, quantty of work and relatonshp wth colleagues. It turns out that the WSRL case, a publc organsaton, concerns nterests and preferences of both nternal and external stakeholders. 2 Fnancal health Fnancal health focuses on profts. The fndngs show that the fnancal performance measures whch are related to real estate are mssng. The value of property, the plant and equpment (.e. busness return on real estate assets, real estate return on nvestment, real estate return on equty, space per unt of revenue, and return on property management) provde a source of nformaton for determnng the company s ablty to nvest or upgrade real estate or facltes. 3 Organsatonal development A performance measure regardng accommodaton usage s vsble n ths case (square metre area per desk accordng to the labour law). The WSRL apples Rsk Inventory and 217 Case 3: Waterschap Rverenland, Tel, The Netherlands

216 Evaluaton as performance measures related to the qualty of the facltes. In ths way, rsk management can be ncorporated n real estate performance measurement and montored by the corporate real estate unt of the organsaton. 4 Productvty The corporate real estate n connecton to HR strateges s shown n the WSRL case through the ntroducton of the new workplace concept. Ths can be consdered as the strategc nvolvement of corporate real estate. The mplementaton of the flex workplace and other ssues relatng to health and well-beng can also contrbute to employee productvty. Accordng to the lterature, ths approach focuses on provdng an offce envronment that enables employees to ncrease ther productvty. Ths approach s regarded as the shft that has been made from cost reducton to human contrbuton wth regard to offce productvty (Haynes, 2007). 5 Envronmental responsblty The archtectural desgn of the WSRL that concerns envronmental mpact contrbutes to ts sustanable objectve. Accordng to the EU Energy Label, an energy consumpton labellng scheme, the WSRL buldng s awarded wth an A label whch s the most energy effcent level of ths standard. However, the concern about waste (.e. contamnated stes management, amount of garbage) s absent n ths case. 6 Cost ef fcency Although the WSRL concerns the operatng costs (.e. salary costs, socal charges and personnel costs of a thrd party), these measures are not drectly related to real estate and facltes. The deprecaton expense has been ncluded as a performance measure related to occupancy costs. However, other mportant occupancy costs appear to be mssng ncludng total operatng expendtures versus budget: general admnstraton, captal expendtures, moves, adds, rearrangements, faclty/propertes servces and faclty management costs (envronment, workng condtons, qualty). These performance measures allow the company to take a holstc vew of the overall portfolo performance Employees responses to the work envronment Employee satsfacton The fndngs show that staff characterstcs and the work process n the WSRL case have had an nfluence on the mplementaton of the nnovatve workplace concept that has resulted n the hgh satsfacton percentage rate wth regard to number, dversty, and functonalty of spaces, subdvson of the whole buldng, and adjacency and localty of the spaces. The rather hgh percentage of satsfed respondents regardng functonalty and comfort workspaces can be explaned by the change n functon of team space and 218 Performance measurement of workplace change

217 the polces regard to how dfferent types of workplaces are used. In addton, there are other factors related to the satsfacton of employees, such as the sze of the workplace, the adjustablty of the workstatons, and the locaton of workspaces n relaton to corrdors Although the employees reported that they are satsfed wth the opportuntes at ther dsposal to communcate, the fndngs show that there s a hgh percentage of dssatsfed respondents n regard to the aspect of prvacy and the amount of opportunty to concentrate. Ths was caused by the dstractons occurrng n the work envronment due to an open plan layout. It was assumed that ths problem mght be solved once the employees had become used to t, but the problem contnues to exst. Moreover, a relatvely large number of employees mentoned the lack of prvacy as one of the three most negatve aspects they found regardng the work envronment. Whereas 59% of the employees ndcated that they used the open space durng the average amount of tme they spent n varous locatons, 15% mentoned that the nose n the open area was one of the three most negatve aspects. Ther dssatsfacton concerned the ablty to concentrate, whch was also caused by poor lghtng and the nose heard n the cockpt, whch s not soundproof. In comparson to the prevous survey conducted n 2007 (Maarleveld and Wagtendonk, 2007), several aspects n the current stuaton were found to be more satsfyng such as the facltes for remote workng, the general facltes and facltes management, adjacency and localty of the spaces and number, dversty, and functonalty of spaces. In addton, the results concernng several dssatsfyng aspects, such as a lack of archves and storage facltes, sharng one s own deas about the workng envronment and ndoor clmate, lghtng and acoustcs showed an mprovement wth fewer respondents who were dssatsfed compared to the prevous year. The ICT and ICT support facltes dd not change n satsfacton (47% of satsfed respondents both n 2007 and 2008). Ths tem ncreased n the percentage of those respondents who reported that they were dssatsfed (20% n 2007 and 27% n 2008). Furthermore, t was one of the top fve most dssatsfed aspects of the workng envronment n the 2008 survey. In all lkelhood, ths ssue could be consdered as a dssatsfer - f not appled, people are dssatsfed - rather than a satsfer - whch s a postve attrbute that contrbutes to employee satsfacton (Herzberg et al., 1959; Hertzberg, 1966). Perceved productvty support The support of organsaton productvty by the work envronment was perceved as rather low (38%) whereas ndvdual and team productvty was perceved better (45 and 46%, respectvely). Negatve effects from the work envronment (.e. the lack of ablty to concentrate, lttle prvacy and the lack of archvng and storage facltes) have accounted for the rather low perceved support of organsaton productvty. 219 Case 3: Waterschap Rverenland, Tel, The Netherlands

218 Prortsed aspects Employees n the WSRL case ndcate the emphass on functonalty and comfort workspaces, ndoor clmate, lghtng and acoustcs, as well as opportuntes for communcatng and concentratng. Accordng to Vscher (2008), the preferences for functonal comfort and concentraton found n the case study can be nterpreted as the shft from users experence n ndvdual and team effectveness to organsatonal effectveness. Due to the low level of ndoor envronmental qualty, the ndoor clmate was found to be one of the least satsfed aspects. However, ths ssue has hgh prorty from the employees perspectves and should be a concern for further mprovement. The nformaton about employees needs and preferences s mportant when developng a workplace concept n the changng organsatonal context,.e. a relocaton or an adaptaton of the work envronment. Conceptual model of workplace change apprasal The conceptual model below has been used to explore the relatonshp between varables mpactng on an apprasal of workplace change (Fgure 68). The complex relatonshp between the varables found n ths conceptual model can be explaned by dvdng them nto three groups: start, medatng and outcome (Table 42). Organsaton - Busness types - Objectve - Structure - Staff characterstcs - Organsatonal culture - Natonal culture Organsaton - Busness types - Objectve - Structure - Staff characterstcs - Organsatonal culture - Natonal culture Work process - Daly actvtes: what, when, how, by whom, where Precondtons - Tme - Money - Informaton Workplace before change - Locaton - Buldng grade - Archtectural desgn - Workplace concept - Supportng facltes Implementaton process - Workplace change objectves - Drvers to change - Change management Workplace after change - Locaton - Buldng grade - Archtectural desgn - Workplace concept - Supportng facltes Work process - Daly actvtes: what, when, how, by whom, where Precondtons - Tme - Money - Informaton External context - Legslaton - Economc stuaton - Labour market Apprasal of change - Employee satsfacton - Perceved productvty support - Prortsed aspects External context - Legslaton - Economc stuaton - Labour market Fgure 68 Relatonshp between varables mpactng on an apprasal of workplace change (Rratanaphong & Voordt, 2012) Relatonshps between the varables n the conceptual model Table 42 depcts the assumed causal relatonshps between the characterstcs of the organsaton, work process, precondtons, external context and mplementaton process as start varables wth medatng varables of workplace change such as locaton, archtectural desgn and workplace concept, and the apprasal of change as an outcome. 220 Performance measurement of workplace change

219 Start varables Medatng varables Outcome Organsaton Busness types Water management busness Structure Flat structure Staff characterstcs Knowledge workers Organsatonal culture Herarchcal culture Natonal culture Indvdualstc culture Work process Daly actvtes Creatve work wth groups, projects and nteractve work Implementaton process Workplace change objectve To provde a better work envronment to employees Change management Communcaton wth employees Bold = man varables Workplace change Workplace concept Dfferent types of workspaces for specalsts Workplace concept Employees become nvolved durng the desgn process that contrbuted to the mproved work envronment Workplace concept Workplace wth varous types of work settngs whch promote team workng Workplace concept The move from several offce locatons to a sngle buldng and the optmsng on the use of space Workplace concept The provson of cockpts for concentrated workng versus open plan wth no parttons Workplace concept Workplace supports creatve and group works and allows for the effectve use of space Archtectural desgn Move to a new buldng Workplace concept Sze of the workplace, the adjustablty of the workstaton Workplace concept Workplace nnovaton concept Supportng facltes ICT and ICT support facltes Supportng facltes Poor lghtng and nose n the cockpt, whch s not soundproof Workplace concept Open plan workplace wth no parttons/ sound nsulaton Apprasal of change Employee satsfacton Hgh percentage of satsfed respondents n number, dversty, and functonalty of spaces Employee satsfacton Hgh satsfacton percentage n number, dversty, and functonalty of spaces, adjacency and localty of the spaces, and openness and transparency of envronment Employee satsfacton Hgh satsfacton percentage n number, dversty, and functonalty of spaces Employee satsfacton Hgh percentage of satsfed respondents n opportuntes to communcate Employee satsfacton Hgh percentage of dssatsfed respondents n regard to prvacy due to open plan layout wth no parttons Prortsed aspects Functonalty and comfort workspaces and opportuntes to communcate found to be the most mportant aspects of the work envronment. Employee satsfacton Hgh satsfacton percentage n archtecture and appearance of the buldng Employee satsfacton Hgh percentage of satsfed respondents n functonalty and comfort workspaces Employee satsfacton Hgh satsfacton percentage n subdvson of the whole buldng and adjacency and localty of the spaces Employee satsfacton Hgh percentage of dssatsfed respondents n ICT and ICT support facltes Negatve aspects Nose n open area found to be one of the three most negatve aspects Employee satsfacton/negatve aspects Sttng near the corrdors causes dssatsfacton n prvacy. The lack of prvacy s one of the three most negatve aspects of the work envronment. Negatve aspects Nose s one of the three most negatve aspects. Dssatsfacton n ablty to concentrate s reported. Table 42 Relatonshps between the varables n the conceptual model added to the WSRL case 221 Case 3: Waterschap Rverenland, Tel, The Netherlands

220 The polces wth regard to the use of dfferent types of workspaces support dfferent work processes (.e. creatve and group works) of the specalsts n the water management busness. Ths has resulted n a hgh satsfacton percentage n number, dversty, and functonalty of spaces and functonalty and comfort workspaces. The flat structure organsaton enables employees to become nvolved n the mplementaton process that contrbuted to the mproved work envronment whch n turn could lead to the hgh satsfacton percentage on several aspects ncludng number, dversty, and functonalty of spaces, adjacency and localty of the spaces, and openness and transparency of the envronment. The herarchcal culture s reflected n the decson to move from several offce locatons to a sngle buldng and to maxmse the space avalable. By provdng cockpts, an emphass on prvacy can be seen whch represents the ndvdualstc culture. However, the open plan layout wth no parttons has caused the hgh percentage of respondents who were dssatsfed regardng prvacy. The modern offce buldng and the nnovatve workplace concept are meant to mprove the work envronment and ths could account for the hgh satsfacton percentage regardng archtecture and the appearance of the buldng, functonalty and comfort of workspaces, the subdvson of the whole buldng and the adjacency and localty of the spaces. Change management (.e. communcaton wth employees) can have an mpact on workplace change and the apprasal of change. Several dsadvantages of undergong a workplace change are reflected n a hgh dssatsfacton percentage and the negatve aspects found n the WSRL case; for example, the open plan workplace wth no parttons and the absence of any sound nsulaton materal could cause a hgh dssatsfacton percentage regardng prvacy and the ablty to concentrate. The assumed causal relatonshp can be explaned by the lnks of varables n the conceptual model as shown n Table 42. However, there should be a drect lnk between the organsaton and the apprasal of change n the conceptual model;.e. employee satsfacton n organsaton and content and complexty of work. These two tems are not related to the physcal work envronment, but they can have an mpact on the apprasal of change. Ths has led to the slghtly adapted conceptual model, whch descrbed n Chapter Performance measurement of workplace change

