Moderator:

Helen Kaufert Leyland, Nokia Siemens Network

Speakers:

Kimberlee Burt, Original Creative Co-op

Colin Stuart, EC Harris LLP

Nigel Oseland, AMA Alexi Marmot Associates

Nik Robotham, Morgan Stanley

#1 Implementing Flexible Working in a Downturn: A Practical Guide

Agile Working

Agile Working is about bringing people, Processes, IT and technology, time and place together to find the most appropriate innovative and effective way of working to carry out particular tasks. There is no one size fits all, it has common themes but is individual.

Agile Working, in simplistic terms is working within guidelines but without boundaries.

At BT they have 75,000

flexible workers

out of 111,000 people ….

and 14,500 are homeworkers

Constructing Excellence - Better Ways of Working March 2009

Paul Allsopp BSc.(Hons) (formerly BT)THE AGILE ORGANISATION

Types of Working Environments

• Traditional – assigned office & open plan, auxiliary spaces

• Activity Based or Alternative Worksettings- collaborative areas & individual workstations- non-assigned (flex)

• the ‘No-Office’ concept –

• Similar to anywhere/anytime- non-building oriented such as cars, gardens, etc

• The “Home”- separate room or kitchen table?

• Non-traditional Environments –

Flexible work locations not including the office or home, such as libraries, coffee shops, airport lounges, clients’

• Satellites – Hubs - Drop-ins

Non- assigned workplaces/offices, larger amount of meeting spaces and touchdowns,

often ‘hotelled’

Main Office- In City orBusiness Park

‘Near Home’Or SuburbanOffice

Third Places

Virtual

Selecting the Model for your Business

Location

Who Definitions • Individuals, Sales,

some C-Suite

• Knowledge workers

• Managerial,

Administrative

• Financial, ‘face to

face’ services

Economy Sector/

• Nomad(ism) –

eWork & mWork-

No fixed base

• Homeworking –

No assigned desk in

office

• Teleworking

Telecommuting

• Flexible Working

Desk Sharing

• Anywhere/anytime

“Third Places”

• Work fully or mostly

from home

• Flex in the Office &

at Home

• Office building

dependent

• SME’s, High Tech,

Entrepreneurs

• Call Centres/ High Tech

• Professional,

Consultancy

•Financial, Law

Personal services

Designing the Infrastructure

People Technology Facility

The Primary Considerations

Importance of People

• Management training- ‘Middle Management Blackout’ > Office culture

Management by results > ‘presenteeism’

• Workforce demographics- Babyboomers > Diversity & Inclusion > the Net Generation > Fathers at Home

• Who-Where-Why-When?- Suitability Analysis

• Rules & Regulations- What is allowed, encouraged, and vice versa

Importance of Technology

• Virtualisation- the challenge to Corporate IT departments

• Security & Privacy- just how important is it?

• Accommodating different technologies at home- DSL, Cable, Wireless

• Clear Rules for Teleworking- policies and practicalities

• The ‘roll-out’ and help desk- new software advancements

The Role of the Facility

• Existing Portfolio > Cost & Value > Existing Technology• Type of Building > Design Flexibility > Symbolism & Branding• Regulations > Capacity Analysis > Location• Spaceless Growth > ‘Futures Analysis’> Long term Strategy

Photos Courtesy of “Spaces” Amsterdam

Implementing in a Downturn

Design as Enabler? Design as Enabler

“ A single focus on cost

management … hurts the

ability to respond when the

economy turns around”

Steelcase June 2009

Advantages:• More Space – less paper -better environment• Breaks down hierarchy• Allows more collaborative settings• Improves work/life balance (a ‘give-back’ during redundancies)• Positions for Expansion without additional cost or churn

Photo Courtesy of “Spaces” Amsterdam

Why Implement Agile Working?

• Markets are changing:– for some it is survival for others opportunity

• Market positions are forged in a downturn: – dynamic, innovative environment

• Customers really are king: – because there are fewer of them

• Corporates are changing to respond to new market and customer dynamics:– and the change is fast

• So new products, services, geographies are dynamic:– how can corporate workspace respond without

Workplace Challenges

Impact• Demonstrable

positive impact by the workplace on business performance

• Push-back from decentralised business units

• Opex & Capex reduction requirement

• Attraction and retention of the best talent

Control• Insufficient asset

knowledge and M.I.

