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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

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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

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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

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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 or

Business Park

‘Near Home’

Or Suburban

Office

Third Places

Virtual

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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

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Designing the Infrastructure

People Technology Facility

The Primary Considerations

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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

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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

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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

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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

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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

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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 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

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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

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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

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A Negative Spiral

• Increasing staff

resentment

• Lower morale

• Lower productivity

• Stifling innovation

• Are we stepping back

20 years?

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Investing in Flexible Working

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The Benefits Case

Link the Benefits Case to Deliverable KPIs

• Reduced absenteeism = £

• Reduced total occupancy costs = £

• Improved productivity = £

• Improved customer satisfaction = £

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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%

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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

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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 want Source: AMA Alexi Marmot Associates 2009

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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

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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 urgency

Credible 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

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Change Cycle

Resistance Commitment Exploration

Mo

rale

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

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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

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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/

Edict Influence Education/

Reasoning

Negotiation/

Arbitration

Involvement/

Ownership

Facilitation/

Participation

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Example of Process & Techniques

Vision

Comms

Vision

Comms

Staff Survey

(Pre)

Staff Survey

(Pre)

Envisioning

Workshop

Envisioning

Workshop

Frequently

Asked

Questions

Frequently

Asked

Questions

Town Hall

Presentation

Town Hall

Presentation

Benchmarking

& Advice

Benchmarking

& Advice

Group Head

Interviews

Group Head

Interviews

Group

Workshops

Group

Workshops

Group

Presentation

Group

PresentationGuidelines

Comms

Guidelines

Comms Update

Guidelines

Update

Guidelines

Move

Comms

Move

Comms

Project Team

Briefing

Project Team

Briefing

Champion

Workshops

Champion

Workshops

Workplace

Guidelines

Workplace

GuidelinesWelcome

Pack

Welcome

Pack

Staff Survey

(Post)

Staff Survey

(Post)

LobbyingLobbying

Champion

Workshops

Champion

Workshops

Source: AMA Alexi Marmot Associates 2009

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Change Programme

Source: AMA Alexi Marmot Associates 2009

58

additional

tasks for

FlexSpace

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Success Factors

• Understand the requirement

• Identify leaders and partners

• Planned change management

• Use optimum solution

Source: AMA Alexi Marmot Associates 2009

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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

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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?

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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

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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

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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

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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

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The Real Turning Point:

36

after

Seeing the Space

before

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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

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The Real Turning Point:

Seeing the Space

38

working relaxing

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The Real Turning Point:

Seeing the Space

39

clear, adjustable desks with easy access to power and data

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The Real Turning Point:

Seeing the view

40

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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”

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Implementing Flexible Working

in a Downturn

A Practical Guide

Thank you