This document summarizes the approach taken by Apollo Education Group's Real Estate and Facilities team to create a balanced business case for implementing a flexible workplace strategy. The team considered both workplace cost metrics and human capital outcomes. They analyzed data from 700 existing telecommuting employees and found positive impacts on employee engagement, productivity, turnover and absenteeism. Extrapolating these results, the business case estimated potential savings and benefits from a flexible workplace pilot. This balanced approach demonstrated both cost savings and human capital benefits, gaining leadership support for the new workplace program.

1. 16 the LEADER | March/April 2014
COVER STORY
to Create a Balanced Business Case for
Using Human Capital
B Y A N I T A K A M O U R I , P h. D . a n d A M A N D A A V I L E S
Open, collaborative areas (branded as “Connect”) address the need for
impromptu meetings and also provide a standing-height work area.

2. A
s more companies adopt fexible workplace strategies,
there has been increased interest in their potential
impacts on human capital outcomes. However, in
contrast to projected cost savings due to changes in
workspace utilization, the projected benefts of new workplace
strategies on human capital outcomes are not as easily quanti-
fed. To support acceptance of fexible workplace strategies, the
potential benefts of workplace design for employee engagement,
performance and collaboration need to be made as salient to
business decision makers as workplace cost considerations. Tis
article describes an approach taken by Apollo Education Group’s
Real Estate and Facilities (REF) team to create a balanced busi-
ness case for implementing a fexible workplace strategy that
includes both workplace and human capital metrics.
Apollo’s ‘MyWorkplace’ Program
Apollo Education Group, Inc. is one of the world’s largest private
education providers and has been in the education business for
approximately 40 years. In 2011, REF initiated consolidation of its
Phoenix-based corporate portfolio in an efort to reduce vacancy
rates and space costs. As part of this efort, internal research was
conducted with about 12,000 Phoenix-based employees that sug-
gested the need for the workplace to support greater fexibility, col-
laborative work practices and employee engagement.
In response, REF developed a new fexible workplace program
called ‘MyWorkplace’ as an integral part of an overall portfolio
optimization plan by integrating industry best practices in work-
space, technology, human resources and fexible/remote work
practices. It was intended to meet both cost savings and business
goals by enabling a more productive and engaging workplace
experience for employees.
March/April 2014 | the LEADER 17
Workplace Change
Metrics Exterior of Apollo Education Group
headquarters in Phoenix, Ariz.

3. 18 the LEADER | March/April 2014
data-based and cost efective (i.e., not require costly changes
or investment in a pilot). REF faced the challenge of creating
a data-based business case prior to implementing the program
and without conducting a pilot.
After exploring the options, it was decided that the best way
to build the business case would be to capitalize on naturally
occurring fexible/remote work practices that already existed
within the workforce. Fortunately, at the time the business
case was being developed, Apollo had approximately 700
employees participating in a legacy telework program. REF
believed that an evaluation of this group could provide an
indication of the potential impact that might be expected from
the MyWorkplace program while satisfying the goals of being
Apollo-specifc and data-based.
Te next step involved quantifying and measuring the Success
Criteria for the legacy telework participants as well as for a
matched group of non-telework employees. A rigorous data-
gathering approach was used to isolate the impacts of participa-
tion from confounding factors, such as participant selection,
and changes in economic conditions and business processes
Creating a Balanced Business Case Approach
Te frst step in creating a compelling business case for the
MyWorkplace program involved meeting with senior stakeholders
from across the organization to identify their criteria for business
success. While acknowledging the potential cost savings of fexible
workplace strategies, the potential risk to employee productivity or
collaboration was a key issue, since any decline in business perfor-
mance could quickly outweigh the fnancial value of workspace cost
reductions. Te resulting Success Criteria clarifed that both human
capital metrics and workplace cost metrics need to be included in any
evaluation of the fexible workspace strategy. Next, using a Balanced
Scorecard framework as a foundation, a Balanced Business Case
model was created that incorporated four measurement perspec-
tives based on critical human capital and workplace Success Criteria:
Efectiveness, Employee, Environmental and Efciency.
Building the Business Case
Although industry benchmarks and fexible workplace research
data were available, discussions with business leaders indicated
that a convincing business case needed to be Apollo-specifc,
Project Lounges provide an informal environment to spark creativity and innovation.
They are equipped with e-Beam© technology, writeable walls and mobile furniture.
Focus rooms are one of the most highly used spaces in the MyWorkplace environment,
providing employees with drop-in space for privacy and quiet when needed.
MyWorkplace Program
• New workplace
design standards
• Hoteling space in
satellite Apollo buildings
closer to home
• On-campus hoteling
Workspace Technology
Human
Resources
Flexible
Work
Practices
MyWorkplace
Success
• Offce-in-a-box
• Virtual desktop
• Follow-me phones
• Website portal for
tools and support
anytime, anywhere
• Suitability assessment
• Change management
program
• Manager and
employee training
• Management tools
via website portal
• Part-time or Full-time
Work at Home
• Mobile, Virtual and
Flexible Work Options
• Work from non-dedicated
workstations

