Re-Thinking Your Office Space to Support Your Business V.Nue White Paper

Vodafone Global Enterprise Re-thinking your office space to support your business v.nue White Paper

Company confidential – for internal use only Vodafone Global Enterprise 2

v.nue Whitepaper

Background Office space is often a business’s second largest cost after payroll, and is one area where companies can make substantial savings. By challenging the traditional criteria around spatial design and allocation, you can radically improve the value of your buildings for your business and create a workplace that supports your company’s culture and people.

By adopting this model, Vodafone New Zealand was able to: • Reduce facilities operating costs by around 25% • Reduce staff downtime by 6% • Accommodate 1,360 people in a space traditionally designed for 900, saving lease costs of $2.2m per annum and fit out costs of $11m • Align its property cycle (ordinarily 10-20 years) to its business cycle (less than 3 years), therefore aligning its facilities with ongoing developments in the workplace.

This whitepaper examines why other businesses may wish to consider rethinking their physical space and staff working styles within that space. It looks at hjow technology can be used as a key enabler to provide an environment that supports the way a business and its people want to work, and demonstrates how a business can save up to 25% of its building facilities costs (by reducing electricity, cleaning and rent) in the process. Vodafone Global Enterprise 3

Why should you think differently about your space? There are a number of compelling reasons why businesses should think about reviewing their work environment and using their space more effectively:

Maximising Office Utilisation Typically, office utilisation rarely exceeds 50%, because people are spending time away from the office, on annual leave or sick leave. The typical office density averages around 15-17 square meters per person, under utilisation means that there is a high percentage of wasted space, and wasted cost.

Reducing rental and other building costs Flexible working practices enable businesses to effectively manage resources and ensure that space is well used. Because staff can work seamlessly offsite, there isn’t the need to rent or buy space for every employee, making it easier to plan for, and accommodate growth. Vodafone has been able to accommodate 1,360 people in a space traditionally designed for 900. Unlike ‘hot desking’ each team has its own zone, which supports teamwork and collaboration. Working this way has saved the company an estimated $2.2M per annum in lease costs, and fit out costs of $11M.

Improving Workplace Flexibility As teams grow it can be logistically difficult and expensive to accommodate new staff members. The costs and time involved in moving desks, equipment and redesigning floor layout are significant. Flexible working practices allow teams to maintain their identity, providing space to grow naturally without having to move or fragment the team. They also enable staff to work flexibly and collaboratively in combinations that work for them at any particular point in time.

Meeting Corporate Social Responsibility Targets Sustainable business practices are growing in importance. By using material and systems that harness light and air from outside the building, companies can drastically reduce energy usage. Vodafone’s energy usage fell by 26% by adopting sustainable energy management and new technologies at Vodafone’s New Zealand office. Vodafone Global Enterprise 4

Technology as a key enabler of flexible working practices Technology is pivotal to the success of flexible working practices. It enables businesses to create greater freedom and to prevent people from being tied to their desks.

Technology has been integrated into everything Vodafone does

Over half of Vodafone’s staff use laptops to support their working styles A large number of Vodafone staff now have the ability to work where and when they want, enhancing their productivity and job satisfaction. An independent staff survey showed an 8% increase in meeting efficiency through the use of laptops.

The need for confidentiality has been addressed A mobility printing solution has been implemented, which stores print jobs on a server rather than sending to a specific printer. Staff swipe their access cards at any enabled printer, to print off their documents. The total number of printers required has been reduced from 200 in the old premises, down to 45. This has created a saving of approximately 75% in lease costs, support costs and consumables. As a bonus, waste paper form printing has been reduced by almost 60%.

The PABX (main phone) system was turned off Because employees are spending less time at their desks, Vodafone decided to replace desk phones with mobile phones. All staff members are given a mobile phone, and put on a commercial pricing plan, when they join the company. This enables them to work where they want and when they want. Vodafone has also switched from landline based faxing to electronic faxing, reducing infrastructure and support costs, and allowing staff to receive faxes wherever they are.

The secure wireless LAN network allows staff to choose where to work Staff can work on their laptops anywhere in the office, in the knowledge that the network connections are robust and secure. Electronic whiteboards can download content directly onto a laptop, saving time and paper.

Teleworking is supported by the technology and the culture Vodafone encourages staff to choose where they want to work. All staff have clear goals to drive delivery of the Vodafone strategic plan. The company has seen a 13% increase in team performance as a result of giving staff the tools to do their jobs in a flexible way. Vodafone Global Enterprise 5

The Flexible workplace in action The Vodafone New Zealand vision for v.nue was to create flexible and collaborative ways of working that would increase productivity and enable the business to quantify its proposition around leveraging mobility.

