Paul Bartlett

1. Defining, measuring and benchmarking productivity Paul Bartlett Office Productivity Network

2. Introduction • Economic Importance • Measurement of Office Contribution • Office Productivity Network • The OPN Index • Financial Sector Relativity Paul Bartlett OPN

3. Economic Importance • 145 Million sq m Office Space in UK • 28 million people accommodated • 60% of added value created by office workers • Operational cost of 100 billion pa Paul Bartlett OPN

4. The Office as Capital Equipment • Dominant purpose of office building and services is to enhance occupier’s output • Output dependent on staff performance • Real value determined by contribution to workforce productivity • Analogous to manufacturing plant Paul Bartlett OPN

5. Assets - 20% Initial - 4% Running - 1% Staff - 75% Business costs Paul Bartlett OPN (Source: Williams, 1994)

6. Defining Productivity • “productivity is the extent to which activities have provided performance in terms of system goals” (Parsons, 1993) • “the increase in the amount of time work is being done with a decrease in absenteeism, a decrease in employees leaving work early, a reduction of extra long lunches and the increase in quantity and quality of work” (Dorgan Associates, 1993) • “a measure of what can be achieved by humans with the least effort” (Lorsch & Abdou, 1994) Paul Bartlett OPN

7. Defining Productivity • Performing tasks more accurately • Performing faster without loss of accuracy • Capability to perform longer without tiring • Learning more effectively • Being more creative • Sustaining stress more effectively • Working together more harmoniously • More able to cope with unforeseen circumstances • Feeling healthier and so spending more time at work • Accepting more responsibility • Responding more positively to requests Paul Bartlett OPN (Source: NEMA, 1989)

8. Defining Productivity “The ratio of output to input” Paul Bartlett OPN

9. time staff waste complaining absenteeism length of time working, lethargy attitude to company/loyalty mental & physical performance errors/repetition of tasks wasted time (downtime) document access level of concentration creativity work style/team-working staff turnover motivation, base needs impression upon visitors learning ability Impact of Environment on Performance Paul Bartlett OPN

10. Quality Route High Performance Saver Route Low Cost High Low Routes to Productivity Paul Bartlett OPN

11. OPN Thesis • The impact of the office environment on business performance and staff output is poorly understood • The consequences of a property change on business productivity are rarely quantified or analysed and, at worst, are entirely ignored. • By investing management attention on productive offices, shareholder value can be increased for the occupying business, and their suppliers. Paul Bartlett OPN

12. OPN Objectives • To encourage and support the generation of data on the impact of buildings on workforce performance. • To provide for members a framework for exchange of information on the impact of all aspects of the indoor environment on office worker productivity. Paul Bartlett OPN

13. Barclays KPMG Lloyds TSB Johnson Controls Royal Mail Reuters Advanced Interior Solutions TSK Swanke Harden Connell GlaxoSmithKline British Land Workspace Office Solutions BT PricewaterhouseCoopers Unilever HM Treasury OPD Aedas Core Membership Paul Bartlett OPN

14. Key Project Objective • How do you distinguish a good building from a bad one? • How do you rank buildings which contribute to the occupants business performance above those that detract from it? Paul Bartlett OPN

15. OPN Index • OPNI designed to be component in communicating objective view on office building to inform decisions on its future (acquire,tweak, refurbish, dispose) • (Semi) Objective and quantitative • Based on 100 question balanced scorecard • OPNI is interview not self-completion, as many questions require interpretation by interviewer. • Interviews take less than 2 hrs per building including walk-round. Paul Bartlett OPN

16. Key Facts Paul Bartlett OPN

17. Question Examples 1 Paul Bartlett OPN

18. Question Examples 2 Paul Bartlett OPN

19. Result Output Percentage score of building for overall performance and sub-divided into categories: • Infrastructure and support • Environmental Conditions • Facilities and Amenities • Design and Layout • Location and Access Set against Upper and Lower Quartile for Dataset Short commentary identifying salient points, photographs and areas for future attention. Paul Bartlett OPN

20. Current Benchmark Paul Bartlett OPN

21. Survey Database • Prime respondents were Facilities Managers with day to day responsibility for space (ie usually building) being assessed. • Some joint interviews with, for example, area property colleagues. • 29 Member premises; 10 clients Paul Bartlett OPN

22. Database • Total of 39 buildings – est. 1,000,000 sq m • est. 60,000 total workstations • 2/3rd buildings fully A/C • 1950s to 2004 construction • Single to 25 storeys Paul Bartlett OPN

23. Illustrations of surveyed offices Paul Bartlett OPN

24. 15 year old desk partitions appear high by modern standards Paul Bartlett OPN

25. Tower working floor Paul Bartlett OPN

26. Large staff restaurant used as informal meeting space Paul Bartlett OPN

27. Central Atrium Paul Bartlett OPN

28. New building where staff liked low light levels Paul Bartlett OPN

29. A small office - showing the achievement of relatively high densities on the working floors without degrading working conditions Paul Bartlett OPN

30. New office –highly flexible with gradation of workstation bookability Paul Bartlett OPN

31. Current Database Paul Bartlett OPN

32. Overall Performance Paul Bartlett OPN

33. Performance by Category Paul Bartlett OPN

34. Responses to Individual Questions 1 Q How long is the average journey to work location time? 70% say between 30-60 minutes Paul Bartlett OPN

35. Responses to Individual Questions 2 Q What is the ratio of meeting rooms to staff? 54% say > 1 :40 30% say between 1 :20-40 Paul Bartlett OPN

36. Responses to Individual Questions 3 Q What proportion of workstations are unoccupied at any one time? 60% believe it’s less than 25% Paul Bartlett OPN

37. Responses to Individual Questions 3 Q Are meeting times dictated by the availability of appropriate rooms? Nearly 40% say never but over 50% say sometimes Paul Bartlett OPN

38. Responses to Individual Questions 4 Q Is temperature/ventilation a significant source of staff complaints? In 85% of offices it is sometimes or often Paul Bartlett OPN

39. Responses to Individual Questions 5 Q Do you monitor business measures of productivity? In 50% of cases there are no measures Paul Bartlett OPN

40. Financial Sector • Slightly lower overall score • High performance in Location and Environmental conditions • Lower in Design and layout Paul Bartlett OPN

41. Paul Bartlett OPN

42. Next Steps • Revise and update (at margin) the questions • Review costing comparison • Expand database • Expand sectoral analysis • Publish principles and outcomes – interpret as design and management guidance Paul Bartlett OPN

43. Paul Bartlett SBS Business Solutions Tel: 01379 678899 Email: paulbartlett@sbssol.co.uk Web: www.officeproductivity.co.uk Contact Details Paul Bartlett OPN