Mobility Strategy, Carbon Footprint and the Bottom Line

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CoreNet Global Houston Chapter Meeting April 14, 2009 Chris Hood, Hewlett Packard

Transcript of Mobility Strategy, Carbon Footprint and the Bottom Line

Mobility can dramatically lower your carbon Footprint

By adjusting our RE policy to support the mobile work style we can:

–Dramatically reducethe carbon footprint of office work

–Enhance organizationalcapability

–Fund the Greening of our office buildings

–Still come out ahead on the balance sheet

In the beginning “Home” was next to “Work”

Efficiency drove Work to separate from Home.

Cities pulled people in to Work…

For the first time in human history more people live in cities.

The office emergesarranged like a factory

It becomes part of popular culture…and always well used

The age of abundance came and went

Globalization

Competitive cost pressures

Global Warming

Continuity of operations

Business partnerships

Group work

Mobile technology

Worker mobility

Energy costs

% Heads-down work

Real estate / FTE

Domestic talent pool

2008

This is a wake up call!

Average office space is dramatically under utilized.

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8:00 8:30 9:00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30

An Average of 55% Under Utilization!

Something has happened…

Mobility happened

A majority of organizations & people today are surprised by the high levels of mobility they are experiencing.

Now organizations are wondering where everyone is…

We still love the idea of our own desk.

Sometimes individuals are necessarily tied to a particular location.

...but more often than not the needs are very simple!

Sometimes dedicated space can become a burden.

...and it is often empty.

Utilization is the key!

- Drives technology improvements- Drives policy improvements- Drives increased awareness- Reduces Commutes- Reduces Energy Consumption- Reduces Office Space per Employee- Reduces Carbon per Employee

Bracknell’s Transformation

> Underutilized dedicated space

> No certainty that the supposed virtue of face-to-face collaboration actually occurs

> Legacy filing (often hard copy)

> Offices without a pulse

Before

> Busy, high-energy, highly utilized space with free-address work spaces

> Employees are enabled to work anywhere

> Better planned, and more flexible interaction

After

> Smaller footprint

> More discipline in filing/ sharing information

> A wider range of task settings

After

Employee Reaction

Case Study - Sun Mobility

Sun Employee Satisfaction

Sun Flexible Employees

Sun Flexible Employees

Case Study - HP Employees

HP Employee Engagement

More frequent use of collaborative technologies correlates with higher levels of engagement

– but use of “sophisticated” collaborative technologies is very limited

HP Survey Results

Employees who spend more time mobile are just as engaged as dedicated desk workers

HP Survey Results

Hewlett Packard employees, on average, are highly engaged

(Score of 3.82 out of 5)

HP Survey Results

‘Future of Work’ SurveyJune 2007

The level of densification of the workplace has little impact on engagement

HP Survey Results

Productivity Impacts

62% found home the most productive workplace

48% claim to work harder now that they are mobile

24% felt that their main office was the most productive work location

The Voice of Mobile WorkersPractices, Relationships and Components of Effective WorkplacesKnoll Workforce ResearchGlobal Business Division 2007

Mobility drives organizational improvement

The Voice of Mobile WorkersPractices, Relationships and Components of Effective WorkplacesKnoll Workforce ResearchGlobal Business Division 2007

> Switch easily between work settings

> Collaborate with many. Collaboration focused and valued when in office

Mobility drives organizational improvement

> Inspire dedicated-space users to rethink how they best work

> Challenge the evolving purpose and value of the office

The Voice of Mobile WorkersPractices, Relationships and Components of Effective WorkplacesKnoll Workforce ResearchGlobal Business Division 2007

“The price and performance of IT are no longer compromised by being green, but are now enhanced by it.”

- Mark Hurd, CEO of HP

HP uses green initiatives to cut costs and gain market share

Spa

ce

2005 2006 2007 2008

Base space reduction

Net space after data center additions, new business acquisitions etc. $50

$20

Approximate stock price over same period

Case Study - Bracknell

Bracknell Area Savings

Previous Thames ValleyTotal Net Usable Area - 451,304 sft

$8,900 per person

Total headcount = 2,845*

Consolidated BracknellTotal Net Usable Area - 165,673 sf

$5,400 per person

Total headcount = 2,686*

* NOTE : 50% of ETW headcount

63% Area Reduction

Bracknell Energy Savings

49% Energy Savings

Environmental Impact

The numbers are too big to ignore!

73,000,000 sf2007 New Office Construction

National Legislation

State Legislation

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1990 1994 1998 2002 2006 2010 2014 2018

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Historical

Projected Business as Usual

To Meet AB 32 Goal

+1.2%/yr

-0.9%/yr

Executive Order S-3-05

Our Assumptions

•Modeled on a 100,000sf building

•Starts with 30% of staff going Mobile

•An initial reduction of 25,000sf

•Energy declining proportional to Bracknell

•Commutes declining proportional to Sun

•Mobility increasing 5% a year

Our DataOur Calculation Method

Mobility Cuts Carbon Emissions

Mobility Cuts Land Consumption

Mobility Reduces Cost

What is the impact?

this or this?

What does your workspace look like?

We are just getting started…

35% of US companies have a mobility program

26% are developing one

15% have a mobility budget

Nemertes Research 2007

New metric for Corporate real estate should be “CO2 per person”

Calculations show 66% reduction in RE CO2 per person (over 10 years)

If Companies Go Mobile…

If new construction in 07 were leveraged by mobility;

This would equate to 523m metric tons of carbon over ten years’

All US coal powered plants scheduled to be built over next ten years would not be necessary

If Companies Go Mobile…

If only 40% of companies* did this over 10 years we could save

–1.2 billion metric tons of CO2

–21 Manhattan’s worth of carbon emission per year

–800 acres of green land per year

If Companies Go Mobile…

* Based on 4.7 billion square of existing office space in the US (Colliers 2007)

Human Resources Respondents want to learn more about employee mobility and change management practices

Workplace Respondents want to learn more about distributed work activity settings, measurement practices and social engagement technologies

What can you do tomorrow?

Assess readinessIs the Status Quo acceptable?

Can rethinking RE strategy contribute to future business success?

How might this link to other competitive initiatives?

What can you do tomorrow?

Talk to people

Inside your company

In other companies

To practiced consultants

What can you do tomorrow?

Tell the storyUse this presentation

Do a Utilization StudyCalculate the benefits of better utilized space

Thank You!