Getting the best from public sector office accommodation: Case Studies

Transcription

1 Gettig the best from public sector office accommodatio: Case Studies A REPORT TO THE NATIONAL AUDIT OFFICE FROM CONCERTO CONSULTING JUNE 2006

2 The Natioal Audit Office scrutiises public spedig o behalf of Parliamet. The Comptroller ad Auditor Geeral, Sir Joh Bour, is a Officer of the House of Commos. He is the head of the Natioal Audit Office, which employs some 800 staff. He, ad the Natioal Audit Office, are totally idepedet of Govermet. He certifies the accouts of all Govermet departmets ad a wide rage of other public sector bodies; ad he has statutory authority to report to Parliamet o the ecoomy, efficiecy ad effectiveess with which departmets ad other bodies have used their resources. Our work saves the taxpayer millios of pouds every year. At least 8 for every 1 spet ruig the Office.

3 Gettig the best from public sector office accommodatio: Case Studies Case Studies of best practice i the maagemet of office space ad the use of Shared Service Cetres A REPORT TO THE NATIONAL AUDIT OFFICE FROM CONCERTO CONSULTING JUNE 2006

4 cotets Terms commoly used i this report 4 Itroductio 6 case study 1 Adult Learig Ispectorate 8 case study 2 BAA 11 case study 3 BP 14 case study 4 BT 17 The Natioal Audit Office team comprised Gwy Bassett, Keith Davis ad Hugh O Farrell. The Natioal Audit Office was supported by a team from Cocerto Cosultig. The Cocerto Cosultig team comprised Fred Guscott, Rob Harris, Tim Paley, Paul Stasall ad Matthew Symes. case study 5 Cambridgeshire Couty Coucil 20 case study 6 Departmet of Trade ad Idustry 23 For further iformatio about the Natioal Audit Office please cotact: Natioal Audit Office Press Office Buckigham Palace Road Victoria Lodo SW1W 9SP Tel: [email protected] Natioal Audit Office 2006

5 case study 7 Erst & Youg 26 case study 8 GCHQ 29 case study 9 Hertfordshire Couty Coucil 32 case study 10 IBM 35 case study 11 Norfolk Couty Coucil 38 case study 12 PricewaterhouseCoopers 41 case study 14 Su Microsystems 47 case study 15 Vodafoe 51 case study 16 TV Licesig Shared Service Cetre 54 case study 17 Trasport for Lodo Shared 58 Service Cetre case study 18 Xasa Shared Service Cetre 63 case study 13 Suffolk Couty Coucil 44 Cover photograph courtesy of Alamy.com

6 terms commoly used i this report terms commoly used i this report Break-out areas Campus Chur rate Cocierge service Core ad flexi space Cost per workstatio Flexible maaged office Hot desks or shared workstatios Hotel.Gov Net iteral area Occupacy level, occupacy desity Iformal meetig areas positioed to ecourage iteractio ad commuicatio betwee people. A group of buildigs built ear each other, ad their surroudig grouds, where a orgaisatio carries out its work. Measures of the amout of people moves over time. Oe hudred per cet aual chur meas that the equivalet of all staff move desk oce durig the year. A exteded receptio service that provides additioal fuctios icludig room ad desk bookig, busiess services ad persoal support services. Uder best practice estate maagemet priciples, orgaisatios idetify their core log term holdigs (ad drive commercial discouts accordigly) ad their requiremets for short term flexible space to maage peaks ad troughs i the busiess cycle. The total cost of occupatio divided by the umber of workstatios i the buildig. Total costs iclude ret, rates, ladlord s service charge, facilities services (icludig caterig, cleaig, maiteace, receptio, security, telecoms, utilities). Occupiers requiremets for space, icludig facilities maagemet, are provided uder a sigle short-term cotract ad uitary charge. Desks that are shared, that allow a orgaisatio to icrease the umber of people supported by a give buildig. A term coied by the Natioal Audit Office meaig a bespoke Flexible Maaged Office solutio tued to the govermet s eeds, which provides the flexibility to expad ad cotract at short otice, to offer temporary space for idividuals or project teams ad to act as swig space eablig Departmets to move whe required. The area of a buildig which is the gross area less commo areas, lifts, fire escape routes ad other ladlord areas. A efficiecy measure ormally expressed as persos or desks per square metre of et iteral area. Gettig the best from public sector office accommodatio: case studies

7 terms commoly used i this report Shared Service Cetre Swig space Touch-dow areas A Shared Service Cetre is a facility that performs admiistrative ad trasactioal fuctios for multiple divisios or subsidiaries of the same orgaisatio, rather tha havig those trasactios coducted i separate operatig areas. A term used i the property sector to describe space that is used o short-term basis to facilitate a relocatio project or programme. It is ofte used as a stagig post withi the overall migratio, allowig the permaet space to be refitted or made ready. Shared desks, but ulike hot desks (see above) these are ot bookable. It is therefore available to everyoe i a orgaisatio icludig visitors. Gettig the best from public sector office accommodatio: case studies

8 itroductio itroductio This volume of the report cotais 18 case studies from across the public ad private sectors 15 demostratig good practice i the use of real estate, three demostratig the property related beefits of movig to a Shared Service Cetre. The good practices idetified i the case studies cover a umber of approaches but they all demostrate the impact o helpig the orgaisatios ivolved i improvig their busiess efficiecy ad the quality of services they deliver to ed users. While the examples we give are specific, they highlight priciples ad practices with scope for wider applicability across the public sector. To help the reader avigate through this volume, Figure 1 sets out the good practices idetified i the first fiftee case studies, idicatig which oes feature specific examples either strogly or i part. Methodology We examied ad prepared 18 case studies. I each case, we requested a set of stadardised data from each of the case study orgaisatios ad visited the key sites to: walk through ad observe the space, techology ad workig practices; iterview the key staff resposible for maagig ad implemetig; ad aalyse additioal papers ad maagemet iformatio to evidece assertios about performace, ad cost savigs. Each of the case studies was agreed i detail with the subject orgaisatio prior to publicatio. 6 Gettig the best from public sector office accommodatio: case studies

9 itroductio 1 Navigatio overview of the 15 case studies o real estate best practice Case Studies examples Clear Chage Property Best practice Support for Office Evolutioary busiess maagemet people property workers services approach ageda approach techology plaig & away from solutios itegrated maagemet office Adult Learig Ispectorate BAA BP BT Cambridgeshire Couty Coucil Departmet of Trade & Idustry Erst & Youg GCHQ Hertfordshire Couty Coucil IBM Norfolk Couty Coucil PwC Suffolk Couty Coucil Su Microsystems Vodafoe Key: Strogest features Other good examples Supportig elemets/aspects Gettig the best from public sector office accommodatio: case studies

10 case study oe case study oe Adult Learig Ispectorate Itegratig the property strategy with IT ad HR policies, ecompassig ew workig practices, was a key factor i achievig the merger of two orgaisatios with highly mobile workforces. Gettig the best from public sector office accommodatio: case studies

11 case study oe Key lessos a ew HQ buildig, ad the opportuity take to reappraise the ways of workig across a busiess, ca support the successful merger of two orgaisatios; techology solutios, i cojuctio with a forwardthikig approach to space allocatio, ca create a step-chage i performace ad staff satisfactio; directors ad seior maagemet voluteerig to work i a ope pla space seds a powerful sigal to all staff about the culture chage ad ew ways of workig; ad it is worth goig back to basics ad assessig the core busiess processes of the orgaisatio, ad the establishig property, techology ad HR solutios that support those processes. The challege 1 The Traiig Stadards Coucil (Oxford) ad the Further Educatio Fudig Coucil (Covetry) merged i 2001 to form the Adult Learig Ispectorate (the Ispectorate). The Ispectorate ispects a wide rage of govermet-fuded learig i Eglad, icludig workbased learig for all people over 16 ad traiig fuded by Jobcetre Plus. Of the 282 employees, 137 are homebased ispectors with the remaider providig Natioal Admiistratio Cetre support such as Busiess Plaig ad Developmet, ad Facilities ad Fiace operatios. 2 Movig ito the ew Natioal Admiistratio Cetre at Sprig Place i Covetry provided seior maagemet with a uique opportuity to reassess workig practices, ad to alig its property strategy more closely with operatioal practices. The maagemet recogised from the outset that ot all employees required a dedicated desk: the ispectors who sped most of their time away from the office required o desk, but eed excellet support. The challege therefore was to fid accommodatio ad techology solutios to support a highly mobile ad distributed workforce with differet workig styles, while creatig a HQ hub eviromet to express the orgaisatio s culture ad provide support. The solutio 3 The Ispectorate provides ope pla workspace for those based permaetly i the ew buildig. Everyoe, icludig the directors, works at ope pla workstatios i a bright, covetioally laid out iterior. Large L-shaped desks with low height screes ad storage uits eable easy access to cetrally zoed meetig ad quiet workig rooms. Soft furishig i iformal meetig ad breakout spaces support coversatios that are more iformal. Whe ispectors visit the office, there are twelve hot desks available. The eviromet allows them to meet colleagues, collect traiig kits, use the traiig facilities, ad drop off documets. 4 Durig its first year, the Ispectorate worked i a cellular office buildig with log labyrithie corridors. The ew iterior layout required a sigificat chage of culture. Supportig its operatios with crucial eablig policies, the Ispectorate egieered a ew busiess culture with a ew approach to the office eviromet. For example: Key Statistics Move-i: 2002 Buildig: Total buildig area: 1,862m 2 User populatio: Workstatios: 151 Buildig desity: Footprit area: Desk allocatio: Awards: two-storey office buildig o a gree field site 282 (145 admiistratio plus 137 home-based ispectors) 12.3m 2 per workstatio c7m 2 per workstatio 51% of the staff at a 1:1 desk:staff ratio (admiistratio) ad 49% at 1:10 (ispectors) the BIFM Ivestor i Excellece Award for Best Practice i a fit-out project 2003 ; the ICT Best Workplace i Iformatio Techology award for 2005 Large meetig, coferece ad traiig rooms are booked through a cetrally admiistered bookig system. Archives are located off-site with a 24-hour retrieval service. All waste paper is recycled. Staff log o at ay desktop PC, givig freedom to choose where best to work, ad givig maagemet advatages i terms of re-shapig teams. Gettig the best from public sector office accommodatio: case studies

12 case study oe Ispectors have wireless eabled laptops ad mobile phoes. The buildig cotais cetral, well-plaed ad easily accessible resource areas with priters, fax, copyig ad scaig facilities. 5 Reiforcig the cultural chage was a radical approach to supportig those who spet much of their time workig from home. I short, the ispector workig from home experieces a high level of support ad back up, aimig to mirror the services delivered i the office. For example: the Ispectorate provides office equipmet, icludig PC, laptop, priter, fax ad mobile phoe, ad ispectors receive a home office furiture allowace of 700; Ispectorate statioery is available ad ordered o-lie with delivery of all surface mail via Sprig Place; cotracts exist with local couriers to collect ad deliver large volumes of documets aroud the UK quickly; ad a car fleet is maitaied for use by ispectors, but alteratively each ispector ca opt for a mothly car allowace of 408. Achievemets 6 The Ispectorate met its challege of supportig a highly mobile ad distributed workforce, while creatig a hub eviromet with excellet support. Busiess beefits iclude: utilisatio, or buildig occupacy, icreased from 50% to 90%; aual occupacy costs at 521m 2 ad 6,413 per workstatio; average desity per workstatio (12.3m 2 ) which ow compares well with best practice; ad a MORI Staff Opiio Survey i 2004 reported a 90 per cet staff satisfactio rate o resources ad facilities, with positive effects o productivity. 10 Gettig the best from public sector office accommodatio: case studies

13 case study two case study two BAA The progressive ad carefully maaged implemetatio of flexible workig led to a halvig i office accommodatio, to higher staff satisfactio ad icreased productivity. Gettig the best from public sector office accommodatio: case studies 11

14 case study two Key lessos that it is possible to achieve major busiess beefits, i this case halvig property costs ad improvig staff satisfactio, by adoptig a policy of gradual, cotiuig evolutio rather tha a Big Bag approach; that busiess priorities ca chage, ad the project eeds to evolve ad respod accordigly; ad to maximise the beefits ad success of workplace chage programmes, it is vital that Property, IT ad HR policies are aliged, ad to have the highest levels of maagemet support ad sposorship. The challege 1 BAA is a airport compay that ows ad operates seve airports i the UK. BAA also has maagemet or retail cotracts ad stakes i airports i locatios aroud the world. 2 I 1994, as part of a wider busiess chage programme focusig o cost reductios, BAA examied how it might make better use of its office accommodatio which at the time comprised three buildigs at Heathrow Poit Busiess Park. The eed to reduce accommodatio overheads drove BAA to cosolidate ito just two buildigs: Poit West ad Poit East. Followig this success, however, BAA wished to go eve further i reducig office costs ad icreasig flexibility. The challege was to cosolidate ito Poit West by replacig the me ad my desk culture with a ew approach based o ope pla, o desk sharig, ad o movig people s mids rather tha walls. The solutio 3 I 1999, BAA ra a demostratio project to covert 929m 2 of Poit West ito a ope pla space. The Uity Pilot was highly successful, yieldig sigificat beefits i space ad cost savigs as well as icreased user satisfactio. However, the evets of 9/11 relegated the accommodatio strategy dow the list of busiess priorities, delayig the plaed roll out strategy. Istead of carryig out a rapid, high profile exercise to itroduce the ew ways of workig, developmets i workspace plaig, furishig, ICT ad flexible workig cotiued whe opportuities arose ad whe the busiess case justified them. Thus, BAA adopted a gradual, evolutioary approach to chagig its culture through more flexible use of office accommodatio. The steps icluded: Key Statistics Pilot project: 1999 Buildig: Total buildig area: 4,333m 2 User populatio: 540 Workstatios: 459 Buildig desity: Desk allocatio: early 1990s speculative office buildig 9.4m 2 per workstatio 10% staff at 1:1 at a desk: staff ratio ad 90% staff at a ratio of 1:1.2 voluteers leadig by example ad givig up their sigle offices; as opportuities arose, covertig team areas to ope pla; Property ad HR leadig by example i breakig the me ad my desk culture by workig from ay desk i their area; ad ecouragig fully flexible workig (i other words workig from ay locatio) through combied policy support from Property, IT ad HR. 12 Gettig the best from public sector office accommodatio: case studies

