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IN SEARCH OFINTELLIGENT SPACE

WHITE PAPER • JULY 2019

WHAT’S DRIVING THE NEED FOR WORKPLACE INTELLIGENCE

White Paper - In Search of Intelligent Space iOFFICECORP.COM

TABLE OF CONTENTS

Introduction 3

From Headcounts to Heartbeats 5

Making the Business Case 6

Shifts Happen 9

Technological Shifts 10

Workplace Shifts 12

Workforce Shifts 14

Workers are in the driver’s seat 14

The Distributed Workforce 15

Ready, Set, Shift 16

Where are you in the journey? 16

Where do you want to be? 16

What do you need to do to get there? 16

Reservations 17

Intelligence 17

The Experience 17

Insights and Continuous Improvement 18

Creating the Connected Workplace 19

Conclusion 20

About iOFFICE 20


INTRODUCTIONYou arrive at work early, excited about your presentation at noon, but desperate to add some finishing touches before you have to head over to HQ. Your phone directs you to an empty focus room where the chair, work surface, temperature, and lighting know it’s you and automatically adjust to your preferences. Your favorite ‘deep work’ music is playing, and a calming scent fills the room. Your calendar, phone, and email are set to ‘do not disturb’. Your workplace app is keeping an eye on traffic and will request an Uber to get you where you need to be with fifteen minutes to spare.

WELCOME TO INTELLIGENT SPACEAlready, billions of devices are embedded in our everyday lives. They talk to one another. They talk to organizational data streams. And, increasingly, they control and shape the environment by combining what they’ve learned with real time inputs.

The ‘internet of things’ (IoT)—devices talking to devices, either directly or through ‘the cloud’—is still in its adolescence, but is coming of age at lightning speed. Sensor technology is getting smaller, more efficient, and more affordable. Data streams are getting less proprietary and more accessible. Communications protocols are speeding up the delivery of data to increasingly sophisticated data mining, analytics, and software tools. Together, these trends are fueling an explosion in predictive analytics, augmented and artificial intelligence, virtual reality, and more. These developments hold the promise of a deeper, evidence-based understanding of the link between not just facility and human performance, but organizational performance as well.

Imagine if the real estate, facilities, IT, HR, sales, financial, vendor, and customer systems could share information with one another. Actually, they not only can, they must, if organizations are to remain competitive.

Large players who have invested in the future of work are reaping the people, planet, and profit benefits of integrated data streams and collective intelligence (see Sidebar: On the Edge of Smart). Industry leaders understand that people are the drivers of organizational performance and that workplaces and work practices should be designed to help them be the best they can be.

For the many organizations that are currently using costly on-prem integrated workplace management systems, or spreadsheets, this news may be an unwelcome addition to their already long list of priorities. However, the need for workplace intelligence can’t be ignored.

THIS PAPER WILL HELP YOU UNDERSTAND WHAT’S DRIVING THE NEED FOR SMART BUILDINGS AND WORKPLACES, WHY IT’S CRITICAL YOU TAKE ACTION NOW, WHAT THE PAYOFF WILL BE, AND HOW TO GET STARTED.

HumanPerformance

OrganizationalPerformance

FacilityPerformance


The Edge, Deloitte’s Amsterdam headquarters, is one of the world’s first genuinely smart buildings. More than

30,000 sensors track staff movement. At The Edge:

• Nobody has an assigned space. By studying mobility patterns, they found they were able to accommodate 2,500 workers with just 1,000 desks.

• Smart parking recognizes an employee’s car, admits them to the building, and directs them to a space.

• Garage lighting brighten as a car approaches and dim as it passes.

• An app directs the employee to an open workspace based on what’s on their calendar.

• Sensors throughout the floors report temperature and humidity. If people are too hot or cold, they can report it.

• The coffee machine remembers individual preferences and pours the perfect drink every time.

• A camera-equipped security robot patrols the space after hours and can identify intruders or report a false alarm.

• The cleaning crew receives information on which spaces do not need to be cleaned based on usage data.

• The gym recognizes individuals and tracks their progress.

• Apps help users find colleagues, book a meeting space, report maintenance problems, order a ride, remind people to stand up and move, order lunch, or pre-order a take-home dinner so it’s ready when they leave.

ON THE EDGE OF SMART

Of course, employees are free to choose whether they want to participate in programs that involve tracking them as individuals. Transparency and choice are critical as innovations such as these are rolled out.

