Workplace Strategy Mapping Momentum and Driving Success

a d v a n c e

uring the past several decades, forward-thinking real estate, human resources and IT professionals have explored innovative workplace concepts. These concepts, commonly bundled

under the term Workplace Strategy, tap into organizational owledge first Dand employee needs, and create an environment that supports and n N e w k

enables employees, improves space utilization and efficiency, and reflects • the organization’s brand values. Key to the ultimate success of the knowledge worker, Workplace Strategy is emerging as a global imperative for optimal employee productivity, satisfaction and retention. Moreover, it is

essential to overall portfolio and expense management. a d v a n c e The Language of Workplace Strategy

Workplace Strategy varies from one company to the next, On-Demand Space: The office environment is enabled but often includes some combination of the following: for the use of space. Workspaces are allocated on an as-needed basis, a reservation basis, or a mix of both. Flextime: Non-traditional work schedule. For example, an employer defines core work hours. The employee chooses Touchdown Spaces: Desks that are used on a first-come, an arrival and departure time, for a total of eight work hours first-served basis. per day, which must include core hours. Open-Plan Environments: Cube partitions may be reduced Telecommuting: Employees can work from anywhere or eliminated in favor of more open space supplemented using communication technologies. by quiet rooms, teaming areas and touchdown space.

Team-Based Environments: Teams have unassigned work areas that may include couches, tables and chairs, and huddle rooms.

To create a customized solution, each organization must con- Irreversible Impetus sider its own unique needs and challenges. Current Workplace Within the next two years, nearly every major company in Strategy programs often seek to increase the quantity and the world will have adopted some form of Workplace Strategy. quality of collaborative work settings and provide “on- This is largely due to powerful forces such as technology. demand” space such as reserved desks and touchdown spaces Technological advances have broken down the once rigid that are used on a first-come, first-served basis. A major boundaries of the conventional workplace and the traditional component of Workplace Strategy involves physical space and workday. Today, the technological impetus for Workplace its location. It also includes technology tools and human Strategy is universal and irreversible, and programs continue resources policies and programs, such as telecommuting and to gain traction globally. flextime, to better support how people actually work today. There is also a continuing shift toward collaborative work. The corporate real estate (CRE) professional plays a pivotal The typical knowledge worker’s output is increasingly depen- role in preparing the organization to develop, implement dent upon group activities and input. Gartner Dataquest sug- and support these changes to the work environment. gests that individual work has decreased from approximately In our earlier white paper, “Gaining Buy-In for Alternative 20 percent of all work today. This means that 80% of all work Workplace Strategies,” we examined the conceptual hurdles is collaborative, either virtual or face to face. Because involved in advocating and introducing innovative Workplace technology enables individual work to be completed from Strategy programs within an organization. To aid in the anywhere, the office is becoming a hub to accommodate this process of planning and implementation, this paper presents increasing collaboration. an analytic framework for defining best practices in executing Significant Value of Workplace Strategy Workplace Strategy. The global momentum of Workplace Strategy will also be examined through a discussion of work- Adoption of Workplace Strategy is embraced because of its place issues, market and economic drivers, and infrastructure compelling value proposition. Workplace Strategy brings and cultural forces that propel or inhibit adoption in specific value in a host of ways to different stakeholders as it corre- regions of the world. Finally, we review the world-class sponds to underlying behavioral, financial and competitive programs of several leading companies and define the critical forces. Well-designed solutions should enable the knowledge elements of their success. worker to elevate individual performance and job satisfaction while allowing the company to achieve overarching objectives which often include reduced costs and improved productivity. Measurable and predictable value is created in terms of an Human Human V technology. and facilities, and estate real capital, human proposition, value functions: enabling core four within success of components the gorized cate has LaSalle Lang Jones worldwide, programs evaluating and designing In Strategy. Workplace company’s a of ness effective the measuring for benchmarks as used be can tics characteris These programs. Strategy Workplace successful of characteristics the classify and identify now can We P yours? design you do How remains: question the program, well-designed a from expected be can outcomes beneficial other and these While herein. highlighted studies case the in demonstrated as processes, and profits people, organization’s improvedproductivity.and reducedcosts include often which objectives overarchingachieve companyto the allowing while satisfaction job and performance alue alue > > > > > > > ositioning for Success for ositioning Well-designed solutions should enable the knowledge worker to elevate individual individual elevate to worker knowledge the enable should Well-designed solutions E success program ensure to etiquette and tools T C functions) job eligible a in involved P managed and monitored understood, Metrics: stakeholder each for developed are messages appropriate that and value, the understands A documented and communicated clearly are objectives business that so strategy the of foundations A management process management change the facilitating and organization the throughout ity, satisfaction and loyalty and satisfaction ity, raining and policies: and raining mployee engagement: mployee articipation: ommunication program: ommunication wareness: wareness: lignment with business drivers: business with lignment P C roposition apital

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a d v a n c e • N e w k n owledge first

Fig. 1>> Regional Differences Adoption of Workplace Strategy varies by region and country according to infrastructures, efficiencies and cultural norms.

