facilities driven workforce mobility -...
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© 2011 IBM Corporation
Facilities Driven Workforce Mobility
October 11, 2011
Joe DellaTorreIBM Global Business Services
Reducing Costs whileIncreasing Productivity
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Building a Smarter Planet
TODAY’S AGENDA
The ContextThe Context
The WorkplaceThe Workplace
The WorkforceThe Workforce
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© 2011 IBM Corporation
The Context
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REAL ESTATE EXECUTIVE CHALLENGES
Key Responsibilities:Key Responsibilities:
1.1. A Safe & Reliable WorkplaceA Safe & Reliable WorkplaceManufacturingManufacturing OfficesOffices Data CentersData Centers
2.2. Provided at the lowest possible costProvided at the lowest possible costSpaceSpace EnergyEnergy Facilities OperationsFacilities Operations
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SAMPLE REAL ESTATE PORTFOLIO COST PROFILE
Space (Rent, Depreciation, Taxes and Insurance)
Facilities Operations (Grounds, Housekeeping, Equipment)
Energy (Electricity, Natural Gas, Fuel Oil)
~20%
~55%
~20%
~5% Other
Energy & Fac. Ops covers 40% of total cost
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WORKFORCE STRATEGIES AFFECT MOST REAL ESTATE COSTS
Space (Rent, Depreciation, Taxes and Insurance)
Facilities Operations (Grounds, Housekeeping, Equipment)
Energy (Electricity, Natural Gas, Fuel Oil)
~20%
~55%
~20%
~5% Other
However, 95% of cost is space driven by people requirements.
The Most Efficient Federal Building is the One You no Longer Have
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IBM Real Estate Overview
• 103 Million Square Feet• 1,700 locations (unique addresses)• 2,300 buildings• 63% leased and 37% owned• Diverse footprint: office, call center, customer briefing, datacenter, light manufacturing, chip fabrication, and research facilities• Median age varies from new buildings to 50+ year old buildings• Geographic distribution: Asia Pacific: 22%, Europe/Middle East/Africa: 23%, Latin America: 4%, North America: 51%
• Large Energy Consumers• Data Centers• Manufacturing (BVT and FKNY consume 40%)• Research & Development• Office Campuses
• Energy Represents 20% Global Real Estate Budget
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FIRST CHALLENGE: ALIGN ORGANIZATION TO SUCCEED
What We DoWhat We DoSpace / Lease ManagementSpace / Lease ManagementFacilities OperationsFacilities OperationsEnergy ManagementEnergy ManagementEnvironmentalEnvironmentalDesign and ConstructionDesign and Construction
Key ChallengesKey ChallengesChanging IBM Business ModelChanging IBM Business ModelLegacy Owned AssetsLegacy Owned AssetsRising Energy RatesRising Energy RatesAggressive Environmental AgendaAggressive Environmental AgendaGlobal IntegrationGlobal Integration
Energy / IT Leasing Space Asset Management
Workplace Standards
Global
VP Global Real Estate Operations
LA / CanadaJ. DeMarcoUS / Japan
Asia Pacific Construction / Engineering
Europe / Research
S. Palmisano
Chairman, President & CEO
Sr. VP, CFO
VP Controller
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Centralized GlobalData Warehouse
SecurityBadge In Data
Lease Data
Population &Workplace Indicators
BMSEquipment
Performance
TrackData CenterReliability
TrackConstruction
Spend
FacilitiesMaintenance
Cost
Work Orders
ConservationTracking
EnergyAnomaly
Data
Energy Usage /
Cost
SECOND CHALLENGE: DISPARATE DATA SOURCES
Getting a Handle on Your Real Estate Costs is a Precursor to Workforce Strategies
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APPROACHES TO TACKLE WORKFORCE COSTS IN TWO DIMENSIONS
Strategic Optimization Strategic Optimization -- Global Portfolio AnalysisGlobal Portfolio Analysis•• Aggregation of Key Global Indicators:Aggregation of Key Global Indicators:
•• Lease InformationLease Information•• Space UtilizationSpace Utilization•• Energy Usage & ConservationEnergy Usage & Conservation•• Work Order HistoryWork Order History•• Supplier PerformanceSupplier Performance
•• Drives resource and investment prioritization: higher efficiencDrives resource and investment prioritization: higher efficiency & effectivenessy & effectiveness
•• Focus on building efficiency through visibility to operating anoFocus on building efficiency through visibility to operating anomaliesmalies•• Software integrated with building systems to reportSoftware integrated with building systems to report
