Reduce The Footprint:

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1 Reduce The Footprint: More Than Cost and Square Footage Moderators: Jim Reidy, FRICS Senior Managing Director, Savills Studley Mary E. Goldsmith Director, RSM US LLP

2 Reduce The Footprint: More Than Cost and Square Footage Introductions: Charles Hardy, GSA Chief Workplace Officer Dan Mathews, Staff Director, US Congress Subcommittee on Economic Development, Public Buildings, and Emergency Management Dr. Naomi Leventhal, Author and Human Resource and Change Management Consultant Steve Polo, Managing Partner, OPX Global Realigning the Workplace to Today s Workforce Behaviors Mandate Drivers Imperatives Market Initiatives (Panelists) Panel Discussion Q&A Savills-studley.com

3 Mandate: Reduce the Footprint Office of Management and Budget The Federal Workplace is significantly underutilized resulting in an increase in costly vacant space in Federal buildings. OMB Management Procedures Memorandum No :... Executive Branch departments and agencies shall... reduce the total square footage of their domestic office... inventory Shed underused space Reduce costs Provide opportunities to re-balance available appropriations

4 Drivers: Reduce the Footprint Office of Management and Budget On the surface, reducing the footprint is a logical approach for shedding excess space. However, it is important to recognize the root causes for the decrease in office utilization: a mis-alignment of the workplace to workforce behaviors

5 Imperative: Develop The Solution Uncovering the workforce behaviors/workplace misalignment is the first step towards developing appropriate Workplace Solutions A Workplace Solution is...the dynamic alignment of an organization s work patterns with the work environment to enable peak performance and reduced costs. AE Savage, The Journal of Corporate Real Estate, Vol. 7, No.3, 2005

6 Imperative: Develop The Workplace Solution A Workplace Solution IS: A business case stratagem for sizing, assigning, and managing space A functional and financial response to 21 st century workforce behaviors A recognition of workforce styles and corporate cultures IS NOT: A design solution, but will result in one A telework program, but will leverage its capabilities A hoteling program, but will include elements as appropriate

7 Panel Discussion

8 GSA Total Workplace Dianne Juba, NCIDQ Jonathan McIntyre, RA, AICP, Leed AP

9 U.S. General Services Administration Transforming the Workplace: The Story of GSA s 1800 F Street Headquarters U.S. General Services Administration Public Buildings Service Office of Design & Construction Total Workplace Program Management Office Dianne Juba, NCIDQ Jonathan McIntyre, RA, AICP, LEED AP

10 GSA Headquarters Challenge Shrinking budgets[rent vs MISSION] LESS SPACE needed DIFFERENT kinds of WORKSPACE `

11 1800F Workplace Strategies RIGHTSIZE space to meet job function Provide Technology, Processes & Space for HOW/ WHERE PEOPLE WORK Leverage MOBILITY & CHOICES SHARED SPACE across organizations Enhance COLLABORATION & PRODUCTIVITY

12 1800F BEFORE

13 1800F PERCEPTIONS

14 1800F REALITY

15 GSA 1800F Transformation RESULTS >>>> Efficient and Cost Effective 4400 Occupants (from 2500) 2:1 Desk Sharing Ratio 141 UR Usf/Person Shared Space Workspace Choices Increased Mobility 40% Reduction in Space $24 M Annual Rent Savings 50% Reduction in Energy Consumption $6M Annual Admin Cost Savings Savills-studley.com

16 CONTACT INFORMATION: Total Workplace PMO Chuck Hardy, RA, CCM GSA Chief Workplace Officer Director, Total Workplace Program Management Office (312) Dianne Juba, NCIDQ Senior Workplace Strategist (202) Jonathan McIntyre, RA, AICP, LEED AP Senior Workplace Strategist (202)

17 Generations Dr. Naomi Leventhal

18 Workforce: Generations Learning from the Millennials Who is in the Office? The Generation Perspective: Boomers (29.6%)/Gen X (34.9%)/Millennials (35.5%) 2015: Millennials (adults ages 18 to 34) ~1-in-3 Millennials are just now the largest age cohort - Pew Research Center What Drives The Millennials : Technology Social Interaction Work Collaboration Adventure and Experience Values Orientation

19 Gen Z: Changing Focus From Generations to Values and Behavior We are all Generation Z: It s How We Solve, Create, Connect Gen Z is a choice. It s a lens through which we see the world Shifts in behavior, demographics and technology will forever change the way we live, work and play. -- Thomas Koulopoulos and Dan Keldsen: The Gen Z Effect The Big Questions: What is Work? What is the Office? Time to shift the conversation from generations to values and behaviors?

20 First Step: Discovery Steve Polo

21 Operating Environment: Can It Support Today s Workforce? Or

22 Operating Environment: Where is Your Balance? Survey Says: Is your Current operating environments aligned with your culture? What are our Cultural Tendencies? What Can You Do?

23 What a Staff Wants: It s Not Just a Millennial Thing How Do We Know? Is Collaboration is Fundamental to How We Work? How Well Does The Workplace Support Today s Work Behaviors?

24 Questions?

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