4. Business Case approach helped create momentum for the pro-
gram and secure support for both the new workplace standards
and work arrangement fexibility options.
Te resulting MyWorkplace implementation captured the
principle design goals of the MyWorkplace Program and
included a mix of both private and collaborative workspaces.
May/June 2013 | THE LEADER 13
over time. To create the most meaningful business case, REF
worked with each business unit to identify how they measure
and track work productivity. Tis helped focus data gathering
on the most valid and reliable, current and historical data.
Quantifying Business Case Benefts
Once the data were collected, a systematic evaluation was under-
taken to determine the impact of the legacy telework program
in each of the four business case perspectives. Data analyses
revealed that legacy telework participants were signifcantly more
engaged, more satisfed, less likely to leave the company, and
more productive than before telework. Te same results were also
found when comparing telework participants to the matching
non-telework employees. In addition to the positive human capi-
tal impacts, cost savings from reduced real estate footprint and
emissions reduction from commute mitigation also were found.
Because these results were specifc to the legacy telework
program, they needed to be extrapolated to the MyWorkplace
program. Te potential impact of a MyWorkplace pilot imple-
mentation with 700 pilot participants was estimated (see table,
top right) using both tangible and intangible data, and entered
into a cost/beneft analysis:
1. Tangible Workplace Metrics. Estimated benefts associ-
ated with seat savings, cost savings and environmental impacts
and the expected investments due to space changes, new tech-
nology and training/change management were extrapolated
using the expected number of program participants. Te esti-
mated workspace savings attributable to MyWorkplace partici-
pation produced a positive ROI and under one-year payback
relative to up-front investment costs.
2. Tangible Human Capital Metrics. Several human capi-
tal metrics could be cost-valued using salary and replacement
cost data, based on the number of expected MyWorkplace
program participants. Financial estimates for these measures
showed that fexible workplace strategy investments can be
ofset by not only workspace savings, but also by reduced vol-
untary turnover, lower absenteeism and greater productivity
associated with participation.
3. Intangible Human Capital Metrics. Several human capi-
tal impacts, such as employee engagement, were not able to
be directly valued in terms of dollars so they were not part of
the cost/beneft analyses. However, they were still presented as
critical components of the Balanced Business Case because they
represented important Stakeholder Success Criteria, were driv-
ers of other tangible metrics (for example, employee engage-
ment as a predictor of productivity), and represented important
organizational goals.
Building Organizational Support
Te Balanced Business Case approach demonstrated that a
strong argument for workplace fexibility can be created – one
that emphasizes both real estate cost savings and the human
capital beneft of fexible workplace strategies. Furthermore,
being able to quantify and extrapolate business case metrics
proved to be invaluable to REF in soliciting organizational
support for the MyWorkplace program. Overall, the Balanced
March/April 2014 | the LEADER 19
Balanced Business Case Success Criteria
Quantifying Business Case Metrics
HumanCapital
Metrics
Workplace
Metrics
Effectiveness
¶ Productivity
¶ Work Performance
¶ Teamwork and collaboration
Employee
¶ Engagement
¶ Retention
¶ Attendance
¶ Satisfaction
¶ Work/Non-work Balance
¶ Sense of Community
Effciency
¶ Workspace Cost Savings
¶ Employee Commute-related
Expense Savings
Environmental
¶ Commute Avoidance
¶ CO2 Emissions
HumanCapital
Metrics
Workplace
Metrics
Effectiveness
¶ 34% more productive on
average across 16 objective work
performance indicators
¶ 49 fewer minutes/ day (200
hours/year) being distracted and
interrupted
¶ 60% of avoided commute time
(120 hours/year) is reallocated to
additional work hours
¶ 79% of managers report
positive impact on workgroup
productivity/ production
¶ 84% of managers report neutral
or positive impact on teamwork
and cohesion
Employee
¶ 12% higher Employee
Engagement
¶ 56% lower voluntary
turnover rate
¶ 88% reduction in unapproved
absences and 100% reduction in
tardiness events
¶ 94% satisfaction for partici-
pants and 77% for managers
¶ 34% higher Work/Non-Work
Balance
¶ 98% of participants and 87%
of non-participants are satisfed
with the spirit of cooperation
and teamwork
Effciency
¶ 500 fewer seats required
¶ $3M annual savings from rent
and capex depreciation
¶ 99% of participants report
commute-related expense savings
Environmental
¶ 7.7M commute miles per year
avoided
¶ 3.1M Kg fewer CO2 emissions
per year (commute-related
carbon emissions)
Note: Results are based on comparisons before and after participation, and between participants
and matching non-participants.

