the strategy alignment model: defining real estate strategies in

The Strategy Alignment Model:

Defining Real Estate Strategies in the Context of

Organizational Outcomes

Robert T. Osgood, Jr.

CoreNet Global 2008

The Strategy Alignment Model:

Defining Real Estate Strategies in the Context of

Organizational Outcomes


CoreNet Global 2008

ORGANIZATION OF THE SESSION

Robert Osgood

Section 1: Overview of Applied Research

Section 2: Strategy Alignment Map (Content)

Section 3: SA Map & Content Case Studies

Section 4: Change Management Process

Section 5: Best Practices Benchmarking

Questions throughout the Session

Break

11SECTION ONE

Overview of Applied Research

Robert Osgood

The purpose is to describe the key content and process factors critical to directly aligning place strategy with core business strategy and measuring success in the context of organizational outcomes.

Core Business Strategy


Core Business Enablers w/Place

Core Business Enablers w/Place

THE STRATEGY ALIGNMENT FRAMEWOK

StrategyAlignment

Robert Osgood

Mission & Vision

Products & Services

Customers & Markets

Values & Culture

Core Business Strategy Core Business Strategy Core Business Enablers

Core Business Enablers

Place

People

Technology

FOCUS & BOTTOM LINE VALUE

Cost Savings

Revenue Growth

The greatest opportunity is… The greatest opportunity is…

Robert Osgood

70-80% of Costs

70-80% of Costs

20-30% of Costs

20-30% of Costs

10-20% of Costs

10-20% of Costs

PlaceTech

People

Efficiency & Effectiveness…Strategy that drives organizational outcomes …Strategy that drives organizational outcomes

STRATEGY ALIGNMENT AT ALL LEVELS

StrategyAlignment

Robert Osgood

Organizational Level

Group Level

Individual Level





Portfolio Level

Site & Facility Level

Workplace Level

Consistent with CoRE 2010…

112 of our projects with Fortune 1000 clients and other high performing organizations, comparing differences in…

Robert Osgood

• Analysis of 150 company websites and annual reports…

• Literature review of more than 40 business books and related journal articles…

• 2001, 2004 & 2007 Surveys and focus groups with 250+ Fortune 1000 companies, and interviews (separate from projects) with 25 CEO’s and other C – Suite members…

METHODOLOGY

Pre change measurement of CBS & CBE strategy… Pre change measurement of CBS & CBE strategy…

...Post change measurements of CBS & CBE strategy

...Post change measurements of CBS & CBE strategy

FOUR FUNDAMENTAL QUESTIONS & THREE MEASURES

Robert Osgood


Performance


PerformanceSuccessful Projects

Successful Projects

Content

Process

Benchmarking

- -- -- -- -

- -- -

Level of CBS - CBE Alignment


- -- -

- -- - - -- -

- -- -

- -- -

Q1

Q2

Q3

Q4

Robert Osgood


Performance



Successful Projects

Content

Process

Benchmarking

+ 2 - 25% + 2 - 25%

+ 20% + 20%

+ 14% + 14%

- -- -- -- -

- -- -



+ 15 - 18% + 15 - 18%

- -- -

- -- - - -- -

- -- -

- -- -

OVERALL RESULTS

(+3 – 9% norm)

Robert Osgood

Core Business Strategy Performance Core Business Strategy Performance

Content (CBS + 2 - 25%) (CBS + 2 - 25%)

THE 3 INTERRELATED DRIVERS OF PERFORMANCE

1. Cost Savings & Revenue Growth Balance


2. Principal Drivers, Value Chain & Groups


3. Functional Group

Patterns

3. Functional Group

Patterns

A FEW OF THE CONTRIBUTORS TO THIS WORK

SC JohnsonRR DonnelleySnap-onIBMABN AMROBlue Cross Blue ShieldSchneider NationalLake Shore National BankFleet Financial GroupUDVJohnsonDiverseyProcter & Gamble Eli Lilly John Deere CreditFamous FootwearGTEDozens of Confidential Clients

Dade BehringChevron

Anheuser-BuschHarley Davidson Financial ServicesSCJ Customer & Financial Services

Moore Business FormsHoffmann - La Roche

AT&TPNCICC

NCRPacific Bell

KajimaSherwin Williams

PhilipsFifth Third Bank

Alcoa

Robert Osgood

RECENT & UPCOMING PUBLICATIONS

Robert Osgood

Journal of Corporate Real Estate

Business First

FMJ Corporate Real Estate Leader

Site Selection

McMorrow Report

3 new pieces on S.A. & Innovation in 2008-09

CONTEXT: THE REAL ESTATE VALUE CHAIN

Occupancy & Workplace

Strategy

Occupancy & Workplace

Strategy

Robert Osgood

Acquisition, Disposition,

Design & Build


Design & Build



Asset Management

Asset Management

Strategy is the first step in an ongoing value chain of interrelated real estate

activities that support, but are separate from the core business…

RE-SETTING THE CONTEXT AS A BUSINESS VALUE CHAIN

Robert Osgood

…Again, we’ll explore real estate in a broader context…as Place is linked with People and Technology as integrated enablers ( IRIS in

CoreNet vernacular ) of core business strategy

Tech Tech Place

People People




Core Business Enablers ImplementationImplementation

Ongoing Operations Ongoing

OperationsAcquisition, Disposition,

Design & Build Asset Management

THREE DISTINCT REAL ESTATE MODELS

Robert Osgood

Tech Tech Place Place

People People







Strategy Alignment

Model

Services Model

Transactional Model

ImplementationImplementationOngoing

Operations Ongoing

Operations

7 CHARACTERISTICS OF THE MODELS…

TransactionalStrategy

Alignment

Focus & Value

Driver

Skill Integrator

Robert Osgood

Services

Project Needs

TechnicianAnalyst

FromTo

Multidisciplinary


Vision Consulting ModelIntegrated Business Model

Architect & Broker Schemes

Org Outcomes: Cost Savings & Revenue Growth

The Best Deal: RE Cost Savings

Org Cost Savings

Downstream Market Economics

1

2

3

4

…7 CHARACTERISTICS OF THE MODELS


Alignment

Bench marking

Involve ment

Robert Osgood

Services

C – Suite as Sponsors

FromToC – Suite as Participants

Process Technical Activities

Broader Change Test Ideas

Org – Specific Best Practices & Questions

Generic Real Estate Statistics

Org Cost Savings

C – Suite as Decision Makers

5

6

7

Management

CHALLENGE: EXTERNAL VS INTERNAL INCENTIVES


Alignment

Why?

CRE’s Who Actually Use Each

60% 10%

Robert Osgood

Services

30%

Market Goal is to Stay Here

FromTo

CRE/ Organization Goal is to be Here

Conflict !

CHALLENGE: PRACTICE FOCUS

Robert Osgood


People People








Operations Ongoing

Operations

5% 5% 30%30%5%5%

CBS Source: Gary Hamel in Competing for the Future & CBE Source: 2001, 2004 & 2007 Osgood Surveys

CBE Source: 2004 & 2007 Osgood Survey

60%60%

The C-Suite and CRE’s don’t spend a significant amount of time on strategy…

CHALLENGE: RESEARCH FOCUS

Robert Osgood


People People








Operations Ongoing

Operations

10% 40% 50%

Source: 2007 Osgood Survey & literature review

…There is very limited research that truly aligns CBE with CBS & CBS measures

WHERE WE BEGAN: 3 SCHOOLS OF BUSINESS STRATEGY*

Robert Osgood

Focus Strategy

1. Instrumentalist

2. Empirical

3. Rationalist

Terms

Leaders

EnvisionFrame & Align

PositionMap

Patterns

HamelPorter

Kaplan & Norton

OperationalEfficiency

EnhanceReengineer

TQMProgramPrescribe

HammerDeming

OrganizationalEffectiveness

EmpowerLeadership &

TrustLearning

OrganizationValues & Culture

SengeCovey

* Mintzberg (‘98) and others have made even finer classifications that result in 4-9 schools.

PORTER’S ACTIVITY MAPPING

Robert Osgood

IKEA

Limited Customer

Service

Suburban Location

Store Design

Matches Mfg.

Limited Sales

StaffingSelf-

Assembly

Modular Furniture Design

Self- Transport

Self- Selection by Customers

Ample Inventory

Low Manufact- uring Cost

High- traffic store layout

100% Sourcing

Long- Term

Year- Round

Stocking

Most Items in Stock

Variety & Ease of

Mfg.

Knock- down

Packaging

Ease of Assembly

Catalogues & Displays Strategic Themes

Source: HBR Nov – Dec 1996

ACTIVITY MAPPING & STRATEGY ALIGNMENT

Robert Osgood

IKEA

Limited Customer

Service

Suburban Location

Store Design

Matches Mfg.