FROM HEADCOUNTS TO HEARTBEATSMost of the tools we use to make workplace decisions today are based on static, point-in-time, or historical data. Our surveys, headcounts, and usage patterns reveal what was—or at least what people perceived it was—not what is, much less what should be. Time and budget constraints often lead to standards extrapolated from small slices of the workforce. Worse, workplace design and its impact on business outcomes is impossible to gauge because legacy systems and organizational silos lock down critical information about people, facilities, technologies, and other essential components of performance.

All that is about to change thanks to the proliferation of hardware, software, and integrated solutions that hold the promise of real-time insights and more.

The “Internet of Things” (IoT) was envisioned, at least conceptually, as early as the 1970’s when machine-to-machine communications were touted as the future of computing. Now billions of devices gather and share data. Some do so directly across wired and wireless networks, while others connect over intranets and the internet.

Our surveys, headcounts, and usage patterns reveal what was—or at least what people perceived it was—not what is, much less what should be.


Small cameras, sensors, monitors, and meters observe, measure, and report on the physical world in ways that were not possible just a few years ago. Among other things, they detect motion, temperature, pressure, light, water, energy usage, and chemicals. They can track human activities too, including health, mobility, eye movement, mood, and more.

All this collecting, sensing, and analysis that goes along with it will bring revolutionary changes in how we design and maintain workspaces, manage dwindling resources, control costs, and, most importantly, enhance human performance. The Integrated Workplace Management Systems, at the forefront of this revolution, are putting people and workplace data to work. IoT devices are informing operations in real-time how occupants are using space and services. These IWMS platforms, that now include employee-facing touch points, leverage IoT to keep the space and the employee in sync and connected with the resources they need, when they need them.

MAKING THE BUSINESS CASEIan heads up real estate and facilities for Azzip, Inc., a $3 billion-dollar market research firm with 2,000 employees and contractors in two U.S. cities. He’s been reading about how organizations are transforming their workplaces to increase collaboration and innovation, improve employee productivity and health, attract talent, and enhance sustainability. He thinks it’s time Azzip did the same. He’s toured some of the new workplaces, gathered all the numbers he knows the C-Suite will want, and is making his pitch.

Wow—Ian should have been in sales! Just 15 minutes into his presentation and he can tell he already hooked Otto the COO and Fiona the CHRO. Fred the CEO hasn’t checked his phone once, so that’s looking good, too. But CFO Irene has her arms crossed, her jaw clenched, and her eyebrows bunched up so tightly they’re practically touching.

“I don’t see a business case here, Ian,” says Irene.

Ian cycles back to his business case slide, “Just look at how much it could increase productivity and employee engagement and even draw talent away from our competitors.”

“I don’t buy it,” says Irene. “Those are all soft savings. You can’t fund a payroll with that.”

The rest of the faces are starting to harden.

Fred slaps a hand on the table (a signature move meaning the meeting is over) and says, “Looks like you have some work to do, Ian.” Let us know when you have something more solid.”

Of course, Ian’s no dummy. He saw this coming. As they push back their chairs, heads buried in their phones, Ian says “I’m pretty sure you’ll want to see the rest of the slides. Fact is, I’ve already done a small pilot and I think you’ll be impressed by the results.” Fred turns back to the screen; the rest follow suit.

Ian’s slides show, among other things, that a few smart building apps could save Azzip millions of dollars and pay for themselves many times over (see Figure 1: ROI of Intelligent Space)1



By improving employee engagement, they could increase the bottom line by $238,000 a year (through reduced turnover and increased productivity)

By keeping just 3 people from quitting, they could save $205,000 a year

By making people, spaces, and parking easier to find, they could save employees 24 minutes a day and increase productivity by nearly $3.6M a year

HR & PEOPLE BENEFITS

WELLNESS OPPORTUNITIESBy relieving chronic stress for just 5% of sufferers, they could save $128,000 a year

By optimizing their workplace, they could save $1M a year or accommodate another 250 people without adding real estate

By improving thermal comfort, they could increase productivity by $740k a year

By improving air quality, they could save nearly $680,000 in increased productivity

SPACE & ENVIRONMENTAL OPTIMIZATION

By eliminating just 4 interruptions a day, employees could increase productivity by $9M a year

By facilitating mobile work, they could reduce turnover, absenteeism, and space needs; increase productivity; and improve agility. Collectively, these could add $4.8M a year to the bottom line

By making people, spaces, and parking easier to find, they could save employees 24 minutes a day and increase productivity by nearly $3.6M a year

PRODUCTIVITY

Of course, Ian has lots of documentation to back up the assumptions behind all of his calculations. He hands the 30-page report to Irene.

“Well done,” says Fred slapping the table again. “Looks like you’ve got some work to do, Irene.”

By integrating and correlating CRE, HR, IT, and financial data, Ian has made a near bullet-proof case for workplace change.


