University of Pennsylvania ScholarlyCommons Master of Science in Organizational Dynamics Theses Organizational Dynamics Programs 4-1-2012 The Office of theutur F e: A Case Study on Workplace Effectiveness in the Biopharmaceutical Industry Matthew Walls University of Pennsylvania, [email protected] Follow this and additional works at: https://repository.upenn.edu/od_theses_msod Walls, Matthew, "The Office of theutur F e: A Case Study on Workplace Effectiveness in the Biopharmaceutical Industry" (2012). Master of Science in Organizational Dynamics Theses. 57. https://repository.upenn.edu/od_theses_msod/57 Submitted to the Program of Organizational Dynamics in the Graduate Division of the School of Arts and Sciences in Partial Fulfillment of the Requirements for the Degree of Master of Science in Organizational Dynamics at the University of Pennsylvania Advisor: Ana Reyes This paper is posted at ScholarlyCommons. https://repository.upenn.edu/od_theses_msod/57 For more information, please contact [email protected]. The Office of theutur F e: A Case Study on Workplace Effectiveness in the Biopharmaceutical Industry Abstract Workplace strategies that incorporate office-of-the-future concepts enhance worker productivity and position organizations for radical changes to the ways work will be performed in the future. Due to the many challenges facing companies in the biopharmaceutical industry, many organizations now seek creative workplace improvements to support their continued success. As organizations assess how best to foster collaboration, knowledge sharing and productivity in the workplace, we are witnessing a seismic shift in this industry. A knowledge-based workforce, connected through globalization and empowered by technology, seeks optimal alignment in order to best maximize innovation. In this thesis, the contextual landscape of the biopharmaceutical industry is provided, the evolution of the workplace is examined, and a case of an office-of-the-future pilot program at a leading biopharmaceutical company is reported. Related elements, such as cost pressures, collaboration, organizational culture and environmental sustainability are interwoven into this paper to provide a multi-perspective analysis of the evolving ways in which work is performed. Companies who haven’t already adopted office-of-the-future concepts should soon examine their workplace strategy. Comments Submitted to the Program of Organizational Dynamics in the Graduate Division of the School of Arts and Sciences in Partial Fulfillment of the Requirements for the Degree of Master of Science in Organizational Dynamics at the University of Pennsylvania Advisor: Ana Reyes This thesis or dissertation is available at ScholarlyCommons: https://repository.upenn.edu/od_theses_msod/57 THE OFFICE OF THE FUTURE: A CASE STUDY ON WORKPLACE EFFECTIVENESS IN THE BIOPHARMACEUTICAL INDUSTRY By: Matthew P. Walls Submitted to the Program of Organizational Dynamics in the Graduate Division of the School of Arts and Sciences in Partial Fulfillment of the Requirements for the Degree of Master of Science in Organizational Dynamics at the University of Pennsylvania Philadelphia, Pennsylvania 2012 THE OFFICE OF THE FUTURE: A CASE STUDY ON WORKPLACE EFFECTIVENESS IN THE BIOPHARMACEUTICAL INDUSTRY Approved by: __________________________________________________ Ana Reyes, Ph.D., Advisor __________________________________________________ Larry Starr, Ph.D., Reader __________________________________________________ Chris Bennett, Ed.M., Reader ABSTRACT Workplace strategies that incorporate office-of-the-future concepts enhance worker productivity and position organizations for radical changes to the ways work will be performed in the future. Due to the many challenges facing companies in the biopharmaceutical industry, many organizations now seek creative workplace improvements to support their continued success. As organizations assess how best to foster collaboration, knowledge sharing and productivity in the workplace, we are witnessing a seismic shift in this industry. A knowledge- based workforce, connected through globalization and empowered by technology, seeks optimal alignment in order to best maximize innovation. In this thesis, the contextual landscape of the biopharmaceutical industry is provided, the evolution of the workplace is examined, and a case of an office-of-the-future pilot program at a leading biopharmaceutical company is reported. Related elements, such as cost pressures, collaboration, organizational culture and environmental sustainability are interwoven into this paper to provide a multi-perspective analysis of the evolving ways in which work is performed. Companies who haven‘t already adopted office-of-the-future concepts should soon examine their