Catalyst Tomorrow's Office

CATALYST Business Smart Relocation.

Tomorrow’s Office.

Glasgow City Council.

Integrated business change and property

rationalisation programme reduces city

centre office space by 63%; enables 15%

headcount reduction and delivers annual

savings of £18m.

The Background.

Glasgow City Council is the largest local authority in Scotland, with a gross annual budget of

£2.4bn and 24,000 employees delivering a range of services for 600,000 residents.

The Council employs 4,450 staff within the city centre office portfolio (Fig 1). The corporate

headquarters is based in Glasgow City Chambers, which accommodates 1,000 staff (Fig 2).

The remaining 3,450 employees are spread across 10 different sites within 1.5km of George Sq.

The Council is structured into 7 departments: Chief Executive’s Office; Corporate Services;

Development & Regeneration Services; Education Services; Financial Services; Land &

Environmental Services and Social Work Services.

Additionally, the Council has 8 arms-length external organisations (ALEO’s) that deliver a range

of service: City Building; City Property; City Markets; City Parking; Cordia; Glasgow Life;

Community & Safety and ACCESS.

ACCESS manages the Council’s property and ICT assets and is a joint venture between Serco

Group plc and Glasgow City Council.


Glasgow City Chambers.

We were appointed by ACCESS to develop an integrated business change and property

rationalisation programme that could help the Council make substantial savings. We provided

the strategic consulting; programme management and specialist work-stream consulting services

to create the operating model, develop the business case, secure Executive Committee approval

and produce the transition strategy. We built and coached the in-house delivery teams for the

Council, ALEO’s and ACCESS, who are now responsible for the implementation stage.

The Challenges.

The Clyde Valley Review; The Independent Budget Review; The Draft Scottish Budget 2010-11

and the recession have challenged the public sector to fundamentally change their business

models to improve economy and efficiency.

The Council has published a comprehensive Council Plan for the period 2009 to 2011. One of

the five key objectives is to improve the efficiency and effectiveness of service delivery, reduce

spending and invest in a flexible workforce in order to meet the financial challenges of the

economic downturn.

The Council’s city centre office portfolio consists of 19 buildings on 10 different sites spread

across the city centre (Fig 1). The total gross internal area is 94,715-sq.m with a total occupancy

cost of £14m per annum.

The Council owns 14 buildings, which total 61,800-sq.m and have a net book value of £21m.

The market value of these assets has dropped substantially as a result of the property crash.

The 5 leased properties total 32,915-sq.m are held on institutional leases that expire between

2011 and 2023.

The office portfolio ranges from Glasgow City Chambers, which is a Grade-A listed property

built in 1888, to a mix of modern office buildings that were developed in the 1970’s, 80’s & 90’s.

The estate has suffered from significant underinvestment with the overall condition being poor

to moderate (Fig 3 & 4). The internal working environment across the portfolio is outdated and

in a poor condition (Fig 5).

The Council’s 7 departments are spread across the 19 buildings. The 4,450 employees operate

a wide range of public sector work-styles and working practices; with a 1:1 desk ratio and an

occupancy density of 1:21-sq.m per person. The average utilisation rate across the office

portfolio is less than 40%.

The Council’s 7 departments operate 20 city centre service desks, which carry out 443,000

face-to-face transactions annually (1,775 per day). The finance office at 45 John Street has been

the public face of the Council since 1888 and processes over-the-counter payments of £250m

per annum from this one location. The 20 service desks are staffed by 95 employees and

occupy 6,250-sq.m of floor space within 9 buildings.

The Council predominately operates manual and paper based processes and systems. This

has resulted in 43,000 lin/m of paper filing across the 19 buildings, which takes-up 9,000-sq.m

of floor space. Several departments have significant storage requirements in the range of

15 lin/m to 20 lin/m per person.

The Council signed up to Scotland’s Climate Change Declaration in 2007 and is committed

to reducing carbon emissions; reducing energy consumption; increasing energy efficiency;

promoting renewable energy; reducing water consumption; improving water efficiency;

minimising waste; increasing re-use; increasing recycling; promoting public transport;

applying sustainable procurement; promoting sustainable construction and increasing

health & wellbeing.

