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Government FM Network
ICT Workshop
How to Manage Space Efficiently &
Support “New Ways of Working”
Tuesday 14th July 2009
Jonathan Cutting, Workplace Strategy – RNM Systems Limited
CONDECO KNOWLEDGE EXCHANGE
The rise and rise of flexible working
If you look around your office, you’ll probably see offices that are not full of people,
but are full of furniture, filing and dead space.
“It’s no good Pilkington. We have to get to the
bottom of why this company’s losing money!”
Desk sharing hits the broadsheets
“Departments are being asked
to make better use of office
space, allowing vacant property
to be sold. An efficiency review
suggested…. government
offices could use 30 per cent
less space by sharing desks.”
23rd April 2009
Operational Efficiency Programme
Building on the Gershon 2004, which successfully delivered over
£26.5 billion in savings, and on plans to deliver another £35 billion
in savings as part of the CSR07 value for money programme, the
OEP has taken a close look at achieving greater efficiency in a
number of cross-cutting areas:
 Back office operations and IT
(Target saving £8bn)
 Collaborative procurement
(Target saving £24bn)
 Asset management and sales
(Capital release £50bn)
 Property
(Target saving £37bn)
April 2009
Operational Efficiency Programme: Property
April 2009
OEP recommendations should produce substantial savings, including:
 Around a 30% reduction in central government office accommodation through
the reduction of space occupancy from 14.5m2 to 10m2 or better could be
achieved by adopting best practice (incl. desk sharing). This could reduce
running costs by £1bn a year;
 For the remainder of the estate, property assets (excluding council housing)
could be reduced by around 20% over an initial 10 year period, reducing
running costs (incl. rent from leasehold buildings) by between £2bn and £4bn a
year;
 The reduction of the estate would also bring significant improvements to
government‟s performance on carbon emissions reduction, including making a
large contribution to the achievement of the government‟s carbon emissions
targets for the central office estate.
In total, this would mean:
 Savings of up to £1.5bn a year. This rises to a total of around £5 billion by the end of
a 10 year period (excluding energy efficiency savings); and
 proceeds from sales in the region of £20 billion (excluding council housing) over an
initial 10 year period.
Smarter working…
A new organisational paradigm is emerging in organisations, based on smart
working principles. It’s driven by a combination of work environment changes,
including greater use of IT, more flexible office layouts and greater autonomy &
discretion for employees.
Chartered Institute of Personnel & Development
Smart working is not simply flexible working, flat organisation structures or
implementing productivity enhancements. The defining feature of Smart Working is
a mind-set and a set of associated values which is increasingly being adopted by
organisations ranging from major investment banks through to government
departments. Deliverables from Smart Working include:
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Higher degree of freedom to act
Virtuality in teams/ work groups
Outcome based performance
Flexibility towards work location / hours
Work environments using enabling technologies including desk sharing
High trust working relationships
Smart working involves managing the work environment to release employees‟
energy and drive performance
Benefits of smarter working…
Smart Working is an approach to organising work which embraces the principles of
freedom, collaboration and focus to create a work environment which drives
greater efficiency and effectiveness in achieving performance outcomes.
The benefits of adopting a Smart Working approach include:
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Employee cost benefits
Increased employee engagement
Talent attraction and retention
Reduced recruitment costs while allowing for more targeted recruitment
Staff cost optimisation
Business cost benefits
Reduced property spend
Reduced IT spend while harnessing new technologies
Travel cost saving
IT utilisation
Workspace utilisation
Productivity benefits
Enhanced productivity (volume and quality)
Sickness absence reduction
Greater collaboration
Creativity and innovation
What can be achieved?
The work environment is no longer viewed as a passive overhead but as a powerful
and integral aspect of UK business, which, given the right attention and investment,
can significantly enhance the effectiveness of service delivery.
For many employers, one of the most sought-for benefits of flexible working is to
create the potential to reduce office costs.
How do you know what can be achieved?
What are the steps you need to take to maximise the benefits and how do you get
everyone to buy into the process?
Space utilisation
Despite an office building being the second biggest operating cost after salaries,
most central and local government departments are barely 50 per cent utilised on
any working day.
