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Flexible Working in a Downturn
- 1. 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
- 2. The downturn Onone hand… Euro area unemployment is up to 9.5% Euro area GDP has declined 4.7% in the last year The banks are still unwilling to lend On the other hand… France & Germany are ‘out’ of recession A number of ‘green shoots’ have been seen FTSE is rising
- 3. 2009 2010 2011GDP Possible recovery scenarios Sustained recession with delayed recovery Sustained decline with mirrored rate of recovery Short term recovery followed by decline and recovery
- 4. Agile Working AgileWorking 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
- 5. Types of WorkingEnvironments 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 or Business Park ‘ Near Home’ Or Suburban Office Third Places Virtual
- 6. Selecting the Modelfor 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
- 7. Designing the InfrastructurePeople Technology Facility The Primary Considerations
- 8. Importance of PeopleManagement 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
- 9. Importance of TechnologyVirtualisation- 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
- 10. The Role ofthe 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
- 11. Implementing in aDownturn 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 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
- 12. Why Implement AgileWorking? 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
- 13. Workplace Challenges ImpactDemonstrable 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 gaps around 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
- 14. The Need toInnovate Cameron & Quinn 100% of organisations want their culture to be more creative and innovative 96% want their culture to be less controlling and hierarchical
- 15. The Response toa Downturn Cameron & Quinn t Managers reverting to comfort zones - an increase in control A clocking on culture re-appearing Erosion of trust
- 16. A Negative SpiralIncreasing staff resentment Lower morale Lower productivity Stifling innovation Are we stepping back 20 years?
- 17. Investing in FlexibleWorking
- 18. The Benefits CaseLink the Benefits Case to Deliverable KPIs Reduced absenteeism = £ Reduced total occupancy costs = £ Improved productivity = £ Improved customer satisfaction = £
- 19. ECHQ – doingit 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%
- 20. 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
- 21. Making Change Don’tforce change, guide it Support staff to form their own opinion and solutions Give some of what they want to affect change you want Source: AMA Alexi Marmot Associates 2009
- 22. 7 Cs ofChange Set the stage … decide what to do make it happen … then make it stick Source: AMA Alexi Marmot Associates 2009 C reate sense of urgency C redible team C larify vision and strategy C ommunicate C onsult and empower C elebrate short-term wins C ement the new culture
- 23. Tools for ChangeSelect 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 C reate urgency C redible team C larify vision C ommunicate C onsult / empower C elebrate wins Set the stage Decide what to do Make it happen Make it stick C ement new culture Source: AMA Alexi Marmot Associates 2009
- 24. Change Cycle Resistance Commitment Exploration Morale Denial Resisting change, anger at change Bargaining & 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
- 25. Barriers to ChangeWhy 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
- 26. Dealing with ResistanceSource: AMA Alexi Marmot Associates 2009 Tell me and I’ll forget Show me and I will remember Involve me and I’ll understand (Lao Tse, circa 600 BC) Coercion/ Edict Influence Education/ Reasoning Negotiation/ Arbitration Involvement/ Ownership Facilitation/ Participation
- 27. Example of Process& Techniques Source: AMA Alexi Marmot Associates 2009
- 28. Change Programme Source: AMA Alexi Marmot Associates 2009 58 additional tasks for FlexSpace
- 29. Success Factors Understandthe requirement Identify leaders and partners Planned change management Use optimum solution Source: AMA Alexi Marmot Associates 2009
- 30. The Client Experience:Flexible working at Morgan Stanley Our Business Principles: Lead with integrity Put clients first Win in the marketplace Think like an owner Keep your balance
- 31. The Key Factor: Think like an owner 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?
- 32. Key Factors forCS Management: Lead with integrity 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
- 33. Key Factors forCS Management: Vision and culture
- 34. Key Factors forthe Staff: Keep your balance 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
- 35. Change Management Factors:Convincing Staff and Management to change 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
- 36. The Real TurningPoint: Seeing the Space before after
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- 38. The Real TurningPoint: Seeing the Space working relaxing
- 39. The Real TurningPoint: Seeing the Space clear, adjustable desks with easy access to power and data
- 40. The Real TurningPoint: Seeing the view
- 41. The Benefits: ForNow and the Future 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”
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- 43. Implementing Flexible Working in a Downturn A Practical Guide Thank you