15 case study two 4 The ew approach to flexible workig required ew policies ad the support of seior maagemet, ad demaded iovatio i the traditioal techology support offered to staff (Figure 2). 5 Maagemet of the office space became more itesive recogisig the ature of a more fluid work eviromet. For example, flexible workig requires careful maagemet of paper storage. At BAA, regular storage audits keep the volumes of stored paper to miimal levels through archivig ad group filig, ad limitig persoal shelf space to oe liear metre per flexible worker. A key aspect to the chage maagemet process was to fid ways of givig back to the users while reducig the overall space eed; the users were highly ivolved i this process. The improvemets give back i this way icluded services such as café-style break out areas, pick up ad drop off dry cleaig, electroic shoppig, ad free massages; a office maager/cocierge role to provide excellet customer service, but also carryig a elemet of eforcemet; ad traiig ad support, icludig traiig mauals, booklets, ad itraet iformatio, as well as floorwalkers who moitor ad assist durig the trasitio phases. 2 Techology: New policies ad iovatios required to support the ew approach cordless DECT phoes to eable calls to be take aywhere; providig log o aywhere capability via the WebTop facility; replacig PCs with thi cliet devices ad access to the cetral server; ratioalisig the umerous software packages i use to a agreed miimum; replacig covetioal priters with multi-fuctio devices; ad home workig policies, supported by broadbad or wireless techologies. Approaches to the use of office space: a variety of work settigs based aroud dedicated, touch dow ad drop i uses; floor layouts with a variety of furishigs usig smaller ad more diverse desks; meetig ad quiet work rooms clustered o the perimeter with exteral views; ad low screes dividig workstatios, platers, artwork, digitally projected graphics, soft furishig, bright breakout areas ad backlit aquaria addig focal poits ad iterest. Achievemets 6 A post-occupacy survey of the pilot i 2002 compared accommodatio ad services before ad after the move. The improvemets, measured o a scale of 1-5, were as follows: Accommodatio ad services Improvemet ratig Clealiess +0.4 Ambiece +0.5 Meetig rooms +0.3 Furiture +0.7 Iteractio with departmet colleagues +0.4 Iformal meetigs +0.7 Presece of a flexible workig culture +0.3 Right image to visitors ad customers +0.7 Overall a good workig eviromet The Poit West project brought sigificat wider busiess beefits icludig: a doublig i the occupacy of Poit West; property cost savigs of 1.3millio per aum by vacatig Poit East; reducig chur costs by 80%; ad icreasig staff satisfactio ad perceived improvemets to productivity. Gettig the best from public sector office accommodatio: case studies 13

16 case study three case study three BP A well plaed ad well timed move out of Lodo to a campus eviromet, graspig the opportuities recogised by a forward thikig maagemet team ad supported by the latest techology, ca deliver impressive operatig cost savigs, ehaced busiess performace, ad better support cotiuig persoal career opportuities. Key lessos major cost savigs ad performace improvemets are possible whe HR policies alig with accommodatio ad techology solutios; campus solutios offer ecoomies of scale, better or more comprehesive facilities ad create busiess flexibility; ad over time, property portfolios ca become out of lie with a orgaisatio s operatig requiremet. Moder techology solutios, coupled with ew ways of workig ad flexible accommodatio solutios ca lead to a step chage i performace. Key Statistics Buildig: Total buildig area: 41,209m 2 User populatio: 4,445 Workstatios: Buildig desity: Desk allocatio: campus site with seve buildigs occupied ad plaig permissio for ie 3,699 desks plus 100 touch dow 11.4m 2 per workstatio average 1:1.24 per perso 14 Gettig the best from public sector office accommodatio: case studies

17 case study three The challege 1 BP occupied 12 buildigs i Lodo ad the South East. May were separated by sigificat distaces, actig as a major deterret to movig staff to differet posts withi the busiess. The dispersed ature of the busiess resulted i iefficiet commuicatios ad busiess operatios, ad worked agaist the achievemet of a commo culture ad sese of purpose. I short, the compay s accommodatio arragemet had become a busiess costrait. The solutio 2 I 2003, BP s Board decided to cosolidate the property portfolio from 12 to five locatios with a strog focus o oe site i particular, at Subury (Figure 3). The heart of the operatioal busiess would cosolidate at its Subury site i outer west Lodo, housig Exploratio ad Productio Research; Refiig ad Marketig; Gas Reewables Supply ad Tradig. This would leave a small cetral Lodo HQ; a City-facig tradig orgaisatio i Caary Wharf, ad two customer-facig operatios i Hemel Hempstead ad Milto Keyes. BP had owed ad occupied Subury for may years as a corporate research cetre, but with oly acillary office cotet. 3 The ew strategy required the redevelopmet of the Subury site, ito a campus of seve purpose-built office buildigs. These have their ow services ad dedicated parkig to meet importat commercial criteria. Cosistet with commercial objectives ad allowig the compay future flexibility, a family of fit-out desigs gives each buildig some idividual idetity, whilst low-key bradig ad sigage keep the overall image relatively cosistet. 4 Support from a fully itegrated wireless etwork eables staff to work almost aywhere withi the campus. Busiess uits ca ow expad or shrik with ease, ad project teams ca form ad disbad rapidly i respose to busiess demad. The scale of the campus gives the user populatio great flexibility i choosig where to work, ad i absorbig local peak demads for space. The wireless eviromet ad most staff usig cordless phoes, ecourage mobile staff to hot desk rather tha settlig ito the same workstatio each time they arrive at the office. Most staff use laptop computers, eablig them to work from home ad from ay locatio o the campus. The site-based staff ad the large umbers of daily visitors all maage to fid space to work withi this self-regulatig system. 5 HR policies played a key role i itroducig the ew work style. Nie-day fortights, home workig, ad flexihours reflect the 24x7 ature of the busiess, ad help smooth out the peaks ad troughs i the daily demad for desk space. Betwee 50 to 60 per cet of staff work from home at least oe day a week. A further 5 to 10 per cet sped more tha 20% of their workig i this way. The flexible workig also eases the peak flows of traffic oto ad off the site. 6 The user populatio of 4,445 is supported by 3,600 desks ad 100 touchdow statios. Busiess uits decide locally how best to orgaise ad allocate desks. Typically, the desk allocatio rages from 1:1 for admiistrative staff to 1:1.2. I some highly mobile areas the ratio rises to 1: For all but a hadful of Group Vice Presidets ad legal staff (whose offices are available for meetigs whe uoccupied), everyoe works i a ope pla layout. The high level of visibility across floors, with low-height privacy screes betwee desks, ecourages commuicatio. Desks are a uiform wave shape complete with computer scree ad keyboard, ready for laptop use. 8 Employees use top-up smart cards i the shop, the subsidised restaurat, take away sadwich bar ad coffee shop. A ATM, Occupatioal Health office, detist ad a dry cleaig service are viable operatios give the scale of the campus, ad help to attract ad retai staff. Free vedig areas located o every floor ecourage staff to mix ad iteract. 9 The maagemet of facilities for meetig, storage, documet maagemet ad waste disposal all help to create a pleasat ad efficiet work eviromet. Gettig the best from public sector office accommodatio: case studies 15

18 case study three 3 BP s Subury campus before ad after redevelopmet Large meetig rooms are booked through a cetralised o-lie system; smaller rooms give priority to local staff o each floor or withi each buildig ad are booked usig separate software. Each floor features well-furished, iformal meetig areas ad touchdow workstatios. I additio: Each busiess group uses electroic, high-desity filig systems. I areas where there is a regime of desk sharig idividual storage is restricted to mobile trolleys with o persoal storage allowed uder desks. Small baks of floor-etworked machies maage pritig ad copyig, with a average of oe machie per 30 persos. Racks placed earby provide hady chargig for cordless phoes. There are cetral poits o each floor for hardcopy mail delivery. Persoal waste bis at each desk o loger exist, with oly floor recyclig bis provided. This cuts the cleaig costs sigificatly, ad ecourages recyclig. Achievemets 11 Cosolidatio at Subury has delivered major occupacy beefits to BP. Space use o the campus is highly efficiet, averagig 11.4m 2 per workstatio, ad occupacy costs compare well with best practice at 5,174 per perso, ad 6,389 per workstatio. These figures have resulted i: reductios i property operatig costs of aroud 35 per cet (some 23 millio per aum); savigs i occupacy costs of up to 15k per perso per year; a halvig i the average cost per workstatio; chur costs fallig from 1,500 per move to approximately 300. The flexibility of the campus has also demostrated the beefits of scale i absorbig growth. For example, betwee 2003 ad 2005, while the umber of workstatios grew from 2,800 to 3,600, the cost per workstatio fell by just uder a third. 12 I additio to the hard cost beefits, BP reports: ehaced commuicatio ad collaboratio; icreased team performace; flexibility for project-based teams ad work; icreased career mobility; ad icreased staff retetio. 16 Gettig the best from public sector office accommodatio: case studies

19 case study four case study four BT A large busiess trasformatio project spaig several years, ivolvig dramatic reductios i space ad property costs, while at the same time itroducig radically ew workig patters, accommodatio solutios ad techology support. Key lessos a compay-wide plaig approach releases major savigs; a headquarters buildig is a dyamic eviromet, ad eeds to house may thousads of visitors o a highly trasiet basis. The balace of permaet desk space ad flexible desk space eeds to be kept costatly uder review; ad major savigs are oly possible if techology solutios alig ad support the ew huma resources policies ad tie i properly to wellmaaged estates solutios. Key Statistics Buildig: multi-storey office, built i the early 1980s, ad recetly refurbished Total buildig area: c26,500m 2 User populatio: Workstatios: 1,800 Buildig desity: Desk allocatio: 1,500 plus c2,500 daily visitors 14.7m 2 per workstatio 1,500 at 1:1,300 flexi desks ad touchdow workspaces Gettig the best from public sector office accommodatio: case studies 17

20 case study four The challege 1 Privatisatio i 1984 gave BT the opportuity ad the stimulus to repositio its busiess i a icreasigly competitive global market. BT s strategy was to reduce the cost base ad improve its service delivery by chagig its workig practices, staffig levels, use of eablig techology ad accommodatio solutios. The most recet major chage maagemet programme, Workabout, started i This icluded about 6,000 people optig to give up permaet office space, optig istead for mobile workig ad workig from home. The aims of Workabout were: to reduce property overhead costs further; to improve productivity; ad to help retai ad motivate valuable people. 2 This case study, based o the BT Cetre i Newgate Street Lodo, illustrates the scale of the chages i the accommodatio solutio, made i tadem with sigificat HR ad techology chages. The solutio 3 The BT Cetre i the City of Lodo is BT s headquarters. It supports thousads of visitors each week, ad has a auditorium, coferece rooms ad traiig facilities. Product ad techology demostratio evets take place regularly. As such, the buildig essetially has two fuctios: to support the HQ maagemet, ad provide a major customer iterface. Betwee 1997 ad 1999 BT refurbished the BT Cetre, to exploit the latest applicatios i iformatio ad commuicatios techology, make better use of space, ad eable flexible ways of workig. 4 Some 1,800 workstatios are provided i the buildig. Of these, 1,500 provide moder dedicated workstatios. The other 300, combiig flexi desks ad touchdow poits, support some 2,500 staff ad visitors o a casual basis, providig vital flexibility for people visitig the HQ buildig. The average daily occupacy levels are 60% at the dedicated desks ad 85% for the flexi ad touchdow workstatios. BT will shortly adjust the allocatios i favour of more flexi ad touchdow desks. A wireless LAN throughout BT Cetre ad VoIP givig call-routig flexibility, eable people to work at ay locatio i the buildig. 5 Web bookig systems eable people to reserve a flexi desk, or ay of the 110 small- to medium-sized meetig rooms. However, 40% of the booked meetig rooms remai uused. BT plas to improve usage through a icetive scheme ad by providig a few stadby rooms which do ot eed bookig. Busiess uits ow the larger meetig rooms. 6 Workabout staff are supported by a Help Desk, accessed either via the web or by phoe. They receive a full IT ad furiture solutio to equip a home office, ad full access rights to all BT s buildigs ad facilities. The furiture ad IT solutio varies i value betwee 800 ad 2,500 depedig o the type of home workig selected. I additio to the Help Desk there is also a cocierge service withi the buildig. This icludes supervisig all pritig ad photocopyig. 7 BT is ow further icreasig operatioal flexibility. Project Ramp will itroduce thi cliet devices, flat screes ad a mai server termial at each desk. Employees will access iformatio very quickly usig ew persoal idetificatio software. Ramp replaces desk top computers, thereby itroducig sigificat space savigs, reduced maiteace ad capital costs ad reduced heat gai. The devices also icrease comfort levels ad further ehace flexible workig practices. 18 Gettig the best from public sector office accommodatio: case studies

21 case study four Achievemets 8 The success of BT s flexible workig strategy is clear. I space terms aloe, the iitiative has resulted i savigs of aroud 50%. The Workabout programme has eabled BT to reduce its Lodo office portfolio from 76 to eight buildigs i 10 years; eablig aual savigs i Lodo occupacy costs of some 70 millio. 9 Despite the fact that BT Cetre has a large umber of space-hugry uses icludig coferece ad product demostratio rooms, the ew flexible workig practices produce average desities that that are higher the the atioal average. Each workstatio has a area of 14.7m 2. The total occupacy cost of each workstatio is 12,500, which is slightly above best practice, but explaied by the large amout of space dedicated to coferece ad demostratio rooms. 10 I additio to savigs these chages have impacted positively o staff. A questioaire survey of 195 of BT s Workabout employees foud that: 65 per cet reported a good work-life balace; just over three quarters reported that workig hours had icreased; 65 per cet reported reduced work stress; 69 per cet reported higher productivity; ad Workabout has led to estimated aual commutig cost savigs of approximately 1,000 per perso. 11 The refurbished BT Cetre makes much better use of space, ad raises the brad image. The flexible workig practices, supported by eablig techology, provide further capacity to accommodate busiess growth. Gettig the best from public sector office accommodatio: case studies 19

22 case study five case study five Cambridgeshire Couty Coucil Illustratig how improved service to the public ca be achieved through itegratig a ew property strategy with ew workig practices. 20 Gettig the best from public sector office accommodatio: case studies

