The workplace of the future by Regus

The workplace of the future

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Contents Executive Summary The Workplace of the Future How our research was conducted Introducing the Workplace of the Future Seizing the opportunities Using this report

2 2 2 3 3 3

Hungry for Change A three-fold increase in the change gap Faster, broader, more uncertain change Over-performers manage change better Implications Accepts change as a state of being Hires, positions, and rewards innovators and change leaders Focuses on delivering business outcomes Operates like a venture capitalist Are you ready?

4 4 4 5 6 6 6 6 6 6

Innovative Beyond Imagination Investing in new talent acquisition Informed and collaborative – a chance to differentiate Over-performers investing more Implications Making workplace offerings relevant to increasingly sophisticated users Understands timing and network effects Connects everyone Uses technology to anticipate shifts faster than the competition Are you ready?

7 7 8 9 10 10 10 10 10 10

Global Connections Example of emerging BRIC economies Radical workplace design changes to capitalise on global connections Deep changes in asset, capability and knowledge mix Collaboration is pervasive – especially among over-performers Greater interdependency focus for workplace design Clusters of heightened ‘interdependency-awareness’ include more overperformers Need for carefully calibrated business design Implications Integrates capabilities to differentiate Builds a carefully calibrated business design Finds and eliminates integration barriers Grooms leaders Recognises importance of social connections beyond organisation boundaries Are you ready?

11 11 12 12 12 13 14 14 15 15 15 15 15 15 15

Disruptive by Nature Technology enables broader business model possibilities “Services Cloud” model is the most innovative The “Services Cloud” ‘Enterprise model’ innovation most common Collaboration imperative drives workplace model innovation Cost avoidance innovators attempting to shift the value mix Over-performers take on the ‘cost avoidance model? challenge Implications Thinks like an outsider Draws breakthrough ideas from other industries Empowers entrepreneurs Experiments creatively in the market, not just the lab Manages today’s business while experimenting with tomorrow’s model Are you ready?

16 16 17 18 18 18 18 19 20 20 20 20 20 20 20

Genuine, not just Generous Business leaders struggle to meet rapidly increasing CSR expectations CSR-related factors rising on business leader agenda Business leaders see opportunities not threats New technologies and services top of mind for CSR-focused business leaders CSR is the largest investment increase Implications Understand CSR expectations Informs but does not overwhelm Starts with green Makes work part of making the world a better place Are you ready?

21 21 21 22 23 23 24 24 24 24 24 24

Building your Workplace of the Future Table of figures

25 26

Biography of John Blackwell

IBC

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Executive Summary

The Workplace of the Future What will the Workplace of the Future look like?

To answer that question, JBA had discussions with more than 1,100 business leaders. We took these conversations, and applied a statistical analysis based on each firm’s financial performance – classified as over-performers or under-performers – to provide a unique perspective on investments in the future of the workplace. Business leaders are positioning their organisations to capture the agility demands they perceive. Our discussions about their workplace plans and challenges revealed several striking findings:

8 out of 10 leaders see significant workplace change ahead, yet the gap between expected change and the ability to manage it has tripled since 2006.

Organisations are being bombarded by change, and many are struggling to keep up. Eight out of ten business leaders see significant workplace change ahead, yet the gap between expected change and the ability to manage it has almost tripled since 2006. Business leaders view increasingly demanding teamwork (both internal and external) as an opportunity to differentiate their workplace models. They are ramping up their spend to attract and retain increasingly challenging, informed, and socially aware staff. Nearly all business leaders are adapting their workplace models – two-thirds are implementing extensive innovations. More than 40 per cent are changing their workplace models to become more collaborative. Business leaders are rapidly embracing the integrated thinking and broader workplace context as being at the heart of all behavioural change. The reasoning is that greater workplace interaction means that choices based on one aspect, one solution, and one idea 1

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A process used in business forecasting for reaching a consensus through a combination of face-to-face discussions, focus group forums, and surveys. This creates an anonymous solicitation of feedback for comparison and analysis by JBA experts.

no longer suffice. Organisations of all size and sector report they are moving beyond the former ‘point solution’ clichés and reconfiguring their workplaces to take advantage of these integrated opportunities. Financial over-performers are making bolder plays. These organisations anticipate increasing change – both in frequency and in complexity – and manage these changes better than their competition. They are also more expansive in their workplace approaches, collaborate more extensively, and are more open to disruptive forms of workplace innovation models.

How our research was conducted This research represents an ongoing annual study and reflects back over six years of our dialogue with business leaders on workplace challenges. Throughout this report, the term “business leader” represents a catch-all for senior executives (CEO, CFO, HR, Real Estate, and some CIO’s) with responsibility for workplace strategy. It’s worth noting that our definition of ‘workplace’ spans the broadest spectrum of all aspects of work – be that culture, values, collaboration and communication practices, existing and emerging technologies, physical space, management practices, and reward/ incentive/performance. The forward-looking leaders contributing to our study direct some of our organisations and have the greatest insight into shaping where the workplace is going for the future. We employed a Delphi approach1 for soliciting the views of 1,130 business leaders from large and small organisations around the world. Our dialogue was derived from the following mix of organisations:

Executive Summary

Nineteen per cent of organisations employ more than 50,000 employees and 22 per cent employ less than 1,000 employees. Respondents spanned every industry sector, with our geographically diverse sample spanning contributions from both emerging and established economies. As part of our research, we sought to understand differences between the responses of financial overperformers and those of underperformers. For organisations with publicly available financial information, we contrasted revenue and profit track records with the averages for those in the same industry across our sample. Organisations that performed above average on a particular financial benchmark were tagged as “overperformers”, and those below the average were labelled as “underperformers”. Throughout our analyses, we looked for insights based on these top – and bottom-half groupings. At its core, the Workplace of the Future is; • Hungry for change • Innovative beyond imagination • Globally connected • Disruptive by nature • Genuine, not generous.

Introducing the Workplace of the Future These findings – spanning diverse industries, geographies, and organisational size – paint a surprisingly similar view of the traits that we believe are needed for future success. At its core, the Workplace of Future is … • Hungry for change. The Workplace of the Future is capable of changing swiftly and successfully. Instead of merely responding to trends, it shapes and leads them. Market, socio-economic, and industry shifts are a chance to move ahead of the competition. • Innovative beyond imagination. The Workplace of the Future surpasses the expectations of increasingly demanding staff.Deep collaborative relationships allow it to surprise with innovations that make both staff and organisations more successful.

• Globally connected. The Workplace of the Future is integrated to take advantage of today’s global economy. It is strategically designed to access the best capabilities, talent, knowledge, assets, and to amplify weak signals from wherever they emanate, and apply them when/ wherever required. • Disruptive by nature. The Workplace of the Future radically challenges business models, disrupting outmoded conventions and habits. It shifts the value proposition, overturns traditional delivery approaches, and, as soon as opportunities arise, reinvents itself and its entire industry. • Genuine, not just generous. The Workplace of the Future goes beyond philanthropy and compliance and reflects genuine concern for society in all actions and decisions. Grounded in the collective insights and wisdom of more than 1,100 business leaders, we offer the Workplace of the Future as a benchmark and blueprint for delivering significant financial gains.

