Driving Organisational Culture Through Workplace Design – When

Moons Align

Peter Ward – Head of People & ChangeSouth Australia Water Corporation

Ambitious Objectives

• We wanted– a building that would help us shape the right culture– a building that would help us attract and retain the workforce we need to

remain sustainable– to bring laboratories and offices together in one building– a very green building … in Adelaide's CBD– to achieve this through a competitive market process – with a developer

team that would work in partnership with us– to avoid any cost premium to market prices

• Everybody told us it was impossible

• It wasn’t … here is our story

About Our Culture

What is high performance culture?

• Organisations recognise that culture is a competitive edge or tool to be used

• Defined by better:– Speed to market, response times– Ability to change, withstand buffetings– Ability to deliver promised outcomes– Profit , Service delivery performance

over the longer term– Attractiveness to prospective employees

• Continued high performance sustained over long periods

Definition: Performance Culture

‘A culture in which individuals, teams and the organisation achieve what they agree to achieve.

Other words that can be used for this are: accountability, achievement, focus, speed, delivery, discipline, meritocracy and rigour.

In a Performance Culture people deliver on their promises. When they say ‘I can do this’, whether it is to meet an annual target or fulfil a commitment to complete a report by Friday, it occurs. Rewards and consequences are aligned to delivery.The results are speed and focus because people are conscious of what they commit to; the assess risks more carefully and complete what they start. This provides confidence that what is targeted will be achieved.’

Human Resources Strategy

We then looked at various change examples andadapted a “high achieving culture” model

Relentless pursuit of Vision, Mission, Values, Strategy

Focus on Leadership

and Teamwork

Aligned by simple,

transparent processes & systems

Staffed by world class capability

Intense performance

driven environment (recognition,

reward & consequence management

)

HIGH ACHIEVING CULTURE

Supported by clear communication and transparent measurement

Cultural messages are sent through three channels

Channel Message sent by

BEHAVIOUR

•Observation of others•Especially key influences•What is said•What is done

SYMBOLS

•Where is time spent•Where resources are invested•Physical environment•What and who is rewarded•Who is involved in what•Voice of key stakeholders•Rituals

SYSTEMS

•Goal setting budgeting•Reporting and measurement•Remuneration•Performance management process

Workplace impacts

all of these

… which all convey what is valued in the organisation

About SA Water• 150 years old mid 2006• Previously Engineering and Water Supply Department

– Mega department for South Australia– Vertically integrated design to delivery– 8000+ staff at the peak

• Corporatisation July 1995– Commercial Charter– Public Service staff transferred– Metropolitan Operations outsourcing to United Water– Various B.O.O.T infrastructure– Dis-aggregation of core business– Design– Capital works– Resource planning and ownership– Asset owner

• Bottomed at 1100 staff in 2001, now 1450

When Moons Align – Seizing the Opportunity1. Culture survey identified accommodation as an issue –

Morale and Equity2. Aging, outdated facilities

– General condition is average to poor– Government policy requires SA Water to vacate Thebarton

(to be returned to parklands)– AWQC is outdated and inflexible, Grenfell St has limited capacity– Significant changes and upgrading is required – regional and metro

– within the next 5 years

3. Significant cost incurred because of the geographical spread4. Government accommodation standards not being achieved5. Alignment with sustainability values and chance to showcase

these6. Opportunity only occurs once in a career

– Culture, efficiency, address internal customer and communication issues

Best Practice Companies

SA Water 2003/04

• Business– Productivity/efficiency– Staff attraction and retention– Workforce morale– OH&S– Sustainability/ESD– Replace ageing accommodation

• Cultural– High achievement– Collaboration and teamwork– Openness and transparency– Sustainability– Employer of Choice

Strategic Intent

• Government Policy– State Strategic Plan– Parklands– Office accommodation

standards

• It is more than bricks and mortar

• Business case stacked up – do nothing/base case option not cheapest!

Key Requirements & Principles

• Flexibility, future-proof• Openness and transparency – no offices• Ecologically Sustainable - 5 Star Green Star

minimum• Healthier environment and natural light• Consider our customer’s needs• Part of the community• Facilities provided on the basis of need not

hierarchy• Encourages teamwork, collaboration and

communication• Staff input to their own workspace• Accessible Leaders

About Our Process

Three Key Processes

1. Planning a holistic process of change

– Unusual - we started with change management

2. Reinventing how we work

– Space requirements are easy – but what do you want staff to say and do?

