defining, measuring and benchmarking productivity paul bartlett office productivity network
TRANSCRIPT
Defining, measuring and benchmarking productivity
Paul BartlettPaul BartlettOffice Productivity NetworkOffice Productivity Network
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IntroductionIntroduction
Economic ImportanceEconomic Importance Measurement of Office Measurement of Office
ContributionContribution Office Productivity NetworkOffice Productivity Network The OPN IndexThe OPN Index Financial Sector RelativityFinancial Sector Relativity
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Economic ImportanceEconomic Importance
145 Million sq m Office Space in UK145 Million sq m Office Space in UK 28 million people accommodated28 million people accommodated 60% of added value created by office 60% of added value created by office
workersworkers Operational cost of 100 billion paOperational cost of 100 billion pa
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The Office as Capital The Office as Capital EquipmentEquipment
Dominant purpose of office building Dominant purpose of office building and services is to enhance occupier’s and services is to enhance occupier’s outputoutput
Output dependent on staff Output dependent on staff performanceperformance
Real value determined by Real value determined by contribution to workforce productivitycontribution to workforce productivity
Analogous to manufacturing plantAnalogous to manufacturing plant
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Business costsBusiness costs
Staff - 75%
Assets - 20%
Initial - 4%
Running - 1%
(Source: Williams, 1994)
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Defining ProductivityDefining Productivity
““productivity is the extent to which activities productivity is the extent to which activities have provided performance in terms of have provided performance in terms of system goals” (Parsons, 1993)system goals” (Parsons, 1993)
““the increase in the amount of time work is the increase in the amount of time work is being done with a decrease in absenteeism, being done with a decrease in absenteeism, a decrease in employees leaving work early, a decrease in employees leaving work early, a reduction of extra long lunches and the a reduction of extra long lunches and the increase in quantity and quality of work” increase in quantity and quality of work” (Dorgan Associates, 1993) (Dorgan Associates, 1993)
““a measure of what can be achieved by a measure of what can be achieved by humans with the least effort” (Lorsch & humans with the least effort” (Lorsch & Abdou, 1994)Abdou, 1994)
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Defining ProductivityDefining Productivity Performing tasks more accuratelyPerforming tasks more accurately Performing faster without loss of accuracyPerforming faster without loss of accuracy Capability to perform longer without tiringCapability to perform longer without tiring Learning more effectivelyLearning more effectively Being more creativeBeing more creative Sustaining stress more effectivelySustaining stress more effectively Working together more harmoniouslyWorking together more harmoniously More able to cope with unforeseen More able to cope with unforeseen
circumstancescircumstances Feeling healthier and so spending more time at Feeling healthier and so spending more time at
workwork Accepting more responsibilityAccepting more responsibility Responding more positively to requestsResponding more positively to requests(Source: NEMA, 1989)
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Defining ProductivityDefining Productivity
““The ratio of output to input”The ratio of output to input”
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Impact of Environment on Impact of Environment on PerformancePerformance
time staff waste time staff waste complainingcomplaining
absenteeismabsenteeism length of time working, length of time working,
lethargylethargy attitude to attitude to
company/loyaltycompany/loyalty mental & physical mental & physical
performanceperformance errors/repetition of errors/repetition of
taskstasks wasted time (downtime)wasted time (downtime) document accessdocument access
level of level of concentrationconcentration
creativitycreativity work style/team-work style/team-
workingworking staff turnoverstaff turnover motivation, base motivation, base
needsneeds impression upon impression upon
visitorsvisitors learning abilitylearning ability
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Routes to ProductivityRoutes to Productivity
Cost
Performance
High Low
High
Low
Quality Route
Saver Route
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OPN ThesisOPN Thesis
The impact of the office environment on The impact of the office environment on business performance and staff output is business performance and staff output is poorly understoodpoorly understood
The consequences of a property change on The consequences of a property change on business productivity are rarely quantified or business productivity are rarely quantified or analysed and, at worst, are entirely ignored. analysed and, at worst, are entirely ignored.
By investing management attention on By investing management attention on productive offices, shareholder value can be productive offices, shareholder value can be increased for the occupying business, and increased for the occupying business, and their suppliers.their suppliers.
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OPN ObjectivesOPN Objectives
To encourage and support the To encourage and support the generation of data on the impact of generation of data on the impact of buildings on workforce performance. buildings on workforce performance.
To provide for members a To provide for members a framework for exchange of framework for exchange of information on the impact of all information on the impact of all aspects of the indoor environment aspects of the indoor environment on office worker productivity. on office worker productivity.