Seizing the opportunities Grounded in the collective insights and wisdom of more than 1,100 business leaders, we offer the Workplace of the Future as a benchmark and blueprint for business leaders, and boards of directors around the world. For many, it is an aspirational goal: some organisations already exhibit particular traits, but few, if any, embody them all. Based on our conversations and analyses, we believe that significant and immediate financial opportunities await those that create Workplaces of the Future.

Using this report This report presents findings related to various attributes of the Workplace of the Future. It draws on the rich insights from business leaders through statistical and financial analyses as well as the voices of the business leaders themselves. Each chapter concludes with some implications and thoughts about how organisations can move forward toward a Workplace of the Future.

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Hungry for Change

Hungry for Change Business leaders foresee significant change ahead. However, their confidence in their ability to manage that change is not nearly as high. So how will business leaders fare in an increasingly frenetic environment? Will they be able to respond effectively?

A three-fold increase in the change gap

In 2004, market factors, such as customer trends, market shifts, and competitors’ actions, dominated the business leaders’ agenda.

In 2006, we were surprised when two-thirds of business leaders said their organisations were facing substantial or very substantial change over the next three years. By 2008, even more business leaders – 8 out of 10 – were expecting such change.

Other external factors – socio-economic, geopolitical, and environmental issues – were seen as less critical, and rarely made it to the business leaders’ desk.

This rising change challenge will be difficult for organisations to meet. Business leaders rate their ability to manage change 22 per cent lower than their expected need for it – a “change gap” that has nearly tripled since 2006 (see Figure 1). While the number of organisations successfully managing change has increased slightly, the number reporting limited or no success has risen by 60 per cent. The change gap – Figure 1 As the level of expected change continues to rise, many business leaders are struggling to keep up. Expect substantial change 65% 06

Changed successfully in the past

57%

change gap

Expect substantial change 83% 08

Changed successfully in the past 61%

22% change gap

Faster, broader, more uncertain change So what is causing this growing gap? Constant change is certainly not new. Nevertheless, organisations are struggling with its accelerating pace. Everything around them seems to be changing faster than they can. Business leaders are wrestling with a broader set of challenges, which introduces even greater risk and uncertainty.

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However, by 2008, business leaders are no longer focused on a narrow priority list. In 2008, business leaders stated the greatest external factors affecting the workplace as;

48%

Market factors

People skills

35% Technological factors

People skills are now just as much in focus as market factors, and environmental issues demand twice as much attention as they did in the past. Suddenly everything is important. And change can come from any direction. Business leaders find themselves – as one put it – in a “white-water world”. Business leaders are most concerned about the impact of three external forces on their workplaces: market factors, people skills, and technology (see Figure 2). Workforce expectation shifts, competitive threats, and industry consolidation continue to weigh on their minds.

Hungry for Change

Business leaders are also searching for industry, technical and particularly management skills to support expansion and replace an aging generation X staff who are exiting the workforce. They rated talent challenges as the top issue for workplace stability – even higher than regulatory and budgetary hurdles. Business leaders also described how technological advances are reshaping their workplaces, creating new value chains, influencing product and service development, and changing how they interact both inside and external to their organisations. Amongst the commonly stated concerns of business leaders are; • Considerable market dynamics demanding extreme staff agility • Challenges in acquiring and retaining the best talent • Technology and in particular social networking is driving huge changes.

Over-performers manage change better When we studied the financial over-performers in our sample, it was apparent that their change gap was much smaller than that of under-performers. The smaller change gap is not because they face fewer challenges or expect less change; in fact, overperformers actually anticipate more change. Over-performers are simply more successful at managing workplace change. The key to successful transformation is fundamentally changing the organisation’s mind-set. For large organisations, it is easy to be complacent – to realise successful mind-set change, organisations cannot (and must not) shrink from challenging and tackling outmoded workplace habits and conventions.

The top three change drivers in 2008 – Figure 2 In 2008, business leaders rated market forces, people skills, and technological factors as the three external forces with the greatest impact in their organisations. Market factors

84%

67%

48%

People skills

42%

44%

48%

41%

35%

Macro-economic factors

Globalisation

Regulatory concerns

Technological factors

33%

Socio-economic factors

Environmental issues

Geopolitical issues

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Hungry for Change

The change gap is smaller for over-performers – Figure 3 Because over-performers manage change well, they can get ahead of – and even be the drivers of – workplace change

19%

85% 66%

Expect substantial change

change gap Over-performers

Changed successfully in the past

54%

83%

75% of organisations stated their approach to change was informal, ad hoc, or improvised. In contrast, the Workplace of the Future defines and manages change as robust interdependent programmes, structured around and driven to deliver defined business outcomes.

Focuses on delivering business outcomes In a 2008 study of change management practices, 75 per cent of organisations surveyed said their approach to change management was usually informal, ad hoc, or improvised.

In contrast, the Workplace of the Future defines and manages change as robust interdependent programmes, structured around and driven to deliver defined business outcomes. It tracks the change gap tangible business benefits of workplace change Under-performers and management effectiveness.

29%

Strong workplace change management is seen as a core competence throughout all levels of an organisation and is nurtured as a professional Clearly, the ability to change and adapt workplaces discipline, not an “art”. quickly and successfully is a critical skill. Here Operates like a venture capitalist are a few insights into how the Workplace of the The Workplace of the Future establishes Future approaches change. processes and structures that inspire innovation Accepts change as a state of being and transformation. For the Workplace of the Future, change within This environment actively manages a portfolio the organisation is a permanent state. In today’s of workplace strategies and investments, environment where products, markets, operations, protecting and supporting the fledgling ideas and business models are in a permanent state of whilst systematically weeding out the flux, clear management values and goals provide weak ones. alignment and cohesion, and create a culture where employees are comfortable with change and unpredictability.

Implications

Are you ready?

Hires, positions, and rewards innovators and change leaders The Workplace of the Future is home to visionary challengers – people who question workplace assumptions and stereotypes. They are willing to suggest radical, and what some might initially consider impractical, alternatives. It also strategically places charismatic leaders who set direction, inspire, and move the organisation forward. High performers earn differentiated rewards to reflect their contribution to inspiring and changing the workplace.

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• Does your organisation have a healthy appetite for workplace change and its web of interdependencies? • Have you seeded your organisation with visionary challengers and provided them with the freedom to effect meaningful change? • Do you manage workplace change as a structured integrated programme and proactively measure the effectiveness of each change? • Do you have robust processes in place to incubate new workplace products/ services and business model concepts – and redirect investment when required?

Innovative Beyond Imagination

Innovative Beyond Imagination Business leaders are investing in creating workplaces that serve increasingly sophisticated and demanding workforce.

They are also investing heavily to ensure their workplaces are fit to seize new talent opportunities. The physical space in the Workplace of the Future must be a place that delights, inspires, stimulates, and engages, rather than being merely a daily trudge. However, what will it take to convert these investments into tangible financial gains?