221 8.8.3 Cultural context The research fndngs have dentfed varous types and dmensons of organsatonal and natonal culture. However, t s dffcult to trace and to understand the relatonshps wth the other varables connected to the research. The move from several offce locatons to a sngle buldng and the maxmsaton of space reflects the herarchcal culture whch n turn emphasses an envronment that s stable, one n whch both tasks and functons can be ntegrated and coordnated (Cameron and Qunn, 2006). The new workplace that optmses the use of space has resulted n the hgh percentage of satsfed respondents n opportuntes to communcate. When offce space has been arranged n an effort to enhance communcaton, then ths could be consdered as dsplayng a preference for a clan culture type. Accordng to Cameron and Qunn (2006), ths type of culture promotes a humane work envronment wth the manageral goal of empowerng ts employees by ganng ther partcpaton, stmulatng teamwork and achevng consensus. Organsatons n a low uncertanty avodance are relatvely open to new ways of workng and wll sooner adopt new spaces and processes (Steelcase, 2009). The nnovatve workplace desgn of the WSRL case reflects the low uncertanty avodant culture, and has resulted n a hgh satsfacton percentage n functonalty and comfort workspaces and number, dversty, and functonalty of spaces. Accordng to the lterature, a culture whch places great emphass on ownng space s ndvdualstc (Altman, 1975). People n ndvdualstc cultures are also more dstant proxmally (Gudykunst and Matsumoto, 1996). The relatonshp between ndvdualsm and the workplace can be descrbed as dsplayng the need for prvacy whch s sgnalled by closed doors, soundproofng, double doors or trees markng property lnes (Hall, 1966, Altman & Gauvan, 1981). Provdng staff wth prvate rooms (cockpts) can be seen as placng an emphass on prvacy n the ndvdualstc culture. However, the open plan layout wth no parttons n the WSRL workplace has resulted n the hgh percentage of dssatsfed respondents n prvacy. 8.9 Conclusons The emprcal data ndcate the mplementaton of performance measurement n multple levels (ndvdual, organsaton, publc). The research fndngs show that the organsatonal context can have an mpact on partcular performance crtera and the performance measures used n ths case study. The characterstcs of the staff and the work process n the WSRL case show how the mplementaton of the nnovatve 223 Case 3: Waterschap Rverenland, Tel, The Netherlands

222 workplace can be nfluenced. Moreover, the fndngs show that the performance measures of the WSRL case can be compared wth the four perspectves mentoned on the Balanced Scorecard. Based on the balanced scorecard, the sx perspectves of corporate real estate performance measures n the lterature can be used as a reference to compare wth performance measures used n current practce, as nput to consderng for the mprovement of the effcency and effectveness of performance measurement. The fndngs show connectons between varables n the conceptual model (.e. organsaton, workplace change and the employees responses to the work envronment), and confrm that the conceptual model can be used n order to understand the complex relatonshp between these varables. However, employee satsfacton wth an organsaton can also have an mpact on workplace apprasal (ndcated by employee satsfacton about the organsaton tself) and should be taken nto consderaton when adaptng the model. The cultural context varable provdes a better understandng of the role organsatonal and natonal culture plays n regard to workplace change and how t s apprased. However, the explanaton of the fndngs (.e. performance measurement, the apprasal of change) n connecton to natonal and organsatonal culture s qute dffcult and more exploratve and nterpretatve than concludng. In addton, the mpact of natonal culture s much less vsble and explanng the results than mght be expected. 224 Performance measurement of workplace change

223 9 Cross-case analyss: fndngs and reflectons 9.1 Introducton In ths chapter, the fndngs from the case studes are dscussed n regard to the ntegrated conceptual model and the separate conceptual models of performance measurement, employees responses to the work envronment and cultural context n order to explan the nterrelatonshp between the varables and to mprove the understandng of performance measurement of workplace change. Table 43 summarses the two man research topcs and the contextual background that have been used to structure ths chapter. The performance measurement frameworks and crtera descrbed n part one of ths dssertaton are dscussed n relatonshp to what was found n the case studes. The proposed lst of corporate real estate performance measures have been dvded nto sx categores and are subsequently compared wth the emprcal fndngs regardng workplace change practces. Data from the case studes regardng corporate real estate performance measures are dscussed n connecton to the dfferent stakeholders, the scale levels of real estate, manageral levels and the varous dmensons of value n the CREM and FM. Performance from an employee s perspectve s revewed by examnng the mpact of workplace change on employee satsfacton, perceved productvty and prortsed aspects. 225 Cross-case analyss: fndngs and reflectons

224 Part I Theoretcal framework Part II Emprcal research Part III Conclusons & recommendatons Theme 1 Performance measurement Performance measurement theores and frameworks Performance measurement n the context of FM and CREM Added value of CREM Performance measures and KPIs Conceptual model Performance measurement system Performance crtera Performance measures and KPIs Theme 2 Employees responses to workplace change Drvng forces Workplace typology Current trends n workplace desgn and management Impact of workplace change on employees: 1. employee satsfacton 2. perceved productvty support 3. prortsed aspects Conceptual model Fndngs from WODI questonnare: 1. Employee satsfacton 2. Perceved productvty support 3. Prortsed aspects Contextual background Organsatonal and natonal culture Organsatonal culture theores Four major culture types Competng values framework Natonal culture theores Fve dmensons of natonal culture Comparson between Tha and Dutch cultural settngs Conceptual model Fndngs from OCAI questonnare: - Organsatonal culture Fndngs from VSM94 questonnare: - Natonal culture Connecton between theoretcal frameworks, conceptual models and fndngs from case studes Conclusons and recommendatons to mprove performance measurement and workplace change processes Table 43 Research matrx: two man research themes and the contextual background Fgure 69 presents the conceptual model that was ntroduced n part one to lnk the four man varables of ths research: 1) organsaton (ncludng organsatonal and natonal culture), 2) workplace change, 3) performance measurement (frameworks, crtera and measures/kpis), and 4) employees responses to the work envronment,.e. employee satsfacton, perceved productvty support, and prortsed aspects. Accordng to the model, organsaton and workplace change both affect workplace performance objectvely (performance measurement frameworks and crtera, performance measures/kpis) and subjectvely (employees responses to the work envronment). Performance measurement s lnked to the proposed measures n sx categores accordng to the lterature (Bradley, 2002) ncludng: 1) stakeholder percepton, 2) fnancal health, 3) organsatonal development, 4) productvty, 5) envronmental responsblty and 6) cost effcency. Ths conceptual model wll be used as a reference when dscussng the fndngs obtaned from the case studes on the possble relatonshps between the research varables. 226 Performance measurement of workplace change

225 CONTEXT Organsaton Busness types Objectve Structure Staff characterstcs Work process & work pattern Organsatonal culture Natonal culture PERFORMANCE MEASUREMENT Performance measurement (Objectve) Performance measurement frameworks and crtera Performance measures/kpis PROPOSED MEASURES Stakeholder Percepton Fnancal health Organsatonal development Workplace change Workplace change objectves Locaton Buldng grade Archtectural desgn Workplace concept Supportng facltes Implementaton process Performance measurement (Subjectve) Employee satsfacton Perceved productvty support Prortsed aspects Productvty Envronmental responsblty Cost effcency Fgure 69 Integrated conceptual model 9.2 Performance measurement n the three cases The performance measurement frameworks that were found n the lterature nclude: seven generc performance crtera (Snk and Tuttle, 1989), the performance measurement matrx (Keegan et al., 1989), the balanced scorecard (Kaplan and Norton, 1992), the performance pyramd (Cross and Lynch, 1992), the performance prsm (Neely et al., 2001) and the Trple-P model (Tangen, 2005). These frameworks provde a number of crtera that help to mprove our understandng of performance measurement. These performance measurement frameworks have been proposed by ther authors both to develop theores on performance management and performance measurement and to be applcable n practce wthout havng a partcular type of organsaton n mnd. Varous performance crtera can emerge n vrtually any framework, for example, productvty, customer satsfacton, qualty and fnance, whereas sustanablty s only vsble n certan frameworks such as the sx perspectves of performance measures (Bradley, 2002), unversty real estate performance (Den Hejer, 2011) and the FM Value map (Jensen, 2012). The performance pyramd (Cross and Lynch, 1992) turns out to be useful for understandng performance measurement n all of the case studes 227 Cross-case analyss: fndngs and reflectons

226 by showng that performance measurement s deployed to nclude several layers of an organsaton, from busness unts to departments and work centres. In all cases, organsatonal performance has been descrbed accordng to the four perspectves of the balanced scorecard (.e. fnancal, customer, nternal busness process, learnng & growth). The man dfferences between the frameworks traced n lterature and performance measurement n the three cases are the level of smplcty or complexty of the framework structure and the mplementaton from the ndvdual organsaton. 9.3 Comparson between performance measurement n the cases and n the lterature The seven performance crtera mentoned by Snk and Tuttle (1989) and the four perspectves of the Balanced Scorecard (Kaplan and Norton, 1992) are compared wth what has been found n the case studes. CRE performance measures of the case studes are also compared wth the sx perspectves of performance measures taken from the lterature (Bradley, 2002), and are dscussed n connecton to the dfferent stakeholders perspectves regardng the dfferent scale levels of real estate and manageral levels (operatonal, tactcal and strategc). Value dmensons n CREM and FM are dscussed n connecton to the fve value types whch are found n the case studes Applcaton of Snk and Tuttle s seven performance crtera Table 44 shows that n addton to cost effcency, several other dmensons of performance measurement are ncluded n the performance measurement systems that are used n practce. Actually, all of the seven performance crtera that were mentoned by Snk and Tuttle (1989) have been appled n the organsatons performance measurement systems n each of the three case studes, however, ths has been done n dfferent ways. 228 Performance measurement of workplace change

227 Performance crtera (Snk and Tuttle, 1989) Performance measures from case studes DAD 1 PTH 2 WSRL 3 Effectveness - Degree to whch an organzaton accomplshes what t set out to accomplsh Work done accordng to assgned plan from government Market ntroducton n tme Market ntroducton realzed sales Data for benchmarkng the company s output Ef fcency - Rato of resources expected to be consumed to resources actually consumed Investment plan Operatonal cash flow Budget comparson Qualty - The assurance of qualty at the organsatonal system (.e. nput, process, output) Internal audt - Qualty assurance Qualty mprovement team partcpaton Qualty management Productvty - Relatonshps between outputs and resources consumed Work done accordng to assgned plan from the government - Percent of work done Human Resource Management - IT soluton n HRM Output: Sales growth Input: Number of postons flled Product based on the number of hours work Qualty of work lfe - feelngs of workforces on key factors n an organsaton such as safety, compensaton, pay, etc. Human Resource Management - Safety, health and envronment Employee atttude survey (perceptons and atttudes related to employee satsfacton) User satsfacton survey Innovaton - A key factor n sustanng and mprovng performance Master plan of the IT system Management of the nformaton system IT soluton n HRM The mplementaton of the workplace nnovaton concept Smart IT solutons for the Introducton of WPI The mplementaton of the flex workplace Proftablty - Relatonshps between revenue and cost Earnngs before nterest, taxes, deprecaton and amortzaton (EBITDA) Economc proft realzed Income from operatons Workng captal Inventory turns Avalable cash to be deposted at the current value of the assets 1. DAD = Dhanarak Asset Development, 2. PTH = Phlps Thaland, 3. WSRL = Waterschap Rverenland Table 44 Performance crtera from the lterature and performance measures from the case studes 1 Effectveness s appled n all of the case studes ncludng the dfferent operatonalsatons of actual and expected output,.e. work done accordng to plan, market ntroducton n tme, benchmarkng the company s output. 2 Ef fcency s consdered n terms of resource utlsaton and has been found to be measured n all cases, e.g. operatonal cash flow, budget comparson. 3 Qualty has been measured n the case studes by a qualty audt, qualty mprovement and qualty management. 4 Productvty s appled n all cases wth the focus on the rato of output to nput. Ths ncludes the percentage of work done, sales growth and the product based on the number of hours work. 229 Cross-case analyss: fndngs and reflectons

228 5 Qualty of worklfe s a measurement contrbutng to workforces. The case organsatons apply performance measures related to human resource management such as health, safety and well-beng and employee satsfacton. 6 Innovaton, a key factor n sustanng and mprovng performance, s beng measured by technologes to mprove qualty of the work envronment n all of the cases. 7 Proftablty s consdered from a fnancal perspectve n all of the case studes. The fndngs show that the performance measures appled depended on the organsatonal context (.e. busness type, objectves, structure); for example: Beng a publc organsaton, the DAD case focuses on effectveness as demonstrated n the work done accordng to the plan assgned by the government. The focus on effectveness of the PTH case s shown n performance measures such as market ntroducton n tme and realzed sales. Ths explans the external focus of the PTH case whch has been nfluenced by the pressure to compete wth compettors n the market. The focus on the productvty of the WSRL s shown n how the number of work hours that are needed to delver the servces are measured. The fndngs show that most performance crtera found n the case studes are measured by usng smlar performance measures such as operatonal cash flow (effcency), qualty management (qualty) and economc profts/earnngs (proftablty). The observaton of the three case studes confrmed that performance measurement of an organsaton s mult-dmensonal and that t ncludes several performance crtera and performance measures beyond cost effcency Applcaton of the Balanced Scorecard In Chapter 2, the Balanced Scorecard (Kaplan and Norton, 1992) was ntroduced as a performance measurement framework that helps to translate the corporate strategy nto actons. The fndngs show that all three cases ncorporate the Balanced Scorecard n ther performance measurement systems, but manly n connecton wth organsatonal performance and not so much n regard to real estate performance. Furthermore, the research fndngs showed that performance measures of the three case studes have been allocated to the four perspectves of the Balanced Scorecard (.e. fnancal, customer, nternal busness process, learnng & growth) wth dfferent ponts of focus (see Table 45). 230 Performance measurement of workplace change

