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UNWIRED RESEARCH


AGILITY @ Work
adopting the corporate six pack




by Mark Dixon and Philip Ross
AGILITY @ Work     The impact of six forces on the way we work




CONTENTS
EXECUTIVE SUMMARY                                                    3

THE CHANGING NATURE OF WORK                                          5
      NEW WAYS OF WORKING                                            6
      SPACE TO WORK                                                  7
      THIRD SPACE                                                    8
      NEW WAYS OF WORKING CASE STUDIES                               9

6 FORCES RE-SHAPING WORK                                             13
      REAL ESTATE                                                    13
      CULTURE and WORKSTYLE                                          14
      PEOPLE                                                         15
      INFORMATION AND COMMUNICATION TECHNOLOGY (ICT)                 17
      TRANSPORT                                                      21
      SUSTAINABILITY                                                 22
      SIX PACK – FIT FOR BUSINESS?                                   23

CONCLUSIONS                                                          24
     ACTIVITY BASED WORKING (ABW)                                    24
     INNOVATION AT WORK                                              25
     FLEXING SPACE                                                   25

WHERE NEXT?                                                          26

APPENDICES                                                           27
     Our Research                                                    27
     About the Authors                                               27
     Philip Ross                                                     27
     Mark Dixon                                                      27
     About Unwired                                                   28
     About Regus                                                     28




UNWIRED Research                                                 2   © Unwired Ventures Ltd, 2010 All Rights Reserved
AGILITY @ Work     The impact of six forces on the way we work




EXECUTIVE SUMMARY
This report sets out to predict the future of work. It presents          What is clear is that work is rapidly becoming something we
six trends or forces that are reshaping work, and in turn                do, and not a place we go to. Mantras such as work ‘on the
allowing companies to change the way they organise work.                 pause’, or ‘management by results’ show that supervision and
These external forces are: demography, culture, technology,              presenteeism are giving way to trust and empowerment.
sustainability, transport and property. Together they not only           People will in the future be increasingly free to choose their
comprise the key overheads of a business, but also the drivers           work/place.
of change that no company can ignore if it is to get into shape
as the world emerges from recession.                                     This has a big impact on sustainability. Two of the key
                                                                         contributors of carbon emissions are commercial buildings
That shape is a corporate ‘six pack’ - a new way of structuring          and commuting to those buildings. Both can be challenged
work, based on a new set of assumptions and an understanding             by changing patterns and places of work.
of new opportunities. This can be achieved through the
adoption of new approaches to workplace provision such as                But there is still a gap in the provision of places to work ‘on
activity based working and a new view of a polycentric city.             the pause’. This report will look at early examples of ‘third
                                                                         spaces’ and discuss the growth needed to accommodate an
We believe that these six drivers will reshape organisations             increasingly agile workforce. We predict a new network (both
in the ‘tennies’ to be fitter, and leaner – the ‘six pack’ for the       virtual and physical) that in effect becomes the ‘office’. This
corporation that provides a much lower cost base for work.               hub and spoke approach will be crucial, as multiple locations
We have looked at the ‘cost of work’ – a measure of the                  in a city give rise to consolidation, and continued transport
overhead required today to allow a person to be productive.              congestion make movement around a city a continuing issue
For a leading, blue chip organisation this is anywhere                   – immobility in the city will lead to a growth in the demand
between $19,000 and $22,000, at the moment per person per                for multi-centric working.
annum in a capital city. The target for some companies is now
under $7,000, achieved through innovation, mobility and the              Work will no longer be about a building, a dumb container, to
adoption of new workstyles.                                              which people commute and which ‘houses’ the corporation’s
                                                                         infrastructure, data, technology and files. Work is now
New technology will have a dramatic affect on how and                    permeable – the boundaries are blurring and there are better,
where work is done. We present the key drivers and enablers              more efficient places to house technology and data. The
of change, for both small and medium sized businesses as                 future is being redefined.
well as multi-national enterprises. Trends such as accelerating
the adoption of mobility, virtual workplace portals and the              This future will result in corporations leasing less real estate.
migration to ‘cloud computing’ will see a gradual transition to          As they emerge from recession, fit corporations that have
‘empty’ or thin office buildings, devoid of all technology.              adopted ‘six-pack’ thinking will be able to achieve growth in
                                                                         headcount without taking on additional square feet.
This research not only looks at evidence based on case studies
from early adopters of radical workstyles across the globe. It
also discusses issues with leading heads of real estate from
global companies to understand their thinking, concerns and
aspirations for the new world of work.




Time Magazine




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AGILITY @ Work     The impact of six forces on the way we work




Actions for achieving a corporate ‘six pack’:


 1                  Real Estate           Review workplace strategy and introduce activity based working and mobility. Gather
                                          data on utilisation rates and real cost of occupancy as well as churn costs. Create an
                                          aspirational vision for new workstyles.


 2                  Culture               Introduce change management to prepare people for new workstyles. Move from
                                          management by supervision to a results based approach. Identify champions for
                                          innovation and change.


 3                  People                Understand demographics and profile the workforce to identify the needs of different
                                          groups by age, job function and psychometric analysis. Engage with the workforce to
                                          develop opportunities for change.


 4                  Technology            Identify key drivers and enablers of change. Then align technology to the real estate
                                          strategy and introduce the appropriate tools for new workstyles.


 5                  Transport             Realisation that continued stress in transport corridors will require a new approach to
                                          commuting and mobility, and the adoption of polycentric thinking.


 6                  Sustainability        Reduced quantity of commercial real estate leased, together with better management
                                          of property assets, reduced commuting and greener technology will allow targets to
                                          be met.




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AGILITY @ Work       The impact of six forces on the way we work




THE CHANGING NATURE OF WORK
For over one hundred and twenty years our workplace - the                        corporate hierarchy. The office has reflected status and power,
office - has been dominated by fixed technology. From the                        not role and function. But it has also represented stability and
Remington Typewriter and Bell’s telephone in the 1880s                           certainty, and for the company inflexibility and sloth. Change
to IBM’s PC in the 1980s, there has always been heavy                            was difficult, expensive and slow.
equipment on desks that has tethered down the office
worker. The growth of the networked computer has resulted                        But this approach to workplace is increasingly redundant.
in an ‘intelligent office building’, engineered to house, power                  Most people no longer sit behind desks all day carrying out
and cool the servers and switches that create the network,                       repetitive tasks. In fact research shows that the majority of
process and store corporate data. And a complex industry                         desks, typically 55%+, in an average office are empty at any one
has grown up to house this connected real estate, from raised                    point in time. More and more work is collaborative, and people
access flooring to cable managed systems furniture.                              spend more time working with others. Having a telephone
                                                                                 extension number that represents a piece of furniture or a
But you can look back into the mid-1800s at a pre-IT era when                    room is archaic in an age of fast communications.
the workplace had no technology at all. Clerks with pens at
simple desks or benches were the predominant model. And                          And while desks are usually empty, research shows2 that you
we believe that we are heading ‘back’ to an under-engineered,                    can never find a meeting room. Space for teams, projects,
technologically sparse workplace environment, at least in the                    M&As, pitches or war rooms are needed but not available.
eyes of the user or occupant. As the Financial Times stated:                     The types of spaces that people will demand for the types of
“Fifty years ago computers were absent from office life… In                      work undertaken in buildings are changing.
50 years time things will be much the same. There will be no
machines on our desktops.”1                                                      When people do find a room for a team session, the barriers
                                                                                 to collaboration and connectivity are extreme. Complexity
As well as heavy, personal desktop technology, paper and                         to get people onto a network, sharing resources such as a
personal files have tied the worker to his or her desk. People                   printer or projector are substantial in most workplaces today.
store many linear meters of paper and filing each, at or near                    And for non-employees with so-called ‘alien devices’ it can be
their desk. In many workplaces, between 15 and 17 % of floor                     difficult or impossible to connect and use peripherals such as
space is given over to storage, and the paperless office has                     printers.
yet to materialise. Yes much is about to change and challenge
not the use of paper but the need to file and store it. ‘Digital                 Now, with the introduction of mobile, portable technology
flow’, new display technology, tablets and ebooks will all                       and the ability to communicate across distance at little or
reduce the ‘half life’ of paper.                                                 no cost, many of the fundamental rules of office life will be
                                                                                 challenged. There is something significant happening to the
Allocating one person to one desk or office has been the                         nature of work, and the places created to house it in the 21st
predominant approach to organising work, clustering                              Century.
people by department in a building that represents the static


                                                                                        “Fifty years ago computers were
                                                                                         absent from office life… In 50 years
                                                                                         time things will be much the same.
                                                                                         There will be no machines on our
                                                                                         desktops.”
                                                                                          Financial Times 1




1 Financial Times, The Office is future-proof, Special Report on the Future of Work, Monday September 27 2004
2 UNWIRED research report 2008

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AGILITY @ Work     The impact of six forces on the way we work




With the rise of mobility, work has become more fragmented             example, that 5 people share say 4 desks. Sharing ratios are
and staccato – people dip in and out of work, and increasingly         often the limit of current thinking, and represent a first step on
‘work on the pause’. The office has become one of a number of          the journey to a new workstyle.
locations in which work can take place. But the other spaces
in which people try to work are often challenging. A coffee            The terms ‘Hot Desking’, alternative officing and ‘Hoteling’ were
shop, where there may be WiFi connectivity but no power or             born, alongside the corporate initiatives such as SMART, Free
ability to print. A transport hub where there is no place to get       Address, iWork, my work and so on. They describe the early
away from noise, or an hotel where there are no private work           examples of introducing new workstyles. But all too often
spaces.                                                                they were attempts to shave cost and share desks. There was
                                                                       little gain for the individual and the spaces created were often
We predict the rise of new destinations and locations for work;        poor and unappealing. Now a new approach is evolving.
places in between the home and corporate centre.
                                                                       Many of the current examples of new workstyles owe their
NEW WAYS OF WORKING                                                    origins to a few pioneers. Apart from the obvious candidates
                                                                       in accountancy, companies such as SOL (a cleaning company),
                                                                       Chiat Day (an advertising business), Digital Equipment
Mindful of these trends, and with a desire to cut costs,               Corporation (a computer company) and British Airways (the
companies have started to experiment with flexible working             airline) began to make radical advances in the way they used
and introduced the idea of hot desking or desk sharing, with           work space.
moderate ambition of occupancy efficiency to the extent, for




“Whereas the new mode of                        “Mobile people need
 working was once an exception,                  somewhere to touch
 now the office will be seen as a                down.”
 last resort.”                                   Chris Hood, Hewlett Packard
 Mark Tamburro, Nokia




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AGILITY @ Work     The impact of six forces on the way we work




SPACE TO WORK
In the book, Space to Work (co-authored by Philip Ross                 first commercial buildings in the world, where people clustered
and Jeremy Myerson) four key trends were identified for                by profession, skill or trade. Now we see a re-emergence of
the knowledge company, based on research with over                     the Guild, as employment by the corporate entity is joined
200 businesses worldwide. These are represented by the                 by freelance and independent careers – the portfolio workers
diagram and show the tensions at work, between permeable               that now form a major part of many organisations.
and contained work, and between high and low corporate
visibility.                                                            The BBC is perhaps the first to experience the re-emergence
                                                                       of the Guild as workplace. Its workforce is a mix of employees
The corporate office becomes an Academy – a place for                  and independents – production companies and freelancers
people that provides choice and empowerment, enabled by                that work on programmes and use BBC workspaces. As Chris
technology and an accepting leadership culture. This balances          Kane (BBC) explains, “people want to work with us. Freelancers
with the Agora – the increasing ability to be effective ‘in the        are a big proportion of our population.”
field’, in front of customers or working from new, third spaces.
It means that people have to come back to the corporate                In the diagram below, people find their own balance or
office on a less frequent basis and so challenges the need to          equilibrium, based on their profile. But what is clear is that
give them a desk.                                                      the ‘academy’ corporate centre will contract, while work in the
                                                                       agora and lodge will increase. As Chris Hood from Hewlett
The other trends are about new space. Working near the                 Packard states, “Mobile people need somewhere to touch
home, in the community, was called Lodge to evoke the period           down.” And so new destinations are needed.
in history when piece work from home, or community based
working, commerce and trade were the norm.

A regrouping by people from the same profession was also
recognised – the 21st Century Guild. Guild buildings were the




                                                                       As Chris Kane (BBC) explains,     “I never work at home;
                                                                       “People want to work               I only work remotely.”
                                                                        with us. Freelancers are           John Killey, Citigroup
                                                                        a big proportion of our
                                                                        population.”



Space to Work


                         Four key trends in the Knowledge
                         Economy




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AGILITY @ Work        The impact of six forces on the way we work




THIRD SPACE
Space ‘in between’ the corporate office and home environment               Another innovator in third space is The British Library next
has been referred to as third space. And a range of innovative             to London’s new Eurostar terminal at St Pancras. The Library
ideas have emerged, from clubs and hubs to serviced offices                initially provided WiFi connectivity for the 4000 people that
and public buildings.                                                      came in each day, but demand for space to work was so great
                                                                           that a free wireless workzone was created in front of the King’s
                                                                           library. The space provides good ergonomic furniture, with
  PRIVATE                   PRIVILEGED               PUBLIC                free power (delivered to the arm of sofas) and task lighting.
  SoHo House                The Hub                  Starbucks             It has proven to be so popular that now 5000 people use the
  The Hospital              Regus                    British Library       building each day, with 1000 people a day just using the space
                                                                           for work and meetings before heading on, for example, to St
                                                                           Pancras or Kings Cross stations.
Using Frank Duffy’s3 well known workplace descriptors, the
idea of third space can equally be categorised as public,                  At Regus’ Berkeley Square centre, a club workspace has been
private and privileged. From the free space available in public            created to allow people a drop in destination that is flexible,
buildings that is being created for mobile workers, to the                 shared and informal. Private work pods are interspersed with
private members club where you have to be nominated and                    soft seating and meeting spaces that people use as if they were
recommended to join, a host of options for third space exist               in an airline lounge. More formal space can be booked, but for
and more are set to emerge.                                                many of Regus’ Platinum and Gold card holders, the lounge is
                                                                           exactly what is needed for ‘work on the pause’. A professional
One of the most interesting third spaces is The Hospital, a club           space to drop into, connect and work.
for media executives that was set up and funded by Paul Allen
(a founder of Microsoft). Members pay an annual subscription,              But the range of current options available to agile workers
and have use of a building in London’s Covent Garden where                 is limited and often not fit for purpose. A café that does not
they cannot only work, meet and eat, but also screen a film,               provide power, a public space that has no acoustic privacy or
use a recording studio or make a television programme in a                 a private club that offers poor wifi connectivity and no facility
full, state-of-the-art studio.                                             to print. Third space needs to become as sophisticated as a
                                                                           modern workplace, with a range of facilities that provides
A space that can be shared, that allows high cost capital                  effective destinations to work ‘on the pause’.
intensive spaces to be utilised well and that gives people
access to resources that they otherwise could not justify,
provides a new model.