Investing in new talent acquisition

Business leaders are investing heavily in groundbreaking workplace practices and philosophies (see Figure 4), and amongst the new developments that emerged in our 2008 study was the trialling of “trustbased workplaces”. Over the coming three years, 27.5 per cent of business leaders perceived significant opportunities for new trust-based work practices and are planning substantial investment. This is a 19 per cent increase over the past three years, where previously only 23 per cent stated they were investing.

In every developing economy, the workforce is becoming an increasingly sophisticated, articulate, and demanding resource. From the aging baby boomers to the young smart Generation Y alike, they are totally fluent and comfortable in the use of a broad range of sophisticated technologies – be it networked computing, mobile telephony, 24x7 remote access, and social networking.

Google case study

As a direct result, business leaders reported that both existing and especially prospective employees are finding it increasingly demeaning to be harnessed to less sophisticated and constrained workplaces than they have outside their working environment.

Team members then enthusiastically contribute their time on a ‘voluntary’ basis.

One of the initial adopters of trustbased workplace models was Google. At Google, managers do not have direct reporting staff and teams. Instead, managers must demonstrate to team members that their initiative, product, or service is something to be passionate about.

If the manager fails to maintain the energy and inspiration for their programme, team members are at liberty to withdraw their contribution.

Investment in new trust-based work practices – Figure 4 More than two-thirds of business leaders see opportunities – and are investing in – new trust-based work practices Negative impact 19% Positive impact 67%

Investment in next 3 years No impact 19%

27.5% Investment in past 3 years 23.2%

19% Investment increase

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Innovative Beyond Imagination

Trust forms the organisational foundation for effective communication, employee engagement/ retention/ motivation, and contribution of discretionary energy, the extra effort that people voluntarily invest in work. When trust exists in an organisation, everything becomes easier and more fluent to achieve. The concept of trust-based workplaces involves migrating an organisation’s entire workforce from the classic employment contracts to outcomebased contracts and measures where staff are granted full temporal and spatial autonomy. To simplify the understanding of this concept, trust can be considered as consisting of three interrelated components; • The capacity for trusting means that your total life experiences have developed your current capacity and willingness to risk trusting others. • The perception of competence comes from your perception of your ability and the ability of others with whom you work to perform competently at whatever is needed in your current situation. • The perception of intentions is your perception that the actions, words, direction, mission, or decisions are motivated by mutually serving rather than self-serving motives.

Informed and collaborative – a chance to differentiate In addition to new trust-based workplaces, business leaders are facing steeply rising expectations from increasingly informed and collaborative employees. A recent survey found that

83% of employees felt unrestricted internet access was essential to their work.

39% used a mobile device to share information with an external source.

31% sent text messages to sources external to the organisation.

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Staff now have far greater opportunities to access sources of information, and the enterprise itself is no longer the definitive authority. In a recent survey of 8,400 employees, 83 per cent felt it was essential to have unrestricted access to the internet at their workplace, 39 per cent used a mobile device while at work to share information with a source external to the organisation, and 31 per cent sent text messages to sources external to the organisation. With currently over 1.5 billion users of the internet world-wide, it is projected that, helped by the uptake of mobile and other internet-enabled devices, the number internet users will double by 2012 (or a third of the entire global population). Social networks and internet collaborations offer organisations vast opportunities to amplify ‘weak signals’ – the tips, hints, market developments, product innovations, and inspirations that would have simply gone unheard in previous workplace situations. The opportunities presented by social networking collaborations in the workplace to coral like-minded people to socially network and pool their knowledge have not been lost on forward-looking business leaders. Today, 80 per cent of the business leaders interviewed stated they perceived a positive impact on their operations from internet collaborations beyond the boundaries of their organisations (see Figure 5). Over the coming three years, 28 per cent of business leaders stated they were planning to invest in social networking tools for their workplace – an incredible 76 per cent increase compared to investment over the past three years. Were this not enough, an increasing number of industries reported their customers were swapping passive involvement for much deeper involvement. This indicates a change of consumers becoming prosumers – creating entertainment and advertising content for their peers, and even generating their own ‘excitement’. This is significantly raising the expectation stakes in the workplace. Equal numbers of business leaders perceived the informed and collaborative customer as both a threat and an opportunity. Despite the potential challenges and downsides, business leaders were, on the whole, optimistic. Many business leaders considered these collaborative customers as an opportunity to hone their workplace strategies to demonstrate differentiation.

Innovative Beyond Imagination

Investment in socially networked workplaces – Figure 5 Business leaders are focused on the opportunities presented by social networking and internet collaboration, and are investing heavily

Negative impact 8%

Positive impact 80%

Investment in next 3 years 27.6%

No impact 12% Investment in past 3 years

76%

15.7%

Investment increase

Over-performers investing more Financial over-performers are currently devoting around a quarter of their total annual workplace budgets on new practices such as “trust-based” principles. Over the next three years, these investments will increase substantially – by up to fifty plus per cent. However, the investment by overperformers in informed and collaborative workplace

developments will outpace other developments to keep increasingly sophisticated staff connected to ‘weak signals’. Over-performers are planning a 63 per cent increase in social networking and similar collaborative investments. This continually redefining of value propositions by over-performers is in stark contrast to underperformers, who are planning to make only a 22 per cent increase in their investments (see Figure 6).

Over-performers are increasing their workplace investments – Figure 6 Over-performers are investing heavily in new workplace models and creating informed collaborative staff

31% 27%

Investment increase Over-performers

19%

17%

Past investment

Future investments

Past investment

63%

Future investments

14%

15% 18%

Investing in new talent acquisition

18%

Investing in informed collaborative staff

22% Investment increase Under-performers

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Innovative Beyond Imagination

Implications

Uses technology to anticipate shifts faster than the competition The Workplace of the Future aims beyond Market insights are critical in the Workplace articulated wants and needs, creating of the Future. It recognises the value of the groundbreaking services and experiences that information collected through its many channels were never asked for – but are precisely what and actively mines it for weak signals and staff desire. Here are some thoughts about how it insights. It uses emerging technologies, such as accomplishes this. virtual worlds, to gain insights in new ways of working. It also puts systems in place that allow Making workplace offerings relevant to very fast feedback cycles. increasingly sophisticated users New workplace offerings and services deliver economies of scale, yet each area creates its own culture, needs, and expectations.

When workplace preferences and demand start to shift, it knows before the competition.

The Workplace of the Future constantly experiments and learns how to optimise and harmonise the balance. It analyses potential opportunities to find niches, white space, and weed out complacent, out-moded practices where it can capitalise on core strengths.

Are you ready?

Understands timing and network effects There is a fine line between “beyond” and “too far”. The Workplace of the Future understands the need to introduce innovation that the workforce is ready to accept and works to perfect its introduction. It exploits the early adoption effects of social network to take a commanding early lead. Connects everyone Employees at all levels have every opportunity to connect through real-time information, online interaction or, where possible, in person. The Workplace of the Future fosters deep relationships between leadingedge internal/external ‘customers’ and employees – those sophisticated early adopters who determine success or failure. The workplace is used to test developments and interventions with these communities and collaborates with them to develop work scenarios. In the Workplace of the Future, business leaders invest to integrate its systems and effectively reduce ‘clutter’ – the redundant business processes that merely serve to impede or stall work effectiveness. This allows the workplace to become an integrated, proactive, and integral part of the business rather that merely a daily trudge.