•• Ambient conditionsAmbient conditions•• Equipment malfunctionsEquipment malfunctions•• Set point deviationsSet point deviations•• Real time demand for water, HVAC and lightingReal time demand for water, HVAC and lighting
•• Automated response to improve building efficiency, reduce Co2 emAutomated response to improve building efficiency, reduce Co2 emissions & issions & improve reliabilityimprove reliability
Real Estate Transformation
Building Optimization Building Optimization –– Individual Building PerformanceIndividual Building Performance
1. Reduce Infrastructure based on consolidated cost data and
work at home/client opportunities
2. Reduce costs of remaining infrastructuresupporting seated workforce
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The Workplace
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e-Place On Demand: IBM’s Workplace Strategy
What is eWhat is e--place On Demand?place On Demand?A move from entitlement to shared A move from entitlement to shared spacespaceSpace that is more collaborative, less Space that is more collaborative, less individualindividualSpace that provides a range of work Space that provides a range of work style offeringsstyle offeringsSpace that enables higher utilization Space that enables higher utilization and lowers IBM real estate costsand lowers IBM real estate costs
A Little HistoryA Little History……IBM introduced the eIBM introduced the e--place, place, open office planning concept in open office planning concept in 1998. 1998. ee--place On Demand, which place On Demand, which introduces sharing and introduces sharing and collaboration, was rolled out in collaboration, was rolled out in 2004.2004.ee--place On Demand is place On Demand is implemented whenever IBM is implemented whenever IBM is considering new construction, considering new construction, significant renovations, and/or significant renovations, and/or new lease fitnew lease fit--ups.ups.Adopting e-place On Demand enables a
50% reduction in space requirements and significant annual savings
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e-Place On Demand: What is it?
Improve Space Efficiency
Meet Needs of Changing
Work Patterns
Promote Teaming &
Collaboration
BENEFITSBENEFITS
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DSW Seating – Three Primary Seating Types
On Demand SeatingOn Demand SeatingOn Demand seating is the On Demand seating is the concept and terminology that concept and terminology that replaces what we know of replaces what we know of today as mobility and today as mobility and dedicated seating. In an On dedicated seating. In an On Demand environment, Demand environment, workstations are not workstations are not dedicated or assigned to dedicated or assigned to specific employees. Instead, specific employees. Instead, any employee any employee –– seated, seated, mobile, work at home, mobile, work at home, client/alternate, etc. client/alternate, etc. –– can use can use any workstation (based on any workstation (based on employee type employee type –– executive, executive, people manager, people manager, professional) if it is not professional) if it is not occupied. occupied. Space utilization is Space utilization is maximized in an On Demand maximized in an On Demand environment because any environment because any available workstation can be available workstation can be used. used.
The vast majority of employees will signThe vast majority of employees will sign--in to in to On Demand seating.On Demand seating.
NeighborhoodsNeighborhoodsNeighborhoods are groupings of Neighborhoods are groupings of ““On DemandOn Demand”” workstations for workstations for employees who need to sit employees who need to sit together to perform their work. together to perform their work. Neighborhoods have been created Neighborhoods have been created for officefor office--based project teams and based project teams and for employees working in afor employees working in acommon business or functional common business or functional area who work in the office 4 or area who work in the office 4 or more days per week. more days per week. Neighborhoods will be displayed in Neighborhoods will be displayed in FleximoveFleximove and you should only and you should only signsign--in to a neighborhood if you in to a neighborhood if you belong to it, or, on rare occasions belong to it, or, on rare occasions if On Demand seating is fully if On Demand seating is fully utilized and there is excess utilized and there is excess capacity in a neighborhood. capacity in a neighborhood.
