Getting Real: Transforming the Workplace at SCAN Health

8/14/2019 Getting Real: Transforming the Workplace at SCAN Health

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Getting Real:Transforming the Workplace at SCAN Health

IFMACorporate Real Estate Council

Sheraton Vancouver Wall Centre

Vancouver, BCApril 1, 2009

Diane ColesDirector, Facilities and ServicesSCAN Health Plan

Dr. Charles GranthamDr. James WareExecutive ProducersWork Design Collaborative


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Copyright 2009 by The Work Design Collaborative. All rights reserved - 2 -

Todays Agenda

Goal: A conversation about the benefits of makingflexible work work and how to do it

Some Topics for Discussion:

Why is remote/mobile work so important ? What are the challenges of implementing aflexible work program?

What kind of business impact does flexible workproduce?

What are the important lessons learned fromthe SCAN Health Plan experience?

What is the future of flexible work?

Agendaimportanceofmobileworkchallengesareal-worldexample

guidelinesforsuccesslookingw

ayahead


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An Important Perspective

The way we work is changing, which will be followedshortly by wherewe work or you disappear . . .

Work Place


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Work Evolves

Whatwork is changes: from

agriculture to manufacturing toinformation

Howwork gets done changes: fromshovels to machines to computers

Wherework gets done changes:from open land to cities and villages

Whatworkers do changes: frombrute force to brain force


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Fact: Two-Thirdsof Knowledge Work TodayIs DoneOutside Corporate Facilities

CorporateFacilities

30%

At Home35%

In Between35%

1st place2nd place3rd place

Opportunity in next five years:


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The Distributed Workforce is Growing Rapidly

* Source: WDC Demographic Projections, 2008

Drivers of Change: documented Return on

Investment leadership support energy costs simplification of process public policy incentives (i.e.,

environmental impacts)

Barriers: old habits die hard middle management

resistance scarcity of expert resources technical and physical up-

front investments

Wildcards: recessionary economy technology development global politics/terrorism

1990 1995 2000 2005 2010

Number of Distributed Workers*

0

5000

10000

15000

20000

25000

30000


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Whats Really Going On?

Most of the institutions and business operations thatsupported industrial work styles are crumblingrapidly!

?


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Drivers of ChangeA Perfect Storm is Converging on the Workplace

Information Technology

GlobalizationDemographics

Public PolicySustainability


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Copyright 2009 by The Work Design Collaborative. All rights reserved - 1 0 -

Indiana Jones circa 2500 AD


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A 2010 Vision

Business travel significantly decreases;technologies substitute

Four-day work weeks Globalization of alljobs; companies go to

where the talent is located

Cubicles disappear in favor of collaborationspaces

Corporate headquarters housing hundreds or

thousands of workers disappear Free agency becomes the norm of

relationships between talent and company

Source: Challenger, Gray and Christmas, June 2008

WDCFutu

rescope


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SCAN Health PlanEmbracing the Future of Work

Charter to re-align the real estateportfolio to reduce cost and handlegrowth

Moved several hundred non-exemptemployees to flexible work

In 2008 went from 185 sf/person to155 sf/person at corporateheadquarters (goal is 112)

Achieving an ROI of over 40%

Now redesigning the workplaceplanning process, saving 38% incost and time


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SCAN Health Plan*Background

A not-for-profit MedicareAdvantage HMO

Based in Long Beach, California,with operations in Phoenix, Arizona

Approximately 850 employees

Focusing on both cost reductionand growth at same time

* SCAN = Senior Care Action Network

www.scanhealthplan.com


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Business Challenges

Changes in federal regulations Rapid growth Expansion into new areas Attracting and retaining talent

increasingly difficult

Corporate facility at some risk long-term, inflexible lease inappropriate physical location short of usable space

Space did not meet 2012 vision andculture

Workforce support costs high andgrowing


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Copyright 2009 by The Work Design Collaborative. All rights reserved

Redefining SCANs Workplace Strategy

Enabling face-to-facemanagement

Inefficient space

Traditional grid workplacedesign

Space, technology, andservices were silos

Focus on placeCost focus

No attention to Green

More distributed/virtualworkforce

Less space but better space,and more effectively used

More exciting, creative spacethat fosters teamwork (NOSILOS)

Integrated solutions of space,technology, and services

Focus on workCost focus with benchmarking

Go Green

In 2006: New Direction:


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The AWESOME ProjectAlternate WorkplacesEngaging Staff andOfficeManagementEfficiencies

Project Activities:

Policy development Space Planning/Construction Technology Planning Business Unit Readiness

Facilities

LegalMarketing

HRIT

Risk Mgt. PM Office

Training & Change Management Communications Implementation


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The Business Case: Scenario Planning

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*For the year 2010, assuming no change from 2006 business parameters

Baseline*2008

UpdateKey

Assumptions

Mobile Employees (Goal)

DW Sharing Ratio

Total Staff

Square Feet per Person

Facilities & FFE Cost/Empl

IT Support Cost/Empl.

