WORKPLACE CHANGE ACCELERATES CORPORATE TRANSFORMATION
Corporate culture transformation starts with change in the way of thinking. ABW (activity based workplace) is an effective method to achieve agility needed in 21st century Three years have passed since the
Japanese government-led“ Work Style
Reform (Hatarakikata-kaikaku)” started,
but it seems that the road to achieving
results that actually benefit businesses is still long. What struggles are companies facing and where are the causes of the struggles? Now that the world is changing dramatically, what is the best way to work and the working environment for workers and businesses? And how will the workplace evolve in the future? We spoke to Chinatsu Kaneko, CBRE's head of Workplace Strategy North Asia, about her points of view and recommendations.
Traditional corporate structure hinders work style reform ―As a workplace expert, how do you see the
current state of work style reform?
As a senior director of WPS at CBRE Asia, I have been pursuing high-per formance workplace creation. The �workplace� includes not only physical place, but also work styles. Since� Work Style Reform� started in 2017 by the Abe Cabinet, there have been many opportunities to talk with clients about this topic, and many companies are struggling to change. ― Reform is a big change, so it's not that easy.
Yes, a recent newspaper article stated that about 80% of companies is failing at true transformation. The most common case is when initiatives are focused only on results that are relatively easy to quantify, as exemplified in reduction of overtime work. In such cases, focus is on achieving the goal of reducing overtime records, and there is no discussion about improving operational efficiency to increase productivity. Without a clear strategy, employees become confused because they are suddenly told to �reduce overtime� and �work on holidays is prohibited � . Not surprisingly, the pressure on business performance remains the same as before, so negative impact of work-
WORKPLACE STRATEGY (WPS) PROVIDED BY CBRE We believe that a high-performance workplace is an environment in which employees are engaged, is operated with cost effectiveness, and embodies the corporate culture. We specialize in the creation of a workplace that promotes corporate revitalization comprehensively, and aligning business strategy, HR, IT, branding, etc. to bring corporate culture to life.
CHINATSU KANEKO Senior Director Workplace Strategy
style reforms is gradually building up. For example, management may say, "Let's spend 15% of our work time on innovation," but too often there is no discussion on where to reduce work and create this new 15%. So the 15% innovation time gets added on top, causing to increase overtime. I am deeply concerned that working style reforms will quickly fail if we keep doing this type of ill-considered initiatives. ―Clearly, there are some difficulties in the field
of business because the goals are far-reaching, but where do you think there is a counter measure?
My understanding of "work style reform" goals that benefit businesses are "a system that supports diverse work styles", "increase in productivity" and "innovation", and the hurdles to realize these goals are cer tainly high. To get closer to these goals I think it is necessary to change our minds first, specifically to "break away from 20th century values.� A characteristic of the 20th-centur y work style is the loyalty spirit by lifetime employment, where similar types of people who thought that working at a large company would provide them a sense of stability congregated. In such situations, long working hours were evidence that people worked hard, and people were motivated by honor and status gained
through work. Workplaces where people spend more time than with their families have also played a role in fostering people to grow as mature adults and find social life. With these values, Japan have grown into a worldclass economy. H o w e v e r, i n r e c e n t y e a r s , l o n g i n g f o r l i f e t i m e employment is decreasing, the number of people (especially competent people) who are changing jobs seeking fulfilment and/or opportunities are increasing. Just recently, Japan Business Federation (Keidanren) also announced that Japan's employment system, such as lifetime employment, is outdated and needs to be reviewed. In addition, work-life balance is increasingly valued, where work is part of a richer life, rather than the main purpose. More and more people have the idea of earning money from work in order to continue doing
"We are trying to advance the 21st century work styles in the values and environment of the 20th century” something that fulfills them outside of work, and such a way of living has become possible. In other words, as Japan has grown into a prosperous country, personal values have changed significantly. In particular, the Millennials, who will increasingly occupy the working
population, believe in these new values and they certainly represent the values of the next generation. ― Indeed, a change in
individual value is in place and growing in society. Anything else? Contrary to the "growth into a rich country" background, we mus t seriously face the fac t that Japan is lagging behind economies in the world and take measures. For example, in terms of GDP, diversity, gender equality, innovation, environmental measures, and technology, how well is Japan doing on being good example to the world today? In Japan, there are still many companies whose values of the twentieth century are rooted in the culture and they are not looking at the world. Also, those in management roles are particularly reluctant to new ways of working. Perhaps it is very difficult to switch because the role of management itself is traditional. In this type of situation, the danger of
Mind shift, change in behavior, change in space are the key to changing corporate culture ─ So how do you think you can achieve work
style reforms and create supportive work environment?
