Australian Chapter DISTRIBUTED WORKPLACE Problem Statement With government-issued orders to shelter in place across the globe – and corporations shutting offices – employees have been sent home. We are now conducting a worldwide experiment in remote working. The Team Catherine Sullivan Julie Huynh MCR Bryan Froud Telstra Dept. of Employment (Team Leader) & Small Business JLL Maria Russo-Fama Helen Baker Tom Pullinen (Aust. Chapter Chair) Allianz Insurance Pullien Property Group BGIS
Australian Chapter DISTRIBUTED WORKPLACE Who is impacted? Individual Landlord Organisational Sphere Sphere Sphere Customer / Friends Retail Client Agent / Contractors Broker Organisation / Landlord Employee Manager Occupier Facility Managers Family Other Occupiers Co-workers
Australian Chapter DISTRIBUTED WORKPLACE What are the positives, negatives and opportunities in Remote Working from an EMPLOYEE perspective? Rose Thorn LEGEND (Positive) (negative) Bud Difficult to Insightful Increase use Home Theme (Opp.) connect with of technology workspace Hybrid working new impacting week - space may be set up customers Employee wellbeing better than the and time wellbeing office More time to support family Space Noise (family, Longer hours limitations Non - pets, traffic, Flexibility in Physical of work ergonomic set hours of work neighbours) wellbeing Loss of up Less work- accidental based conversations Mental interruptions / Psychological wellbeing Interruptions Work- life extra focus barrier home from pets / Harder to balance time Time savings vs office Weight gain kids / family speak to from not colleagues commuting Collaboration No separation Greater focus of space work and makes it More workers Lack of physical True leadership Team individual work difficult to Extra costs to taking up connection and easily dynamics styles recognised disconnect work from digital meetings on recognisable shift home collaboration Financial IT challenges (user error / IT Culture Healthy food limitations) Building resilience choices & Loss of physical and learning more savings on Financial proximity with about team purchasing Lack of savings from team members and self. foods social not commuting interaction
Australian Chapter DISTRIBUTED WORKPLACE What are the positives, negatives and opportunities in Remote Working from an MANAGER perspective? Lower cost Cultural change Financial Unable to base Learn to build with teams with Are people multitask trust amongst varying degree really working? during video team members of acceptance conferences Learn to lead by outcomes challenges for instead of sight Tap into talent Change to more traditional from further create mutual No visibility of Trust managers to no afield (distance staff trust longer physically no longer an Recruitment supervise teams Less issue) distractions Provide Productivity from 100 flexibility to different Building Trust bring on new questions talent Lack of More direction at productive staff Hard to detect times Difficult to toxic where it works Harder to address HR behaviours communicate issues ) Can’t across team conduct Video calls are sensitive impersonal HR compared to Some staff Leadership Employees feel Technology discussions face-to-face have more IT less accessible Happier staff challenges where it works Less face time No ability to Develop inter- Cultivate an Learn more train engaged team personal skills to about team mentor and lead through culture Happier and Creates members Rose Thorn Bud Employees manage communication more through opportunity seem happier L&D Skills gap for learning / productive purposely Well being employees connecting upskilling
Australian Chapter DISTRIBUTED WORKPLACE What are the positives, negatives and opportunities in Remote Working from an OCCUPIER / ORGANISATION perspective? Difficult on boarding, team Unseen Reduced building May have Culture productivity overheads (IT Best in class Revisit corporate recently only, not office not just best in workplace culture transfer completed a Reduce Reduced geographical & fit out) strategy major refurb corporate operational costs area culture (power, repairs Talent Organisational attraction for culture conflict If the fit out is in Minimises those who good condition, opportunity for Reduced can’t operate Revisit ‘head can use it to Transfer of operational costs May impact in normal 9-5 organisational Depreciating fit waive make good office’ model - Knowledge customer culture/morale out being unused hub & spoke? engagement decreases Could be Committed lease Additional FM term / Dead rent Financial expenses Build resilient Can be pitched with vacancy organisation Tap into Strategy as an incentive Cross Dis-engaged Increase / new for attracting and cultivation of teams update sustainabilit retaining talent teams - loss of infrastructure y metrics opportunity - Reduce Reduce CRE due to occupancy costs Geographical geography footprint coverage Bring IT Employee HSEQ could be IT infrastructure environment into Greater regional may not support Experience / compromised - the 21st century spread. Open remote working WHS Use some of the new markets Paying for Reduce overall savings to unutilised space occupancy costs compensate employees for Reinvest savings Dispersed remote working IT environment Flexibility for all into higher grade costs workforce, harder not conducive for staff of fit out and Can now afford to Paying for to engage with all remote working amenities get into higher at once unutilised grade buildings space
Australian Chapter DISTRIBUTED WORKPLACE What are the positives, negatives and opportunities in Remote Working from an LANDLORD perspective? Increased appetite for Look to Smaller or If surplus fit out accommodate Metro sites in situ is in Uncertainty tenant’s Higher Vacancy good condition, Flexibility Sustainability hinders flexibility needs could be improvements investment Sustainability repurposed Higher Create more incentive Reduce lease Gov Policy separate demand by terms due to banning tenancies to occupiers need for Value evictions corporate flexibility Higher Potential operational Revisit existing Loss of income. Incentives from costs with more model - smaller Less tenants Asset class tenancies footprints government downgrade i.e. Higher net rent Reduction in per square blue chip Tap into a Tenants occupier broader tenant metre with occupying demand more tenants market smaller Less footprints operational Re-design costs (power, Work with landlord Rent and repairs) More tenants to tenant not offering outgoings Opportunity to Faster wear manage within against tenant offer space in Demand and tear on building Provide diverse other locations and use plant & equip. spaces & Services locations within and portfolio Defaulting on technology provision Provide higher rent Upgrade suit Diversify space, of Higher rent due service levels creating greater Unpredictability to provision of and receive Diverse tenant communities of usage greater higher rent needs flexibility Greater communication with tenant
Australian Chapter DISTRIBUTED WORKPLACE Reframing the problem How might we? • Create a stronger culture for distributed working for the individual than in the office? • Make leaders more effective and trustworthy than ever before? • Create a stronger organisational culture, with imbedded flexibility? • Create better offerings so that landlords can exceed tenant expectations?
Australian Chapter DISTRIBUTED WORKPLACE The Distributed Service Provider Goals The Problem A once in a generation opportunity to HMW Create better landlord offerings so tenants have a stronger culture, redesign the landlord offering to build with imbedded flexibility? resilient organisations/tenants? The Idea Pain Points The Distributed Service Provider. Service providers and landlords have Current sentiment is that landlords often representatives allocated to an occupier or organisation to facilitate distributed work against a tenant, not with them. The working across CBD, remote and home offices (hub and spoke). An additional take of distributed working due to value add would be having a landlord offering for on-site technology drop in desks COVID-19 will likely see reduced tenant where frustrated occupiers could take their faulty tech. demand, but many still committed to leases. The Solution Benefits As more employees and organisations familiarise themselves with remote working, it’s likely they will need less space better greater flexibility. Landlords could use Benefits the tenant and is a point of vacant space across their portfolio as drop in offices to reduce employees different. Unlike co-working where there commutes. Buildings would have superb tech (high bandwidth, zero drop-outs) are community managers at each site, this and minimal distractions to act as a point of difference between working from would be a single touch point to the entire home. organisation and funnel further demand to the landlord / service provider. A landlord or service provider representative would work directly with the tenants to facilitate access.
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