5. 20 the LEADER | March/April 2014
In summary, the Balanced Business Case approach was suc-
cessful in generating the leadership support necessary for the
MyWorkplace program’s adoption. It also introduced metrics
that can be used over the lifecycle of the program creating the
ability to directly evaluate whether the project is progressing as
intended. As REF works toward improving its physical foot-
print to support business success, these new perspectives and
approaches will continue help drive the long-term success of
Apollo’s new workplace strategies.
Driving Workplace Change
Creating a Balanced Business Case with an emphasis on human
capital metrics encouraged REF to assume the role of a strate-
gic partner that supports corporate real estate and business suc-
cess. What were the major factors that supported this new role?
• Aligning CRE Goals with Business Goals
REF had to change its mindset and think beyond traditional
workplace metrics and adopt new measures of business success.
It became important to speak the same language as the business
and to demonstrate that business goals drive REF decisions.
• Taking Time to Build a Compelling Case
Rather than pushing forward to achieve only workspace
goals, REF took the time to gather evidence and build a case
that demonstrated the business efcacy of the solution. Tis
proactive, measured approach increased leadership’s comfort
level with the program.
• Measuring Work Performance and Productivity
Having an operational defnition of work performance or pro-
ductivity is critical to efective implementation of fexible work-
place strategies. If the business does not defne performance when
people are in the ofce, performance management of people work-
ing remotely and evaluation of the new program will be difcult.
• Creating Cross-Functional Partnerships
Taking the time to collaborate with HR and IT partners
on business case data collection was instrumental in gathering
functional leadership support for MyWorkplace. Te involve-
ment of HR and IT partners in creating the Balanced Business
Case helped secure investment commitments from functional
leadership that were needed for the future success and scalabil-
ity of the new workplace strategy.
• Building Awareness Early and Often
Findings such as those reported in the MyWorkplace business
case can challenge some of the perceived barriers to workforce
fexibility. Data demonstrating the human capital benefts of new
workplace strategies can be used to create “success stories” and
support change management eforts within organizations who
want to introduce or expand fexible workplace initiatives.
About the Authors
To read this case study in its entirety, please search for this title on
our Knowledge Center Online.
Balanced Business Case: Using Human Capital Metrics to Drive
Workplace Change
Anita Kamouri, Ph.D., is Vice President and co-
founder at Iometrics, Inc. She has been working with
clients to design, implement and evaluate alternative
workplace strategies for over 15 years.
Amanda Aviles is Apollo’s Director of Real Estate
Strategy and Planning. Apollo Education Group is
one of the world’s largest private education providers.
Amanda is the Program Manager of the company’s
MyWorkplace Program.
Valuing the Tangible Human Capital Impacts
Perspective Business Case Results Estimated Financial Value (USD) for 700 MyWorkplace Participants
Effectiveness 34% more productive on business performance metrics $11M value of improved performance/year
Effectiveness 49 fewer minutes/day (200 hours/year) being distracted and interrupted $3.2M value of productivity/year saved
Effectiveness
60% of avoided commute time (120 hours/year) is reallocated to
additional work hours
$800K value of productivity/year gained (salaried participants)
Employee 56% lower levels of voluntary turnover $2.1M in replacement hiring cost avoidance
Employee 88% reduction in unapproved absences $500K value of productive work time/year gained