Specialty SpaceSpecialty SpaceSpecialty spaces are areas in Specialty spaces are areas in DSW that are designed DSW that are designed specifically for a certain specifically for a certain work group or project team. work group or project team. In many cases, these areas In many cases, these areas are behind badge reader are behind badge reader doors and are only doors and are only accessible to designated accessible to designated employees. employees.
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Important Note: Renderings are for illustrative purposes only. They may not reflect actual
finishes and dimensions.
Shown Above: Executive workstations, Executive Briefing Center, Collaboration seating at end of file cabinet
Shown Above: Corridor, Collaboration seating, Professional workstations
Shown Above: Professional workstations, Collaboration seating at end of file cabinet
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Touchdown SeatingTouchdown Seating
Important Note: Renderings are for illustrative purposes only. They may not reflect actual finishes and dimensions.
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Going Green @ DSW
What is LEED?What is LEED?The Leadership in Energy and Environmental Design (LEED) Green BThe Leadership in Energy and Environmental Design (LEED) Green Building Rating uilding Rating SystemSystem™™ encourages and accelerates global adoption of sustainable greenencourages and accelerates global adoption of sustainable green building and building and development practices through the creation and implementation ofdevelopment practices through the creation and implementation of universally understood universally understood and accepted tools and performance criteria. and accepted tools and performance criteria.
What is LEED certification?What is LEED certification?In the United States and in a number of other countries around tIn the United States and in a number of other countries around the world, LEED certification he world, LEED certification is the recognized standard for measuring building sustainabilityis the recognized standard for measuring building sustainability. Achieving LEED certification . Achieving LEED certification is the best way for you to demonstrate that your building projecis the best way for you to demonstrate that your building project is truly "green." t is truly "green."
The LEED green building rating system The LEED green building rating system ---- developed and administered by the U.S. Green developed and administered by the U.S. Green Building Council, a Washington D.C.Building Council, a Washington D.C.--based, nonprofit coalition of building industry leaders based, nonprofit coalition of building industry leaders ----is designed to promote design and construction practices that inis designed to promote design and construction practices that increase profitability while crease profitability while reducing the negative environmental impacts of buildings and impreducing the negative environmental impacts of buildings and improving occupant health roving occupant health and welland well--being. being.
The LEED rating system offers four certification levels for new The LEED rating system offers four certification levels for new construction construction ---- Certified, Certified, Silver, Gold and Platinum Silver, Gold and Platinum ---- that correspond to the number of credits accrued in five green that correspond to the number of credits accrued in five green design categories: sustainable sites, water efficiency, energy adesign categories: sustainable sites, water efficiency, energy and atmosphere, materials and nd atmosphere, materials and resources and indoor environmental quality. resources and indoor environmental quality.
IBM is seeking LEED Silver Certification for DSW
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The Workforce
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Today, over 115,000 IBM employees around the world will wake up, go to work, but NOT go into the office.
50% of IBM’s workforce operates without dedicated office space; most of those employees will spend at least part of their week working from non-IBM locations.
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To become an employer of choice, organizations must provide employees with the resources to enable them to create, innovate, learn, operate and collaborate wherever and whenever they can be most effective.
They must support new ways of working and They must support new ways of working and embrace the embrace the mobile, connected and collaborative work environment. mobile, connected and collaborative work environment.
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… with the information that I need (data, applications, web access)
… with the voice services I need (wireless, legacy telephony, VoIP)
… with any available connectivity type (dial-up, wireless, high speed and secure VPN)
… with any enterprise approved device (PC, wireless handheld device, etc.)
… with the support that I need (online, voice, global, 24x7)
… with the space that I need (desk, team room, conference room or virtual workroom)
… with the policy and processes that support the enterprise (HR, financial, etc.)