In addition to technology, two other main components were needed to make v.nue work:

i. Working styles ii. Work space

i. Working Styles V.nue caters for a range of work settings from the formal to the casual, from the personal to the collaborative. It provides staff with a sense of ownership of their space – something which ‘hot desking’ does not do.

Vodafone identified three main working styles – roamers, homers and zoners. Staff defined their own working style and had their equipment, technology tools, and physical space allocated accordingly.

Roamers spend most of their time out of the office – such as sales staff who are constantly moving around. They have laptops (enabled with 3G broadband and wireless LAN network access), and a number of smart devices to help them work offsite such as Blackberry’s and PDA’s. When in the building, they can work anywhere.

Homers are usually the people teams depend on for information or support – such as administration staff who spend a large part of their time at their desk. These users have an allocated desk and PC to work at every day and spend 70-80% of their time there. Approximately 60% of the Vodafone workforce are homers (traditional workers)

Zoners are staff whose location requirements change as their tasks change – such as senior executives who need to work cross-functionally. Zoners use laptops (with 3G broadband and wirless LAN network access). They don’t usually need to occupy the same desk every day, moving around the building to suit their needs as their involvement on projects or other business activities change.

Unlike roamers, zoners have a team area (called a home zone) where they can meet and work with their team, while still retaining the flexibility to work elsewhere as required. Vodafone Global Enterprise 6

ii. Workspace Vodafone workspace is about ensuring the entire Vodafone infrastructure (real estate, information technology, work practices, finance and corporate leadership) contributes towards the goal of increased productivity. Key features include: • A new filing system and consolidated on-line library service which has resulted in 50% less space needed for on-site storage. This system is over 40% more cost-effective. Vodafone enjoys even greater savings for off-site storage. • Desks and chairs can be raised or lowered easily – keyboard, mouse and laptop risers are available on every unallocated desk so that zoners and roamers can simply sit down with their laptop and work ergonomically. • Acoustics in the ceiling which have resulted in a 9% reduction in noise compared with Vodafone’s old premises. • Waste and recycling bins on every floor replace personal rubbish bins. This has resulted in significant labour and cost savings as 150 recycling bins are now emptied daily instead of 1,360 rubbish bins. • Over 270 Vodafone staff are entitled to a carparking space. Inorder to reduce lease costs the company decided to introduce valet parking. Valets park staff cars when they arrive and when staff wish to leave they send an email, text or turn up, and their cars are collected for them. The cost of the valets is more than offset by the $300,000 lease savings as a result of using the 196 spaces optimally. • Vodafone encourages staff to use alternative forms of transport to get to work, providing bike racks, motorbike and scooter parking, and even space to store kayaks! Vodafone Global Enterprise 7

v.nue – the results A business case was made for every aspect of v.nue. The benefits to the business are set out below:

Savings Area Savings Realised Fit out costs $11m saving from normal benchmark Lease costs $2.3M savings per annum Car parking $300K saving (leased costs) Building facilities costs 25% reduction Amount of office space required 25% reduction Energy consumption 26% reduction (kW/h per m2) Work area per person 10 m2 (a reduction of 40%) Filing 50% reduction in on-site filing space (leading to a 40% cost reduction) Printing and associated costs Approximately a 75% reduction in printer lease costs Facilities team 2 people and 1 support person for an office portfolio of 13 offices and over 2,000 people.

An independent survey of Vodafone staff conducted by Herman Miller showed that v.nue had achieved the following:

• 5% increase in face to face time • 6% increase in downtime • 8% increase in meeting efficiency • 18% increase in the availability of workspace • 14% increase in unplanned meeting space • 22% improvement in image of workplace.

Summary Flexible working practices offer businesses measurable benefits that cannot be ignored. In addition to enhancing productivity and staff satisfaction, many costs, traditionally viewed as fixed, can be substantially cut.

Whether you are thinking about refitting your existing premises, or moving to new ones, partnering with Vodafone will ensure that your business is able to service customers even better through flexible work practices that reduce downtime and increase teamwork and communication. www.vodafone.com/globalenterprise Vodafone Group 2009. This document is issued by Vodafone in confidence and is not to be reproduced in reproduced and is not to be in confidence Vodafone 2009. This document is issued by Group Vodafone are logos and the Vodafone Vodafone part or in whole without the prior written permission of Vodafone. be the may names mentioned herein and company Other product Group. of the Vodafone trademarks at time of in this publication is correct contained The information owners. of their respective trademarks be subject to change, and services be modified supplemented may may going to print. Such information of copies subject to terms and conditions, All services are without prior notice. Vodafone by or withdrawn be obtained on request. which may

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