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MANAGING THE CIVIC ESTATE FOR THE PUBLIC GOOD

Less is More: Lean Thinking is Smart

John WorthingtonCo-Founder, DEGW

Director the Academy of Urbanism

www.degw.com

Conferentie MaatschappelijkVastgoed Amsterdam

9thMarch 2011

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Second edition: 2004

Re-thinking the Economy

Context

• Improved productivity through application of ‘intelligent technologies’ reduced jobs

• Global underutilization of capacity & insufficient consumer demand

• Creating consumer demands through credit

2004 “Average UK adult spending 25% more than annual income” through credit

Opportunities

• Add value through creativity & innovation

• Alternative energy economy – decentralised energy regime

• Social economy – empowering the third sector

• Local enterprise – small units, networked co-operatives

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Our Current Position: Reassessment of values and expectations

Shift from capital to revenue

“Most basic material needs are met, other things determine the rise and fall of well being. They include the quality of family life, friendships and the opportunities we have to do things that give lasting satisfaction such as learning, being engaged in creative pastimes and meaningful work”

Do good lives have to cost the earth?

New Economics Foundation 2008

•Think small & Act big

•Bottom-up and Top-down

•Collaborate to Compete

•Co-creation & Co-production

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Information technology has changed the focus of learning

The Internet has changed the notion of place, time and space

New methods of learning and teaching

Student demography changing – life-long learning

Changing financial context – mixed economy

Increased competition - on resources

Student focused – increased participation

Blending of living, learning, working and leisure

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Information Technology has changed the way we work

Puybaraud M. Flexible Working Survey 2009 Johnson Controls

Greater Collaboration and Innovation

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COPENHAGEN half million population Single focus ORESUND 3.5 million population Multi centred across political boundaries

Cities of Imagination

Cities of Convenience Cities of Place

Cities are changing from centres to networks of places

Distributed lifestyles in a network city

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New Paradigm for Real Estate Delivery

Accommodation = Space + Tenure + Services + Amenity

New Offer = Total Experience

“Construction is the solution of last resort”

Boots the Chemist DEGW Architecture, Interiors, Change Management

Shell Learning Centre, NetherlandsTwynstra: ManagementDEGW: Design

Chiswick Park, Developer StanhopeDEGW Research & Building Appraisal

Financial FlexibilityFunctional FlexibilityPhysical Flexibility

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1999 Capitalisation Fixed Assets Revenues Net Income

IBM(Founded 1911)

Microsoft(Founded 1975)

Amazon(Founded 1995)

$11 billion $29 million $609 million $124 million

$407 billion $1.7 billion $19.7 billion $7.7 billion

$214 billion $19.6 billion $61 billion $6.3 billion

Core FlexiOn

Demand

Change the Way we Perceive Property

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EFFECTIVE BUILDING SHELL

• Floor to floor height• Depth• Configuration• Floor loading• Capacity for communications• Skin

• Building

• Space

• Business

• environmental control of building• user control of building

• management of change• monitoring of use• control of access

• internal & external communications• processing & storage of information• presentation of information

• CAFM• LANS & WANS• Building Automation (BA) system• Integrated data systems• Consultancy services

APPLICATIONS OF I.TATTRIBUTES TO REDUCECOSTS AND IMPROVEPERFORMANCE

PROVISION OF INTEGRATINGTECHNOLOGIES ANDSERVICES

DEGW: Intelligent Building Europe - Layers of Intelligence

Reframing problems: Finding appropriate solutions

DEGW: Intelligent Building Europe – Layers of Intelligence

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Sustainability through changing the paradigm

Major Gains Achieved by a Combination of Factors

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Lean Thinking = Integrated Approach

Shell Learning Center - Netherlands

Lean Thinking: Overlapping the Use of Space and Time

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New attitudes to the workplace: individual work is declining

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New attitudes to the workplace: the order of change

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New attitudes to the workplace: the need for multiple worksettings

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New attitudes to the workplace: increased importance of collaboration and the knowledge transfer

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The environment that the organisation chooses to create for itself speaks volumes about its priorities, values and direction.