One of the major reasons why work style reforms have not been successful is the gap in trying to advance the 21st century work styles in the values and environment of the 20th century. It may be easy to call this a generation gap, but that does not lead to progress. What companies can do is to place significant change management efforts to embrace the new way of thinking. In many companies, although a new work style policy system and mechanism has been established, they are not activated or implemented well due to lack of awareness. Recently, a major recruitment firm advised me that "the important thing to check when changing jobs is not the company's policy system but the corporate culture." I agree 100%. We must break down the old-fashioned corporate culture and turn it into something that is contemporary. And not only to deny the past, but more importantly to build a new culture by enabling positive core values of the future. Culture cannot be rationally identified and is an abs trac t concept. However, people are sensitive to the corporate culture rooted in companies, and it has a great influence.
"Holistic approach and process are key in achieving change in corporate culture" talented workers going abroad seeking better treatment and environment will only increase. When I work in Asia, I often feel a sense of embarrassment and urgency as a Japanese citizen, therefore, I want to do what I can.
―So employee awareness fosters a change in
corporate culture. Please tell us about specific approaches.
CULTURE TRANSFORMATION TAKES HOLISTIC APPROACH MIND SHIFT Commit to moving beyond the current comfort zone
INCORPORATE NEW TOOLS Technology
CHANGE IN BEHAVIOR
CULTURE TRANSFORMATION
New behavior, new actions
New culture becomes the norm
CHANGE IN POLICIES
CHANGE IN PHYSICAL WORKPLACE
HR, standards of labor, performance review, etc
ABW, remote work, shared office, etc
Yes. In order to encourage new way of thinking, I think three changes are important: mind shift, change in behavior, and construction of a new environment. Mind shift is about embracing the new values we just mentioned. First step is to accept the work styles of the 21st century, including the shift from long working hours to productivity improvement, innovation through diversity of human resources, and respect for individualized work styles that emphasizes individual goals and fulfillment. To truly believe and be willing to try with open mind that this will lead to corporate revitalization and committing to it is the very first step. The next step is to break this down to behavioral level through company strategy and clearly communicate to employees that they would be impressed how seriously commit ted the company is to change. Executives must clarify the future vision and company core values and establish links between the core values and new ways of working. The Communications team (and/or PR, Marketing, etc.) can then take the executive vision and values to be clear and easy to understand that it resonates with employees. HR will recruit new hires in line with core values and must establish an evaluation system and training suitable for the new culture. IT department takes the initiative to adopt new technology that is critical to the way employees work, which may include new software, paper reduction, digitized workflows, ITtrainings and day-to-day support. And, most importantly, managers should be the living example and lead the efforts to incorporate the new way of working every day until it becomes common practice. At the same time, well-suited workplace to realize these changes should be created. The physical space of our workplace can and should embody our new culture and value so that they can be experienced day to day by the people. This physical change adds incredible impact on the momentum to change. These 3 changes (mind, behavior and environment) need be worked on continuously step by step.
―What type of a workplace positively impacts the creation of new corporate culture?
Factors necessary for a 21st century workplace will be focused on "flexibility & technology", "sustainability & wellness" and "change management & new skills". Flexibility refers to the way of working itself, as well as the ability to change the facility to support organizational changes. Supporting various work styles enables various forms of employment. As a result, companies can provide
effective workplace to talents they want to attract and retain. The use of technology will accelerate remote work and operational efficiency. It enables us to connect any where any time with anyone and will enhance our communication and collaboration. For example, having multiple options for communication technology increases work effectiveness and efficiency. Because my teams are located in five locations in Asia, I'm separated from someone no matter where I am. But technology allows me to have immersive discussions with anyone anywhere. I use different technology tools to serve my different purposes, such as admin work, regular catchups, brainstorming, presentation, etc. Therefore, flexibility and technology are essential for increasing productivity. Training to keep up with the times and adapt to new tools is critical. More choices in technology allows flexibility in supporting different work styles and all of this will be more in need when we are working with AI or robots in the future. ―How about “ Sustainability and Wellness” ?