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• Which of your interventions are breaking new ground, opening entirely new workplace innovations? What can you learn from them? • Are you systematically evaluating potential developments? How do you realise the effectiveness of new developments across the organisation while ensuring relevance to individual departments and specific operations? • When workplace and labour force preferences shift, are you the first to understand and act on this, or do your competitors react more quickly? • Are you effectively integrating disparate data and systems to provide new insights for your workforce?

reduce ‘clutter’ In the Workplace of the Future, leaders invest to integrate systems and reduce ‘clutter’ – this enables the workplace to become an integrated, proactive part of the business rather that merely a daily trudge.

Global Connections

Global Connections Business leaders face many choices when responding to global connection and integration.

How far should they encourage employees to socially network beyond the convention of their local work environment? How should they design their workplaces to take advantage of capabilities located in other parts of the world? The successful workplace of the future will be defined by its ability to listen to weak signals – the faint comments and insights that emerge from previously overlooked economies and/or distant sources. Given the pace of development in emerging economies, and the nature of global change, filtering these weak signals cannot be done on a singlehanded basis. It demands collaborations, alumni, outreach, and levels of contribution that can only be nurtured and delivered though carefully structured and managed social networking.

Example of emerging BRIC economies To underline the need to listen intently on a global perspective, we have reflected on the Brazil, Russia, India, China (BRIC) economies. A deep-seated global crisis often presents a time of redrawing the economic map to reflect the shifting balance of power. There is widespread recognition that the old elite clubs dominated by Western nations no longer reflect today’s reality – power has rapidly shifted from the West to the BRIC economies.

This is not to overstate the resilience of these emerging economies, it is simply to highlight that they will be cushioned from the prevailing economic winds by their vast resource potential – and this amplifies the impact of their ‘weak signals’. In 2007, the BRIC economies represented just 18 per cent of the GDP of the G20 countries. By 2050, Goldman Sachs is projecting that the BRIC GDP will be 20 per cent larger than the combined GDP of remaining G20 countries – a stunning 18-fold growth. The BRIC economies are also at the vanguard of technology advances, be it information sciences, nuclear engineering, emerging technologies, or space exploration – strikingly, all four BRIC countries are space nations with their own communication satellites and planned missions to the moon. This staggering financial growth, technology advances, and unparalleled depth of intellectual resources means any organisation concerned with competitive positioning must ensure their workplaces are intently listening to – and capable of responding to emerging weak signals, from whatever source. In 2007, BRIC GDP was just

18% of the overall G20. By 2050, it’s projected that BRIC GDP will be

By their very size, these economies are mammoth powerhouses that have the capacity to change market balances in the blink of an eye. Two specific examples are Chinese state investment in the US financial system and Indian investments in European automotive industries. While the ‘big three’ US carmakers – GM, Chrysler, and Ford – are on the brink of bankruptcy, the booming Chinese car industry is moving forward thanks to a rapidly growing domestic market and to the ever improving quality of local brands which benefited from partnerships with western manufacturers.

20% larger than the GDP of the remaining G20 – a stunning 18-fold growth.

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Global Connections

Radical workplace design changes to capitalise on global connections In this globally connected, instantly accessible and rapidly evolving economic world, business leaders see tremendous opportunities to expand their global reach, and tap into new sources of innovation and expertise. Traditional views of labour arbitrage and product/ service development are being replaced by a new focus on global integration. This means new workplace designs that facilitate faster and more extensive collaboration on a worldwide scale and rapid reconfiguration when new opportunities appear. In our interviews, we explored how business leaders are recalibrating their workplace designs to take advantage of increasing global integration. Amongst the discussion points probed were; • Extent of change to mix of assets, capabilities, and knowledge • Extent of collaboration plans • Sourcing of ‘products’ and ‘services’ • Globalisation vs. localisation of operations • Extent of partnering • Support for multiple cultures Their responses are outlined in Figure 7. Business leaders often had ready answers for these potentially complex workplace questions and options. Clearly, they had been thinking through these issues for some time because there are critical levers to exploit the global integration opportunities. It was striking that, irrespective of company size or geographic coverage, business leaders were equally engaged and enthusiastic about these topics, which suggests optimised workplace integration is crucial to organisations of all size and geographic scale. Old models of static locations, fixed teams, and command-control management no longer work – consequently, it’s crucial to continually revisit the mix of business skills and capabilities.

“We must strive towards global connections while maintaining local sensitivity – and this requires a balanced, harmonised approach to the workplace.” FTSE 100 business leader

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Deep changes in asset, capability and knowledge mix Across our entire interview sample, more than half plan to make deep changes to the mix of workplace assets, capabilities, and knowledge across their organisations. Rapidly shifting staff expectations and new demands are driving many of these changes, reflecting the need to move away from an ‘operational’ and ‘functional’ workplace focus to an employee interface focus. This means moving workplace control away from the traditional CFO domain where the workplace is alltoo- often regarded as a glorified facilities management task and embracing a new enterprise-wide domain with its resultant new skills mix for the organisation. The need to span new cultures and geographies driven by such cost avoidance trends as outsourcing and partnering is another reason for updating the workplace mix. The old workplace models of static locations, fixed teams, and command-control management no longer work – consequently, it is crucial to continually revisit the mix of business skills and capabilities, and challenge workplace conventions. Though business leaders had a wide variety of reasons for changing the mix, they agreed on one point: it is challenging to do successfully and it requires a robust business case in order to provide clear direction. One business leader saw this as his “most important shift”, but also “the space with the most change and difficulties”.

Collaboration is pervasive – especially among overperformers Eighty-five per cent of business leaders aspire to reach across and beyond organisational boundaries to capitalise on global workplace collaboration and integration opportunities – with more than half planning to do so extensively. We also found that over-performers are 20 per cent more likely to promote extensive collaborate across their workplaces than under-performers. This reinforces what we discovered in our previous Workplace of the Future studies: extensive collaborators outperform their competitive peers. Business leaders see collaboration and external partnering as a source of valuable talent – an ingredient that is in short supply. In short, collaboration has shifted from tactical to strategically critical.

Global Connections

Greater interdependency focus for workplace design

Using data clustering techniques, we found four distinct approaches to the focus on interdependency, outlined in Figure 8.

Discussing optimum workplace choices with business leaders, we found the majority had a heightened awareness of how decisions and plans in one area were increasingly impacting other areas of the organisation. Even their responses formed an interlinked pattern or design, not ‘merely’ a series of independent judgments.

More than sixty per cent of business leaders are implementing strategies that recognise the power of interdependencies for a globally connected workplace.

