workplace strategy & change management

Real Estate Workplace Strategy & Change Management

Author: Coralie Clément May 2009 – revised Feb. 2010

The Methodology (6 steps)

References

Why do you need a Workplace Strategy?

Company commitment (based on surveys)

Company commitment to Workplace Strategies

2Source: IFMA Research July 2008

Microsoft & Corenet April 2009

of the respondents agree that the commitment to the overall AWS has increased significantly to support current economic conditions

report the presence of a WS Program within their organization

55%

76%

• The most commonly used strategy is the Team-Environment

• Participation for Telecommuting are expected to grow faster over the next 3 years, rising from 5 to 11%

Company commitment to Workplace Strategies

3

CRITICAL FACTOR:> When implementing change, communication continues to be critical to successful implementation of distributed WS.

WS Results - Decline in sqf/worker.Positive evolution – CRES, IT & HR are working closer to builda joint vision for the best possible workplace.

+

Cost impact - Higher Technology costs must be factored whenimplementing AWS.AWS: Off site options encounter management’s resistance to change followed by organization culture & technology constraints.

-

Source: IFMA Research July 2008



4

Work Environments that are aligned with Corporate Goals can Encourage people to behave in new ways and help achieve desiredBusiness results.

Workplace efficiency => productivity => Company Results

SPACE AS A TOOL

Source: Alternative Officing strategies

Steelcase Presentation


5

Source: IFMA Research July 2008


=> In accordance with the needs of their business => Attract & Retain Talent (work/life balance) => Generating improved productivity (motivation, collaboration …) => Resulting in cost efficiency ($/Sqf, capital efficiency) => Reducing environmental impact of the property and workforce

Deliver a more effective working environment


6

General ElectricAfter field employees at GE had their assigned desks replaced with high tech communication tools for working anywhere, anytime, they started spending 50% less time in the office and more time with their customers. Now when field employees need to access GE’s resources on-site, they can work at unassigned “hot desks”at various field facilities. Desk are full equipped and available at 1st come, 1st served basis.

National City BankMinneapolis based National City Bank saw teaming as a way of achieving greater customer satisfaction. So, the bank tore down walls between people, provided generous shared work surfaces so employees could easily work together, and accommodated changing team needs with a variety of flexible furnished areas. Workspaces based on function, rather than status, help people feel equal. For their efforts. He bank realized a 20% drop in turnover and increased performance.

EXAMPLES

Source: Alternative Officing strategies - Steelcase Presentation

Workplace Strategy Methodology Supporting the change

7

The most important is to ensure that the Workplace StrategyMAKES GOOD BUSINESS SENSE

Preliminary step

Defining the Goals

11

To successfully bring a property in line with Corporate goals, it is important to explore:- Organization’s business objectives & issues- Existing work environment- Space & Furniture strategies- Potential impact on individuals & the organization- Measurement of success- Ways to continually adapt the environment

Workplace Strategy Methodology Assessment > A starting point

8

As an organization, the target is also to facilitate interactions, improve the collaboration and ease the company processes

CompanyAssessment

22

A more effective workplace strategy begins with anunderstanding of:- Why/Where people work?- The nature of different work activities- Communication & Privacy needs (individual/group)- Technology & tool needs (individual/group)- How often teams are working together ?- In What ways do they interact ?- Benchmarking

Workplace Strategy Methodology Creating a Common vision & Workplace concepts

9

Creating Policy& Concepts

33

• Based on the Company assessment, you would be in position to involve key departments and do a high level operational & financial portfolio impact analysis.• Once your case has been presented and agreed by the Executive Management, you can then create a common vision (policy) and define alternative WS.

10

Workplace Strategy Methodology Workplace Strategy Planning

• Site selection – Prioritize depending on BU needs, critical dates, Performance indicators.• Engage Planners to recommend the options.• Assess the viability of each option financial analysis (NPV/WACC Analysis/IRR & Payback, Operating Budget and P&L impacts, Cash impacts)• Roll out Financial & other operational criteria in a scorecard showing both BU & RE objectives.• Define your recommendation and how this one will efficiently support the BU objectives and contribute to the success of the company as a whole.

Your Real Estate recommendation has been defined and your are now

ready to start negotiating with the Business Units and the stakeholders.

Planning

44

Workplace Strategy Methodology Implementation, Change Management & Project Delivery

11

• Pilot program management • Change management tactics• Rollout planning • Ongoing measurement

Implementation

55

Workplace Strategy MethodologyChange Management tactics

12

FAILED WORKPLACE CHANGE INITIATIVES

- Absence of champion or Junior in the organization

- Poor executive sponsorship

- Poor project management skills

- Poorly defined organizational objectives

- Employee Perceive that the change is “done to them”

- Change team diverted to other projects

- Communication occurs much too late and in response to damage already done

- Communication focuses on justification of what employees are giving up in the new environment

13


Workplace Strategy Methodology Change Management tactics

Workplace Strategy MethodologyChange Acceptance Process

Recognize the transition process takes time

> Ensure that the Change can be part of the company DNA & everyone's job


> Leadership Engagement

> Evaluate risks

> Top Change Team / Project Team

> Realistic schedule

> Pilot projects & Case Studies

> Develop new Vision => Policies & Tool kit

> Sponsor / Champion > Communication- Employee Meeting

- Regular e-mail during the 1st stages

of the implementation (incl. FAQ)

- video communications

- creation of a website

- allow feedback / forum

> Marketing Campaign

> Training / Education

> Communication must be planned strategically and begin early in the change process. It must focus on what the employees will gain and how it will be achieved.


The Team must adapt to Employee’s reaction

Emotional response to Change

18


The Team must adapt to Employee’s reaction

Workplace Strategy Methodology Adapt, Measure & Improve

19

• Post Occupancy/Project Analysis (Lesson learnt)• On-Going Change Management• Refine proposition• Ongoing measurement – SWOT Analysis• Continue to brainstorm possible improvements & innovations on a regular basis• Maintain regular relationship with the BUContinuous

Improvement

66

ReferencesInnovations in Office Design - ”The critical influenceapproach to effective Work environments”by Diane Steigmeier 2008

CAP materials by GE Management Development Insitute, NY

Microsoft/CoreNet AWS Survey – Dallas – April 2009

“Measuring the Added Value of Corporate Real Estate Management” by Anna-Liisa Lindholm & Karen M.Gibler 2006

IFMA Members survey – July 2008

Duffy F & Tanis J – “A vision of the new workplace” 1993

Alternative Officing strategies – Steelcase