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VWork: Measuring the benefits of agility at work

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Given at WorkTech New York on May 18, 2011 by Bob Gaudreau, Executive Vice-President Sales & Marketing at Regus.
Read the full report: http://slidesha.re/jG2yQM
About Regus: http://www.regus.com/?utm_campaign=slideshare

Publicada em: Negócios, Carreiras
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VWork: Measuring the benefits of agility at work

  1. 1. Measuring the benefits of agility at work Bob Gaudreau and Philip Ross
  2. 3. The Berne Summit <ul><li>Barclays, BBC, Vodafone, BCG, BSkyB, Cisco, JP Morgan, Dell, Kirkland & Ellis, GlaxoSmithKline, Oracle, Shire, Standard Chartered, Telstra, Thomson Reuters, Yell.com </li></ul><ul><li>243,000,000 square feet </li></ul>
  3. 4. The Unwork.com Survey Size of organization Geography Job function
  4. 7. Defining a value for Corporate Agility <ul><li>The 3 V’s </li></ul><ul><li>V irtual how are we working? </li></ul><ul><li>ad V antage what are the benefits to business? </li></ul><ul><li>V alue how do we monetise it? </li></ul>
  5. 10. <ul><li>“ That long standing symbol of the business world, the Corporate HQ, will soon be no more.” </li></ul><ul><li>Anil Gupta, professor of strategy & organisation </li></ul><ul><li>Smith School of Business, University of Maryland </li></ul><ul><li>“ The concept of a corporate HQ will change from a physical location to a virtual network” </li></ul>
  6. 12. work <ul><li>Noun or Verb? </li></ul>
  7. 13. @work <ul><li>63.5% still commute to the office four or five days a week. </li></ul><ul><li>Only 1.6% work from home (large employers) </li></ul>
  8. 14. If city populations are set to double in the next 40 years why send people into immobile business districts?
  9. 16. Commuting Today – going local <ul><li>32.1% spend 41 minutes to an hour </li></ul><ul><li>27.4% over an hour </li></ul><ul><li>59.5% are commuting for 41 minutes or more each way every day </li></ul><ul><li>BUT </li></ul><ul><li>Only 12.3% of people want to work from home… </li></ul>
  10. 18. Free Agent Nation <ul><li>40% of the US workforce will comprise ‘contingent workers’ by 2020 </li></ul>
  11. 21. Collaboration and Virtual Presence <ul><li>Pathological collaboration and the rise </li></ul><ul><li>of the Jelly bean </li></ul>
  12. 23. Where Good Ideas Come From <ul><li>Most of the significant inventions of the last two centuries have NOT come from flashes of inspiration but from communal, multilayered endeavour. </li></ul><ul><li>“ innovation springs out of the ‘adjacent possible’ – the most inventive places are hives of activity where people get together and share ideas.” </li></ul>
  13. 24. <ul><li>From Noun to Verb </li></ul><ul><li>59% of people now feel that they have the right technology to be able to work from anywhere </li></ul><ul><li>62.5% have rolled out a new ways of working programme (respondents from large enterprises) </li></ul>
  14. 26. <ul><li>The business Drivers that will change the way your organisation works </li></ul>
  15. 27. Digital Immigrants and Natives <ul><li>70.9% of respondents believe younger workers - the millennials and those still at school – will be more accepting of virtual working and reject the traditional office… only 8.9% felt they would carry on working in the workplace of today </li></ul>
  16. 28. Large Employers… <ul><li>58.2% predict a decrease in the need for office space as a result of future workstyles. </li></ul><ul><li>Only 7% predict an increase </li></ul><ul><li>Most believe the office will become a place for occasional use (51.2%) </li></ul>
  17. 30. Measuring Agility: Company ABC <ul><li>1,500 employees </li></ul><ul><li>City of London office </li></ul><ul><li>15-year lease </li></ul><ul><li>50,000 square feet </li></ul><ul><li>Cost of the building per annum $20m (rent, rates, utilities, operations) </li></ul><ul><li>Total cost per square foot per annum is $133 </li></ul><ul><li>Over the 15 years, the lease represents a $300m liability or $200,000 per head. </li></ul>
  18. 31. ABC’s office today
  19. 32. <ul><li>1,150 desks </li></ul><ul><li>Hot desking has already been introduced at sharing ratio 1:2:1 </li></ul><ul><li>Leaving 632 desks unused per day. </li></ul>55% of desks are not being used 45% typical office utilisation
  20. 33. The Agility Dividend for Company ABC... …is between $6m to $11m per annum <ul><li>(based on average cost per desk per annum $17,200). </li></ul><ul><li>Cost of unused space $11m per annum </li></ul>
  21. 34. How do we monetise agility? <ul><li>The Agility Dividend </li></ul><ul><ul><li>p (f+o) + c (t+c) + d (s) </li></ul></ul>  Efficiency dividend property (p) fixed (f) and operational (o) cost savings Happiness dividend commuting (c) time (t) and cost (c) savings Productivity dividend output (d) employee/salary costs (s)
  22. 35. Why isn’t everyone doing it?
  23. 36. Agility in Action… <ul><li>Yell </li></ul><ul><li>700 employees </li></ul><ul><li>Closed 18 offices </li></ul><ul><li>Driver was cost </li></ul><ul><li>GB£1.5m pa saving / 40% </li></ul><ul><li>Access to 153 Regus centres vs 18 before </li></ul><ul><li>10-15% productivity increase </li></ul><ul><li>Transitioned in one month </li></ul><ul><li>Watford to London example </li></ul><ul><li>7-Eleven </li></ul><ul><li>Driver – cultural change 1 st , cost 2 nd </li></ul><ul><li>1000 employees transitioned </li></ul><ul><li>Retail mgmt and franchise sales </li></ul><ul><li>Closed 36 out of 44 offices </li></ul><ul><li>Left 8 hubs open </li></ul><ul><li>US$8m pa saving </li></ul><ul><li>Access to 450 Regus centres </li></ul><ul><li>Meeting rooms </li></ul><ul><li>Day offices </li></ul>… membership v ownership
  24. 37. Buy your own… <ul><li>Agility is not just about cost reduction through real estate. Monetising agility moves the measure of costs per person from fixed bricks & mortar, to the individual </li></ul><ul><li>Examples of other models - BYOC – Buy your own computer </li></ul><ul><li>Citrix – In 2009, Citrix gave staff a budget of $2,100 to BYO computer. It has saved 15-20% of costs </li></ul><ul><li>From BYOC to BYO Workplace – Dawn of ‘user-chooser’ </li></ul><ul><li>Can we move to a vision of ‘provisioning work’ </li></ul>

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