New attitudes to the workplace: expressing the culture of the organisation

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“Value for Money” – Value depends on values

“Value is a permanent matter, what we value stems from what values we hold and what we choose to value”

•Value =

“Positive value exists for any player when they move in their own terms from what they give up”

• Exchange value

• Use value

• Image value

• Cultural value

• Environmental value

• Social value

• Business value – economic value

Be Valuable – Constructing Excellence

What you get

What you give

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Add Value through Balancing Efficiency, Effectiveness and Expression

EffectivenessMotivation and productivity

Concentration capacity

Accommodate change

Support Interaction

EfficiencyDrive down costs

Space use intensification

Integrate:

Expression

- achieving more with less – direct returnsEfficiency

- value added by imagination – supporting creativity, depend on business context

Effectiveness

- the messages environments convey – reinforce the culture

EXPRESSION

minimising cost

ad

din

g v

alu

e

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Impact on work : 67% decrease in time lost per day 45% faster decision-making Halved email volume $50m increased sales

Achieved double digit growth by using the physical environment & fusion as an enabler to drive innovation

Effectiveness: Support Productivity and Innovation

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Expression: Showcase Brand, Values and Culture

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UK Government has changed perceptions

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Reframe the agenda “Work is what you do, not a place to go”

Rethink the government estate as a strategic whole “The office is rapidly becoming just one of a network of options”

Refocus the mission of government property “Those managing the government estate need to be prepared”

Change perceptions by leadership from the top

Rethought Objectives

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Department for Children, Schools and Families

• All-in-one building would reduce cost by £ 10 million per annum

• Adaptable for change would eliminate cost of churn• Supporting collaboration in and between teams would

increase productivity

• Designed to support government transformation

DEGW Strategic Consultants and Spaceplanners

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• The rationalisation has reduced London space requirement by around 40%

• Eliminated churn cost

• Space is no longer a reflection of status but is regarded as a resource that should be efficiently utilised and should work hard to support users needs.

• More dynamic atmosphere.

• “50% greater sense of energy in London”.

Summary of cost benefits:

– Total cost of project £9m– Cost savings £10m/annum– Churn savings £150,000/annum– Revenue from sublet space £1m/annum

Improved Efficiency and Effectiveness

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The Agenda for Learning Environments

Equivalent to leaving a $200,000 million dollar aircraft sitting on the tarmac for two or three days a week

Yield ManagementIntensify the use of assets – people, technology, space and time

How effectively are we using our schools?Increase the yield: Intensify the use of technology, space and time

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Univer-Cities: The City as a Focus for Study and Learning

Insert image

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Learning in a diversity of settings within new learning landscapes

Knowledgeexchange

City

Advice

Knowledge

Social

Learningspaces

Study

Teach

Skills

Work

Lifestylefacilities

Catering

Sports/Health

Residential

Retail

Transfer

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Rethink space use, ownership and governance

SPECIALIZED

Tailored to specific functions

formal teaching, generally enclosed

GENERIC

Range of classroom types

formal teaching, open and enclosed

access by schedule

INFORMAL

Wide range of setting types:informal and formal, social, open and enclosed

Public, visible, distributed, inclusive

• owned within departments, subject specific

• specialized equipment

• high levels of performance specification

• higher security concerns

• generic teaching settings

• Limited in flexibility by furnishings

• used when scheduled

• encompass richer range of settings

• allow choice

• loose fit, unscheduled

• work as a network of spaces rather than singular settings

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• More collaborative, active learning, hands-on experiences

• Integrated, multidisciplinary

• Blended, learning takes place anywhere/anytime, mobile technology with social activity

• Immersive with simulated or real-world experiences

• Hybrid activities, online with face-to-face, mixed reality

Rensselaer Polytechnic Institute Harvard Simulation Center Chalmers University

New Ways of Learning

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Ravensbourne College – Creating a New Educational Model

level oneopen access

connecting people

level twoprogramme bookable

supporting programmes

level threecollege bookablematching industry

level oneopen access

connecting people

level twoprogramme bookable

supporting programmes

level threecollege bookablematching industry

Stu

dio

Fac

ilit

ies

Tea

chin

g F

acil

itie

s

from suburb…

…to city

• Part college, part lab, part hub for innovation

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Opportunities - New space models

Space will be designed primarily around patterns of human interaction

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Overlap of Public and Private Realm

www.easy.comQuai D’Orsay - Paris

PRIVILEGED

• Discrete• Marketed• Selective• Controlled

SEMI PUBLIC

• Precise fit - “Functional”• Branded• Homogenous• Themed

PUBLIC

• Loose fit – “under-functional”• Organic• Heterogeneous - Diverse• Dominant culture - character

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Thinking Laterally – Invest in Places and People

British Library Kingscross - DEGW Strategic Framework SA Water – Adelaide Briefing and Workplace Strategy: DEGWBuilding and Fit-Out Design: Hassell

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Kings Place – A Hub for Work, Leisure & Culture

Developer: Parabola Land / Architects: Dixon Jones

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Kings Cross: The Hub – Place for meeting, working, learning, innovating & connecting

“Dedicated to inspiring and supporting enterprising initiatives for a better world”

Tiered membership (from 5 hrs per month to unlimited use); membership fees increase for those with turnover of £150,000+ per annum.

Concept: 00 Research