The Council is one of the principal agencies responsible for the development and

implementation of the city’s new economic development and regeneration strategy, A Step

Change for Glasgow, which sets out the city’s ambitions for growth over the next 10 years.

The Council’s 7 departments and remaining 19,550 staff occupy more than 600 properties

within the city boundary, which consist of local offices, libraries, depots, workshops, industrial

units, retail outlets, sports complexes and leisure facilities. The characteristics of the city-wide

portfolio are very similar the situation outlined above for the city centre office portfolio.

Services Provided:

Strategic Consulting

Financial Modelling

Programme Director

Programme Management

Business Change Management

Corporate Communications

Workforce Planning

Business Process Design

Customer Service Design

Real Estate Consulting

Property Transactions

Development Consulting

Information Technology

EDRMS

Document Management

Sustainability Consulting

Workplace Consulting

Space Planning

Interior Design

Corporate Branding

FF&E Consulting

Migration Management

FM Consulting

Procurement

Project Management

Benefits Realisation

Team Coaching


City Chambers Complex.

The Approach.

The key components of the programme are outlined below:

Portfolio Assessment.

We carried out an extensive data collection exercise involving more than 100 surveys to establish

the key business and property metrics: workforce details; organisational structure; operational

model; service model; technology platform; department budgets; occupancy costs; property

tenure; floor plans & space plans; building condition; energy performance; utilisation rates and

FM model.

Strategic Review.

We reviewed the Council’s business strategy, budget, service delivery model, organisational

structure, operating practices, business processes and technology, property and workplace assets

to produce a Strategic Review that outlined the potential operating model and quantified the

potential savings.

Outline Business Case.

We developed the Strategic Review into an Outline Business Case for the “Office Rationalisation

Programme”, which justified the investment decision and was used to secure Executive Committee

approval for Stage 1 of the programme: rationalisation from 19 building into 8 buildings; 50%

reduction in office space (94,715-sq.m to 46,863-sq.m); decant 1,600 staff (36%) to enable works;

capital expenditure of £47.1m; complete by July 2012; savings of £4.14m per annum.

Tomorrow’s Office.

We aligned the “Office Rationalisation Programme” with the Council’s two other major change

programmes: Tomorrow’s Council and Tomorrow’s Workforce. We re-branded the programme

– Tomorrow’s Office.

Value Delivery.

We carried out an extensive options appraisal and cost benefit analysis to test over 50 business

change and office rationalisation permutations in order to maximise cost reduction opportunities;

mitigate contingent liabilities; release capital; maximise return on investment and optimise

financial performance (Fig 9 & 10).

Full Business Case.

We developed the Outline Business Case for the Office Rationalisation Programme into a Full

Business Case for Tomorrow’s Office, which substantially improved the benefits case:

rationalisation from 19 building into 6 buildings; 63% reduction in office space (94,715-sq.m to

34,780-sq.m); decant 120 staff (3%) to enable works; capital expenditure of £44.45m; complete

by July 2012; hard property cost savings of £6m per annum; and additional efficiency savings of

£12m per annum (Fig 13, 14, 15 & 16).

Programme Management.

We provided a dedicated programme director and management team to direct and control

every aspect of the programme and ensure proper governance. We established the Executive

Board; Programme Board; programme management team; user groups; support groups and

delivery teams (Fig 6 & 7). We structured the programme into 5 key stages: Stage 1 Initiation;

Stage 2 Onboarding; Stage 3 Change Definition; Stage 4 Transition; and Stage 5 Review and

managed 25 separate work-streams involving a core programme team of over 200 people.

The entire programme was scheduled over a period of 1,062 days – from July 2009 to June

2012 (Fig 8).

Change Management.

We controlled the stakeholder engagement, corporate communications, Union consultation

and cultural issues to successfully manage the complex matrix of interdependencies associated

with 4,450 staff, 7 departments, 8 ALEO’s and 3 public sector Unions.

Human Resources.

We helped to realign the workforce with the Council Plan and introduced new ways of working

to improve productivity; enable 15% headcount reduction (4,450 staff down to 3,750) and create

a more flexible workforce.


Agile Working.