FIGURE 1: THE ROI OF INTELLIGENT SPACE

ENGAGEMENT IMPACT CALCULATOR™DEVELOPED FOR iOFFICE

Breakeven on iOFFICE Investment Based on Engagement Increase (# of people)

SHIFTS HAPPENAccording to Mercer’s latest Global Talent Trends study, nearly three-quarters (73%) of 7,000+ global business executives surveyed expect that their industry will experience a major disruption in the next three years.2

The world of work is changing so rapidly that even the industry’s best thinkers can’t predict where and how people will be working even five short years from now. Disruption and change are the new normal. But how do you plan for the unknown?

The best of the expert advice can be summed up in one word: agility.

Cookie-cutter solutions based on what happened last year or even yesterday are not agile. The past is no longer predictive. Agile managers can’t wait for monthly, weekly, or even daily reports to inform their strategies. They can’t base multi-million-dollar decisions solely on gut feelings or intuition. They can’t afford to allow bias to drive their actions. They can’t react when things happen; they have to make them happen. Survival in the years ahead will demand real-time action based on real-time data, analyses, and insights.

The integration of data streams offers a new fact-based approach to understanding the interrelatedness of facility, human, societal, and organizational performance. It opens the door to new and deeper understandings of how work environments can influence focus work, collaboration, creativity, innovation, individual work styles, employee engagement, attraction and retention, well-being, and more. And it can help definitively tie those factors to organizational performance.

Technological, workplace, and workforce shifts are both enabling and driving the need for hyper-agility. Hyper-agility for the workspace starts with building a strong Software-as-a-Service (SaaS)-based IWMS foundation. Naturally, baseline services like space optimization, maintenance management, and asset tracking must continue to effectively support this shift. But in order to be hyper-agile, they must now connect to other SaaS-based platforms, apps, and systems to truly reap the benefits of continuous improvement. On-prem, highly customized solutions in the short and long-term will only create roadblocks to continuous improvement in achieving a fully-connected workplace.


Survival in the years ahead will demand real-time action based on real-time data, analyses, and insights.

TECHNOLOGICAL SHIFTSData is being collected faster than we can analyze it. But by itself, data is useless — an unintelligible mass of zeros and ones. This is the classic Data, Information, Knowledge, Wisdom [DIKW] conundrum (See Figure 2 DIKW Pyramid3). Data isn’t information until it’s analyzed in some useful way. Information isn’t knowledge without context. And knowledge isn’t wisdom without experience.

Sensors are getting more intelligent, efficient, affordable, and abundant. Transmission speeds and protocols are delivering data faster and more securely than ever. Data sources are becoming more uniform, open, and accessible. These and other trends are fueling the rapid evolution of smart, connected buildings (see Sidebar: Tech Trends Speeding the Emergence of Intelligent Buildings).

Data is being collected faster than we can analyze it. But by itself, data is useless – an unintelligible mass of zeros and ones.


FIGURE 2: DIKW PYRAMID

DATA

FuturePast

WISDOM

KNOWLEDGE

INFORMATION

Integrations, Sharing, Interpretation,Machine Learning, Predictive Analytics

* Experience *

* Context *

* Analysis *Big Data, Analytics

Sensors, Cameras, Wearables


DECREASING COSTS

Sensor costs have plummeted in the past decade and suddenly they’re everywhere — in our homes, offices, cars, and even in what we wear.

SaaS and cloud-based modern solutions are rapidly replacing what have become very costly and difficult-to-maintain in-house programs for managing real estate portfolios, infrastructure, facilities, and other priorities (legacy systems can cost $1M annually to maintain and additional $1M to upgrade).

Application programming interfaces (API) enable plug-and-play customization that is easier, cheaper, and more scalable than custom programming.

UBIQUITY

IDC reports shipments of wearable devices is likely to expand by over 50% by 2022.4

An estimated 37% of millennials use some kind of wearable device.5

Another 81% of U.S. adults and 76% of those in advanced economies use a smartphone.6

BETTER TECHNOLOGIES

Devices for capturing data have become smaller, more reliable and energy efficient, and better able to communicate over longer distances.

Transmission speeds and communications protocols are steadily increasing the velocity of data; 5G will accelerate it even further.

New storage and transmission protocols ensure greater security.

STANDARDIZED DATA

Data is increasingly digital and available in the Cloud.

Data structures are becoming more uniform.

New tools are unlocking insights from even unstructured data such as photos, video, and text.

Complex algorithms now allow us to make sense of the data we collect in real-time (e.g. relaying information about unusually heavy restroom usage and dispatching a cleaning crew).