Early Adopters Rising Implementation Initial Stages > United States > Australia > China > Canada > Sweden > Taiwan > United Kingdom > The Netherlands > Indonesia > Singapore

The United Kingdom has been at the forefront of open-plan Initial Stages of Adoption work environments and higher space densities. In addition, In the European Union, Workplace Strategy programs present remote working has become more prevalent in recent years a cultural challenge in Italy, Germany and France, where due to increased broadband access in homes. hierarchy and tradition can preclude innovation with the work environment. Also, laws in countries such as Germany articu- Rising Implementation late certain office standards, which can limit implementation Australian organizations have adopted Workplace Strategy of Workplace Strategy concepts. programs because of their sophisticated infrastructure and cultural acceptance of non-traditional approaches to the Most of Latin America does not yet have the cost-effective workplace. There are also implementations of desk-sharing technology infrastructure to support efficient connectivity and structured work-from-home programs within certain outside the office environment. DSL, cable modem and employer groups, and part-time telecommuting is on the broadband connectivity are limited and costly. Culturally, rise. Among European countries, desk-sharing and telework- telecommuting is not yet accepted. However, as infrastructure ing are commonly accepted in Sweden and the Netherlands. expands and technology proliferates, attitudes toward Workplace Strategy are expected to improve dramatically. In Asia Pacific locations such as Singapore, unassigned, on- demand space is common for staff engaged in regular business Interest in Workplace Strategy is increasing in Asian locations travel. In addition, when the main occupant of a hard-walled such as China, Taiwan and Japan. However, even in these office is away, it is often open for use by other employees for countries, existing cultural and infrastructure hurdles must meetings or individual work requiring deep concentration. In be addressed. For example, home working is limited due to Asia, many companies have aggressive growth plans in place. small home sizes and extended families living together. In Key drivers for considering Workplace Strategy include gain- addition, adequate technology is not yet available in many ing additional flexibility, speed and future cost avoidance. locations to make remote working feasible. In locations such increasingly important role. With ongoing developments, developments, ongoing With role. important increasingly an play to continue will Strategy Workplace that clear is it country, and city by varies adoption of speed the Although preside. generations younger as horizon the on be may changes significant more And sharing. desk as such concepts embrace to beginning already are workforces mobile highly with Japan in companies some However, office. the in seen be to important is it chy,and hierar company reflect plans floor Japan, In Asia. in Strategy Workplace of rate adoption the influence also issues Cultural working. remote for impetus an eliminating thus short, be to tend times commute Also, valued. not is mobility Therefore, economy. and markets KongHong the on focus positions employee many because rapid as been not has adoption Kong, Hong as by incorporating the voice of the customer and the needs of management. of needs the and customer the of voice the incorporating by T F ig. 2>> ig. eople and People his process for constructing a constructing for process his K ey Building the the Building E nablers: nablers: D ata P rogram W orkplace orkplace 5 4 3 2 1 S trategy program helps to build the business case case business the build to helps program trategy improvement continuous for Monitor I D case business the Build E mplement ducate and assess and ducate esign the plan the esign

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a d v a n c e • N e w k n owledge first Step One: Educate and Assess The essential first stage of Step Five: Monitor for Continuous Improvement For a design is to set parameters by defining the business drivers, program to have longevity and integrity, it must be continu- identifying the needs and concerns of key stakeholders, and ally assessed via employee feedback and formal performance assessing the desire for change within the organization and metrics. Refinements are thus continuous, organic and its leadership. informed by real-world experience.

Step Two: Build the Business Case This is a critical stage Conclusion for testing the viability of program concepts and gaining Workplace Strategy offers proven benefits to both companies buy-in. Begin by establishing baseline measurements by and their individual employees. Many companies around the which success of the program will be tracked, and articulate globe, including those highlighted in this paper, are continu- program objectives. Then design and perform a pilot test to ously reviewing, expanding and improving their programs. validate assumptions. In assessing your own organization against the four functional Step Three: Design the Plan Seamless execution requires areas (value proposition, human capital, real estate and advanced planning and strategy. First, establish and train facilities, and technology) you may identify the strengths and an implementation team to manage information and execu- weaknesses of your existing program in order to tailor your tion. Next, integrate infrastructure components and develop efforts accordingly. a communication and change management program that As we continue to focus on the enablers and address the barri- will prime the workforce for acceptance. ers of Workplace Strategy in various regions, global adoption Step Four: Implement Successful implementation is based will continue to gain momentum. And as new breakthroughs on a consistent, well-formulated, centrally guided rollout in technology occur, Workplace Strategy will continue to process. Standardized tools, templates and approaches should evolve. Jones Lang LaSalle harnesses its global leadership be applied. Learning experiences should also be documented and experience in Workplace Strategy to guide clients in and shared. envisioning, initiating and expanding the new world of work.