Limited Sales

StaffingSelf-

Assembly

Modular Furniture Design

Self- Transport

Self- Selection by Customers

Ample Inventory

Low Manufact- uring Cost

High- traffic store layout

100% Sourcing

Long- Term

Year- Round

Stocking

Most Items in Stock

Variety & Ease of

Mfg.

Knock- down

Packaging

Ease of Assembly

Catalogues & Displays Mission & Vision

Source: HBR Nov – Dec 1996

Real Estate

Distinctive Competencies

Customers & Markets

Products & Services

HAMEL’S CORE COMPETENCIES

Robert Osgood

Envision

Banner Brand

Business Units

Core Products (Platforms)

Core Competencies

Source: Competing for the Future, 1994

CORE COMPETENCIES & STRATEGY ALIGNMENT

Robert Osgood

Envision

Banner Brand

Business Units

Core Products (Platforms)

Core Competencies

Mission &Vision

Products & Services

Customers & Markets

Values & Culture

KAPLAN & NORTON’S BALANCED SCORECARD

Robert Osgood

Causal Relationships in the Service Profit Chain

Financial

Customer

Internal/Business Process

Learning and Growth

Source: The Balanced Scorecard, 1996 & 2006

ROCEROCE

Customer Loyalty

Customer Loyalty

On-time DeliveryOn-time Delivery

Process Quality

Process Quality

Process Cycle TimeProcess

Cycle Time

Employee Skills

Employee Skills

THE BALANCED SCORECARD & S.A.

Robert Osgood

Products & Services

Customers & Markets

Values & Culture

Mission &Vision

Causal Relationships in the Service Profit Chain

Financial

Customer

Internal/Business Process

Learning and Growth

Source: The Balanced Scorecard, 1996 & 2006

ROCEROCE

Customer Loyalty

Customer Loyalty

On-time DeliveryOn-time Delivery

Process Quality

Process Quality

Process Cycle TimeProcess

Cycle Time

Employee Skills

Employee Skills

THE 3 SCHOOLS & THE SA FRAMEWOK

Robert Osgood

3. Rationalist Model3. Rationalist Model

CRE/FM as multidisciplinary integrator (CEO)CRE/FM as multidisciplinary integrator (CEO)

CRE/FM as capital planner (CFO/COO) CRE/FM as capital planner (CFO/COO)

CRE/FM as spatial change agent (CHRO/CKO) CRE/FM as spatial change agent (CHRO/CKO)

2. Empirical Model 2. Empirical Model

1. Instrumentalist Model1. Instrumentalist Model

2SECTION TWO

Robert Osgood

Strategy Alignment Map

Change Management Process

Best Practices Benchmarking

(Content)

SO AGAIN, ELEMENTS OF THE STRATEGY ALIGNMENT MAP

Robert Osgood

Mission & Vision

Products & Services

Customers & Markets

Values & Culture

Core Business Strategy Core Business Strategy Core Business Enablers


Place

People

Technology

Robert Osgood

Products & Services

Customers & Markets

Values & Culture

Mission &Vision

Core Business Core Business EnablersStrategy Measure Measure

16 Elements 17 Elements 19 Elements 17 Elements

Strategy

Imagine that each of the grey boxes has a statement and/or number that describes a specific strategic element or measure…organized as a series of causal relationships

Imagine that each of the grey boxes has a statement and/or number that describes a specific strategic element or measure…organized as a series of causal relationships

STRUCTURE OF A STRATEGY ALIGNMENT MAP

THE COMPOSITION OF MOST S.A. MAPS

Robert Osgood

Products & Services

Customers & Markets

Values & Culture

Mission &Vision

Strategy Measure Strategy MeasureCore Business Core Business Enablers

25.25.25.

1.1.1.

25.25.25.

1.1.1.

Consistently there are 15 - 25 strategic elements that describe unique competitive advantage…

Consistently there are 15 - 25 strategic elements that describe unique competitive advantage…

THE “40 - 30” BANK OF S.A. MAP ELEMENTS

Robert Osgood

Products & Services

Customers & Markets

Values & Culture

Mission &Vision


10 Elements of People and the processes they employ

8 Elements of Technology

12 Elements of Place

5 Elements that Define the Value Proposition

5 Elements of Growth & Change

10 Types of Innovation

5 Types of Segment Focus

8 Types of Support Competencies

7 Elements of Internal & External Beliefs


THE 40 ELEMENTS IN DETAIL

Robert Osgood

Mission &Vision


Purpose

Aspirations

Position

Finance & Investment

Risk Management

Value PropositionValue Proposition


Robert Osgood

Products & Services

Customers & Markets


Organic Growth

M&A Growth

Partnership Growth

In-Co-Out Sourcing

Organic Contraction & Divestitures

Growth & ChangeGrowth & Change


Robert Osgood

Products & Services

Customers & Markets


Disruptive Innovation

Product/Service Innovation

Application Innovation

Process Innovation

Customer Innovation

Experiential Innovation

Brand Innovation

Networking Innovation

Business Model Innovation

Organization Innovation

InnovationInnovation


Robert Osgood

Products & Services

Customers & Markets


New & Existing Customer & Market Balance/Mix

New & Existing Product & Service Balance/Mix

Industry/Category Focus

Territorial Focus

Supplier Focus

Segment FocusSegment Focus


Robert Osgood

Products & Services

Customers & Markets


Recruit & Retain People

Legal, Regulatory & Compliance

Corporate Governance

Environment, Health & Safety

Intellectual & Physical Security

Internal & External Research

Internal & External Platforms

Environmental Sustainability

Support CompetenciesSupport Competencies


Robert Osgood

Values & Culture


Philosophy & Core Beliefs

Leadership Style

Norms, Policies & Procedures

Work - Life Balance

Employee Relations

Societal & Community Relations

Institutional & Trade Relations

Internal & ExternalInternal & External

THE “40 - 30” BANK OF SA MAP ELEMENTS

Robert Osgood

Products & Services

Customers & Markets

Values & Culture

Mission &Vision


10 Elements of People and the processes they employ

8 Elements of Technology

12 Elements of Place

5 Elements that define the Value Proposition

5 Elements of Growth & Change

10 Types of Innovation

5 Types of Segment Focus

8 Types of Support Competencies

7 Elements of Internal & External Beliefs



Robert Osgood


Mission, Vision & Goals

Organization Structure & Growth

Collaboration & Communication Network

Group Workflow

Job Design & Individual Activities

Salary & Benefits

Career Development, Learning & Growth

Demographics, Gen- Per & Skills

Standards & Practices

Change Management

PeoplePeople


Robert Osgood



Technical Infrastructure

Communication, Information & Automation Systems

Fixed & Mobile Tools

Security


Standards & Practices

Change Management

TechnologyTechnology


Robert Osgood


Portfolio Pos/Value, Fin & Risk

Site/Facility Components & Flex

Location (s)

Floor Area

Group/Floor Layout & Support

On/Off-Site Ind Workspaces

Common Facilities & Amenities

Site/Arch/Eng/Int Systems


Standards & Practices…C. Mgmt.

PlacePlace


TOP 10 CORE BUSINESS ELEMENTS

Robert Osgood

Products & Services

Customers & Markets


Mission & Vision

Values & Culture

Position

Growth & Change

Customer Innov.

Fin., Inv. & Risk

Recruit & Retain

Brand Innovation

P&S Innovation

Process Innov.

Core Beliefs

Work-Life

Of the 40, there are 10 Core Business

Elements that appear consistently as drivers across companies and industries - of course in

ways unique to each organization

THE TOP 10 CBS ELEMENTS WITH KEY MEASURES

Robert Osgood

Products & Services

Customers & Markets


Core Business Measures

Mission & Vision

Values & Culture

Position

Growth & Change

Customer Innov.

Fin., Inv. & Risk

Process Innov.

Brand Innovation

P&S Innovation

Core Beliefs

Work-Life

Shareholder Value…

Cap & Oper Costs…

Cust Sat & Retention…

Speed to Market…

Cycle Times…

Sales from Banner …

Job Satisfaction…

Corp. Value Identity…

Recruit & Retain

… Job Flex & Growth

…Leverage Banner

…Cycle Improvements

…Sp. & Quality to Mkt.

…Cust Sat & Growth

…Intellectual CapitalQuantitative Levels…

… Empowerment

…Market Share & MixUtilization & Prod…

…Sales & Profits

Cost Savings Revenue Growth

OVERALLL COST VS GROWTH FOCUS BY CBS…

Robert Osgood

Products & Services

Customers & Markets



Mission & Vision

Values & Culture

Position

Growth & Change

Customer Innov.

Fin., Inv. & Risk

Process Innov.

