Planning for Productivity
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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.
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Planning for Productivity
- 1. Planning for Productivity Nigel Oseland PhD CPsychol www.workplaceunlimited.com
- 2. Property Cost v Productivity Benefits Speed Fees Sales Revenue Cost Output
- 3. Staff:Property Costs – 2005 6.5% 4.8% Salaries 85.0% Building Construction Maintenance, M&E, Furnishings & Furniture, Depreciation BCO (2005) The Impact of Office Design on Business Performance.
- 4. Staff:Property Costs – 1965 8.0% 6.0% Salaries 86.0% Building Construction Maintenance & Operation National Bureau of Standards (1965) Study of Federal Office Buildings
- 5. ASHRAE, NEMA et al – 1990s
- 6. Productivity Literature Review 0.6% - 160% range 200+ papers 75 credible Oseland & Burton (2013) Building the business case, Facilities Management 20(08). 135 quantified
- 7. Meta-analysis Weighting Research Environment Performance Metric Activity Time
- 8. Predicted Productivity Benefits Lower Upper Lighting Acoustics Lower Upper 0.1-2.0% 0.3-2.1% 0.2-1.7% Control Furniture 0.0-1.9% Temperature 0.2-1.7% Ventilation/IAQ 1.0-2.1% 1.7-4.4% Space 1.2-3.2% General/Mixed
- 9. Multiple Productivity Benefits PO = P1 + ⅔ P2 + ⅓ P3 … Where: PO = the overall % performance change P1 = % performance change due to 1st environmental factor P2 = % performance change due to 2nd environmental factor P3 = % performance change due to 3rd environmental factor
- 10. Contributing Factors Environmental Conditions Temperature, Air Quality, Ventilation, Lighting , Acoustics Business Factors Office Facilities Marketing, Advertising, Market Demand, Economy Furniture, Space Planning, IT, Storage, Meeting Space Productivity & Performance Organisational Factors Psychophysical Factors Reward, Culture, Management, Recognition, Prospects Comfort, Noise, Privacy. Aesthetics, Colour, Ergonomics Personal Factors Experience, Training, Pride, Personality, Motivation
- 11. Confounding Factors Business Metrics Relevance to Business Revenue, profit, shares HR Metrics Absenteeism, retain, overtime Team Targets Fees, utilisation, sales, clients Work Tasks Calls, claims, deadlines, targets Individual Tasks Search, maths, errors, speed Extraneous Factors
- 12. The Lawyer UK 200 Survey Top 10 sqft/person Bottom 10 sqft/person Mean = 206 sqft/person Allen & Overy (1.7M sqft, £1.18Bn) Minster Law (70K sqft, £104M) www.thelawyer.com/good-offices/1014802.article
- 13. The Lawyer UK 200 Survey 2,500 20,000 2,000 15,000 1,500 10,000 1,000 5,000 500 0 0 Minster Law Allen & Overy Revenue – £ per sqft TCO – £ per person 25,000
- 14. Retail Metrics – Apple
- 15. Retail Metrics – Shopping Centres 500 450 Sales per sq ft 400 350 300 Cool Springs 250 River Gate 200 Hickory Hollow Governor's Square 150 All Malls 100 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 CBL & Associates Tennessee malls Year
- 16. Conclusion 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