Planning for Productivity
17
Planning for Productivity Nigel Oseland PhD CPsychol www.workplaceunlimited.com
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Presentation by Nigel Oseland, Workplace Unlimited, to the WorkPlace Trends Conference 2013 in London For years we have been chasing the Holy Grail of the link between workplace and productivity - it's time to move on. Measures of productivity exist and research shows there is a proven relationship with workplace design and operation. Not having a generic measure of productivity is not a sufficient reason to ignore it in the business case for workplace projects. Workplace design has come of age.
Transcript of Planning for Productivity
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