Business leaders are embarking on major changes to workplace integrations and designs – Figure 7 We asked business leaders to score their workplace integration plans along six continuums. The majority of answers lean towards greater global connections

Globally oriented

Equally important

Deep change to assets, capabilities, 57% & knowledge mix

32%

Locally focussed

11%

Maintain current mix

55%

35%

10% Do everything in-house

Globalise products and services 40%

33%

27%

32%

29%

Collaborate extensively

Optimise operations gloablly 39%

Grow through partnerships 24%

Drive mutiple cultures 30%

50%

Localise products and services Optimise operations locally 26%

34%

36%

Grow workspace organically Strive for single culture

Business leader’ responses fall into four distinct clusters – Figure 8 The greatest drive for workplace interdependencies stems from organisations with a globally-connected focus

Deep change to assets, capabilities, & knowledge mix

Maintain current mix

Collaborate extensively

Do everything in-house

Globalise products and services

Localise products and services

Optimise operations globally

Optimise operations locally

Grow through partnerships

Grow workspace organically

Drive multiple cultures

Strive for single culture

Globally oriented

Equally important

locally focused

Highly interdependency aware work places

Ambivalent about workplace dependenices

Some interdependency considerations

Deploys ‘point’ solutions

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Global Connections

Clusters of heightened ‘interdependencyawareness’ include more over-performers

Organisations are partnering extensively to harness global talent, drive out redundant/ inappropriate habits and conventions, and stretch workplace boundaries to deliver the required agility to match market dynamics and expand their capabilities.

Examining the clusters more closely revealed a higher percentage of over-performers in the two ‘workplace interdependency-aware’ clusters (see Figure 9). The similarity of the two outperforming clusters implies that business leaders of the more financially successful organisations display heightened appreciation of achieving a balanced approach to their workplace design – harmonising HR/ ICT/ physical space/ cultural and mind-set change.

Balanced approach to workplace design The more financially successful organisations display heightened appreciation of achieving a balanced approach to their workplace design.

Over-performers gravitate towards interdependency-aware workplaces – Figure 9 More over-performers are found in the ‘workplace interdependency-aware’clusters

71%

39% 32%

17%

Interdependency-aware organisations are... Over-performers

12%

Highly interdependency- Some interdependency Ambivalent about aware workplaces considerations workplace dependencies

Deploys ‘point’ solutions

17% 21% 29% 33%

Need for carefully calibrated business design From our discussions, it is also clear that business leaders’ approaches to global connection and workplace optimisation are uniquely tailored to their respective businesses – there’s no common ‘one-size fits all’ across different businesses. For example, local workplace hub provision must reflect brand positioning and talent demands. Business leaders told us the case for global optimisation of back-office functions like Finance and HR is clear-cut. However, optimisation of core workplace provision varies – for instance, specific go-to-market processes may require local knowledge and expertise to respond to a short-lived demand or emergent competition. 14_www.regus.co.uk

22% Interdependency-aware organisations are... Under-performers

“The key for effective business is to provide a workplace that’s every bit as agile as you would like your staff to be”

One business leader explained, “Our business model is based upon consolidation and globalisation of back-office operations to reach critical mass and localisation of workplacespecific components closely related to local markets.”

Global Connections

Business leaders also stressed the importance of having a common corporate culture, while sustaining the diversity of local geographic cultures. “The key for effective business is to provide a workplace that’s every bit as agile as you would like your staff to be,” one business leader observed. “If you need to reconfigure people resources at a moment’s notice to respond to a specific market condition, then you must offer workplace resources that support, collaborate, and continually learn”. A good example of this is an airline needing to respond to unexpected weather conditions and maintain strong, fluent communications with their customers. Staff need to respond at a moment’s notice, and reconfigure team dynamics “on demand”.

Implications Even if your Workplace of the Future never becomes “globally connected”, it is still crucial to;- listen to “weak signals” about emerging competitors around the world; and harmonise workplace interdependencies to maximise internal connections for fluent dialogue.

Finds and eliminates integration barriers Flexible assets allow the Workplace of the Future to be more agile in the marketplace. Location decisions are made based on market and operational needs, not dictated by property deeds or restrictive leasing arrangements. Modular information technology, such as serviceoriented architectures, enables rapid responses to new products and services opportunities and faster integration of new partners. Grooms leaders In the Workplace of the Future, management development programmes identify high-potential candidates throughout the entire organisation, not just from headquarters. Future leaders must be stepped through multiple experiences, exposing them to a variety of remote and virtual workplace scenarios and cultures.

These programmes step future leaders through multiple experiences, exposing them to a variety of remote and virtual workplace scenarios and cultures.

Recognises importance of social connections beyond organisation boundaries Social networking and real-time collaboration Integrates capabilities to differentiate tools improve communication, amplifies weak The Workplace of the Future searches worldwide signals, and close the distance between people for sources of expertise, resources, assets, and in different locations. Good ideas develop and weak signals that can help it differentiate. Finding spread quicker, and problems are solved faster. the right capabilities at the right time is much more important than finding the cheapest. These ‘sources of excellence’ must be integrated into workplace so that the best capabilities, • Are you effectively integrating differentiating knowledge, and assets can be assimilated and capabilities, knowledge, and assets into used wherever required. networked workplace centres of excellence? Here are some ways it capitalises on global connection opportunities.

Are you ready?

Builds a carefully calibrated business design The Workplace of the Future is tightly integrated and optimised across the entire business design. It incorporates a strategic plan for which capabilities to keep in-house and where it is best to partner. The entire workplace design is completely centred on a financially robust business case that harmonises all interdependencies of culture, values, collaboration and communication practices, existing and emerging technologies, physical space, management practices, and reward/ incentive/ performance.

• Does your organisation have an integrated workplace design capable of assimilating weak signal from wherever they emanate (even if your organisation does not have a global footprint)? • Do you have a detailed financial business case and structured benefit realisation plan for future workplace strategies? • Are you developing leaders that think and act virtually across multiple cultures? • Do you nurture and support social connections to improve integration, innovation, and competitive response?

The design also understands, predicts, and plans for all anticipated benefits, thereby ensuring they become fully realised. Regus Group plc The Workplace of the Future_ 15

Disruptive by Nature

Disruptive by Nature Most business leaders are embarking on extensive workplace model innovation. And overperformers are pursuing even more disruptive workplace model innovations than their underperforming peers. But will these bold moves pay off? What will it take to truly differentiate?

Technology enables broader business model possibilities Business leaders told us they are changing their workplace models because it is increasingly difficult, if not impossible, to differentiate based on the mere calibre of fit-out, a coat of paint, or a shuffling of space alone. However, they stressed another reason: they simply have more options now. As one business leader explained, “We’re starting to think about things we couldn’t do before”.

Business leaders are driving extensive workplace innovations – Figure 10 Virtually all business leaders are adapting their workplace models, with two-thirds implementing extensive innovations Workplace innovation over the next 3 years Moderate 29%

Extensive 69%

Figure 10 highlights the pace of innovation being considered over the next three years.

Limited or none 2%

With the internet, organisations can now seamlessly shift between national, multinational, transnational, global, and back again – true borderless collaboration.

3-fold increase in the volume of projects There’s increased ‘virtual’ pressure across the workplace stemming from; a 3-fold increase in the volume of projects being handled by each employee, increased outsourcing of non-core services, and reduced headcount.

Furthermore, business processes are becoming increasingly virtual. This is in part due to the changing economic wind demanding the workplace delivers more, better, and faster, with less. However, there is also increased ‘virtual’ pressure across the workplace stemming from:a three-fold increase in the volume of projects being handled by each employee, increased outsourcing of non-core services, and overall reduced headcount. New delivery channels and electronic methods of disseminating workflow are overturning traditional process conventions. And these advances are not just changing the way individual organisations work – they are creating entirely new industries.