                                             The Hospital
British Library                                                                            Regus, Berkley Square


“Our wireless workzone has                     “We are deploying home
 increased visitors to the                      based working for all global
 British Library significantly”                 locations... and we are looking
  John de Lucy, British Library                 very carefully at in between
                                                places”
                                                Daniel Johnson, Accenture


3 Frank Duffy, DEGW


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AGILITY @ Work     The impact of six forces on the way we work




NEW WAYS OF WORKING CASE STUDIES
What is clear is that many organisations have now adopted what         There are hundreds of examples of new ways of working
can be broadly defined as ‘new ways of working’. That is they          programmes. Some are more adventurous than others, but all
have broken the ‘one-desk-one-person’ model and introduced             challenge the premise of the traditional office. The trends can
something different. Solutions, definitions and concepts vary          be seen in every part of the globe, in companies big and small
from one business to another, but the trend is clear. People are       and in every industry and sector, public and private.
becoming mobile, enabled by new technology and given the
trust and empowerment needed to work in a different way.

As they experience, and are equipped for mobility, inside their
workplace, they will also be able to work from a range of new
destinations and use their experience to work in a different
way.




Nokia, Beijing, China

Situated on one of the ring roads in Beijing, the new Nokia campus has created a state-of-the-art building that provides a
unique campus for R&D in China, attracting the best talent in a competitive market. With the congestion problems in Beijing,
mobile workers such as sales people and engineers spend much of the time on the road and when they are in the office share
workspace, using the mobile units below.


  Business                    Transport       Centralised ‘academy’ with       Central location on an outer ring road in one
  Benefit                                     enabled mobile workforce         of the world’s most ‘immobile’ cities. Flexible
                                                                               working enabled for the mobile workforce.




                                                                 “In China we have given our
                                                                  sales force Regus gold cards as
                                                                  part of a pilot study providing
                                                                  unlimited walk-in access to
                                                                  Regus Beijing network.”
                                                                 Colin King, Nokia



Nokia, Beijing




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AGILITY @ Work        The impact of six forces on the way we work




Interpolis, Tilburg, The Netherlands

Insurance company Interpolis has broken the mould and created a very different office based on teams and tasks, enabled by
mobile technology. Over 3000 people based in their purpose-designed building work in activity based worksettings that range
from weavers huts to stone houses – all designed by some of the top Dutch artists. The workplace has made a substantial
impact on the recruitment and retention of staff. And in the process they saved €90m on capex and over €8m per annum on
opex as churn costs have been reduced to zero.


  Business                       Real Estate      Capex and Opex reduction         Reduction of real estate leased by 30% has been
  Benefit                                                                          achieved in new ways of working programmes.
                                                                                   Churn costs have been reduced to near zero.



Macquarie Group, Sydney, Australia

Macquarie Group’s new building on Shelley Street in Sydney has adopted activity based working, with over 2500 people sharing
a range of spaces that they choose based on a particular activity. The spaces are rich and varied, with a dynamic central street
as well as a plaza area on each floor. Everyone carries a laptop and uses wireless technology to connect, so people can work
from anywhere. Macquarie has reduced paper by 73% and one of the surprising findings from post-occupancy is that use of lifts
(elevators) has reduced by 50% as people choose to walk up the central stairs between floors.



  Business                       Sustainability      Paper and storage                 Macquarie has reduced paper used by 73%,
  Benefit                                            reduction                         with a 78% reduction in storage space required
                                                                                       (from 5km to 1km of files) and a reduction in
                                                                                       printing of 52% due to Follow Me Printing –
                                                                                       equivalent to 42 tonnes of paper p.a.




Interpolis, Tilburg                                                      Maquarie Group, Sydney




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AGILITY @ Work       The impact of six forces on the way we work




Vodafone, Auckland, New Zealand

A desire to attract and retain young, talented people was one of the key drivers of this innovative workplace that presents an
informal, colleigate atmosphere. 1300 people have no desk, and all are equipped with the latest mobile technology. People
choose to work either at a shared workstation, or in one of the more social, café style environments.


 Business                       People              Attracting and retaining   A more vibrant work environment has been
 Benefit                                            talent                     shown to be a positive factor in attracting
                                                                               talent.




Googleplex, Mountain View, USA

With over 16,000 people on their Mountain View campus, Googleplex is a remarkable mini city of people and places. As you
would expect in California, the campus has a rich variety of outdoor spaces from restaurants to basketball courts. As well as
fairly traditional workstations, much of the internal space is given over to common, shared spaces from cafes for grazing to
lounges, seminar rooms and social space. Google make much of their 20% time philosophy, and Googlers have plenty of
opportunity to find ‘20% space’ to be inspired.


 Business                       Culture             Innovation                 The focus on 20% time has resulted in many of
 Benefit                                                                       Google’s innovations – Gmail, Google maps and
                                                                               so on. People have the ability to use shared
                                                                               space for innovation and inspiration




                                                                                           Google, Mountain View


Vodaphone, Aukland




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AGILITY @ Work     The impact of six forces on the way we work




Microsoft, Amsterdam, The Netherlands

Microsoft’s new campus at Amsterdam’s Schipol airport changes the rules. Nobody has a desk, and the workstyle is activity
based working. A range of spaces have been created, from small private cocoons for concentrated work and for on screen
working and review by one or two people, to open team tables and private, individual carrels. Everyone uses a laptop, and the
space has no fixed phones at all, with Vodafone and Microsoft’s Enterprise Voice solution providing converged telephony and
messaging that is delivered to a person, not a desk. The workplace is almost paperless, with people printing on average only
one page each per day.



  Business                    Technology          Death of the desk phone   A move away from fixed telephony to true
  Benefit                                                                   ‘fixed-mobile’ convergence, with one software
                                                                            interface providing unified comminications –
                                                                            connecting people and not desks




Microsoft, Amsterdam




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AGILITY @ Work     The impact of six forces on the way we work




6 FORCES RE-SHAPING WORK
With the early indicators above that work and the workplace is changing, we now predict an acceleration of these trends based
on six key forces:


Real estate • Culture and workstyle • People • Information and communication technology • Transport • Sustainability




            REAL ESTATE
            Real estate overhead and cost reduction has                 To get a picture for the future, a leading global technology
            become one of the key drivers of work style                 company with over 100,000 people has introduced new
            innovation. As well as reducing the amount of               ways of working and mobility and in doing so has reduced
real estate needed, companies are also driving out opex and             occupancy costs to $4,000, per head per annum (rent, rates,
downtime by focusing on operational efficiency.                         utilities, services etc) – less than half the previous costs per
                                                                        capita.
Real estate costs today represent for most organisations the
second biggest overhead after salaries, and this is now under           Even the public sector and government estate is undergoing
scrutiny as companies state that they will grow in headcount            change. In the UK, the Office for Government Commerce
without taking on more square feet.                                     (OGC) states that central government occupies over 100
                                                                        million square feet of space. The average cost of providing
In capital cities such as central London, the cost of a desk            office space in London is £7700 per person per annum, and
per person per annum is somewhere between $19,000 and                   across the UK it averages at £4178 per person per year. And
$22,000. This figure includes rent, rates and services charges          this amount is falling year on year.
but often excludes technology.
                                                                        And so cost reduction can now be achieved through new ways
To provide a measure of the scale of overhead that offices              of working that require less space. But operational costs can
contributes as a % of turnover is important. For example,               also be removed, notably churn costs – the moves and changes
Philips, the electronics giant, has 118,000 people worldwide            which for some companies are at 80%+ - that is 8 out of every
based in 877 buildings on 730 sites in 69 countries. This totals        10 people are moved around the building each year. The cost
6million square metres and costs the business annually €636m            of churn can vary, but anything from £400 to £1000 per person
(for real estate and facilities). Interestingly this represents 2.4%    per move has been stated. One investment bank found that
of turnover.                                                            they spent $8m in churn in London in one year alone.

But companies are now pushing back against these costs.                 So corporate spaces we believe will be smaller, based on
Nortel, the telecommunications company, has 9000 people                 an Academy model, with flexible, churn free space, and
in 186 locations worldwide. They have taken occupancy costs             companies will begin to rely on other destinations for work to
from $12,000 to under $3,000, per person per annum. 126 sites           complement these smaller centres. “The optimal real estate
have been closed and $129m taken out of the portfolio over a            solution may now involve only one (corporate) site in any
period of only 3 quarters. Now over 2500 people carry Regus             major city but this may be inconvenient for some customers
Businessworld cards, so they can make use of a network of               and employees who are on the wrong side of the city”, Chris
workspaces, and in turn Nortel is moving towards managing               Hood, HP. And so to minimise travel and down time, we see a
only five corporate hubs.                                               demand for a polycentric approach.


“We need spaces on the fringes of the CBDs                              “The high value-add is the ability to assemble
 (central business districts) if we are going to                         team space at the drop of a hat. We win a
 help people work in a dispersed manor; they                             contract, a twenty person team needs to be
 need to pop up whenever.”                                               assembled and we need to hire a project room
 Head of Workplace, Global Technology Company                            for six months.”
                                                                         Chris Hood, HP




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AGILITY @ Work     The impact of six forces on the way we work




          CULTURE and WORKSTYLE
                                                                      But these are just artefacts of yesterday’s order. People can still
            One of the most dramatic changes that is underway         feel belonging – just not to one small desk. Done correctly,
            is an acceptance of management by results rather          people feel ownership of a community space – rather like a
            than supervision. The outdated notion of being            private members club.
paid for the number of hours spent in the office is no longer
valid in an age of distributed working. But for many middle           What is clear is that status has been correlated to space for
managers, letting go of ‘watching the back of peoples heads’ is       over a century and for many, a career climbing the corporate
a difficult transition. For people at all levels, distributed work    ladder has been manifested by the journey to the corner office.
has its issues.                                                       The SVP label has a physical incarnation in today’s world of
                                                                      corporate hierarchy.
And while management report challenges in managing
without ‘presenteeism’, in the current climate, people have also      But in a matrix, team orientated organisation these tokens
reacted with a need to be present, for job security and being         become vestiges of yesterday’s approach. People find new
recognised and remembered. This is partly due to ineffective          ways to demonstrate position. The office no longer represents
solutions to ‘virtual presence’ - the technology that can fill the    the hierarchy.
void left when people no longer sit together by department in
fixed places. A ‘circle of trust’ is an approach used successfully    One of the positive outcomes from flexible working is work-
to allow a different paradigm. A company trusts its people to         life balance. An overworked term that for many has little
represent its values to clients, and so the same trust needs to       resonance given that mobile email has extended working
be vested in people and the choices they make over where              hours and blurred the boundaries between work and ‘private
and when they work.                                                   life’. But people spend on average 54 minutes a day commuting
                                                                      to their workplace. In major cities this can easily double. And
This gets more interesting as more and more work is distributed       in many developing economies, cities are becoming immobile
on a global scale. For example, over half of London’s top law         – it can take hours to move around Beijing or Dehli.
firms now outsource typing to South Africa – a country within
the same time zone, English speaking with qualified people at         We have witnessed a dramatic growth of flexible working. For
a fraction of the cost of London.                                     example, 14% of British Telecom’s workforce are now home
                                                                      based. People have the tools to work anywhere. Now culture
Adapting to a new workstyle is also a challenge for many              and management style is catching up to create new ways of
people. Years of sitting behind the same desk, day in day             managing without physical presence.
out, create a pattern of behaviour. The overflowing ‘to do’
pile, the ‘to read’ pile, post-it notes with phone messages and
reminders, pictures of the kids and trophies and collected
mementoes represent our nesting instinct.



“Much of our work continues to happen                                 “It’s not about having a physical place – its
 at client sites, and we certainly consider                            what you contribute to a company.”
 “travel” a work location - we have as                                 Mark Tamburro, Nokia
 many people in hotels each night as we do
 in our consulting offices each day!”
 Daniel Johnson, Accenture




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AGILITY @ Work       The impact of six forces on the way we work




                PEOPLE
             For the first time ever, there are now four                Baby-boomers
             generations at work. This creates a unique
challenge, as each has its own characteristics, aspirations and         This group is so large; it is divided into early boomers, born
preferred workstyles.                                                   from 1946 to 1954, and late boomers, with dates from 1955
                                                                        to 1965. Both share a strong emphasis on individuality,
The newest entrants to the workplace, the Millennial                    youth, and adventure. They are confident in their prosperity
Generation (also called Generation Y), promise to exert                 because they were raised amidst economic growth. Boomers
even more influence than their Baby Boomer parents. This                have humanised the workplace, making it comfortable and
group, born between 1980 and 2000, is more numerous                     encouraging innovation at all levels. They are exploring
than the boomers. It is also a generation celebrated for its            retirement in interesting ways – they are expecting an
confidence, its dedication to equality in the workplace, and            extended active and vital work life by working part time,
its global perspective. But most important, the Millennial              telecommuting or consulting.
Generation takes information delivered by digital technology
for granted. For them it is intuitive, invisible and essential and      Generation X
the infrastructure that delivers it, ubiquitous. They are used
to living on line and being synchronous does not present a              These born between 1966 and 1977 are typically identified as
problem. They have a disregard for privacy, adapting to the             slackers, winners and cynics. There is tension between them
transparency of social networks and openness of location                and the boomers. If these children of divorce and day-care
aware services. As a social impact, for probably the first time         had a slogan, it might be a sarcastic, “thank you for the world
in history, these young people are considered authorities on            you’re leaving me.” But Gen X is also very entrepreneurial. They
something that the older generations haven’t mastered in the            were raised in times of idealism and equality, so they lack the
same way.                                                               social and cultural limitations of their predecessors.