229 BSC DAD PTH* WSRL Fnancal Customer Internal busness processes Learnng & growth Income from commercally rented area Earnngs before nterest, taxes, deprecaton and amortzaton (EBITDA) Return On Asset Work done on delverng rentable area to other government agences Satsfacton of the government complex buldng users Work done accordng to plan assgned by government Rsk management Internal audt Employee relatons and communcaton IT soluton n HRM Safety, health and envronment Economc proft - realzed Income from operatons Workng captal Operatonal cash flows Inventory turns Offce rent Utlty and parkng costs Rank n customer survey Market share Repeat order rate Complants Brand ndex Percentage reducton n process cycle tme Number of engneerng changes Capacty utlzaton Order response tme Process capablty Rsk management and busness control Leadershp competence Percentage of patent-protected turnover Tranng days per employee Qualty mprovement team partcpaton *Performance measures of PTH have been derved mostly from Gumbus and Lyons (2002) Cash lmt Interest standard Deprecaton expense Provson of knowledge and nformaton on water management to ctzen Rsk management Product management - number of hours worked Health and safety polcy Table 45 Balanced Scorecard as appled n the three case studes 1 Fnancal perspectve All of the case organsatons apply performance measures n regard to the fnancal perspectve. The DAD case ncludes fnancal performance measures related to real estate,.e. return on assets, ncome from commercally rented area, faclty costs and taxes. The PTH case montors offce rent, utlty and parkng costs as the focus on cost effcency. The WSRL case ncludes deprecaton expense as a fnancal performance measure related to real estate. 2 Customer perspectve The concern about stakeholders of the PTH s vsble n the performance measures ncludng market share, rank n customer survey, repeat order rate, complants and brand ndex. The brand ndex s expressed on a scale of 0 to 100. It quantfes the strength of the brand relatve to ts man compettors, wth reference to key busness and brand attrbutes. On the other hand, the DAD and the WSRL case show that ther concerns extend beyond the organsaton s customers to ts ctzens and to the neghbourng communty. 231 Cross-case analyss: fndngs and reflectons

230 3 Internal busness process perspectve Regardng the nternal busness process perspectve, rsk management has been appled n all three cases. Performance measures related to nternal processes are ncluded n all of the cases, ncludng the work done accordng to the assgned plan, nternal audt, capacty utlsaton, order response tme, and number of hours worked. 4 Learnng & growth perspectve The learnng & growth perspectve s vsble n the performance measures found n all three cases n connecton to human resource management (.e. employee relatons and communcaton, tranng days per employee, team partcpaton and health and safety polcy). The dfferent ponts of focus reflect the dfferent types of organsatons. Although all three cases show fnancal performance measures related to real estate, only the DAD case focuses on revenue expanson by measurng ncome from a commercally rented area wth regard to ts asset management busness. Dfferences n organsatons,.e. publc or prvate sector, ndcate dfferent objectves and roles. The concern regardng ctzen well-beng reflects that there s accountablty towards the publc organsaton. The DAD and the WSRL case appear to be more concerned about external stakeholders (.e. ctzens and neghbourng communty) due to ther roles n the publc sector Applcaton of Bradley s sx categores Table 46 presents the proposed lst of CRE performance measures dvded accordng to Bradley s sx categores (2002) and the CRE performance measures appled n three cases. Some strkng smlartes and dssmlartes have come to the fore. 232 Performance measurement of workplace change

231 1. Stakeholder percepton Performance measures from the lterature DAD PTH WSRL Employee satsfacton wth work envronment Employee satsfacton wth CRE servces Customer satsfacton wth facltes Communty and well-beng 2. Fnancal health Value of property, plant and equpment 3. Organsatonal development Qualty of facltes Accommodaton usage CRE unt qualty Qualty of ndoor envronment Provson of safe envronment Locaton success factors Rato of offce to common areas Provson of amentes Amount of workplace reforms and space modfcatons Employee satsfacton wth professonal sklls and nformaton sharng Survey ratng Number of complants Average call frequency and cost per square foot help desk Locaton success factors The contrbuton to publc polcy and socetal prortes Busness return on real estate assets Real estate return on nvestment Real estate return on equty Sales or revenue per square foot (metre) Space per unt of revenue Return on property management Physcal condton of facltes Sutablty of premses and functonal envronment Number of buldng qualty audts Square feet per employee Effectve utlsaton of space Tme used n project versus tme budgeted for the project Money spent on project versus money budgeted on the project Amount of advce gven to other busness unts Employee satsfacton Employee satsfacton survey (WODI) Satsfacton of the government complex buldng users Percentage of complants from publc regardng envronmental mpact Income from commercally rented area Return on asset Work done on buldng management standard and ICT Employee atttude survey Employee satsfacton survey by Phlps Real Estate Employee satsfacton survey (WODI) Rank n customer survey* Number of complants* NA NA Rsk management and busness control (fnancal rsks)* Employee satsfacton survey (WODI) User satsfacton survey Employee satsfacton survey (WODI) Customer satsfacton survey* Provson of knowledge on water management to ctzen* NA Rsk Inventory and Evaluaton (RI&E) NA NA Square metre per desk (accordng to labour law) Delverng rentable area to government agences Percentage of allocatng commercal area Percentage reducton n process cycle tme* Number of engneerng changes* Capacty utlzaton* Order response tme* Process capablty* Desgn process descrptons and optmzng busness processes* >>> 233 Cross-case analyss: fndngs and reflectons

232 4. Productvty Performance measures from the lterature DAD PTH WSRL Employee productvty Strategc Involvement Productvty (% of perceved productvty support from workng envronment) Absentee rates by buldngs CRE nvolved n corporate strategc plannng CRE ntegrated wth HR strateges CRE actvely nvolved n frm-wde ntatves such as specal asset use, consoldatons, or shared servces opportuntes 5. Envronmental responsblty Resource use Energy consumpton, Number of energy audts Waste 6. Cost effcency Occupancy costs Operatng costs (buldng and FM) Contamnated stes management Amount of garbage Total occupancy cost per employee Occupancy cost as a % of total operatng expense Occupancy cost as a % of operatng revenue by buldng or busness unt Total operatng expendtures versus budget ncludng: general admnstraton; captal expendtures; moves, adds, rearrangements; faclty/propertes servces; other busness servces (mal, and copy centres, rsk, and/or securty) Faclty management costs (envronment, workng condtons, qualty) Health & wellbeng n the workplace Productvty survey (WODI) Master plan of the IT system Management of the nformaton system IT soluton n HRM Introducton of green buldng Constructon materals and equpment meet local content Health & wellbeng n the workplace through the workplace nnovaton (WPI) Productvty survey (WODI) Implementaton of the WPI Smart IT solutons for WPI Green products* Energy effcency mprovement Collecton and recyclng of company s products* Amount of recycled materals n company s products* Health & wellbeng through workplace desgn Productvty survey (WODI) Implementaton of flex workplace Introducton of sustanable approach to the new buldng EU Energy label NA NA NA Taxes (property and land) Operatng costs - Faclty costs (buldngs & equpment) - Overhead costs (employees and commttee)* - Fees and servces* Offce rent (Baht/ sq.m./month)** Utlty (electrcty & water) cost/ unt Parkng cost/ month Overhead cost* * does not drectly relate to real estate, NA = not appled.e. not measured or no data avalable, **43 Baht = 1 euro Table 46 CRE performance measures from the lterature (left) and what has been found n the case studes (rght) Deprecaton expense Operatng costs - Salary costs* - Socal charges* - Personnel costs of thrd party* 1 Stakeholder percepton All three cases measure employee satsfacton wth the work envronment; for example: The PTH s workplace nnovaton post-move survey was conducted. 234 Performance measurement of workplace change

233 Generally, an employee satsfacton survey s carred out annually n the DAD case, and every two years n the WSRL case. The WODI assessments were conducted n all three cases by external partes,.e. the author of ths dssertaton (DAD and PTH) and the Delft s Center for People and Buldngs (WSRL). Customer satsfacton wth facltes s only mentoned n the DAD case (satsfacton of the government complex buldng users). In terms of the external stakeholders, the performance measures relatng to communty and well-beng are vsble n the DAD and the WSRL case (percentage of complants from publc regardng envronmental mpact). Dfferent roles of organsatons can nfluence dfferent concerns of stakeholders. The DAD and the WSRL cases, both publc organsatons, are concerned wth both nternal and external stakeholders, whereas the PTH case focuses more on nternal stakeholders. The DAD and WSRL cases appear to be concerned wth the external stakeholders by beng aware of publc opnon regardng envronmental mpact and by provdng company nformaton to ctzens. Only the DAD case conducted the customer satsfacton survey wth regard to real estate and facltes as a part of t s asset management busness. These measures have been used for evaluatng the relatonshps wth the customer and communty. The fndngs from all of the cases show that there are a few tems that relate to employee satsfacton wth CRE servces (e.g. satsfacton wth facltes management). The nformaton found n ths category can be used as a reference to benchmarkng wth nternal unts or external servce provders (.e. cleanng, caterng, securty, etc.). Employee satsfacton wth the work envronment s lnked wth the plannng, desgn, and management of the workplace. Decsons regardng whether or not to have an open plan or cellular offce, to arrange team or meetng rooms, to provde amentes or ICT support facltes, or to change workplace concept, can all affect employee satsfacton; for example: The typcal workplace desgn of the DAD case such as personal desks wth hgh parttons and standard work settngs have accounted for the qute modest percentages of satsfed respondents regardng openness and transparency of envronment and functonalty and comfort workspaces. The flexble workplace concept provdes the PTH and WSRL employees wth more choces to perform tasks on varous occasons. Both cases have a hgher satsfacton percentage regardng several aspects n comparson to the DAD case such as number, dversty, and functonalty of spaces and facltes for remote workng. All of the case organsatons have shown ther concern regardng employee satsfacton wth the work envronment as ths was ndcated n ther workplace change objectves. 235 Cross-case analyss: fndngs and reflectons

234 Ths tem emerged n the case studes as a performance measure that has been contrbuted to organsatonal performance: Measurng employee satsfacton wth work envronment s one of the organsaton s performance measures of the organsatonal development ncludng human resource management (safety, health and envronment) n the DAD case. Montorng employee satsfacton wth work envronment contrbutes to the performance measure of the qualty mprovement team partcpaton n the PTH case. The mprovement made to the WSRL s workplace s montored by employee satsfacton wth work envronment whch contrbutes to the performance measures of the nternal processes ncludng human resource management (user satsfacton survey) and accommodaton (Rsk Inventory and Evaluaton). 2 Fnancal health Fnancal health ncludes performance measures that are lnked to the fnancal perspectve of the Balanced Scorecard. All three case studes nclude fnancal measures n ther performance measurement. However, the real estate performance measure s only vsble n the DAD case (.e. ncome from the commercally rented area and return on assets). The type of busness also has an mpact on the performance measures selected. Whereas the DAD s asset management busness deals wth commercally rented space (value of property), the other cases are not nvolved n real estate or the property busness. Ths mght then explan the emphass placed on measurng the fnancal performance of real estate n the DAD case. In addton, the DAD case measures ncome from the commercally rented area to evaluate the success n achevng economy of scale from an asset management busness. Ths can be explaned as the provson of bundled servces (.e. securty, IT servces, cleanng, caterng) that offers the compettve commercal/offce space rental rates for the government complex. There are corporate real estate performance measures that are not vsble n the case studes, but whch are nevertheless mportant to nclude n a performance measurement system. Busness return on real estate assets, real estate return on nvestment, real estate return on equty, sales or revenue per square foot, space per unt of revenue and return on property management can all provde a source of nformaton for determnng the company s ablty to nvest or upgrade real estate or facltes. If too lttle attenton s pad to these measures, then the ablty to determne the overall fnancal performance of organsatons wll be nhbted and ths could cause adverse compettve consequences. 3 Organsatonal development The organsatonal development perspectve ncludes ndcators related to the nternal busness process perspectve of the Balanced Scorecard. Ths perspectve covers the 236 Performance measurement of workplace change