Sustainability reaches a wide range of topics including ecology, economics, politics and culture, but I think the relevance to the workplace is an ecosystem that can sustain environmental impact and productivity and the ability to maintain a self-operating system all around. Wellness, in my view, is a universal human right. Now that we have shifted to a 100-year life, the age range of the working population will expand significantly from the 20s to the 70s and beyond. In order to work and live a fulfilling life for a long period of time, we all want to be healthy both physically and mentally. Eliminate unhealthy situations that may cause harm to our bodies and mental health. Unhealthy conditions also can have a negative effect on mental health. Until now, health management had institutionalized measures to deal with illness, but it is important to build a work style that does not cause illness in the first place. Therefore, a workplace where people do not get sick or, to exaggerate a little, a workplace that makes people healthier is ideal. Wouldn't people sign onto an initiative that promotes �being productive at work to get home at a reasonable hour for a good night sleep" rather than �just reduce overtime?" ―Agreed! Please explain your last theme “ change management & new skill.”
Change management refers to a variety of initiatives that shift the mind by accepting the values of the 21st century described earlier. �New skill� means that we need completely new skills in the environment where values
CORPORATE CULTURE AND WORKPLACE EXPERIENCE ARE BUILT BY EVERYONE MANAGEMENT
MARKETING & COMMUNICATION
• State the corporate vision and core values • Define the types of suitable talents • Illustrate the link between corporate strategy and work style transformation
VISION
COMMUNICATION
• Declare the commitment to change
IT
Paper reduction → digitalization Digitalize internal approval processes Incorporate software to drive efficiency Leverage multiple communication channels • IT trainings for staff • • • •
TECHNOLOGY
WORKPLACE CULTURE IS BUILT BY EVERYONE
• Broadcast corporate vision and core value to everyone • Promote the work style transformation mission • Exhibit the achievements of change • Host net work building events
HR
PEOPLE
• Hire suitable talents • Revise performance review system in accordance with the change • Devise manager training contents • Modernize training sessions • Career path support • Communication training
FACILITY • • • • •
Effective work environment User-friendly reservation system Impactful amenities Ergonomics Safe and clean environ
PHYSICAL SPACE
and ways of working have changed significantly, and we must allocate time and place to learn these new skills. First, the adoption of flexible working styles will change the way you communicate. Team managers need to manage and evaluate members differently. In addition, if you embark on open innovation with people outside the company, you will need high leadership skills to quickly learn each other's strengths and characteristics and make them work as a strong team. Under such circumstances, are we taught in modern manager training such skills to organize members who have little in common and make the most of diversity? It is said that the skills required of human beings in an environment where robots and technology will do most of the repetitive work are entrepreneurship, leadership, and creativity, but human resources who demonstrate such skills are few at present. Until recently, we have worked hard to get the assigned tasks done in a regulated manner efficiently, so to be demanded of creativity suddenly is a drastic demand difficult to deliver. I hope companies create opportunities and time to train these new skills to their people and reduce the number of those who cannot keep up with the times. CBRE established a workplace guideline called WP360 to realize multiple transformation and it's been implemented in many of our offices globally. I've personally been involved with 7 projects in the past 6 years, starting with the Japan HQ in Tokyo. ABW (Activity-Based Workplace)
method was used and these new workplaces truly changed our way of thinking and working.
ABW frees us from traditional office and allows us to re-define the way we work ─ What is ABW?
ABW stands for �Activity-Based Workplace,� and it is about creating a workplace based on activities we do. We work in different modes throughout the day, from individual desktop work, formal meetings, focus work, to casual discussion. ABW's greatest feature is that there is a space that effectively supports these various activities and by sharing the use of these spaces, it enhances the flexibility to respond to changes in the organization. In a questionnaire CBRE conducted, almost half of the participating firms said they knew ABW, indicating that social awareness has increased. ― On the other hand, isn't it also true that the
misconception is spreading that ABW is about employees being too free at work and/or it's about building stylish cafe and meditation room.