What are the characteristics of the other three                         Getting ready for the digital natives – the ‘net’ gen
generations?
                                                                        What is clear is that the next generation (still at school) will
Traditional generation                                                  be even more radical in their attitudes and approach. The ‘net
                                                                        gen’ or digital natives have grown up with the internet and
Born between 1928 and 1945, these are the oldest members of             use technology in a very different way to other generations.
the workforce. They tend to exemplify faith in the Institutions,        They are learning with the internet, use SMART interactive
loyalty, willingness to conform, and the importance of hard             white boards in their class rooms and carry with them more
work. They respect their employing organisations and expect             computing power than their predecessors had in their
‘paternalism’. Many of this generation are retired. But a growing       workplace. They will be the generation that moves the goal
percentage is staying in the workforce, offering outstanding            posts – the first to be able to live on line, to read on screen and
knowledge and experience.                                               to be happy with less privacy on ubiquitous connectivity that
                                                                        still leaves the digital immigrants out in the cold.




The ‘net’ gen classrom




UNWIRED Research                                                   15                           © Unwired Ventures Ltd, 2010 All Rights Reserved
AGILITY @ Work     The impact of six forces on the way we work




Characteristics of the generations



                        Born             Age           Issue                              Solution

 Traditionals           1928             63+           Will not retire but will work      Bespoke areas for shared space with
                        to 1945                        part-time.                         treatment such as higher lux/lighting
                                                                                          levels, areas to relax/have a nap,
                                                                                          different furniture.

 Baby Boomers           1946             43 - 62       Mixed comfort with                 May still need allocated space as they
                        to 1965                        technology, mostly digital         have climbed the ladder and are often
                                                       immigrants, now leading the        resistant to change.
                                                       enterprise.


 Generation X           1966             31 - 42       Too late to be natives but         Open to change and used to working
                        to 1977                        savvy with technology. Prime       flexibly. Best group to introduce new
                                                       contenders for flexible working.   workstyles.

 Millennial             1980             11 - 30       Experienced PCs in the home        Open to and indeed expect radical
 Generation or          to 2000                        and at college. Some learning      workplace solutions. Very suited to
 Generation Y                                          with technology. First digitally   activity based working and advanced
                                                       literate group to arrive in the    technology.
                                                       workplace.

 Net Gen                Since 2000       Under 10      Will be net savvy – born with      Will not need paper and probably
                                                       the internet – true digital        be the first group to embrace virtual
                                                       natives.                           workplaces.




UNWIRED Research                                                  16                       © Unwired Ventures Ltd, 2010 All Rights Reserved
AGILITY @ Work          The impact of six forces on the way we work




                  INFORMATION AND COMMUNICATION TECHNOLOGY (ICT)
            New digital technology is emerging that will                   one where people do not have to commute in to a ‘dumb
            change the nature of how, why and where work                   container for work’. The digital office is being defined.
            is done. The rise of a new breed of technology is
challenging not just the world we live in, but is beginning to             The digital world assumes that you can connect from anywhere.
redefine the very construct of the organisation. Becoming                  Today from a laptop and ‘smart’ phone; tomorrow from
digital will change that equilibrium, resulting in a new                   any device through a browser. The combination of wireless
relationship between ‘man and machine’, between the city                   network connectivity, high performance mobile devices,
and suburb, and between employer and employee.                             high speed networks and new, software-led connectivity and
                                                                           ‘unified’ messaging tools have in effect sounded the death
Being analogue wasn’t much fun. For the past 120 years office              knell of the ‘desk phone’ and the desktop personal computer.
workers have been tied to desks, tethered by the heavy, cabled
technology that enabled their usually repetitive work to take              The biggest technological barrier had been paper, but even
place. Taylor’s time and motion was the predominant view of                here its half life is diminishing and while people will still always
efficiency, and ever since Alexander Graham Bell invented the              use paper, it need not be stored and certainly not kept at the
telephone in the 1870s, people have been tied to furniture                 desk. But paper is also threatened as we become digital. The
for work and communication. The desk and private office                    previous IT revolution was basically to take paper and turn it
became synonymous with status, territory and belonging in                  digital. And this meant that what you viewed on screen could
the organisation.                                                          then be re-output to paper. No longer. What is displayed is
                                                                           now a mix of media, with flat, two dimensional text juxtaposed
But slowly things have started to change. In the 1990s, email,             with video and Uniform Resource Locators – the url links
the laptop and the cell phone became the tools for a new                   that help us navigate the internet as well as hover or hidden
mobile elite. This was followed by the growth of the internet,             information. What you print no longer represents what is on
with its redefinition of telephony, networks and collaboration.            the screen.
Then we witnessed wireless networks, mobility and ubiquity.
Now we have digital flow, data centres and the cloud. Digital              Now digital technology will take that data, and soon
technology is re-writing the rules.                                        applications, out of the office altogether. The rise of the
                                                                           corporate data centre will now be superseded by cloud
So far these rules have applied to the edges of corporate life.            computing, as applications, processing and data are managed
Better ways to communicate, mobile email and the Blackberry                via the internet in anonymous grid or utility computing farms
revolution, multimedia and multifunctional devices. Faster                 managed by the likes of Google, Microsoft, Amazon and HP.
connections and speed of communication have changed how                    The efficiency of these spaces with their ‘blades’ and shared
we work to some extent. But now, the opportunity exists to                 resources through ‘virtualisation’techniques, will challenge any
look at ‘digital’ as the enabler for a different way of working;           corporate solution on cost, efficiency and green credentials.




                                      “As technology has improved, so
                                       has people’s understanding that
                                       they don’t need to be in a fixed
                                       place to perform.”
                                        Mark Tamburro, Nokia




Picture Credit: Intel




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AGILITY @ Work     The impact of six forces on the way we work




And so the digital revolution will take almost everything out         What you view on screen
of the corporate office. We will in effect occupy from a digital
perspective an empty building in the future, devoid of the
                                                                      is now a mix of media,
computing power that keeps the corporate pulse. And with              with flat, two dimensional
the migration to the cloud will come the realisation that work,       text juxtaposed with
increasingly will be done from anywhere, at anytime. The              video and hover or hidden
necessity to co-locate in a down town office building, sitting        information. What you print
adjacent to departmental colleagues to carry out a task will be
seen as yesterday’s approach to work in the analogue era.
                                                                      no longer represents what is
                                                                      on the screen.
So with mobility and new devices, digital flow and the cloud,
what is left for the office? The rise of digital does not mean the
decline of bricks and mortar. People will still need to work, and
will need a place for work that is not the home. Collaboration
will require people to co-habit. And there will always be the
need to create a branded environment that represents the
corporation and acts as an extension to the corporate brand.

The digital revolution will not slow down. New devices, city
wide WiMax networks and a host of other innovations will
continue to allow innovation and change. The next step
change will see location aware systems and services that will
combine with knowledge management software and real
time buildings to actually bring people together when they
are in the same space and have something to talk about.
Engineering the chance encounters in tomorrows digital
organisation will not only remove downtime but become the
catalyst for an acceleration of the speed of corporate activity
and human interaction.




                             Picture Credit: Plantronics




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AGILITY @ Work      The impact of six forces on the way we work




The rise of video and the death of distance
Video conferencing is about to come of age. A technology               There will be an increasing demand for video conferencing
that has been around for many years is reaching critical mass,         ‘on the pause’, especially in shared spaces such as work hubs
thanks to the spread of broadband and miniature webcams                and third spaces. With the capital investment and operational
embedded into devices. The credit crunch-led travel bans has           costs remaining high, these rooms need high utilisation to be
also had a remarkable impact on the acceptance of high quality         cost effective, and so more and more companies will accept
video conferencing as a replacement to physical meetings,              them as a shared resource.
and the market is expanding, realising the notion of the ‘death
of distance’. When people can effectively meet and ‘eyeball’           For many organisations with specialist spaces, from recording
each other rather than jumping on airplanes, distributed work          and television studios, to immersive spaces and collaboration
really works.                                                          rooms, sharing capital intensive spaces provide an attractive
                                                                       solution. “Moving away from specialised space, so that it was
At the desk, there will be a dramatic expansion in the use             provided (by a third party) would be attractive. It needs to be
of high definition (HD) video for ad hoc conversations and             multi-purpose, multi-functional,” suggests Chris Kane at BBC
collaboration sessions. HD video will become required as a             Workplace.
core communications tool, and with this growth will be a
new realisation of the importance of workspace design as
the backdrop becomes important as well as acoustics and
technology.




                                          “Between 10 an 15 hours of                     “Moving away from specialised
                                           telepresence in an average                     space, so that it was provided
                                           week – if we are an example of                 (by a third party) would be
                                           what is coming that is what its                attractive. It needs to be multi-
                                           about.”                                        purpose, multi-functional.”
                                           Head of Workplace, Global                       Chris Kane, BBC Workplace
                                           Technology Company

Polycom’s roundtable video
conferencing unit in Microsoft’s
office of the future




UNWIRED Research                                                  19                         © Unwired Ventures Ltd, 2010 All Rights Reserved
AGILITY @ Work     The impact of six forces on the way we work




Some Key Technologies and their potential impact


                                        Description                         Impact on work and the workplace

 IP Telephony and Softphones            Using data networks and the         Cost savings and changing economics of location.
                                        internet to carry voice             The ‘death of distance’. Enabler of new work
                                                                            styles.


 Fixed-Mobile Convergence               Mobile phones as ubiquitous         New ways of communication. Consumers able to
                                        devices – always on with internet   price compare with always on internet.
                                        access and IP Telephony

 Telepresence and Halo                  High quality video conferencing     Death of distance, allowing reduced travel
                                        and new ‘av’ technologies for       and increased collaboration. New types of
 Smart surfaces                         collaboration.                      collaborative project space in buildings.


 Mobile Internet Devices                New format devices                  Always on portable internet tablets offering
 (MIDs), slates and tablets                                                 synchronous access to social networks,
                                                                            messaging and applications.


 Ultrawide Band and RFID                Active location tags                Used for sustainability in offices, to track people
                                                                            and measure real time occupancy.


 WiFi                                   Wireless Ethernet                   Meru networks provide new single cell coverage
                                                                            in buildings with RF barriers on the facade.


 Near Field Communication               Secure Payment System for Mobile    Ability for operators to begin to offer micro
                                        Phones                              payment systems. Emergence of the keyless
                                                                            building.


 WiMAX                                  Metropolitan wireless internet      Changing nature of the high street and urban
                                        coverage                            plan.




UNWIRED Research                                                 20                      © Unwired Ventures Ltd, 2010 All Rights Reserved
AGILITY @ Work         The impact of six forces on the way we work




             TRANSPORT
          Commuting is one of the most challenging social                                     These numbers and forecasts point to a transport infrastructure
          behaviours associated with work. Affecting work-                                    at breaking point, at capacity, with only expensive options
          life balance, productivity (downtime) and urban                                     available to it for expansion and growth. And this situation
          planning and infrastructure, it consumes an average                                 is repeated in most other developed urban areas around the
of 80 minutes a day worldwide according to figures from the                                   world.
Universities of Sheffield and Michigan.
                                                                                              Our motorways (freeways) are not much better. Road
In Thailand, the country with the longest commuting times in                                  delays from traffic jams or accidents have a huge and often
the world, a total of 37 million hours is spent travelling to work                            unquantified economic impact. For example, it has been shown
everyday. And in Bangkok, the average travel speed during                                     that a 13 minute holdup on the M25 motorway (freeway) in
the peak rush hour is now just 7 miles per hour.                                              the UK following an accident equates to 18 driver days lost.

But current transport planning in most major cities still                                     But what if distributed working changed patterns of
correlates transport growth to economic growth. Massive                                       commuting and so use of transport infrastructure? Can
investment plans at best aim to keep corridors at their                                       commuting patterns be changed? Could the 1/3 of inhabitants
current stress levels. For example, in the current London                                     of ‘outer London’ that commute into the centre each day
plan, population is forecast to increase to 9.1m by 2031, with                                instead, work locally in their community – at least for a part of
employment increasing from 4.7m to 5.3m jobs. A predicted                                     the working day?
475,000 new jobs in business and financial services will be
created.

According to Michele Dix, Managing Director of Transport for
London, an expansion of transport capacity by 20-30% into
central London is required. For example, Crossrail will move
1.5m more people. But even with all the proposed investment,
she predicts, “most corridors are stressed and will continue to
be.”

Taking a capital city such as London, 24 million trips are made
every day, 3 million people use the tube each day, there are 11
million car and motorcycle trips a day and 9.5 million people
walk or cycle. A staggering 2 billion bus journeys are made
each year.




AVERAGE GLOBAL COMMUTE TIMES (ONE WAY)




Source: SASI Group (University of Sheffield) and Mark Newman (University of Michigan).