235 area of operaton and process management. Two cases apply performance measures regardng the qualty of facltes ncludng: 1 Work done accordng to the Buldng Management Standard (DAD case) 2 Rsk Inventory and Evaluaton (WSRL case) Rsk control has been mentoned as one of the possble added values of CREM (De Jonge, 1996, Den Hejer, 2011, Van der Zwart and Van der Voordt, 2012). In addton, fndngs from practce show that rsk management s ncorporated n faclty performance measurement and montored by the corporate real estate unt. Whereas the other two cases focus on generc performance measures of nternal processes such as percentage reducton n process cycle tme or order response tme, the DAD case apples performance measures of the CRE unt qualty, ncludng the delvery of a rentable area to government agences and the percentage of allocatng a commercal area. Accordng to the Dutch labour law, the WSRL case apples the square metre/desk as an accommodaton usage measurement. Normally, the number of employees and desks are not equal n a flex envronment, so t s qute dffcult to evaluate workplace densty n ths workplace category. Nevertheless, measurng the number of square metres per employee and the effectve utlsaton of space (e.g. amount of teamwork space, vacancy rates) are fundamental performance measures whch can be used for the purpose of benchmarkng. The fndngs show that all of the case studes apply performance measures regardng organsatonal development to contrbute to ther objectves: The DAD montors the development of a buldng management standard and ICT that contrbutes to the objectve whch s to provde value for money to the clent. The PTH mplements performance measures by usng percentage reducton n process cycle tme, the number of engneerng changes, and process capablty at the busness unt level that can reduce rsks and support task performance. The facltatng and controllng producton, operatons and servce delvery contrbute to the organsatonal objectve n attanng leadershp n the lghtng ndustry. Desgn process descrptons and optmsng busness processes are appled n the WSRL to montor work processes that contrbute the organsatonal objectve n mplementng water management. 4 Productvty In all three cases, the performance measures related to human resource management focused on the occupers beng provded wth an offce envronment that enables employees to ncrease ther productvty. Accordng to the lterature, ths approach focuses on the shft from cost reducton to human contrbuton wth regard to offce productvty (Haynes, 2007). Human resources are the most expensve tem on the 237 Cross-case analyss: fndngs and reflectons

236 company s balance sheet (Brll et al., 2001). Not surprsngly, the fndngs show that the performance measures of employee health and well-beng are beng appled n all cases. Lubeneck and Desrocher (2003) menton the strategc nvolvement of corporate real estate that can be consdered as ndrect measures relatng to productvty. The strategc nvolvement of corporate real estate s vsble n all of the case studes but wth dfferent ponts of focus; for example: The DAD and the PTH case focus on the ncorporaton of IT solutons to accomplsh the set target. The concern about corporate real estate n connecton to human resource strateges came to the fore n the PTH case, and n the WSRL case, ths became apparent durng the ntroducton of the new workplace concept. Offce productvty-related performance measures are appled to support workplace change objectves that n turn, can contrbute to achevng the organsatonal objectves of the case studes: Employee health and well-beng, IT solutons n human resource management, a master plan of the IT system, and management of the nformaton system have all been appled n the DAD case to mprove the organsaton s resources (.e. employees, IT, work envronment) n an effort to provde value for money to the clent. The PTH case focuses on the mplementaton of workplace nnovaton concept and smart IT solutons. The ablty to enhance an employee s work output by ncreasng the quantty and mprovng the qualty of the product and servce they delver contrbute to the organsatonal objectve concerned wth attanng leadershp n the lghtng ndustry of the PTH case. The WSRL focuses on the mplementaton of the flex workplace to mprove employee productvty so as to acheve the organsatonal objectve concerned wth mplementng water management n the regon. Perceved productvty support from the workng envronment was mplemented as a part of ths PhD study, but ths tem has not been ncluded n the three organsatons performance measurement systems. Absentee rates s another performance measure related to employee productvty. Data concernng ths partcular pont s unavalable n the cases as well. These performance measures are mportant to both human resource and corporate real estate management and should be ncluded n the organsaton s performance measurement systems. 5 Envronmental responsblty The buldng and constructon ndustres have a major mpact on the envronment as they consume raw materals to buld and even more natural resources to operate (Van Meel et al., 2010). The DAD and the WSRL case are concerned about the envronment 238 Performance measurement of workplace change

237 mpact and ther desre to promote sustanable desgn may be drven by ether the publc organsaton s role or the company s values and belefs. Energy performance s part of performance measurement n all of the cases: Energy performance of the DAD buldng was desgned and tested usng the HVAC system and other energy effcent materals (e.g. thermal nsulaton wall). The PTH case focuses on the measurement of energy effcency mprovement. Accordng to the EU Energy Label, an energy consumpton labellng scheme, the WSRL buldng has attaned the A label, whch s the hghest energy effcency level of ths calbre. The buldng sector s one of the sectors that allows possble gan from reducng energy consumpton. Accordng to the lterature, exstng buldngs requre over 40% of the world s total fnal energy consumpton, and account for 24% of world s CO2 emssons (Internatonal Energy Agency, 2006). The assessment of energy performance s demonstrated n all of the case studes whch ads n provdng tangble data on the sustanable desgn approach. The fndngs from all three cases show the mssng performance measures on the amount of garbage and contamnated stes management. These measures assess the possble negatve mpact on the envronment, whch can drectly be related to an envronmental mpact assessment (EIA). Performance measures n ths aspect should be more concerned n order to buld a stronger relatonshp wth an external stakeholder such as the neghbourng communty. 6 Cost ef fcency The DAD and the PTH cases nclude performance measures relatng to operatng costs concernng real estate,.e. faclty costs (buldngs & equpment), utlty (electrcty & water) and parkng costs. Organsatons are forced to compete wth rvals n the same busness, whch are offerng the same products or servces at a compettve prce. The mnmsaton of resource utlsaton n the bult asset such as the reducton of operatng costs can be used as an approach to strve n the busness. In addton, the lterature ndcates that cost reducton s one of the most mportant drvers of workplace change. Occupancy costs have been found n all of the cases ncludng taxes (property and land), of fce rent and deprecaton expenses. The lack of performance measures n occupancy costs (.e. total occupancy cost per employee, occupancy cost as a % of total operatng expense) makes t dffcult for the organsaton to have a holstc vew of the company s overall portfolo performance. 239 Cross-case analyss: fndngs and reflectons

238 9.3.4 Performance measures n connecton to dfferent stakeholders and dfferent levels Table 47 demonstrates the CRE performance measures from the lterature (left column) and those beng used n the case studes (shortened and summarsed) n connecton to dfferent stakeholders, and dfferent real estate and manageral levels. CRE measures from lterature Stakeholder percepton Employee satsfacton wth work envronment Communty and wellbeng Fnancal health Value of property, plant and equpment Organsatonal development Qualty of facltes Employee satsfacton DAD PTH WSRL Stakeholders Percentage of complants from publc regardng envronmental mpact Income from commercally rented area Work done accordng to the development of buldng management standard (BMS) Employee satsfacton survey NA User satsfacton survey Provson of knowledge on water management to ctzen Scale level Manageral level Employees Workspaces Operatonal Polcy maker Buldngs NA NA Controller Rental space Rsk management & busness control (strategc, operatonal, complance and fnancal rsks)* Rsk Inventory and Evaluaton (RI&E) Techncal managers Buldngs Strategc Strategc Operatonal Accommodaton usage NA NA Square metre/desk Employees Workspaces Tactcal Productvty Employee productvty Envronmental responsblty Resource use Cost ef fcency Operatng costs (buldng and FM) Employee health, safety and well beng Introducton of green buldng Constructon materals and equpment meet local content Operatng costs - Faclty costs (buldngs & equpment) - Taxes (property & land) Health and wellbeng n offce through the WPI Energy effcency mprovement* Collecton and recyclng of company s products* Utlty (electrcty & water) cost/ unt Parkng cost/ month Health &Safety Employees Workspaces Tactcal Introducton of sustanable approach to the new buldng EU Energy label Operatng costs - Deprecaton expenses * does not drectly relate to real estate, NA not appled.e. not measured or no data avalable Polcy maker Table 47 CRE performance measures of three cases n connecton to stakeholders, real estate and manageral levels. Buldngs Strategc Controllers Buldng Strategc 240 Performance measurement of workplace change

239 1 Stakeholder percepton Employee satsfacton wth the work envronment as appled n the case studes s consdered to be a performance measure of stakeholder percepton. Ths measure focuses on the employees as end users of the workspaces relatng to an operatonal level of CREM. Communty and well-beng related measures are connected to the polcy maker and a focus on the strategc perspectve of buldngs. For example, the percentage of complants receved from the publc regardng the envronmental mpact s thought to be a performance measure regardng ths perspectve. 2 Fnancal health Fnancal health emphasses revenue expanson. Only the DAD case ncludes ncome from a commercally rented area as a performance measure related to a rental space. Ths measure nvolves decsons from the controller on a strategc level of CREM. 3 Organsatonal development Qualty of facltes s consdered as a performance measure of organsatonal development. All of the case studes nclude performance measures related to the physcal condton of ther buldngs (.e. work done accordng to the development of buldng management standard, dentfyng buldng related rsks). These measures are connected to techncal managers and focus on mprovng buldng qualtes at an operatonal level of CREM. Performance measures related to accommodaton usage such as square metres allocated per desk, and the amount of teamwork space have an mpact on the specfc needs of employees and focus on space plannng and evaluaton at a tactcal level of CREM. 4 Productvty Ths perspectve does not only consder an effcent work envronment, but t also focuses on effectve accommodatons and other facltes that support new ways of workng. All of the case studes apply the performance measures related to the productvty of the work envronment (.e. health, safety and well-beng) that places a focus on employees as vewed from a tactcal level of CREM. 5 Envronmental responsblty Ths perspectve concerns the mpact on the envronment. Two cases studes, DAD and WSRL, nclude buldng performance measures (.e. constructon materals and equpment meet local content, energy performance) that are related to ths perspectve. These measures nvolve consderatons for the whole corporaton that call for decson makng from the polcy makers on a strategc level of CREM. 241 Cross-case analyss: fndngs and reflectons

240 6 Cost ef fcency Unlke the fnancal health perspectve, cost effcency focuses on cost reducton. The fndngs show that all of the case studes nclude occupancy and operatng costs of buldngs (.e. faclty and utlty costs, deprecaton expenses) as performance measures related to ths perspectve. These measures nvolve decsons from the controllers on a strategc level of CREM. The CRE performance measures from the lterature that have been appled n connecton to dfferent stakeholders, and dfferent real estate and manageral levels can be summarsed as follows: Employee satsfacton wth the work envronment s a performance measure that s connected to the end users (employees) and focuses on mprovng the exstng accommodaton (workspaces) on an operatonal level. Performance measures related to communty and well-beng are connected to the polcy makers and focus on the symbolc functon of an organsaton (e.g. company s reputaton) at the strategc level. Performance measures of fnancal health and cost ef fcency are connected to the controller as the focus s on revenue expanson and cost mnmsaton of corporate real estate (.e. rental space and buldngs) at a strategc level of CREM. Performance measures related to organsatonal development are connected to both techncal managers and employees as the focus on the buldng qualtes and the employees specfc needs at an operatonal and a tactcal level. Performance measures of productvty have an mpact on employees and focus on the employee s health, safety and well-beng at a tactcal level. Performance measures related to envronmental responsblty are connected to polcy makers and focus on the specfc functons of buldngs at the strategc level Value dmensons Value dmensons that have drect relevance n the feld of CREM and FM nclude use value (Woodruff, 1997, Ostrom et al., 2010), socal value (McMllan, 2004), envronmental value (Senge et al., 2008), relatonshp value (Gwnner et al., 1998) and fnancal value (Bowman and Ambrosn, 2000, Lusch and Vargo, 2009). Table 48 demonstrates the appled value dmensons n the case studes. 242 Performance measurement of workplace change