The real value of ABW is that it first liberates workers from being tied to small office desks and triggers a broader
review of the way we work. Thinking about adopting ABW forces us to define our own meaning of productivity, collaboration and culture. It is a great method to think about the way of working and create a place where they can perform optimally and comfortably. ABW doesn't always mean relocating to a higher grade building, and it's not about building luxury office with all the trendy spaces. The important thing is to thoroughly analyze our work style and strategically create an environment where we can maximize our performance by providing the necessary space and tools. In addition, ABW enables �agility� that is important to workplace strategies. Agility is the ability to act flexibly to respond quickly and accurately to business challenges. As market conditions change, technology evolves, and the needs and work styles of human resources change, being �agile� means addressing and resolving these matters quickly. Additionally, the convergence with technology will make it easier to adopt further flexibility on where people work, including remote work, using shared offices and coworking spaces. ABW projects have proven that ABW can be more cost effective than traditional office, supports flexibility, while providing many amenities employees benefit from, and has proven to increase productivity and engagement. At this point, I do not know of any better method of creating a high-performance workplace - the more we experience ABW projects with various customers, the more we realize the deep potential of ABW.
Change in corporate culture and values requires repeated efforts without fear of failing ─ You are saying ABW promotes reform
through workplace creation. So what do we need to keep in mind in moving forward with it?
Certainly, ABW environment makes a great impact. Behaviors do change when environment is changed. However, changing people's minds takes time and it is important to take several steps to change. Once again, let us focus on the mind shift, behavior change, and environment change as discussed before. STEP 1 aims to embrace the values of the 21st century and break away from the 20th century. Commitment to change and discussions are the necessary behavior. The physical space will be most effective with the introduction of ABW. If the introduction of ABW is
not feasible, smaller size changes can take place, such as building pilot projects or collaborations spaces in the space you gained by reducing storage, etc. This will initiate the mind shift towards empowerment of individual employees, a shift to performance-based evaluation, and respect for individual working styles. In STEP2 is a review and adjustment of initiatives implemented at STEP1. As actions, we recommend to review the activities that are performed in the business to further improve efficiency and productivity. Another possibility is to spread mobile work beyond ABW to outside of the office. In terms of location, it'd be possible to spread the use of places, such as shared offices and work from home. As more members become accustomed to working anywhere any time, respect for the individual work style will grow. In addition, building teams that transcends cities and countries becomes a reality. Here, improved diversity and revitalization of collaboration may be the high lights of STEP2 outcomes. As you may have noticed, the result of STEP 1 tend to focus on "individual autonomy,� while STEP 2 creates "stronger teams made of strong individuals". In steps 3 to 5, technology, wellness and innovation will come into action. The order may differ from company to company, and it is possible to challenge everything at once, but in any case, if these steps are set in place, ultimately, we will reach the flexible work style that embrace the value of the next generation. Flexible working st yles not only enable individuals to fulfill ultimate self-realization, but creation of diverse teams becomes possible and real, which will truly empower companies.
I often hear extreme comments, such as "we don't need offices or companies in the future," but I disagree because there are limits to what one can do on his/her own. We can have great impact on the world when people who share the vision and core values of a company gather and work together in various ways. Looking at the environmental issues facing the world today, I feel that it is necessary to make a significant impact on a companyby-company basis. The rapid development on a massive scale seen at Shenzhen, China is so impressive and proof of what can be achieved by large group.
WORKPLACE TRANSFORMATION STEPS DEGREE OF CHANGE
Degree of change increases as number of change accumulates
Downtrend decreases as number of change accumulates
―So as you take steps towards change while reviewing and adjusting, the goals that we once felt are far away and unrealistic become increasingly feasible.