We consulted with all 7 departments and analysed the work-styles to create a fully integrated agile

“lite” working policy that formalised the existing flexible working practices; enabled a 1:1.3 desk

ratio; reduced the occupancy density to 1:9-sq.m per person and increased average utilisation to

over 80%. The agile “lite” policy incorporates processes and systems that will enable the Council

to implement a more radical change in working practices over time (Fig 27, 28, 29 & 30).

Customer Service.

We analysed the service delivery model and introduced new processes and systems to rationalise

the 20 service desks (6,250-sq.m) and create a new one-stop service desk (650-sq.m) for all 7

departments at 45 John Street, which will improve the quality of service and accessibility, optimise

interactions, increase user satisfaction and enhance visitor experience (Fig 18).

Business Processes.

We helped to analyse the operating models and redesign the key business processes across all

7 departments to enable smarter working and improve efficiency and effectiveness.

Document Management.

We analysed the 43,000 lin/m of paper filing and 9,000-sq.m of storage and developed a

document management policy that enables the Council to reduce the amount of filing held

within the buildings to less than 10,000 lim/m and reduce the amount of storage to less than

2,000-sq.m. We assisted one of the ALEO’s to set-up a document management service and

storage facility, that will reduce the Council’s dependence on external providers and reduce

outsourcing costs.

EDRMS.

We introduced a Council-wide electronic document and records management system for all

24,000 staff to help rationalise the paperwork; improve the accuracy of records; streamline FOI

requests and accelerate the processing time associated with all Council services.

Information Technology.

We worked with the ICT team to develop the new infrastructure to facilitate the EDRMS and

property rationalisation and realign the Council’s 2010 to 2012 ICT Refresh programme to enable

agile working from 2011 onwards.

Collegelands Regeneration.

We negotiated a pre-let development agreement for a new 10,000-sq.m Cat-A office building

with Dawn Group, which is just 400m from the City Chambers Complex. The pre-let to the

Council enabled Dawn to commence a £200m mixed use regeneration project that will develop

over 100,000-sq.m on the 6.8 hectare site. The development of this derelict area is expected to

create up to 3,000 new jobs and boost the city’s economy by £110m per annum (Fig 31 & 32).

Workplace Standards.

We provided the best practice, research and design to develop efficient, effective, engaging

and flexible workplace standards that will create dynamic, collaborative, productive, high quality

and affordable working environments. We standardised the workplace settings into 20 modules

and created a corporate branding and interior design scheme that can be rolled out across any

building within the city centre and city-wide portfolios (Fig 18, 19, 20, 21 & 23).

Kit of Parts.

We developed a standard kit of parts for the workplace standards, which componentised all interior

fitting out, furniture and finishes elements in order to enable one of the ALEO’s to manufacture all

components off-site; thus reducing costs; streamlining cycle times; reducing on-site works and

improving quality for all the refurbishment projects within the programme (Fig 21 & 22).

Sustainability.

We reviewed the Council’s sustainability policies and integrated the requirements into the

programme, which will enable the Council to achieve 16% of the overall city-wide CRC target,

reduce energy consumption by 50% and achieve a 4-star BREEAM in Use certification.

Leasehold Liabilities.

We reviewed the Council’s liabilities for the 5 leasehold buildings and developed an exit plan for

each property that will minimise the financial exposure, mitigate the risks and ensure a smooth

migration. We helped to transfer the surplus freehold properties to City Property and produced

an exit plan that minimised the holding costs and accelerated the disposal of the assets.

Collegelands.


Business Continuity.

We produced detailed implementation and migration plans to ensure business continuity at all

times (Fig 11 & 12). We produced disaster recovery plans and established “safety-net” office space

that could be utilised is case of an emergency or delay. We reduced the amount of decant from

1,600 staff in the Outline Business Case to just 120 staff with a double move.

Benefits Realisation.

We developed a detailed benefits realisation plan, which was integrated into the Full Business

Case in order to ensure that the benefits and financial savings are managed across the entire

lifecycle of the programme (Fig 25 & 26).

Teambuilding & Coaching.