241 Value dmenson DAD PTH WSRL Use value Socal/Cultural value Envronmental value Relatonshp value Fnancal value appled n the case study + appled to some degree Table 48 Value types n three case studes 1 Use value Use value s defned as a customer s outcome, purpose or objectve that s acheved through servce (Woodruff, 1997). Use value s strongly related to the effectveness of FM (Coenen et al., 2012). In all three cases, end users of the workplace have also been referred to the customer of the corporate real estate servces. It s clear that n all of the case studes a strong focus s placed on use value as demonstrated n the provson of safe workplaces that promote employee health, well-beng and satsfacton. In addton, the PTH and WSRL workplaces are desgned to support flexble workng, teamwork and communcaton that are consdered as use value of CREM and FM. The fndngs from the three case studes show that use value s strongly related to effectveness,.e. safe workplaces, employee health, well-beng and satsfacton. 2 Socal/cultural value Coenen et al. (2012) menton that FM - beng responsble for the bult envronment - can create socal value by organsng the physcal settng accordng to organsatonal goals and desred behavour as suggested by Btner (1992). Indcators or metrcs of socal value are, for example, a sense of communty and sense of place, cvc prde and neghbourly behavour, or reduced crme and vandalsm. Organsatonal context can have an nfluence on value dmensons n CREM and FM. The fndngs from the case studes show that the organsatons reflect socal value n dfferent ways wth regard to ther buldng appearance: One of the DAD s workplaces was located n the conference centre of the government complex, so the organsaton shows a lack of strong corporate dentty n ts buldng appearance. The PTH case rents the space n a mult-tenant offce buldng whch makes t dffcult to promote a sense of place. The sustanable buldng desgn of the WSRL case reflects the organsatonal objectves and helps to promote socal value. As a result, the opportunty to support socal value by a buldng s appearance s mnmsed n the Tha cases. 243 Cross-case analyss: fndngs and reflectons

242 3 Envronmental value Envronmental value can be descrbed as a concern for ntergeneratonal equty, the protecton of bodversty and the precautonary prncple n relaton to the consumpton of fnte resources (McMllan, 2006). Prncples nclude adaptablty and/or flexblty, robustness and low mantenance, and the applcaton of a whole-lfe cost approach. The mmedate benefts are good local health and no or low polluton. Examples of ndcators or metrcs are envronmental mpact, amount of garbage produced and carbon footprnt. The use of energy effcent materals n the DAD case and the sustanable desgn approach used n the WSRL case both reflect envronmental value. The concern about the envronmental mpact n these two cases has been seen as one of the common roles of publc organsaton. In addton, the mplementaton of flexble workplace n the PTH and the WSRL cases can reduce the footprnt whch n turn contrbutes to the envronmental value. 4 Relatonshp value Relatonshp value conssts of a relatonshp s benefts and the sacrfces made by stakeholders (Gwnner et al., 1998). All of the cases have a clear classfcaton of stakeholders and ther needs: The customer n the DAD case, whch s a publc organsaton, needs to be nformed about the support servces wth regard to the real estate and facltes such as ts help desk and call centre. The customer of the PTH case, whch s a suppler, requres easly accessble locaton for busness contact. The customer of the WSRL case, whch s ctzens of the regon, requres knowledge and nformaton about dutes and servces concernng water management. The analyss of stakeholders and ther connecton wth CREM are essental n formulatng the relatonshp value. 5 Fnancal value The fnancal dmenson of value s also called value-n-exchange, economc value, or fnancal value (Coenen et al., 2012). The fnancal value dmenson descrbes the realsed value when the product s sold. It s the amount pad by the buyer to the producer for the perceved use value (Bowman and Ambrosn, 2000, p.4). Exchange value s descrbed as the exchange of money for a market offerng (Lusch and Vargo, 2009, p.9) and focuses on cost and the connecton between output and nput n a busness process (Jensen, 2010, p.177). The fndngs show that all of the case studes nclude several ssues related to fnancal value;.e. faclty and utlty costs (buldngs & equpment). As a prvate company, the PTH case focuses more on ths value dmenson than the other two cases as was shown n several of the fnancal performance measures ncludng the economc proft realsed, ncome generated from operatons, workng captal, operatonal cash flows, nventory turns and offce rent. 244 Performance measurement of workplace change

243 Value can be used n varous ways and does not necessarly have the same meanng for all of the partes nvolved (Buttle, 2004). Thomson and Austn (2006) menton that stakeholders make dfferent value judgements regardng the same object and the nformaton that descrbes t, because they are each nfluenced by ther own set of values. The fndngs from the case studes show the dfferent classfcaton of stakeholders and ther relatonshps to the organsaton. For example, the DAD s buldng users were classfed nto dfferent groups of stakeholders (.e. employees, customers, vstors) wth ther dfferent needs and preferences. The fndngs show that the corporate real estate performance measures n the sx categores found n the case studes (see Table 46) can be connected to most of the areas ncluded n the added value of CREM (see Table 6). Furthermore, these performance measures can also be consdered n relaton to the perceptons of stakeholders as value dmensons: Performance measures of stakeholder percepton focus on the satsfacton aspects (work envronment, CRE servce, facltes) of dfferent stakeholders that can be consdered as relatonshp value. Performance measures of fnancal health focus on the overall fnancal aspect of organsaton whch s consdered as fnancal value. Performance measures of organsatonal development focus on the qualty of facltes (.e. sutablty of premses) that can be consdered as cultural value. Performance measures related to productvty (.e. health, safety and well-beng n the workplace) can be consdered as use value. The concern about the envronmental mpact, whch has been shown n the performance measures of envronmental responsblty, s algned wth envronmental value. Performance measures of cost ef fcency focus on the costs of occupancy and buldng/fm operaton and are related to fnancal value. The observaton made n all three of the case studes showed that corporate real estate performance measures can be used as a means to measure the added value of CREM, and can be connected to the dfferent value dmensons of the organsatons. 9.4 Employees responses to the work envronment Employees responses to the work envronment have been evaluated n the followng three ways: employee satsfacton, perceved productvty support and prortsed aspects of the work envronment. The nformaton from the three case studes was compared wth smlar data that had been obtaned from the 96 Dutch cases (Center for People and Buldngs ndcator; Bruna, 2013). 245 Cross-case analyss: fndngs and reflectons

244 9.4.1 Employee satsfacton Table 49 shows the percentages of satsfed respondents n the three case studes and the average percentage of satsfed respondents n 96 Dutch cases (Bruna, 2013). DAD PTH (before change) PTH (after change) Organsaton Content and complexty of work Sharng own deas about workng envronment Accessblty of the buldng Archtecture and appearance of the buldng Subdvson of the whole buldng Number, dversty, and functonalty of spaces Adjacency and localty of the spaces Openness and transparency of envronment Functonalty and comfort workspaces Interor desgn appearance and ambance Prvacy Opportuntes to concentrate Opportuntes to communcate Archve and storage facltes ICT and ICT support facltes Facltes and facltes management Indoor clmate Lghtng Acoustcs Facltes for remote workng Table 49 Percentage of satsfed respondents n three cases and the smlar data n 96 Dutch cases (Bruna, 2013) WSRL CfPB (2013) 246 Performance measurement of workplace change

245 a. Comparson between the three cases Fndngs showed that all three cases have rather low satsfacton percentages on archve and storage facltes and prvacy. In regard to most of the tems a much lower percentage of the DAD employees are satsfed n comparson to the PTH and the WSRL cases after the workplace change. One excepton s that there s satsfacton regardng the archtecture and appearance of the buldng and the opportuntes to communcate. In comparson wth the DAD case, both the PTH and the WSRL cases have hgh percentages of satsfed respondents n the followng areas: 1) accessblty of the buldng, 2) functonalty and comfort workspaces, 3) facltes for remote workng, 4) nteror desgn appearance and ambance, 5) facltes and facltes management, 6) number, dversty, and functonalty of spaces, and 7) openness and transparency of envronment. For example, the accessblty of the buldng s much less apprecated n the DAD case (37%) n comparson to the PTH case (62 %) and the WSRL case (72 %). The WSRL case has much hgher number of satsfed respondents on the three aspects compared wth the Tha cases whch nclude the followng aspects: 1) archtecture and appearance of the buldng, 2) subdvson of the whole buldng and 3) opportuntes to communcate. For example, the percentage of satsfed respondents regardng archtecture and the appearance of the buldng n the WSRL case s exceptonally hgh (91%). On the contrary, the PTH case has the lowest apprecaton on ths aspect (45% satsfed respondents both before and after the change). The average percentage of satsfed respondents regardng ths tem n the DAD case (59%) s slghtly hgher than the PTH case. The fndngs of all three cases show mxed results n the followng areas: 1) content and complexty of work, 2) adjacency and localty of the spaces, 3) lghtng, 4) ndoor clmate, and 5) the opportuntes to concentrate. In addton, the fndngs show that the WSRL case acheves the hghest satsfacton percentage followed by the PTH and the DAD case respectvely. For example, the WSRL case ndcated a hgher percentage of satsfed respondents regardng the content and complexty of work (83%) n comparson to the DAD case (32%) and the PTH case (59%). b. Comparson wth the CfPB satsfacton ndex The fndngs obtaned from all cases show that the PTH, the WSRL and 96 Dutch cases (Center for People and Buldngs Indcator; Bruna, 2013) have hgh satsfacton percentages n: 1) accessblty of the buldng, 2) functonalty and comfort workspaces, 3) facltes and facltes management, 4) openness and transparency of envronment, and 5) nteror desgn appearance and ambance. The comparson between the fndngs from three case studes and the CfPB ndex shows strkng smlartes and dfferences: 247 Cross-case analyss: fndngs and reflectons

246 The fndngs show that the DAD employees are much less satsfed wth most of the aspects that relate to ther work envronment compared wth the Dutch employees n 96 cases (Bruna, 2013). There s an excepton whch regards the archtecture and the appearance of the buldng (59%) whch s slghtly hgher than the Dutch cases (55%). Several aspects of the PTH workplace have a much lower satsfacton percentage than the Dutch cases ncludng content and complexty of work (59% versus 80% n the average Dutch cases) and opportuntes to communcate (48% versus 71%). However, the satsfacton percentage n ndoor clmate s much hgher n the PTH case (59%) n comparson to the Dutch cases (33%). The WSRL shows a much hgher satsfacton percentage n several aspects compared wth the other Dutch cases ncludng archtecture and the appearance of the buldng (91% versus 55% n the average Dutch cases), subdvson of the whole buldng (80% versus 46%), number, dversty, and functonalty of spaces (65% versus 44%), and adjacency and localty of the spaces (76% versus 53%). c. Reflectons on how to explan smlartes and dssmlartes The smlartes and dssmlartes obtaned from the fndngs from the three cases have been explaned n connecton to the varables n the ntegrated conceptual model ncludng: 1 organsaton (busness types, objectves, structure, staff characterstcs, work process & work pattern) 2 workplace change (workplace change objectves, locaton, buldng grade, archtectural desgn, workplace concept, supportng facltes and mplementaton process). The fndngs from three case studes show that dfferent organsaton and workplace characterstcs have dfferent nfluences regardng the satsfacton of employees. 1 Organsaton Busness types and objectves The case studes have dfferent polces on the mplementaton of workplace change wth regard to the dfferent busness types and objectves: Most of the publc organsatons n Thaland are developng the personnel admnstraton system that supports postve atttudes and workng methods among publc offcals n order to delver more effcent publc servces. Ths objectve has led to the agreement that allows the DAD employees to personalse ther workspaces whch results n the hgh average satsfacton ratng of workplace envronment as frendly and enjoyable. The consumer lghtng busness of the PTH case and the water management busness of the WSRL case have been supported by the work envronment that supports task performance. Polces wth regard to the use of dfferent types of workspaces n the PTH and WSRL case have resulted n a hgh satsfacton percentage n number, dversty, and functonalty of spaces and functonalty and comfort workspaces. 248 Performance measurement of workplace change

247 Structure The structure of case studes has been explaned n connecton to workplace change and the apprasal of change: The herarchcal structure of the DAD organsaton reflects the bureaucracy of a publc organsaton. For example, the corporate decsons of the DAD case that were made by the organsaton s commttee must be algned wth the central government polcy. The flat structure of the PTH and WSRL case allows ther employees to become nvolved n the desgn process that contrbuted to the mproved work envronment whch n turn could lead to the hgher satsfacton percentage on several aspects ncludng sharng one s own deas about the workng envronment, number dversty and functonalty of spaces, adjacency and localty of the spaces, and openness and transparency of envronment. Staff characterstcs and work process & work pattern Staff characterstcs, work process & work pattern of the three case studes have been descrbed n connecton to workplace change and the apprasal of change: Most of the DAD employees are general offce workers who carry out day-to-day routne operatons. Permanent employees are supplemented by temporary workers. The DAD employees are gven drect orders and are hardly gven any opportunty to make decsons. The hghly compettve busness envronment of the PTH case requres a partcular type of employee. Most of the staff are qualfed to work as specalsts, so the expectatons regardng the workplace qualty are hgh. There are two types of PTH employees, moble and non-moble workers who are nvolved n projects or group work, and who subsequently need a change n the balance of varous nterdependent sklls. The moble workers usually spend much of ther tme out of the offce and they only hold meetngs occasonally n the offce, whereas the nonmoble workers occupy specfcally desgnated desks. The WSRL employees are sklled workers who carry out varous types of offce work and who need to nteract wth ther colleagues. The WSRL staff share smlar characterstcs wth the PTH staff n that they also requre a creatve and collaboratve work envronment. Work processes of the DAD case can be descrbed as routne offce work wth a regular workng tmetable from 9 to 5. The staff characterstcs and work processes n the DAD case have led to the choce of the typcal workplace desgn,.e. a large open plan layout wth hgh parttons and a few types of work settngs. Ths may account for the qute modest percentages of satsfed respondents regardng several aspects of the DAD workplace ncludng openness and transparency of envronment and functonalty and comfort workspaces. In addton, the workng trends that are movng more towards dynamc workng actvtes may account for the low employee satsfacton n content and complexty of work that was found n the DAD case. 249 Cross-case analyss: fndngs and reflectons