23 case study five Key lessos a properly costructed accommodatio strategy ca eable a deep-seated ad fudametal chage i a orgaisatio s performace; for such a chage to succeed, the HR ad ICT policies have to alig, ad the seior maagemet has to work together from the outset to make the chage happe; itegrated workig across differet support services eables departmets to beefit from the cetral provisio of similar or commo support services; ad the importace of excellet FM services i supportig staff workig i a more flexible, mobile way. The challege 1 The restructurig of the coucil from five Directorates to three i 2004 highlighted the eed to deliver moder, flexible buildigs from which the coucil ad co-located parter orgaisatios could provide effective customer-focused frot lie services. 2 The key challege was to chage the modus operadi of the coucil from supportig cetralised workig out of Cambridge to oe i which the coucil provided multi-discipliary support services from a etwork of 32 coutywide offices. The solutio 3 The coucil developed a office replacemet programme that ot oly provided a opportuity to challege how space was utilised, but how Facilities Maagemet supported occupiers. Hereward Hall was the first project delivered uder this programme. Sice the a joit services buildig has bee delivered i the ew settlemet of Camboure ad a 4.5m replacemet office developmet commeced o site i Hutigdo i Followig the restructurig of the coucil durig a further 14 local area offices are plaed to deliver improved frot lie services throughout Cambridgeshire. Work is curretly uderway to idetify suitable sites. The replacemet of usuitable office accommodatio with ew flexible accommodatio is key to supportig staff based throughout the couty. The portfolio of 32 coutywide offices, which will icrease to 50 providig both back office support ad local frot-lie services, is supported by three core buildigs: Hereward Hall i March is a ew bespoke buildig, servig the orth of the couty. It is the base for Childre ad Youg People Services, Highways, Couty Caterig ad the local PCT; Sackville House i Camboure serves the west of the couty providig multi-service support combiig a library, GP, Primary Care Trust, local police ad mobile workers from Couty Tradig Stadards; ad Speke House i St Ives is the Coucil s first dedicated telephoe Cotact Cetre, offerig customers exteded access to a rage of coucil services. A secod Cotact Cetre at Amudse House wet live i Completed i 2003, Hereward Hall supports a miimum of 112 people. The buildig s iteral cofiguratio optimises frot-lie service delivery by better supportig the differet eeds of its users. These iclude: Key Statistics Move-i: 2003 Buildig: Total buildig area: 1,185m 2 User populatio: Buildig desity: ew two-storey office buildig o gree field site 112 Couty ad PCT users 10.5m 2 per workstatio Desk allocatio: 53% at 1:1 ad 47% at 1:1.2 staff with dedicated workstatios; fieldworkers based at Hereward Hall ad sharig workstatios; ad peripatetic staff based elsewhere ad accessig touchdow workstatios. Gettig the best from public sector office accommodatio: case studies 21

24 case study five 6 With the exceptio of two maagers retaiig small offices for highly cofidetial work, everyoe ow works i a ope pla eviromet. 70 per cet of buildig users are field workers, eablig the coucil to achieve a desk to people ratio of 8:10. Social Services, Highways ad Caterig teams use combiatios of dedicated ad shared workstatios, workig i ope pla areas with lowheight furiture screes to improve operatioal visibility. Tea ad coffee makig facilities ad a luch break room ecourage iter-departmet commuicatio. 7 A touchdow suite opes betwee ad each day to support mobile staff based at other buildigs. Persoal smart cards provide tailored roamig rights withi the buildig. A specially secured etrace maages out-of-hours access to the buildig. Further iovatios for improvig staff productivity, work-life balace ad security are uderway ad iclude: persoal smart cards eable simple, obureaucratic buildig access maagemet (a pilot study is lookig at extedig the cards applicatio to vedig ad car parkig); rovig profiles support mobile workig; itegrated HR ad ICT policies, with supportig ifrastructure, eable staff to work from home at the discretio of sectio maagers (NETILLA, a coucil coectio for broadbad services, is a cetrally provided support service); specially furished, private rooms improve the service to the public; a web based room bookig system eablig better use of shared resources; a pilot study o electroic data maagemet systems is uderway, with the aim of cuttig paper waste ad further improvig efficiecy; cliet files ormally archived for up to 70 years ow are stored off site supported by a cotracted out ext day delivery service; ew etworked, multi-fuctio machies reduce the eed for local priters ad copiers, savig equipmet costs ad reducig floor space demad; ad use of video-coferecig to sigificatly reduce the six millio miles travelled by the coucil each year. Achievemets 8 The coucil has improved its level of services to the public, by accommodatig its employees ad supportig parter orgaisatios through a itegrated ad coheret estate strategy. The project, as exemplified by movig ito Hereward Hall, has delivered ew corporate stadards for services ad accommodatio icludig: corporate support for frot-lie services through mobile, decetralisatio workig; a ew customer-cetric service ethos throughout; a more secure ad resiliet work eviromet; ad greater staff satisfactio (ad productivity) through improved accommodatio ad support from the cetralised FM service. 22 Gettig the best from public sector office accommodatio: case studies

25 case study six case study six Departmet of Trade ad Idustry A example of a Govermet Departmet turig the problem of a ufuded retal cost rise ito a opportuity to deliver much wider busiess performace improvemet. Gettig the best from public sector office accommodatio: case studies 23

26 case study six Key lessos it took a potetially severe retal icrease to force maagemet to thik outside the box ad develop a much improved way of ruig their busiess. All departmets should thik i this way, challegig the status quo ad accepted practice; ad desk-sharig ad o-territorial behaviours ca lead to major cost savigs ad improve busiess performace. To break the me ad my desk culture, the chage has to be led by example from the very top. The challege 1 I 2004 the Departmet of Trade ad Idustry (DTI) faced a substatial icrease i ret ad rates at its cetral Lodo offices, for which o further fudig was available. Facig the eed to make sigificat cost savigs, the DTI developed a real estate strategy that required substatial culture chage. Chagig the way the DTI operated by movig from Directorate or silo based workig to more project ad team orgaised workig was a essetial busiess driver. 2 I 2004 the DTI occupied eight buildigs, providig aroud 5,000 workstatios. The DTI s strategy ivolved reducig the umber of buildigs from eight to just three: its HQ at 1 Victoria Street, part of 151 Buckigham Palace Road ad Kigsgate House. The plaed payback period for the whole project is five years. The associated busiess case is uderpied by a survey showig that occupacy levels rarely reached 60 per cet, defiig the scale of the cost savig opportuity. 3 While supportig the efficiecy-led strategy, the DTI s Board also saw the opportuity to use the project to deliver a chage maagemet programme across the whole orgaisatio. The Departmet s work was becomig more fluid ad project-cetric, ad the Board wated to move towards team-based practices supported by a project culture. This meat developig a more customer-focused culture, ad chagig the traditioal orgaisatioal silos patter of workig. 4 The Programme Board icluded a mix of Director Geerals ad Seior Civil Servats from across the departmet, ad it took resposibility for deliverig the busiess beefits such as the reduced costs ad improved ways of workig from the chage programme. To achieve efficiecies i accommodatio use ad busiess workig methods, team-based desk sharig withi flexible ope pla office space took cetre stage. This required a fudametal chage to workig culture by: Key Statistics Move-i: 2005 Buildig: Total buildig area: c30,000m 2 Usable floor area: c20,000m 2 Workstatios: Desk allocatio: 8:10 refurbished 1960s multi-storey office block 2,000 desks plus 70 hot desks breakig the relatioship betwee me ad my desk ; ad creatig relatioships betwee me ad my team ad me ad my outcome. 24 Gettig the best from public sector office accommodatio: case studies

27 case study six The solutio 5 Phase Oe of the chage programme was completed i 2005 ad ivolved 1 Victoria Street. 6 Practical aspects of the project iclude: with very limited exceptios, persoal assistats, secretaries ad people with special eeds are the oly staff with the choice to use a dedicated desk. All other staff ow share space i their team areas; busiess teams have eight desks per te staff withi their villages ad uit maagers decide how best to work this arragemet i practice; low height screes betwee desks provide log views across floors ad eable better commuicatio withi teams; quiet rooms support the team villages, together with touch dow workstatios ad iformal soft seatig areas; a PC-based meetig room bookig system with obookable flexi spaces for quiet workig ad touch dow. Director Geerals have their ow meetig rooms that ca also be used by others ad booked via persoal assistats; ICT service areas o each floor provide cetralised high-speed pritig, scaig, photocopyig, fax facilities, ad statioery ad post poits. Removig 450 local priters from the workig areas saved cost ad improved productivity; mobility ad flexibility was made possible by a ICT etwork ad telephoy that allowed staff to work from ay desk i the buildig; ad pooled laptops made available to staff to support remote workig. 7 The DTI plas to move from a uiform allocatio of eight desks per 10 people towards a allocatio based o actual desk usage, the evidece for which will come from ICT auditig of computer use. Achievemets 8 The project s mai achievemets have bee: a reductio of over 30 per cet i the space occupied i Lodo, icreasig the buildig s capacity from 1,680 to 2,400 people; takig the opportuity of a accommodatio project to drive i a deeper-seated culture chage, covicig seior maagers to ow ad take resposibility for the chage maagemet programme from its iceptio leadig to a step chage i trasformig a traditioal silo based Civil Service work culture ito oe of team-based flexible workig; ad layig the groudwork for the DTI to move towards more home workig ad improvig work life balace of its staff. 9 Staff report that the opeess of the floors is a improvemet to commuicatio i terms of a reductio of barriers with colleagues that used to be there i the previous locatio. Gettig the best from public sector office accommodatio: case studies 25

28 case study seve case study seve Erst & Youg LLP Property ratioalisatio ad relocatio ca be used as the eabler of a busiess trasformatio, but requires a strog visio, seior maagemet ivolvemet ad clear busiess ad techical targets. 26 Gettig the best from public sector office accommodatio: case studies

29 case study seve Key lessos ope pla workstatios for everyoe, high-desity floors ad bookable workstatios ad meetig rooms, supported with wireless workig ad matchig HR policies, ca trasform a busiess s operatio, eve where cliet cofidetiality is importat; ad strog visio from seior maagemet uderpied by clear busiess ad techical targets with early collaboratio betwee the Accommodatio, IT ad HR teams is eeded to deliver a programme of moderisatio withi a large orgaisatio. The challege 1 Recogisig the growig mismatch betwee its out-dated ad dispersed real estate ad its future busiess visio, Erst &Youg s maagemet decided to moderise the firm s workig methods ad accommodatio. With busiess processes icreasigly based o team workig the dispersed property portfolio with its cellular space impeded performace: a ew workplace to eable the trasformatio of the busiess was required. The solutio 2 Erst ad Youg cosolidated its busiess ito two buildigs, oe beig a ew buildig, More Lodo Place, ext to Tower Bridge. Completed i December 2003, the eleve-storey office buildig provides 35,700m 2 of space, with floor plates of 1,625m 2 to 1,811m 2. Its acquisitio allowed EY to reduce its portfolio of Lodo buildigs from ie to two, ad the floor area from 100,000m 2 to 53,000m 2, while accommodatig the same umber of employees. EY retaied Beckett House, ear Waterloo as a support buildig. 3 A hot desk system maximises the use of the space, recogisig that may cosultats ad audit staff work i other locatios, either with cliets or from home. They ca book desks up to 10 days i advace, for a maximum of 10 days cotiual use. The ratio of people to desks is 3:1. Other HQ-based staff have dedicated desks that, alog with the hot desks, are laid out i ecoomic footprits of just 5.7m 2 each. 4 The ew desk-sharig arragemets, combied with effective techology support ad home workig creates flexibility for the firm to accommodate may more fee-earig employees per uit of floor area tha before. The large floor plates of provide high visibility betwee employees, eablig good commuicatio. Ope pla workstatios fitted with low furiture screes accommodate teams of four, six ad eight people. New iformatio techology ow meas: Key Statistics Move-i: September to December 2003 Buildig: Total buildig area: 37,800m 2 User populatio: 4,200 Workstatios: Buildig desity: Average workstatio: 5.7m 2 eleve storeys (ie workig floors) with two itercoected wigs 3,164 icludig permaet ad bookable `hotel 11.3m per workstatio Desk allocatio: 65% staff at 1:1 ad 35% staff at 1:3 over 80 per cet of staff use laptops, with wireless workig provided greater busiess ad persoal flexibility i the orgaisatio of work; local busiess uit maagers ca decide whether work should take place with the cliet, i the office or from home; ad VoIP throughout the firm provided the potetial to make large savigs o the costs of telephoy. Gettig the best from public sector office accommodatio: case studies 27

30 case study seve 5 Reported by staff to work brilliatly overall the buildig provides high quality staff ad cliet facilities. Cliets get a better braded experiece tha before with the top floor of each wig give over to coferece ad meetig facilities. The buildig makes a strog impact with views across the Thames ad the City. Facilities ad services that lower costs ad help staff to work efficietly iclude: accessible meetig ad quiet workig rooms; bookable ad o-bookable meetig ad quiet workig rooms with glazed partitios; cetralised etworked priters ad copiers with a capacity of 45 copies per miute, oe located more tha 7m from a workstatio; high soudproofig specificatios, importat for cliet cofidetiality, which provide a 38dB reductio betwee meetig rooms ad 45dB reductio o cliet floors; ad shelvig is some distace away from workstatios to discourage local estig by occupiers. Hot desk users have oe liear metre of storage each. Those with permaet desks have three liear metres each. 6 To improve efficiet workig throughout the buildig office machies are located such that multi-fuctio sca, prit ad copy machies are provided at 1 per 50 staff, ad higher capacity office service cetres, located i the two buildig wigs, provide capacities of 65 copies per miute. The firm expects to reduce its aual pritig costs by at least 35 per cet by itroducig a policy of double-sided pritig. The curret demad is 55 millio black ad white copies ad 6 millio colour copies per aum. Achievemets 7 EY s busiess trasformatio through its property ratioalisatio has bee very successful amogst staff, brigig with it sigificat busiess beefits, icludig: a halvig i floor area while accommodatig the same umber of staff; spaceless growth - hot desk arragemets allow the busiess to grow further without the eed for additioal space; a overall buildig desity of 11.3m 2 per workstatio; ad a electroic desk bookig system that helps to eve out peaks ad troughs i the demad for space. 28 Gettig the best from public sector office accommodatio: case studies