We built an in-house team of more than 90 people for ACCESS, which utilised the resources

within the Council and ALEO’s – governance, business change, communications, HR, finance,

procurement, ICT, project management, design, City Building, City Property and Cordia. We

coached the team during the Initiation, Onboarding and Change Definition stages and handed

over the programme to the implementation team in July 2010.

Pilot Project.

We managed every aspect of the pilot project for Strathclyde Pension Fund to test and prove

every element of the Tomorrow’s Office programme and ensure that the in-house implementation

team were fully trained on a live project involving the relocation of 110 staff and a capital spend

of £0.9m (Fig 17).

Transition Strategy.

We consolidated all of the above activities in to a comprehensive delivery plan and produced a

migration plan for each department and building, which detailed more than 1,000 individual

projects over a period of 24 months. We prepared the Transition Strategy and secured Executive

Committee approval for the completion of Stage 1 to Stage 3 and for the commencement of

Stage 4 – Transition.

The Results.

The Tomorrow’s Office programme allows Glasgow City Council to reduce city centre office

space by 63% and enables a 15% reduction in headcount.

The programme is expected to deliver hard property cost savings of £6m per annum and

efficiency savings of £12m per annum.

The in-house teams from the Council, ALEO’s and ACCESS commenced the transition stage in

July 2010. The programme is expected to be complete by July 2012.

The Council is presently developing plans to roll out the Tomorrow’s Office operating model

across the entire city-wide office portfolio in order to increase efficiency and generate

additional savings (Fig 24).

The Highlights.

• Programme – integrated business change & property rationalisation.

• Savings – £18m per annum.

• Less staff – 15% headcount reduction (4,450 to 3,750).

• Less sites – 10 spread across the city down to 2 within 400m.

• Less buildings – 19 down to 6.

• Less space – 63% reduction (94,715-sq.m to 34,780-sq.m).

• Less service desks – 20 down to a one-stop-shop.

• Less CO2 – achieve 16% of CRC target.


Fig 1.

City centre office portfolio.

Fig 2.

Glasgow City Chambers Complex.


Fig 3.


Fig 4.



Fig 5.

Typical working environment.

Fig 6.

Programme management structure chart.

Glasgow CityCouncil

ORPExecutive Board& Project Sponsor

Programme Management

Strategy Risk Compliance Finance Audit Communications Procurement Business Change Quality Plan Performance

Work-streams

Agile Working>

Document Man>

Service Desk>

ICT>

Migration>

Sustainability>

FM Systems>

>>

Collegelands>

SAMP>

Multiple Projects – Delivery

RefurbishmentCity Building

Fit OutCity Building

FurnitureRSBi

Fittings>

Equipment>

Technology>

Specialist>

Removals>

Property Portfolio – Occupancy

FacilitiesManagement

EnergyManagement

ServiceContracts

ORP

Programme Board

User GroupsChief Executive

DrsEducation Services

Financial ServicesLand & EnvironmentalSocial Work Services

Culture & Sport GlasgowAccess

Support GroupsCorporate ServicesHuman Resources

Finance CommunicationsBusiness Change

PropertyGovernance

Others???

Property Portfolio – Building Disposal – City Properties

Tontine House Nye Bevan 1&2 Ingram Street George Street

High School Charlotte House Richmond Exchange

Property Portfolio – Retain

Chambers – West Chambers – East Montrose Street Wheatley House

229 George Street 231 George Street Centenary House Collegelands

Sponsors

Champions

Multiple Projects – Management & Design

Project ManageDRS

Cost ControlDRS

Space Planning>

Interior Design>

Archi & ConserveDRS

M&E EngineeringDRS

C&S EngineeringDRS

ICT Design>

Sustainability>

Health & Safety>

Service Reform

Board

Capital Projects

Board


Fig 7.

Programme management resource schedule.

Fig 8.

Master programme – 1,062 days.

0

100

200

300

400

500

600

700

A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J

2009 2010 2011 2012

Initiation Change Definition Transition ReviewOB

Initiation

Onboarding

Change Definition

Transition

Decant

229 & 231 George St

Montrose Street

Wheatley House

City Chambers East

Centenary House

Collegelands

Review

2009 2010 2011 2012

1,062 Days

Nye BevanHigh School Charlotte House

5 February

187 Days3 Aug 1 July

Complete on 25th September

Complete on 3rd November


Fig 9.

