Workplace Strategy Update and the Changing Nature of Work

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1 Workplace Strategy Update and the Changing Nature of Work Diane Coles, MCR Principal Workplace Management Solutions Pat Turnbull, IFMA Fellow, LEED AP, MA President & COO Kayhan International

2 Agenda Where We Were in : Changing the Conversation from Cost to Value CBRE Case Study Future View & Challenges

3 2012: Where We Were

4 Starting the Conversation: Using space to drive Strategy and Change in Workplaces

5 2012 Research uncovered 5 Key Business Drivers of Workplace Innovation Culture Conservation Competition Community

6 2014: The Changing Conversation from Co$t to Value

7 Show me the money! A few years ago, space was considered a business cost without direct impact on business strategy and goals. Today, space is seen as a strategic tool to drive performance and business results. 1 / 2 % Design 5% Facilities Average Cost of Building Operation 10% Technology 82% People 3% Operations & Maintenance BOSTI

8 2014: Changing the Workplace Conversation Key Trends: 1. Attract & Retain Talent 2. Employee Engagement 3. Enterprise Alignment 4. Workplace Planning 5. Enabling & Measuring Performance 6. Health & Wellness

9 Trend 1: The War for Talent Finding & keeping good people - recognize them early and often, explicitly linking their individual goals to corporate ones, and letting them help solve the company s biggest problems.

10 The War for Talent: Mobility Robert Half Survey 1400 CFO s 46% said tele-commuting is second only to salary as the best way to attract top talent 33% said tele-commuting was the top draw To win in the marketplace you must first win in the workplace. Doug Conant, CEO, Campbell Soup

11 War for Talent: Multi-Gen Workforce Millennials Towers Watson, 2010 study: Strategies for Growth, surveyed more than 700 Global companies to identify the 4 top C-suite workforce areas of concern as: 1. Loss of talent in key skills areas 2. Lack of succession planning/management 3. Inability to attract & retain talent 4. Low levels of employee engagement

12 The War for Talent: Experience Economy Products and goods that evoke emotion through experiences are perceived to have greater value. Sodexo 2014 Motorola Mobility - Google

13 Trend 2: Employee Engagement Engaged Employees are committed to the organization's goals & values, are motivated to contribute to organizational success, and are able to enhance their own sense of well-being. Gallup, 2013

14 Employee Engagement: Discretionary Effort = Productivity Booster Employees care about their work and their company. They don't work just for a paycheck and the next promotion. They work on behalf of the organization's goals and they use discretionary effort.

15 s Employee Engagement: Drives Better Business Outcomes Companies with engaged workers have 6% higher net profit margins (Towers Perrin). Companies with engaged workers have five times (5X) higher shareholder returns over five years (Kenexa).

16 Employee Engagement: Building Brand with a Higher Purpose CEO s are beginning to understand that the next generation of workers is demanding more than a paycheck they want a purpose. In order to attract and retain the best, most committed talent, employers had better demonstrate how they use business as a force for good, not just talk about it.

17 Trend 3: Enterprise Alignment The Super Nucleus The integration of people, place and technology, as the hub of a new business model, requires operational enablement. CRE & FM & FM Technology Strategy IT Workplace Strategy FM HR FINANCE Enabled Employee = Productive Workforce Other IT Corenet, The Leader

18 Enterprise Alignment: Strategy & Corporate Agility A Roadmap for Quick Expansion into New Territories Business Strategy Workforce Planning HR Workplace Strategy FM Marketing Sales Technology Strategy IT Operations The AWESOME project has fundamentally changed the way that SCAN looks at its business model Hank Osowski, SVP, Business Development

19 Challenge 4: Workforce Planning Enterprise Alignment: Space & Technology to enable a Distributed, and Mobile Workforce

20 Trend 4: Workforce Planning: Envisioning the Future Parsons (2010): Workforce planning is about determining the requirements of the future workforce and the resources needed to ensure that considerations are aligned with the strategic plan.

21 Workforce Planning: The Art of the Long View Most senior executive spend about 2.4% of management time building a corporate view of the future. Hamel & Prahalad, Competing for the Future

22 Workforce Planning: A New Focus am 20./21. November 2014 an der TU 22 Wien

23 Workforce Planning: Workforce Intelligence Attraction & Retention Workforce planning data Turnover rate Employee satisfaction Revision/return rate Remote worker request rate Reason for not accepting job offer Rideshare data Employee Engagement Employee engagement surveys Focus groups

24 Workforce Planning: Workforce Intelligence Space Utilization Studies Observational Surveys Self reported Focus groups Other Sources Meeting room data Security system data Food service data IT log in data Work on the Move Chapter 5 Implementing a Mobile Workplace Strategy Chris Hood & Marcus Bowen

25 Workforce Planning: Workforce Intelligence The Internet of Everything (impact on workplace analytics and the digital workplace) Sources for remote worker data information VPN login information Telecommunications system Smartphone use Sensors / GIS / RFIDs Wireless / VOIP IT Strategic Plan Upcoming infrastructure plans System enhancements IT Capital project planning

