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Defining, measuring and benchmarking productivity Paul Bartlett Office Productivity Network.

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Presentation on theme: "Defining, measuring and benchmarking productivity Paul Bartlett Office Productivity Network."— Presentation transcript:

1 Defining, measuring and benchmarking productivity Paul Bartlett Office Productivity Network

2 2Paul Bartlett OPN Introduction Economic Importance Economic Importance Measurement of Office Contribution Measurement of Office Contribution Office Productivity Network Office Productivity Network The OPN Index The OPN Index Financial Sector Relativity Financial Sector Relativity

3 3Paul Bartlett OPN Economic Importance 145 Million sq m Office Space in UK 145 Million sq m Office Space in UK 28 million people accommodated 28 million people accommodated 60% of added value created by office workers 60% of added value created by office workers Operational cost of 100 billion pa Operational cost of 100 billion pa

4 4Paul Bartlett OPN The Office as Capital Equipment Dominant purpose of office building and services is to enhance occupiers output Dominant purpose of office building and services is to enhance occupiers output Output dependent on staff performance Output dependent on staff performance Real value determined by contribution to workforce productivity Real value determined by contribution to workforce productivity Analogous to manufacturing plant Analogous to manufacturing plant

5 5Paul Bartlett OPN Business costs Staff - 75% Assets - 20% Initial - 4% Running - 1% (Source: Williams, 1994)

6 6Paul Bartlett OPN Defining Productivity productivity is the extent to which activities have provided performance in terms of system goals (Parsons, 1993) productivity is the extent to which activities have provided performance in terms of system goals (Parsons, 1993) the increase in the amount of time work is being done with a decrease in absenteeism, a decrease in employees leaving work early, a reduction of extra long lunches and the increase in quantity and quality of work (Dorgan Associates, 1993) the increase in the amount of time work is being done with a decrease in absenteeism, a decrease in employees leaving work early, a reduction of extra long lunches and the increase in quantity and quality of work (Dorgan Associates, 1993) a measure of what can be achieved by humans with the least effort (Lorsch & Abdou, 1994) a measure of what can be achieved by humans with the least effort (Lorsch & Abdou, 1994)

7 7Paul Bartlett OPN Defining Productivity Performing tasks more accurately Performing tasks more accurately Performing faster without loss of accuracy Performing faster without loss of accuracy Capability to perform longer without tiring Capability to perform longer without tiring Learning more effectively Learning more effectively Being more creative Being more creative Sustaining stress more effectively Sustaining stress more effectively Working together more harmoniously Working together more harmoniously More able to cope with unforeseen circumstances More able to cope with unforeseen circumstances Feeling healthier and so spending more time at work Feeling healthier and so spending more time at work Accepting more responsibility Accepting more responsibility Responding more positively to requests Responding more positively to requests (Source: NEMA, 1989)

8 8Paul Bartlett OPN Defining Productivity The ratio of output to input

9 9Paul Bartlett OPN Impact of Environment on Performance time staff waste complaining time staff waste complaining absenteeism absenteeism length of time working, lethargy length of time working, lethargy attitude to company/loyalty attitude to company/loyalty mental & physical performance mental & physical performance errors/repetition of tasks errors/repetition of tasks wasted time (downtime) wasted time (downtime) document access document access level of concentration creativity work style/team-working staff turnover motivation, base needs impression upon visitors learning ability

10 10Paul Bartlett OPN Routes to Productivity Cost P e rf o r m a n c e HighLow High Low Quality Route Saver Route

11 11Paul Bartlett OPN OPN Thesis The impact of the office environment on business performance and staff output is poorly understood The impact of the office environment on business performance and staff output is poorly understood The consequences of a property change on business productivity are rarely quantified or analysed and, at worst, are entirely ignored. The consequences of a property change on business productivity are rarely quantified or analysed and, at worst, are entirely ignored. By investing management attention on productive offices, shareholder value can be increased for the occupying business, and their suppliers. By investing management attention on productive offices, shareholder value can be increased for the occupying business, and their suppliers.

12 12Paul Bartlett OPN OPN Objectives To encourage and support the generation of data on the impact of buildings on workforce performance. To encourage and support the generation of data on the impact of buildings on workforce performance. To provide for members a framework for exchange of information on the impact of all aspects of the indoor environment on office worker productivity. To provide for members a framework for exchange of information on the impact of all aspects of the indoor environment on office worker productivity.

13 13Paul Bartlett OPN Core Membership Barclays Barclays KPMG KPMG Lloyds TSB Lloyds TSB Johnson Controls Johnson Controls Royal Mail Royal Mail Reuters Reuters Advanced Interior Solutions Advanced Interior Solutions TSK TSK Swanke Harden Connell Swanke Harden Connell GlaxoSmithKline British Land Workspace Office Solutions BT PricewaterhouseCoopers Unilever HM Treasury OPD Aedas

14 14Paul Bartlett OPN Key Project Objective How do you distinguish a good building from a bad one? How do you distinguish a good building from a bad one? How do you rank buildings which contribute to the occupants business performance above those that detract from it? How do you rank buildings which contribute to the occupants business performance above those that detract from it?