Property cost savings.

Fig 10.

Capital investment profile.

£454.3m

£350.7m

£305.7m

£103.6m

Saving = £4.14m pa

£148.6m

Saving = £5.95m pa

0

50

100

150

200

250

300

350

400

450

500

Do Nothi ng ORP Repor t 6 Bui l di ng M ont r ose

Today ORP Tomorrow’s Office

£454.3m

£350.7m

£305.7m

Appraisal

Property operating costs over 25 years

0

1

2

3

4

5

6

7

8

9

10

Backl og Chamber s

East

M ontr ose Exchange Wheat l ey Centenar y Fur ni t ur e Decant IT E DRM S Fees Agi l e St udy Agi l e " l i te" Ser vi ce

Desk

112 I ngr am Chamber s

East

Chamber s

West

BUSINESS CASE ADDITIONAL PROJECTS

Business Case

Additional Projects

Total

TOP

£39.70m

£4.75m

£44.45m

ORP

£47.10m

£0m

£47.10m

Capital Investment


Fig 11.

Master transition programme.

Fig 12.

Typical departmental migration plan.

Initiation

Onboarding

Change Definition

Transition

Approval

EDRMS

Clean Out & Storage

Finance – Charlotte House

Exchange House (229 & 231)

Chambers East

23 Montrose Street

45 John Street – service desk

Chambers West

Collegelands

Wheatley House – flex-space

Richmond Exchange – safety net

Review

Complete on 25th September

Complete on 30th October

Phase 1 Phase 2

2009 2010 2011 2012

SPFO AEOR 73 staff

Aug – part decant to Charlotte

Retain as flex-space until December 2012

Lease termination 15 November 2013

9th April

Pilot

Key date Refurbishment Migration


Fig 13.

Existing city centre office portfolio.

Fig 14.

Tomorrow’s Office portfolio.

Portfolio

Dispose

1 Nye Bevan

2 High School

3 Tontine Complex

4 112 Ingram St

5 280 George St

6 Parish Halls

Lease Exit

7 Richmond Exchange

8 Charlotte House

9 Centenary House

10 Wheatley House

Retain

11 Chambers West

12 Chambers East

13 23 Montrose St

14 229 George St

15 231 George St

Acquire

16 Collegelands

17 SPF – Capella

1 2

3

4

56

78

9

10

1112131415

16

17

Portfolio

1112131415

16

Retain

11 Chambers West

12 Chambers East

13 23 Montrose St

14 229 George St

15 231 George St

Acquire

16 Collegelands


Fig 15.

City Chambers Complex – accommodation schedule.

Fig 16.

Collegelands – accommodation schedule.

Civic Space

Councillors

Chief Executives Office

Corporate Services

Financial Services

Land & Environmental Services

Social Work

Development & Regeneration Services

Education

City Property

GCMB

Chambers Complex

Collegelands

Culture & Sport Glasgow

Financial – support

Customer Contact Centre

Shared Services Centre

Access


Fig 17.

Pilot project – Strathclyde Pension Fund.

Fig 18.

One-stop-shop service desk – 45 John Street.

Capella

Strathclyde Pension Fund

Service Desk


Fig 19.

Test fit space plans.

Fig 20.

Interior design scheme – computer images.

Test Fit Plans

23 MONTROSE STREET

EXCHANGE HOUSE

COLLEGELANDS

CHAMBERS EAST

Design Manual


Fig 21.

Workplace standards – 20 workplace settings.

Fig 22.

Kit of parts – master components.


Fig 23.

Corporate branding.

HUB 2,000 – 3,000 staff

SPOKE 50 – 100 staff

Fig 24.

Future city-wide office portfolio – hub & spoke operating model.


Fig 25.

Benefits realisation – recognition event table.

Fig 26.

Benefits realisation – benefit & savings dashboard report.


Fig 27.

Agile working – work-style analysis.

Fig 28.


