Planning for

ProductivityNigel Oseland PhD CPsychol

www.workplaceunlimited.com

Property Cost v Productivity Benefits

CostOutput

Sales

Revenue

Fees

Speed

Staff:Property Costs – 2005

85.0%

6.5%4.8%

Salaries

Building Construction

Maintenance, M&E, Furnishings & Furniture, Depreciation

BCO (2005) The Impact of Office Design on Business Performance.

Staff:Property Costs – 1965

86.0%

8.0%6.0%

Salaries

Building Construction

Maintenance & Operation

National Bureau of Standards (1965) Study of Federal Office Buildings

ASHRAE, NEMA et al – 1990s

Productivity Literature Review

0.6% - 160%range

200+papers

75credible

135quantified

Oseland & Burton (2013) Building the business case, Facilities Management 20(08).

Meta-analysis Weighting

Research Environment

PerformanceMetric

ActivityTime

Predicted Productivity Benefits

Control

Furniture

Space

General/Mixed

Lighting

Acoustics

Temperature

Ventilation/IAQ

0.1-2.0%

0.2-1.7%

0.0-1.9%

0.2-1.7%

0.3-2.1%

1.0-2.1%

1.7-4.4%

1.2-3.2%

Lower Upper Lower Upper

Multiple Productivity Benefits

PO = P1 + ⅔ P2 + ⅓ P3 …

Where: PO = the overall % performance changeP1 = % performance change due to 1st environmental factor

P2 = % performance change due to 2nd environmental factor

P3 = % performance change due to 3rd environmental factor

Contributing Factors

Environmental ConditionsTemperature, Air Quality,

Ventilation, Lighting , Acoustics

Psychophysical FactorsComfort, Noise, Privacy.

Aesthetics, Colour, Ergonomics

Organisational FactorsReward, Culture, Management,

Recognition, Prospects

Office FacilitiesFurniture, Space Planning, IT,

Storage, Meeting Space

Personal FactorsExperience, Training, Pride,

Personality, Motivation

Productivity & Performance

Business FactorsMarketing, Advertising,

Market Demand, Economy

Confounding Factors

Individual TasksSearch, maths, errors, speed

Work TasksCalls, claims, deadlines, targets

Team TargetsFees, utilisation, sales, clients

HR MetricsAbsenteeism, retain, overtime

Business MetricsRevenue, profit, shares

Rel

evan

ce t

o B

usi

nes

s

Extraneous Factors

The Lawyer UK 200 Survey

Bottom 10

sqft/person

Minster Law(70K sqft, £104M)

Top 10

sqft/person

Allen & Overy(1.7M sqft, £1.18Bn)

www.thelawyer.com/good-offices/1014802.article

Mean = 206 sqft/person

The Lawyer UK 200 Survey

0

5,000

10,000

15,000

20,000

25,000

Minster Law Allen & Overy

2,500

2,000

1,500

1,000

500

0

Rev

enu

e –

£ p

er s

qft

TCO

–£

per

per

son

Retail Metrics – Apple

Retail Metrics – Shopping Centres

100

150

200

250

300

350

400

450

500

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Sale

s p

er

sq f

t

Year

Cool Springs

River Gate

Hickory Hollow

Governor's Square

All Malls

CBL & Associates Tennessee malls

1. Productivity can be measured

2. Workplace design does affect productivity

3. Business case for workplace should include impact on business performance not just cost

4. Ignoring productivity effects is irresponsible

5. Use business metrics like Revenue per sqft

6. Track performance over time and locations

Conclusion

Thank You

Nigel Oselandwww.workplaceunlimited.com

www.workplaceunlimited.blogspot.co.uk