The Government of Office Commerce
Business case for sharing desks
Operational Efficiency Programme: Bibliography
The Total Office Cost Survey (TOCS) provides a valuable starting
point to facilitate cost reduction programmes. The Key
components to identify and define the Total Office Cost for a
workstation are:
TOTAL OFFICE COST
Occupational Costs
Hard FM
Soft FM
Rent
Rates
Fit Out
Furniture
Annualised Costs
Insurance
Internal R&M
M&E R&M
External R&M
Minor Improvements
Internal Churn 50%
Dilapidations
Security
Cleaning
Waste Disposal
Flowers & Plants
Water / Sewerage
Energy
Compliance
Telephones
Catering
Reception
Post / Courier
Reprographics
Disaster Recovery
Management
The annual cost of operating empty desks
Cost of 10m2 desk
£6,000
x
x
Number of Desks
#
5,000 Desks
=
=
Annual Total Office Cost
TOC
1,000 Desks
250 Desks
Occupancy
Rate
No. of
Empty
Desks
Annual Cost
of maintaining
Empty Desks
Occupancy
Rate
No. of
Empty
Desks
Annual Cost
of maintaining
Empty Desks
Occupancy
Rate
No. of
Empty
Desks
Annual Cost
of maintaining
Empty Desks
90%
0,500
£ 13.0 million
90%
100
£ 10.6 million
90%
025
£ 150,000
80%
1,000
£ 16.0 million
80%
200
£ 11.2 million
80%
050
£ 300,000
70%
1,500
£ 19.0 million
70%
300
£ 11.8 million
70%
075
£ 450,000
60%
2,000
£ 12.0 million
60%
400
£ 12.4 million
60%
100
£ 600,000
50%
2,500
£ 15.0 million
50%
500
£ 13.0 million
50%
125
£ 750,000
Divest: 1,500 desks
Saving: £9m per annum
Divest: 300 desks
Saving: £1.8m pa
Divest: 75 desks
Saving: £450k pa
Example: Driver – To divest under utilised desks (County Council)
Based on an average desk utilisation rate of 50% (OGC figures), a central or local government
department can increase their desk utilisation by up to 30% (i.e. from 50 to 80%) by divesting up to
1,500 desks (i.e. from 5,000 desks to 3,500 desks or 15,000m2 of office space) whilst maintaining 5,000
office-based council staff. This equates to desk sharing ratio of 10 desks to 7 staff and a real estate
saving of £9 million per annum.
Moral Case - Raising desk utilisation will reduce the organisations carbon footprint from needlessly
heating, air-conditioning and ventilating desks that lie empty.
The cost of operating fixed desks
ASSUMPTIONS: County Council
5,000 office-based staff
20 days holiday per year per employee
6 days absent due to illness per year per employee
Therefore, each fixed desk lies empty for 26 working days per year.
Based on 5,000 employees, this equates to 130,000 staff-days lost per annum
Based on the annual cost of operating a 10m2 desk across of £6,000 pa, a desk will cost
£23.81 per day to operate a desk (£6,000 † 252 working days).
ROI – Business Case
The potential saving for a County Council from utilising empty desks (including desks assigned
to PAs & Senior Executives) as a result of holiday & sick leave is:
130,000 staff-days x £23.81 = £3.1 million per annum
Aside from the above ROI, executive offices incorporated into a desk sharing scheme can be
utilised as alternative meeting rooms as and when a director is away on holiday, sick leave or
out of the office on business.
OEP case study
Operational Efficiency Programme
In May 2009 Hampshire CC bought Condeco
About Condeco Workspace Management Solution
Condeco Desk Booking Module
Book a work space at any location enhancing organisational workspace utilisation.
Condeco Meeting Room Booking Module
Book or request a room with associated resources such as catering, IT equipment,
AV equipment, video conferencing and other supplies all from one application.
Condeco Car Park Booking Module
Book a car parking space, encouraging employees to utilise alternative methods of
transport.
Condeco Visitor Management (comes with any of the above)
Keep track of all visitors in the building
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Condeco is a 100% web based
SQL database
Written in asp classic & asp .NET
Multi Time Zone
Multi Location
Condeco Desk Booking Solution
Condeco is government approved software and featured on the ICS catalogue
framework of DE&S (linked to OGC Buying) and on Catalist.