Enablers of Success

Management’s acceptance Management styles that encourage autonomy, flexibility and virtual collaboration are well-suited and sponsorship to Workplace Strategy programs.

Non-space-related reward Allocating office space as a reward or indication of organizational status hinders successful and recognition systems implementation of workplace strategy programs. rewarding employees based on their output and “virtual presence” or availability—rather than face time—and by providing incentives that are non- space-related (e.g., bonuses or additional holidays), helps to enable workplace strategy. in addi-tion, mobility-enabling technology such as smart phones, tablets, laptops are increasingly seen as incentives.

Reliable infrastructure Voice technologies, cloud storage and reliable high-speed connectivity are the keystones to effective workplace strategy. the opportunity for workplace strategy to flourish will increase significantly as technology improves around the globe.

Strong sense of community Providing employees with social networks and connectivity is critical. It is important to understand that even the most mobile employees need a sense of “place” and belonging. The office is increasingly becoming the place where socializing and collaboration occur, so it is critical to create an office environment that fosters the development of relationships, trust, networking and a sense of community. I expense and distance D connectivity and E I R worker attraction/retention worker ncreased knowledge knowledge ncreased mproved strategic linkage strategic mproved O nhanced worker autonomy autonomy worker nhanced educed cost of office space office of cost educed ecreased commuting commuting ecreased utcomes print capability and follow-me phone capabilities. At the same same the At capabilities. phone follow-me and capability print global application, software hoteling global a of deployment employees, all nearly for enablement laptop including tools, costs. occupancy estate real total reduce to mix investment their modify to choices tegic stra made firm the and evolve, to continued program hoteling industry-leading an into technology and services space, of integration conscious a and thinking in shift strategic a represented program Accenture’s offices. empty from results that space dark the prevent to and consultants warrior road their for space manage to (hoteling) strategies U. mid-1980s, the as early As strategies. work alternative exploring of history mid-1990s. the in introduction its since Accenture’s T R A Best-in-Class—Technology WhatWorks: Collection Study Case A he Story he esults achieved over the past three years three past the over achieved esults > > > > ccenture to portfolio restructuring portfolio to T S of efficiency in improvement 18% 81% to 68% from increase utilization space Average 26% than more of reductions cost operating Net otal cash recovery of more than $350 million due due million $350 than more of recovery cash otal ervices staff ervices F lexible lexible

S W . locations were using “just in time” time” in “just using were locations . orkplace program has been evolving evolving been has program orkplace W orkplace orkplace T he savings funded mobility mobility funded savings he and competitive positioning while fostering greater innovation, creativity and collaboration. and creativity innovation, greater fostering while positioning competitive and strategies business support directly can environments work that recognizing are companies More T W work. they where and when balance. work-life improved and flexibility employees offering by talent” for “war the win well-positioned a that finding increasingly are Companies costs. occupancy estate real decreases significantly utilization space efficient More Because many can work from nearly anywhere, knowledge workers have more choice in how, how, in choice more have workers knowledge anywhere, nearly from work can many Because his is also seen as environmentally responsible, as automobile emissions are decreased. are emissions automobile as responsible, environmentally as seen also is his orkplace orkplace S trategy. trategy. F acilities & acilities T he firm has a 20-year 20-year a has firm he S trategy can counter the mounting costs and inefficiencies of personal transportation. transportation. personal of inefficiencies and costs mounting the counter can trategy T heir worldwide worldwide heir