Brand Innovation

P&S Innovation

Core Beliefs

Work-Life


Cap & Oper Costs…


Speed to Market…

Cycle Times…


Job Satisfaction…


Recruit & Retain


…Leverage Banner


…Sp. & Quality to Mkt



… Empowerment


…Sales & Profits


Robert Osgood

Products & Services

Customers & Markets



Mission & Vision

Values & Culture

Position

Growth & Change

Customer Innov.

Fin., Inv. & Risk

Process Innov.

Brand Innovation

P&S Innovation

Core Beliefs

Work-Life


Cap & Oper Costs…


Speed to Market…

Cycle Times…


Job Satisfaction…


Recruit & Retain


…Leverage Banner





… Empowerment


…Sales & Profits


…AND WHEN COST IS EMPHASIZED…

Robert Osgood

Products & Services

Customers & Markets



Mission & Vision

Values & Culture

Position

Growth & Change

Customer Innov.

Fin., Inv. & Risk

Process Innov.

Brand Innovation

P&S Innovation

Core Beliefs

Work-Life


Cap & Oper Costs…


Speed to Market…

Cycle Times…


Job Satisfaction…


Recruit & Retain


…Leverage Banner





… Empowerment


…Sales & Profits


…VERSUS, WHEN GROWTH IS EMPHASIZED

Post Change

FINDINGS: ENHANCED CBS & CBE ALIGNMENT

Robert Osgood

Pre Change

Alignment at 59% Alignment at 59%

CBS & Measures CBE & Measures

Post Change 76%

or +17% 76%

or +17%

Pre Change

Alignment at Alignment at

Q1

Balanced Focus

FINDINGS: ENHANCED CBS & CBE ALIGNMENT

Robert Osgood

Efficiency (Cost)

Cost Savings

Revenue Growth

Effectiveness (Quality)

Primary Focus

Primary Focus

Primary Focus…Or + 18%…Or + 18%

Alignment at 79%... Alignment at 79%...


…Or +15% …Or +15%


Balanced Focus …Or + 17%…Or + 17%

Primary Focus


Q1

Robert Osgood

Efficiency (Cost)

Cost Savings

Revenue Growth

Effectiveness (Quality)

Primary Focus

Primary Focus

Primary Focus

Balanced Focus


Balanced Focus

Primary Focus

FINDINGS: ENHANCED CBS PERFORMANCE

Overall Performance Overall Performance



Up 3-6%Up 3-6%

Up 4-7%Up 4-7%

Up 5-9%Up 5-9%

Q2

We sorted the information above and throughout this section along a number of dimensions. Four key areas in which we did not find significant differences were sorts by Industry, Organizational Structure, Generational and Gender issues.

Robert Osgood

Products & Services

Customers & Markets


Mission & Vision

Values & Culture

Position

Growth & Change

Customer Innov.

Fin., Inv. & Risk

Recruit & Retain

Brand Innovation

P&S Innovation

Process Innov.

Core Beliefs

Work-Life

Facility Image

Change Mgmt.

Port Pos., Value, Cost & Risk

Floor Area & Occupancy

Location & Occ.

Amenities

Ind. Workspaces

Layout & Supp.

People Technology Place


ALIGNMENT OF TOP 10 CBS & PLACE ELEMENTS

Yes, there are some obvious

individual connections…

…SO WE STUDIED THE TOP 10 CBS & PLACE LINKS

Robert Osgood

P&S

C&M


M&V

V&C

Position

Growth & Change

Customer Innov.

Fin., Inv. & Risk

Recruit & Retain

Brand Innovation

P&S Innovation

Process Innov.

Core Beliefs

Work-Life

Floor Area

Flex CF & Amen. Ind. WS

Port Pos…

Fin & Risk Location Tech

ToolsInfra Layout

& Supp.

More Organizational Level… …More Group & Individual Level

We found patterns of alignment…

We found patterns of alignment…

…rather than individual

correlations…

…rather than individual

correlations…

THE THREE PRIMARY P-T-P PATTERNS

Robert Osgood

Dynamic Group

Modular Group

Linear Group

Ambiguous problems with innovative solutions

Complex problems with unique solutions

Familiar problems with known solutions

EXCERPTS OF P-T-P PATTERNS

Robert Osgood

Dynamic (Innovative)

Revenue growth & performance…

Percentage of Time Used Percentage of Time Used

Collaboration Network & Location

Collaboration Network & Location

Linear (Familiar)

Modular (Complex)

Group Workflow, Layout & Support

Group Workflow, Layout & Support

Job Design, Individual Activities & On/Off-Site Workspaces

Job Design, Individual Activities & On/Off-Site Workspaces

15%

Broad collaboration network & multidisc co-loc/integration…

Balance of team & individual activities in MAS…

Unconventional jobs extended offsite via tech…

65%20%Cost Savings & execution…

Ltd collaboration network & single disc co-location…

Individual activities in std, ergonomically focused environ…

Conventional jobs performed onsite…

Balance, but more like Dynamic

Mission & Vision Mission & Vision

Control over team collaboration & individual concentration…

PEOPLE & TECHNOLOGY CHARACTERISTICS IN DETAIL

Robert Osgood

DynamicFocus more on revenue growth & reward for performance

Unconventional, dynamic individual job activities & roles w/long hours

Mission & VisionMission & Vision

Growth Growth

Collab. NetworkCollab. Network

Change MgmtChange Mgmt

Frequent, often dramatic shifts in headcount

Ongoing & informal interaction, often about custom, tacit information

Expansive, multi-disciplinary, internal & external collaboration network

Leaders as coaches who reward collaboration

Linear Modular

Networked-virtual structure around processes across disciplines & org chart

Balance of team communication & individual concentration

Emphasis on professional content individual job activities

Balance of rev. growth & cost savings, reward for performance & complianceHierarchical-networked-virtual structure around/across overall organization chartPredictable, moderate to dramatic shifts in headcount

Broad, hierarchical-oriented internal & external collaboration networkA mix of interaction types, often more formal than informal about custom & routine, tacit and explicit information

Well-defined individual job activities & roles with long hours

Emphasis on professional & managerial content individual job activities

Emphasis on individual concentration with varying team communication

Diverse expectations beyond the job

Leaders as technicians & administrators who reward tech depth

Focus more on cost savings & task executionHierarchical-networked, around person to person processes within disciplinesPredictable, moderate shifts in headcount

Limited single-discipline/department collaboration networkBrief informal & formal meetings & technology exchange often about routine, explicit information

Well-defined, static individual job activities & roles w/ shifts & job sharing

Balance of professional & admin content individual job activities

Focus on individual concentration & small team communicationLeaders as administrators who reward task execution

Expectations for professional equality

Extend primary onsite work with a variety of offsite activitiesVast majority of work is completed onsite

Group Workflow Group Workflow



Org StructureOrg Structure

Career DevCareer Dev

Globally integrated IT systems & wide-range of fixed & mobile A/V toolsGlobally integrated IT systems & wide- range of fixed & mobile voice tools


Participants & leaders of change management processes

Leaders & participants of change management processes

Participants & responders to change management processes

Development around individual, intrinsic professional growthDevelopment around new systems & procedures

Convenient access to a high quality workforce, services and institutions

Flexible layout & support around a multiple activity setting environment

PLACE CHARACTERISTICS IN DETAIL

Robert Osgood

DynamicLinearMission & VisionMission & Vision

Components & Flexibility Components & Flexibility

LocationLocation

CF & AmenitiesCF & Amenities

Modular

Flexible hierarchy of space from public to private zones w/surge spaceKey multi-disciplinary/dept groups are co-located/integrated; others nearby

A wide range of formal & informal places for interaction

Spatial balance of team and individual space

Leaders typically co-located with their teams & peers

Wide range of common facilities & on/off-site amenities

Workspace standards primarily by function, with several layout options

Emphasize corporate-specific over market flexible facilities

Workspace standards by function & entitlement, w/ a few layout options

Workspace standards by function & entitlement, with several layout options

Hierarchy of space from public to private zones w/ some surge spaceKey, typically single-discipline/dept, groups are co-located; others nearby

A range of formal & informal interaction & meeting places

Spatial focus on individual workspaces

On-Site workspaces with a range of flexible off-site tools & spaces

Enclosure flexibility for control of collaboration & concentration

Balance of corporate - specific & market flexible facilities

Hierarchy of space from public to private zones w/minimal surge space Key, typically single- discipline/departments are co-located

Range of traditional meeting places & small interaction settings

Basic on-site common facilities & some value-added amenities

Virtually all on-site workspaces with limited off-site tools & spaces

Enclosure flexibility for control of noise & visual distractions

Emphasize market flexibility over corporate specific facilities

Spatial focus on sequence of individual workspaces

Range of common facilities & on/off- site amenities

Leaders typically co-located with their teams

Balance of leaders co-located with their teams & with peers

Group Layout & Support


Individual On/Off- Site Workspaces


Flexible layout & support around a standard or MAS environment

Flexible layout & support around a standard environment

Place as a tool to drive business growth at the lowest possible cost

Place as enabling support, balancing cost & growth

Place as a cost to be minimized without inhibiting business growth

Flexible infrastructure focused on changing org, team & individual needs SystemsSystems

Change MgmtChange Mgmt Participants & leaders of change management processes



Flexible infrastructure focused on team & individual consistency

Flexible infrastructure focused on individual consistency

Locations convenient to a high quality workforce, services and institutions

Market Research & Product Development


R&DR&D Des & EngMarketing Mktg Research

PurchasingSupply ChainOperations

SalesCustomer Service: Facing CS: Remote

Exec LeadershipFinanceFin & Accounting SupportLegalRegulatory & ComplianceHR & ODHR BenefitsIT DevelopmentIT Program & SystemsFacilities & Real EstateAdmin Services & Misc.