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We explored the different types of workplace model innovation being considered and implemented by business leaders. In particular, we asked about innovations such as a “ServiceCloud” model, an ‘enterprise model’, and a ‘cost avoidance model’.

“Services Cloud” model is the most innovative Over the last few years, internet technologies have redefined connections to remote individuals, and the business world has taken note. Developments like blogs, wikis, unified communications (combining VoIP, instant messaging, video, etc), and websites such as eBay, YouTube, Facebook, and MySpace have all contributed to a meteoric shift in online networking and collaborative content generation.

Rapid evolution Learning from the rapid evolution and massive success of online networking services, organisations are now incorporating similar techniques into their own workplace models.

Disruptive by Nature

While the enterprise model is most prevalent, “Services Cloud” is the fastest growing innovation – Figure 11 Business leaders are largely focused on reconfiguring their workplaces to specialise and collaborate

Cost avoidance model innovation 23%

Enterprise model innovation 39%

Multiple types 20%

“Services Cloud” model innovation 18%

Types of workplace model innovation considered “Services Cloud” model Learning from the rapid evolution and success of online networking and content services, the “Services Cloud” model fosters a collaborative, real time, knowledge-sharing workplace portal that delivers significant time-to-market, cost, and transformational value for staff.

‘Enterprise model’ Reconfiguring and specialising the workplace model to deliver greater value on an enterprisewide basis by rethinking what is done in-house vs. through collaboration.

‘Cost avoidance model’ Changing how workplace costs are dispersed and avoided through new value propositions and financial models.

Learning from the rapid evolution and massive success of these services, organisations are now incorporating similar techniques into their own workplace models, blurring the boundaries between consumer and enterprise technology. An early example of this is streaming online video, popularised by sites such as YouTube and the BBC iPlayer, which is now being used to disseminate information throughout anorganisation. Taking these principles further,forward-thinking organisations are introducing structured platforms – referred to as the “Services Cloud” – that foster a collaborative, real time, knowledgesharing workplace portal that can deliver significant time-tomarket, cost, and transformational value for staff. While currently only 18 per cent of business leaders are implementing a “Services Cloud” innovation model (see Figure 11), it is by far the fastest growing workplace innovation and is projected to overtake the enterprise model by 2012.

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Disruptive by Nature

The “Services Cloud” Real time collaboration on specific projects between global, regional, and local knowledge worker centres through unified communications technologies is one of the first benefits of web 2.0.

“Services Cloud” “Services Cloud” makes it easier for colleagues to simulate face-to-face conversation and reduce the possibility of any misunderstandings.

Staff are encouraged to collaborate to solve specific business problems using the best delivery resources, regardless of location. Best-in-class talent can contribute to projects at a moment’s notice, irrespective of physical separation.

Collaboration imperative drives workplace model innovation The main message from proponents of ‘enterprise mode’ innovation is that going solo is increasingly difficult – effective workplaces are wholly dependent on enterprise-wide collaboration. Business leaders can no longer afford to invest scarce funds and management resources in activities that are not differentiating; they must specialise and focus their workplace endeavours. As one U.S. business leader stated, “We must collaborate to survive; there are fewer things that will be cost effective to do on our own. Our workplaces will increasingly do less inside the organisation and more with external partners.”

By assimilating video, voice, and messaging, While 39 per cent of business leaders presently these technologies make it easier for colleagues to simulate face-to-face conversation and reduce maintain control of their workplace models within their enterprises, 71 per cent – nearly twice as the possibility of any misunderstandings. many – are planning or considering focusing on In many ways, this is similar to open-source collaboration models. The clear eventual software philosophies – allowing users to work in outcome of this shift will be a migration to a highly public, collaborative manner to use, “Services Cloud” model innovations. change, and improve the software, and to Business leaders told us they are pursuing redistribute it in modified or unmodified forms. “Services Cloud” model innovations to gain The primary difference in the workplace context efficiencies, fend off talent competition wars, and is that “Services Cloud” principles are avoid “death by workplace complacency”. predominantly focused on a defined project, with Their end goal is to offer staff a differentiated set deliverables and a particular process to workplace value proposition that secures new follow. Within such a virtual work environment, capabilities, which percolate to the brand, the remote colleagues can use their combined customer, and to the financial bottom line. experience, knowledge, and creativity, avoid duplication of work, and complete the given task more quickly.

Cost avoidance innovators attempting to shift the ‘Enterprise mode’ innovation value mix most common Among those pursuing ‘cost avoidance model’

Among those making extensive changes to their workplace models, ‘enterprise model’ innovation is today’s common choice. Today, 44 per cent of business leaders are focused on ‘enterprise model’ innovation or are implementing it in combination with other forms of workplace model innovation, but this is on the wane. It is projected that, by 2012, today’s trend for ‘enterprise model’ workplace innovation will progressively be overtaken the “Services Cloud” model innovation.

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innovations, nine out of ten are busy restacking the workplace for improved service and value mix. Half are working on new workplace structures. Business leaders are endeavouring to incorporate more services into their workplace portfolios and changing financial models to prune basic costs and operating overheads. Many are embarking on cross-charging internal operating divisions for space. Depending on the particular needs of their respective organisations, some are bundling workplace services in an attempt to create economies, while others are unbundling to offer staff a menu of choices. At the same time, staff expectations are ramping up, which is leading

Directors’ Report Business Review

to demands for more transparency to services. Interestingly, a number of business leaders are using ‘cost avoidance model’ innovation as part of their geographic workplace strategies. Unfortunately, nothing in the ‘cost avoidance model’ innovation addresses the fundamental issues of physical space cost. Unless entire floors and buildings can be released, then tinkering with peripheral costs will remain just that – tinkering, and cannot be realistically described as innovative.

‘Cost Avoidance model’ Unfortunately, nothing in the ‘cost avoidance model’ innovation addresses the fundamental issues of physical space cost.

Cloud” model innovation (see Figure 12). However, they are also planning 40 per cent more ‘enterprise model’ innovation than underperformers. The question is: Are these overperformers pursuing more “Services Cloud” model innovation because they have the clout to do so? Or, are they over-performers because of their insight and inclination to continuously question workplace norms? From our business leader conversations, we are convinced it is actually both – a reinforcing cycle. Workplace innovation successes can provide the financial means and industry position to attempt bolder moves, which, in turn, can improve business performance. “When the workplace model is innovative, operations and product will follow automatically.” E.U. based business leader.

Over-performers take on the ‘cost avoidance model’ challenge Consistent with the overall sample, overperformers are highly interested in “Services

Implications The Workplace of the Future constantly searches for new ways to be effective and productive. Here are some ideas on how it develops a disruptive mind-set.