• Knowledge gapsaround the support the workplace needs to offer the business

• Benchmarking data & KPIs to demonstrate improved performance

• Lack of integrated city & regional reporting, forecasting and ROI analysis

Innovation• Demonstrable

improvements in productivity from ‘innovative’ workplaces and new ways of working

• Supporting ways of working, leading the way in innovative working practices

• Clearly articulated sustainability agenda, carbon neutral targets

Adaptability• Flexible workplace

solutions required to meet rapidly-changing business models

• Business Continuity, better risk management

• Credit Crunch issues around shedding people or space

The Need to Innovate

Cameron & Quinn

• 100% of organisations want their culture to be more creative and innovative

• 96% want their culture to be less controlling and hierarchical

Cameron & Quinn

The Response to a Downturn

t

• Managers reverting to comfort zones - an increase in control

• A clocking on culture re-appearing

• Erosion of trust

A Negative Spiral

• Increasing staff resentment

• Lower morale

• Lower productivity

• Stifling innovation

• Are we stepping back 20 years?

Investing in Flexible Working

The Benefits Case

Link the Benefits Case to Deliverable KPIs

• Reduced absenteeism = £• Reduced total occupancy costs = £• Improved productivity = £• Improved customer satisfaction = £

ECHQ – doing it for ourselves• £3m targeted benefits were realised in under 6 months (against a 12 month target)• Net Profit Margin increased by 13% from pre move levels• Fee turnover per head increased by 7.5%• Staff attrition dropped from 24% to 15%, attraction/attrition ratio improved 1:1 to 2.5:1• Utilisation of workspaces increased from 62% to 85%• Total Occupancy Cost per head reduced by 36%• Carbon footprint reduced by 39%

Conclusions

• Estate & Facilities have to change – we need to robustly measure and link facilities to business contribution as well as driving out cost and waste

• CRE executives are facing Boardroom pressure to match facilities/service to customer need and to demonstrate benefits case for investment

• Flexible workspace and agile working can be part of the solution

Making Change

• Don’t force change, guide it

• Support staff to form their own opinion and solutions

• Give some of what they want to affect change you wantSource: AMA Alexi Marmot Associates 2009

7 Cs of Change

Set the stage …

decide what to do

make it happen

… then make it stick

Create sense of urgency

Credible team

Clarify vision and strategy

Communicate

Consult and empower

Celebrate short-term wins

Cement the new culture

Source: AMA Alexi Marmot Associates 2009

Tools for Change

• Select team and confirm sponsor

• Project meeting for objectives & timescale

• Gauge/survey readiness to change

• Key stakeholder meetings

• Initial communication

• Select champions

• Welcome Pack or User Guide

• Open/family day

• Opening ceremony

• Champion sessions

• Post-move feedback

• Additional training

• Post occupancy evaluation

• Continuous comms

• Champion meetings and workshops

• Work process training

• Exhibitions, furniture showcase, site visit

• Pilot study

• FAQ and Guidelines

• Videos & walkthrough

• Farewell celebration

• Space analysis and utilisation study

• Envisioning workshop

• Senior manager interviews

• Culture mapping & photosphere exercise

• Champions kick-off

• Pre-project staff survey

• Best practice tours

Create urgencyCredible team

Clarify vision Communicate

Consult / empower

Celebrate wins

Set the stage Decide what to do Make it happen Make it stick

Cement new culture

Source: AMA Alexi Marmot Associates 2009

Change Cycle

Resistance

Commitment Exploration

Mo

rale

Denial Resisting change,

anger at changeBargaining & explore options for solution

Accepting responsibility for making change

Refusing to acknowledge change

Time

Emotional Support

Voicing of concerns and acknowledgement

Clear Direction

List priorities, set short-term goals

Encouragement

Acknowledge and reward success

Information

Justify change and prepare people

Source: AMA Alexi Marmot Associates 2009

Barriers to Change

Why do people resist change? How do we tackle this?