Corp Groups By P-T-P Color Value Chain

20 CORPORATE GROUPS & PATTERNS IN VALUE CHAIN… …Variation within & between organizations

Source, Manufacture/ Produce & Distribute


Market, Sell & Service


Robert Osgood



R&DR&D Des & EngMarketing Mktg Research

PurchasingSupply ChainOperations

SalesCustomer Service: Facing CS: Remote

Exec LeadershipFinanceFin & Accounting SupportLegalRegulatory & ComplianceHR & ODHR BenefitsIT DevelopmentIT Program & SystemsFacilities & Real EstateAdmin Services & Misc.

Corp Groups By P-T-P Color Value Chain

GREATEST OPPORTUNITY FOR IMPACT & IMPROVEMENT… Groups with well defined missions, processes and objective measures





Robert Osgood

Robert Osgood

Dynamic Group

Modular Group

Linear Group

Ambiguous problems with innovative solutions… Emphasizing the entire workplace

Complex problems with unique solutions… Connecting groups & individuals

Familiar problems with known solutions… An assembly line of individual spaces

SPATIAL REPRESENTATIONS OF THE GROUPS

FINDINGS: CBS COST AND GROWTH ALIGNED WITH SPECIFIC P-T-P PATTERNS

Robert Osgood

Cost Savings Rev Growth Linear Modular Dynamic

Primary Focus & Performance Up 5-9%

Primary Focus & Performance Up 3-6%

Range

Range

P - T - P Pattern

(Where Most Groups Are)

Balanced Focus & Performance Up 4-6%

Range

Q2

CBS & Measures

Robert Osgood

CBS Principal Driver & Group Linear

Cost Savings

Revenue Growth

Range

Range

Modular Dynamic

Customer Sat & Growth Up 3-5%

Customer Service Remote Groups

Focused on Customer Innovation

Range


FINDINGS: PRINCIPLE DRIVERS, VC/GR & PATTERNS

P – T – P Pattern

Customer Service Remote Groups

Focused on Retention

Turnover Decreases 12-25%

Intellectual Capital Increases 5-10%

Q2

Robert Osgood


Cost Savings

Revenue Growth

Speed to Market Improves 8-12%

Range

Range

Modular Dynamic

Speed & Quality to Market Improves 5-9%

RD&E & Marketing

Groups Focused on

P&S Innovation

Range


FINDINGS: PRINCIPLE DRIVERS, VC/GR & PATTERNS


RD&E & Marketing

Groups Focused on Recruitment & Retention

Intellectual Capital Increases 2-5%

Q2

Robert Osgood

CBS Principal Driver & Group People

Revenue Growth

Multidisc. Collaboration Network of 4 - 7 Groups

Technology Place


RD&E & Marketing

Groups Focused on

P&S Innovation

INSIDE THE NUMBERS

Excerpt of Dynamic Pattern

Control over Individual Concentration & Group Collaboration

Co-Location of 3 - 5 Multidisc. Groups

Enclosure Control for Individual & Group Activities

Q2

Integrated Fixed & Mobile A/V Tools

Range of interaction settings

Ongoing interaction re: tacit info

Robert Osgood

COLLABORATION NETWORK & CO-LOCATION

Levels of Co- Location with 3-5 groups…

On Same or Adjacent Floor*

Within 2-3 Floors*

Same Building

Same Site

Elsewhere

+

-

+

+ N

+ +

+N**

-

**New research suggests there’s an advantage to having 1 or more groups in a separate location with Tech (HBR).

*25-50,000 SF Floors

…with Integrated A/V Tech Tools

…without Integrated A/V Tech Tools

Q2

Robert Osgood

RD&E & Marketing

Groups Focused on P&S

Innovation

CONCENTRATION, COLLABORATION & ENCLOSURE

Standing Ht Partitions w/Door & Ceiling

Enclosure Control for Individual Concentration & Team Collaboration…

Standing Height Partitions w/Door

Seated Height Partitions

Below Seated Ht or Open Bullpen

Standing Ht Partitions without Door

+

+

N

-

Q2

…without Range of Interaction Settings

…with Range of Interaction Settings

N

-

-

+

In a smaller sample we also sorted by extroverts and introverts and did not find a statistically significant difference.

Robert Osgood

RD&E & Marketing

Groups Focused on P&S

Innovation

ENCLOSURE CONTROL + & ALL 3 P-T-P PATTERNS

Standing Ht Partitions w/Door & Ceiling

Enclosure Control for Individual Concentration & Team Collaboration…

Standing Ht Partitions w/Door

Seated Ht Partitions

Below Seated Ht or Open Bullpen

Standing Ht Partitions without Door

Linear Modular Dynamic

+

+

+

-

+

++

N

-

+ N

-N / -

Q2

…with a Range of Interaction Settings

= Where most groups start from.

Control means slightly different things for the groups

Robert Osgood


Cost Savings

Revenue Growth

Range

Modular Dynamic


RD&E & Marketing

Groups Focused on

P&S Innovation


BACK TO THE OVERALL RESULT


RD&E & Marketing

Groups Focused on Recruitment & Retention

Q2

BOTTOMLINE BENEFIT OF STRATEGY ALIGNMENT…

Robert Osgood

Customers & Markets

Place MeasureStrategyCore Business Enablers

Product & Service Innovation


Speed & Quality to Market

5-9% increases in both have equated to annual revenue increases of 3-4%. For a $5 B company that’s worth $150M - $200M of revenue growth.

MeasureCore Business

Products & Services

…VS TRADITIONAL UNALIGNED PLACE COST SAVINGS…

Robert Osgood

Customers & Markets

Place MeasureStrategyCore Business Enablers



MeasureCore Business

Products & Services

A Key Measure: RE Operational Costs

Typical annual savings range from 8%-12%

For a $5B Company with 2M SF of space costing $25/SF to operate, that’s $4M - $6M of place savings that can be used to fund “unaligned” core business strategy

…BACK TO THE MODELS FOR ANOTHER VIEW OF VALUE

Robert Osgood


People People

Core Business

Core Business



Strategy Alignment Services Transactional Integrated P-T-P

strategies that helped drive revenue growth &

cost savings of $150M - $200M for organizations on several projects

Portfolio cost savings of $4M - $6M (Still important, just not as much impact)