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AGILITY @ Work     The impact of six forces on the way we work




              SUSTAINABILITY
              While not all companies are taking climate change         equipment and even communication networks. According to
              seriously, financial necessity is increasingly driving    McKinsey research, in the US alone using such tools could cut
              action in today’s corporations, backed by changes         the commercial-building sector’s energy bill, and associated
in government legislation. Companies and organisations are              emissions, by nearly 30% a year. Globally, smart buildings
increasingly being obliged to measure and publicly disclose             could cut emissions by 1.68 metric gigatonnes a year.
and report their energy use and related emissions. In time,
there will be penalties for not doing so. The UK government             There is a raft of government legislation being put in place to
is already taking action. Under the latest Climate Change Act,          encourage efficiency in real estate. One of the most important
the UK has targets to cut emissions by 34% and to increase the          of these in the UK is the Carbon Reduction Commitment, due
amount of renewable electricity on the grid to 15%, both by             to come into effect in April 2010. It will initially target around
2020 – a tall order when one considers that renewable energy            5,000 UK businesses which each consume over 6,000MWh
currently accounts for just under 5% of energy production in            of electricity every year. Under the terms of the proposals
this country. But a raft of legislation is being implemented to         each affected firm will be expected to reduce their energy
help the country achieve its goal.                                      consumption – and therefore their emissions – against a
                                                                        set baseline. The government has already said it is likely to
Emissions from buildings are responsible for 40% of all global          increase the reach of the proposals to cover around 20,000
emissions according to research from McKinsey and up to 80%             companies in the not too distant future.
of total greenhouse gas emissions in our cities and towns. In
the UK, it’s accepted that 50% of the UK’s greenhouse gas               While a requirement to cut energy use will help drive change,
emissions are associated with buildings, which means that               it is also evident that new workstyles can also generate
it’s becoming critical that buildings, facilities management            significant savings. Laptop use reduced carbon at Macquarie
operations and workstyles begin to address the issue.                   Group by an estimated 8,000 tonnes. And many new ways of
                                                                        working programmes can result in a dramatic reduction of
Obviously one of the key carbon/energy solutions for                    real estate leased or occupied. A 30% reduction of floor space
buildings, especially in the commercial sector, lies in lighting        creates a 30% reduction in carbon emissions.
and temperature controls, as well as the technology that
enables companies to track what’s happening in their                    Innovation in workstyles can also have further impacts. A
buildings. Concepts such as advanced integrated wireless                move to mobility requires new technology platforms, and
lighting control systems mean that lights switch off when a             many organisations take the opportunity to migrate to web
room is empty, temperature controls respond to real-time                based systems, data centres or cloud computing. This takes
weather conditions, positioning blinds where they’re needed             technology infrastructure out of buildings, into purpose
to provide optimum light and shade – these help ensure                  built data centres that cool servers more efficiently. Without
energy is only used when and where needed and won’t                     technology infrastructure in buildings, the power and cooling
compromise the comfort of the building’s inhabitants. These             requirements can be dramatically reduced, creating a greener
building management systems (BMS), when working together                building.
with a network of sensors, can manage lights, heat, ventilation
and air conditioning (HVAC) systems, fire safety and security




“The most sustainable office is the                                     “More and more companies and employees
 one you don’t have”                                                     want to be good corporate citizens and
 Barry Varcoe, Royal Bank of Scotland                                    this may result in less car commuting for
                                                                         individuals. Therefore, I can envisage that
                                                                         you’ll go to a local drop down for corporate
                                                                         services and connect to the company network
                                                                         from there”
                                                                         Mark Tamburro, Nokia




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AGILITY @ Work     The impact of six forces on the way we work




SIX PACK – FIT FOR BUSINESS?
The six forces identified that are reshaping business can be
applied to make an organisation more efficient, lean and fit.
They can become catalysts that accelerate a change process
that develops the corporate ‘six pack’ – an organisation that
occupies perhaps 30% less property, with corresponding
reductions in capex. An organisation where ‘churn costs’ are
close to zero and where technology infrastructure migrates
to the cloud.

And the most striking realisation that fit organisations
are stating is that they believe that they can grow out of
recession without taking on more real estate. For the first
time economic growth and expansion in head count may not
result in expansion in floor space.

“fit organisations are stating that they
 believe that they can grow out of recession
 without taking on more real estate”




Actions for achieving a corporate ‘six pack’:

 1                  Real Estate           Review workplace strategy and introduce activity based working and mobility. Gather
                                          data on utilisation rates and real cost of occupancy as well as churn costs. Create an
                                          aspirational vision for new workstyles.


 2                  Culture               Introduce change management to prepare people for new workstyles. Move from
                                          management by supervision to a results based approach. Identify champions for
                                          innovation and change.


 3                  People                Understand demographics and profile the workforce to identify the needs of different
                                          groups by age, job function and psychometric analysis. Engage with the workforce to
                                          develop opportunities for change.


 4                  Technology            Identify key drivers and enablers of change. Then align technology to the real estate
                                          strategy and introduce the appropriate tools for new workstyles.


 5                  Transport             Realisation that continued stress in transport corridors will require a new approach to
                                          commuting and mobility, and the adoption of polycentric thinking.


 6                  Sustainability        Reduced quantity of commercial real estate leased, together with better management
                                          of property assets, reduced commuting and greener technology will allow targets to
                                          be met.




UNWIRED Research                                                 23                        © Unwired Ventures Ltd, 2010 All Rights Reserved
AGILITY @ Work     The impact of six forces on the way we work




CONCLUSIONS
ACTIVITY BASED WORKING (ABW)

The logical conclusion of the trends presented in this report          Colin King from Nokia goes on to say that:
is the wide scale adoption of activity based working, both
inside and outside the corporate building. Enabled by the              “A Corporate Real Estate head needs to create a Real Estate
technology that has been described, people will increasingly           plan that:
be able to choose where to work.
                                                                       •	   Is organisationally change proof –based on key activities
Heating, cooling and lighting half empty buildings will                     and capabilities not current organisational structures
become a redundant concept as property is utilised efficiently,
                                                                       •	   Supports the business strategy in optimal way
minimising emissions but also improving performance, not
just of buildings but for people. An energised, dynamic                •	   Optimises the cost of location portfolio
workplace is a busy, utilised space – and not one where half
                                                                       •	   Fosters company culture, spirit and engagement –
the desks and offices lie empty.
                                                                            aligned with ways of working/co-location/presence in
                                                                            the office
ABW will create the experience inside buildings of using
specialist spaces for specific tasks and providing people              •	   Offers flexibility and scalability
with the tools as well as the cultural and behavioural norms
                                                                       •	   Ensures best talent supply and attraction for key
to adopt distributed working. This will create a new mix of
                                                                            capabilities
space in an increasingly permeable city that people will be
familiar with; a combination of ‘third space’, home working            •	   Creates a competitive advantage over competitors
and other mobile solutions such as working from clients’                    - Innovation factor
premises. Multiple locations, some leased or owned by a                     - Cost factor
company, but most shared or public will begin to remove risk
for businesses.
                                                                       There will be range of product and services that a MNC will
                                                                       need to consider in arriving at the right value offering for their
Workspace will increasingly be just another ‘on-demand’
                                                                       people.”
service, adopting many of the characteristics of software as
it also becomes another utility. Software as a Service (SaaS) is
set to change the face of computing as people use what they
need, when and pay by the minute. Workplace as a Service
(WaaS) should follow the same model.

These solutions and approaches de risk real estate and provide
‘flex’ for businesses that need to be as ‘nimble’ as possible.
And this polycentric approach to work is set to grow.




“You have to have a spread across
 multiple locations to de risk the
 business model.”
 Colin King, Nokia




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AGILITY @ Work     The impact of six forces on the way we work




INNOVATION AT WORK                                                      FLEXING SPACE

With the forecast adoption of activity based working, mobility          One of the clear trends is that there are never enough meeting
and distributed working, there are far too few places to work           rooms in today’s corporate office. Research has found that
from outside the corporate office or the home. The experience           corporate decision making is being slowed down by a lack
of working in a café or coffee shop is challenging – no where           of available spaces for executives to meet. And as well as
to plug in for power, poor acoustics and no way to print. And           meeting rooms being at a premium, project space is normally
so we predict a huge growth in third space, especially in new           all but non-existent.
destinations and the peripheries of cities, transport hubs and
neighbourhoods.                                                         One vision for the future is the co-location of a corporate office
                                                                        with a serviced office or ‘meeting hotel’. The ability for an
“In the future I see a ring of peripheral drop in spaces. But do        outside operator to offer flex for a company, with the benefits
they need to be 5*?” explains Simon Ward at Barclays. And the           of co-location are obvious. “There is value in Regus becoming
current range of ‘serviced offices’ on offer may not yet be the         a permanent feature in every development,” says a Head of
correct match for an increasingly mobile workforce.                     Real Estate at a FTSE 100 company.

As Chris Hood from Hewlett Packard observes about ‘serviced             This would allow the corporate to focus on its core workspace,
office space’ today, “design can make a difference; it does not         and all specialist and shared services could then be provided
need to be expensive, but creative. Make it a place I really            by an external partner, from meeting and project spaces to
want to go.” Someone needs to bring into the market an                  video conferencing and high end collaboration space. As one
environment that is lighter and cooler – not invest so much.            Global Head of Real Estate reinforces, “If we were able to use
                                                                        specialised environments which demand intensive capital
So the next generation of third space will need innovation to           investment ‘on demand’, provided by a specialist operator
get the positioning right for a large mobile workforce and not          and shared with other organizations, this would be very
just transient executives. A third space model also needs to            interesting.”
move away from the idea that companies want to either hire
desks or meeting rooms only. “The idea of hiring a desk in a
private office for a day does not ring right. I prefer to sit in a
coffee shop and work. People need a technology capability
that they can’t get anywhere else - for example Halo (advanced
video conferencing)”, says Chris Hood at Hewlett Packard.

What began as a solution for small and start-up businesses and
a provision of temporary and overflow space solutions is now
maturing to become a part of real estate strategy for major
corporate and a central part of a distributed working model.




“In the future I see a ring of                                   “There is value in Regus           “Make sure spaces have
 peripheral drop in spaces. But                                   becoming a permanent               video – that’s what its all
 do they need to be 5*?”                                          feature in every                   about. We don’t do any
 Simon Ward, Barclays                                             development.”                      conference calls webinars
                                                                 Head of Workplace, Global           with a camera.”
                                                                 Technology Company                  Head of Workplace, Global
                                                                                                     Technology Company




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AGILITY @ Work     The impact of six forces on the way we work




WHERE NEXT?
The 6 forces represent the ability for a point of inflexion               compasses and accelerometers. The next wave of technology
for work and the workplace. A change so fundamental                       will introduce ‘geo-presence’ – knowing where people are in
that the very basis for how and where people work will be                 real time, inside and outside buildings, and what their current
challenged.                                                               status is…“we should use technology to tell you where you
                                                                          can work.” says Colin King at Nokia. And the combination of
The imperative for such radical change will surely come                   geo-presence, augmented reality (AR) and a host of other new
from sustainability – our current model of work is clearly                applications will begin to remove some of the boundaries and
unsustainable. But it will also be driven by demographics,                challenges of place-independent working – finding a nearby
as the millennials and the ‘net generation’ yet to graduate               place to work, feeling belonging, connecting with colleagues,
shift expectations and employers react to attract and retain              knowing where people are – and trusting that they are
talent. Transport in cities will drive people to find alternatives        actually working when they are not being ‘watched’.
as urban environments become increasing immobile, and
legislation will also drive change, from working hours to taxes           Development of new concepts to accommodate an
on business inefficiency (for example in CO2 emissions).                  increasingly footloose workforce will be essential, especially
                                                                          as these behaviours are adopted by new job functions, not
Technology will have its part to play, as catalyst and driver             used to flexibility. “The model needs to continue to be fine
of change, but also as enabler of forces and trends in mobile             tuned and tested,” says Chris Hood at Hewlett Packard.
working, collaboration and teaming that are already emerging.
Management culture and change will be, as always, two of                  “It can only get better – more and more people will move to
the biggest hurdles to overcome. But reducing the cost of                 distributed working,” predicts Chris Kane (BBC Workplace)
real estate or ‘occupancy’ will be seen to be a clear win-win, as         and this vision we believe will set the agenda for work and
new work styles change the cost base for doing business.                  patterns of use of the city and its myriad of workspaces over
                                                                          the next decade.
Innovation will be everywhere. Mobile devices not only have
global positioning systems (GPS) built in but, now, also digital




UNWIRED Research                                                     26                         © Unwired Ventures Ltd, 2010 All Rights Reserved
AGILITY @ Work     The impact of six forces on the way we work


APPENDICES
Our Research

Thanks
John de Lucy                 The British Library          Head of Estates
Chris Hood                   HP                           Head of Workplace
Daniel Johnson               Accenture                    Global Director, CRE Workplace
Ronen Journo                 Cisco                        Head of Workplace EMEA
Chris Kane                   BBC                          Head of Workplace
John Killey                  Citigroup                    Managing Director Citi Realty Services
Colin King                   Nokia                        Global Head Real Estate
Richard Paver                BP                           Global Head of Real Estate
Mark Tamburro                Nokia                        Global Head Real Estate
Barry Varcoe                 Royal Bank of Scotland       Head of Workplace
Simon Ward                   Barclays                     Global Head Real Estate


About the Authors
Philip Ross                                                                 Mark Dixon
Philip is CEO of the Cordless Group, specialists in the impact of           Chief executive and founder, Mark Dixon is one of Europe’s best-
emerging technology on people and their behaviour in the built              known entrepreneurs. Since founding Regus in Brussels, Belgium
environment.                                                                in 1989, he has achieved a formidable reputation for leadership
                                                                            and innovation. Prior to Regus he established businesses in the
He has worked with organisations such as Ernst & Young, Allen &             retail and wholesale food industry. Recipient of several awards for
Overy, GlaxoSmithKline, Cisco, McKinsey & Co, Nottingham City               enterprise, Dixon has revolutionised the way business approaches
Council, PriceWaterhouseCoopers, Royal Bank of Scotland, Jones              its property needs with his vision of the future of work.
Lang LaSalle and Ericsson on future concepts based on emerging
technologies.