Over-performers are more likely to pursue “Services Cloud” model innovation – Figure 12 In general, over-performers are increasingly likely to attempt the more challenging type of workplace model – “Services Cloud” innovation

45%

33% of

33% 22%

“Service Cloud” model innovation

Enterprise model innovation

Over-performers 17%

Cost avoidance model innovation

20%

20% of 36%

Under-performers

44%

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Disruptive by Nature

Thinks like an outsider The Workplace of the Future is about blue-sky, green-field thinking – it breaks conventions and dispels and notion of work being a daily trudge. The goal is to inspire staff and spark innovation by thinking about ‘starting over from scratch’. It finds ways to work with people and organisations that are not part of the industry status quo to develop new workplace models. It challenges every assumption of its workplace model – just as an outsider would. Draws breakthrough ideas from other industries The Workplace of the Future is a student of other industries because it realises that gamechanging plays spread like wildfire. Leaders scour labour, demographic, and technology trends that are shaping other business sectors and segments, and consider how they could be applied to its own industry and workplace model. Empowers entrepreneurs The Workplace of the Future understands the challenges of achieving business model innovation from within. It empowers its entrepreneurs with support, funding, and freedom to drive disruptive change, which may threaten competitors’ current workplace models – and even its own. Experiments creatively in the market, not just the lab The Workplace of the Future often pilots models, obtaining real-time feedback, and making iterative adjustments. It even uses virtual worlds – such as Second Life – to “test” workplace models and apply what it learns to its “real life” business.

New workplace models New workplace models are often at odds with established conventions, creating inherent tension within the organisation.

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Manages today’s business while experimenting with tomorrow’s model New workplace models are often at odds with established conventions, creating inherent tension within the organisation. Even if the models are not directed at the same employee groups, they are still competing for resources and attention. The Workplace of the Future actively manages these potential conflicts so it can try out bold workplace model innovations, while ensuring business as usual delivers results.

Are you ready? • Is a disruptive workplace model about to transform your industry? Is it more likely to come from you or your competitors? • Do you spend time thinking about where the next workplace disruption will come from? • Are you watching other industries for concepts and workplace models that could transform your organisation? • Are you able to create space for entrepreneurs and innovative workplace models while continuing to drive performance today?

Genuine, not just Generous

Genuine, not just Generous An emerging generation of socially minded workers, customers, partners, activists, and investors are watching virtually every move organisations make. Recognising this, business leaders are investing rapidly in corporate social responsibility, especially in their workplace models. But, how far will they go?

Business leaders struggle to meet rapidly increasing CSR expectations Business leaders generally agree that employee and customer expectations of corporate social responsibility (CSR) are rapidly increasing, even in these troubled economic times. The environment is one obvious touchstone: climate change has become an urgent call to action for citizens and organisations around the world. It has sensitised both citizens and corporations to the wide array of environmental and social issues – from child labour to recycling to conspicuous consumption – which they can do something about. While customers have long cared about societal issues, their concerns are now more frequently turning into action and influencing purchasing decisions. According to a recent CSR study, 75 per cent of the organisations surveyed say that the number of advocacy groups collecting and reporting CSR-related information on them has increased over the past three years. Indeed, 2007 marked a tipping point in public consciousness of environmental issues, with an estimated 1-2 million bodies worldwide working toward ecological sustainability and social justice. “I see corporate responsibility going through three phases. People start to consider issues like the environment because they are compelled to do so. Then they realise that it actually makes business sense. Eventually they move beyond compulsion and selfish motives to become passionate because it is the right thing to do.” FTSE 100 business leader.

Meanwhile, many business leaders are struggling to put CSR into practice across their workplaces. A general perception voiced was that there’s too much talk and very little actual strategic change to the workplace to acknowledge the increasing staff expectations of CSR.

1-2 million 2007 marked a tipping point in public consciousness of environmental issues, with an estimated 1-2 million bodies worldwide working toward ecological sustainability and social justice.

CSR-related factors rising on business leader agenda Across our previous business leader studies, only three external forces have consistently ranked higher in each consecutive survey: socioeconomic factors, environmental issues and people skills. Interestingly, all three are linked to CSR. With real talent in short supply, employers CSR reputations are an important tool to attract and retain employees. Organisations are also recognising that they are being held mutually accountable, along with the public sector, for the socio-economic well-being of the regions in which they operate. Business leader concern about environmental issues and the impact of their workplaces has doubled over the past four years globally. However, this concern is not evenly distributed worldwide. Business leaders in the Americas are beginning to show more interest, but focus is increasing faster among European business leaders. Asia Pacific actually showed the most dramatic increase, with attention nearly tripling since 2004. Regulatory compliance, however, is not business leaders chief concern. As one public sector leader from France points out, “Environmental legislation is less of a problem. It is reasonably easy to be ISO 14000 certified. It is much harder to face media and political pressure from socially active environmental NGOs.”

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Genuine, not just Generous

Environmental, socio-economic, and people issues – coincidence or foreshadowing – Figure 13 Of the 9 change drivers we discuss with business leaders in each survey, only 3 continue to rise in importance

48%

People skills Socio-economic issues Environmental issues

44% 42%

15% 18% 12% 9% 2004

2006

2008

2004

Asia pacific

EMEA

Americas

Business leaders are clearly conscious of their obligation to “do no harm” and are painfully aware of the regulators and non-governmental organisations (NGOs) monitoring their every step. But, they also see tangible economic potential in the workplace from CSR. Business leaders talked at length about how CSR interacts with, and influences their workplace. There was considerable recognition that it was not just staff, but prospective employees, customers, analysts, and broader stakeholders that were passing judgement on the CSR performance of the workplace. From the responses, it was clear that the workplace is playing a critical role in differentiating the organisation – both for prospective talent, maintaining market share, and investor relations.

17%

12%

Business leaders see opportunities not threats

2008

“Customers are increasingly making choices based on the perceived performance of the organisations internal practices,” stated a Fortune 500 business leader. “Our strong commitment to workplace corporate sustainability will be a clear differentiator for us with all stakeholders.”

8% 21% 15% 21% 8% 12%

CSR in the workplace: Obligation or opportunity? – Figure 14 Business leaders are generally positive about the impact of rising CSR expectations and are rapidly increasingtheir workplace investment

Positive impact 69%

Negative impact 11% Investment in next 3 years No impact 20%

13.4% Investment in past 3 years 10.7%

25% Investment increase

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Genuine, not just Generous

New technologies and services top of mind for CSRfocused business leaders

Their CSR investments will grow by 25 per cent, which is faster than the other workplace trends we discussed such as collaborative social networking, and new talent attraction/ retention.

CSR-focused business leaders presently appear to invest more in innovative workplace technologies and services than other business leaders do. This is probably a sign that the early market focus is on “socially responsible” and “green” technologies and services.

“Over the last three years, we have invested twice as much in CSR and environment initiatives as we have in the previous 30 years combined.”

Over the coming three years, we project that the workplace CSR focus will expand beyond new technologies to an enterprise-wide “footprint” that addresses the broadest impact on the societies in which they operate.

CSR is the largest investment increase Although current CSR investment levels are modest compared to the other workplace trends, business leaders plan to spend more over the next three years.

Business leader from China

Interestingly, this pattern holds true even among emerging market business leaders (with a 22 per cent increase). “Over the last three years, we have invested twice as much in CSR and environment initiatives as we have in the previous 30 years combined,” stated a business leader from China. “Our company has extensive corporate social responsibility investment plans. We need to be a reference in this domain.”