Work is not a place
Mobility enables the workforce to conduct business anywhere, anytime, with any approved solution
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Mobility extends beyond basic telecommuting to provide an innovative and dynamic work environment
MobilityMobilityEmployee performs work at an alternative Employee performs work at an alternative worksite that reduces the commute that the worksite that reduces the commute that the employee would incur in traveling to the employee would incur in traveling to the employeeemployee’’s designated work location s designated work location (office). (office). An alternative worksite may include a An alternative worksite may include a telework center, the employeetelework center, the employee’’s home, or s home, or another designated location. another designated location. The work being done by the employee is The work being done by the employee is not tied to the location of the worksite. not tied to the location of the worksite. Occurs on a ongoing basisOccurs on a ongoing basisOutput driven performance measurementOutput driven performance measurementVirtual TeamsVirtual TeamsElectronic collaboration, plus onElectronic collaboration, plus on--site site collaboration when neededcollaboration when neededKnowledge networks, workKnowledge networks, work--aligned portals aligned portals Flat, matrix or processFlat, matrix or process--based organization based organization cultureculture
TelecommutingTelecommutingEmployee performs work at an alternative Employee performs work at an alternative worksite that reduces the commute that the worksite that reduces the commute that the employee would incur in traveling to the employee would incur in traveling to the employeeemployee’’s designated work location s designated work location (office). (office). An alternative worksite may include a An alternative worksite may include a telework center, the employeetelework center, the employee’’s home, or s home, or another designated location. another designated location. The work being done by the employee is The work being done by the employee is not tied to the location of the worksite.not tied to the location of the worksite.Occurs on a regular, recurring, and ongoing Occurs on a regular, recurring, and ongoing basis at least one day per week basis at least one day per week Input oriented (time based) performance Input oriented (time based) performance measuresmeasuresPhysical workgroupsPhysical workgroupsTeam meetingsTeam meetingsClassroom based or onClassroom based or on--thethe--job learningjob learningCommand style organization cultureCommand style organization culture
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Increased customer satisfactionMore accessibility to service providerFaster responses to inquiresNew, more rapidly developed products and services to meet customer needs/demandsMore face-timeHigher quality products and services
Increased customer satisfactionMore accessibility to service providerFaster responses to inquiresNew, more rapidly developed products and services to meet customer needs/demandsMore face-timeHigher quality products and services
Customer Benefits
Mobility generates significant organizational benefits
Real estate / facilities savingsMore efficient and effective use of real estate investmentFlexible and sustainable work environments that support organizational change and collaboration
Real estate / facilities savingsMore efficient and effective use of real estate investmentFlexible and sustainable work environments that support organizational change and collaboration
Real Estate Savings
More efficient energy usageReduced energy costsReduced traffic congestionIncreased compliance with Green Building Regulations
More efficient energy usageReduced energy costsReduced traffic congestionIncreased compliance with Green Building Regulations
Environmental Benefits
Productivity improvementIndividual cost and time savingsImproved job satisfactionMore accessible and responsive Work longer hours with less impact on personal / family lifeHigher moraleGreater loyalty
Productivity improvementIndividual cost and time savingsImproved job satisfactionMore accessible and responsive Work longer hours with less impact on personal / family lifeHigher moraleGreater loyalty
Employee Benefits
Reduced time to hireReduced cost; reallocation of fundsImproved ‘on-boarding’ (reduced time to enable)Increased employee retentionEnhanced productivityLower absenteeism
Reduced time to hireReduced cost; reallocation of fundsImproved ‘on-boarding’ (reduced time to enable)Increased employee retentionEnhanced productivityLower absenteeism
Organizational Benefits
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Social Networking
Expanding opportunities for employees to start and engage in conversations that are
valuable and impact the business
Mobility provides the tools and culture necessary to connect employees, streamline operations, and increase productivity
On Demand Access
Access to the applications and information needed to perform all work functions
Expertise LocationAbility to share own expertise, as well as find others when needed
Remote AccessFrom anywhere through
any approved device (laptop, wireless handheld
device, etc.)
Some of those capabilities include…
Innovative Workspaces
Team rooms, touchdown desks, hot spots, virtual
meeting spaces
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To realize the benefits of a mobile work environment, organizational and infrastructure challenges must be addressed
How do we maintain security of data and information if employeesHow do we maintain security of data and information if employees can can work from anywhere?work from anywhere?
A comprehensive remote access and electronic document A comprehensive remote access and electronic document management plan must be implementedmanagement plan must be implemented
How do I know my employees are working? How do I know I am not How do I know my employees are working? How do I know I am not getting passed over for opportunities since I am not in the offigetting passed over for opportunities since I am not in the office?ce?