26 Trend 5: Enabling & Measuring Performance with an increasingly global, mobile and distributed workforce

27 Enabling & Measuring Performance CBRE Delos Living 10

28 Enabling & Measuring Performance To be or not to be... remote!

29 Enabling & Measuring Performance: 3rd Party Tools Measuring Employee Productivity

30 Trend 6: Health & Wellness Benefits reported by Building Owners on the Impact of Design + Construction Decisions on Occupant Health. HEALTHCARE COSTS More than 40% of owners report 1%-5% cost reduction OCCUPANT PRODUCTIVITY More than 25% of owners report 3% or more improvement EMPLOYEE SATISFACTION & ENGAGEMENT 66% of owners report improvement, (with 30% at a high level of improvement) ABSENTEEISM 30% of owners report cost reductions of varying ranges

31 Health & Wellness: Wellness Dial + Health Impact Support Relaxation and Increase Mental Acuity Improve Digestive Health Decrease Stress Enhance Thermal Comfort Joint Relief and Posture Support Maximize Overall Health Increase Energy through circadian lighting Reduce Eye Strain Improve Cardiac and Respiratory Health Strengthen Immune System Health Hydrate

32 Health & Wellness: Ergonomics in the workplace

33 Health & Wellness: Sit-to-Stand and treadmill desks Motorola Mobility

34 Health & Wellness: Walking Meetings

35 CBRE Case Study

36 CASE STUDY: CBRE WORKPLACE VISION Create a workplace that improves the quality of life for our employees and drives our business performance am 20./21. November 2014 CBRE an Delos der Living TU Wien 36

37 CBRE STARTING POINT UNDERUTILIZED SPACE NO ROOM FOR GROWTH DATED TECHNOLOGY NEEDED COLLABORATION OPPORTUNITY TO LEAD am 20./21. November 2014 CBRE an der Delos TU Living Wien 37

38 CBRE WORKPLACE VISION: (enterprise alignment) EFFECTIVENESS LEADERSHIP EXCITEMENT Collaboration Technology Productivity Lead by example Bold change High-risk, high-reward Create wow factor Disrupt the industry thinking Liberate our professionals am 20./21. November 2014 CBRE an Delos der Living TU Wien 38

39 CBRE - 51% AVERAGE, 72% PEAK UTILIZATION am 20./21. November 2014 CBRE an Delos der Living TU Wien 39

40 CBRE Created Opportunities to Connect CBRE WORKPLACESTRATEGY CBRE Delos Living 7 7

41 CBRE Variety 16 SPACES TO WORK 1. CLIENT CONFERENCE ROOM 2. TEAM HUDDLE ROOM 3. OPEN TEAM AREAS OFADS 5. NEIGHBORHOOD TOUCHDOWN SPACE 6. FOCUS ROOM 7. WORKSTATIONS TEAM TABLE 9. BANQUETTE & CAFE TABLE IN THE HEART 10. BAR SEATING IN THE HEART GARDEN AREA 12. OPEN MEDIA:SCAPE SPACE 13. LOUNGE SEATING IN THE HEART 14. PHONE BOOTHS RISE CAFE 16. TREADMILL WORKSTATION am 20./21. November 2014 CBRE an Delos der Living TU Wien 41

42 AIR Enhanced Air Filtration WATER Filtered Water Hydration Stations CBRE LA Office Wellness Features NOURISHMENT Nutrition Tips Nutritional Snacks LIGHT Circadian Lighting System FITNESS Inviting Stairs Lumbar Supporting Floor Core Treadmill Desks Stretch Area Kybun standing pad COMFORT Acoustic Damping Walls (throughout) Ergonomic Workstations (throughout) Photo catalytic Surfacing EMF Shielding MIND Window Planters Aromatherapy am 20./21. November 2014 CBRE an der Delos TU Living Wien 42

43 CBRE - World s First Well Certified Office HOLISTICALLY ADDRESSING THE HUMAN-ARCHITECTURE INTERFACE AIR WATER NOURISHMENT LIGHT FITNESS COMFORT MIND CBRE Delos Living 11

44 Innovation: INTRODUCING NEW IDEAS, DEVICES, and METHODS for WORKING CBRE Los Angeles OFFICE 100% Free Address 30% Less Space / $9MM Savings 97% Rate of Satisfaction 93% Rate of Performance Improvement Averaging over 500 visitors per month 2014 on pace to be best year ever WELL BEING STANDARD 1 st Commercial Office Space 75% Feel Healthier 40 Commercial Projects Underway (>5M RSF) Representing 5 Countries on 4 Continents 1,000 professionals attending Well 2014 Conference am 20./21. November 2014 CBRE an der Delos TU Living Wien 44

45 Future Views and Challenges

46 Future View & Challenges: How do we use Big Data in Workplace Strategy? Place: Smart Building Sensors, RFID CAFM, IWMS, CMMS BIM People: Workforce Data Space Utilization Productivity Issue: Cooperation / Coordination with multiple vendors

47 Future View & Challenges What information will help Inform Decision-Making? The dawn of Workplace Informatics: People Process Place Technology

48 Future View & Challenges Who will Manage, Analyze and Interpret the Data? The dawn of Workplace Intelligence : Workplace Technologist Data Visualizer Workforce Strategist Workforce Intelligence Officer Workplace Experience Officer

49 Future View & Challenges: Who will LEAD Workplace Strategy? FM? HR? IT? RE?

50 Resources:

51 Resources: Work on the Move Free e-copy for every attendee Courtesy of the IFMA Foundation:undation

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