15 15Paul Bartlett OPN OPN Index OPNI designed to be component in communicating objective view on office building to inform decisions on its future (acquire, tweak, refurbish, dispose) OPNI designed to be component in communicating objective view on office building to inform decisions on its future (acquire, tweak, refurbish, dispose) (Semi) Objective and quantitative (Semi) Objective and quantitative Based on 100 question balanced scorecard Based on 100 question balanced scorecard OPNI is interview not self-completion, as many questions require interpretation by interviewer. OPNI is interview not self-completion, as many questions require interpretation by interviewer. Interviews take less than 2 hrs per building including walk-round. Interviews take less than 2 hrs per building including walk-round.

16 16Paul Bartlett OPN Key Facts

17 17Paul Bartlett OPN Question Examples 1

18 18Paul Bartlett OPN Question Examples 2

19 19Paul Bartlett OPN Result Output Percentage score of building for overall performance and sub- divided into categories: Infrastructure and support Infrastructure and support Environmental Conditions Environmental Conditions Facilities and Amenities Facilities and Amenities Design and Layout Design and Layout Location and Access Location and Access Set against Upper and Lower Quartile for Dataset Short commentary identifying salient points, photographs and areas for future attention.

20 20Paul Bartlett OPN Current Benchmark

21 21Paul Bartlett OPN Survey Database Prime respondents were Facilities Managers with day to day responsibility for space (ie usually building) being assessed. Prime respondents were Facilities Managers with day to day responsibility for space (ie usually building) being assessed. Some joint interviews with, for example, area property colleagues. Some joint interviews with, for example, area property colleagues. 29 Member premises; 10 clients 29 Member premises; 10 clients

22 22Paul Bartlett OPN Database Total of 39 buildings – est. 1,000,000 sq m Total of 39 buildings – est. 1,000,000 sq m est. 60,000 total workstations est. 60,000 total workstations 2/3rd buildings fully A/C 2/3rd buildings fully A/C 1950s to 2004 construction 1950s to 2004 construction Single to 25 storeys Single to 25 storeys

23 23Paul Bartlett OPN Illustrations of surveyed offices

24 24Paul Bartlett OPN 15 year old desk partitions appear high by modern standards

25 25Paul Bartlett OPN Tower working floor

26 26Paul Bartlett OPN Large staff restaurant used as informal meeting space

27 27Paul Bartlett OPN Central Atrium

28 28Paul Bartlett OPN New building where staff liked low light levels

29 29Paul Bartlett OPN A small office - showing the achievement of relatively high densities on the working floors without degrading working conditions

30 30Paul Bartlett OPN New office – highly flexible with gradation of workstation bookability

31 31Paul Bartlett OPN Current Database

32 32Paul Bartlett OPN Overall Performance

33 33Paul Bartlett OPN Performance by Category

34 34Paul Bartlett OPN Responses to Individual Questions 1 Q How long is the average journey to work location time? 70% say between minutes

35 35Paul Bartlett OPN Responses to Individual Questions 2 Q What is the ratio of meeting rooms to staff? 54% say > 1 :40 30% say between 1 :20-40

36 36Paul Bartlett OPN Responses to Individual Questions 3 Q What proportion of workstations are unoccupied at any one time? 60% believe its less than 25%

37 37Paul Bartlett OPN Responses to Individual Questions 3 Q Are meeting times dictated by the availability of appropriate rooms? Nearly 40% say never but over 50% say sometimes

38 38Paul Bartlett OPN Responses to Individual Questions 4 Q Is temperature/ventilation a significant source of staff complaints? In 85% of offices it is sometimes or often

39 39Paul Bartlett OPN Responses to Individual Questions 5 Q Do you monitor business measures of productivity? In 50% of cases there are no measures

40 40Paul Bartlett OPN Financial Sector Slightly lower overall score Slightly lower overall score High performance in Location and Environmental conditions High performance in Location and Environmental conditions Lower in Design and layout Lower in Design and layout

41 41Paul Bartlett OPN

42 42Paul Bartlett OPN Next Steps Revise and update (at margin) the questions Revise and update (at margin) the questions Review costing comparison Review costing comparison Expand database Expand database Expand sectoral analysis Expand sectoral analysis Publish principles and outcomes – interpret as design and management guidance Publish principles and outcomes – interpret as design and management guidance

43 43Paul Bartlett OPN Contact Details Paul Bartlett SBS Business Solutions Tel: Web:


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