Operations Ongoing

Operations

3SECTION TWO

Robert Osgood

Map & Content Case Studies



Theory & Practice

Robert Osgood

Products & Services

Customers & Markets

Strategy Measure Strategy

CASE STUDY 1: Innovation Speed & Quality to Market

Core Business Core Business Enablers

Organize around market & product categories


Co-locate Marketing, R&D, Sales, & Ops


Ideation groups in multidisciplinary teams


Redefine team and individual jobs


More quality products to market

& cycle times reduced by 15%

Impact:$50 M Net Sales/Year




Eight flexible team layouts


Consistent, function- focused workspaces with

new tech tools


new tech tools

CASE STUDY 1: Innovation Speed & Q. to Market S.A. Map

Robert Osgood

Products & Services

Customers & Markets

Values & Culture

Mission &Vision

Core Business Core Business EnablersStrategy Measure Strategy Measure


…A 2005 UPDATE TO THE HQ STRATEGY…

15 interviews and 80 pages of notes…

…Distilled into 5 user-friendly pages of Initial Findings

Robert Osgood

…AND THEN IN ’06, AN UPDATED TWO PAGE S.A. MAP…

…Driving dramatic and aligned changes in real estate strategy

Dramatic changes in the business…

Robert Osgood

…FOLLOWED BY APPLICATION TO AN EUROPEAN SUB

Access to the overall corporate S.A Map as a common communication tool…

… Allowed the team to meet via two videoconferences to plan a new head office

Robert Osgood

Robert Osgood

Products & Services

Customers & Markets

Values & Culture


CASE STUDY 2: Job & Business Transformation


Merge N.A. & European customer service

Merge N.A. & European customer service

Consolidate from 8 to 3 locations in N.A. &

Europe

Consolidate from 8 to 3 locations in N.A. &

Europe

From clerical processing to professional service

From clerical processing to professional service

Job sharingJob sharing

Annual turnover reduced from 50%

to 5% Impact:$50 M

Annual turnover reduced from 50%

to 5%Impact:$50 M

Proximity to trans. in diverse areas

Proximity to trans. in diverse areas

Value-added amenitiesValue-added amenities

Enhanced recruitment & training

Enhanced recruitment & training

Enhance life-work balance

Enhance life-work balance

6 professional-based workspaces & tech

6 professional-based workspaces & tech

CASE STUDY 2: Job & Business Transformation S.A. Map

Robert Osgood

Products & Services

Customers & Markets

Values & Culture

Mission &Vision



Strategy

ORIGINAL STRATEGY ALIGNMENT MAP

Brand is DrawCorporate Specific Facility

Quickly Growing Beyond

Traditional Markets

New Locations

Independent Groups

Flexible Layouts

Professional Environment

Functional Workspace

Life-Work Balance

Employee Focused

Amenities

Robert Osgood

Mission & Vision

Customers & Markets

Products & Services

Values & Culture

Core BusinessCore Business

Enablers

Identify Strengths The Right Fit

Great Managers

Engaged Employees

Engaged Customers

Sustainable Growth

Real Profit Increase

Stock Increase

Source: Follow This Path, C. Coffman (of Gallup), 2002.

Moving from clerical to professional activities that require:

• More training

• More individual control over concentration and collaboration

• Larger personal and layout space

• More access to meeting space

• More user-friendly, less- obtrusive technology

TRANSITION TO A MORE PROFESSIONAL CALL CENTER ENVIRONMENT

Robert Osgood

INDIVIDUAL JOB FUNCTIONS

JOB TYPESCRITERIA ACTIVITY TYPE A TYPE B TYPE C

TIME & PLACE % in building 80% 90% 95%

% in workspace 50% 80% 90%

PRIVACY Speech high moderate moderate

Visual high high low

PAPER & MACHINE Reading, writing, thinking

Computer

Document review

Telephone

Printer

MEETINGS With 1-2 guests Quick / informal Informal

With 3+ guests

% meeting outside office 20-40% 30-50% 30-50%

STORAGE Letter / Legal papers

Manuals / Notebooks / Reference

Robert Osgood

GAP ANALYSIS Growth & Operational Relationships

Robert Osgood

25,0000 SF Floors

…Excess floor area

requirement of 12,000 SF

and no access to

other floors

Other Occupant

Other

Shared Functions

Group A/24,700 SF

Group E/27,550 SF

C/14,250

Group B/32,300 SF

D/14,000 Other

Several groups have current and

future operational

relationships that can’t be satisfied…

Spec/Market-Focused Facility VS. Corporate-Specific Facility• Simple building geometry and basic main entrance vs. • Complex building geometry and enhanced main entrance

• Standard building materials, finishes, colors and graphics vs. • Brand-specific materials, finishes, colors and graphics

• Maximum floor entry exposure to the core in center vs. • One or two main entries from the core (often offset)

• 25,000 RSF floorplates vs. • 30 - 40,000 RSF floorplates, or larger

• 30-40’ deep core to window dimensions vs. • 40 - 45’, or deeper, core to window dimensions

• Floor perimeter planned for a 15’ private office zone vs. • Floor perimeter flexibility for in and out board offices

• Vertical circulation is not critical vs. • Vertical circulation is critical

• Standard 2x4 or 2x2 direct ambient lighting vs. • Indirect ambient and direct task lighting

• Standard acoustic ceiling and partitions vs. •Highly absorbent ceiling and partitions

• Standard panel-hung furniture systems vs. • User-specific furniture systems

• Standard building materials vs. • Sustainable building materials

KEY BUILDING GUIDELINES TO SUPPORT THE ORGANIZATION

Robert Osgood

Inboard Offices

CONCEPT DEVELOPMENT

Robert Osgood

An Office Intensive Floor

SPACE PLANNING FROM THE INSIDE-OUT

Robert Osgood

A Workstation Intensive Floor


Robert Osgood


PRIVATE OFFICE

COPY/FILE /FAX

MEETING SPACE

SUPPORT

TRAINING

LUNCHROOM

CONFERENCE HALL

A Workstation Intensive Floor

Robert Osgood

THE NEW WESTERN US FACILITY

Robert Osgood

NEW “PROFESSIONAL” WORKSPACE IN THE WESTERN US

Robert Osgood

THE NEW “PROFESSIONAL” INDIVIDUAL WORKSPACE IN EUROPE

Robert Osgood

Robert Osgood

Customers & Markets

Mission &Vision


CASE STUDY 3: Return to Heritage Business


Re-focus on core business

Re-focus on core business

Divest under- performing businesses

Divest under- performing businesses

Measure

Reorganize around customer

categories

Reorganize around customer

categories

Record 3 year sales in core categories

Impact:$800 M/Year

Record 3 year sales in core categories

Impact:$800 M/Year

Consolidate into quality owned

space

Consolidate into quality owned

space

Cost of R.E. Operations

reduced 20% Impact:

$100 M/Year

Cost of R.E. Operations

reduced 20%Impact:

$100 M/Year

Consolidate from 10 to 4 U.S.

locations

Consolidate from 10 to 4 U.S.

locations

Co-location around categoriesCo-location around categories

Multiple activity setting

environment

Multiple activity setting

environment

Multidisciplinary workflowsMultidisciplinary workflows

Products & Services

CASE STUDY 3: Heritage Business S.A. Map

Robert Osgood

Products & Services

Customers & Markets

Values & Culture

Mission &Vision



Strategy

Activity by Workspace: Partners Overall (when in use)

0%10%20%30%40%50%

60%70%80%90%

100%

PartnersOverall

TOTAL ABAPartners

TOTAL BCPartners

TOTAL TAXPartners

Unoccupied

Telephone

Interactive

Individual

Activity by Workspace: Partners Overall

0%

10%

20%30%

40%

50%

60%

70%80%

90%

100%

PartnersOverall

TOTAL ABAPartners

TOTAL BCPartners

TOTAL TAXPartners

Empty

Space inuse

GROUP & INDIVIDUAL ACTIVITY PATTERNS

Activity Patterns by Functional Job Type

A B C D

Activity Patterns by Functional Job Type

A B C D

Robert Osgood

Formal & Informal Operational Relationships

HERITAGE BUSINESS WITH NEW WORKFLOW & LAYOUT STRATEGIES

Dynamic Workflow

Robert Osgood

COST BENEFIT ANALYSIS OF SCENARIOS

Operational Fitness

Profitable Growth

+106%+52%+36%+12%BaselineTOTAL ONE-YEAR COSTS

+2%-6%-5%-6%BaselineHQ Space Planning

+104%+58%+41%+ 18%BaselineAdditional Real Estate

10 YearsANTICIPATED PAYBACK

Quality People

Alignment with Driven to Deliver Alignment with Driven to Deliver

7 Years

Build Add’l Building

6 Years8 Years15 Years

Build All New Bldg

Build HQ Level 3

Several Groups Leave HQ

All Groups Remain at HQ

Robert Osgood

Robert Osgood

FORMAL & INFORMAL INTERACTION SETTINGS

Robert Osgood

TEAM INTERACTION SETTINGS

Robert Osgood

Customers & Markets

Mission & Vision

Strategy Strategy Measure

CASE STUDY 4: Relentless Pursuit of Efficiency


Efficiency throughout company

Efficiency throughout company

Real estate operations costs

down 15% Impact:

One time $140 M savings

Real estate operations costs

down 15%Impact:

One time $140 M savings

Consolidate back office operations

Consolidate back office operations

Products & Services

Core products; eliminate most services

Core products; eliminate most services

Create integrated shared services

Create integrated shared services

Portfolio from 42 to 21 locations

Portfolio from 42 to 21 locations

Universal space planning module

Universal space planning module

Outsourcing non-core groups & jobs

Outsourcing non-core groups & jobs

Integrated workflow software

Integrated workflow software

CASE STUDY 4: Pursuit of Efficiency S.A. Map

Robert Osgood

Products & Services

Customers & Markets

Values & Culture

Mission &Vision



Strategy

OCCUPANCY SCENARIOS

Illinois

CaliforniaLeased Building

CaliforniaOwned Building

CaliforniaReagent Manuf.

DelawareDistributionDelawareBuilding ADelawareBuilding BDelawareBuilding CDelawareBuilding DDelawareBuilding EGeorgia

Call CenterNorth Carolina

Refurb & RepairConnecticutWarehouseConnecticut

Instrument Manuf.

