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Dr Jim Brandon, Dr Frank Duffy

How Distributed Work is affecting location, portfolio, and the workplace

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Our themes

• Business drivers transform how and where work takes place

• Knowledge work drives the economy• Demographic drivers challenge locational decisions• The design and use of the office portfolio is re-invented• Development of measures to optimize workplace,

location and portfolio decisions for the business

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Conventional locationsCities have been shaped by two assumptions about work that are no longer valid in the Knowledge Economy

• Co-Location• Synchrony

Contemporary cities are now propelled by industries that had supporting roles: education and knowledge creation; healthcare; and communication.

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Conventional portfoliosPortfolios have been shaped by assumptions of consolidation of business activities that are no longer valid

• Economies of scale

• Managing organizational culture

• Clustering business processes

• Exercising management control

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Conventional workplaces

reflect work styles that are no longer relevant….

rely on symbols that convey the wrong values….

constrain today’s

dynamic knowledge

based businesses

the ‘clerical factory’

• control• hierarchy• processing• silos

Express more about the past than the future

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Career Workers• University/Post Grad Education• Specialized Field of Knowledge• Long learning curve – Lifetime

pay-off periodResearch Chemist

Quasi-Career Workers

Non-Career Workers

Knowledge Work and the “Creative Class”

Peter Drucker

Richard Florida

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Mid Life Success

Accumulated Wealth

Affluent Empty Nests

Young Achievers

Young Accumulators

Conservative Classics

Mainstream Families

Cautious Couples

Striving Singles

Sustaining Families

Sustaining Seniors

Inco

me

Life Cycle Stage

Flexibility - MobilityHigh Low

High

Where is the Creative Class? Life stage profile of Boulder, Colorado

Average

Low

Concentration Index

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“Young Achievers” and “Mid Life Success”

• Younger singles and

couples• Getting established in a

career• Have money and take time

for leisure but still work hard

• Upscale urban and

suburban

Creative Class – The Younger Years

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• Building peak earnings in an

established career• Have money and responsibilities

on and off the job

“Young Accumulators” and “Accumulated Wealth”

Creative Class – The Family Years

• Young to middle age married

couples with children• Upscale suburban, towns

and urban neighborhoods

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• Middle age and older couples with no children• Polishing established careers • Senior practitioners and managers in their fields• Have money and take time for leisure and travel• Upscale suburban, towns and urban neighborhoods

“Affluent Empty Nests” and “Conservative Classics”

Creative Class – The Mature Years

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Space Environment Model

Knowledge Systemse.g. VPN/IntranetBP’s The Hive

e.g. Home/office

©DEGW 2002

Privateprotected access

individual or collaborative workspace

Privileged invited access

collaborative project and meeting space

Public open access

informal interaction

and workplace

VIRTUAL PHYSICAL

e.g. clubs, airport loungese.g. Baby, Amsterdam

e.g. café, hotel lobbies airportse.g. Bryant Park, New York

Knowledge communitiese.g. Instant Message, project extranets, video conference

Internet sitese.g. public chat rooms, information sources,

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Opportunity 1

More external and internal mobility

Technological developments are enabling people to be increasingly mobile, not only outside the office but also within it

ARRIVE AT MOBILE BASE

CHECK-IN GO TO LOUNGE

INTERACT WITH COLLEAGUES

DEPART

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Opportunity 2

New conventions in the use of time and space

Ubiquitous networks are having a big impact on the ways in which we use time as well as space

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Opportunity 3

Better life/work balance

Distributed working makes it possible for people to balance work and life in different, more convenient ways

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Opportunity 4

Knowledge management

Information in the knowledge economy, paper as well as electronic, will be managed increasingly as a precious collective resource

Knowledge web

Knowledge cluster

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Opportunity 5

More shared rather than individually owned space

Shared space is growing as a proportion of the space budget. The area given over to individual workstations is declining

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Networked Virtual Organization* (NVO)

Enterprise Core

Competencies

Customers

Employees

Partners & Suppliers

Service Providers

Governments

Other

Investors

Industry

Community

Extends organizational and geographic reach to access best talent and resources

Modularity and flexibility

Core focus on customers

Demand, fulfillment, and feedback

Supplier and support modules

* CoRE 2010 Synthesis Report: A Framework for Thriving in the Networked World, 2004, CoreNet Global, Inc.

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Labor dynamics analysis is used to screen all U.S. markets to measure potential impacts of availability and wage pressure on operations.

Occupational Labor Dynamics

Computer and Information Systems Managers

Computer Operators

Computer Software Engineers, Systems Software

Computer Support Specialists

Network and Computer Systems Administrators

Network Systems and Data Communication Analysts

Computer Related Services

Telephone Communications

Prof and Commercial Equipment and Supplies

Personnel Supply Services

Management and Public Relations Services

Commercial Banks

Colleges, Universities, Professional Schools

Computer and Office Equipment

Miscellaneous Business Services

Hospitals

Engineering, Architectural, and Surveying

Competitive Supply & Demand,

Historic and Forecasted

Occupations

Industry

Analysis

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Economic Position & Agglomeration

What is the economic position of a community vis-à-vis a base case?

