VWork: Measuring the benefits of agility at work

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Measuring the benefits of agility at work Bob Gaudreau and Philip Ross

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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

Transcript of VWork: Measuring the benefits of agility at work

  • 1. Measuring the benefits of agility at work Bob Gaudreau and Philip Ross

2. 3. The Berne Summit

  • Barclays, BBC, Vodafone, BCG, BSkyB, Cisco, JP Morgan, Dell, Kirkland & Ellis, GlaxoSmithKline, Oracle, Shire, Standard Chartered, Telstra, Thomson Reuters, Yell.com
  • 243,000,000 square feet

4. The Unwork.com Survey Size of organization Geography Job function 5. 6. 7. Defining a value for Corporate Agility

  • The 3 Vs
  • V irtual how are we working?
  • ad V antage what are the benefits to business?
  • V alue how do we monetise it?

8. 9. 10.

  • That long standing symbol of the business world, the Corporate HQ, will soon be no more.
  • Anil Gupta, professor of strategy & organisation
  • Smith School of Business, University of Maryland
  • The concept of a corporate HQ will change from a physical location to a virtual network

11. 12. work

  • Noun or Verb?

13. @work

  • 63.5% still commute to the office four or five days a week.
  • Only 1.6% work from home(large employers)

14. If city populations are set to double in the next 40 years why send people into immobile business districts? 15. 16. Commuting Today going local

  • 32.1% spend 41 minutes to an hour
  • 27.4% over an hour
  • 59.5% are commuting for 41 minutes or more each way every day
  • BUT
  • Only 12.3% of people want to work from home

17. 18. Free Agent Nation

  • 40% of the US workforce will comprise contingent workers by 2020

19. 20. 21. Collaboration and Virtual Presence

  • Pathological collaboration and the rise
  • of the Jelly bean

22. 23. Where Good Ideas Come From

  • Most of the significant inventions of the last two centuries have NOT come from flashes of inspiration but from communal, multilayered endeavour.
  • innovation springs out of the adjacent possible the most inventive places are hives of activity where people get together and share ideas.

24.

  • From Noun to Verb
  • 59% of people now feel that they have the right technology to be able to work from anywhere
  • 62.5% have rolled out a new ways of working programme (respondents from large enterprises)

25. 26.

  • The business Drivers that will change the way your organisation works

27. Digital Immigrants and Natives

  • 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

28. Large Employers

  • 58.2% predict a decrease in the need for office space as a result of future workstyles.
  • Only 7% predict an increase
  • Most believe the office will become a place for occasional use (51.2%)

29. 30. Measuring Agility: Company ABC

  • 1,500 employees
  • City of London office
  • 15-year lease
  • 50,000 square feet
  • Cost of the building per annum $20m (rent, rates, utilities, operations)
  • Total cost per square foot per annum is $133
  • Over the 15 years, the lease represents a $300m liability or $200,000 per head.

31. ABCs office today 32.

  • 1,150 desks
  • Hot desking has already been introduced at sharing ratio 1:2:1
  • Leaving 632 desks unused per day.

55% of desks are not being used 45% typical office utilisation 33. The Agility Dividend for Company ABC... is between $6m to $11m per annum

  • (based on average cost per desk per annum $17,200).
  • Cost of unused space $11m per annum

34. How do we monetise agility?

  • The Agility Dividend
    • p (f+o) + c (t+c) + d (s)

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) 35. Why isnt everyone doing it? 36. Agility in Action

  • Yell
  • 700 employees
  • Closed 18 offices
  • Driver was cost
  • GB1.5m pa saving / 40%
  • Access to 153 Regus centres vs 18 before
  • 10-15% productivity increase
  • Transitioned in one month
  • Watford to London example
  • 7-Eleven
  • Driver cultural change 1 st ,cost 2 nd
  • 1000 employees transitioned
  • Retail mgmt and franchise sales
  • Closed 36 out of 44 offices
  • Left 8 hubs open
  • US$8m pa saving
  • Access to 450 Regus centres
  • Meeting rooms
  • Day offices

membership v ownership 37. Buy your own

  • 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
  • Examples of other models -BYOC Buy your own computer
  • Citrix In 2009, Citrix gave staff a budget of $2,100 to BYO computer.It has saved 15-20% of costs
  • From BYOC to BYO Workplace Dawn of user-chooser
  • Can we move to a vision of provisioning work