CONSOLIDATEOPTION 1

CONSOLIDATEOPTION 2

OPTIMIZEOPTION 3

RETHINKOPTION 4

MOVE 24/7 OPERATIONS TO GLASGOW

MOVE TO EITHER LEASED OR OWNED SPACE

RENEW CONSOLIDATED LEASE 90,000 SF

MOVE TO GLASGOWBUILDING A

LEASE OR BUILD DDC150 – 200,000 SF

ADD SYVA FROM CUPERTINOBUILDING A

EXPAND TRAINING AND VIP CENTER+/- 10-15,000 SF

LEASE OR BUILD EXTRA SPACE5 – 15,000 SF R&D

EXPAND TRAINING & VIP TO NEW GCM

CO-LOCATE NOTED FUNCTIONS

CURRENTLY IN BUILDINGS D & E

MOVE TO NEW GCM BUILDING

MOVEL ALL TO DE

CO-LOCATE WAREHOUSE WITH INSTRUMENT MANUFACTURING

RENEW CONSOLIDATED LEASE 50,000 SF

107,000 SF

Leased; 09-’12155,000 SF

Leased; 01-’0685,000 SF

Owned105,000 SF

Leased; 03-’0582,000 SF

Leased; 12-’05237,000 SF

Owned124,000 SF

Owned

78,000 SFOwned

20,000 SFOwned

60,000 SFLeased; 07-’05

15,000 SFLeased; 01-’07

105,000 SFLeased; 05-’0720-30,000 SF

Leased; Month to Month

100,000 SFLeased; 05/’14

Robert Osgood

BOTTOM LINE RATING OF SCENARIOS

CONSOLIDATEOPTION 1

CONSOLIDATEOPTION 2

OPTIMIZEOPTION 3

RETHINKOPTION 4

Non-Financial Strategy

Alignment

1-Year Financial Strategy

Alignment

10-Year NPV Financial Strategy

Alignment

Robert Osgood

IMPLEMENTATION PLAN

CALeased Building

DEDistribution

GACall Center

SDC – 55,000 SF

DDC – 82,000 SF

PLUS POSSIBLY:Call Center – 10,000 SF

DEDistribution

NEW DDC – 150-200,000 SF

1

2

GACall Center

105,000 SF

Move VIP, training and Office to New GCM Building

ACC – 10,000 SF

24/7 Op’s

Add up to 25,000 SF

CAReagent Manuf.

DEBuilding A

DEBuilding B

DEBuilding D

DEBuilding E

Consolidate needs to 35-50,000 SF

IL

New GCM Building

Vacate buildings 600 & 800, move R&D functions to

Building 500 and move office functions to New GCM

Building

CALeased Building

CAOwned Building

155,000 SFConsolidate to +/- 50,000 SF

IF NEEDED:

Add up to 50,000 SF to existing 85,000 SF

Move G&A groups to Glasgow

3

Robert Osgood

Robert Osgood

UNIVERSAL SPACE PLANNING MODULE

Robert Osgood

CENTRAL, FLEXIBLE LINK PLACES FOR SHARED SERVICES

CASE STUDY 5: Three Futures

Robert Osgood

Products & Services

Customers & Markets

Values & Culture

Mission &Vision


ReinventStretchRefresh

Brand

Revenue

Business FocusHeadcountMarket PositionsValue Chain

Solutions Focus

Relationships

Strategic Support

Business Essentials

Skill Sets

Group/Individual

Focus

Do the

same

thing

better...

Cost Focus

Do the

same

thing

better...

Cost Focus

Do

something

completely

different...

Growth Focus

Do

something

completely

different...

Growth Focus

CASE STUDY 5: Three Futures

Robert Osgood

Products & Services

Customers & Markets

Values & Culture

Mission &Vision


ReinventStretchRefresh

Brand

Revenue

Business FocusHeadcountMarket PositionsValue Chain

Solutions Focus

Relationships

Strategic Support

Business Essentials

Skill Sets

Group/Individual

Focus

…Focus

on

Efficiency

first...

…Focus

on

Efficiency

first...

...Focus

on

Effectiveness

first

...Focus

on

Effectiveness

first

THREE FUTURESTransforming the Organization

Prepare

Produce Deliver

PRINT SOLUTIONS

Interactive Media / Web

Creative

FINANCIALLOGISTICS

Premedia

AREFRESH

BSTRETCH

CREINVENT

THE INNOVATIVE PRINT

COMMUNICATIONS COMPANY

THE COMMUNICATION

S COMPANY

THE INTELLIGENCE

COMPANY

TODAY FUTURE

Robert Osgood

HEADQUARTERS LOCATION SCENARIOS

Large Corporate

HQ

Current City

Current Multiple Suburban Locations

Anywhere

Together AnywhereNear “New” Workforce &

Customers

Robert Osgood

A. Refresh B. Stretch C. Reinvent

S.B.U.’s

S.B.U.’s

Support

Small Corporate

HQ

Multidisciplinary S.B.U.’s

& Support

Real Estate Efficiency… … Business Effectiveness

‘01 ‘03 ‘04

Robert Osgood

GAP ANALYSIS: THE FLOOR AREA (& COST) IMPACT

Headquarters Owned Space

More than 1M SF of owned, leased & recently acquired space

Robert Osgood

Dynamic Group

Modular Group

Linear Group




BENCHMARKING: BACK TO THE P-T-P PATTERNS

Robert Osgood

“BASIC” BENCHMARK FLOOR AREA RANGES BY GROUP

Core Business Groups

Core or Support Groups

Enabling Support Groups

Executive Leadership

R & D

R & D Design & Engineering

Marketing & Marketing Research

SalesCustomer Service: Facing

Finance

Financial & Accounting Support

Operations/Supply Chain/Purchasing

Corporate Communications

Legal

IT Development

IT Programming & Systems

HR & Org. Development

HR Benefits & Support


Customer Service: Remote

Facilities & Real Estate

Administrative Services & Misc.

Regulatory & Compliance

200 350125 USF/P 275 USF/P 425 USF/P

P-T-P PATTERNS FOR THIS CASE STUDY COMPANY…

Robert Osgood

Dynamic





R & D



Sales

Customer Service: Facing

Finance




Legal

IT Development






Facilities & Real Estate Administrative Services & Misc.


ModularLinear

…IDENTIFYING THE GREATEST NEEDS FOR CO-LOCATION

Robert Osgood

Dynamic





R & D



Sales

Customer Service: Facing

Finance




Legal

IT Development






Facilities & Real Estate Administrative Services & Misc.


ModularLinear

The Dynamic groups had the broadest collaboration networks and highest priority for co-location

The Dynamic groups had the broadest collaboration networks and highest priority for co-location

Robert Osgood

ONCE AGAIN, CO-LOCATION BENCHMARKS

Levels of Co- Location with 3-5 groups…

On Same or Adjacent Floor*

Within 2-3 Floors*

Same Building

Same Site

Elsewhere

+

-

+

+ N

+ +

+N**

-

*25-50,000 SF Floors

…with Integrated A/V Tech Tools

…without Integrated A/V Tech Tools


‘Typical’ Dynamic Pattern

Strategic Support

Enabling Support

Leadership & growth engine that drives the success of the organization

Important daily support of Core Business Groups

Operational support for C.C. and S.S. Groups

Frequent, often informal face-to-face interaction with several to many C.B. Groups about customized & tacit information

Infrequent, often formal interaction, sometimes handled via technology, with C.B. and S.S. Groups about routine & explicit info

Combination of formal & informal interaction with few to several C.B. & S.S. Groups about tacit & explicit information

Type of Interaction Little to no face to face contact with C.B. or S.S. Groups and/or is preferable to manage via technology (etc.)

HQ location is important but not essential

HQ location is essential

Could be anywhere in region or elsewhere

Group Role

PRIOITIZING THE CORE HEADQUARTERS GROUPS

Robert Osgood

Core Business Group

Strategic Support

Enabling Support

Leadership & growth engine that drives the success of the organization

Important daily support of Core Business Groups

Operational support for C.C. and S.S. Groups

Frequent, often informal face-to-face interaction with several to many C.B. Groups about customized & tacit information

Infrequent, often formal interaction, sometimes handled via technology, with C.B. and S.S. Groups about routine & explicit info

Combination of formal & informal interaction with few to several C.B. & S.S. Groups about tacit & explicit information

Type of Interaction Little to no face to face contact with C.B. or S.S. Groups and/or is preferable to manage via technology (etc.)