HR Support Cost/Empl.

Admin Support Cost/Empl

CRE Support Cost/Empl.

Total Support Cost/Empl.

Conversion Cost/Empl.

249

3.50

865

164

$7,847

$10,109

$3,585

$8,033

$1,118

$42,435

--

2006Analysis

369

4.37

820

133

$7,036

$6,792

$2,188

$6,370

$ 980

$33,258

$11,412

369

4.37

820

133

$7,260

$10,802

$2,271

$6,370

$ 986

$37,498

$19,709

Selected Outcomes


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Three Dimensions of Success

Efficiency making the most of the space density of occupancy cost of occupancy cost of change (moves, adds, changes) ROI

Effectiveness making the most of the people attraction/retention of employees interaction among support groups (IT/HR/CRE) departmental productivity

Expression making the most of the mission employee engagementjob satisfaction/flexibility


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The Numbers

Provisioning cost

Provisioning time

Space requirements

Return on investment

Employee productivity

Employee engagement

38%

12 weeks to 3 days

22%

40%+

18%

No change


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Business OutcomesIn Summary


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Personal PerspectivesDrawn from Focus Groups

Employees

I would rather find another job thancome back in the office.

My production went up slightly athome, but my accuracy went wayup!

We feel we are more of a teamnow than when we were in theoffice.

We can talk to each faster thansomeone in the office when youcall the office you get voicemail.

Im calling my manager asking, Isthere anything else you want me todo?

Managers

We should have manager trainingprior to selecting remote workers.

Im surprised how quickly theyseparated themselves from the

office. They dont want to comeback.

The home-based workers aretelling me about things that I donteven know are happening here at

SCAN. Im concerned about keeping the

AWESOME employees connectedwith the company.


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Lessons Learned

Home office setup

Productivity

Communication

Space planning Managing remote workers

Unexpected marketing/recruitingbenefit


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The Next StepA Flexible Office for Flexible Work


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New Collaboration Spaces

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New Collaboration Spaces, continued

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New Collaboration Spaces, continued

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Participatory DesignUsing an Interactive Smartboard


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Workplace Policy in Pictures


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Space Standards


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Whats Around the Corner?

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Up to one-third of existing commercial(office) real estate market will evaporate inthree years

Customers will demand more balancebetween 1st, 2nd, and 3rd places

Lease length will decrease significantly Innovators will discover how to generate

revenue streams from sources other thanreal estate lease fees

There will be significant industryconsolidation


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Given the SCAN Story:

1. Does the corporate real estate industry

want to become a commodity in a shrinkingmarket?

or

2. Does it want to play a significant role insupporting work wherever and whenever it

takes place?

If option two, then . . .


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You Need a Strategy of Place

We are not in a normal business cycle

Someone has hit the re-set button on theentire wealth-creation machine.

The creation of wealth now depends on thecreation of knowledge and its application tosustainabilityboth environmental and social.

We must invest in the physical, technological,and social networks that support this post-industrial economic engine

Knowing whereto invest your resourcesbothgeographically and in which economic sectorswill produce a powerful competitive advantage

- 3 4 -


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A New Kind of Workplace is EmergingWe call it a Business Community Center

A shared facility and service operation

Located in suburban and exurban areasto reduce commuting

Available on an as-needed or drop-in

basis Fosters economic development;

supports local businesses

Provides enterprises with a communitypresence


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How is a BCC Different from Other ThirdPlaces?

Significantly lower price a low monthly membership fee for access modeled after a health club a base membership fee plus

incremental charges for incremental uses bulk of revenues are service fees

Location a network of smaller facilities located in or near residential

neighborhoods near other needed services and retail outlets.

(for example: day care and health clubs) leverages under-utilized commercial properties

Member experience multi-function (work, learning, service) hospitality model of business a place where you want to be


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What We are Doing Now

Helping SCAN refine the alternative workmodel in its core markets

Introducing concentration and order into theprovisioning process

Designing a Strategy of Place planningprocess

Developing a Playbook to guide expansioninto other geographies

Bringing Business Community Centers intothe portfolio planning process


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What are You Gonna Do Now?(Besides Call Us Hint, Hint)

You as a professionalYour firmThe industry


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For Further Information

Dr. Charles GranthamPrescott, Arizona

+1 928 771 9138 office+1 928 771 9138 fax+1 928 533 9149 [email protected]

Dr. James WareBerkeley, California

+1 510 558 1434 voice+1 510 558 1431 fax+1 510 206 8147 mobile

[email protected]

Website: http://www.thefutureofwork.net

Blog: http://www.thefutureofwork.net/blog

Book: Corporate Agility( http://www.corporateagilitybook.com )

Diane ColesLong Beach, California+1 562 989 8327 office

+1 562 427 7346+1 928 449 8998 [email protected]

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Getting Real: Transforming the Workplace at SCAN Health

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