getting real: transforming the workplace at scan health
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Getting Real:Transforming the Workplace at SCAN Health
IFMACorporate Real Estate Council
Sheraton Vancouver Wall Centre
Vancouver, BCApril 1, 2009
Diane ColesDirector, Facilities and ServicesSCAN Health Plan
Dr. Charles GranthamDr. James WareExecutive ProducersWork Design Collaborative
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Copyright 2009 by The Work Design Collaborative. All rights reserved - 2 -
Todays Agenda
Goal: A conversation about the benefits of makingflexible work work and how to do it
Some Topics for Discussion:
Why is remote/mobile work so important ? What are the challenges of implementing aflexible work program?
What kind of business impact does flexible workproduce?
What are the important lessons learned fromthe SCAN Health Plan experience?
What is the future of flexible work?
Agendaimportanceofmobileworkchallengesareal-worldexample
guidelinesforsuccesslookingw
ayahead
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An Important Perspective
The way we work is changing, which will be followedshortly by wherewe work or you disappear . . .
Work Place
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Work Evolves
Whatwork is changes: from
agriculture to manufacturing toinformation
Howwork gets done changes: fromshovels to machines to computers
Wherework gets done changes:from open land to cities and villages
Whatworkers do changes: frombrute force to brain force
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Fact: Two-Thirdsof Knowledge Work TodayIs DoneOutside Corporate Facilities
CorporateFacilities
30%
At Home35%
In Between35%
1st place2nd place3rd place
Opportunity in next five years:
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The Distributed Workforce is Growing Rapidly
* Source: WDC Demographic Projections, 2008
Drivers of Change: documented Return on
Investment leadership support energy costs simplification of process public policy incentives (i.e.,
environmental impacts)
Barriers: old habits die hard middle management
resistance scarcity of expert resources technical and physical up-
front investments
Wildcards: recessionary economy technology development global politics/terrorism
1990 1995 2000 2005 2010
Number of Distributed Workers*
0
5000
10000
15000
20000
25000
30000
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Whats Really Going On?
Most of the institutions and business operations thatsupported industrial work styles are crumblingrapidly!
?
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Drivers of ChangeA Perfect Storm is Converging on the Workplace
Information Technology
GlobalizationDemographics
Public PolicySustainability
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Indiana Jones circa 2500 AD
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A 2010 Vision
Business travel significantly decreases;technologies substitute
Four-day work weeks Globalization of alljobs; companies go to
where the talent is located
Cubicles disappear in favor of collaborationspaces
Corporate headquarters housing hundreds or
thousands of workers disappear Free agency becomes the norm of
relationships between talent and company
Source: Challenger, Gray and Christmas, June 2008
WDCFutu
rescope
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SCAN Health PlanEmbracing the Future of Work
Charter to re-align the real estateportfolio to reduce cost and handlegrowth
Moved several hundred non-exemptemployees to flexible work
In 2008 went from 185 sf/person to155 sf/person at corporateheadquarters (goal is 112)
Achieving an ROI of over 40%
Now redesigning the workplaceplanning process, saving 38% incost and time
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SCAN Health Plan*Background
A not-for-profit MedicareAdvantage HMO
Based in Long Beach, California,with operations in Phoenix, Arizona
Approximately 850 employees
Focusing on both cost reductionand growth at same time
* SCAN = Senior Care Action Network
www.scanhealthplan.com
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Business Challenges
Changes in federal regulations Rapid growth Expansion into new areas Attracting and retaining talent
increasingly difficult
Corporate facility at some risk long-term, inflexible lease inappropriate physical location short of usable space
Space did not meet 2012 vision andculture
Workforce support costs high andgrowing
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Redefining SCANs Workplace Strategy
Enabling face-to-facemanagement
Inefficient space
Traditional grid workplacedesign
Space, technology, andservices were silos
Focus on placeCost focus
No attention to Green
More distributed/virtualworkforce
Less space but better space,and more effectively used
More exciting, creative spacethat fosters teamwork (NOSILOS)
Integrated solutions of space,technology, and services
Focus on workCost focus with benchmarking
Go Green
In 2006: New Direction:
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The AWESOME ProjectAlternate WorkplacesEngaging Staff andOfficeManagementEfficiencies
Project Activities:
Policy development Space Planning/Construction Technology Planning Business Unit Readiness
Facilities
LegalMarketing
HRIT
Risk Mgt. PM Office
Training & Change Management Communications Implementation
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The Business Case: Scenario Planning
18
*For the year 2010, assuming no change from 2006 business parameters
Baseline*2008
UpdateKey
Assumptions
Mobile Employees (Goal)
DW Sharing Ratio
Total Staff
Square Feet per Person
Facilities & FFE Cost/Empl
IT Support Cost/Empl.