248 On the contrary, the work processes of the PTH and the WSRL cases can be descrbed as flexble workng, dependng on what needs to be done, and on ndvdual arrangements wth hghly ntermttent patterns of occupancy supports wth shared task settngs. The collaboratve workng envronment wth ts varous work settngs n the PTH and the WSRL cases has been responsble for the hgh satsfacton percentage n number, dversty, and functonalty of spaces. 2 Workplace change Workplace change objectves The fndngs from the three case studes show that workplace change objectves have been of nfluence regardng the choce of the new workplace: The DAD case requres more offce space n order to cope wth the ncreasng number of employees, so ths entaled makng a move to the larger workplace wth an open plan layout. The new workplace concept was ntroduced n the PTH case to foster communcaton among employees. Havng orgnated from several partners, the WSRL case decded to accommodate all of the employees who were dspersed over dfferent locatons to one buldng n order to foster ntegraton and communcaton. The PTH and the WSRL cases both needed to have a more effectve use of space whch n turn resulted n the mplementaton of the nnovatve workplace concept. In order to mprove the workng envronment, each case set up workplace change objectves n an effort to ether to promote sustanable objectves, to ncrease floor space, or to promote mutual communcaton: The modern desgn of the DAD buldng can be seen n the buldng skn wth ts energy effcent materals (.e. reflectve glass). In order to reduce the coolng load, the energy conservaton concept controls ventlaton and nfltraton through the tghtly sealed buldng envelope that could result n some dsadvantages such as the ndoor ar qualty. The PTH case s offce s charactersed by a large and open floor plan n a tall offce buldng, wth lfts, shafts and santary facltes located n a central core that s smlar to the typcal North Amercan offce descrbed by Duffy (1997). Just as n many other northern European offce buldngs, the desgn of the WSRL new workplace emphasses nformaton exchange among employees. Because of the archtectural desgn, nteror appearance and the functonal space of the WSRL s new buldng, we can wtness a hgher percentage of satsfed employees n several aspects of the work envronment of the Dutch case compared wth the Tha cases, ncludng archtecture and appearance of the buldng, subdvson of the whole buldng and adjacency and localty of the spaces. 250 Performance measurement of workplace change

249 Locaton Dfferent real estate strateges wth regard to locaton have led to dfferent degrees of employee satsfacton: Stuated n the cty centre, the PTH s buldng locaton s more apprecated by the employees. We observe a hgher percentage of satsfed respondents n the PTH case regardng the accessblty of the buldng compared to the DAD case. The WSRL s new buldng was located close to the ralway staton whch was easly accessble for employees who are dspersed over several dfferent locatons. Ths has resulted n a hgh satsfacton percentage n accessblty of the buldng. The hgher satsfacton percentage wth regard to the accessblty of the buldng n a number of the Dutch cases mght be due to the fact that many of the Dutch cases are located near a tran staton (Rothe et al., 2011). Buldng grade Buldng grade of the three case studes has been descrbed n connecton to the apprasal of change: The DAD s workplace s classfed as the Grade B offce, whch s charactersed as an offce buldng wth a lower qualty and mnmal decoraton and economcal cost of occupaton (CBRE, 2012) The PTH case occupes the Grade A offce whch s charactersed by an offce that has an exceptonal buldng desgn and servces such as a decoratve nteror desgn n the common meetng areas and a provson of professonal buldng management (CBRE, 2012). The WSRL case occupes a modern offce buldng whch has a hgh qualty of nteror desgn and work settngs. The hgher buldng qualty of the PTH and the WSRL case has resulted n the hgher satsfacton percentage n nteror desgn appearance and ambance compared wth the DAD case. Archtectural desgn Employee satsfacton n archtecture and buldng appearance n the PTH and the DAD cases s qute modest compared wth the WSRL case: The DAD s modern desgn buldng wth ts alumnum composte materal used n the buldng envelop s qute dfferent from other publc buldngs n Thaland. However, the buldng appearance does not express corporate culture and t s dffcult to recognze that the buldng accommodates a publc nsttuton. The PTH case rents the space n a mult-tenant offce buldng that hardly creates a strong corporate dentty and the sense of place through the buldng. The exteror of WSRL s offce was specfcally desgned to retan the sustanable objectve by usng natural materals such as brck, stone and water. 251 Cross-case analyss: fndngs and reflectons

250 Workplace concept In all of the cases we observe that the selecton of workplace concept depends on work processes: The routne offce work of the DAD fts wth the qute typcal layout and the standard work settngs. The more collaboratve works found n the PTH and the WSRL cases have resulted n choosng the nnovatve workplace concept wth ts modern nteror desgn and work settngs. The dfferent workplace concepts that can be found n the case studes have resulted n the dfferent feedback receved from the employees. The flexble workplace concept provdes the PTH and WSRL employees wth more choces to perform tasks on varous occasons. Both cases have a hgher satsfacton percentage regardng several aspects n comparson to the DAD case ncludng number, dversty and functonalty of spaces, openness and transparency of envronment, functonalty and comfort workspaces, and facltes for remote workng. In addton, the creatve workplace desgn also drves the brand dentty found n both cases. Subdvson of the buldng s ndcated by the orentaton of the buldng, the adjacency of the varous spaces and the practcal usablty of the buldng whch have been dscussed n the three cases: Wthout of the provson of support spaces, the qute typcal layout of the DAD workplace has resulted n the lowest percentage of satsfed employees n the subdvson of the whole buldng (33%). Employee satsfacton regardng the subdvson of the buldng was not mproved n the PTH case compared wth the prevous stuaton. Ths s because the new workplace s stuated n the same buldng, so the usablty of the buldng dd not change. The satsfacton regardng ths aspect was found to be rather low (38%). The layout of the WSRL workplace was desgned to have every functon under one roof, wth short dstances between the spaces that resulted n the hgh satsfacton percentage pertanng to ths aspect (80%). Not only workplace appearance expresses the brand, but t can also stmulate creatvty and nteracton as well as support culture change. The more attractve workplace desgn of the PTH and WSRL cases has led to a hgher satsfacton percentage n the nteror desgn appearance and ambance than the conventonal workplace concept of the DAD case. The satsfacton percentage concernng the opportunty to communcate s hgher n the Dutch case than the Tha cases that can be explaned by the dfferent workplace concept: The DAD case separated the operaton department to a secondary buldng, away from the man buldng. 252 Performance measurement of workplace change

251 The PTH case separated the workplace of the lghtng department from the other unts. The new buldng of WSRL has been desgned to accommodate all functons under one roof and, moreover, to provde varous functonal spaces n order to support better communcaton between colleagues. The separated buldngs of the DAD case and the separated workplace of the PTH case are the major obstacle for conductng face-to-face communcaton. Ths separaton makes t dffcult to have effectve communcaton between the functonal unts of the organsaton. Supportng facltes Despte the fact that both the Tha cases have moble workers, facltes for remote workng are not equally provded. The PTH employees were provded wth more support regardng the facltes and there were regulatons for the moble workforce that have resulted n the hgher satsfacton percentage that was obtaned for ths tem compared wth the DAD case. The fndngs from the PTH and the WSRL cases show that the ICT and ICT support facltes are a dssatsfer: The fndngs from the PTH case show that satsfacton wth ths aspect had slghtly decreased (48% of satsfed respondents compared wth 52% n prevous stuaton), and t was one of the top three most dssatsfed aspects n the current condton. The ICT and support facltes n the WSRL case dd not change n satsfacton (47% of satsfed respondents, both n the 2007 and 2008 surveys). Ths aspect was one of the top fve most dssatsfed aspects of the work envronment n the most recent survey. It s evdent that the dssatsfacton s hgh when ths aspect was not fulflled. Therefore, the ICT and support facltes can be consdered as a dssatsfer accordng to Herzberg (1987). Implementaton process Employee nvolvement durng the desgn process has an nfluence on the workplace change of the three cases studes: The DAD case dd not nvolve employees n the change process. The facltes department s n charge of the mantenance of the buldngs and facltes as routne work. Both the PTH and the WSRL cases allow employees to become nvolved n the mplementaton process. For example, the PTH employees had an opportunty to test offce chars, and to partcpate n the selecton of furnture whch contrbuted to the postve change n the workplace. 253 Cross-case analyss: fndngs and reflectons

252 Employee nvolvement has had an nfluence on workplace concept, whch affects employee satsfacton as demonstrated n several satsfed aspects n the PTH and the WSRL cases ncludng number, dversty, and functonalty of spaces, adjacency and localty of the spaces, and nteror desgn appearance and ambance. Non-work related varables: age and gender The work envronment has an mpact on employee satsfacton and productvty, but other varables ncludng aspects that are not work-related can also play a role such as an employee s prvate lfe (Van der Voordt, 2003). Evdence suggests that age, gender, educaton, status or socal role can affect productvty and satsfacton at work (Farshch and Fsher, 2006). Dfferences n age and gender n the case studes have been dscussed: The fndngs show a much hgher number of young employees n the DAD case (48% younger than 31 years old) compared wth the PTH and the WSRL cases (22% and 9% younger than 31 years old, respectvely). The number of female employees n the DAD case (63%) s much hgher than n the PTH and the WSRL cases (31% and 30%) The age and gender dfferences may have an nfluence on the dfferent percentages concernng employee satsfacton wth the work envronment. For example, a much hgher percentage of the DAD employees ndcate neutral wth regard to the satsfacton n dfferent aspects of the work envronment n comparson to the PTH and the WSRL cases. Concludng on employee satsfacton, the physcal characterstcs of workplace change have a stronger nfluence on satsfacton of employees than the other varables as have been shown n the fndngs of the three cases Perceved productvty support Table 50 shows the percentage of satsfed respondents n the three case studes and the average percentage of satsfed respondents n 96 Dutch cases (Bruna, 2013). DAD PTH (before change) PTH (after change) WSRL Indvdual productvty Team productvty Organsaton productvty Table 50 Percentage of satsfed respondents n three cases and the smlar data n 96 Dutch cases (Bruna, 2013) CfPB 254 Performance measurement of workplace change

253 a. Comparson between the three cases Perceved productvty support of the work envronment can be measured at dfferent levels (ndvdual, team and organsaton) whch have been descrbed n the three case studes: Comparng all three cases, the DAD case has the lowest percentage of satsfed respondents n the extent to whch the workng envronment supports ndvdual and organsaton productvty (30% and 17%, respectvely). One excepton s team productvty (35%), whch appears to be slghtly hgher than the PTH case after the workplace change (34%). An mprovement can be observed n the ndvdual productvty of the PTH case after the workplace change occurred. Satsfacton wth the ndvdual productvty (now 55 %) s hgher compared to the prevous stuaton (43%, therefore 12% more employees remarked that the work envronment currently supports ther productvty). However, satsfacton percentages regardng team productvty (currently at 34%) and organsaton productvty (currently 31%) are lower after the workplace change (10.7 % and 11.9 % wth less satsfed respondents, respectvely, compared to the prevous stuaton). The WSRL case acheves a hgher satsfacton percentage n team and organsaton productvty (46% and 38%), whereas the PTH employees are more satsfed wth the ndvdual productvty (55%) than the other two cases. b. Comparson wth the CfPB satsfacton ndex The average percentage of satsfed respondents wth perceved support of ndvdual productvty n the DAD case (30%) s slghtly lower than n the 96 Dutch cases (40%) (Center for People and Buldngs Indcator; Bruna, 2013). The fndngs show that the PTH and WSRL employees are more satsfed wth the perceved support of ndvdual productvty (55% and 45%) compared wth the Dutch employees n 96 cases. The satsfacton percentage regardng team productvty n the DAD case (35%) and the PTH case (34%) are slghtly lower than n the 96 Dutch cases (38%). Agan, the satsfacton percentage regardng organsaton productvty s qute modest n the DAD case (17%) n comparson to the average Dutch cases (31%). The comparson between the fndngs from three case studes and the CfPB ndex shows strkng smlartes and dfferences: In comparson to 96 Dutch cases (Bruna, 2013), all of the levels pertanng to the perceved productvty percentage (ndvdual, team and organsaton) n the DAD case are less apprecated than the CfPB ndcator. The fndngs show mxed results between the perceved productvty percentage of the PTH case and the CfPB ndcator. The satsfacton percentage for perceved productvty support n the WSRL case at all levels was hgher than the CfPB ndcator. 255 Cross-case analyss: fndngs and reflectons