A performance management structure must be developed and A performance management structure must be developed and applied consistently throughout the organizationapplied consistently throughout the organization
Why do certain managers allow teleworking and others do not?Why do certain managers allow teleworking and others do not?Eligibility requirements and program policies must be Eligibility requirements and program policies must be developed, reviewed, approved and communicated to all developed, reviewed, approved and communicated to all employeesemployees
Why do I have to give up my permanent office? IWhy do I have to give up my permanent office? I’’m entitled to dedicated m entitled to dedicated space.space.
A enterprise approach is needed to ensure realization of A enterprise approach is needed to ensure realization of business case business case
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Case Study: IBM’s Leadership in Mobility
IBM introduced mobility in 1995IBM introduced mobility in 1995Began in North America in 1995 as pilot when Began in North America in 1995 as pilot when 10,000 US customer10,000 US customer--facing roles gave up their dedicated facing roles gave up their dedicated workspacesworkspaces; key driver was real estate savings; key driver was real estate savingsThey shared cubicles on a 4:1 employee/desk ratio, saving 7500 wThey shared cubicles on a 4:1 employee/desk ratio, saving 7500 workspacesorkspacesIBM saved over IBM saved over 2 million square feet2 million square feet of real estate space and of real estate space and $75 million in real estate costs $75 million in real estate costs the first full the first full year of the mobility initiative, by closing floors of buildings year of the mobility initiative, by closing floors of buildings and entire buildings when leases became and entire buildings when leases became due in the USdue in the USThe mobility initiative was rolled out to nonThe mobility initiative was rolled out to non--sales employees and to nonsales employees and to non--US employees US employees in the late 1990in the late 1990’’ssuntil 88,000 IBMers became mobile, over a quarter of IBMuntil 88,000 IBMers became mobile, over a quarter of IBM’’s worldwide workforce at the times worldwide workforce at the timeEven greater savings have been realized as the employee/desk ratEven greater savings have been realized as the employee/desk ratio has increased to io has increased to 15:1 or more15:1 or more in in many field locationsmany field locationsToday, IBM has nearly Today, IBM has nearly 400,000 employees globally400,000 employees globally and more than and more than 50% percent of staff50% percent of staff are mobile, and are mobile, and savings are savings are now over $450M per year, every yearnow over $450M per year, every yearMobility is now an option for virtually all employees globally, Mobility is now an option for virtually all employees globally, and is key to our workand is key to our work--lifelife--balance balance commitment, recruiting efforts and talent retentioncommitment, recruiting efforts and talent retention
One of the reasons people come to work for IBM is because we take flexibility seriously. On any given day, worldwide, our people are not at an IBM location…they are mobile. Today we must reconsider our traditional concept of work and how it gets done…
Sam Palmisano, IBM Chairman of the Board and CEO
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IBM increased its competitive edge, employee productivity, and job satisfaction
IBM can IBM can recruitrecruit the best available talent without constraints on the best available talent without constraints on geographygeographyEmployees can accept new assignments Employees can accept new assignments without relocating without relocating IBM assembles IBM assembles teams from around the worldteams from around the world to meet project demandsto meet project demandsEmployees are relieved from long daily Employees are relieved from long daily commutes commutes to an IBM office to an IBM office Implements Consistent automated and streamlined business Implements Consistent automated and streamlined business processesprocessesApplies consistent Applies consistent performance measuresperformance measuresShaping a management culture that supports a mobile environment Shaping a management culture that supports a mobile environment and that can use knowledge sharing and and that can use knowledge sharing and collaborationcollaboration tools extensivelytools extensivelyIBMIBM’’s culture makes mobility possible and mobility shapes IBMs culture makes mobility possible and mobility shapes IBM’’s cultures culture
0
10
20
30
40
50
60
70
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Overal
l Work
Produ
ctivit
y
Morale
Job S
at
Commitm
ent
Overal
l W/L
Impact of Mobility on IBM Employees
PositiveNegative
Source: IBM Global Work and Life Issues Survey
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Social Networking
Expanding opportunities for employees to start and engage in conversations that are
valuable and impact the business
Mobility provides the tools and culture necessary to connect employees, streamline operations and increase productivity
On Demand Access
Access to the applications and information needed to perform all work functions
Expertise LocationAbility to share own expertise, as well as find others when needed
Remote AccessFrom anywhere through
any approved device (laptop, wireless handheld
device, etc.)