31 case study eight case study eight GCHQ The use of good practice project maagemet to achieve whole-busiess chage, icludig a ew approach to workplace plaig, while satisfyig strict security demads. Gettig the best from public sector office accommodatio: case studies 29

32 case study eight Key lessos eve orgaisatios with the strictest security requiremets ca work i ope pla offices, ca adopt desk-sharig policies that save space ad ca support mobile workig away from the office; staff ivolvemet from the outset is paramout, helpig shape ad ow the solutio; ad desk-sharig is ot oly more efficiet i terms of occupacy desities, it supports spaceless growth. The challege 1 Sice 1952 GCHQ was based at Chelteham, occupyig fifty separate buildigs o two sites: Behall ad Oakley. By the mid-1990s, the buildigs required substatial ivestmet to meet future busiess eeds. Operatioal pressures required greater flexibility i the use of space ad the re-egieerig of busiess processes for chagig requiremets i a post Cold War world. Chages to govermet policy also preseted ew challeges to procuremet, resource accoutig ad the eviromet. The solutio 2 I 2000, Miisters approved the costructio of a ew Private Fiace Iitiative (PFI) buildig at Behall. At over 1.5 billio for the 30 year life of the cotract icludig provisio of FM services, the deal was oe of the largest of its kid. The New Accommodatio Programme (NAP) was set up to maage the project, which icluded: costructio of a ew headquarters buildig; movig over 4,000 staff ad maitaiig busiess cotiuity; the largest IT relocatio i Europe; chages to behaviour ad processes; ad itroducig ew ways of workig ad ew busiess beefits. Key Statistics Move-i: 2003 Buildig: Total buildig area: 59,000m 2 User populatio: 4,900 Workstatios: Buildig desity: Desk allocatio: average 1:1.15 Awards: Behall is a ew multi-storey; doughut-shaped, high security buildig 4,089 desks plus 60 touch dow 14.4m 2 per workstatio; 12.0m 2 per perso Public Private Fiace Project of the Year, 2000; British Costructio Idustry Judge s Special Award, 2004; British Coucil for Offices, Buildig of the Year 2004; ad Associatio for Commuter Trasport, Highly Commeded for Gree Travel Policy Ivestigatios ito the optimum shape ad layout of the ew buildig resulted i a doughut desig, with a ladscaped garde at its cetre servig as a retreat for staff. The distictive shape of the buildig had advatages i terms of cost effectiveess, site efficiecy, a stroger sese of commuity ad higher security. Its thermal performace will save 40 per cet i eergy costs whe compared with a more covetioal structure. Everyoe ow works at a ope pla desk, ad with fewer desks tha the total user populatio, each busiess uit ow makes its ow arragemets to desk share. 4 Desks are booked electroically i icremets of half-days. To fid out where spare desks are available for ayoe without a allocatio, busiess uits swap bookig iformatio. Simple desk desig supports desk sharig ad helps maitai operatioal flexibility. 30 Gettig the best from public sector office accommodatio: case studies

33 case study eight 5 The telephoy system ad IT system allow staff to log o wherever they wish so that small fluctuatios i team size ad locatio require little effort. Priters ad copiers are clustered at a ratio of 1:30 staff. Because most material is classified, hardcopy is disposed of followig shreddig ad caot be recycled. For this purpose, classified waste bis are at special poits o each floor. No-classified waste is recycled. Meetig rooms are booked via the outsourced Customer Service Cetre with small rooms available for persoal iterviews ad makig cofidetial calls. 6 Outsourced FM services as part of the PFI cotract esure that room bookig, visitor receptio, security, mail ad courier, cleaig, telephoe ad caterig meet ew Service Level Agreemets. GCHQ supports home workig, but security costraits limit the type of work udertake at home. Ameity space aroud the buildig icludes vedig machies providig ormal ad after hours refreshmet. At the iteral street level, luches ad sacks from the staff restaurat ad Deli complimet other staff facilities such as two small shops, dry cleaig ad a well-beig cetre. Achievemets 8 The NAP Programme at Behall has produced may otable achievemets icludig: the buildig has bee able to accommodate a sigificat icrease i staff through a umber of measures, icludig the itroductio of approximately 15% desksharig; everyoe ow works i a secure ope pla work eviromet; desk sharig policies (at a ratio of 1:1.15) have eabled spaceless growth although this may ow be reachig a limit; secure systems allow staff to work almost at ay desk, reducig the cost of chur ad creatig greater flexibility i cofigurig workig teams whilst allowig diversity; ad thermal performace of the buildig should save 40 per cet i eergy costs whe compared with a more covetioal structure. 7 A iteral project team was formed early i the Programme to actively egage all stakeholders i the physical ad behavioural chages proposed by the NAP. With commuicatios at the top of the ageda the NAP team set aside time to udertake wide cosultatio. Successful mechaisms that helped to commuicate the programme visio icluded: a busiess chage etwork with major busiess uit chage coordiators cosulted with staff o requiremets; a itraet site with a guide to the ew buildig ad a o-goig forum for FAQs; liks with exteral commuity to keep residets iformed; special evets with visits to the buildig ad a office mock-up o site; ad a family day whe 12,000 people atteded a ope day at the ew buildig. As a result, staff accepted NAP as their programme ad problems dealt with at source meat they had little time to escalate ito serious issues. Gettig the best from public sector office accommodatio: case studies 31

34 case study ie case study ie Hertfordshire Couty Coucil Havig had oe project fail, a orgaisatio ca lear from the experiece ad the carry out a full chage maagemet programme by aligig its busiess, property, ICT ad HR goals. Hertfordshire Couty Coucil achieved their busiess trasformatio i a traditioal couty-hall-style buildig 32 Gettig the best from public sector office accommodatio: case studies

35 case study ie Key lessos how to recover from a disruptive false start, ad the move forward with a well-plaed busiess chage programme desiged to reduce costs, improve staff retetio, ad improve customer service; fully committed leadership, i this case political leadership comig from the leader ad deputy leader of the coucil, while at board level the CEO ows the project ad leads the steerig group; appoitmet of a dedicated project director reportig directly to the CEO ad steerig group; ad full aligmet ad support betwee busiess, ICT, property ad HR seior maagemet from the outset, with active maagemet providig the glue holdig all three together. The challege 1 Hertfordshire Couty Coucil s 1997 Workwise project aimed to implemet flexible workig, put the customer first ad improve access to services. The objective was to achieve 30 per cet space savigs across the the 55 office sites through the sale of a umber of properties. Doig othig o a life cycle costig appraisal over 25 years shows a cost icrease of 200 per cet. However, the project stalled because of: a lack of owership ad support at Board level ad poor take up by the services; isufficiet resources; a perceptio that it was about space ratioalisatio, ot orgaisatioal chage; ad ot eough itegrated ICT ad facilities maagemet support. 2 The coucil therefore had to cotiue operatig from its disparate estate eve though it full recogised the eed to embark o a major busiess chage programme, drive by the eed to recruit ad retai the best staff, to break silo workig patters, to improve frot-lie services ad to miimise the future cost of its accommodatio. May of the buildigs were small office uits, ad costly to maitai. Moreover, people were dispersed thily over a wide geographic area, reducig the productivity of the service uits ad replicatig commo services. 3 I February 2005 after three years of assessmet ad case studies, the coucil decided to embark o a radial chage programme called The Way We Work ivolvig a more cocetrated accommodatio solutio i three mai locatios; less silo workig, ad more virtual workig. The solutio 4 The coucil is applyig the cocept of a virtual office rather tha a cetralised or decetralised policy to its workig arragemets. The project aims to provide the correct eviromet ad equipmet to allow work to be doe as close as possible to the poit of service delivery, either i a formal office settig or a satellite locatio owed by either the coucil or a parter orgaisatio. 5 The Way We Work will reduce the coucil s 51 offices to just three. By 2008 the coucil s 4,500 staff will operate from: Couty Hall (refurbished by 2008); Key Statistics Move-i: 2006 Buildig: Total Buildig area: 10,220m 2 User populatio: 1,000 Workstatios: 770 Buildig desity: Desk allocatio: Apsley Buildigs 1 ad 2, refurbished leasehold premises o a busiess park 13.3m 2 per perso, or 10.2m 2 per perso team based desk sharig at c1:1.3, with the optio of icreasig to 1:1.17 a ew West Area office at Apsley, ear Hemel Hempstead (opeig i 2006); ad a ew East Area office i the A1/M1 corridor (opeig i 2007). 6 Cosolidatig ito three locatios ad itroducig ew ways of workig will reduce the coucil s space by at least a fifth ad eable more efficiet ad better-itegrated frot-lie services. Busiess teams will get better quality workspace, combiig team based desk sharig, home workig ad moder touchdow workspace. Gettig the best from public sector office accommodatio: case studies 33

36 case study ie Implemetatio 7 Two leased buildigs at the Apsley busiess park will brig together aroud 1,000 people. Buildig 1 at Apsley will brig the staff of ie dispersed offices together. By the summer of 2006 some 10,220m 2 of ewly refurbished office space will provide a variety of workspaces desiged to better support flexible team based workig. The average space allocatio will be 10.2m 2 per perso compared with 12.5m 2 each i the existig office sites. Physically, the buildigs will have the followig features: moder more welcomig frot-of-house receptio ad cocierge service; iteret café style touchdow work settigs to support peripatetic staff; team based workig i a ope pla arragemet; team based desk sharig at a average of at least 1:1.3; quiet workig ad meetig rooms booked via the web; kitche ad café facilities to ecourage iteractio betwee staff ad teams; prit ad storage zoes betwee team spaces to keep workig areas tidy; ad ICT ad systems to support ew flexible ways of workig with ratioalised software to support more itegrated workig. Achievemets 9 The Way We Work project is movig forward as plaed, with full egagemet of the maagemet ad staff. 10 The major achievemet has bee to recover from the first stalled project, lear the lessos, ad move forwards agai i the light of that experiece. The coucil is o the poit of realisig the first phase of the project, ad is cofidet that it will ow succeed i achievig productivity gais; stadardisatio of accommodatio ad ICT; a ope pla eviromet with better commuicatios; a 20 per cet reductio i space demad; better work-life balace opportuities through flexible workig; higher staff recruitmet ad retetio; improved workig eviromet, reducig sickess ad icreasig motivatio; ad better customer satisfactio. 8 A coutywide staff survey asked staff what their key issues were, with 38 per cet citig poor office accommodatio ad services. User represetatives cotributed their views to the project delivery team, achievig early employee buy-i to The Way We Work programme. To maitai buy-i ad to maximise successful delivery the project maagemet team comprises eight key persoel represetig: fit-out, property, resources, HR, ICT, legal, commuicatios ad busiess cotiuity resposibilities ad each reports directly to a Project Director. 34 Gettig the best from public sector office accommodatio: case studies

37 case study te case study te IBM Showig a busiess achievig improved operatig efficiecy by extedig its flexible workig arragemets supported by itegrated space maagemet, techology ad HR strategies. Key lessos oce a orgaisatio has itroduced a flexible workig scheme, it is relatively simple to refie ad hoe the process, brigig improved operatioal beefits ad further cost savigs; ad the key to success is fully itegrated accommodatio, techology ad HR policies ad implemetatio processes. Key Statistics Move-i: May 2005 Buildig: Total buildig area: 15,525m 2 User populatio: 1,473 Workstatios: 765 refurbished three-storey buildig arraged aroud a cetral atrium Ope pla desity: 5.1m 2 per workstatio Desk allocatio: 62% at 1:1 ad 38% at 1:3.4 Gettig the best from public sector office accommodatio: case studies 35

38 case study te The challege 1 I 2004, IBM assessed its real estate eeds at Bedfot Lakes, ear Heathrow, ad decided to cosolidate its four premises to optimise operatig efficiecy ad beefit from the associated cost savigs. IBM sought to exted its practice of flexible workig through its braded e-place cocept, which was a prove cocept already kow to improve the work of etworked teams. The challege was: to reduce office space; to realise potetial real estate cost savigs; to improve its brad presece ad cliet experiece. The solutio 2 Pre-move utilisatio studies of buildig occupacy rates drove IBM s busiess case havig show low utilisatio of the space: sigle offices occupacy at 41 per cet; shared offices occupacy at 50 per cet; ad ope pla occupacy of 40 per cet. 3 The project took oly a few moths to implemet, as the basic ifrastructure was already i place ad the cocepts of hot deskig ad desk sharig were already part of the culture. IBM took advatage of this space plaig experiece to hoe ad improve workig styles ad the techology support. The project started i November 2004 ad cocluded i Jue 2005 with little busiess disruptio. The space plaig strategy icluded: reducig the umber of sigle offices rooms from 110 to just six; removig all 47 iflexible shared offices; reducig the umber of ope pla workstatios dow from 961 to 759; reducig the average workstatio area dow from 6.1m 2 to 5.1m 2 ; ad allocatig over 60 per cet of the ope pla desks to flexible workig at a ratio of 1: Buildig 2 cotais IBM s marketig suite, demostratio space, ad auditorium. It is desiged ad fitted out to showcase the IBM busiess brad. A groud floor atrium provides efficiet ad attractive space for visitor receptio, diig, breakout, meetig, product demostratios, ad workig. Poster sites promote IBM products ad services all aroud the buildig. Glazed partitios, high levels of daylight ad low height furiture screes eable high visibility across floors ad busy staff ca readily see each other. I order to keep the busiess workig flexibly teams occupy ope pla areas that have o physical barriers to act as boudaries ad so allow log-term occupatioal flexibility. 5 IBM supported its people i makig the chage to the ew workig eviromet through: the creatio of a based meetig ad coferece room bookig system; the appoitmet of a umber of e-place coordiators to esure the maximum efficiecy of the space ad supportig resources; telephoy support for equiries, from e-place co-ordiators; support from a walk-up receptio based o the first floor dealig with equiries; persoal storage, o a ratioed basis, followig the emptyig of all cabiets before the move; ad a ew post-at-home scheme to provide support for peripatetic staff. 6 The e-place coordiators are resposible for esurig that people do ot customise or create ests at flexible desks, that all power ad data poits are fuctioal, that all statioary stock poits are fully repleished, ad that all o-show meetig ad coferece rooms are retured withi prescribed time limits to the bookig system for rebookig. Their close cotact with the workspace also delivers beefits i terms of uderstadig the demad for space i relatio to both time ad busiess uit. This allowed IBM to support the same umber of its employees as before but ow cosolidated ito two buildigs, from four, ad with improved adjacecies for its busiess operatios. 36 Gettig the best from public sector office accommodatio: case studies