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Managed shared desk areas
Interactive floor plans
Advanced Desk Search
User Search
Book desks for colleagues
Book desks for visitors
Desk attributes
Desk check-in
Desk auto bump
Utilisation Reporting
Administrative Tools
Condeco Interactive 4.3” Screens for Desks
Condeco is government approved software and featured on the ICS catalogue
framework of DE&S (linked to OGC Buying) and on Catalist.
Power: PoE (Power over Ethernet)
Screen: 4.3” VGA Colour LCD display (touch screen)
Mounting: Desk or surface
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Book a desk directly from the screen
Confirm booking using PIN or RFID security card
Desk status is indicated via red, amber and green LEDs on
the unit
Check in to booked desk via PIN or RFID card
Desk number and booking information displayed on colour
Display
Condeco Room Booking Solution
Condeco - Winner of the BIFM Technology Award (Nov 2008)
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Managed rooms
Self-service rooms
Booking additional services
Email & diary integration
„No show‟ management
User search
Detailed reporting tool
Administrative tools
Condeco Interactive 10” Screens for Rooms
Condeco is government approved software and featured on the ICS catalogue
framework of DE&S (linked to OGC Buying) and on Catalist.
Power: PoE (Power over Ethernet)
Screen: 10.4” VGA colour LCD display (touch screen)
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Displays detailed meeting information directly outside
the room
Instant meetings booked directly from the screen
Schedule future meetings for later in the day
Confirm meeting start and release meetings if no-one
shows up
End a meeting early and release any used time
Extend a meeting up to the next available time
LED light indicators
Full reporting of bookings, no-shows and room usage
Customers – Central Government & Public Sector
The overall effect of Condeco is clear and compelling. Condeco has allowed ISS to
raise office utilisation, reduce our energy bill, reduce our carbon footprint and, in the
process, make huge real estate savings whilst providing a more vibrant and exciting
working environment for our staff. MoD-DES ISS in Corsham (2008)
LONDON AMBULANCE
University for Industry
Customers – Local Government & NHS
Customers – Local Government & NHS
Regional Improvement & Efficiency Partnerships
Regional Improvement and Efficiency Partnerships (RIEPs) are
partnerships of councils and other local services working together
to deliver excellent services and greater efficiency. The priorities
and work programmes of each RIEP are based on and reflect
needs and challenges of authorities in the region or sub-region.
These are set out in their strategies and emerging delivery plans.
RIEPs will act as a hub to ensure that councils and their partners
can access support from a range of programmes. In doing so, the
RIEPs will provide the platform for a single conversation to embed
and sustain real improvement. The nine RIEPS are:
East of England
East Midlands
London
North East
North West
South East
South West
West Midlands
Yorkshire and Humber
Summary – potential to generate huge savings
 UK Public & private sector are in an excellent position to generate
year-on-year savings across a number of fronts;
 Generate revenue or savings from divesting up to 30% of your office
space as a result of consolidating the workforce;
 The year-on-year savings from rolling out desk sharing schemes;
 Generate revenue by allowing local businesses to book a
workstation/meeting room (at a fee) as and when they need one
(similar to the Regus business model).
Source Material
Capgemini - Smart Working
http://www.uk.capgemini.com/services/hr/smart_working
HM Treasury - Operational Efficiency Programme – Final Report
http://www.hm-treasury.gov.uk/d/oep_final_report_210409_pu728.pdf
The Chartered Institute of Public Finance & Accountancy - Performance Improvement Network
1,000 examples of efficiency initiatives from English councils
http://www.cipfanetworks.net/pin/documents/default_view.asp?content_ref=8207
PwC - A Response to HM Treasury Operational Efficiency Programme
http://www.pwc.co.uk/pdf/treasury_operational_efficiency_program_response_january_2009.pdf
Actium Consult - Total Office Cost Survey 2009
http://www.actiumconsult.co.uk/news_detail.php?news_id=1
Local Government Association - Regional Improvement & Efficiency Partnerships
http://www.lga.gov.uk/lga/core/page.do?pageId=18437