Some of those capabilities include…
Innovative Workspaces
Team rooms, touchdown desks, hot spots, virtual
meeting spaces
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Maturity Levels
Organization, People, and Culture
Technology and Applications
Processes and Policies
Real Estate
The Mobility Maturity Model helps organizations evaluate their readiness and vision for mobility across the four areas
¹”Adapted from Gartners Telework Maturity Model Defines the Stages Toward Telework Effectiveness”. Michael A. Bell. January 31, 2006.
Mobility Maturity Model Capabilities
Leading – Strategic business imperative, extends to partners, suppliers, and vendors, facilities used primarily for meetings, fully integrated workplace organization (HR, IT, facilities), virtual work is a “way of life”, 75-100% of target population
Optimizing- Widely adopted, overarching management support, wide use of virtual teams, robust mobile technology and connectivity, robust collaborative applications, policies/procedures in place, on-demand space, robust support services, workplace management processes (training, policies, performance management) 50-75% of target population
Developing– Selective projects prioritized by the Business case, average management support, full remote access enabled, selective use of mobile technology, shared-facilities trial, minimal support services, 10-20% of target population
Practicing – Implemented by several teams and/or divisions, centrally planned and managed, HR policies in place, integrated workplace management processes performance metrics and tools tested on selective basis, 20-50% of target population
Aware – Exhibits few mobility practices, low management awareness and support, limited use, mostly flexible work arrangements, minimal shared facilities, minimal remote access, less than 5% of target population
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Lessons Learned and Best Practices are consistently used
Executive buyExecutive buy--in at the top of the organizationin at the top of the organization•• Four key areas involved in initiatives Four key areas involved in initiatives –– HR, Finance, IT and Real EstateHR, Finance, IT and Real Estate
Metrics to drive program successMetrics to drive program success•• Real estate costs at departmental levelReal estate costs at departmental level
Formal policies and proceduresFormal policies and procedures•• Owned by HROwned by HR
Proactively identified job roles suitable for mobilityProactively identified job roles suitable for mobility•• Started with the obvious, but review role by role for each majorStarted with the obvious, but review role by role for each major
organizationorganization•• Review work processes and IT to determine how to enable mobilityReview work processes and IT to determine how to enable mobility
Change management and education support for managers and staff tChange management and education support for managers and staff to enable o enable mobilitymobility•• Worldwide Mobility PortalWorldwide Mobility Portal•• Manager and Employee TrainingManager and Employee Training•• Mobility Handbook Mobility Handbook
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A comprehensive strategy for implementing a mobile workplace will integrate change in four key areas
Meeting technologiesIntranetConnectivityBandwidthNetworksPCs
Work structuresJob descriptionsPerformance measurementMetricsReward structuresOrganizational cultureManagement behaviourand attitudesIndividual skills and knowledgeTraining needs
Training processesMeeting managementPeople managementTravel management
Architectural designPhysical layoutReal estate infrastructure
Process &Policies
RealEstate
Organization,People& Culture
Four key areas enable a mobilitytransformation
1 2
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Technology &Applications
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Mobility helps organizations become an employer of choice
Mobility is aboutMobility is aboutLeveraging technology and connectivity to Leveraging technology and connectivity to enhance employee productivityenhance employee productivityEmployeeEmployee engagement and workengagement and work--lifelife--balancebalanceAttracting and retaining the best talent in Attracting and retaining the best talent in the marketthe marketOrganizational flexibility and Organizational flexibility and responsivenessresponsivenessA focus on results A focus on results –– not face timenot face timeDedicating more time and resources to the Dedicating more time and resources to the organizationorganization’’s core strategic objectivess core strategic objectivesGrowing the organization without increasing Growing the organization without increasing real estate investmentreal estate investmentEnsuring continuity of operations during Ensuring continuity of operations during emergencies and disastersemergencies and disastersHigh-performing organizations are capitalizing on work environments that
allow employees to be more productive, responsive and effective