– Allow people the opportunity to ask “why do we do it this way”– Extensive Consultation – executive, managers and staff, unions

3. Reinventing how a building is procured

– Allow people the opportunity to ask “why do we do it this way”

Build a great project team

– Within the organisation, key consultants (private + government), and the development partner

Unique Procurement Process

Change Management + Workplace BriefWhat is this building for … and how do we intend to use it … what can be different?36-6 months

Building Performance BriefDefining a building by what it does – not how to design/build itUsed both for RFP then as a design quality review

8 weeks

RFP – commercial + design responses – 3 bidders6 week design process3 workshops with each developer team design + commercialEncouraged to put forward innovation – and choicesTransparent, partnership building

6 weeks

Evaluation + ImplementationPartnership, Site, Design, CommercialWork in partnership to complete design against brief12 weeks+

DAIS REM + Project Risk Services our Partner

DEGW + ARUP our consultants

The results

We were able to meet many stakeholder requirements

Design:6 Star Green Star achieved 87 points

GOAC standards met or exceeded

Exciting and engaging design

High level of innovation

Integration of offices and laboratoriesCommercial:

Acceptable gross rent achieved( now comparably cheap!)

% increase achieved acceptable

High level of transparency

Best impact on long term financials(25 year NPV calculation)

Partnership:

Experienced and capable team

Willingness to engage and share information, share pain and gain

High level of trust

Openness and transparency

Site Objectives:

Best resolution of access and customer requirements

Great urban amenity

A memorable presence on the skyline and at street level

What is Change Management?

• Magic?• Risk management? • HR Gobbledy-gook?

The correct answer is Risk Management• Change Management is about applying simple risk management principles to

specific areas that research and history have shown are essential to the successful completion of all projects.

What are the specific areas?

• Staff Involvement/Engagement• Leadership• Communication• Workforce Transition• Training and Development• Performance Orientation

Why Engage Staff?

3 very good reasons:

• Cultural

• Risk Management

• Legal

Executive and Senior Manager

Workshop18 March

Building Design Brief

Manager & Team Leader

Workshops late March

Staff Workshops by end April

Staff Reference

Group early April

Change Management

Strategy and Plan

SA Water Change Management

Engagement Starts at the Top

• Executive and Senior Management Team workshop in March 2005

• Purpose: Create a shared understanding and vision

• Mission: Create a building that brings us together whilst allowing freedom & diversity leading to a dynamic organisation for a sustainable future.

• Draft project principles developed• Project objectives agreed• Opportunities and Threats identified

Staff Engagement- The Beginning• Staff Reference Group (SRG) of approximately 40

people established – training, process and support provided

• Staff consultation session conducted by the SRG• Approximately 650+ out of 800 people attended• Education and information provided – ESD, the case for

change, the procurement process, WIIFM • 1000’s of comments collected• Results presented to the Executive Team• Project principles changed to incorporate staff

suggestions• Project brief reflects staff preferences, particularly ESD• Results communicated to staff

Staff Engagement – During

• Intranet site established• Regular updates and articles in weekly staff newsletter• Regular presentations to SRG, Managers and work groups

and through them staff• Workplace Performance survey undertaken• Focus Groups during the design process

– Workstyles– Specialty areas– Laboratories– Office protocols

• Manager and staff involvement in decision making – eg ‘their areas’ and furniture

• Workpoint Pilot – approximately 300 people participated.• Site visits• Site training and induction programs (mandatory program)• Communication, communication, etc.

Staff Engagement – ‘Post’

• Ongoing communication during relocation and settling in

• Ongoing implementation of the office protocols• Maintain workplace design principles• Post-implementation Review to include:

– Changes to staff satisfaction and productivity– Changes in Workplace Performance Survey– Retention/attraction/to be employer of choice

• Relocation to the building is just the start of the journey.