- honoring location geographies and cultures, is a hallmark of of hallmark a is cultures, and geographies location honoring while strategies, people and technology with workplaces virtual and physical linking of strategy pioneering Accenture’s improved. consistently have ment engage and satisfaction employee Accenture’s time, same the At restructuring. portfolio to due million $350 than more of recovery cash enjoyed has Accenture and percent, 26 costs, but also increases productivity, collaboration and and collaboration productivity, increases also but costs, reduces only not elements these of integration successful the that found has Accenture delivery. and service on ences influ geographic respecting while style, work employee’s each of needs particular the meet to technology and vices & satisfaction. employee evolution. this through A workspace. high-performance providing portfolio priced right-sized/right- a ensure and changes, demographic and business styles, work emerging support to flexibility provide workforces, and businesses different Accenture’s of needs varied the to responds that portfolio differentiated targeted, needs. workforce and business varying their to specifically responded that program workplace the of reshaping further a allowed that model I employees. mobile highly their for support executive shared and services concierge support, travel services, office robust including model services high-touch a integrated Accenture time, n 2002, the firm introduced a new business and workforce workforce and business new a introduced firm the 2002, n W S ervices operating costs have been reduced by more that that more by reduced been have costs operating ervices orkplace Blueprint was developed to guide Accenture Accenture guide to developed was Blueprint orkplace T T O W he focus has since been to create a create to been since has focus he he Blueprint integrates space, ser space, integrates Blueprint he ver the past four years, years, four past the ver orkplace orkplace S trategy can help them them help can trategy F acilities acilities

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a d v a n c e • N e w k n owledge first their business success. The workplace model is a contribu- and technology trends. However, certain global requirements tor to employee engagement. The effectiveness of the firm’s must be met, such as flexibility in real estate and delivery workplace program is measured via a discrete set of metrics models, and use of global and regional standard tools and around utilization, employee satisfaction, cost and density. reporting systems. Providing differentiated solutions for its four different workforces supports optimal productivity and collaboration. The Next Step Accenture is in the process of modifying its operating model Space so the Workplace Blueprint will evolve as needed to remain The Accenture workplace includes a variety of space options relevant to the business. Accenture also wants to further to support different kinds of work. “Hubs” are Accenture’s evaluate the impact of changing workforce demographics client-facing offices used primarily for consulting and busi- on workplace strategy and delve more deeply into finding ness practice employees; “Delivery Centers” are strategically meaningful and objective ways to measure workplace effec- positioned, lower-cost facilities for technology development tiveness (i.e., productivity). Accenture’s goal is to remain a and outsourcing work; “Client Engagement Sites” support pioneer in the field of workplace strategy. work for specific client engagements and “Home Working” provides a workplace option to work away from the office. “We’ve standardized the concept globally, but implement in a way that makes sense for that Services business in that culture.” Accenture’s workplaces are supported with distinct service —Nancy Schnell, Manager of Global Portfolio models in direct response to the need for varied price points Planning and Reporting, Accenture for different businesses. Four delivery approaches meet the functional needs of the varied workforces and levels in the organization—high-touch support for specific needs; shared Best-in-Class—Value Proposition/Real Estate teams to leverage expertise and reduce delivery costs; call and Facilities centers to balance workload volumes and leverage expertise; and self enablement and e-support to provide lowest cost and Motorola immediate response. Results: Technology > Forecasted savings of more than $40 million annually As a technology company, Accenture focuses on existing in cost reduction and new cost avoidance and emerging technologies to influence their workplace > Enhanced employee performance and satisfaction strategy. To facilitate mobility, most employees have laptops, most offices provide follow-me phone capabilities, and new The Story locations are built on a global network platform leveraging Motorola’s Workplace Mobility program was first deployed voice-over IP technology offering wireless work environ- in Basingstoke, England in early 2005. Designed to accommo- ments. Work teams are often comprised of people spanning date headcount growth without additional occupancy the globe, so remote collaboration tools such as NetMeeting cost, Motorola used data from initial “dark space” studies and cost-effective telecommunications tools such as Skype and employee mobility levels to create a work environment are used regularly. Accenture’s hoteling program is supported suited to actual work styles. The first North American pilot by a web-based reservations tool that allows workers to was largely voluntary and extremely successful. Of 30,000 book space in advance anywhere in the world, as well as a employees eligible for the current program, 2,000 are cur- census tool that provides a daily view of utilization in most rently mobile, with 5,000 expected by the end of 2007. locations globally. For Motorola, the Workplace Mobility program focuses on opening space while simultaneously increasing efficiency. Geography and Culture The design uses open space planning, collaborative environ- The differentiated solutions found in the Blueprint not only ments, on-demand space and touchdown stations. Follow-me recognize the varying needs of their workforces and busi- call forwarding and/or phones programmed to ring at a speci- ness models, but also the unique implications of geographies fied number controlled via desktop have been implemented. and cultures in which they reside. The local response to the Focus rooms interspersed throughout the work space provide Blueprint may differ slightly based on geographic and cultural task-specific privacy. Soft seating areas and multi-sized differences and the rate of adoption of emerging workplace utilization, utilization, mid-2004. 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a d v a n c e • N e w k n owledge first For more information, please contact: Bernice Boucher | Head of Workplace Strategy, Americas Email: [email protected] Phone: +1 212 418 2619