39 case study te 7 To help support busy staff ad to beefit busiess productivity IBM itroduced: wider use of e-place techology to eable easy switchig betwee workplaces via etheret or wireless; widespread use of laptops ad cordless phoes; VoIP for high use telephoy due to be delivered withi a two year time frame; etworked multi-fuctio devices for prit, fax, sca ad o each floor; ad accessible meetig ad quiet workig space cetrally booked via the service desk. 8 To help maage occupacy peaks, most sales staff ow work o site oly o Fridays. This creates a small operatioal costrait, which was ot a issue oce the patter became established. Decisios about whe staff should work at home are at the discretio of the idividual ad busiess uit maagers. Flexible workig methods will eable IBM to absorb additioal future demad for space. For example, a recetly acquired busiess will also fit withi the existig office space. Achievemets 9 The mai achievemets of the project iclude: space savigs of 26 per cet, while supportig the same umber of employees; real estate cost savigs of c20 per cet; spaceless growth by absorbig future busiess growth withi existig space; ad sharig of resources ad savig o space, maiteace ad eergy costs. Gettig the best from public sector office accommodatio: case studies 37

40 case study eleve case study eleve Norfolk Couty Coucil Illustratig how a public body ca itroduce flexible workig ad chages to its maagemet culture through pilotig ew stadards of accommodatio ad services, leadig to improvemets i service delivery ad value for moey. 38 Gettig the best from public sector office accommodatio: case studies

41 case study eleve Key lessos a orgaisatio ca use a simple, modest pilot study featurig a ew accommodatio strategy to itroduce flexible workig, to chage its maagemet culture, ad to improve service delivery ad value for moey; the itroductio of flexible workig practices is as much a people chagig exercise as a property chagig exercise; ad good support services are as importat as the physical work eviromet. The challege 1 I 2003 Norfolk Couty Coucil recogised that its cellular accommodatio was a barrier to commuicatio ad effective team workig; further, that it was missig opportuities to achieve ecoomies of scale by sharig space with other public service providers. It decided to adopt a more decetralised property arragemet, to improve both the quality of its services ad the value for moey delivered to the commuity. The solutio 2 The coucil is ow chagig the use of its accommodatio to: support better itegrated ad flexible ope pla workig; ad operate from five multi-agecy area offices across the couty the first will ope i Great Yarmouth i 2007 with the Couty Coucil actig as ladlord ad sharig space with the PCT ad other third party public services. 3 A pilot project i 2004 eabled the coucil to test the approach, ad to gai useful feedback for ew projects. The coucil ra the pilot project i Couty Hall, a 1960s multi-storey office buildig, housig 1,800 coucil staff, with log space-wastig corridors ad cellular offices. Oe floor was remodelled ito a ope pla layout, with modular workstatios. 4 The pilot project experimeted with a umber of approaches to workplace plaig. The pilot explored: ew layouts, icreasig workstatio capacity by 20% from 121 desks to 146; Key Statistics Move-i: Buildig: 1960s multi-storey office with cetral service core Total buildig area: fourth floor oly 1,135m 2 Fourth floor user populatio: 163 Workstatios: 145 Desity: 6.15m 2 per perso Desk allocatio: 82% staff at 1:1 ad 18% at 1: ew hot desks to support mobile workers from the Health, Social, Educatio ad Surveyig sectios at a ratio of 1 per 2.5 persos; screes, providig visibility ad commuicatio betwee all staff; earby walk-up ad bookable meetig rooms; high-desity group storage space located withi the cetral service core; ad ew etworked cablig, supportig laptops; VoIP telephoy, reducig the cost of volume callig (betwee 5 ad 10%) ad supportig remote workig. 5 The hot desk eviromet eabled the pilot s floor area to support a populatio of 163 people, a icrease of 35%. New etworked cablig for laptops supported all workstatios. The coucil ecouraged people to use laptops via dockig statios as part of the flexible workig approach. A typical floor occupacy rate of 72 per cet was good, but also provided further opportuities for spaceless growth. Gettig the best from public sector office accommodatio: case studies 39

42 case study eleve 6 Stimulated by the pilot project, ad by the ew ways of workig i a decetralised property arragemet, the coucil is itroducig further wider chages. For example: 4 The coucil is gradually ad successfully challegig ad reducig the habit of parkig at work. For oe day each moth staff, from the Chief Executive dow, must park off-site or leave their cars at home. A Park-ad-Ride scheme is available as a alterative. The pealty for o-compliace is a three-moth parkig ba, icetivisig staff to take the iitiative seriously. The coucil charges busiess uit maagers for the cost of their occupied space. The freehold status of Couty Hall had previously ecouraged a free issue approach to real estate costs amogst the user populatio. I the future may staff will work from the decetralised uits deliverig frot lie services, attractig commercial charges. The coucil used the opportuity of the pilot to reduce the variability across the estate by itroducig clear, trasparet stadards, see Figure 4. Commo stadards itroduced as a result of the pilot Achievemets 7 This pilot project was the catalyst for a umber of importat chages for Norfolk Couty Coucil. They relate to the use of property ad the wider issue of orgaisatioal culture. These iclude: icreasig the umber of workstatios by 20%; cost per perso reduced by 16%, from 1,269 to 1,064; icreasig the supported user populatio by 35%; adoptig flexible ad mobile busiess workig approaches; chagig people s attitudes to accommodatio ad services i terms of quality, cost ad accoutability; itroducig ew stadards for accommodatio ad service provisio; settig ew budgetary guidace o occupacy costs; ad reducig the costs of telephoe calls through usig VoIP by up to 10%. 7.0m 2 per workstatio et ad 14.0m 2 gross; hot deskig at 7 desks per 10 staff; car parkig at 1 space per 6 staff for city cetre ad 1 space per 2 staff elsewhere; budgetig office rets at m 2 ad rates at 43-60m 2 ; service charges at 40m 2 per aum; ad off site retetio ad maagemet of all archival records. 40 Gettig the best from public sector office accommodatio: case studies

43 case study twelve case study twelve PricewaterhouseCoopers A bold decisio to ivest i a ew method ad service level i maagig space ad facilities captured the imagiatio of staff ad cliets, revolutioised workig arragemets ad reduced overheads. Key lessos puttig people s work-life balace at the heart of the busiess trasformatio ageda leads to directly measurable beefits i staff satisfactio ad retetio; moder hotel-style maagemet techiques are essetial whe people adopt mobile workig practices i a ope-pla desk-sharig eviromet; ad focusig o the staff ad cliet experiece i this way is either a luxury or costly: it is good value for moey i this particular case the busiess achieved cost savigs of 41 per cet per perso too. Key Statistics Move-i: 2004 Buildig: Total buildig area: 9,316m 2 User populatio: 1,750 Workstatios: 670 Buildig desity: refurbished, multi-storey, atrium-style; leased office buildig 13.9m 2 per workstatio Desk allocatio: c20% at 1:1 ad c80% at 1:1.3 Gettig the best from public sector office accommodatio: case studies 41

44 case study twelve The challege 1 Followig years of growth, icludig may mergers ad acquisitios, PwC had iherited a large, dispersed ad costly property portfolio. 2 The firm s plas i 2003 to chage its operatig model for the Midlads regio to facilitate cross-workig betwee Lies of Service led to ew real estate ad facilities requiremets. 3 Further, PwC wated to improve people s work life balace. 4 The visio was to cosolidate its estate i the Midlads, to create flexibility with arragig the locatio ad timig of work, ad to support improved team ad project work i a friedlier work eviromet The solutio 5 Watig a workplace that will be truly ispiratioal for our people, PwC evisaged a solutio that would brig Birmigham staff together uder oe roof, from two buildigs previously, to create a greater sese of uity; closer itegratio across the Lies of Service; a better service offerig to cliets; agile work ad commuicatio; ehaced team spirit; ad reduced operatig costs. 6 The solutio at Corwall Court sought to provide staff with more choice ad variety i work settigs. For example: wireless workig aywhere i the buildig; bookable desks i either table or 120 format; touch dow spaces o each floor with views dow ito the atrium; capsule-size quiet rooms i which cofidetial calls are take; cellular spaces that eable group workig; project ad meetig rooms; iformal, quiet workig i the Busiess Club ad Louge; ad touch dow space for cliets i the Cliet Busiess Cetre. 7 Corwall Court provides 670 workstatios i spaces averagig 7.4m 2. A hotel-style bookig system allows staff to work from ay desk i the buildig, which supports a user populatio of 1,750. Most fee earig staff share desks at 1 desk per 1.3 people, admi staff have dedicated desks ad parters have small offices. A electroic space maagemet system, AOS Hotellig, eables staff to book a workspace before they arrive at the office via either the iteret or telephoe. Touch screes located at floor etraces allow staff to check ito ad out of the system. Floor layouts o the screes idetify where allocated workstatios are located. 8 This system of space maagemet has revolutioised the firm s space chargig regime. Istead of beig crosscharged for a fixed amout of space o a quarterly basis, each Lie of Service ow pays oly accordig to the actual use of space ad services. Regular ispectio of desk usage by FM staff esures that the system is workig effectively. The use of parter offices whe vacat has led to the practice of reverse hotellig eablig other staff to utilise empty offices for meetigs or quiet workig. 42 Gettig the best from public sector office accommodatio: case studies

45 case study twelve 9 A ew cocierge-style Meet ad Greet welcome at the frot door has replaced the old style receptio ad gives visitors a memorable etry ito the buildig. Service Desk staff at etrace level aswer all hotellig equiries ad provide o-the-spot assistace. A Respose Cetre that deals with accommodatio problems is cotactable via the PwC portal or telephoe. A outsourced operatio Service Solutios is available from to 19.00, Moday to Friday. It provides archivig, post, prit, statioery, busiess card, courier bookig ad cetral filig. 10 Service ad Satellite Hubs o each floor accommodate multi fuctioal devices for pritig, faxig, scaig ad copyig. Facilities staff regularly check the statioery stocks. Multi-fuctio devices (MFDs) have reduced the umber of desk-top priters by 98% from 1,000 to 17 ad improved the work eviromet by reducig hot spots, oise, utidy cables ad geeral disruptio. Achievemets 11 After oly five moths, ad with miimal busiess disruptio, the fial moves back ito the refurbished Corwall Court buildig took place i March The cosolidatio allowed the release of 7,500m 2 of surplus space, reducig aual overhead costs from 6.55m to 3.85m. Property ad associated savigs are forecast to reach c 30m over the ext te years. Costs per perso have falle by 41 per cet from 5,780 to 3,400. The capital ivestmet costs of 7.5m will be paid back withi three years. 12 The buildig has made a measurable positive impact o the staff 95 per cet of staff say they are happy with the ew buildig ad services with 87 per cet agreeig that it is a great place to work; ad oly 12 per cet of staff asked to leave last year, the lowest figure o record. Gettig the best from public sector office accommodatio: case studies 43

46 case study thirtee case study thirtee Suffolk Couty Coucil Agility i respodig to a uexpected property opportuity ca greatly ehace ad boost a pre-existig busiess trasformatio programme ad become a catalyst for further chage. Key lessos a orgaisatio s estates plaig fuctio has to alig with, uderstad, have credibility withi ad be a part of the overall maagemet machiery, i order to be able to capture the beefits of uexpected opportuities; very speedy decisio-makig is vital whe uexpected opportuities preset themselves; a estates-drive project ca add mometum ad create additioal beefit to a pre-existig busiess trasformatio project; ad space allocated o a cross-cuttig basis ca support ew ways of workig ad ehace frot lie service delivery. Key Statistics Move-i: April 2004 Buildig: ew multi-storey office buildig Total buildig area: 13,286m 2, excludig the coucil chamber User populatio: 1,150 Workstatios: 975 Buildig desity: Desk allocatio: 13.6m 2 per workstatio 890 at 1:1 ad 270 mobile workers at 8:10, ad 12 touch dow 44 Gettig the best from public sector office accommodatio: case studies

47 case study thirtee The challege 1 Suffolk Couty Coucil s GO-Suffolk chage maagemet programme was already uderway i 2002 whe a uexpected opportuity to acquire a ew 15,650m 2 freehold HQ i Ipswich arose at very short otice. A high quality buildig i mid-costructio, valued at over 30m, was put up for sale because its ower, had bee placed ito admiistratio. The coucil idetified very rapidly that the buildig, Edeavour House, offered a opportuity to ehace its already-ruig GO Suffolk programme, ad quickly decided to make a offer for the property. The coucil s bid was successful, maily due to the speed with which it maaged to close the deal betwee November 2002 ad February The coucil saw i the ew buildig opportuities to cosolidate its operatios, previously spread over six ageig properties, thus creatig: a workig eviromet that would help break dow its departmetal silo culture; better public access ad service delivery; a higher specificatio for a give cost; a moder workplace that would help recruit ad retai staff; a sigificat ew presece withi the Ipswich commuity; ad a icrease i iformal iteractio ad kowledge sharig betwee staff. The solutio 3 The coucil grasped the challege ad quickly absorbed the ew buildig ad relocatio project ito its chage programme. Edeavour House supports 1,160 people with 890 desk based staff ad 270 mobile workers (50 per cet of time spet at desk) who either hot desk withi team areas or utilise touch dow space. Usig the ew buildig to house strategic decisio makig coucil staff exclusively, a further 600 support staff, icludig the HR, IT ad Fiace fuctios, are accommodated i a coverted buildig ext door. Further, these people ow work i a ew maaged service arragemet, i which BT is the strategic parter. 4 The coucil allocates space to busiess teams o a cross-cuttig basis brigig together people workig o commo issues across differet departmets. For example, oe floor s theme is childre, youg people ad families, ad brigs ito close proximity staff from the two differet departmets of social services ad educatio. Commuity safety is the theme o aother floor where staff from Tradig Stadards, Racial Harassmet ad Youth Offedig all work together. 5 There are o cellular offices, but plety of cellular space for meetig ad quiet work. Office floor storage is strictly limited to immediate referece oly, with cetralised prit/copy poits. The restaurat, cafeteria ad other atria spaces provide opportuities for people from differet departmets ad fuctios to mix ad iteract, creatig a lively ad dyamic atmosphere withi the buildig. Coffee poits i break out ad casual space ecourage staff iteractio kettles are o loger allowed i the office space. The atrium ties together two multi-storey office blocks usig bridge walkways ad catilevered stairs, creatig may circulatio liks across the buildig. Ope pla areas ad breakout spaces ear the walkways provide further opportuities for staff to meet ad work together. 6 The coucil itroduced moder ways of workig, icludig hot desk workig, ad supported the ew approach with a proactive, cetralised FM team. Key features of the ew eviromet icluded: Oasis hot desks, allocated to teams, with certai oes bookable o the coucil itraet, plus eighty electroically bookable meetig rooms o the ope pla office floors ad dedicated meetig room suite; VoIP telephoy to eable flexible use whilst keepig call costs dow; icreased direct log-o to ay PC for use of commo software; group filig ratioed to 1.5 liear metres per work statio, plus off-site records maagemet ad archivig ru by the FM team; ad multi-fuctio priters located i special resource areas, with cetralised purchasig of office cosumables ad equipmet. Gettig the best from public sector office accommodatio: case studies 45