Groups 1-7

Group Role

A NUMBER OF GROUPS COULD LEAVE HEADQUARTERS

Robert Osgood

Core Business Group

Groups 8-12

Groups 13-16

Group 17

Groups 18-21

Groups 21-23

Groups 24-25

Group 26

Groups 27-30

Groups 30-35

CO-LOCATION & LAYOUT FOR DYNAMIC GROUPS

Robert Osgood

THE DYNAMIC WORKPLACE

The Community Piazza as an Interaction Hub

Robert Osgood

THE DYNAMIC WORKPLACE

Individual Control over Concentration and Collaboration

Robert Osgood

4SECTION FOUR

Robert Osgood



SA Map & Case Studies

RE-SETTING THE CONTEXT…

Robert Osgood


People People





…as a Change Management Process




Operations Ongoing

Operations

Robert Osgood

ImplementationImplementation

Feed Forward & Back Loop





OngoingOperationsOngoing

Operations

FocusFocus

…FOR SIMPLICITY, THE PROCESS AS A LINEAR DIAGRAM…

THE PROCESS FRAMEWORK IN MORE DETAIL


1. Scope & Objectives

2. Resources

3. Requirements

4. Gap Analysis

5. Strategy: Principles & Alignment

Individual Projects

Robert Osgood

7. Select, Document &

Communicate

6. Plan: Alternative Scenarios

Feed Forward & Back Loop


Developed


THE FRAMEWORK IS FINE TUNED TO EACH CLIENT


1. Scope & Objectives

2. Resources

3. Requirements

4. Gap Analysis

5. Strategy: Principles & Alignment

Individual Projects

Robert Osgood

7. Select, Document &

Communicate

6. Plan: Alternative Scenarios


Developed


Using a variety of methods, this step alone is likely to be a series of top-down and bottom-up data collection activities aligned with specific client needs & culture

Using a variety of methods, this step alone is likely to be a series of top-down and bottom-up data collection activities aligned with specific client needs & culture

KEY METHODS USED TO DEVELOP STRATEGY (SA MAP)

Robert Osgood

a. Org Vision & Strategy Sessions b. BU Operational Interviews c. Group/Ind Focus Groups… …Developed SA Map

a. Org Vision & Strategy Sessions b. BU Operational Interviews c. Group/Ind Focus Groups… …Developed SA Map

a. Archival Review b. Walkthroughs c. Surveys of Existing Conditions… …Evaluation SA Map

a. Archival Review b. Walkthroughs c. Surveys of Existing Conditions… …Evaluation SA Map

…”Official” SA Map …”Official” SA Map

Kickoff Team Building… Prelim SA Map

Kickoff Team Building… Prelim SA Map

Resources vs Requirements… Resources vs Requirements…

…Plan Scenario Evaluation & Communication SA Maps

…Plan Scenario Evaluation & Communication SA Maps

A BROADER CHANGE MANAGEMENT FRAMEWORK

Robert Osgood


GoalsGoals

ScheduleSchedule

IssuesIssues

ActivitiesActivities

RolesRoles

StartStart FinishFinish

DeliverablesDeliverablesWhat?

When?

Why?

How &

Who?

Where?

Defining the activities that go beyond basic technical activities, beginning at the Kickoff Team Building Meeting (s)


WHO’S INVOVED? FIVE POTENTIAL ROLES

1. Sponsor

2. Core Team Member

3. Contributor

Robert Osgood

4. Receiver

5. No Involvement

StartStart

Core Business Strategy Core Business Enablers

Buy in and ownership are greatly enabled by developing a comprehensive plan for participation that reinforces the organization’s culture

FinishFinish

FINDINGS: VALUE OF A CHANGE MGMT PROGRAM

Used a Defined Change Mgmt Process

(N=42)

High

Average

Low

25%

10%

(N=68)

Yes

10%

5%

Robert Osgood

No

85% 65%

Q3

Success Level

(Beyond Basic Technical Activities)

FINDINGS: THE VALUE OF SENIOR INVOLVEMENT

Had C-Suite Level Participation

(N=51)

High

Average

Low

31%

10%

(N=59)

Yes

15%

5%

Robert Osgood

No

80% 59%

Q3

Success Level

(Beyond “Just” Decision Making)

FINDINGS: BOTH C. MGMT & SENIOR INVOLVEMENT

Had Change Mgmt. & C-Suite Level Participation

(N=55)

High

Average

Low

30%

15%

(N=55)

Both

10%

0%

Robert Osgood

Neither

90% 55%

Q3

Success Level

Robert Osgood

Products & Services

Customers & Markets

Values & Culture

Mission &Vision

Core Business EnablersCore Business Strategy

20 KEY QUESTIONS THAT DRIVE STRATEGY ALIGNMENT…

Questions 1-10 are essential to establishing the business context and key measures for success…

Questions 1-10 are essential to establishing the business context and key measures for success…

…Questions 10-20 focus on operational, specific P-T-P issues that put the strategy into action…most place projects begin and end here and don’t really consider CBS questions

…Questions 10-20 focus on operational, specific P-T-P issues that put the strategy into action…most place projects begin and end here and don’t really consider CBS questions

Of course, all questions are fine tuned for specific client situations Of course, all questions are fine tuned for specific client situations

…THE BROAD CATEGORIES OF DATA COLLECTION


C – Suite Level Leadership SBU/Department Leadership & Groups

Robert Osgood

Mission & Vision

Customers & Markets

Products & Services

Values & Culture

Brand & Identity

Core Competencies

Measures of Success

Support from Existing & Ideal Future Environment…etc…

Mission & Vision

Customers & Markets

Products & Services

Values & Culture

Brand & Identity

Core Competencies

Measures of Success

Support from Existing & Ideal Future Environment…etc…

Organizational Structure

Headcount

Operational Relationships

Support & Amenity Functions

Group Workflow

Individual Activities

Technology Tools

Satisfaction with Existing & Ideal Future Environment…etc…

Organizational Structure

Headcount

Operational Relationships

Support & Amenity Functions

Group Workflow

Individual Activities

Technology Tools

Satisfaction with Existing & Ideal Future Environment…etc…

Robert Osgood


1. Deductive(As Described)

2. Inductive (What If?)

Collect Analyze Produce & Refine

Communicate

Produce Analyze Collect Refine Communicate

Ask Questions then Analyze…

Model & Test from Existing then Ask Questions…

AND SOMETIMES… You Really Have to Re-think Your Overall Approach

Analyze

5SECTION FIVE

Robert Osgood



SA Map & Case Studies

BENCHMARKING: FROM…TO…

Most Benchmarking Begins & Ends with: Most Benchmarking Begins & Ends with:

• A Few

• Strategy-Specific

• Qualitative & Quantitative

• Efficiency & Effectiveness

• Core Business Best Practices

• Many

• Generic

• Quantitative

• Efficiency

• Land & Building Statistics

Robert Osgood

Value Added Benchmarking Focuses on:


From……To

& Questions

…OR IN OTHER TERMS…

Most Benchmarking Begins & Ends with: Most Benchmarking Begins & Ends with:

• Innovation Speed & Quality

to Market

• Competitive Position

• Work-Life Balance

• Recruitment & Retention

• Cost/SF

• SF/Person

• Office Standards

• Office Location

• Churn Time & Costs

Robert Osgood



From……To

Robert Osgood

EXAMPLE: BACK TO CASE STUDY 1 Innovation Speed & Quality to Market

1. Group A

2. Group B

3. Group C

4. Group D

IDEATIONINITIAL

DEVELOPMENT OPTIMIZATION LAUNCH

Organizational

Group

Individual

Robert Osgood

STRATEGIC DECISIONS EARLIER, FEWER PROJECTS AND MORE FOCUS

IDEATIONINITIAL

DEVELOPMENT OPTIMIZATION LAUNCH

TODAY:

IDEA

S

SELECTED

PRODUCTS FOR

COMMERCIALIZATION

FUTURE IDEAL:

IDEA

S SELECTED

PRODUCTS FOR

COMMERCIALIZATION

Robert Osgood

Dynamic Group

Modular Group

Linear Group




AGAIN, P-T-P PATTERNS AS A BENCHMARKING TOOL

Robert Osgood

DynamicFocus more on revenue growth & reward for performance

Unconventional, dynamic individual job activities & roles w/long hours

Mission & VisionMission & Vision

Growth Growth

Collab. NetworkCollab. Network

Change MgmtChange Mgmt

Frequent, often dramatic shifts in headcount

Ongoing & informal interaction, often about custom, tacit information

Expansive, multi-disciplinary, internal & external collaboration network

Leaders as coaches who reward collaboration

Linear Modular

Balance of team communication & individual concentration

Emphasis on professional content individual job activities

Balance of rev. growth & cost savings, reward for performance & compliance

Predictable, moderate to dramatic shifts in headcount

Broad, hierarchical-oriented internal & external collaboration networkA mix of interaction types, often more formal than informal about custom & routine, tacit and explicit information

Well-defined individual job activities & roles with long hours

Emphasis on professional & managerial content individual job activities

Emphasis on individual concentration with varying team communication

Diverse expectations beyond the job

Leaders as technicians & administrators who reward tech depth

Focus more on cost savings & task execution

Predictable, moderate shifts in headcount

Limited single-discipline/department collaboration networkBrief informal & formal meetings & technology exchange often about routine, explicit information