Consultation with all

Service Areas

champion teams (5-

6 working sessions

with each) to

explore workstyles

and “could be”

potential

Internally

Fixed

Internally

Mobile

Internally &

Externally Mobile

WorkstyleA

Team anchor

WorkstyleB

ProcessWorker

WorkstyleC

Customer face

WorkstyleD

Knowledge/networker

WorkstyleE

Specialist/ expert

WorkstyleF

Manager / executive

WorkstyleG

Nomadictraveller

WorkstyleH

Home/ remote

Internallyfixed

Internallymobile

Internally and Externally mobile

Externallymobile / fixed

Each optimised by its o

wn

‘kit o

f parts

’

-one size

does not fit a

ll!

Externally

Mobile

Externally

Fixed

potential option

Council City Centre Headcount 3968

Workstyles H Home / Remote WorkerWorkstyles G Nomadic / TravellerWorkstyles F Manager / ExecutiveWorkstyles E Specialist / ExpertWorkstyles D Know ledge / Netw orkerWorkstyles C Customer faceWorkstyles B Process WorkerWorkstyles A Team Anchor

NB: headcounts excludes workforce planning impacts

35%

22%

5%

37%

17%

8%

4%

23%

26%

18%

3%0%

26%

12%

2%

18%

23%

13%

6%0%

4%

25%

2%

23%

22%

7%

15%

0%

22%

17%

5%

9%

18%

30%

0%0%

8%

36%

2%

20%

13%

16%

5%0%

34%

21%

4%

10%

18%

6%1%

7%

15%

16%

3%

13%

23%

26%

2%0%

9%

12%

16%

23%

20%

18%

0%1%

17%

19%

5%

17%

21%

17%

4%1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

DRS 661 CSG 272 LES 694 Finance 421 Access 315 Education

248

Social Work

553

CEO & CS

804

Across

Council 3968


InternallyFixed

InternallyMobile

Internally & Externally Mobile

ExternallyMobile

ExternallyFixed

Static resident: Process & transactionalOut of Office < 10 -15%Mobility < 10 – 15%@ Desk 70%

Mobile resident: Multi task / project teamOut of Office < 10 -15%Mobility 25 - 30%@ Desk 45 - 55%

Mobile non-resident: Nomadic TravellerOut of Office > 60%Mobility 25 - 30%@ Desk 15 - 25%

Static non-resident: Home workingOut of Office > 80%Mobility < 10%@ Desk < 10%

Mobile resident: Specialist / NetworkerOut of Office 25 -30%Mobility 25 - 30 %@ Desk 30 - 40%

(35%) (22%) (37%) (5%)

workspace

implications

Enabling

ICT tools

Dedicated deskAccess to meeting space and storage

Dedicated or shared desk, plus range of alternative shared worksettings. Access to meeting space and storage

Dedicated or shared desk, plus range of alternative shared worksettings. Access to meeting space and storage.

Access to shared desk, plus range of alternative shared worksettings. Access to meeting space and storage

Home: desk / storageOffice: Access to shared desk, plus alternative shared worksettings and meeting space

Dedicated desktop PC, desk phone / voicemailAnd network connection. Shared MFD printing

Dedicated desktop PC or virtual desktop / laptopPhone extension portabilityDedicated or wireless network connection. Shared MFD printing

Laptop / virtual desktop. Phone extension portabilityMobile DeviceDedicated or wireless network connectionBroadband/VPN Access. Shared MFD printing

Laptop, Phone Extension portability Mobile DeviceDedicated or wireless access connection. Broadband/VPN AccessShared MFD printing

Dedicated Desktop PCDedicated desk phoneBroadband/VPN AccessDedicated MFD

DRS: Imagery depicting what is not desired for future workplace

4 December 2009

cluttered dated

dark

excess filing

uninspiring

4 December 2009

DRS: Imagery depicting desired future workplace

colour

modernconcentration

recycling meeting spaces

coffee

versatility

supergraphics

bright and light

modern furniture

collaboration

trad

itio

nal

rad

ical

nowaspiration

potential

1 2 3 4 5 6 7 8 9 10

DRS: So, where do you see yourselves in terms of your future office work environment?

Fig 29.


Fig 30.



Fig 31.

Collegelands regeneration area.

Fig 32.

Collegelands regeneration area.

Catalyst Tomorrow's Office

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