Philip has spoken at conferences around the world including the Wall
Street Journal Europe CEO Forum on Converging Technologies, alt.
office in the USA and Corenet’s Global Summits in Beijing, Auckland,
Orlando, San Diego and Melbourne. In 1994 he wrote and published
The Cordless Office Report and founded Cordless Group.

He has written three books on the future of cities, work and
workplace: The Creative Office, The 21st Century Office and Space to
Work (all co-authored with Jeremy Myerson). He has also contributed
to a number of other books including the Corporate Fool and the
Responsible Workplace.




UNWIRED Research                                                       27                           © Unwired Ventures Ltd, 2010 All Rights Reserved
AGILITY @ Work     The impact of six forces on the way we work




About Unwired                                                           About Regus

work • workplace • technology • innovation                              The Regus Group (LSE:RGU) is the world’s leading global
                                                                        provider of innovative workspace solutions, with products and
Unwired is a specialist in the future of work. Through research,        services ranging from fully equipped offices to professional
forecasting, publishing and events it predicts the way that             meeting rooms, business lounges and the world’s largest
our a patterns of work will change as a result of political,            network of video communication studios. Regus delivers a
socioeconomic and technological trends.                                 new way to work, whether it’s from home, on the road or from
                                                                        an office. Clients such as Google, GlaxoSmithKline, and Nokia
Unwired was founded in 1996, and has published over 50                  join thousands of growing small and medium businesses that
research reports, including Creative Places for the BBC,                benefit from outsourcing their office and workplace needs to
the New Millennials for Nokia and Rio Tinto and Workplace               Regus, allowing them to focus on their core business.
Sustainability.
                                                                        Over 500,000 clients a day benefit from Regus facilities spread
Its events include the WorkTech conferences held in London,             across a global footprint of 1,000 locations in 450 cities and
New York, Shanghai and Amsterdam.                                       78 countries, which allow individuals and companies to work
                                                                        wherever, however and whenever they want to.
For further information visit:
www.unwired.eu.com                                                      For more information please visit:
                                                                        www.regus.co.uk




Published by

Unwired Ventures Ltd                                                    Unwired Ventures Ltd, its employees, the advisory board and the
The Innovation Centre                                                   sponsors of Unwired are not to be held responsible for any losses,
7 St John’s Mews                                                        expenses or any claims arising out of any reliance on the information
St John’s Road                                                          contained in this publication. Since most of the information in this
                                                                        publication has been provided by third parties it requires further
Hampton Wick
                                                                        verification. In every instance an application is made it must be
Kingston upon Thames                                                    independently verified and applied to those individual circumstances
KT1 4AN UK                                                              by a suitably qualified individual.

Telephone +44 (0) 20 8977 8920                                          The very nature of the information contained in this publication
Facsimile +44 (0) 20 8977 8970                                          ensures that at the time of publication it may be outdated or
Email    info@unwired.eu.com                                            superseded. No copyright or intellectual property is transferred or
Web      www.unwired.eu.com                                             should be assumed and all images, photographs and trademarks
                                                                        remain the property of their respective owners. UNWIRED is a
                                                                        registered trademark of Unwired Ventures Ltd. No rights exist to
                                                                        reproduce this publication in any form or media in part or whole.




UNWIRED Research                                                   28                           © Unwired Ventures Ltd, 2010 All Rights Reserved

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Agility @ Work: adopting the corporate six pack