Time needed to embrace change decreases as number of change accumulates
TIME SPENT
STEP1
STEP ２
STEP ２
Embrace next generation values, constructive review of changes in place and adjust future plan as needed
Embrace next geneation values by all; Specific theme focused change based on needs TECHNOLOGY
STEP4
STEP5
STEP6
Embrace next geneation values by all; Specific theme focused change based on needs - WELLNESS
Embrace next geneation values by all; Specific theme focused change based on needs INNOVATION
Self-actualization
Review and analyze Change Management Incorporate new the current, discuss activities to gain more technology and Change in about new culture and momentum related training Behavior work style
Work style which incorporates physical and mental health; flexible work hours
Training to lead Inspired and selfinnovation; culture that motivated to build allows trial and error; teams and projects flexible use of time and place
Incorporate ABW (build environment that supports diverse Change in work styles) Physical Space
Commitment to Change, break away from 20th century Mind Shift values, Create corporate vision and core value
▌ Build trust to
respect individual work styles
▌ Digitalization ▌ Change
management style
Expected Outcome
▌ Shift to independent
work style
▌ Performance
evaluation based on outcome
ABW+ hospitable social spaces, remote work, work from home, shared offices
ABW + new spaced needed as byproduct (IT helpdesk, training room, data center, improved server room, etc)
ABW + elements to support wellness such as ergonomics furniture, good lighting, IAQ, refresh spaces (mindfulness room) use of community spaces outside of office
ABW + creative Any time, any where space, inspiration (art, library, etc) + use of community spaces outside of office
▌ Maximized
▌ Company
▌ Health promoting
▌ Strong team
▌ Increased diversity
▌ Increased
▌ Non-harmful
flexibility
▌ High engagement ▌ Increase in
individual productivity
▌ Individual fulfilment
is increased
▌ Improved
hospitality based on more concierge services
productivity technology assisted work
▌ Leverage new
communication channels via technology
▌ Efficient workflow
assisted by big data collection and analysis
▌ Increase in
hospitality by service apps
work style
environment (iaq, light, temperature, etc)
▌ Access to healthy
food and beverages
▌ Regular physical
activities
▌ Healthy mental
state
bound by strong motivation
▌ High engagement
based on culture that promotes trial and error and allows failure
▌ Team creativity
is maximized by diversed team
▌ Strong and high
performing teams built on high individual productivity and happiness
▌ Open-innovation in
“Behind all great workplaces is a mission to value people and high performance”
T hat 's right. T he cult ure and values of a company change in this way, but there are t wo impor tant points here. First, when you enter a new step, be aware that there will always be a downtrend and that adjustment is necessary. Nevertheless, if you continue, you will get used to adapting to change and the time it takes to adopt will be shorter each time. This improved ability over time is exactly what being agile means. Second, keep in mind that the steps of change are not always perfect. Neverending preparation for fear of failure will not activate change unless we make actions. We recommend setting 80% completion as a sign of great outcome and keep up the repeated execution and adjustment. The key factor in succeeding in transformation is that a strong vision is shared by all members.
Workplace will become a SOFTWARE, SCIENCE, and A SERVICE in order to support future work styles ─ The attitudes and methods to be tackled for reform have come to light. Finally, what are the trends in the workplace itself going forward?
place
▌ Reaching self-
actualization by having freedom to choose paths
on people's health. Additionally, technology focused on communication will provide data on effectiveness of our communication and collaboration styles. This type of data will inform us to spread what works well, and to think of more improved ways to work. This trend will push our workplace creation to have a "science" angle. As workplace software progresses, various and large amounts of data that were previously unknown will be collected. The PDCA (plan-do-check-action) cycle can be put in place that leverages the big data to continue improving the workplace and user performance. And the last is "service". While workplace will adopt a science angle by the experts, workplace will also need to service the people who use it day to day. Although it may be a bit extreme, as companies seek the best
We believe that the physical workplace will evolve in three themes in the future. The first is �becoming a software.� Technology advances incorporated into workplace, especially in facility management, will provide data that we don't currently have, such as utilization frequencies, infrastructure performances, and space effectiveness
talents, they may need to consider employees as customers and welcome them with the attitude of "join us and use our company as a platform to put your knowhow and skills to the best use", which when the message is delivered correctly should lead to the best performance of employees . At the state-of-the-art workplace, efforts are being made to reduce inefficiency and improve employee performance with services reminiscent of a hotel concierge. As adults spend most of our waking hours working and we seek deep fulfillment in work, I think these future workplace thinking is heading in the right direction. The workplace is changing rapidly all around the world. And I believe all workplace should be created with a mission to value people and high performance. By evolving the workplace alongside with needs, values, tools, and technologies that change with the times, I believe we can build workplace where everyone is feeling alive at work, unleashing their creativity, and flourishing in innovation.
This content is excerpts from the original text of the original article in BZ Kukan Magazine; issued in March 2020. BZ Kukan Magazine is only available in Japanese language.