Space and effectiveness

The impact of space on work

environment

Andrew WilkinsonHead of MA Business, Asset Management

Atkins at a glance

•Atkins is the UK‟s largest engineering

and design consultancy and the world‟s

11th largest design firm.

•We have the depth and breadth of

technical expertise to respond both to

the complex challenges of major

infrastructure projects, and the urgent

transition to a low-carbon economy.

Performance Management

Supply Chain Management

QSE

Asset Strategy

Account Management

Commercial Audit

Audit

Energy Management Helpdesk

Knowledge Management

Supply Chain Consultancy

Change Management

Projects

Sustainability

Building Audit

Decision on ArT by 22nd

Customers Products

The problem with Office

Space in 2010

Office space in 1906

Office space 100+ years later!

How do you measure effectiveness?

Mark Dixon

Regus

“(office) output is a

difficult thing to

measure, nobody

has developed a

metric.”

“The Relative Merits of Lean, Enriched, and Empowered Offices:

An Experimental Examination of the Impact of Workspace Management

Strategies on Well-Being and Productivity”

Craig Knight and S. Alexander Haslam – Exeter University

Principles of lean management encourage managers to

exert tight control over office space and the people with in it

Focus on corporate return as opposed to psychological

welfare

Lean offices are large, uncluttered and can accommodate

more people

LEAN OFFICE SPACE EMPOWERED OFFICE SPACE

DISEMPOWERED OFFICE SPACEENRICHED OFFICE SPACE

The Relative Merits of Lean, Enriched, and Empowered Offices:

An Experimental Examination of the Impact of Workspace Management

Strategies on Well-Being and Productivity

Craig Knight and S. Alexander Haslam

Principles of lean management encourage managers to

exert tight control over office space and the people with in it

Focus on corporate return as opposed to psychological

welfare

Lean offices are large, uncluttered and can accommodate

more people

Conclusions: -

- Enrichment increase productivity

- Identity Empowerment increases productivity still

further

- Faster performances do not mean more errors

Death of the Office? The Futures Report – Global Workplace Innovation in partnership with

Futures Academy and Kristensen Consulting: -

Expectation that real estate prices will decline along with a

company's need for a physical presence

Rapid growth of technology enabling globalisation

Emphasis on growth of virtual office space

Focus on telecommunications

“Smart Workforce”: -

Growth in telecommunications = growth of virtual office space

Focus on knowledge sharing and collaboration

Office space gets smaller because we spend less time there

Private dwellings get larger as we spend more time working from

home

Driven by lifestyle demands and growth in social networking and

video conferencing

Source: Death of the office – Ann Clark - i-FM – 27th July 2009

3 real life case studies

• Major UK Retailer

• Home Office

• Atkins

0% 5% 10% 15% 20% 25%

Improving working …

Meet Business …

Promoting collaboration

Reducing occupancy costs

Cultural considerations

Competitor advantage

Sustainability

Improving staff productivity

25%

25%

15%

15%

10%

10%

0%

0%

Major UK retailer – priority of drivers when

considering office workplace strategy

“The challenge that we will have as a business is how we

might scope a workplace management strategy as the space

issue alone will not change how we work and we must look

at broader issues of work styles/ agile working,

understanding what we think the office is - head office - our

support centre and whether there is a truly a desire by the

board to lead on the cultural changes that are required”

Strategy Director

Major UK retailer

Major UK retailer - the Challenge of workplace

management strategy

Home Office – Drivers for change

Home Office Estates strategy: -

reduce the number of home office buildings in central London

reduce cost

Efficient & Effective HQ workspace

3,780 desks

<60% utilisation rate

£11,500 per desk

2 Marsham Street

Home Office - workplace utilisation

Total Workplace Utilisation

(2330 Workplaces excluding vacant & shared special workplaces)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

09

:30

11

:30

14

:30

16

:30

09

:30

11

:30

14

:30

16

:30

09

:30

11

:30

14

:30

16

:30

09

:30

11

:30

14

:30

16

:30

09

:30

11

:30

14

:30

16

:30

Monday Tuesday Wednesday Thursday Friday

Avg

% o

f w

orkp

laces u

tili

sed

Workplaces occupied

and in use

Workplaces occupied

Principles

People are provided with the tools to

work effectively wherever they need

to work (spaces, IT, telephony)

People are able to be located

together with colleagues so that they

can work together

People use space as they need it.

When they are not using their space

it is made available for others to use

People are allocated a „Work style‟

dependent upon functional need not

grade

Benefits

Enable effective use of Home Office

assets e.g. Workplaces and PC‟s used

Ability to rapidly reshape and reform

teams responding to changing Group

needs without cost or disruption

Ability to create teams involving

people from other departments easily

Enable people to work more effectively

(the right „places‟ associated with their

tasks)

Home Office – delivering the benefits

Home Office - Results to date

Flexible working implemented

Desks released to support 650 additional staff

Consolidation of all Corporate HQ functions in one building

4 central London locations released

£6m annualised value for money savings

Cashable savings – rent utilities, facilities management,

security, IT provision

Improved Organisational flexibility and agility

Atkins Derby office

Derby office refurbishment – Atkins oldest building

Carbon reduction at the core

Utilising old buildings by revamping office space

Integrated Client/ FM/ Design/ Projects team

Use of in house skills through design, specification and

construction

More efficient use of space – eg Pods not offices/

Touchdown points

Sustainability in every concept of design, specification

and construction

90% of construction

waste recycled

Local Derby

suppliers

All electrical

appliances are

grade A efficiency

Energy use is

monitored by Atkins

remote technology

Furniture is all

made in the UK and

produced from 34%

recycled material

Replacement

windows -

reducing heat

loss, noise and

glare and

producing energy

reductions of 18%

Fabric for chairs –

100% recycled

fabric and

manufactured in a

carbon neutral way

Desks – 34%

recycled material

and 99% recyclable

Accredited

What are the opportunities for FM?

Recession good for FM?

• Increasing number of business viewing real estate and

FM as key strategic functions

• Recognition of impact on monetary outlays and driving

financial performance.

• In addition, these top-performing businesses are:

• 52% more likely than 'laggard enterprises' to have

standardised policies and processes for facilities

management

• 44% more likely to have a corporate real estate

group and

• 42% more likely to conduct formal space planning.

"With nearly 13% of the average enterprise's spend

dedicated to its real estate and facilities costs, the

location and support of business locations has a

significant impact on financial performance. In good

times, a focus on cost containment is prudent; in

more difficult times, it becomes a necessity. But, for

leading enterprises, the long-term value of looking

beyond real estate and facilities spend as sunk costs

or simply the cost of being in business is measurable

and pays dividends to those willing to believe

that their competitive position can be affected

by where they do business and how they

manage these spaces.“

Source: Aberdeen Research - 'Real Estate and Facilities Management:

Defining a Strategic Function, Driving Significant Value' Christopher Dwyer

Considerations for FM

• How do we understand business needs?

– ie what does “good” effectiveness look like?

• How do we facilitate change?

• Need to develop an external perspective: -

– How do you keep up with technology?

– What are Gen Y+ demanding?

– What is best practice?

• What more can FM do to deliver real business success?

Must be able to measure benefits

Summary

• The way we use office space is changing: -

– Cost

– Generation Y; culture and Smart Workforce

– Technology enabled

• FM is gaining recognition as Value Adding not simply

Cost Controlling

• Will demand broader scope: -

– Inception to Benefits Realisation

– Convergence of Property streams FM/ Estates/

Projects

– Convergence between Property and Technology

Thank you

Any questions?