  • 1. UNWIRED RESEARCH AGILITY @ Work adopting the corporate six pack by Mark Dixon and Philip Ross
  • 2. AGILITY @ Work The impact of six forces on the way we work CONTENTS EXECUTIVE SUMMARY 3 THE CHANGING NATURE OF WORK 5 NEW WAYS OF WORKING 6 SPACE TO WORK 7 THIRD SPACE 8 NEW WAYS OF WORKING CASE STUDIES 9 6 FORCES RE-SHAPING WORK 13 REAL ESTATE 13 CULTURE and WORKSTYLE 14 PEOPLE 15 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) 17 TRANSPORT 21 SUSTAINABILITY 22 SIX PACK – FIT FOR BUSINESS? 23 CONCLUSIONS 24 ACTIVITY BASED WORKING (ABW) 24 INNOVATION AT WORK 25 FLEXING SPACE 25 WHERE NEXT? 26 APPENDICES 27 Our Research 27 About the Authors 27 Philip Ross 27 Mark Dixon 27 About Unwired 28 About Regus 28 UNWIRED Research 2 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 3. AGILITY @ Work The impact of six forces on the way we work EXECUTIVE SUMMARY This report sets out to predict the future of work. It presents What is clear is that work is rapidly becoming something we six trends or forces that are reshaping work, and in turn do, and not a place we go to. Mantras such as work ‘on the allowing companies to change the way they organise work. pause’, or ‘management by results’ show that supervision and These external forces are: demography, culture, technology, presenteeism are giving way to trust and empowerment. sustainability, transport and property. Together they not only People will in the future be increasingly free to choose their comprise the key overheads of a business, but also the drivers work/place. of change that no company can ignore if it is to get into shape as the world emerges from recession. This has a big impact on sustainability. Two of the key contributors of carbon emissions are commercial buildings That shape is a corporate ‘six pack’ - a new way of structuring and commuting to those buildings. Both can be challenged work, based on a new set of assumptions and an understanding by changing patterns and places of work. of new opportunities. This can be achieved through the adoption of new approaches to workplace provision such as But there is still a gap in the provision of places to work ‘on activity based working and a new view of a polycentric city. the pause’. This report will look at early examples of ‘third spaces’ and discuss the growth needed to accommodate an We believe that these six drivers will reshape organisations increasingly agile workforce. We predict a new network (both in the ‘tennies’ to be fitter, and leaner – the ‘six pack’ for the virtual and physical) that in effect becomes the ‘office’. This corporation that provides a much lower cost base for work. hub and spoke approach will be crucial, as multiple locations We have looked at the ‘cost of work’ – a measure of the in a city give rise to consolidation, and continued transport overhead required today to allow a person to be productive. congestion make movement around a city a continuing issue For a leading, blue chip organisation this is anywhere – immobility in the city will lead to a growth in the demand between $19,000 and $22,000, at the moment per person per for multi-centric working. annum in a capital city. The target for some companies is now under $7,000, achieved through innovation, mobility and the Work will no longer be about a building, a dumb container, to adoption of new workstyles. which people commute and which ‘houses’ the corporation’s infrastructure, data, technology and files. Work is now New technology will have a dramatic affect on how and permeable – the boundaries are blurring and there are better, where work is done. We present the key drivers and enablers more efficient places to house technology and data. The of change, for both small and medium sized businesses as future is being redefined. well as multi-national enterprises. Trends such as accelerating the adoption of mobility, virtual workplace portals and the This future will result in corporations leasing less real estate. migration to ‘cloud computing’ will see a gradual transition to As they emerge from recession, fit corporations that have ‘empty’ or thin office buildings, devoid of all technology. adopted ‘six-pack’ thinking will be able to achieve growth in headcount without taking on additional square feet. This research not only looks at evidence based on case studies from early adopters of radical workstyles across the globe. It also discusses issues with leading heads of real estate from global companies to understand their thinking, concerns and aspirations for the new world of work. Time Magazine UNWIRED Research 3 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 4. AGILITY @ Work The impact of six forces on the way we work Actions for achieving a corporate ‘six pack’: 1 Real Estate Review workplace strategy and introduce activity based working and mobility. Gather data on utilisation rates and real cost of occupancy as well as churn costs. Create an aspirational vision for new workstyles. 2 Culture Introduce change management to prepare people for new workstyles. Move from management by supervision to a results based approach. Identify champions for innovation and change. 3 People Understand demographics and profile the workforce to identify the needs of different groups by age, job function and psychometric analysis. Engage with the workforce to develop opportunities for change. 4 Technology Identify key drivers and enablers of change. Then align technology to the real estate strategy and introduce the appropriate tools for new workstyles. 5 Transport Realisation that continued stress in transport corridors will require a new approach to commuting and mobility, and the adoption of polycentric thinking. 6 Sustainability Reduced quantity of commercial real estate leased, together with better management of property assets, reduced commuting and greener technology will allow targets to be met. UNWIRED Research 4 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 5. AGILITY @ Work The impact of six forces on the way we work THE CHANGING NATURE OF WORK For over one hundred and twenty years our workplace - the corporate hierarchy. The office has reflected status and power, office - has been dominated by fixed technology. From the not role and function. But it has also represented stability and Remington Typewriter and Bell’s telephone in the 1880s certainty, and for the company inflexibility and sloth. Change to IBM’s PC in the 1980s, there has always been heavy was difficult, expensive and slow. equipment on desks that has tethered down the office worker. The growth of the networked computer has resulted But this approach to workplace is increasingly redundant. in an ‘intelligent office building’, engineered to house, power Most people no longer sit behind desks all day carrying out and cool the servers and switches that create the network, repetitive tasks. In fact research shows that the majority of process and store corporate data. And a complex industry desks, typically 55%+, in an average office are empty at any one has grown up to house this connected real estate, from raised point in time. More and more work is collaborative, and people access flooring to cable managed systems furniture. spend more time working with others. Having a telephone extension number that represents a piece of furniture or a But you can look back into the mid-1800s at a pre-IT era when room is archaic in an age of fast communications. the workplace had no technology at all. Clerks with pens at simple desks or benches were the predominant model. And And while desks are usually empty, research shows2 that you we believe that we are heading ‘back’ to an under-engineered, can never find a meeting room. Space for teams, projects, technologically sparse workplace environment, at least in the M&As, pitches or war rooms are needed but not available. eyes of the user or occupant. As the Financial Times stated: The types of spaces that people will demand for the types of “Fifty years ago computers were absent from office life… In work undertaken in buildings are changing. 50 years time things will be much the same. There will be no machines on our desktops.”1 When people do find a room for a team session, the barriers to collaboration and connectivity are extreme. Complexity As well as heavy, personal desktop technology, paper and to get people onto a network, sharing resources such as a personal files have tied the worker to his or her desk. People printer or projector are substantial in most workplaces today. store many linear meters of paper and filing each, at or near And for non-employees with so-called ‘alien devices’ it can be their desk. In many workplaces, between 15 and 17 % of floor difficult or impossible to connect and use peripherals such as space is given over to storage, and the paperless office has printers. yet to materialise. Yes much is about to change and challenge not the use of paper but the need to file and store it. ‘Digital Now, with the introduction of mobile, portable technology flow’, new display technology, tablets and ebooks will all and the ability to communicate across distance at little or reduce the ‘half life’ of paper. no cost, many of the fundamental rules of office life will be challenged. There is something significant happening to the Allocating one person to one desk or office has been the nature of work, and the places created to house it in the 21st predominant approach to organising work, clustering Century. people by department in a building that represents the static “Fifty years ago computers were absent from office life… In 50 years time things will be much the same. There will be no machines on our desktops.” Financial Times 1 1 Financial Times, The Office is future-proof, Special Report on the Future of Work, Monday September 27 2004 2 UNWIRED research report 2008 UNWIRED Research 5 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 6. AGILITY @ Work The impact of six forces on the way we work With the rise of mobility, work has become more fragmented example, that 5 people share say 4 desks. Sharing ratios are and staccato – people dip in and out of work, and increasingly often the limit of current thinking, and represent a first step on ‘work on the pause’. The office has become one of a number of the journey to a new workstyle. locations in which work can take place. But the other spaces in which people try to work are often challenging. A coffee The terms ‘Hot Desking’, alternative officing and ‘Hoteling’ were shop, where there may be WiFi connectivity but no power or born, alongside the corporate initiatives such as SMART, Free ability to print. A transport hub where there is no place to get Address, iWork, my work and so on. They describe the early away from noise, or an hotel where there are no private work examples of introducing new workstyles. But all too often spaces. they were attempts to shave cost and share desks. There was little gain for the individual and the spaces created were often We predict the rise of new destinations and locations for work; poor and unappealing. Now a new approach is evolving. places in between the home and corporate centre. Many of the current examples of new workstyles owe their NEW WAYS OF WORKING origins to a few pioneers. Apart from the obvious candidates in accountancy, companies such as SOL (a cleaning company), Chiat Day (an advertising business), Digital Equipment Mindful of these trends, and with a desire to cut costs, Corporation (a computer company) and British Airways (the companies have started to experiment with flexible working airline) began to make radical advances in the way they used and introduced the idea of hot desking or desk sharing, with work space. moderate ambition of occupancy efficiency to the extent, for “Whereas the new mode of “Mobile people need working was once an exception, somewhere to touch now the office will be seen as a down.” last resort.” Chris Hood, Hewlett Packard Mark Tamburro, Nokia UNWIRED Research 6 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 7. AGILITY @ Work The impact of six forces on the way we work SPACE TO WORK In the book, Space to Work (co-authored by Philip Ross first commercial buildings in the world, where people clustered and Jeremy Myerson) four key trends were identified for by profession, skill or trade. Now we see a re-emergence of the knowledge company, based on research with over the Guild, as employment by the corporate entity is joined 200 businesses worldwide. These are represented by the by freelance and independent careers – the portfolio workers diagram and show the tensions at work, between permeable that now form a major part of many organisations. and contained work, and between high and low corporate visibility. The BBC is perhaps the first to experience the re-emergence of the Guild as workplace. Its workforce is a mix of employees The corporate office becomes an Academy – a place for and independents – production companies and freelancers people that provides choice and empowerment, enabled by that work on programmes and use BBC workspaces. As Chris technology and an accepting leadership culture. This balances Kane (BBC) explains, “people want to work with us. Freelancers with the Agora – the increasing ability to be effective ‘in the are a big proportion of our population.” field’, in front of customers or working from new, third spaces. It means that people have to come back to the corporate In the diagram below, people find their own balance or office on a less frequent basis and so challenges the need to equilibrium, based on their profile. But what is clear is that give them a desk. the ‘academy’ corporate centre will contract, while work in the agora and lodge will increase. As Chris Hood from Hewlett The other trends are about new space. Working near the Packard states, “Mobile people need somewhere to touch home, in the community, was called Lodge to evoke the period down.” And so new destinations are needed. in history when piece work from home, or community based working, commerce and trade were the norm. A regrouping by people from the same profession was also recognised – the 21st Century Guild. Guild buildings were the As Chris Kane (BBC) explains, “I never work at home; “People want to work I only work remotely.” with us. Freelancers are John Killey, Citigroup a big proportion of our population.” Space to Work Four key trends in the Knowledge Economy UNWIRED Research 7 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 8. AGILITY @ Work The impact of six forces on the way we work THIRD SPACE Space ‘in between’ the corporate office and home environment Another innovator in third space is The British Library next has been referred to as third space. And a range of innovative to London’s new Eurostar terminal at St Pancras. The Library ideas have emerged, from clubs and hubs to serviced offices initially provided WiFi connectivity for the 4000 people that and public buildings. came in each day, but demand for space to work was so great that a free wireless workzone was created in front of the King’s library. The space provides good ergonomic furniture, with PRIVATE PRIVILEGED PUBLIC free power (delivered to the arm of sofas) and task lighting. SoHo House The Hub Starbucks It has proven to be so popular that now 5000 people use the The Hospital Regus British Library building each day, with 1000 people a day just using the space for work and meetings before heading on, for example, to St Pancras or Kings Cross stations. Using Frank Duffy’s3 well known workplace descriptors, the idea of third space can equally be categorised as public, At Regus’ Berkeley Square centre, a club workspace has been private and privileged. From the free space available in public created to allow people a drop in destination that is flexible, buildings that is being created for mobile workers, to the shared and informal. Private work pods are interspersed with private members club where you have to be nominated and soft seating and meeting spaces that people use as if they were recommended to join, a host of options for third space exist in an airline lounge. More formal space can be booked, but for and more are set to emerge. many of Regus’ Platinum and Gold card holders, the lounge is exactly what is needed for ‘work on the pause’. A professional One of the most interesting third spaces is The Hospital, a club space to drop into, connect and work. for media executives that was set up and funded by Paul Allen (a founder of Microsoft). Members pay an annual subscription, But the range of current options available to agile workers and have use of a building in London’s Covent Garden where is limited and often not fit for purpose. A café that does not they cannot only work, meet and eat, but also screen a film, provide power, a public space that has no acoustic privacy or use a recording studio or make a television programme in a a private club that offers poor wifi connectivity and no facility full, state-of-the-art studio. to print. Third space needs to become as sophisticated as a modern workplace, with a range of facilities that provides A space that can be shared, that allows high cost capital effective destinations to work ‘on the pause’. intensive spaces to be utilised well and that gives people access to resources that they otherwise could not justify, provides a new model. The Hospital British Library Regus, Berkley Square “Our wireless workzone has “We are deploying home increased visitors to the based working for all global British Library significantly” locations... and we are looking John de Lucy, British Library very carefully at in between places” Daniel Johnson, Accenture 3 Frank Duffy, DEGW UNWIRED Research 8 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 9. AGILITY @ Work The impact of six forces on the way we work NEW WAYS OF WORKING CASE STUDIES What is clear is that many organisations have now adopted what There are hundreds of examples of new ways of working can be broadly defined as ‘new ways of working’. That is they programmes. Some are more adventurous than others, but all have broken the ‘one-desk-one-person’ model and introduced challenge the premise of the traditional office. The trends can something different. Solutions, definitions and concepts vary be seen in every part of the globe, in companies big and small from one business to another, but the trend is clear. People are and in every industry and sector, public and private. becoming mobile, enabled by new technology and given the trust and empowerment needed to work in a different way. As they experience, and are equipped for mobility, inside their workplace, they will also be able to work from a range of new destinations and use their experience to work in a different way. Nokia, Beijing, China Situated on one of the ring roads in Beijing, the new Nokia campus has created a state-of-the-art building that provides a unique campus for R&D in China, attracting the best talent in a competitive market. With the congestion problems in Beijing, mobile workers such as sales people and engineers spend much of the time on the road and when they are in the office share workspace, using the mobile units below. Business Transport Centralised ‘academy’ with Central location on an outer ring road in one Benefit enabled mobile workforce of the world’s most ‘immobile’ cities. Flexible working enabled for the mobile workforce. “In China we have given our sales force Regus gold cards as part of a pilot study providing unlimited walk-in access to Regus Beijing network.” Colin King, Nokia Nokia, Beijing UNWIRED Research 9 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 10. AGILITY @ Work The impact of six forces on the way we work Interpolis, Tilburg, The Netherlands Insurance company Interpolis has broken the mould and created a very different office based on teams and tasks, enabled by mobile technology. Over 3000 people based in their purpose-designed building work in activity based worksettings that range from weavers huts to stone houses – all designed by some of the top Dutch artists. The workplace has made a substantial impact on the recruitment and retention of staff. And in the process they saved €90m on capex and over €8m per annum on opex as churn costs have been reduced to zero. Business Real Estate Capex and Opex reduction Reduction of real estate leased by 30% has been Benefit achieved in new ways of working programmes. Churn costs have been reduced to near zero. Macquarie Group, Sydney, Australia Macquarie Group’s new building on Shelley Street in Sydney has adopted activity based working, with over 2500 people sharing a range of spaces that they choose based on a particular activity. The spaces are rich and varied, with a dynamic central street as well as a plaza area on each floor. Everyone carries a laptop and uses wireless technology to connect, so people can work from anywhere. Macquarie has reduced paper by 73% and one of the surprising findings from post-occupancy is that use of lifts (elevators) has reduced by 50% as people choose to walk up the central stairs between floors. Business Sustainability Paper and storage Macquarie has reduced paper used by 73%, Benefit reduction with a 78% reduction in storage space required (from 5km to 1km of files) and a reduction in printing of 52% due to Follow Me Printing – equivalent to 42 tonnes of paper p.a. Interpolis, Tilburg Maquarie Group, Sydney UNWIRED Research 10 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 11. AGILITY @ Work The impact of six forces on the way we work Vodafone, Auckland, New Zealand A desire to attract and retain young, talented people was one of the key drivers of this innovative workplace that presents an informal, colleigate atmosphere. 