254 c. Reflectons on how to explan smlartes and dssmlartes The WODI questonnare asks employees how they perceved the work envronment that supports ther productvty, team and organsaton. The fndngs from three cases show that the DAD case has a modest percentage of satsfed respondents wth regard to ndvdual and organsaton productvty compared wth the PTH, WSRL and a number of the Dutch cases. The fndngs showed that the choces of work settngs, workplace layout, support facltes or publc spaces have an nfluence on employee productvty. Addtonally, the negatve mpact of workplace desgn on perceved productvty support has been shown n all of the three cases: The qute typcal layout and standard work settngs that were based on the work processes n the DAD case may have resulted n the low ndvdual and team productvty. The lack of support spaces also has had an mpact on team productvty. From the ntervews conducted wth the DAD employees, t was concluded that the separaton of workplaces to two separate buldng locatons n the DAD case caused dffcultes for collaboraton and team workng whch has resulted n the lower perceved productvty percentage n the DAD case compared wth the other cases. Fndngs from the PTH case after the change show strkng dfferences between the perceved productvty levels. The perceved support of team and organsaton productvty dropped, whereas ndvdual productvty ncreased after the change to the new workplace. The decreased team productvty can be explaned by how the workplace layout was arranged. There are varous groups of employees n the lghtng department, but team spaces have not been provded to support group work. Ths created dffcultes and prevented each group of employees from beng able to effectvely communcate wth one another. It was concluded that due to the mscalculaton of the team space requrement n the PTH case durng the mplementaton process, a lower satsfacton percentage n team productvty was obtaned compared to the prevous stuaton. The WSRL case acheved the hghest percentage of satsfed respondents n team and organsaton productvty whch have been explaned by the specfcally desgned nteror, the workspace layout, the arrangement of varous work settngs, and the collaboratve work envronment. However, the lack of prvacy and concentraton n the open plan offce has affected the overall productvty support n the Dutch case. Several studes nvestgate the relatonshp between employee satsfacton and perceved productvty support of the work envronment (Kroner et al., 1992, Lefer, 1998). The study by Kroner et al. (1992) showed that there s a postve assocaton between change n productvty and change n regard to satsfacton wth the work envronment. Accordng to Publc Work Canada, the two envronmental dmensons that have a greater effect on both worker productvty and satsfacton are spatal 256 Performance measurement of workplace change

255 comfort and prvacy (See Secton 3.5.1, Table 16). The fndngs from all three cases show that the qualty of the work envronment not only mpacts on employee satsfacton, but t also affects the perceved productvty support of the work envronment. In comparson wth the CfPB ndcator, the remarkably hgh satsfacton percentage n the ndvdual productvty of the PTH case and the team productvty of the WSRL case can be accounted for by the workplace changes that are based on the staff characterstcs and the work processes found n both cases. These fndngs ndcate that the work envronments of both cases are more apprecated wth regard to the support of ndvdual and team productvty n comparson wth a number of the Dutch cases. The CfPB ndcator can be used as a benchmark for the DAD case to mprove the work envronment that supports ndvdual and organsaton productvty. The physcal characterstcs of workplace change showed to be more mportant to the perceved productvty support than the mplementaton process as has been demonstrated n PTH case. Although the PTH case has set up the systematc mplementaton process, the lack of team spaces has resulted n the decreased team and organsaton productvty. The study showed that the dfferent choces of workplace change have postve or negatve mpacts on the perceved productvty support wth regard to the needs and preferences of employees Prortsed aspects Table 51 shows the rankng percentage respondents n the three cases markng a partcular aspect as one of three most mportant aspects of the workplace envronment and the smlar data n the average percentage of satsfed respondents n 96 Dutch cases (Bruna, 2013). 257 Cross-case analyss: fndngs and reflectons

256 DAD PTH (before change) PTH (after change) WSRL CfPB (2013) Functonalty and comfort workspaces Accessblty of the buldng Opportuntes to concentrate Indoor clmate Opportuntes to communcate Number, dversty, and functonalty of spaces ICT and ICT support facltes Facltes for remote workng Interor desgn appearance and ambance Prvacy Openness and transparency of envronment Adjacency and localty of the spaces Subdvson of the whole buldng Sharng own deas about workng envronment Archtecture and appearance of the buldng Archve and storage facltes Facltes and facltes management Lghtng Acoustcs Table 51 Rankng % respondents n three cases markng a partcular aspect as one of three most mportant aspects of the workplace envronment and the smlar data n 96 Dutch cases (Bruna, 2013) a. Comparson between the three cases The fndngs showed that all three cases allocated a hgh prorty to the followng aspects: 1) number, dversty, and functonalty of spaces, 2) ICT and ICT support facltes, and 3) the accessblty of the buldng. For example, the fndngs show that number, dversty, and functonalty of spaces s ndcated as an mportant aspect n the DAD case (20%), the PTH case (17%), and the WSRL case (24%). The most mportant aspect whch was ndcated by the DAD employees was adjacency and localty of the spaces (39%) whereas ths tem proved to be less sgnfcant n the PTH and the WSRL cases (mentoned by 17% and 5%). The DAD employees ranked the subdvson of the whole buldng as one of the top three most mportant aspects (35%), whch was gven a much hgher prorty than n the PTH and the WSRL cases (mentoned by 7% and 5%). Sharng one s own deas about the workng envronment was consdered as an mportant aspect for the DAD employees (mentoned by 31% n ther top three of the most mportant aspects), but ths tem had much less sgnfcance n the WSRL case (9%). 258 Performance measurement of workplace change

257 In comparson wth the DAD case, the PTH and the WSRL assgned a much hgher prorty to the followng aspects: 1) functonalty and comfort workspaces, 2) opportuntes to concentrate, 3) facltes for remote workng and 4) opportuntes to communcate. For example, the employees of both the PTH and WSRL cases allocated a hgher prorty to functonalty and comfort of the workspaces (34% and 55%) than the DAD respondents (15%). The perceved hgh mportance of opportuntes to concentrate n the PTH and the WSRL cases (45% and 25%) s much hgher than n the DAD case (5%). b. Comparson wth the CfPB satsfacton ndex The three aspects concernng the work envronment that all of the case studes and 96 Dutch cases (Bruna, 2013), whch were perceved as beng the most mportant, are as follows: 1) number, dversty, and functonalty of spaces, 2) ICT and ICT support facltes, and 3) the accessblty of the buldng. For example, all three cases ndcated the accessblty of the buldng as hghly mportant ncludng the DAD case (20%), the WSRL case (21%) and 96 Dutch cases (21%). Remarkably, n the PTH case ths percentage dropped from 21% before the change to 7% after the change. Except for the DAD case, the PTH, the WSRL and the 96 Dutch cases perceve functonalty and comfort workspaces, opportuntes to concentrate, facltes for remote workng and opportuntes to communcate as hghly mportant. Functonalty and comfort of workspaces s mentoned as less mportant for the DAD case (15%), whereas ths tem s hghly prortsed n the PTH before the change (43%), and respectvely the WSRL (55%) and 96 Dutch cases (48%). Sharng one s own deas about the workng envronment s more mportant for the employees of the DAD and the PTH cases than n the 96 Dutch cases (mentoned by 31% n the DAD case, 14% n the PTH case and 6% n the Dutch cases). c. Reflectons on how to explan smlartes and dssmlartes The fndngs show mxed results between the case studes on tems that employees menton as beng the most mportant. A work envronment aspect that s mportant to one organsaton may appear to have less promnence than for the others because of the dfferences n organsatonal context such as organsatonal objectves, work processes, staff characterstcs, workplace concept and culture. For example, the DAD employees ndcate archtecture and appearance of the buldng, subdvson of the whole buldng, and adjacency and localty of the spaces as the most mportant aspects, but these aspects are less sgnfcant n the PTH, the WSRL case and the 96 Dutch cases. 259 Cross-case analyss: fndngs and reflectons

258 The fndngs show dfferent levels of envronmental comfort between the case studes: Regardng envronmental comfort, the DAD respondents show much concern about physcal comfort as ndcated n the preference for adjacency and localty of the spaces and subdvson of the whole buldng. Physcal comfort s assured by a well-consdered buldng desgn and operaton, as well as by settng and meetng standards of health and safety (Vscher, 2008). The DAD employees seem to place a hgh mportance on basc human needs and necessary condtons for buldng habtablty. The employees of the PTH, the WSRL and the 96 Dutch cases (Bruna, 2013) ndcated that there was a need to place an emphass on functonal comfort to support and mprove task performance as shown n the hgh prorty of functonalty and comfort of the workspaces and opportuntes to concentrate. Functonal comfort focuses on the generc human needs for tools to perform specfc tasks; t defnes workspace as a tool for gettng work done (Vscher, 2008). The dfferent levels of envronmental comfort can be explaned by staff characterstcs, work processes, and workplace concept of all three cases: The routne offce workers wth a regular workng tmetable have caused the qute typcal layout and standard work settngs of the DAD workplace. The workng trends that are movng towards more dynamc workng actvtes have resulted n the requrement for better housng standards and envronmental condtons n the DAD case, whch explans the emphass on physcal comfort. The staff of the PTH and the WSRL cases share smlar characterstcs as they are all experts n ther varous felds. Work processes of the PTH and the WSRL cases are more creatve works wth groups, projects and nteractve works that have led to the provson of the nnovatve workplace desgn wth collaboratve work settngs, whch explans the emphass on functonal comfort. The dfferent emphases on envronmental comfort have been explaned by the dfferent staff characterstcs, work processes and workplace concept between the DAD case and other cases. The requrement for better housng standards and envronmental condtons n the DAD case has resulted n the hgh emphass on sharng one s own deas about the workng envronment n comparson wth the other cases. The envronmental comfort can also be used to dscuss the fndng from the case studes and the CfPB ndcator: All of the case studes and the 96 Dutch cases (Bruna, 2013) allocated a prorty to the accessblty of the buldng whch was found to be a concern regardng the physcal comfort as t was one of the basc needs regardng the work envronment n all of the cases. The PTH, the WSRL and 96 Dutch cases (Bruna, 2013) ndcated functonalty and comfort workspaces, opportuntes to concentrate, facltes for remote workng, and opportuntes to communcate as beng hghly mportant. The emphass placed on 260 Performance measurement of workplace change

259 these work envronment aspects are consdered to pose a concern for the functonal comfort n that the workplace has been desgned to support task performance and envronmental competence. The respondents n the WSRL and the 96 Dutch cases dsplay more concern about the ndoor clmate than the respondents n the Tha cases. In The Netherlands, ssues concernng the safety, health and welfare of employees are found to be mportant. The ssues related to ndoor clmate are ncluded n the Rsk Inventory and Evaluaton, whch s oblgatory for large organsatons n The Netherlands. Ths could explan the hgh prorty assgned to an ndoor clmate whch was ndcated n the WSRL and 96 Dutch cases. In order to ncrease satsfacton, preferences also need to be fulflled (Rothe et al., 2012). For example, the emphass on the accessblty of the buldng n the Dutch cases has been fulflled due to the fact that many of the Dutch cases are located near a tran staton (Rothe et al., 2011). Ths tem acheves a hgh satsfacton percentage n a number of the Dutch cases (Bruna, 2013). 9.5 Cultural context Organsatonal culture Table 52 shows the fndngs obtaned from the organsatonal culture survey that were measured by the organsatonal culture assessment nstrument (Cameron and Qunn, 2006),.e. the percentage of respondents that perceve the present and preferred culture to be a clan, adhocracy, market and herarchy. Clan Adhocracy Market Herarchy Now Preferred Now Preferred Now Preferred Now Preferred DAD PTH WSRL Table 52 Organsatonal culture ndex n three cases accordng to the organsatonal culture assessment nstrument 261 Cross-case analyss: fndngs and reflectons

