The Facilities Frontier: Third Places and New Corporate Workplaces

The Facilities Frontier

Glenn Dirks, Teletrips Jim Ware, Work Design Collaborative Barbara Sprenger, Satellite Work Centers Diane Coles, SCAN Health Plan

February 24, 2010 Juniper Networks

Sunnyvale

© Copyright 2010 by The Work Design Collaborative. All rights reserved

Two-Thirds of Knowledge Work Today Is Done Outside Organizational Facilities

“Third Place”

At Home—35%

In Between –30%

“First Place” “Second Place”

- 1 -

Corporate Facilities–35%

© Copyright 2010 by The Work Design Collaborative. All rights reserved

The Business Case for Distributed Work Support Cost Per Worker*

- 2 -

Traditional Office Environment 80% of Workforce Flexible/Mobile

HR/Admin

IT

CRE/Facilities

* Hypothetical data, calculated using the WDC ROI Calculator

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

© Copyright 2010 by The Work Design Collaborative. All rights reserved

Shifting to a Third Place for Workforce Support*

- 3 -

Traditional Office Environment

Third Place Costs

HR/Admin

IT

CRE/Facilities

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Source: WDC proprietary financial models

© Copyright 2010 by The Work Design Collaborative. All rights reserved

A New Kind of Workplace is Emerging We call it a “Business Community Center™”

- 4 -

© Copyright 2010 by The Work Design Collaborative. All rights reserved

A Case Example Prescott, Arizona

- 5 -

Publicly Funded

Focused on Workforce

Development

Advanced Video

Conferencing “Concierge”

Services

Aimed at Entrepreneurs

© Copyright 2010 by The Work Design Collaborative. All rights reserved

The Prescott BCC

- 6 -

20% 30%

50 %

Membership

Micro Businesses

Corporate Employees

Self-Employed

Word of Mouth Works

People Need Resources

Offer a Variety of Spaces

It Can Become Self-Sustaining

Important Lessons

1

Remote !Work!

Email!

Mainframe!PC! Broadband!

Dial-Up!

Post!

Cell Phone!Smart Phone!

Laptop! VPN @ !15Mbs/sec!

IM!

Desk Phone!

Carbon !Savings!

Management !Acceptance! Price of Oil!

3

TheChallenges

2006TeleworkSurvey42%preferworkingnearhome,notinhome

11%

11%

16%

21%

29%

43%

44%

0% 10% 20% 30% 40% 50%

DistracDons

Business‐QualityEquip

ProfessionalEnvironment

High‐speedBroadband

Onsitetechsupport

Keephome/workseparate

IsolaDon

4

5

TheSoluDon:LocalWorkspaceCenters

•  Small,neighborhood‐based

•  Nearcommuters’homes•  Catertouseoftechtools•  24/7access,tracking•  Staffed•  Flexiblespace

6

TheSatellite

7

What’sImportant

•  AestheDcs–comfortableworkspacevital!•  LocaDon–walktocoffee,lunch&drinks(andshopsandparks

andgym)

•  Instantready‐to‐work•  Membership‐based‐‐Needsvary,plansvary•  “Hoteling”‐‐Flexiblescheduling,flexibleworkspaces•  24/7access•  BalanceofautomaDonandpersonalservice•  Communitycenterconcept

CostsandSavingsCommuter Per

Month Employer PerMonth

SatelliteMembership,3d/wk $285 SatelliteMembership,3d/wk $285

Save25mileseachway,3x/week@$.55/mi.

($330) Savings:HR/AdminFacilityspacecostsOfficeequippurch&mtce

51%*

Officespacetaxsavings@34%fedandstate

($97)

TransportaDontaxsavings(tocorporateHQ)

($75)

TotalMONTHLYSAVINGSaker7.5%ofAGI

($217) *fromFutureofWork

8

9

Quality of

Life

Increased Productivity

Reduced Carbon

Footprint

Enhanced Community/

Local Business

10

 Thesaddestaspectofliferightnowisthatsciencegathersknowledgefasterthansocietygatherswisdom…IsaacAsimov

1

■  Real Estate Challenges – Changes in federal regulations

– Rapid growth

– Expansion

– Attracting and retaining talent

– Corporate facility at some risk

– Space did not meet 2012 vision and culture

– High workforce support costs

Aligning Strategy with Real Estate Challenges

2

  Enabling face-to-face management

  Inefficient space   Traditional “grid” workplace

design   Hierarchical   Space, technology, and services

were silos   Focus on place   Cost focus   No attention to Green

  More distributed/virtual workforce   Less space but better space, and

more effectively used   More exciting, creative space that

fosters teamwork & innovatio (NO SILOS)

  Less hierarchy   Integrated solutions of space,

technology, and services

  Focus on work   Cost focus – with benchmarking   Go Green

In 2007 New Direction

Redefining Our Workplace

3

■  Charter to re-align the real estate portfolio to reduce cost and handle growth

■  Moved several hundred employees to flexible work

■  In 2008 went from 185 sf/person to 155 sf/person at corporate headquarters

■  Achieving an ROI of 40%

■  Redesigned the workplace planning process, saving 38% in cost and time

Embracing the Future of Work

4

The New Space Concept

■  The Neighborhood –  Townhouse

–  Single Occupant

–  Phone Booth

–  Café

–  Library

–  Mail Box Etc. / Copy Center

5

New Collaboration Spaces

6

New Collaboration Spaces

7

The Townhouse

8

The Townhouse

9

The Call Center Solution

10

Cost to Reconfigure Space

11

Cost to Reconfigure Space

12

Making SCAN more Flexible/Agile

© Copyright 2002-2010 Work Design Collaborative LLC. All rights reserved.

13

The Youtube Video

http://www.youtube.com/watch?v=k1A9AdVd0Ks

14

Diane Coles, MCR Director, Workplace Services

SCAN Health

dcoles@scanhealthplan.com

+1 562 989 8327 voice

Glenn Dirks http://www.teletrips.com

gdirks@teletrips.com

+1 650 948 5899 voice

+1 650 867 4242 mobile

For Further Information

Barbara Sprenger

http://www.thesatelliteinc.com

bsprenger@thesatelliteinc.com

+1 831 222 2100 voice

+1 831 345 6529

Dr. James Ware http://www.thefutureofwork.net

jim@thefutureofwork.net

+1 510 558 1434 voice

+1 510 206 8147 mobile