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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
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© 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”
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Corporate Facilities–35%
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© Copyright 2010 by The Work Design Collaborative. All rights reserved
The Business Case for Distributed Work Support Cost Per Worker*
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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
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© Copyright 2010 by The Work Design Collaborative. All rights reserved
Shifting to a Third Place for Workforce Support*
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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
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© Copyright 2010 by The Work Design Collaborative. All rights reserved
A New Kind of Workplace is Emerging We call it a “Business Community Center™”
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© Copyright 2010 by The Work Design Collaborative. All rights reserved
A Case Example Prescott, Arizona
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Publicly Funded
Focused on Workforce
Development
Advanced Video
Conferencing “Concierge”
Services
Aimed at Entrepreneurs
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© Copyright 2010 by The Work Design Collaborative. All rights reserved
The Prescott BCC
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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
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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!
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TheChallenges
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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
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TheSoluDon:LocalWorkspaceCenters
• Small,neighborhood‐based
• Nearcommuters’homes• Catertouseoftechtools• 24/7access,tracking• Staffed• Flexiblespace
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TheSatellite
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What’sImportant
• AestheDcs–comfortableworkspacevital!• LocaDon–walktocoffee,lunch&drinks(andshopsandparks
andgym)
• Instantready‐to‐work• Membership‐based‐‐Needsvary,plansvary• “Hoteling”‐‐Flexiblescheduling,flexibleworkspaces• 24/7access• BalanceofautomaDonandpersonalservice• Communitycenterconcept
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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
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Quality of
Life
Increased Productivity
Reduced Carbon
Footprint
Enhanced Community/
Local Business
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Thesaddestaspectofliferightnowisthatsciencegathersknowledgefasterthansocietygatherswisdom…IsaacAsimov
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■ 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
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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
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■ 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
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The New Space Concept
■ The Neighborhood – Townhouse
– Single Occupant
– Phone Booth
– Café
– Library
– Mail Box Etc. / Copy Center
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New Collaboration Spaces
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New Collaboration Spaces
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The Townhouse
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The Townhouse
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The Call Center Solution
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Cost to Reconfigure Space
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Cost to Reconfigure Space
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Making SCAN more Flexible/Agile
© Copyright 2002-2010 Work Design Collaborative LLC. All rights reserved.
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The Youtube Video
http://www.youtube.com/watch?v=k1A9AdVd0Ks
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Diane Coles, MCR Director, Workplace Services
SCAN Health
+1 562 989 8327 voice
Glenn Dirks http://www.teletrips.com
+1 650 948 5899 voice
+1 650 867 4242 mobile
For Further Information
Barbara Sprenger
http://www.thesatelliteinc.com
+1 831 222 2100 voice
+1 831 345 6529
Dr. James Ware http://www.thefutureofwork.net
+1 510 558 1434 voice
+1 510 206 8147 mobile