Well-defined, static individual job activities & roles w/ shifts & job sharing

Balance of professional & admin content individual job activities

Focus on individual concentration & small team communicationLeaders as administrators who reward task execution

Expectations for professional equality

Extend primary onsite work with a variety of offsite activitiesVast majority of work is completed onsite

Group Workflow Group Workflow



Org StructureOrg Structure

Career DevCareer Dev

Globally integrated IT systems & wide-range of fixed & mobile A/V toolsGlobally integrated IT systems & wide- range of fixed & mobile voice tools


Participants & leaders of change management processes



Development around individual, intrinsic professional growthDevelopment around new systems & procedures

Convenient access to a high quality workforce, services and institutions

MAPPING CLIENT SPECIFIC PEOPLE & TECH CHARACTERISTICS

Networked-virtual structure around processes across disciplines & org chart

Hierarchical-networked-virtual structure around/across overall organization chart

Hierarchical-networked, around person to person processes within disciplines

Flexible layout & support around a multiple activity setting environment

Robert Osgood

DynamicLinearMission & VisionMission & Vision

Components & Flexibility Components & Flexibility

LocationLocation

CF & AmenitiesCF & Amenities

Modular

Flexible hierarchy of space from public to private zones w/surge spaceKey multi-disciplinary/dept groups are co-located/integrated; others nearby

A wide range of formal & informal places for interaction

Spatial balance of team and individual space

Leaders typically co-located with their teams & peers

Wide range of common facilities & on/off-site amenities

Workspace standards primarily by function, with several layout options

Emphasize corporate-specific over market flexible facilities

Workspace standards by function & entitlement, w/ a few layout options

Workspace standards by function & entitlement, with several layout options

Hierarchy of space from public to private zones w/ some surge spaceKey, typically single-discipline/dept, groups are co-located; others nearby

A range of formal & informal interaction & meeting places

Spatial focus on individual workspaces

On-Site workspaces with a range of flexible off-site tools & spaces

Enclosure flexibility for control of collaboration & concentration

Balance of corporate - specific & market flexible facilities

Hierarchy of space from public to private zones w/minimal surge space Key, typically single-discipline/dept, groups are co-located

Range of traditional meeting places & small interaction settings

Basic on-site common facilities & some value-added amenities

Virtually all on-site workspaces with limited off-site tools & spaces

Enclosure flexibility for control of noise & visual distractions

Emphasize market flexibility over corporate specific facilities

Spatial focus on sequence of individual workspaces

Range of common facilities & on/off- site amenities

Leaders typically co-located with their teams

Balance of leaders co-located with their teams & with peers





Flexible layout & support around a standard or MAS environment

Flexible layout & support around a standard environment

Place as a tool to drive business growth at the lowest possible cost

Place as enabling support, balancing cost & growth

Place as a cost to be minimized without inhibiting business growth

Flexible infrastructure focused on changing org, team & individual needs SystemsSystems

Change MgmtChange Mgmt Participants & leaders of change management processes



Flexible infrastructure focused on team & individual consistency

Flexible infrastructure focused on individual consistency

Locations convenient to a high quality workforce, services and institutions

MAPPING CLIENT SPECIFIC PLACE CHARACTRISTICS

Robert Osgood

Work is performed in a variety of on and offsite settings, enabled by mobile technology…

Mobile

Internally Mobile

Assigned

Work at Home

Category Work Profile

Work is performed in a variety of onsite settings, enabled by mobile technology…

Work is performed onsite in a single office or work station, enabled by fixed and limited mobile technology…

Work is performed at home in a single office or work station, enabled by fixed and mobile technology…

1.

2.

3.

4.

Core Individual & Team Activities

IMPACT OF THE MOBILE WORKER

CASE STUDY 1 Multiple Activity Setting

Where the Entire Building is Your Workplace

Communicate

Both

Concentrate

Public Semi-Public Semi-Private Private

Vendor Meeting Rooms

Conference Center

Floor Conference Rooms

Huddle Areas

Customer Development

Rooms

Huddle Rooms

ReceptionIndoor/Outdoor

Cafeteria

Wellness

Central Training Team & Individual Training

Outdoor Retreat Areas

Outdoor Touchdown

AreasRetreat Rooms

Assigned WorkspacesAssigned

Workspaces

The Town Center

Indoor Touchdown Areas

Robert Osgood

THE RESULTING SA MAP FOR CASE STUDY 1…

Robert Osgood

Products & Services

Customers & Markets

Values & Culture

Mission &Vision

Core Business Core Business EnablersStrategy Measure Strategy Measure


Robert Osgood

Products & Services

Customers & Markets


…AND THE BOTTOM LINE IMPACT













new tech tools


new tech tools







CASE STUDY 1 Layout for Modular Workflow

Robert Osgood

CASE STUDY 1 Layout for Dynamic Workflow in the Same Footprint

Robert Osgood

CASE STUDY 1 The Town Center of the Multiple Activity Setting

Robert Osgood

Robert Osgood

CASE STUDY 1 Beyond Standard, Formal Places to Collaborate…

Robert Osgood

CASE STUDY 1 …Beyond Standard Offices to Concentrate

FINDINGS: VALUE OF CBS BEST PRACTICES

Used CBS Specific Best Practices

(N=56)

Success

Level

High

Average

Low

24%

8%

(N=54)

12%

6%

Robert Osgood

82% 68%

Yes No

Q4

(Beyond “Just” Place Statistics)

SUMMARY…

• Map (Content): Visually, directly align people, technology and place with CBS and measure results as organizational outcomes…

• No one size fits all place responses, but instead patterns driven by combinations of strategic elements…

• Three broad patterns - Linear, Modular and Dynamic - describe P-T-P characteristics most commonly correlated with CBS Top 10 elements…

• The patterns, and elements of each, are statistically correlated with enhanced CBS performance…

Robert Osgood

…SUMMARY…

Robert Osgood


Performance



Successful Projects

Content

Process

Benchmarking

- -- -- -- -

- -- -



- -- -

- -- - - -- -

- -- -

- -- -

Q1

Q2

Q3

Q4

Robert Osgood


Performance



Successful Projects

Content

Process

Benchmarking

+ 2 - 25% + 2 - 25%

+ 20% + 20%

+ 14% + 14%

- -- -- -- -

- -- -



+ 15 - 18% + 15 - 18%

- -- -

- -- - - -- -

- -- -

- -- -

…SUMMARY…

(+3 – 9% norm)

Robert Osgood

Core Business Strategy Performance Core Business Strategy Performance

Content (CBS + 2 - 25%) (CBS + 2 - 25%)

THE 3 INTERRELATED DRIVERS OF PERFORMANCE





3. Functional Group

Patterns

3. Functional Group

Patterns

…SUMMARY

• Process: A broader change management approach that facilitates c-suite participation and improved decision making in the same amount of time as typical transactional processes.

• Benchmarking: Beyond generic real estate statistics to organizational best practices and questions central to core business strategy.

• Ongoing Work: Detailed guidelines that focus on the three P-T-P patterns and the ability of facilities to provide the flexibility to meet all three concurrently.

Robert Osgood

Robert Osgood

Products & Services

Customers & Markets

Values & Culture

Mission &Vision


Flexibility to support changing or evolving People & Technology processes…

Flexibility to support changing or evolving People & Technology processes…

Flexibility to support changing or evolving Core Business Strategy…

Flexibility to support changing or evolving Core Business Strategy…


Flexibility to support Place in the real estate market

Flexibility to support Place in the real estate market

LEVELS OF FLEXIBILITY…

Robert Osgood


…C. To support CBS, implement 4-6 major changes in People and Technology related processes & structure, that drive an average of 45% annual churn…

…C. To support CBS, implement 4-6 major changes in People and Technology related processes & structure, that drive an average of 45% annual churn…

…B. Make 2-3 major changes in their Core Business Strategy &…

…B. Make 2-3 major changes in their Core Business Strategy &…


…D. In Places where it’s customary to be in 5-10 year leases and buildings owned 25+ years…

…D. In Places where it’s customary to be in 5-10 year leases and buildings owned 25+ years…

…FLEXIBILITY IN TERMS OF RATES OF CHANGE

A. Over 10-15 years, most companies… A. Over 10-15 years, most companies…

…E. Thus, Place must meet immediate business needs, then accommodate short and long term change - often without the $ or time to make major physical refinements

…E. Thus, Place must meet immediate business needs, then accommodate short and long term change - often without the $ or time to make major physical refinements

Products & Services

Customers & Markets

Values & Culture

Mission &Vision

Questions & Discussion


CoreNet Global2008

Questions & Discussion


CoreNet Global2008

the strategy alignment model: defining real estate strategies in

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