workplace strategy. iii ACKNOWLEDGMENTS Appreciation is extended to Dr. Ana Reyes, my capstone advisor, and Dr. Larry Starr and Mr. Chris Bennett, my capstone readers, for their interest, time and guidance during the preparation of this document. I would also like to thank the following people for supporting my efforts with sound mentorship throughout my tenure in the Organizational Dynamics (OD) program: Each of my OD professors, Bob and Bonnie Walls (my parents), Mr. Enrique Glotzer, Mr. Roberick Hendrick, Mr. Chris Stanchak (my Wharton cohort and free consultants), and my dear friends, Mr. Don Borleis and Mr. Samuel P. Cross. Finally, I would like to thank my wife, Amanda, for enduring many weekends alone as I traveled to class from Puerto Rico and California, for countless hours of meticulous proofreading and for unconditional encouragement. iv LIST OF TABLES TABLE Page 1 Healthcare Expenditure Forecast 5 2 Visioning from BioPharm Senior Leaders 36 3 Focus Group Comments 38 4 Post-Occupancy Survey 43 v LIST OF FIGURES FIGURE Page 1 Key Stakeholder Map 4 2 NCE Launches for 1998-2010 6 3 New Product Launch Revenues for 2003-2008 7 4 R&D Costs for 1975, 1987, 2000 and 2005 8 5 Drug Commercialization Timeline 8 6 Growth of Emerging Markets 9 7 Chapter Summary: Pressures for Change in Big Pharma 11 8 Virtual Collaboration Technology Images 20 9 Haworth‘s (2012) Four Types of Organizational Culture 23 10 U.S. Energy Consumption for 2009 27 11 Chapter Summary: Office-of-the-Future, Key Points in Time 29 12 Overview of Case Methodology 32 13 The Traditional Office at BioPharm 34 14 Space & Activity Analysis 37 15 Pilot Layout & Views 39 16 Work Mode Zones 40 17 Productivity Formulas 46 vi TABLE OF CONTENTS Page ABSTRACT iii ACKNOWLEDGEMENTS iv LIST OF TABLES v LIST OF FIGURES vi CHAPTER 1 Introduction 1 2 Biopharmaceutical Industry Context 4 3 Literature Review 12 Office of the Future: A Historical Timeline Workplace Effectiveness Organizational Culture Collaboration and Unified Communications Environmental Sustainability Summary 4 Office of the Future: A Case Study on Workplace Effectiveness 30 Case Organization Office-of-the-Future Concept Methodology Pilot Program Objectives Workplace Survey Phase Two: Design and Construction Post-Occupancy Survey Measuring Workplace Productivity Towards Modeling Total Value Creation Summary 5 Projecting the Future 49 REFERENCES 53 GLOSSARY 57 APPENDIX 58 vii 1 CHAPTER 1 INTRODUCTION Imagine a workplace where knowledge and information flow freely; where the physical space, technology and people converge in a fit-for-purpose manner offering the highest means of collaboration resulting in increased organizational success. These are some of the images and elements of the office of the future. Since the 1940s, the original office-of-the-future concept has increasingly emerged and, in 2012, presents a value proposition that I argue is compelling (Bush, 1945). This is a concept that has evolved since the 1960s that challenges the fabric of the United States, a once industrial- focused nation to one that has become increasingly information-focused. Economic and environmental pressures are addressed in this matured concept, and there are historical indications that lead me to believe that the current recession is a key contributor to the tipping point for the adoption of the twenty-first century office-of-the-future (see Toffler, 1990). Specific to the biopharmaceutical (Pharma) industry, many Big Pharma companies (e.g., those with annual revenue >$3 billion) have responded to the current business climate and recession by engaging in a variety of strategies aimed at optimizing future success. Examples of this are Amgen‘s (2011) Lab of the Future program, an initiative aimed to optimize productivity within their research laboratories, Pfizer‘s 2009 acquisition of Wyeth, a move aimed to expand pipeline (product portfolio), and GlaxoSmithKline‘s presence in China, an ‗emerging markets‘ strategy aimed to significantly reduce manufacturing costs (Sutton, 2011). Others such as Novartis and Johnson and Johnson have strategically diversified by opening business operations outside of the traditional pharmaceutical sector engaging in areas such as animal health, 2 consumer products, healthcare services and medical devices. These examples of business model adaptations address balance sheet pressures derived from regulatory and legal affairs, stagnant pipelines and delays in product commercialization. The biopharmaceutical industry is facing challenging times and I argue that companies that are able to foster a culture of collaboration and execute on a strategy that allows information to flow freely will be able to have long-term success. The office-of-the-future concept embraces these contributing