CSR-focused leaders are enthusiastic about new workplace technology possibilities – Figure 15 The focus areas of these business leaders hold a couple of surprises. They are very interested in innovative technologies and services for socially aware staff however workplace CSR transparency is not currently a top priority Difference between the response of CSR-focused workplace leaders and the entire sample

Lower focus

Higher focus

Innovative technologies/services

Environmental initiatives

New work practices

Green energy sources

New building design

Revised commute practices

Redesigned business processes

Workplace CSR transparency

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Genuine, not just Generous

Distribution of office environmental footprint – Figure 16

Example of environmental scorecard – Figure 17

Implications

Starts with green Given the price of oil and rising concern over carbon emissions, energy efficiency is critical for organisations as well as our planet.

Many Business leaders are already moving beyond doing good and are transforming the economic performance of their workplaces through being more socially responsible. Here are some ways the Workplace of the Future approaches CSR in a more holistic manner. Understand CSR expectations Too many organisations find themselves relying on their own assumptions about what CSR means – both to staff and to the externally. Only 25 per cent of the organisations surveyed in a recent CSR study said they understood staff concerns well. For the Workplace of the Future, it is not only crucial to understand but also to anticipate workforce and broader market expectations. Organisations must use established facts and direct staff input (especially when it comes to commute issues) as the basis for its decisions. Informs but does not overwhelm CSR strategies for the Workplace of the Future must be transparent, but unobtrusive. Organisations need to find creative ways of providing relevant CSR information to staff, such as deploying an online environmental scorecard that dynamically displays ‘real-time’ information on actions such as; energy consumption, commute footprint, effective space utilisation, etc. This can actively articulate the impact of environmental and socially just strategies, and emphasise progress. Workplace CSR often begins with environmental initiatives – through these efforts, organisations rapidly learn about how to effectively collaborate and address broader issues.

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The Workplace of the Future often begins CSR changes with environmental initiatives. Through these efforts, organisations rapidly learn about how to effectively collaborate and address the broader social issues that affect us all. Makes work part of making the world a better place Prospective and existing employees want to work for ethical, socially responsible organisations. However, there is an implicit understanding in Workplace of the Future that staff want to be actively involved in solving CSR issues. Its initiatives rally employees together in a cause that literally makes the world a better place.

Are you ready? • Do you understand the CSR expectations of your staff? How are you involving them in creating innovative workplace solutions? • Have you gained insights from current green workplace initiatives that can be applied to your broader corporate social responsibility strategy? • Are you offering employees the opportunity to personally make a difference? • How do you ensure that actions taken throughout the workplace – and the extended value chain – are consistent with the organisation’s CSR values and stated policies? • Do you know which NGOs to listen to and are you collaborating with those groups?

Building your Workplace of the Future

Building your Workplace of the Future Thoughts and views on the future of business – or the Workplace of the Future, as we call it – are evolving quickly.

We are delighted to bring together the emerging thinking of so many forward-looking business leaders. Their collective wisdom points to a Workplace of the Future that is: hungry for change, innovative beyond imagination, globally connected, disruptive by nature and genuine, not just generous. However, there is one more attribute evident in business leaders’ responses: despite the challenges and issues it presents, the Workplace of the Future is a fundamentally optimistic place. It is a vibrant place that challenges habits and conventions, it inspires, motivates, and is capable of delivering unheard-of levels of productivity. Above all, the Workplace of the Future is an integrated place that’s far more aligned to

today’s rapidly changing, socially just world. The business leaders spoken to during the course of this report are upbeat and passionate – not just about opportunities for their organisations (important as that is), but also about the bright prospects for business and society that the Workplace of the Future offers. We would like to see this latest Workplace of the Future study not as the end, but rather as a catalyst for ongoing discussions about where business and organisations are heading. We look forward to working with you as you build your Workplace of the Future. Continue the conversation with JBA at +44 1491 628654 or via e-mail to our CEO, John Blackwell at john_blackwell@jbassociates.uk.com

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Directors’ Report Business Review

Table of figures

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Figure 1

The change gap

Figure 2

The top three change drivers in 2008

Figure 3

The change gap is smaller for over-performers

Figure 4

Investment in new trust-based work practices

Figure 5

Investment in socially networked workplaces

Figure 6

Over-performers are increasing their workplace investments

Figure 7

Business leaders are embarking on major changes to workplace integrations and designs

Figure 8

Business leader’ responses fall into four distinct clusters

Figure 9

Over-performers gravitate towards interdependency-aware workplaces

Figure 10

Business leaders are driving extensive workplace innovations

Figure 11

While the enterprise model is most prevalent, “Services Cloud” is the fastest growing innovation

Figure 12

Over-performers are more likely to pursue “Services Cloud” model innovation

Figure 13

Environmental, socio-economic, and people issues – coincidence or foreshadowing?

Figure 14

CSR in the workplace: Obligation or opportunity?

Figure 15

CSR-focused leaders are enthusiastic about new workplace technology possibilities

Figure 16

Example of environmental scorecard

Figure 17

Distribution of office environmental footprint

Directors’ Report Business Review

Biography of

John Blackwell Business Transformer

John’s a highly sought after thought-leader, and global authority on effective business operation and ecological sustainability. A noted author of over 30 management books and a visiting fellow at 3 leading universities, John is regularly called on for expert commentary on BBC News, Newsnight, Radio interviews, and is a prolific keynote speaker at major conferences. Starting his career in forensic science, John moved into general management where his strong commercial and strategic acumen surfaced. In the early ‘80s, John founded two start-up enterprises, with each being acquired by global corporations for £multi-million sums. During this period, John renewed a passion for organisational psychology with an awardwinning multi-national change management programme. The mid-late ‘80s saw John start a decade as chief executive of international operations for MCI, where he collaborated with such luminaries as Vint Cerf to turn the internet into effective business strategies. The close of the MCI period saw John devote considerable energies to merging with British Telecom – only for the plan to be derailed by the WorldCom acquisition. Following MCI, John spent 5-years with IBM, heading business transformation. The practice combined embryonic disciplines such as knowledge management, organisational transformation, social capital, and strategic change into a highly effective deliverable. Dynamic socio-economic and corporate challenges also provided the catalyst for John’s groundbreaking business effectiveness models.

Today, John and his colleagues at JBA consult on workplace effectiveness and ecological sustainability. John’s a noted author of management books, including the best selling “The Agile Company: Transforming the Workplace” (ISBN 0749442808). JBA collaborates with the universities of Carnegie Mellon, Cornell, Durham, Surrey, Henley Management College, and the De Bono Foundation to create worldleading organisational performance change. In addition, John co-founded the not-for-profit foundation MWM with Noel Edmonds, aimed at lobbying policies and opinion on unacceptable, antisocial business travel. John’s speaking experience has included key note addresses at international conferences such as; Conference Board Leaders Forum, CBI and IOD conferences, Business Week Leadership Forum, and numerous CSR, Sustainability and Agile Business summits, et al.

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JBA Henley-on-Thames Oxfordshire RG9 5LX www.jbassociates.uk.com