The Induction ExperienceModules of Induction

1. Safety & Security e-learning– Security, Emergency Procedures & OHS (including Lab awareness)– Workstation set up

2. Behavioural – Site tour to assist with building orientation– A-Z Building User Guide– Workplace Protocols (in line with our Corporate Values)

3. Technical– Telephony (VoIP phones)– MFDs (Multi Function Device) copy, print, scan, fax– AV Equipment– Tele-Conference and Video Conference facilities

Induction cont.

Further Support for our People• Move Champions• Technology Champions• OHS&W Champions• IS Champions and intranet site set up with online tutorials, user

manuals and FAQs• Induction Support team

About Our Building

Snapshot of the Project

• Headcount – 940 people

• Area 17,000sqm

• over eight levels

– Offices 11,500sqm

– Laboratories 5,300sqm

– Learning 350sqm

• Density

– 13 sqm/p typical

– 15 sqm/p overall(SA Government guidelines)

• Costs

– building AU$2,900/sqm

– tenancy AU$1,350/sqm

– laboratory AU$5,300/sqm

• Rental

– AU$420/sqm (gross)

Assumed exchange rate AUD$1 : SGD$1

collaboration zonestair

atrium

2,000sqm per level

fritted double façade to West

Building and Fitout Design by

Hassell

Workplace Strategy by

DEGW

Furniture system1800 x 900

bench (mobile)supplier

Schiavello

circulation17%

offices18%

open work45%

interact + support

20%

Significant Increase inCollaborative + Shared Space

circulation20%

offices0%

open work31%

interact + support

49%

prior now

20%49%

Who gets an office?

• No one … but we have lots of quiet and collaborative and quiet spaces we share

• Offices are against our workplace principles!

• Was there resistance?• How did we tackle that?

Avoiding Cost Premium

• One Star 10 - 19 pts• Two Star 20 - 29 pts• Three Star 30 - 44 pts• Four Star45 - 59 pts Best Practice• Five Star 60 - 74 pts Australian Excellence

(broadly equivalent to LEED platinum)• Six Star 75+ pts World Leader

• The Green Building Council of Australia onlycertifies buildings that achieve a rating ofFour, Five or Six Stars

SA Water RFP

target

SA Water RFP achieved

at market rental!

2% market premium

Greenstar in context with typical building stock

4, 5, 6 star buildings

SA Water

Sustainability RatingGreenstar (Australia)

Category Total Points Available

Total Points Achieved

Management 12 12

Indoor Environment Quality 26 22

Energy 24 18

Transport 11 11

Water 13 12

Materials 14 9

Land Use and Ecology 8 4

Emissions 14 11

Total Credits 122 99

Innovation 5 3

Overall Weighted Score 87 design, probably 80 interiors

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(75+ points = 6 Greenstar)

Challenges

• West facing façade• Deep footprint (2000m2)• Tight programme• Tough IEQ & energy targets

Light & Views

• Central open atrium (the brief did not ask for an atrium – it came out of satisfying how we wanted to use the building)

• Western fritted veil• Automated blinds

Air

• Under Floor Ventilation• Individual control• 100% outside air• 150% to 300% increase in outdoor

air quantity compared to normal building

• C02 monitoring

• Low off gassing carpets, paints, sealants, adhesives & joinery

• Humidity Control

Conventional – sneeze recirculates

Under Floor – sneeze up and out!

Energy

• A fritted secondary glass skin in front of the building’s west façade to shade that façade and reduce solar loads while still retaining views and daylight.

• High performance double glazing to north, south and east facades

• Wider temperature band• Efficient water cooled chillers• 340kWe trigeneration (electricity, heating

& cooling)

Water

• Water efficiency• Rainwater collection• Class A water for toilet

flushing & cooling tower• Recycling of fire test water

Roof Level

Basement

50kL Buffer Tank

100kL Rainwater Tank

Class A Recycled

Water

100kL Header

Tank

Benefits to Date

• Attraction to prospective employees• Retention, pride in the workplace• Flexibility – work and meet anywhere• Improved communication• Everything is transparent, opportunity to standardise• Supportive of collaboration, people bump into each other• Staff Amenity• Changed leadership behaviours, manage by being seen and by overhearing• Mixing of cultures• Very little downsides

Building and Fitout Design by Hassell

Workplace Strategy by DEGW

End