Up & Coming

Below Radar Cooling Market

Hot Market

Up & Coming

Below Radar Cooling Market

Hot Market

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Knowledge places: creating the buzz

• Key patterns of concentration and growth of occupations by market area across the world

• Places have lifecycles affecting their knowledge demography

• The Buzz of a place will attract the highly creative

– Associated with universities

– Opportunities for learning and personal/family growth

– Diversity, tolerance and dynamic density

• (the Buzz of a workplace will also be attractive)

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Location is more important

• Paradox that strategic location choice is now even more important in a network of specialized and competitive modules

• The module will be more efficient and competitive if in the best location

• Location remains a competitive advantage

• Modularity and specialization enables businesses to be more selective in locational terms

The distributed worker (the knowledge worker) can be thought of as an extension of the distributed workplace.

The knowledge worker is the smallest business unit.

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New portfolio preferencesSegmented, distributed portfolio composition driven by

• Business processes

• Workforce consideration

• Cost structure

• Risk management

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The Distributed Portfolio of Workplaces

Physical team working

Virtual team working (LS)

Lone working

Virtual team working (non LS)

CommunicatingCO

RE

SP

AC

EM

anag

ed b

y or

gani

satio

n

NON-CORE SPACEManaged by others

Ž

Training centre

Specialist facilities

Canteen

Restaurant

Garden

Cafe

Airport

Train

Car

Project Room

Office BuildingTeam Table

Home

”Client site

Allocating space on the basis of work pattern

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InternationalTransport Hub

SecondaryTown Center

Business nodes

AccessibleSuburbanLocation

Home

CB D

CentralTransport Hub

Mapping Distributed Work Centers across a city …

Corporate center

Neighborhood center

Operations center

Personal center

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… and across multiple locations and shared spaces

Corporate center

Neighborhood center

Operations center

Personal center

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Profiling portfolio performance

Where

BENEFITS to the BUSINESS Location Occupancy Technology Workplace RE Type Duration Structure

Enable Organizational Performance

Workforce productivity / talent

Business Process Effectiveness

Work Process Efficiency

Customer Access / Service

Risk Mitigation

Optimize Resources

Workforce costs

Occupancy costs

Operating efficiency / costs

Capital deployment

Infrastructure utilization

Flexibility / Commitment Mgmt

Significant Influence

Secondary Influence

What / Composition How / ControlPORTFOLIO COMPONENTS

organizational performance and resource drivers are influenced through the characteristics of the various portfolio components

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Workforce ProfilingSegmentation & Market Screening

This map illustrates concentrations of a specified profile across the United States. The location screening process begins at this stage by identifying labor pools that support your work processes.

Key of analysis are geographic referenced age and income variables

Index

Call Center Example:

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This map illustrates concentrations of employment within the Scientific Research & Development industry sector. The location screening process at this stage identifies appropriate volumes and demand for applicable skills.

Profiling Industry Supply / DemandOccupational Dynamics

Example: Scientific R&D Concentration

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Profiling locational performance

Comparison of summary statistics

Volume Risk Profile RiskCompetition

Risk Wage

Risk

Short Term Location

Strategy

Long Term Location Strategy

GreensboroLeverage Profile

Relocate

Syracuse Leverage Profile

Leverage Profile

Antelope ValleyLeverage Profile Relocate

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Profiling workplace performanceTime Utilization Survey™

Objective assessment of space-use by group, job type and space type

Rigorous data collection at 250+ work points

Workplace Performance Survey™

The survey asks about Work Patterns and the Performance of the workplace

Focus GroupsValidation and elaboration of survey and observational data

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Work styles define profiles for distributed work

Space use ranges from desk bound, to internally mobile, to externally mobile

some campus mobility some lab use

heavy use of individual workspaces

little use of individualworkspaces

heavy use of individual workspaces

external mobilityheavy conference room use

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Workplaces for mobility

Mobile (virtual collaboration focus)• Shares space

• Works with team virtually

• Comes into office to connect with wider community

• Variety of space, focus on individual

• Potential to work from home

Mobile (face to face collaboration focus)• Shares space • Works with team face to face• Comes into office to work collaboratively with others (esp. Flexible project space)• Variety of space, focus on collaborative

A

BB

A

Pot

entia

lly t

he

sam

e

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Measuring business performance

Customer

Finance

Process

People

Use workplace portfolio to

Improve cost efficacy

Use workplace portfolio to improve communication and

collaboration

Use portfolio workplace to

improve customer experience

Help the company operate globally

Use workplace portfolio to

improve end-user effectiveness and

satisfaction