genentech's data driven approach to portfolio planning
TRANSCRIPT
Genentech's data driven approach to portfolio planning delivers flexibility for business and workforce competitiveness
Chirag Kadiwar Portfolio Strategy and Analytics
Background on Genentech • Business and Work
Real Estate Portfolio • Facts and Drivers
Portfolio Observations, Actions and Results • Occupancy • Utilization • Long-Term Outlook
Topics
Founded more than 35 years ago, Genentech is a leading biotechnology company that developes medicines to treat patients with serious or life-threatening medical conditions
Facts
• Founded in 1976 • Became a member of the Roche Group
in March 2009 • Headquarter in South San Francisco,
California for all Roche pharmaceutical operations in the United States
• Over 12,300 employees • Genentech sells approximately 35
products in the US • US Pharmaceutical sales were $14.7
billion in 2012
Work Changes Global work, new technologies, changing workforce demographics continue to push how we get work done.
Genentech’s business and work continues to evolve
Business Changes New Platforms for Cancer Research with ADCs, Insourcing Manufacturing
Real Estate Portfolio Facts
• 5 Major Locations o South San Francisco, CA (HQ) o Vacaville, CA o Hillsboro, OR o Oceanside, CA o Louisville, KY
• +400 acres of owned land • 82 Buildings (leased and owned) • Portfolio of 7.2 MSF of space
South San Francisco
Oceanside
Hillsboro
Vacaville
Louisville
1. Portfolio Effectiveness
• 95% space occupancy by 2013 • Target < 200 GSF/seat • Increase real-time space utilization • Genentech as a “Better Place to Work”
2. Portfolio Elasticity
• Maintain 10% flexibility to increase or reduce portfolio at a short notice
Office Portfolio Drivers
2010 2011 2012
# of Seats Total Square Footage Seat Demand
8%
Projected Demand
Occupancy
• business units hire globally • we can’t hire as quickly • attrition unaccounted for in planning
Occupancy Rate
capa
city
/ dem
and
• CAFM system implemented in late 2010 • Portfolio planned at 92% with 8% reserve • Occupancy lags demand by 8%
92%
84%
Occupancy
Real Estate works with Business Functions on an annual basis to allocate blocks of seats
Adjacency requests will be accommodated based on space availability, amount of disruption, and cost
Real Estate retains ownership of all unoccupied seats (allocated or not)
Space Policies
Company-wide adoption of “hotel” program
Modernize the Work Environment
1. Transition from 8’x 10’ to 6’x 8’ workstations
2. Increase capacity by min. 20% to use space more efficiently
3. Emphasis on informal collaboration via unconventional work environments
4. New technology for distant collaboration 5. Change management process 6. Achieved better than 200 GSF/Seat
# of Seats Total Square Footage Seat Demand Occupancy
Leased Space Exited at HQ
Reduced Flexible Lease and Optimized Portfolio
$3M annual reduction in operating costs
numbers used in this presentation is for illustrative purpose only, % reflect the actuals
2012 2010 2011
8% capa
city
/ dem
and
92%
84%
95%
• Planned portfolio at 95% occupancy
2012 2010 2011
capa
city
/ dem
and
35%
Real Time Utilization Data
• Employees in Meeting, Travelling, Vacation or Working Remotely
• Spaces lacking “buzz”
2013
Real Time Utilization is Even Lower
# of Seats Total Square Footage Seat Demand Occupancy
numbers used in this presentation is for illustrative purpose only, % reflect the actuals
• Average utilization of individual spaces at ~35% • Almost 2/3 of space is under utilized
Utilization
Workplace Research
Evolving Genentech to be a better place to work
Choice & Collaboration Survey Online survey to understand individual, team, and department collaboration and work styles
Enablers Workshops “what things will support your ability to do the work essential to achieve the outcomes defined by your senior leaders?
Business Intent Interviews “what outcomes will indicate that your business has been successful?”
Work Practices Workshops “what will you need to do in order to achieve the outcomes defined by your senior leaders?”
Space Utilization Observed work patterns of spaces in use, including individual and common space types
Post Prototype Occupancy Survey Online survey to evaluate how well the new work environment supports the desired successful behaviors
• Social, technological and physical • Group assigned – individually unassigned
spaces with partial work from home arrangement
• “Business lounge” • 10 prototypes across the campus in 2013/14;
50 employees in each prototypes, a total of 500 employees
“New Ways of Working”
environment work practices results
enable drive
2014 2015
Results
numbers used in this presentation is for illustrative purpose only, % reflect the actuals
2012 2010 2011
capa
city
/ dem
and
2013
Leased Space Exited at HQ
$2M annual reduction in operating costs
• More lease exits in 2013
2014 2015
Results and Next Steps
numbers used in this presentation is for illustrative purpose only, % reflect the actuals
2012 2010 2011
capa
city
/ dem
and
2013
Leased Space Exited at HQ
$2M annual reduction in operating costs
• More lease exits in 2013 • Planning the portfolio with a headcount higher than capacity and
continue to optimize • New office building online in 2015
New Office Building
• 250,000 GSF with 1300 seats and a cafeteria
• Full implementation of “New Ways of Working” to optimize space while creating an energized work environment
Tradeline 3
1. Develop a robust understanding and accurate reporting of key metrics for your organization
1. Partner with business groups with a focus on adding value
to business 1. The future of workplace is not a destination, it’s a journey!
Questions
Chirag Kadiwar http://www.linkedin.com/in/chiragkadiwar