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Core MembershipCore Membership BarclaysBarclays KPMGKPMG Lloyds TSBLloyds TSB Johnson ControlsJohnson Controls Royal MailRoyal Mail ReutersReuters Advanced Interior Advanced Interior
SolutionsSolutions TSKTSK Swanke Harden Swanke Harden
ConnellConnell
GlaxoSmithKlineGlaxoSmithKline British LandBritish Land Workspace Office Workspace Office
SolutionsSolutions BTBT PricewaterhouseCoopePricewaterhouseCoope
rsrs UnileverUnilever HM TreasuryHM Treasury OPDOPD AedasAedas
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Key Project ObjectiveKey Project Objective
How do you distinguish a good How do you distinguish a good building from a bad one?building from a bad one?
How do you rank buildings which How do you rank buildings which contribute to the occupants business contribute to the occupants business performance above those that performance above those that detract from it?detract from it?
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OPN IndexOPN Index
OPNI designed to be component in OPNI designed to be component in communicating objective view on office communicating objective view on office building to inform decisions on its future building to inform decisions on its future ((acquire,acquire, tweak, refurbish, disposetweak, refurbish, dispose))
(Semi) Objective and quantitative(Semi) Objective and quantitative Based on 100 question balanced scorecardBased on 100 question balanced scorecard OPNI is interview OPNI is interview not self-completionnot self-completion, as , as
many questions require interpretation by many questions require interpretation by interviewer. interviewer.
Interviews take less than 2 hrs per building Interviews take less than 2 hrs per building including walk-round.including walk-round.
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Key FactsKey FactsKey Facts
1 Number of individual buildings at this site?
2 Number of floors?
3 What is the Net Internal Area (sq m) - (broken into workstation/cellular office area, support area, meeting room area, catering area etc.)?
4 Date of construction?
5 Date of last major refurbishment?
6 What is the heating and ventilation system (classify according to generic type and proportion of building covered)?
7 Is the location CBD, other urban, out of town, business park)?
8 Number of workstations (with number in cellular offices identified separately)?
9 Number of meeting rooms?
10 Total building headcount (fte if easily available)?
11 What are the operations undertaken in the building?
12 Do you have any environmental certification eg BREEAM, ISO14001
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Question Examples 1Question Examples 1
11 Are there obvious narrow or obstructed circulation routes?
12Is the proportion of support space (e.g. meeting rooms, copy, vending) appropriate for the operations?
13Was a study carried out to determine the number and size of the meeting rooms?
14Does the proportion of cellular offices to open plan desks meet the requirements of your business?
15Are enclosed offices located on the perimeter or other source of natural light (e.g. atrium) and so block daylight to the open plan desks?
16What is the typical size of normally single occupancy enclosed offices?
Design & LayoutYes many Yes some No none Don't know
No Moderately Ideal Don't know
Not applicable
No not really Yes but not implemented
Yes surveyed and implemented
Don't know
No not really Yes partially Yes totally Don't know
Yes and block daylight
Some, partially blocking daylight
Located around core only
Don't know Not applicable
<9 m² >15 m² 9 - 15 m² Don't know
Grade Mixed Function Don't know
Not applicable
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Question Examples 2Question Examples 2
42 Are any meeting rooms provided on the main workspace floors?
43 Are any vending/tea points provided on the main workspace floors?
44Are any copy/fax/print facilities provided on the main workspace floors?
45 Do staff have access to bulk reprographics/printing facilities?
46 Do you provide access to a crèche facility?
47 Do you provide access to a sports/leisure facility (eg gym)?
Facilities & AmenitiesNo none Yes some Yes all floors Don't know
No none Yes some Yes all floors Don't know
No none Yes some Yes all floors Don't know
No not at all Yes but off-site Yes on-site Don't know
No not at all Yes but off-site Yes on-site Don't know
No not at all Yes nearby/membership Yes on-site Don't know
No not at all Partial access Access for all Don't know
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Result OutputResult Output
Percentage score of building for overall Percentage score of building for overall performance and sub-divided into categories: performance and sub-divided into categories:
Infrastructure and supportInfrastructure and support Environmental ConditionsEnvironmental Conditions Facilities and AmenitiesFacilities and Amenities Design and LayoutDesign and Layout Location and AccessLocation and Access
Set against Upper and Lower Quartile for DatasetSet against Upper and Lower Quartile for Dataset
Short commentary identifying salient points, Short commentary identifying salient points, photographs and areas for future attention.photographs and areas for future attention.