HR Support Cost/Empl.
Admin Support Cost/Empl
CRE Support Cost/Empl.
Total Support Cost/Empl.
Conversion Cost/Empl.
249
3.50
865
164
$7,847
$10,109
$3,585
$8,033
$1,118
$42,435
--
2006Analysis
369
4.37
820
133
$7,036
$6,792
$2,188
$6,370
$ 980
$33,258
$11,412
369
4.37
820
133
$7,260
$10,802
$2,271
$6,370
$ 986
$37,498
$19,709
Selected Outcomes
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Three Dimensions of Success
Efficiency making the most of the space density of occupancy cost of occupancy cost of change (moves, adds, changes) ROI
Effectiveness making the most of the people attraction/retention of employees interaction among support groups (IT/HR/CRE) departmental productivity
Expression making the most of the mission employee engagementjob satisfaction/flexibility
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The Numbers
Provisioning cost
Provisioning time
Space requirements
Return on investment
Employee productivity
Employee engagement
38%
12 weeks to 3 days
22%
40%+
18%
No change
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Business OutcomesIn Summary
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Personal PerspectivesDrawn from Focus Groups
Employees
I would rather find another job thancome back in the office.
My production went up slightly athome, but my accuracy went wayup!
We feel we are more of a teamnow than when we were in theoffice.
We can talk to each faster thansomeone in the office when youcall the office you get voicemail.
Im calling my manager asking, Isthere anything else you want me todo?
Managers
We should have manager trainingprior to selecting remote workers.
Im surprised how quickly theyseparated themselves from the
office. They dont want to comeback.
The home-based workers aretelling me about things that I donteven know are happening here at
SCAN. Im concerned about keeping the
AWESOME employees connectedwith the company.
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Lessons Learned
Home office setup
Productivity
Communication
Space planning Managing remote workers
Unexpected marketing/recruitingbenefit
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The Next StepA Flexible Office for Flexible Work
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New Collaboration Spaces
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New Collaboration Spaces, continued
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New Collaboration Spaces, continued
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Participatory DesignUsing an Interactive Smartboard
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Workplace Policy in Pictures
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Space Standards
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Whats Around the Corner?
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Up to one-third of existing commercial(office) real estate market will evaporate inthree years
Customers will demand more balancebetween 1st, 2nd, and 3rd places
Lease length will decrease significantly Innovators will discover how to generate
revenue streams from sources other thanreal estate lease fees
There will be significant industryconsolidation
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Given the SCAN Story:
1. Does the corporate real estate industry
want to become a commodity in a shrinkingmarket?
or
2. Does it want to play a significant role insupporting work wherever and whenever it
takes place?
If option two, then . . .
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You Need a Strategy of Place
We are not in a normal business cycle
Someone has hit the re-set button on theentire wealth-creation machine.
The creation of wealth now depends on thecreation of knowledge and its application tosustainabilityboth environmental and social.
We must invest in the physical, technological,and social networks that support this post-industrial economic engine
Knowing whereto invest your resourcesbothgeographically and in which economic sectorswill produce a powerful competitive advantage
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A New Kind of Workplace is EmergingWe call it a Business Community Center
A shared facility and service operation
Located in suburban and exurban areasto reduce commuting
Available on an as-needed or drop-in
basis Fosters economic development;
supports local businesses
Provides enterprises with a communitypresence
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How is a BCC Different from Other ThirdPlaces?
Significantly lower price a low monthly membership fee for access modeled after a health club a base membership fee plus
incremental charges for incremental uses bulk of revenues are service fees
Location a network of smaller facilities located in or near residential
neighborhoods near other needed services and retail outlets.
(for example: day care and health clubs) leverages under-utilized commercial properties
Member experience multi-function (work, learning, service) hospitality model of business a place where you want to be
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What We are Doing Now
Helping SCAN refine the alternative workmodel in its core markets
Introducing concentration and order into theprovisioning process
Designing a Strategy of Place planningprocess
Developing a Playbook to guide expansioninto other geographies
Bringing Business Community Centers intothe portfolio planning process
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What are You Gonna Do Now?(Besides Call Us Hint, Hint)
You as a professionalYour firmThe industry
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For Further Information
Dr. Charles GranthamPrescott, Arizona
+1 928 771 9138 office+1 928 771 9138 fax+1 928 533 9149 [email protected]
Dr. James WareBerkeley, California
+1 510 558 1434 voice+1 510 558 1431 fax+1 510 206 8147 mobile
Website: http://www.thefutureofwork.net
Blog: http://www.thefutureofwork.net/blog
Book: Corporate Agility( http://www.corporateagilitybook.com )
Diane ColesLong Beach, California+1 562 989 8327 office
+1 562 427 7346+1 928 449 8998 [email protected]