1300 people have no desk, and all are equipped with the latest mobile technology. People choose to work either at a shared workstation, or in one of the more social, café style environments. Business People Attracting and retaining A more vibrant work environment has been Benefit talent shown to be a positive factor in attracting talent. Googleplex, Mountain View, USA With over 16,000 people on their Mountain View campus, Googleplex is a remarkable mini city of people and places. As you would expect in California, the campus has a rich variety of outdoor spaces from restaurants to basketball courts. As well as fairly traditional workstations, much of the internal space is given over to common, shared spaces from cafes for grazing to lounges, seminar rooms and social space. Google make much of their 20% time philosophy, and Googlers have plenty of opportunity to find ‘20% space’ to be inspired. Business Culture Innovation The focus on 20% time has resulted in many of Benefit Google’s innovations – Gmail, Google maps and so on. People have the ability to use shared space for innovation and inspiration Google, Mountain View Vodaphone, Aukland UNWIRED Research 11 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 12. AGILITY @ Work The impact of six forces on the way we work Microsoft, Amsterdam, The Netherlands Microsoft’s new campus at Amsterdam’s Schipol airport changes the rules. Nobody has a desk, and the workstyle is activity based working. A range of spaces have been created, from small private cocoons for concentrated work and for on screen working and review by one or two people, to open team tables and private, individual carrels. Everyone uses a laptop, and the space has no fixed phones at all, with Vodafone and Microsoft’s Enterprise Voice solution providing converged telephony and messaging that is delivered to a person, not a desk. The workplace is almost paperless, with people printing on average only one page each per day. Business Technology Death of the desk phone A move away from fixed telephony to true Benefit ‘fixed-mobile’ convergence, with one software interface providing unified comminications – connecting people and not desks Microsoft, Amsterdam UNWIRED Research 12 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 13. AGILITY @ Work The impact of six forces on the way we work 6 FORCES RE-SHAPING WORK With the early indicators above that work and the workplace is changing, we now predict an acceleration of these trends based on six key forces: Real estate • Culture and workstyle • People • Information and communication technology • Transport • Sustainability REAL ESTATE Real estate overhead and cost reduction has To get a picture for the future, a leading global technology become one of the key drivers of work style company with over 100,000 people has introduced new innovation. As well as reducing the amount of ways of working and mobility and in doing so has reduced real estate needed, companies are also driving out opex and occupancy costs to $4,000, per head per annum (rent, rates, downtime by focusing on operational efficiency. utilities, services etc) – less than half the previous costs per capita. Real estate costs today represent for most organisations the second biggest overhead after salaries, and this is now under Even the public sector and government estate is undergoing scrutiny as companies state that they will grow in headcount change. In the UK, the Office for Government Commerce without taking on more square feet. (OGC) states that central government occupies over 100 million square feet of space. The average cost of providing In capital cities such as central London, the cost of a desk office space in London is £7700 per person per annum, and per person per annum is somewhere between $19,000 and across the UK it averages at £4178 per person per year. And $22,000. This figure includes rent, rates and services charges this amount is falling year on year. but often excludes technology. And so cost reduction can now be achieved through new ways To provide a measure of the scale of overhead that offices of working that require less space. But operational costs can contributes as a % of turnover is important. For example, also be removed, notably churn costs – the moves and changes Philips, the electronics giant, has 118,000 people worldwide which for some companies are at 80%+ - that is 8 out of every based in 877 buildings on 730 sites in 69 countries. This totals 10 people are moved around the building each year. The cost 6million square metres and costs the business annually €636m of churn can vary, but anything from £400 to £1000 per person (for real estate and facilities). Interestingly this represents 2.4% per move has been stated. One investment bank found that of turnover. they spent $8m in churn in London in one year alone. But companies are now pushing back against these costs. So corporate spaces we believe will be smaller, based on Nortel, the telecommunications company, has 9000 people an Academy model, with flexible, churn free space, and in 186 locations worldwide. They have taken occupancy costs companies will begin to rely on other destinations for work to from $12,000 to under $3,000, per person per annum. 126 sites complement these smaller centres. “The optimal real estate have been closed and $129m taken out of the portfolio over a solution may now involve only one (corporate) site in any period of only 3 quarters. Now over 2500 people carry Regus major city but this may be inconvenient for some customers Businessworld cards, so they can make use of a network of and employees who are on the wrong side of the city”, Chris workspaces, and in turn Nortel is moving towards managing Hood, HP. And so to minimise travel and down time, we see a only five corporate hubs. demand for a polycentric approach. “We need spaces on the fringes of the CBDs “The high value-add is the ability to assemble (central business districts) if we are going to team space at the drop of a hat. We win a help people work in a dispersed manor; they contract, a twenty person team needs to be need to pop up whenever.” assembled and we need to hire a project room Head of Workplace, Global Technology Company for six months.” Chris Hood, HP UNWIRED Research 13 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 14. AGILITY @ Work The impact of six forces on the way we work CULTURE and WORKSTYLE But these are just artefacts of yesterday’s order. People can still One of the most dramatic changes that is underway feel belonging – just not to one small desk. Done correctly, is an acceptance of management by results rather people feel ownership of a community space – rather like a than supervision. The outdated notion of being private members club. paid for the number of hours spent in the office is no longer valid in an age of distributed working. But for many middle What is clear is that status has been correlated to space for managers, letting go of ‘watching the back of peoples heads’ is over a century and for many, a career climbing the corporate a difficult transition. For people at all levels, distributed work ladder has been manifested by the journey to the corner office. has its issues. The SVP label has a physical incarnation in today’s world of corporate hierarchy. And while management report challenges in managing without ‘presenteeism’, in the current climate, people have also But in a matrix, team orientated organisation these tokens reacted with a need to be present, for job security and being become vestiges of yesterday’s approach. People find new recognised and remembered. This is partly due to ineffective ways to demonstrate position. The office no longer represents solutions to ‘virtual presence’ - the technology that can fill the the hierarchy. void left when people no longer sit together by department in fixed places. A ‘circle of trust’ is an approach used successfully One of the positive outcomes from flexible working is work- to allow a different paradigm. A company trusts its people to life balance. An overworked term that for many has little represent its values to clients, and so the same trust needs to resonance given that mobile email has extended working be vested in people and the choices they make over where hours and blurred the boundaries between work and ‘private and when they work. life’. But people spend on average 54 minutes a day commuting to their workplace. In major cities this can easily double. And This gets more interesting as more and more work is distributed in many developing economies, cities are becoming immobile on a global scale. For example, over half of London’s top law – it can take hours to move around Beijing or Dehli. firms now outsource typing to South Africa – a country within the same time zone, English speaking with qualified people at We have witnessed a dramatic growth of flexible working. For a fraction of the cost of London. example, 14% of British Telecom’s workforce are now home based. People have the tools to work anywhere. Now culture Adapting to a new workstyle is also a challenge for many and management style is catching up to create new ways of people. Years of sitting behind the same desk, day in day managing without physical presence. out, create a pattern of behaviour. The overflowing ‘to do’ pile, the ‘to read’ pile, post-it notes with phone messages and reminders, pictures of the kids and trophies and collected mementoes represent our nesting instinct. “Much of our work continues to happen “It’s not about having a physical place – its at client sites, and we certainly consider what you contribute to a company.” “travel” a work location - we have as Mark Tamburro, Nokia many people in hotels each night as we do in our consulting offices each day!” Daniel Johnson, Accenture UNWIRED Research 14 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 15. AGILITY @ Work The impact of six forces on the way we work PEOPLE For the first time ever, there are now four Baby-boomers generations at work. This creates a unique challenge, as each has its own characteristics, aspirations and This group is so large; it is divided into early boomers, born preferred workstyles. from 1946 to 1954, and late boomers, with dates from 1955 to 1965. Both share a strong emphasis on individuality, The newest entrants to the workplace, the Millennial youth, and adventure. They are confident in their prosperity Generation (also called Generation Y), promise to exert because they were raised amidst economic growth. Boomers even more influence than their Baby Boomer parents. This have humanised the workplace, making it comfortable and group, born between 1980 and 2000, is more numerous encouraging innovation at all levels. They are exploring than the boomers. It is also a generation celebrated for its retirement in interesting ways – they are expecting an confidence, its dedication to equality in the workplace, and extended active and vital work life by working part time, its global perspective. But most important, the Millennial telecommuting or consulting. Generation takes information delivered by digital technology for granted. For them it is intuitive, invisible and essential and Generation X the infrastructure that delivers it, ubiquitous. They are used to living on line and being synchronous does not present a These born between 1966 and 1977 are typically identified as problem. They have a disregard for privacy, adapting to the slackers, winners and cynics. There is tension between them transparency of social networks and openness of location and the boomers. If these children of divorce and day-care aware services. As a social impact, for probably the first time had a slogan, it might be a sarcastic, “thank you for the world in history, these young people are considered authorities on you’re leaving me.” But Gen X is also very entrepreneurial. They something that the older generations haven’t mastered in the were raised in times of idealism and equality, so they lack the same way. social and cultural limitations of their predecessors. What are the characteristics of the other three Getting ready for the digital natives – the ‘net’ gen generations? What is clear is that the next generation (still at school) will Traditional generation be even more radical in their attitudes and approach. The ‘net gen’ or digital natives have grown up with the internet and Born between 1928 and 1945, these are the oldest members of use technology in a very different way to other generations. the workforce. They tend to exemplify faith in the Institutions, They are learning with the internet, use SMART interactive loyalty, willingness to conform, and the importance of hard white boards in their class rooms and carry with them more work. They respect their employing organisations and expect computing power than their predecessors had in their ‘paternalism’. Many of this generation are retired. But a growing workplace. They will be the generation that moves the goal percentage is staying in the workforce, offering outstanding posts – the first to be able to live on line, to read on screen and knowledge and experience. to be happy with less privacy on ubiquitous connectivity that still leaves the digital immigrants out in the cold. The ‘net’ gen classrom UNWIRED Research 15 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 16. AGILITY @ Work The impact of six forces on the way we work Characteristics of the generations Born Age Issue Solution Traditionals 1928 63+ Will not retire but will work Bespoke areas for shared space with to 1945 part-time. treatment such as higher lux/lighting levels, areas to relax/have a nap, different furniture. Baby Boomers 1946 43 - 62 Mixed comfort with May still need allocated space as they to 1965 technology, mostly digital have climbed the ladder and are often immigrants, now leading the resistant to change. enterprise. Generation X 1966 31 - 42 Too late to be natives but Open to change and used to working to 1977 savvy with technology. Prime flexibly. Best group to introduce new contenders for flexible working. workstyles. Millennial 1980 11 - 30 Experienced PCs in the home Open to and indeed expect radical Generation or to 2000 and at college. Some learning workplace solutions. Very suited to Generation Y with technology. First digitally activity based working and advanced literate group to arrive in the technology. workplace. Net Gen Since 2000 Under 10 Will be net savvy – born with Will not need paper and probably the internet – true digital be the first group to embrace virtual natives. workplaces. UNWIRED Research 16 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 17. AGILITY @ Work The impact of six forces on the way we work INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) New digital technology is emerging that will one where people do not have to commute in to a ‘dumb change the nature of how, why and where work container for work’. The digital office is being defined. is done. The rise of a new breed of technology is challenging not just the world we live in, but is beginning to The digital world assumes that you can connect from anywhere. redefine the very construct of the organisation. Becoming Today from a laptop and ‘smart’ phone; tomorrow from digital will change that equilibrium, resulting in a new any device through a browser. The combination of wireless relationship between ‘man and machine’, between the city network connectivity, high performance mobile devices, and suburb, and between employer and employee. high speed networks and new, software-led connectivity and ‘unified’ messaging tools have in effect sounded the death Being analogue wasn’t much fun. For the past 120 years office knell of the ‘desk phone’ and the desktop personal computer. workers have been tied to desks, tethered by the heavy, cabled technology that enabled their usually repetitive work to take The biggest technological barrier had been paper, but even place. Taylor’s time and motion was the predominant view of here its half life is diminishing and while people will still always efficiency, and ever since Alexander Graham Bell invented the use paper, it need not be stored and certainly not kept at the telephone in the 1870s, people have been tied to furniture desk. But paper is also threatened as we become digital. The for work and communication. The desk and private office previous IT revolution was basically to take paper and turn it became synonymous with status, territory and belonging in digital. And this meant that what you viewed on screen could the organisation. then be re-output to paper. No longer. What is displayed is now a mix of media, with flat, two dimensional text juxtaposed But slowly things have started to change. In the 1990s, email, with video and Uniform Resource Locators – the url links the laptop and the cell phone became the tools for a new that help us navigate the internet as well as hover or hidden mobile elite. This was followed by the growth of the internet, information. What you print no longer represents what is on with its redefinition of telephony, networks and collaboration. the screen. Then we witnessed wireless networks, mobility and ubiquity. Now we have digital flow, data centres and the cloud. Digital Now digital technology will take that data, and soon technology is re-writing the rules. applications, out of the office altogether. The rise of the corporate data centre will now be superseded by cloud So far these rules have applied to the edges of corporate life. computing, as applications, processing and data are managed Better ways to communicate, mobile email and the Blackberry via the internet in anonymous grid or utility computing farms revolution, multimedia and multifunctional devices. Faster managed by the likes of Google, Microsoft, Amazon and HP. connections and speed of communication have changed how The efficiency of these spaces with their ‘blades’ and shared we work to some extent. But now, the opportunity exists to resources through ‘virtualisation’techniques, will challenge any look at ‘digital’ as the enabler for a different way of working; corporate solution on cost, efficiency and green credentials. “As technology has improved, so has people’s understanding that they don’t need to be in a fixed place to perform.” Mark Tamburro, Nokia Picture Credit: Intel UNWIRED Research 17 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 18. AGILITY @ Work The impact of six forces on the way we work And so the digital revolution will take almost everything out What you view on screen of the corporate office. We will in effect occupy from a digital perspective an empty building in the future, devoid of the is now a mix of media, computing power that keeps the corporate pulse. And with with flat, two dimensional the migration to the cloud will come the realisation that work, text juxtaposed with increasingly will be done from anywhere, at anytime. The video and hover or hidden necessity to co-locate in a down town office building, sitting information. What you print adjacent to departmental colleagues to carry out a task will be seen as yesterday’s approach to work in the analogue era. no longer represents what is on the screen. So with mobility and new devices, digital flow and the cloud, what is left for the office? The rise of digital does not mean the decline of bricks and mortar. People will still need to work, and will need a place for work that is not the home. Collaboration will require people to co-habit. And there will always be the need to create a branded environment that represents the corporation and acts as an extension to the corporate brand. The digital revolution will not slow down. New devices, city wide WiMax networks and a host of other innovations will continue to allow innovation and change. The next step change will see location aware systems and services that will combine with knowledge management software and real time buildings to actually bring people together when they are in the same space and have something to talk about. Engineering the chance encounters in tomorrows digital organisation will not only remove downtime but become the catalyst for an acceleration of the speed of corporate activity and human interaction. Picture Credit: Plantronics UNWIRED Research 18 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 19. AGILITY @ Work The impact of six forces on the way we work The rise of video and the death of distance Video conferencing is about to come of age. A technology There will be an increasing demand for video conferencing that has been around for many years is reaching critical mass, ‘on the pause’, especially in shared spaces such as work hubs thanks to the spread of broadband and miniature webcams and third spaces. With the capital investment and operational embedded into devices. The credit crunch-led travel bans has costs remaining high, these rooms need high utilisation to be also had a remarkable impact on the acceptance of high quality cost effective, and so more and more companies will accept video conferencing as a replacement to physical meetings, them as a shared resource. and the market is expanding, realising the notion of the ‘death of distance’. When people can effectively meet and ‘eyeball’ For many organisations with specialist spaces, from recording each other rather than jumping on airplanes, distributed work and television studios, to immersive spaces and collaboration really works. rooms, sharing capital intensive spaces provide an attractive solution. “Moving away from specialised space, so that it was At the desk, there will be a dramatic expansion in the use provided (by a third party) would be attractive. It needs to be of high definition (HD) video for ad hoc conversations and multi-purpose, multi-functional,” suggests Chris Kane at BBC collaboration sessions. HD video will become required as a Workplace. core communications tool, and with this growth will be a new realisation of the importance of workspace design as the backdrop becomes important as well as acoustics and technology. “Between 10 an 15 hours of “Moving away from specialised telepresence in an average space, so that it was provided week – if we are an example of (by a third party) would be what is coming that is what its attractive. It needs to be multi- about.” purpose, multi-functional.” Head of Workplace, Global Chris Kane, BBC Workplace Technology Company Polycom’s roundtable video conferencing unit in Microsoft’s office of the future UNWIRED Research 19 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 20. AGILITY @ Work The impact of six forces on the way we work Some Key Technologies and their potential impact Description Impact on work and the workplace IP Telephony and Softphones Using data networks and the Cost savings and changing economics of location. internet to carry voice The ‘death of distance’. Enabler of new work styles. Fixed-Mobile Convergence Mobile phones as ubiquitous New ways of communication. Consumers able to devices – always on with internet price compare with always on internet. access and IP Telephony Telepresence and Halo High quality video conferencing Death of distance, allowing reduced travel and new ‘av’ technologies for and increased collaboration. New types of Smart surfaces collaboration. collaborative project space in buildings. Mobile Internet Devices New format devices Always on portable internet tablets offering (MIDs), slates and tablets synchronous access to social networks, messaging and applications. Ultrawide Band and RFID Active location tags Used for sustainability in offices, to track people and measure real time occupancy. WiFi Wireless Ethernet Meru networks provide new single cell coverage in buildings with RF barriers on the facade. Near Field Communication Secure Payment System for Mobile Ability for operators to begin to offer micro Phones payment systems. Emergence of the keyless building. WiMAX Metropolitan wireless internet Changing nature of the high street and urban coverage plan. UNWIRED Research 20 