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Current BenchmarkCurrent Benchmark
Building 39
0
20
40
60
80
100
Sc
ore
%
U QuartileL Quartile
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Survey Database Survey Database
Prime respondents were Facilities Prime respondents were Facilities Managers with day to day Managers with day to day responsibility for space (ie usually responsibility for space (ie usually building) being assessed. building) being assessed.
Some joint interviews with, for Some joint interviews with, for example, area property colleagues.example, area property colleagues.
29 Member premises; 10 clients29 Member premises; 10 clients
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DatabaseDatabase
Total of 39 buildings – est. 1,000,000 Total of 39 buildings – est. 1,000,000 sq msq m
est. 60,000 total workstations est. 60,000 total workstations 2/3rd buildings fully A/C2/3rd buildings fully A/C 1950s to 2004 construction1950s to 2004 construction Single to 25 storeysSingle to 25 storeys
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Illustrations of surveyed Illustrations of surveyed officesoffices
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15 year old desk partitions 15 year old desk partitions appear high by modern appear high by modern
standardsstandards
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Tower working floorTower working floor
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Large staff restaurant used Large staff restaurant used as informal meeting spaceas informal meeting space
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Central AtriumCentral Atrium
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New building where staff New building where staff liked low light levelsliked low light levels
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A small office A small office - - showing the achievement of relatively high showing the achievement of relatively high
densities on the working floors without densities on the working floors without degrading working conditionsdegrading working conditions
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New office New office –– highly flexible with gradation of workstation highly flexible with gradation of workstation
bookabilitybookability
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Current DatabaseCurrent Database
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
B H C E X TAD J Y D AB AJ W G AA AE Z Q AC A F L U AL R M N I
AG AI K AF S AK O P AH V
Overall score
lower q
upper q
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Overall PerformanceOverall PerformanceOverall
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
Bu
iold
ing
s
Overall
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Performance by CategoryPerformance by CategoryDatabase - categories
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
500.0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33
Buildings
%
Infrastructure and Support
Environmental Conditions
Facilities and Amenities
Design and Layout
Location and Access
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Responses to Individual Responses to Individual Questions 1Questions 1
Q How long is the average journey to work location time?
70% say between 30-60 minutes
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Responses to Individual Responses to Individual Questions 2Questions 2
Q What is the ratio of meeting rooms to staff?
54% say > 1 :40
30% say between 1 :20-40
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Responses to Individual Responses to Individual Questions 3Questions 3
Q What proportion of workstations are unoccupied at any one time?
60% believe it’s less than 25%
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Responses to Individual Responses to Individual Questions 3Questions 3
Q Are meeting times dictated by the Q Are meeting times dictated by the availability of appropriate rooms?availability of appropriate rooms?
Nearly 40% say never but over 50% Nearly 40% say never but over 50% say sometimessay sometimes
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Responses to Individual Responses to Individual Questions 4Questions 4
Q Is temperature/ventilation a Q Is temperature/ventilation a significant source of staff significant source of staff complaints?complaints?
In 85% of offices it is sometimes or In 85% of offices it is sometimes or oftenoften
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Responses to Individual Responses to Individual Questions 5Questions 5
Q Do you monitor business measures Q Do you monitor business measures of productivity?of productivity?
In 50% of cases there are no measuresIn 50% of cases there are no measures
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Financial SectorFinancial Sector
Slightly lower overall scoreSlightly lower overall score High performance in Location and High performance in Location and
Environmental conditionsEnvironmental conditions Lower in Design and layoutLower in Design and layout
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Financial Sector and Overall Average
72.0
74.0
76.0
78.0
80.0Location and Access
Design and Layout
Facilities and Amenities
Environmental Conditions
Infrastucture and Support
Overall
Average
Financial Average
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Next StepsNext Steps
Revise and update (at margin) the Revise and update (at margin) the questionsquestions
Review costing comparisonReview costing comparison Expand databaseExpand database Expand sectoral analysisExpand sectoral analysis Publish principles and outcomes – Publish principles and outcomes –
interpret as design and management interpret as design and management guidanceguidance
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Contact DetailsContact Details
Paul BartlettPaul Bartlett
SBS Business SolutionsSBS Business Solutions
Tel: 01379 678899Tel: 01379 678899
Email: Email: [email protected]@sbssol.co.uk
Web: Web: www.officeproductivity.co.ukwww.officeproductivity.co.uk