Value and reward alignment

Ownership and champions

Good comms/consultation

Provide additional support

Highlight strategy and benefits

Transparency & reassurance

Self-interest - loss of control

Distrust changers

Misunderstanding

Low tolerance of change

Unnecessary interference

Fear of the unknown

Source: AMA Alexi Marmot Associates 2009

Dealing with Resistance

Tell me and I’ll forget Show me and I will remember Involve me and I’ll understand

(Lao Tse, circa 600 BC)

Source: AMA Alexi Marmot Associates 2009

Coercion/EdictInfluenceEducation/

Reasoning

Negotiation/Arbitration

Involvement/Ownership

Facilitation/Participation

Example of Process & Techniques

VisionComms

VisionComms

Staff Survey (Pre)

Staff Survey (Pre)

EnvisioningWorkshop

EnvisioningWorkshop

Frequently Asked

Questions

Frequently Asked

Questions

Town HallPresentation

Town HallPresentation

Benchmarking& Advice

Benchmarking& Advice

Group HeadInterviews

Group HeadInterviews

GroupWorkshops

GroupWorkshops

GroupPresentation

GroupPresentation

GuidelinesComms

GuidelinesComms Update

Guidelines

Update Guidelines

MoveComms

MoveComms

Project TeamBriefing

Project TeamBriefing

ChampionWorkshops

ChampionWorkshops

Workplace Guidelines

Workplace Guidelines

WelcomePack

WelcomePack

Staff Survey (Post)

Staff Survey (Post)

LobbyingLobbying

ChampionWorkshops

ChampionWorkshops

Source: AMA Alexi Marmot Associates 2009

Change Programme

Source: AMA Alexi Marmot Associates 2009

58 additional tasks for FlexSpace

Success Factors

• Understand the requirement

• Identify leaders and partners

• Planned change management

• Use optimum solution

Source: AMA Alexi Marmot Associates 2009

The Client Experience:

Flexible working at Morgan Stanley

30

Our Business Principles:

• Lead with integrity

• Put clients first

• Win in the marketplace

• Think like an owner

• Keep your balance

The Key Factor:

Think like an owner

31

Would you book a hotel to cover the 6 week school summer holiday when you're only going for 2 weeks?

If it was your money, would you rent enough space for everyone to have a desk when they are occupied for less than 1/3 of their year?

Key Factors for CS Management:

Lead with integrity

32

Decisions:• Do CS lead the change or follow the front office?• What is the right use of space for CS as a business?

Leadership:• Change Management• Define Benefits• Return On Investment • Communication

Key Factors for CS Management:

Vision and culture

33

Team Orientated

Cost Conscious

Transparent

Diverse Specialists

Driven

Caring Leaders & Innovative

Client Focussed

Agile & Flexible

Collaborative & Communicative

Current Required

Key Factors for the Staff:

Keep your balance

34

• Offices / team rooms / meeting rooms• Inefficiency of set up / clear down time• Occupation health: ergonomic requirements and hygiene• Filing and personal storage• Technology Solution• Team Zones• Booking System• Video / tele conference• Home Working• Personalisation

Change Management Factors:

Convincing Staff and Management to change

35

Engagement: understanding and delivering department, team and individual requirements

Equality in space: Senior Management, Middle Management, Employees, Consultants, Temps

The real turning point: when they saw the space

The Real Turning Point:

36

after

Seeing the Space

before

Planning the space:

01 02 03 04 05 06 07

C

A

B

Shelving

Sh

elv

ingInteractive Whiteboard

AV

DSC

Team Rooms

Flex Desks

Touchdown Positions

Video Conferencing

Collaboration Room

Quiet / 1 to 1 Rooms

Building Libary

Copy / Fax / Mail / Stationery Point

Ergonomic Equipment Store

Breakout and Informal Meeting Space

Pantry

Space Type Key

The Real Turning Point:

Seeing the Space

38

working relaxing

The Real Turning Point:

Seeing the Space

39

clear, adjustable desks with easy access to power and data

The Real Turning Point:

Seeing the view

40

The Benefits:

For Now and the Future

41

Reduction in space = reduction in cost

No moves, adds & changes = reduction in cost

Satisfaction rating increased from 51% to 93%

Better space = higher satisfaction & motivation

• “It’s the best office I’ve ever worked in”• “I’m actually enjoying coming to work”• “I don’t want to come home, I’m

enjoying the office too much”

Implementing Flexible Working in a Downturn

A Practical Guide

Thank you