48 case study thirtee 7 With average occupacy rates at aroud 54 per cet for ay oe day, the coucil estimates that it could icrease its user populatio at Edeavour House from the curret 1,160 people to approximately 1,400 ad allow the disposal of further accommodatio liabilities. Achievemets 8 These iclude: value for moey purchase of HQ at about half the ormal cost; culture chage to ew ways of workig with desk sharig at 8:10 ratios; cetralisatio of property ad FM fuctios to achieve ecoomies of scale ad corporate stadards for purchasig ad services; ad 94 per cet of staff say Edeavour House, with its ew services, is a great improvemet o their former accommodatio. 46 Gettig the best from public sector office accommodatio: case studies

49 case study fourtee case study fourtee Su Microsystems A global orgaisatio, operatig i a highly competitive market, ad usig state-of-the-art techology ad aliged HR ad real estate strategies, has itroduced flexible workig to improve staff retetio ad productivity ad sigificatly reduce overhead costs. Gettig the best from public sector office accommodatio: case studies 47

50 case study fourtee Key lessos flexible workig policies ca both improve performace ad reduce costs, but this requires Board level represetatio ad support, as well as aligmet of the HR, real estate ad ICT fuctios; it is importat to maage the iter-relatioship betwee real estate, staff satisfactio, ad productivity at the highest level. I this case the Executive vice-presidet for People ad Places directs the real estate ad HR fuctios across the busiess. The challege 1 Su operates withi a highly competitive busiess eviromet, providig a wide rage of software solutios for etwork computig systems. Su has a worldwide headcout of some 37,000 employees, all supported withi a estate of c1,208,000m 2. With such a large commitmet to real estate, space efficiecy is a cotiual maagemet issue; but the busiess recogised that the critical factor to its success lay i the satisfactio ad productivity of its staff. 2 The compay describes itself iformally as a itellectual property compay, completely depedet upo the creativity ad productivity of its mai asset ad competitive advatage its people. Sice the late-1990s Su has approached profitability, productivity ad worker satisfactio as iter-related, ad it has sought to provide its people with the support they eed to meet idividual work style prefereces ad work-life balace. As a result, Su itroduced radical approaches to its maagemet of real estate to support this broader visio for attractig ad retaiig the best talet, ad to eable them to achieve their maximum productivity through totally flexible workig practices. A worldwide survey with a 61% respose rate showed that 71% of staff reported that they would prefer to work flexibly provided that it icluded some homebased workig. The solutio 3 Su s solutio to supportig its staff ivolved aligig Real Estate with ICT ad HR uder iwork, its iterally braded Flexible Workig Programme, which gave employees the freedom to choose whe ad where to work. The programme has evolved over a umber of years, as Su has progressively leart from experiece ad adapted its approach, as show i Figure 5. 4 The programme offered three choices to staff: Assiged - A dedicated office desk with telephoe ad computig device, with limited rights of access to facilities at other Su locatios. This model suits staff whose work has a regular patter, such as fiacial ad support staff. Flexible hot deskig i ay office across the UK, combied with workig at home oe to two days per week. Homebased workig for betwee three ad five days per week. 5 A rage of techology supports flexible workig ad commuicatio across the world. For example: Key Statistics (Guillemot Park) Move-i: 2000 Buildigs: Total buildig area: 25,220m 2 User populatio: 1,717 Workstatios: Buildigs desity: three ew low rise itercoected buildigs i a busiess park eviromet 1,656, plus touchdow area 16.0m 2 per workstatio Average workstatio area: flexible 3.5m 2 Desk allocatio: 21% at 1:1, 5% share team desks; 74% share hot desks at 1:1.6 the Java Card which combies security pass, persoal charge card access to the IT system. The card meas that staff workig o spreadsheets at oe work statio ca move to aother ad resume work i a matter of secods. SuRay, a thi cliet desktop computig termial eablig ayoe to use ay machie with their Java Card. SuRays are located at each workstatio ad are hardwired to the mai server. SuRays also reduce maiteace costs ad cut heat output. Accesslie follow-me telephoy eables staff, through a pi code access, to route their calls to ay workstatio, mobile phoe or home phoe umber. iwork Programme gives employees hardware ad coectivity based o their chose category ad provides distace collaboratio tools; 48 Gettig the best from public sector office accommodatio: case studies

51 case study fourtee iwork Tool Kit provided with all busiess software applicatios; SuReserve to reserve ad maage workspace ad meetig rooms ad locate other staff; ad Virtual Private Network for remote ad secure coectivity to the mai server. 6 Guillemot Park houses Su s UK HQ operatios ad large customer traiig facility i 25,220m 2 of purpose-built, flexible office space supportig a office populatio of 1,717 from 1,656 workstatios. Twety oe percet of the office populatio have a dedicated desk, 5 per cet share withi specific group areas ad just uder three quarters choose to work flexibly by sharig hot desks at a ratio of approximately 1: Neighbourhoods withi the buildigs provide a meas of locatig teams, ad give a sese of idetity for the asssiged ad flexible workers. The ope pla eighbourhoods house those staff requirig dedicated desks (e.g. fiace maagers, secretarial support), ad are surrouded by a variety of differet ad attractive spaces where work takes place, icludig touch dow, soft seatig or stadig areas. The average flexible workstatio area is a mere 3.5m 2, but the extesive support areas such as the traiig suites, diig facilities ad coferece rooms brig the average area withi the buildig up to 16.0m 2 per workstatio. 5 iwork developmet highlights Flexible employees Growth i umber of flexible employees First FFO i UK ad USA Expasio of FFOs Lauch of Drop-i Ceters First flexible campus project Refiemet of delivery ad customer egagemet processes Lauch of Work From Home program Lauch of Distace Collaboratio program First iwork cafe Maager assessmet tool developed Lauch of exteral cosultig service WFH i 32 coutries Global teams Gettig the best from public sector office accommodatio: case studies 49

52 case study fourtee 8 People ca book offices, called cockpits, ad phoe booths for quiet workig ad cofidetial calls. Sice movig i durig 2000, the eed for more coferece ad meetig rooms has grow reflectig the evolvig club-like ature of the day-to-day work. Gym, cocierge services, a shop, a restaurat ad several coffee shops are also provided. A shuttle bus service takes people to ad from earby Camberley. To keep costs low this service is shared with Su s ear eighbour Nokia. Achievemets 9 Worldwide the iwork programme has bee operatig for two years, durig which Su reports: real estate savigs i 2005 i the order of $70m agaist a aual total real estate sped of $500m; sice 2000, some $319m reported i aual savigs ad cost avoidace; a employee attritio rate half that of its competitors with 1,000 idetifiable key retetios; home workers cosistetly reportig high job satisfactio ad productivity; total occupacy costs of 12.3m per aum, or 7,412 per workstatio; ad Spaceless growth is provided through the capacity to absorb future busiess expasio by icreasig the etry ratio at the outset of the programme as demad dictates. 50 Gettig the best from public sector office accommodatio: case studies

53 case study fiftee case study fiftee Vodafoe Showig how movig to a ew campus eviromet helped a rapidly growig ad chagig orgaisatio leave behid its legacy busiess cultures ad eabled it to moderise workig practices ad itegrate the busiess culture. Gettig the best from public sector office accommodatio: case studies 51

54 case study fiftee Key lessos campus-style accommodatio resolves the problems iheret i dispersed real estate ad ca achieve sigificat beefits, ot oly i terms of ecoomies of scale, i greater efficiecies ad i offerig facilities previously ot possible, but also as a meas for trasformig ad growig a ew busiess culture; ad the project demostrates the importace of full sposorship by seior decisio makers. The challege 1 Expasio of the mobile telephoe market durig the 1980s ad 1990s led Vodafoe to experiece very rapid growth ad busiess chage. Orgaic growth ad corporate acquisitios led to aual growth rates of 50% over a umber of years. Based i Newbury, Berkshire, Vodafoe s umerous corporate acquisitios demaded more ad more space. By 2001 some 69 buildigs were occupied i ad aroud Newbury. 2 Occupyig so may buildigs meat that istead of operatig as a coheret headquarters with commo maagemet processes ad culture the busiess ievitably worked withi cultural silos, the legacies of so may acquisitios. The maagemet therefore idetified the eed for a locatio o which to build a headquarters facility that would uite the busiess both geographically ad culturally, ad the compay bought a gree-field site o the edge of Newbury. The solutio 3 Adoptig a campus layout for its ew corporate HQ ad operatioal cetre, Vodafoe built seve ew buildigs focussed aroud a artificial lake i a busiess park settig (Figure 6). The campus master pla esured that each buildig was capable of idepedet owership, thereby eablig flexibility should Vodafoe s requiremets for space chage. 4 The offices are all ope pla, ad those that were previously provided to all maagers were allocated to just a hadful of Directors. Low profile furiture screes ad storage cabiets i the ope pla allowed staff to ejoy the vista across the office ad the views ad daylight. Good quality but uiform furiture disguises status ad makes office moves easier ad ecoomic. Eye-catchig grass platers positioed o the top of the low level filig Key Statistics Move-i: 2002 Site area: Buildigs: 15ha Total buildig area: 44,131m 2 Largest buildig: c8, 400m 2 User populatio: 2,975 Workstatios 3,400 Buildig desity: seve purpose built buildigs, arraged aroud a cetral lake 12.9m 2 per workstatio Desk allocatio 93% at 1:1 ad 7% sharig at 1:2 ad 1:5 cabiets prevet clutter from accumulatig ad with o furiture higher tha 1.2 metres provides a pleasat ad evirometally stimulatig workig atmosphere. 5 Movig to a campus eviromet ad leavig behid its legacy silo busiess culture eabled Vodafoe to moderise its workig practices. For example, fixed phoes disappeared altogether ad the use of mobile phoes meat o discotiuity of service betwee office, customer locatio or home. The experiece was liberatig for staff, as work could take place from ay locatio with full corporate back-up ad bradig. 6 A large percetage of employees use wirelesseabled laptops usig 3G cards. Agai, this eables them to break away from their traditioal ways of workig. People work productively i differet locatios ad at times that best suit them. 7 Hotel Vodafoe was the drivig cocept behid the ew developmet ad high quality services ecoomically delivered to all employees promote ad support a philosophy of complete busiess eablemet. Givig employees sigificatly better quality space ad facilities withi a campus layout brought with it may sigificat ecoomies of scale ad offered advatages over the previously dispersed, iefficiet accommodatio. For example, the ew campus requires oly three receptio areas to service all seve buildigs, compared with the umerous receptios required for the 69 buildigs, with cosequetial savigs i staff costs ad expesively fiished floor space. 52 Gettig the best from public sector office accommodatio: case studies

55 case study fiftee 6 The Vodafoe campus layout 8 The buildigs provide 44 serviced meetig rooms supported by receptio staff, ad cocetrated close to the three receptio areas ad with ready access to tea, coffee ad caterig facilities. The groud floor of oe buildig accommodates a popular cetral, outsourced restaurat facig oto the lake ad ru without subsidy. A outsourced gymasium attracts employees ad offers membership to all at 15 per moth. There is o cost to Vodafoe with the operators resposible for the operatio, supply, ad maiteace of equipmet through to the marketig of the facility ad the collectio of subscriptios. 9 Vodafoe paid great attetio to detail i plaig the ew work eviromet, ad recogised the eed for attetio to quality ad itesive FM practices. For example, priters ext to desks have bee abolished, ad all pritig is cetralised o each floor, usig server techology. Pi-coded follow me pritig allow user to delay the start of cofidetial pritig util required ad collected at the most coveiet poit. A substatial reductio i paper usage is a further outcome. Similarly, persoal wastepaper bis have bee replaced by recyclig bis o each floor at cetral poits. The process of emptyig bis typically represets about 20%-30% of cleaig costs, ad this simple step brought sigificat cost savigs as well as promotig a soud recyclig policy. Achievemets 10 Vodafoe s cosolidatio oto the campus ad its approach to workplace plaig has created may busiess beefits, icludig: a 30 per cet reductio i office space, raisig occupacy desities from 16.9m 2 to 12.9m 2 ; achievig a occupacy cost per workstatio of 5,355; a 40 per cet reductio i paper/pritig costs; a 20 per cet savig i cleaers time through a ba o persoal waste bis; ad staff satisfactio has icreased by some 50 per cet without ay icrease i accommodatio costs. Gettig the best from public sector office accommodatio: case studies 53

56 case study sixtee case study sixtee TV Licesig Shared Service Cetre Capita took resposibility i 2002 for the collectio of TV Licesig reveue. To icrease the umber of liceces issued, reduce the rate of evasio ad realise efficiecies Capita ivested i ew premises for its customer cotact cetre ad i ew systems ad techology. The property solutio, itegrated with the staff ad techology solutio, cotributig to the successful performace improvemet. Key lessos physical separatio of staff i two locatios has o adverse effect o performace if the techology is effectively cofigured to provide a virtual sigle call cetre; take accout of locatio of labour pools for ew sites ad staff routes to work for relocatio from existig sites (as well as costs ad fuctioality cosideratios); high quality furishigs i the office ad the provisio of excellet staff rest areas builds staff commitmet ad pride i the orgaisatio they work for; empowermet of maagers to icur modest expediture i order to address day-to-day issues avoids mior problems becomig major or o-goig issues; resource the chage programme ad specific projects with a dedicated team (ad assure as far as possible the cotiuity of the team); fully ivolve the staff uios at the outset ad agree the priciples ad detail of the proposed chage at the appropriate seior level i the uio; ivolve staff who have bee through a previous chage programme to act as advocates of the ew arragemets ad to provide reassurace about the impacts of the ew arragemets; ad focus o the sellig of ideas ad proposed chages ad ivest i frequet good quality commuicatios ad staff briefig evets. Key Statistics Customer base Reveue collected Visits to premises Iboud telephoe calls Mailigs Direct debits i place Office accommodatio 26m households; 24m liceces i force 2.94b 4.5m (eforcemet, sales ad delivery) 9m pa 4 5m per moth 11m Total staff ,000sq ft i Bristol; 28,000sq ft i Darwe 54 Gettig the best from public sector office accommodatio: case studies