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 21. AGILITY @ Work The impact of six forces on the way we work TRANSPORT Commuting is one of the most challenging social These numbers and forecasts point to a transport infrastructure behaviours associated with work. Affecting work- at breaking point, at capacity, with only expensive options life balance, productivity (downtime) and urban available to it for expansion and growth. And this situation planning and infrastructure, it consumes an average is repeated in most other developed urban areas around the of 80 minutes a day worldwide according to figures from the world. Universities of Sheffield and Michigan. Our motorways (freeways) are not much better. Road In Thailand, the country with the longest commuting times in delays from traffic jams or accidents have a huge and often the world, a total of 37 million hours is spent travelling to work unquantified economic impact. For example, it has been shown everyday. And in Bangkok, the average travel speed during that a 13 minute holdup on the M25 motorway (freeway) in the peak rush hour is now just 7 miles per hour. the UK following an accident equates to 18 driver days lost. But current transport planning in most major cities still But what if distributed working changed patterns of correlates transport growth to economic growth. Massive commuting and so use of transport infrastructure? Can investment plans at best aim to keep corridors at their commuting patterns be changed? Could the 1/3 of inhabitants current stress levels. For example, in the current London of ‘outer London’ that commute into the centre each day plan, population is forecast to increase to 9.1m by 2031, with instead, work locally in their community – at least for a part of employment increasing from 4.7m to 5.3m jobs. A predicted the working day? 475,000 new jobs in business and financial services will be created. According to Michele Dix, Managing Director of Transport for London, an expansion of transport capacity by 20-30% into central London is required. For example, Crossrail will move 1.5m more people. But even with all the proposed investment, she predicts, “most corridors are stressed and will continue to be.” Taking a capital city such as London, 24 million trips are made every day, 3 million people use the tube each day, there are 11 million car and motorcycle trips a day and 9.5 million people walk or cycle. A staggering 2 billion bus journeys are made each year. AVERAGE GLOBAL COMMUTE TIMES (ONE WAY) Source: SASI Group (University of Sheffield) and Mark Newman (University of Michigan). UNWIRED Research 21 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 22. AGILITY @ Work The impact of six forces on the way we work SUSTAINABILITY While not all companies are taking climate change equipment and even communication networks. According to seriously, financial necessity is increasingly driving McKinsey research, in the US alone using such tools could cut action in today’s corporations, backed by changes the commercial-building sector’s energy bill, and associated in government legislation. Companies and organisations are emissions, by nearly 30% a year. Globally, smart buildings increasingly being obliged to measure and publicly disclose could cut emissions by 1.68 metric gigatonnes a year. and report their energy use and related emissions. In time, there will be penalties for not doing so. The UK government There is a raft of government legislation being put in place to is already taking action. Under the latest Climate Change Act, encourage efficiency in real estate. One of the most important the UK has targets to cut emissions by 34% and to increase the of these in the UK is the Carbon Reduction Commitment, due amount of renewable electricity on the grid to 15%, both by to come into effect in April 2010. It will initially target around 2020 – a tall order when one considers that renewable energy 5,000 UK businesses which each consume over 6,000MWh currently accounts for just under 5% of energy production in of electricity every year. Under the terms of the proposals this country. But a raft of legislation is being implemented to each affected firm will be expected to reduce their energy help the country achieve its goal. consumption – and therefore their emissions – against a set baseline. The government has already said it is likely to Emissions from buildings are responsible for 40% of all global increase the reach of the proposals to cover around 20,000 emissions according to research from McKinsey and up to 80% companies in the not too distant future. of total greenhouse gas emissions in our cities and towns. In the UK, it’s accepted that 50% of the UK’s greenhouse gas While a requirement to cut energy use will help drive change, emissions are associated with buildings, which means that it is also evident that new workstyles can also generate it’s becoming critical that buildings, facilities management significant savings. Laptop use reduced carbon at Macquarie operations and workstyles begin to address the issue. Group by an estimated 8,000 tonnes. And many new ways of working programmes can result in a dramatic reduction of Obviously one of the key carbon/energy solutions for real estate leased or occupied. A 30% reduction of floor space buildings, especially in the commercial sector, lies in lighting creates a 30% reduction in carbon emissions. and temperature controls, as well as the technology that enables companies to track what’s happening in their Innovation in workstyles can also have further impacts. A buildings. Concepts such as advanced integrated wireless move to mobility requires new technology platforms, and lighting control systems mean that lights switch off when a many organisations take the opportunity to migrate to web room is empty, temperature controls respond to real-time based systems, data centres or cloud computing. This takes weather conditions, positioning blinds where they’re needed technology infrastructure out of buildings, into purpose to provide optimum light and shade – these help ensure built data centres that cool servers more efficiently. Without energy is only used when and where needed and won’t technology infrastructure in buildings, the power and cooling compromise the comfort of the building’s inhabitants. These requirements can be dramatically reduced, creating a greener building management systems (BMS), when working together building. with a network of sensors, can manage lights, heat, ventilation and air conditioning (HVAC) systems, fire safety and security “The most sustainable office is the “More and more companies and employees one you don’t have” want to be good corporate citizens and Barry Varcoe, Royal Bank of Scotland this may result in less car commuting for individuals. Therefore, I can envisage that you’ll go to a local drop down for corporate services and connect to the company network from there” Mark Tamburro, Nokia UNWIRED Research 22 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 23. AGILITY @ Work The impact of six forces on the way we work SIX PACK – FIT FOR BUSINESS? The six forces identified that are reshaping business can be applied to make an organisation more efficient, lean and fit. They can become catalysts that accelerate a change process that develops the corporate ‘six pack’ – an organisation that occupies perhaps 30% less property, with corresponding reductions in capex. An organisation where ‘churn costs’ are close to zero and where technology infrastructure migrates to the cloud. And the most striking realisation that fit organisations are stating is that they believe that they can grow out of recession without taking on more real estate. For the first time economic growth and expansion in head count may not result in expansion in floor space. “fit organisations are stating that they believe that they can grow out of recession without taking on more real estate” Actions for achieving a corporate ‘six pack’: 1 Real Estate Review workplace strategy and introduce activity based working and mobility. Gather data on utilisation rates and real cost of occupancy as well as churn costs. Create an aspirational vision for new workstyles. 2 Culture Introduce change management to prepare people for new workstyles. Move from management by supervision to a results based approach. Identify champions for innovation and change. 3 People Understand demographics and profile the workforce to identify the needs of different groups by age, job function and psychometric analysis. Engage with the workforce to develop opportunities for change. 4 Technology Identify key drivers and enablers of change. Then align technology to the real estate strategy and introduce the appropriate tools for new workstyles. 5 Transport Realisation that continued stress in transport corridors will require a new approach to commuting and mobility, and the adoption of polycentric thinking. 6 Sustainability Reduced quantity of commercial real estate leased, together with better management of property assets, reduced commuting and greener technology will allow targets to be met. UNWIRED Research 23 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 24. AGILITY @ Work The impact of six forces on the way we work CONCLUSIONS ACTIVITY BASED WORKING (ABW) The logical conclusion of the trends presented in this report Colin King from Nokia goes on to say that: is the wide scale adoption of activity based working, both inside and outside the corporate building. Enabled by the “A Corporate Real Estate head needs to create a Real Estate technology that has been described, people will increasingly plan that: be able to choose where to work. • Is organisationally change proof –based on key activities Heating, cooling and lighting half empty buildings will and capabilities not current organisational structures become a redundant concept as property is utilised efficiently, • Supports the business strategy in optimal way minimising emissions but also improving performance, not just of buildings but for people. An energised, dynamic • Optimises the cost of location portfolio workplace is a busy, utilised space – and not one where half • Fosters company culture, spirit and engagement – the desks and offices lie empty. aligned with ways of working/co-location/presence in the office ABW will create the experience inside buildings of using specialist spaces for specific tasks and providing people • Offers flexibility and scalability with the tools as well as the cultural and behavioural norms • Ensures best talent supply and attraction for key to adopt distributed working. This will create a new mix of capabilities space in an increasingly permeable city that people will be familiar with; a combination of ‘third space’, home working • Creates a competitive advantage over competitors and other mobile solutions such as working from clients’ - Innovation factor premises. Multiple locations, some leased or owned by a - Cost factor company, but most shared or public will begin to remove risk for businesses. There will be range of product and services that a MNC will need to consider in arriving at the right value offering for their Workspace will increasingly be just another ‘on-demand’ people.” service, adopting many of the characteristics of software as it also becomes another utility. Software as a Service (SaaS) is set to change the face of computing as people use what they need, when and pay by the minute. Workplace as a Service (WaaS) should follow the same model. These solutions and approaches de risk real estate and provide ‘flex’ for businesses that need to be as ‘nimble’ as possible. And this polycentric approach to work is set to grow. “You have to have a spread across multiple locations to de risk the business model.” Colin King, Nokia UNWIRED Research 24 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 25. AGILITY @ Work The impact of six forces on the way we work INNOVATION AT WORK FLEXING SPACE With the forecast adoption of activity based working, mobility One of the clear trends is that there are never enough meeting and distributed working, there are far too few places to work rooms in today’s corporate office. Research has found that from outside the corporate office or the home. The experience corporate decision making is being slowed down by a lack of working in a café or coffee shop is challenging – no where of available spaces for executives to meet. And as well as to plug in for power, poor acoustics and no way to print. And meeting rooms being at a premium, project space is normally so we predict a huge growth in third space, especially in new all but non-existent. destinations and the peripheries of cities, transport hubs and neighbourhoods. One vision for the future is the co-location of a corporate office with a serviced office or ‘meeting hotel’. The ability for an “In the future I see a ring of peripheral drop in spaces. But do outside operator to offer flex for a company, with the benefits they need to be 5*?” explains Simon Ward at Barclays. And the of co-location are obvious. “There is value in Regus becoming current range of ‘serviced offices’ on offer may not yet be the a permanent feature in every development,” says a Head of correct match for an increasingly mobile workforce. Real Estate at a FTSE 100 company. As Chris Hood from Hewlett Packard observes about ‘serviced This would allow the corporate to focus on its core workspace, office space’ today, “design can make a difference; it does not and all specialist and shared services could then be provided need to be expensive, but creative. Make it a place I really by an external partner, from meeting and project spaces to want to go.” Someone needs to bring into the market an video conferencing and high end collaboration space. As one environment that is lighter and cooler – not invest so much. Global Head of Real Estate reinforces, “If we were able to use specialised environments which demand intensive capital So the next generation of third space will need innovation to investment ‘on demand’, provided by a specialist operator get the positioning right for a large mobile workforce and not and shared with other organizations, this would be very just transient executives. A third space model also needs to interesting.” move away from the idea that companies want to either hire desks or meeting rooms only. “The idea of hiring a desk in a private office for a day does not ring right. I prefer to sit in a coffee shop and work. People need a technology capability that they can’t get anywhere else - for example Halo (advanced video conferencing)”, says Chris Hood at Hewlett Packard. What began as a solution for small and start-up businesses and a provision of temporary and overflow space solutions is now maturing to become a part of real estate strategy for major corporate and a central part of a distributed working model. “In the future I see a ring of “There is value in Regus “Make sure spaces have peripheral drop in spaces. But becoming a permanent video – that’s what its all do they need to be 5*?” feature in every about. We don’t do any Simon Ward, Barclays development.” conference calls webinars Head of Workplace, Global with a camera.” Technology Company Head of Workplace, Global Technology Company UNWIRED Research 25 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 26. AGILITY @ Work The impact of six forces on the way we work WHERE NEXT? The 6 forces represent the ability for a point of inflexion compasses and accelerometers. The next wave of technology for work and the workplace. A change so fundamental will introduce ‘geo-presence’ – knowing where people are in that the very basis for how and where people work will be real time, inside and outside buildings, and what their current challenged. status is…“we should use technology to tell you where you can work.” says Colin King at Nokia. And the combination of The imperative for such radical change will surely come geo-presence, augmented reality (AR) and a host of other new from sustainability – our current model of work is clearly applications will begin to remove some of the boundaries and unsustainable. But it will also be driven by demographics, challenges of place-independent working – finding a nearby as the millennials and the ‘net generation’ yet to graduate place to work, feeling belonging, connecting with colleagues, shift expectations and employers react to attract and retain knowing where people are – and trusting that they are talent. Transport in cities will drive people to find alternatives actually working when they are not being ‘watched’. as urban environments become increasing immobile, and legislation will also drive change, from working hours to taxes Development of new concepts to accommodate an on business inefficiency (for example in CO2 emissions). increasingly footloose workforce will be essential, especially as these behaviours are adopted by new job functions, not Technology will have its part to play, as catalyst and driver used to flexibility. “The model needs to continue to be fine of change, but also as enabler of forces and trends in mobile tuned and tested,” says Chris Hood at Hewlett Packard. working, collaboration and teaming that are already emerging. Management culture and change will be, as always, two of “It can only get better – more and more people will move to the biggest hurdles to overcome. But reducing the cost of distributed working,” predicts Chris Kane (BBC Workplace) real estate or ‘occupancy’ will be seen to be a clear win-win, as and this vision we believe will set the agenda for work and new work styles change the cost base for doing business. patterns of use of the city and its myriad of workspaces over the next decade. Innovation will be everywhere. Mobile devices not only have global positioning systems (GPS) built in but, now, also digital UNWIRED Research 26 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 27. AGILITY @ Work The impact of six forces on the way we work APPENDICES Our Research Thanks John de Lucy The British Library Head of Estates Chris Hood HP Head of Workplace Daniel Johnson Accenture Global Director, CRE Workplace Ronen Journo Cisco Head of Workplace EMEA Chris Kane BBC Head of Workplace John Killey Citigroup Managing Director Citi Realty Services Colin King Nokia Global Head Real Estate Richard Paver BP Global Head of Real Estate Mark Tamburro Nokia Global Head Real Estate Barry Varcoe Royal Bank of Scotland Head of Workplace Simon Ward Barclays Global Head Real Estate About the Authors Philip Ross Mark Dixon Philip is CEO of the Cordless Group, specialists in the impact of Chief executive and founder, Mark Dixon is one of Europe’s best- emerging technology on people and their behaviour in the built known entrepreneurs. Since founding Regus in Brussels, Belgium environment. in 1989, he has achieved a formidable reputation for leadership and innovation. Prior to Regus he established businesses in the He has worked with organisations such as Ernst & Young, Allen & retail and wholesale food industry. Recipient of several awards for Overy, GlaxoSmithKline, Cisco, McKinsey & Co, Nottingham City enterprise, Dixon has revolutionised the way business approaches Council, PriceWaterhouseCoopers, Royal Bank of Scotland, Jones its property needs with his vision of the future of work. Lang LaSalle and Ericsson on future concepts based on emerging technologies. Philip has spoken at conferences around the world including the Wall Street Journal Europe CEO Forum on Converging Technologies, alt. office in the USA and Corenet’s Global Summits in Beijing, Auckland, Orlando, San Diego and Melbourne. In 1994 he wrote and published The Cordless Office Report and founded Cordless Group. He has written three books on the future of cities, work and workplace: The Creative Office, The 21st Century Office and Space to Work (all co-authored with Jeremy Myerson). He has also contributed to a number of other books including the Corporate Fool and the Responsible Workplace. UNWIRED Research 27 © Unwired Ventures Ltd, 2010 All Rights Reserved
  • 28. AGILITY @ Work The impact of six forces on the way we work About Unwired About Regus work • workplace • technology • innovation The Regus Group (LSE:RGU) is the world’s leading global provider of innovative workspace solutions, with products and Unwired is a specialist in the future of work. Through research, services ranging from fully equipped offices to professional forecasting, publishing and events it predicts the way that meeting rooms, business lounges and the world’s largest our a patterns of work will change as a result of political, network of video communication studios. Regus delivers a socioeconomic and technological trends. new way to work, whether it’s from home, on the road or from an office. Clients such as Google, GlaxoSmithKline, and Nokia Unwired was founded in 1996, and has published over 50 join thousands of growing small and medium businesses that research reports, including Creative Places for the BBC, benefit from outsourcing their office and workplace needs to the New Millennials for Nokia and Rio Tinto and Workplace Regus, allowing them to focus on their core business. Sustainability. Over 500,000 clients a day benefit from Regus facilities spread Its events include the WorkTech conferences held in London, across a global footprint of 1,000 locations in 450 cities and New York, Shanghai and Amsterdam. 78 countries, which allow individuals and companies to work wherever, however and whenever they want to. For further information visit: www.unwired.eu.com For more information please visit: www.regus.co.uk Published by Unwired Ventures Ltd Unwired Ventures Ltd, its employees, the advisory board and the The Innovation Centre sponsors of Unwired are not to be held responsible for any losses, 7 St John’s Mews expenses or any claims arising out of any reliance on the information St John’s Road contained in this publication. Since most of the information in this publication has been provided by third parties it requires further Hampton Wick verification. In every instance an application is made it must be Kingston upon Thames independently verified and applied to those individual circumstances KT1 4AN UK by a suitably qualified individual. Telephone +44 (0) 20 8977 8920 The very nature of the information contained in this publication Facsimile +44 (0) 20 8977 8970 ensures that at the time of publication it may be outdated or Email info@unwired.eu.com superseded. No copyright or intellectual property is transferred or Web www.unwired.eu.com should be assumed and all images, photographs and trademarks remain the property of their respective owners. UNWIRED is a registered trademark of Unwired Ventures Ltd. No rights exist to reproduce this publication in any form or media in part or whole. UNWIRED Research 28 © Unwired Ventures Ltd, 2010 All Rights Reserved