260 The fndngs from the current organsatonal culture surveys show that the DAD and the WSRL cases are perceved as a herarchcal culture whch has a tendency to shft to a clan culture as the preferred culture. The current organsatonal culture of the PTH case s perceved as a market culture, whereas a clan culture s preferred the most. Reflectons The fndngs show that the domnant organsatonal culture types ncludng herarchy and market have been nfluenced by the structure and staff characterstcs of the case studes: The bureaucracy n publc organsaton nfluences the strong herarchcal culture found n the DAD and the WSRL cases. DAD employees are gven drect orders wth lttle dscreton. Tasks are broken down to small components. These characterstcs nfluence a herarchcal culture that focuses on stablty and control and commands an orderly work stuaton. The staff characterstcs found n the PTH case (.e. eager to wn, take ownershp, team up to excel) nfluence the current market culture n such a way that the organsaton wants to empower ts employees to team up and to wn n the markets (Berger, 2011). Organsatonal culture, workplace change and apprasal of change The fndngs show that the domnant culture types ncludng herarchy and market have a stronger effect on workplace change and the apprasal of change than the other cultures. The fndngs from all three cases show that workplace characterstcs have also been explaned n connecton to organsatonal culture n the varous stages of the organsatonal lfe cycle. In the earlest stages of the organsaton lfe cycle, the DAD case had to share ts buldng wth another organsaton. As a consequence, the company was confronted wth a greater need for space as t was growng n sze and the number of employees had ncreased. It eventually found tself faced wth the need to emphasse structure and standard procedures n order to control the expandng responsbltes. Order and stablty was needed so therefore a move to a sngle tenant buldng occurred. Ths fts n wth the herarchcal culture of the organsaton. The close proxmty of the operaton department to the other departments combned wth the clent s premses supported the effcent communcaton that, n turn, corresponds well wth the emphass that s placed on effcency n a herarchcal culture. The focus on effcency s also vsble n the hgh rankng of adjacency and localty of workplaces and the subdvson of the buldng. By the same token, the move n whch the WSRL workplaces transferred ts varous offce locatons to a sngle buldng and the mnmsng of the use of space reflects a herarchcal culture whch places an emphass on an envronment that s stable, where tasks and functons can be ntegrated and coordnated (Cameron and Qunn, 2006). The new workplace that optmses the use of space has resulted n the hgh percentage of satsfed respondents n opportuntes to communcate. 262 Performance measurement of workplace change

261 The PTH occupes a Grade A offce n the cty centre, whch can be easly accessed for busness contact. The hgh-qualty buldng desgn and servces are meant to attract clents. The focus placed on transactons wth customers and supplers s consdered to be a market culture. Ths culture type has had an effect on the hgh satsfacton percentages n the accessblty of the buldng and the nteror desgn appearance and ambance wth regard to the locaton and buldng grade characterstcs. The organsatonal culture survey provdes quanttatve data. Accordng to Cameron and Qunn (2006), to conduct comparsons between multple cultures, quanttatve approaches must be used. However, even though a study may have been conducted objectvely, t s stll value bound. In addton, the avalablty of quanttatve data does not guarantee relablty. It mght happen that f people fll out the questonnare at another moment they wll do so slghtly dfferent. For ths reason, trangulaton of data has been appled n ths research. Data collected from dfferent sources (documents, surveys, ntervews) can facltate valdaton of data though cross verfcaton Natonal culture Table 53 shows the fndngs obtaned from the natonal culture survey that were based on the Value Surveys Module 1994 (Hofstede, 1997), and whch were found n all three case studes and the natonal culture ndexes of Thaland and The Netherlands. Power Dstance Indvdualsm Masculnty Uncertanty Avodance Long-term Orentaton Thaland* DAD PTH WSRL The Netherlands* *Thaland and Netherlands data accordng to the natonal culture ndex from Hofstede (1997) Table 53 Indexes of fve key dmensons of natonal culture n three cases accordng to the Value Surveys Module The fndngs from the natonal culture survey of the DAD case show lower scores regardng masculnty, power dstance and long-term orentaton than the country of Thaland as a whole and much hgher scores on ndvdualsm and uncertanty avodance. The PTH case shows much lower scores on power dstance, masculnty and long-term orentaton than the country of Thaland as a whole, and much hgher scores on ndvdualsm and uncertanty avodance. The WSRL case shows much hgher scores on power dstance and much lower scores on masculnty than The Netherlands as a 263 Cross-case analyss: fndngs and reflectons

262 whole. The Dutch case reflects a large power dstance and weak uncertanty avodance n comparson to the two Tha cases. Reflectons The fndngs proved that the natonal culture data from Hofstede cannot be generalsed to the case studes. The fndngs from the natonal culture surveys of the Tha and Dutch cases show large dfferences compared wth the lterature and the natonal culture ndex from Hofstede (1997). These dfferences can be explaned by the organsatonal context of the case studes as well as the changng socal and work norms. The hgh power dstance of the WSRL case (141) s n contrast to the natonal culture ndex of The Netherlands (38). Power dstance can be defned as the extent to whch the less powerful members of nsttutons and organsatons wthn a socety expect and accept that power s dstrbuted unequally (Hofstede, 1997). Accordng to the lterature, the Dutch culture does not accept nequalty. The Dutch tend to emphasse egaltaransm and respect for dfferences between ndvduals (Benedct, 1974). In the workplace, power s decentralsed. Managers count on the experence of ther team members and the employees expect to be consulted (Hofstede, 2001). The fndngs n the power dstance show contrastng results between the natonal culture survey (VSM 94) from the respondents and the characterstcs of Dutch socety as a whole. The hgh power dstance n the WSRL case could be explaned by the dstnct characterstcs of the case organsaton. The WSRL s a local authorty n whch the governance structure s smlar to that of a muncpalty. The role and responsbltes of the WSRL s presdent s smlar to that of a mayor. The presdent s empowered to take ndependent decsons (Waterschap Rverenland, 2013). Ths reflects nequalty between the hgher and lower levels of a large power dstance organsaton. Accordng to Hofstede (1997), centralsaton s one of the characterstcs of large power dstance organsatons. The hgh power dstance of WSRL can be explaned by the centralsed plannng and decson-makng as a result of the merger from several partners. The mplementaton process of the nnovatve workplace n whch top managers focus on the decson process and concern themselves wth strategy reflects the low uncertanty avodance of the WSRL case (Hofstede, 1997). Both of the Tha cases have much hgher scores on ndvdualsm (83 and 87) than the natonal culture ndex of Thaland (20). Indvdualsm stands for a socety n whch the tes between ndvduals are loose; an ndvdual s expected to look after hmself or herself and hs or her mmedate famly only. Generally, the Tha culture s descrbed as collectvsm where people are ntegrated nto strong cohesve n-groups whch protect them n exchange for unquestonng loyalty. In Tha busness culture, personal and famly connectons play an ntegral role n the daly busness operatons. However, today Thaland s faced wth the dsruptve mpact on ts tradtonal core 264 Performance measurement of workplace change

263 values and nsttutons, rooted n herarchy and patrarchy, by the emergng forces of ndvdualsm, egaltaransm and good governance (Klausner, 1997). Thas are becomng more confdent and comfortable n expressng ther ndvdual vews n many aspects of lfe such as Tha cvl and poltcal rghts. In addton the word Tha means ndependence or free man whch n turn mples ndvdualsm. The compettve market of the PTH case has put a greater requrement for specfc sklls from the employees that have led to several ssues on human resource management such as crtera for recrutment and career ladder that are based on expertse and experence of the ndvduals. These ssues reflect the ndvdualstc culture (Hofstede, 1997). In the ndvdualstc culture, occupatonal moblty s hgh n whch the employeremployee relatonshp s a contract between partes on a labour market (Hofstede, 1997). The DAD employees usually perform day-to-day operatons. The permanent employees are supplemented by temporary workers. The short-term employment s hgh that may have resulted n a hghly ndvdualstc culture. As a result of the changng socal and work norms and the dstnct characterstcs of the organsatons, the ndvdualstc culture s hgh n both the DAD and PTH cases. Natonal culture, workplace change and apprasal of change The fndngs show that the natonal culture dmensons ncludng ndvdualsm and uncertanty avodance have a stronger effect on workplace change and the apprasal of change than the other cultures. Accordng to the lterature, ndvdualsm s nextrcably entwned wth the aspects regardng mmedacy and accessblty as well as the use of space. An extreme emphass on ownng space s based on ndvdualsm (Altman, 1975). People n ndvdualstc cultures are more dstant proxmally (Gudykunst and Matsumoto, 1996). Indvdualstc cultures emphasse prvacy needs that are sgnalled by closed doors n the Unted States, soundproofng, double doors n Germany (Hall, 1966), large doors n Norway, and trees along property lnes n England and Canada (Altman and Gauvan, 1981). All of the case studes show an emphass on prvacy (.e. the provson of prvate rooms, break out areas, hgh parttons) that mght have resulted from the ndvdualstc culture. The emphass on prvacy has both an effect on the choce of workplace concept and on employee apprasal of the work envronment: The open plan layout wth hgh parttons has resulted n the hgh dssatsfacton percentage regardng openness and transparency n the DAD case. The PTH employees consder prvacy to be an mportant aspect (mentoned by 33% and 41% n ther top three most mportant aspects, before and after the change) that reflects the ndvdualstc culture. The fndngs from the WSRL case show that the open plan layout whch had no parttons n the workplace, resulted n the hgh percentage of dssatsfed respondents regardng prvacy. 265 Cross-case analyss: fndngs and reflectons

264 The organsatons need to realse that the data on natonal culture can have an mpact on workplace change and the apprasal of change. The nterpretaton of the natonal culture data n connecton to workplace change and the apprasal of change should be taken nto consderaton along wth the other varables of the organsatonal contexts, ncludng organsaton (e.g. objectves, structure, work process) and workplace change (e.g. locaton, buldng grade, workplace concept). Organsatons wth a low uncertanty avodance are relatvely open to new ways of workng and wll adopt new spaces and processes sooner (Steelcase, 2009). In addton, there s a lnk to a more standardsed workplace desgn n a hghly uncertanty avodance socety (Kloet, 2007). The fndngs obtaned n all three cases show dfferent workplace concepts that can be explaned n connecton wth the uncertanty avodant dmenson: The typcal workplace desgn of the DAD case and the PTH case before the change has been nfluenced by the hgh uncertanty avodance. Both cases have a lower percentage of satsfed employees n number, dversty, and functonalty of spaces n comparson to the WSRL case. The nnovatve workplace desgn of the WSRL case that reflects the low uncertanty avodance culture has resulted n a hgh satsfacton percentage n functonalty and comfort workspaces and number, dversty, and functonalty of spaces. In ths research, the natonal culture survey (VSM94) has been appled n three case studes to measure f and how employees represent natonal culture characterstcs and to compare the overall pctures between cases and wth the natonal country ndexes from Hofstede (1997). Ths method s an attempt to quantfy natonal culture at a mcro-local level or to treat the mnscule local as beng representatve of the natonal (McSweeney, 2002). However, t turned out that the scores on the Hofstede dmensons n the local questonnares were qute dfferent from the natonal scores. Ths shows that fndngs from a natonal culture survey should not be consdered as beng representatve of natonal culture at organsatonal level. Local surveys are needed to get an dea of the mpact of cultural atttudes on change processes and apprasal of workplace change. The fndngs showed to be useful to ntatng a dalogue about smlartes and dssmlartes between the case studes regardng cultural dmensons and to explore ts mpact on drvers to change, change processes and apprasal of change. However, t also turned out that no domnant mpacts were found and connectons between natonal culture characterstcs and other varables n the conceptual model of the apprasal of workplace change were dffcult to trace. Furthermore the OCAI questonnare has been used to assess the ndvdual perceptons of actual and desred organsatonal culture of the three case organsatons. Assessng organsatonal culture means that the overarchng elements are the focus of measurement, and the organsaton level of analyss s the ntended target of assessment when usng the nstrument (OCAI; Cameron and Qunn, 2006). 266 Performance measurement of workplace change

265 However, the fndngs show no absolute domnance wth regard to the mpact of organsatonal culture on employees apprasals. In addton, the mpact of a subculture such as occupatonal culture was found n the PTH case as the requrement for specfc work settngs of the lghtng specalst. The cultural surveys usng OCAI and VSM94 provde a practcal way to measure organsatonal and natonal culture. Nevertheless, there are also other factors that have to be taken nto the consderaton such as a heterogeneous set of data that may nfluence the fndngs. The more n depth study of the dversty of subcultures of organsatons n dfferent contexts may mprove our understandng wth regard to the mpact of culture on workplace change and the apprasal of change. 267 Cross-case analyss: fndngs and reflectons

266 Part 3 Conclusons & recommendatons 268 Performance measurement of workplace change

267 269 Cross-case analyss: fndngs and reflectons