57 case study sixtee The challege 1 I , i order to deliver further icreases i the umber of liceces issued, reduce the rate of evasio ad realise efficiecies, the BBC sought competitive bids for the provisio of TV Licece reveue collectio ad related services. I 2002, Capita was awarded a 500m, 10-year cotract by the BBC to collect TV Licesig reveue. The TV Licesig operatios ow performed by Capita icorporate multi-chael cotact cetres, back office admiistratio, reveue collectio ad a atiowide etwork of equiry officers ad court liaiso staff. 2 The cotract arragemets call for the licese sales to both maitai umbers i lie with demographic growth, but also icrease umbers by pursuig licece fee evaders. This required Capita to address a umber of key challeges (Figure 7). 7 Staff Trasfer Challeges faced by Capita Regioal office structure Techology Relatioships Trasfer the employmet arragemets for 1400 staff uder TUPE (pre 2002 workforce equivalet to 1850 staff). I order to realise efficiecies ad to support the itroductio of improved workig methods ad ew techology Capita eeded to relocate staff from 6 regioal offices ito moder efficiet office accommodatio ad a ew customer cotact cetre. I order to achieve objectives Capita had to implemet ew systems ad techology at the cotact cetres (whilst maitaiig customer service levels). Delivery of the cotract objectives required Capita to build excellet relatioships with its customers, parters ad suppliers. The solutio 3 The cetralised Customer Cotact cetre was located i Bristol i ew purpose desiged offices. These offices icluded admiistratio ad other corporate fuctios. The field offices i Eglad, Wales ad N Irelad were cetralised i a sigle cetre at Idia Mill, Darwe (ear Blackbur) (Figure 8). The Darwe cetre was set up from zero i a completely refurbished brow field site. This cetre icludes a cotact cetre of approximately the same size as the cotact cetre at Bristol. The two call cetres at Darwe ad Bristol are fully itegrated. They effectively fuctio as a sigle customer cotact cetre. Cross-site traiig helps assure cosistecy ad quality. The Darwe cetre wo the employer of the Year award i the 2004 Regioal Busiess Awards (North West). 8 A view of the Darwe SSC Gettig the best from public sector office accommodatio: case studies 55

58 case study sixtee 4 The acquisitio of these ew premises was the key to the cosolidatio of activity, ad the realisatio of efficiecies through ecoomies of scale, the use of ew techology ad the chage i culture that these eabled (Figure 9). To deliver further improvemets, a umber of developmets are plaed icludig further use of techology to refie work load ad staffig forecastig, ad cotiued emphasis o automatig paymets (movig customers to direct debit) ad the itroductio of E Billig. Achievemets Providig first class customer services is a key priority for TV Licesig ad, workig i partership with Capita sice July 2002, we have see sustaied improvemets i all the key customer service measures of the operatios they provide. The successful collaboratio with all of TV Licesig s service parters, has cotributed to cotiued growth i licece fee icome over this period ad a reductio of the estimated evasio rate to a alltime low of 5% by March Pipa Doubtfire Head of Reveue Maagemet, BBC 5 By workig i close partership, Capita, the BBC, AMV Group (resposible for all direct mailigs, PR ad advertisig ad media), RMS (Istalmet Schemes), ad others have successfully delivered icreased licece sales ad have reduced evasio. The mai achievemets of the ew itegrated SSC approach are: cotributig to improved busiess performace, icludig icreasig Licesed sites, reduced rates of evasio, ad exceedig service targets; delivery of a virtual sigle customer cotact cetre from two separate sites located hudreds of miles apart which allows either site to act immediately for the other i case of a disaster. Previously the three sites did ot use idetical systems ad have the sophisticated curretly available itercoectivity or itra-operability; ad improved workig eviromet ad ehaced staff motivatio (better facilities, feel valued) ad icreased pride i work ad workplace, better work ethos, ad chage of culture to ca do, have facilitated ad supported the delivery of improved licece sales, greater direct debit usage ad the achievemet of higher service levels. 56 Gettig the best from public sector office accommodatio: case studies

59 case study sixtee 9 The scale of the trasformatio withi the Capita SSC Trasformatio Before After Beefits delivered Performace moitorig Automated, real time data displayed o overhead screes showig curret ad average performace, queue time Limited performace data provided Fully automated, real time data displayed o overhead screes showig all staff ad maagers curret ad average performace Aget performace statistics ad the ew call recordig ad moitorig system help target remedial actio or traiig Maagers able to take immediate remedial actio if performace exceeds or misses target Service level achieved 85% of time (compared with previous performace of 71%) Work schedulig Prepared usig basic computer models ad spreadsheets, with data collected o past performace Prepared usig a sophisticated resource forecastig tool which makes use of data from a wide variety of sources Cost miimised (whilst maitaiig service levels) by miimisig both uder ad over provisio of resource ad over ad uder delivery of service Voice recogitio self service Noe used Iteractive voice recogitio software allows customers to complete may trasactios without speakig to customer cotact staff Reduced demads o customer cotact staff. At peak times the system hadles the equivalet of 52 staff members work Icreased flexibility for customers (who may access the automated system 24 hrs a day, 365 days a year) Core competecies Locally set ad iformally defied Sigle uiform competecies for each major role defied ad applied Staff movemet betwee teams facilitated Skills ca be assessed, icreasig pride i havig achieved recogised competecies Stadards ad traiig courses Local stadards ad traiig, primarily o the job Sigle set of stadards rebuilt aroud Customer Cotact Cetre platform Uiform stadards i place ad kow across the whole operatio with techology allowig the provisio of ogoig supervisor traiig Formal evaluatio of skills ad accreditatio before placed i live eviromet Culture ad value set Culture of paret orgaisatio ot tailored to a customer cotact cetre busiess Each office ad locatio had ow culture which had emerged over time Values ad culture of orgaisatio set specifically for a Customer Cotact Cetre Strog focus o improved customer service, with a sigle culture ad set of values that allows employees to idetify with ad belog to the orgaisatio Traiig course for maagers ad seior advisors - Advace People Programme - desiged to chage maagemet style ad culture Resources Some staff over or uder qualified for the duties allocated to them ad paid a rate appropriate for their grade rather tha the role udertake Staff appoited to positios o basis of havig the miimum skills (ad therefore cost) ecessary to perform tasks Aligmet of skills ad grade with role avoids resourcig positios with over skilled staff Avoidace of resetmet/ reductio i morale due to differet rates paid for performig same role Gettig the best from public sector office accommodatio: case studies 57

60 case study sevetee case study sevetee Trasport for Lodo Shared Service Cetre The cetralisatio of HR trasactioal ad advisory activity i a sigle efficiet, purpose built locatio usig a iovative service led approach to desig a truly customer focused Shared Service Cetre. The cetre serves 19,000 staff, 60,000 pesioers ad the 60,000 people who apply each year for a job. It achieved efficiecy gais of more tha 30 per cet. 58 Gettig the best from public sector office accommodatio: case studies

61 case study sevetee Key lessos defie the look ad feel of the cetre ad ivest as appropriate i high quality materials; defie the characteristics of the existig service ad the to-be service at the outset; ivest time i commuicatio ad relatioships with all key stakeholders (lie-maagers, staff, staff uios etc); adopt a service-led desig which focuses o the outputs rather tha the processes; ad set challegig but realisable targets ad be prepared to realise progressively further efficiecies after the shared service cetre has become operatioal. A service led approach is critical to esurig a focus o deliverig real busiess value. It should uderpi everythig from the desig of the service to the maagemet of the busiess chage. This emphasis will go a log way to avoidig the pitfalls experieced by may other similar iitiatives. Jae Sauders Parter, Orio Parters The challege 1 Trasport for Lodo (TfL) maages the provisio of the Lodo trasport ifrastructure ad was formed i 2000 by brigig together all the major trasport compoets (16 etities icludig Udergroud; Buses; Public Carriage Office; Lodo Rail; ad the Cogestio Charge). The ewly formed TFL udertook a strategy study to look at how best to establish a world class trasport service. Oe of the fidigs of this study focused o the realisatio of the post merger beefits ad a key recommedatio was to cetralise certai service fuctios (icludig HR). TfL plaed to use the cetralisatio ad move to moder purpose desiged, cost efficiet office accommodatio as a catalyst for achievig cultural ad orgaisatioal chage ad the realisatio of merger beefits. 2 The formatio of the HR shared service fuctio has helped lead the itegratio process ad has bee at the heart of the delivery of the culture chage ad itegratio processes. The HR trasformatio programme commeced i 2003 ad took approximately 18 moths to complete. TfL wated to achieve a sigle moder HR Services shared service cetre ad to cosolidate all trasactioal ad advisory HR activity ito oe service, based i oe cetral locatio. It specified that the shared service cetre was to: Key Statistics No. of HR fuctios merged No of staff served 19,000 No. of pesioers 60,000 served No. of Job 60,000 applicatios processed No. of busiesses 19 served 4 mai ad several smaller oes from 19 busiesses use stadardised systems, processes ad traiig; deliver improvemets to efficiecy ad customer service at the same time as reducig costs; provide service throughout the stadard workig hours 8.00 am pm Moday to Friday; accommodate withi the same space a mix of cotact cetre (o-lie) staff, mobile ad static staff, advisors ad specialists ad the maagemet team; ad act as a showcase cetre such that various TfL ad exteral visitors to the cetre ad the workplace ca view the ew HR Services structure without compromisig security or cofidetiality. Gettig the best from public sector office accommodatio: case studies 59

62 case study sevetee 3 I terms of culture, TfL wated its HR Services cetre to be customer focused ad accessible with a sigle poit of cotact Team ad service orietated rather tha fragmeted ad icosistet services, ad performace drive through target measuremet. It must also be cosidered a great place to work ad fu with a strog idetity, ad adopt best practice i shared service cetre techology ad processes. A further key priority was to make sure that the HR Services cetre should offer greater value by providig a more cost effective ad improved service, ad that the desig should recogise that various staff fuctios require differet tools ad workstatios. For example, i the Cotact Cetre: o phoes were required as staff use cordless headsets, PCs would be stored uder desks, flat screes would be provided ad o i/out tray or statioery storage provided because of paperless systems ad processes. 4 TfL kew that the ratio of HR staff to employees was 1:64 before the shared service cetre was set up. This was higher tha that achieved by may other leadig orgaisatios (1:92 is the public sector bechmark as defied by EP First Saratoga, a leadig idustry bechmarkig body). The solutio 5 TfL worked with cosultats who were specialist i the developmet of moder, full service HR fuctios to help idetify a approach that would meet the specific objectives of the HR fuctio. It decided to adopt a service led approach, based o the requiremets of the merged busiess expressed i terms of how the combied fuctio should look ad feel to the users (both liemaagers ad staff) ad to the staff who worked i it (Case example 1). This cotrasted to the traditioal approach to mergig HR fuctios, which focuses o the process ad the techology used. TfL were aware of the eed to make sure that at all times there was cotiuity of service delivery ad that additioal efficiecies should be geerated from a cotiuous improvemet programme. 6 To reflect the ew culture, ehace commuicatio ad ecourage team buildig, TfL decided that the ew HR Services cetre should be: case example 1 From the outset of the project, TfL ivested heavily i discussios with maagers, staff, ad uios to obtai a full but balaced picture of the existig arragemets, their shortcomigs ad the difficulties associated with the processes ad systems used. This buildig of a awareess of the weakesses i the service beig provided ad the articulatio of what a improved, appropriate service would look ad feel like, was vital to gaiig ad sustaiig the commitmet of maagemet, staff ad the staff s uios to the delivery of the massive chage required to deliver the programme. Examples of commuicatios activity iclude: discussios with lie maagers ad staff before plaig work commeced to idetify; early ivolvemet of the uios i the discussios to obtai their iput, ad demostrate the improved workig eviromet available from a well-furished purpose desiged office; full traiig programmes coverig all aspects of the chages required to be adopted by the staff such as customer service traiig, use of ew techology, ad busiess awareess (sharig kowledge of idividual busiess uit requiremets); ad frequet ad regular commuicatio evets held throughout the programme, icludig major evets to mark the trasitio ad lauch of the chaged arragemets. located i a buildig with a sufficietly large floorplate to miimise the umber of floors required to accommodate all staff; light, airy ad fully ope-pla (o offices) with miimal iterruptio to lies of sight, keepig desk screes low to maximise daylight ad limitig partitios to create a light, bright ad airy workplace; provide the appropriate level of facilities to support the busiess such as traiig rooms ad after hours vedig; desiged with workstatios ad a layout that is flexible ad ca support the whole rage of job fuctios; completely fiished whe the staff move i o a big bag style lauch; ad a eviromet that promotes a sese of belogig to HR, TfL ad Lodo ad uses TfL artwork ad other images to provide subtle HR Services bradig. 60 Gettig the best from public sector office accommodatio: case studies

63 case study sevetee 7 The office layout chose was desiged to locate the Cotact Cetre at heart of the workspace, allow for team clusters, support work flow, provide target screes ad geeral iformatio boards, provided breakout spaces to keep staff o site ad provide ready access to core services such as priters ad copiers (Figure 10). New techologies ad workig practices were itroduced combied with work-settigs such as quiet rooms ad hot desks to support the rage of work carried out. To achieve a more orgaic ad iterestig layout, o-haded 120 workstatios were selected as these offered ample work surface, provided the most efficiet, appropriate use of the curved, arrow core to perimeter space ad geerated the feelig of a ew workig eviromet. 10 Cotact Cetre located at the heart of the workspace Meetig Meetig Meetig Quiet Quiet Teams Teams Teams Teams Copy/Prit Break-out Cotact Cetre Break-out Copy/Prit Teams Visitor observatio Teams Secure lie Meetig Receptio/ waitig area Meetig Gettig the best from public sector office accommodatio: case studies 61

64 case study sevetee Achievemets This programme has provided both a visible itegratio of TfL for all employees ad give TfL a leadig edge ifrastructure: operatioal HR people are better able to work together, we are able to better support maagemet capability, improve our uderstadig of our workforce, ad focus better o strategic activity all at a cost savig. Hugh Hood HR Director TfL 8 The programme has substatially delivered all the service ad fiacial beefits evisaged at the outset ad icluded i the programme pla (Figure 11), icludig: 11 a itegrated HR service (from recruitmet, through employmet ad leavig, to pesio ad icludig traditioally excluded resposibilities such as the maagemet of disciplie ad grievace procedures); a sigle place of cotact for every sigle employee ad pesioer of TfL; HR Services Programme Overall Beefits Net Aualised Beefit realised 8m Baselie HR Services cost 30m Reductio i staff umbers 142 (from 450+) Reductio i staff employmet costs 35% Improvemet i HR Efficiecy Ratio 1:64 to 1:97 Programme Cost Pay-back period Programme Timescale HR Services Programme Property Related Beefits 7.5m < 1 year 18 moths Property Cost Pre-SSC Curret ehaced visibility ad uderstadig about performace (based o facts ad data collected o a cosistet basis ad cosistetly over the period of employmet); material cost savigs (i the regio of 20 per sq ft o ret, rates, services ad facilities maagemet costs); performace agaist clear ad specific service level targets, for example, for call aswerig resolutio of 80 percet of queries at the first poit of call, with five per cet abado rates (the percetage of calls abadoed before beig trasferred to a aget); ad sigificatly icreased Shared Service Cetre user satisfactio. 9 TfL cosiders that i may aspects, service delivery exceeds the service level required by the busiess (for example accessibility), whilst i key areas improvemet is still required. Further work is plaed to improve the match of service delivery agaist service eed. To date sigificat beefits have come from the ivestmet i corporate type ifrastructure such as customer relatioship maagemet tools givig clear measuremet of busiess activity ad supportig service through recogitio of idividuals, their histories, busiess, ad terms of employmet. The full beefits offered by these tools i terms of, for example, trackig case loads, optimisatio of workflow, work schedulig will be realised oly by a o-goig programme of refiemet ad adjustmet. TfL HR Services iteds to further develop its shared service cetre ad realise further efficiecies by, for example: Further cosolidatio of third party sped through supplier ratioalisatio, targetig a level of cost reductio i this area of 10% year o year. Greater leverage of self service techology ad the services that it provides by re-egieerig its processes ad ratioalisig the service where the differet arragemets ad ways of workig do ot provide beefit to its customers. Ret, Rates, Services ad Facilities Maagemet NOTE 1 Based o a typical, example leasehold property i located i Lodo (Victoria). 62 Gettig the best from public sector office accommodatio: case studies

65 case study eightee case study eightee Xasa Shared Service Cetre Xasa s Shared Service Operatios (SSO) cetres provide a highly automated fiace trasactio processig ad admiistratio service o a multi-cliet basis. The SSO curretly processes over 1,500,000 ivoices per aum o behalf of 4 major corporatios ad employs approximately 800 staff i the UK ad Idia. Gettig the best from public sector office accommodatio: case studies 63

66 case study eightee Key lessos Multi-cliet service provisio icreases rather tha reduces the opportuity for efficiecy gais ad service improvemet I the vast majority of cases the reasos give by staff or lie maagers or uios as to why a operatio caot be moved to a Shared Service Cetre are ot valid ad the key message is i addressig the issues i a ope ad structured way Cosidered, speedy actio ca sigificatly accelerate the delivery of savigs ad other beefits (with hidsight the savigs delivered i the last three years might have bee delivered betwee 25 to 50 per cet faster) Use vailla (or off the shelf ) prove systems ad accept the limitatios of stadard software it is ulikely that i-house developed user-friedly software will be sufficietly robust or iclude the levels of cotrol foud i established package software Re-skill ad re-trai staff - people are hugely adaptable ad this should ot be uder-estimated The challege 1 The curret Xasa Shared Service Cetre (SSC) has its origis i the BT Fiace ad Admiistratio SSC. Durig the period from 1992 to 1998, BT cetralised its fiace ad admiistratio services such that the umber of staff employed reduced from 4,200 (located i 64 locatios) to 500 staff located, primarily, i four locatios. Sice 2002 the SSC s activity has bee expaded to provide the curret multi-cliet Shared Service Operatios (SSO) cetre. O2 (the BT Cellet) was added as a cliet i 2003, followed by MyTravel ad the NHS i The growth i trasactio volumes processed per aum illustrates the scale of expasio (Figure 12). 2 The icrease i cliets served ad volumes processed has occurred at the same time as makig further, overall reductios i headcout. The Shared Service Operatio ow comprises 400 staff i the UK at sites i Machester (processig Purchase-to-Pay trasactios), Bedford (where Geeral ledger ad Cashiers processig is performed) ad, Birmigham (which hadles all the payroll ad expeses processig). I additio, Xasa employs some 400 fiace ad admiistratio staff i Idia, i Cheai ad Noida. The Idia based staff provide back office ad iboud call cetre services. Apply your best people at the frot ed of the process, for example, i the registry, to reduce re work ad icrease straight-through-processig Keep staff iformed - a vacuum will fill with pessimism Be ope whe challeged as to where processig is performed Variatio of process or eviromet is rarely, if ever, a source of commercial beefit Beig passioate about process improvemet ad service efficiecy is the differetiator of the successful Shared Service Cetre 3 Iitially, whe the SSC employed 4200 staff i 64 locatios, each locatio udertook a wide rage of processig activity usig locally tailored processes ad practices, delivered i may cases by usig completely differet systems. Each site had its ow maagemet team ad ifrastructure. The challege was to make the processes ad systems more cosistet, to cosolidate the work ito fewer locatio thus achievig ecoomies of scale, ad to apply cosistet performace measuremet ad maagemet to the combied operatios. 12 Growth i trasactio volumes Volumes per aum (excludig the NHS) Ivoices processed 939k 1,587k Bak Accouts Maaged GL Corporatios 3 32 Purchase Orders 91k 113k Accouts Receivable Ivoices 6k 31k 64 Gettig the best from public sector office accommodatio: case studies

67 case study eightee The solutio 4 The approach to ratioalisatio ad cetralisatio ivolved: choosig the right way to process a particular type of trasactio (the choice beig made o the basis of usig the simplest process that could be applied widely); decidig where to cetralise the work (the decisio by ad large beig made by referece to which locatios had the strogest maagemet team, provided they were ot housed i a high cost locatio such as cetral Lodo); ad adoptig a progressive approach to implemetatio, with the processig cetre actig as a clearig house. The delivery of the trasformatio occurred after moths spet takig stock of the curret operatio, 6 moths detailed plaig ad a 24 moth implemetatio programme. Iitially, resistace to chage was widespread, but i the evet was flimsy. 5 The cetralisatio released sigificat space at each locatio. At the same time as the SSC was beig set up, other major chages were occurrig across BT ad space released was either occupied by other fuctios or the buildig sold. I may cases the settig up of the SSC ad removal of the fiace ad admiistratio work was the startig poit that allowed the busiess to fully exit a property (as the iitial move was followed by other fuctios decidig to cosolidate activity elsewhere). 6 The space requiremet prior to the cetralisatio was estimated to have bee i excess of 400,000 sq ft as compared with a total space occupied ow at all three sites of less tha 75,000 sq ft. Curret space costs are ow o average: 50 per sq ft i the UK (comprisig, approximately: ret 17 per sq ft; rates 5 per sq ft; fixtures ad fittigs 7 per sq ft; operatig costs 21 per sq ft); ad 10 per sq ft i Idia (with similar cost splits). Property strategy cosideratios were also a importat factor i the decisio of MyTravel to make use of the Xasa SSC. Movig the processig work to Xasa s Shared Service Operatios released 26,000 sq ft of space i a low cost buildig that could the be used for work previously performed i a high cost headquarters buildig. 7 Xasa foud that whe implemetig SSCs, four specific challeges eeded to be addressed: Origial build phase I this phase, the major obstacles related to achievig staff reductios whilst maitaiig quality of service ad itroducig improved techologies, processes ad procedures. Volutary redudacy packages ad timely ad ope commuicatios, detailed kowledge trasfer ad traiig plas, ad establishig dedicated teams of process experts were used to achieve this. The result was that the ew SSCs deliver the work of the equivalet of staff usig 650 staff ad achieve upper quartile performace as bechmarked by Hackett. Deploymet of techology. The previous techology was based o the Oracle eterprise reportig system. A dedicated process re-egieerig team focused o optimisig processes aroud Oracle ERP fuctioality cocetratig o self-service ad workflow capability. A user Portal was created to deliver rapid roll out of fuctioality, e learig ad self-help. All services were e eabled thereby providig self service to cliets ad suppliers. The outcome was that sigle istace (per cliet) of Oracle ERP established with full use made of workflow ad related processig tools. Xasa wo the IQPC SSC award for most automated SSC i Delivery of o-techology based productivity gais. A major iitiative i this area was the lauch of a helpdesk dealig with all supplier ad employee based queries to leave the trasactio processig teams free from irregular phoe iterruptios. Xasa made may small to medium impact chages e.g. a Help desk gave efficiecy improvemet from removal of iterruptios to work processes geeratig efficiecies estimated at the equivalet of 20 staff. Multi-cliet servicig. Here the challeges iclude staff trasfers to Xasa, cliet drive redudacies, commercialisatio of service delivery ad developmet of the use of offshore capability. The ew SSC approach eabled Xasa to support two additioal major cliets ad achieve high satisfactio survey scores. Cocers over cofidetiality issues arisig from staff performig processig for more tha oe cliet have bee addressed by: separatio of systems; implemetig strict codes of practice; ad the regular performace of detailed audits. Gettig the best from public sector office accommodatio: case studies 65

68 case study eightee 8 The cetralisatio ad stadardisatio of processig activity ot oly produced space ad staff cost savigs. It sigificatly reduced maagemet overheads give the higher staff-to-supervisor-to-maagemet ratios possible i a highly structured processig eviromet. For example, the curret average maagemet profile is oe maager to 21 staff (icludig team leaders), comparig with a typical historic profile of oe maager beig resposible for 1.6 supervisors, who i tur were resposible for 8.5 staff. Other savigs iclude reduced software licece ad maiteace costs. Importatly, the scale of the cetral operatio made it practicable to ivest i ew techology such as Work Flow software, documet maagemet systems ad self-service fuctioality, all of which have improved productivity (Figure 13). 9 Moitorig of busiess performace is via mothly rollig surveys ad reportig of achievemet o KPIs, Service Level Agreemets ad agreed cost savig targets, plus formal ad iformal reviews of cliet satisfactio. Xasa sets a cost reductio target (of the order of 10 per cet) for its SSO each year, to drive behaviour away from cost recovery to icreased value. The cost reductio targets are delivered by a combiatio of Joit Process Improvemet Teams which are targeted to idetify ad implemet improvemet iitiatives (Case example 2), ad IT developmet ad ehacemet. case example 2 Cost reductio improvemet iitiatives Process re-egieerig (for example, achievig improved fiacial cotrol by re-egieerig the process for local overseas office submissios of ivoices ad receipts). Root cause aalysis (for example, to idetify the reasos why ivoices fail to match first time a improvemet of just oe per cet i the ratio frees up the equivalet of 10 days of effort per moth). Key idicator measuremets (for example, through reviews of ed-to-ed processes to idetify hot spots ad cotrol weakesses). Leaky pipe process breakdow presetatios (for example, to idetify extet ad cause of rejectios ad reduce the cost of supplier query hadlig). Achievemets 10 The programme has substatially delivered all the service ad fiacial beefits evisaged at the outset, icludig: For BT: Icreased maagemet focus o its core busiess, cost reductio (with progress o track to deliver savigs totallig 93m over a 7 year period) ad security of delivery (Xasa has a 99%+ track record of meetig the agreed service levels) For MyTravel: idetificatio of improvemets i the processig of overseas ivoices; ed to ed review of the processes for payig other tour operators, support for the chage of year ed ad itroductio of ew chart of accouts; resolutio of supplier recociliatio issues. The multi-cliet service is plaed to be expaded with the acquisitio of ew cliets such as the NHS ad others curretly uder discussio. With our SSO we provide our cliets with a first class, cost effective fiace ad admiistratio service that is scalable through Idia to meet their growig eeds. I am proud of the people who have helped to brig this about. Mike Wood Xasa F&A Shared Services Director The cetralised SSO ad the use of ew techology meas we ca more readily provide a quality service to a wider group of cliets with each beefitig from our i-depth process kowledge. Jackie Summers Payroll Maager Birmigham For BT the bottom lie is the streamliig of our fiacial systems, makig substatial savigs, improvig the quality of iformatio ad allowig us to cocetrate o our customers. Ia Livigstoe, BT Group Fiace Director 66 Gettig the best from public sector office accommodatio: case studies

69 case study eightee 13 Xasa: The effect o productivity of Purchase-to-Pay Work Flow Tools The reductio i staff costs ad icrease i productivity is illustrated by the itroductio of a Ivoice Approval System. Pre-Work Flow Process Post-Work Flow Process Sort & deliver Post FTE = 3 FTE = 3 Sort & deliver Post Search origiator details ad prepare fax header FTE = 3 Sca ivoice to work queue Despatch FTE = 3 Iput ivoice Iput ivoice header ad place ivoice o hold Work Flow routes to origiator ad maages escalatio Chase origiator Approval Chase origiator Approval FTE Cotracts = 6 3 Way Queries = 15 Receipts = 4 Copy Ivoice = 1 TOTAL = 26 FTE = 5 Oracle approval ru lifts appropriate holds Exceptio query hadlig Release ivoice from Hold FTE = 1 Pre-Work Flow Process = 37.5 Post-Work Flow Process = 11 Image Ivoice FTE = 4.5 Total FTE savig = 26.5 Gettig the best from public sector office accommodatio: case studies 67

70 Layout ad productio by NAO Iformatio Cetre DG Ref: 6733rf Prited by Herosgate