ANALYTICS, AI & IOT

Machine learning and predictive analytics can combine to increase efficiency and reduce system friction (e.g. if the system knows a particular team always meets offsite on Friday morning, it can automatically adjust the heating and lighting schedule).

Augmented reality and machine-learning are set to substantially enhance the navigation and wayfinding experience.

The integration of hardware and software make it possible for data from sensors to initiate action, even without human intervention.

Some of the key hardware, software, and communication trends fueling the growth of building intelligence include:

TECH TRENDS SPEEDING THE EMERGENCE OF INTELLIGENT BUILDINGS

According to CBRE research, 70% of real estate executives plan to increase their investment in real estate technology in the next three years.7 They expect the biggest impact will come from:

Critically, while investments to date have centered on technologies for managing buildings, energy, and operations, new monies are being earmarked for improving the occupant experience.8 Over the next several years, we can expect a proliferation of:

.

Consumers are accustomed to controlling their devices, their homes, and their cars by just talking to them. To attract and retain extraordinary talent, organizations need to up their technology game because the best we’ve seen quickly becomes the least we expect.

WORKPLACE SHIFTSWe are already seeing a marked shift toward more agile workplaces. If there was a silver lining to the Great Recession, it’s that by shining a light on the need for better workplace utilization, it exposed the strategic potential of workplace design and work practices.

Global utilization studies showed employees were not at their desk the majority of the time. That led to the drive for massive space reduction. Private offices were deemed non-essential for most. Remote work programs, open office plans, unassigned seating, desk-sharing, hoteling, and other space-saving strategies were deployed with mixed results. The most successful among them showed the right mix of workplaces and work practices could not only reduce real estate costs, it could dramatically improve employee performance and, in turn, business results.

Critically, while investments to date have centered on technologies for managing buildings, energy, and operations, new monies are being earmarked for improving the occupant experience.

Leading organizations now look at space as a strategic asset, rather than a cost to be managed and minimized.

Apps that simplify people and space-finding, enhance wayfinding, streamline maintenance requests, improve physical comfort, increase productivity, enhance flexibility, and reduce friction in many of the ways people interact with their surroundings and with others and connect to the community.

Building technologies that learn from occupant patterns, integrate environmental data from internal and external sources, and accommodate occupant needs without being asked.

Sensors that track building health and take action to ensure a consistent occupant experience.

Technologies and data feeds that make it possible to test the impact of space design on human and organizational performance in real time.


Technology Rated #1 by % of RespondentsArtificial intelligence and machine learning 83%

The Internet of Things 56%


The broader organization now looks at space as a strategic asset, rather than a cost to be managed and minimized. As a result, they are designing spaces that offer choice, flexibility, and autonomy; places that actually enhance the lives of the people that occupy them. According to research by Gensler9:

1. 41% of employees now say they have choice in where they work, a 52% increase from six years ago

2. 44% say they work in a balanced workplace, an 83% increase over the same period

“To optimize performance, we must address effectiveness and experience in tandem,” says the Gensler report,

“Currently, less than half the workforce is in a workplace that achieves both.”10

When workplaces, work practices, and workplace cultures align to create a great workplace experience, the payoff is substantial (see Figure 3: Effectiveness + Experience > Engagement > Better Business Outcomes.11) High scores in both effectiveness and experience translate into increased employee commitment, satisfaction, and more.12 The result is greater engagement and better business outcomes, including 21% higher profit, 41% lower absenteeism, and 45% lower turnover.13

FIGURE 3: EFFECTIVENESS + EXPERIENCE > ENGAGEMENT > BETTER BUSINESS OUTCOMES

Workplace design will always be informed by listening to what people say they want. But, as buildings become more

intelligent and information about how space is actually used in real-time becomes available, we will increasingly be able

to deliver a great user experience and better business outcomes.

Quantifying experience and effectiveness can explain*:

44% of commitment55% of recommendation56% of job satisfaction

Companies with top quartile engagement have**:

21% higher profit41% lower absenteeism10% higher customer loyalty

WORKPLACEEFFECTIVENESS

(WPI)

WORKPLACEEXPERIENCE

(EXI)

EMPLOYEEENGAGEMENT

BUSINESSPERFORMANCE

Quantifying effectiveness alone can explain*:

29% of commitment35% of recommendation38% of job satisfaction

U.S. Workplace Survey 2019

*Explanatory power of workplace effectiveness(WPI) and experience (EXI) as related to employee engagement metrics and business performance

**Source Gallup Q12 Meta-Analysis

When workplaces, work practices, and workplace cultures align to create a great workplace experience, the payoff is substantial.

2019 Workplace Survey, Gensler (image courtesy of Gensler)


High Case ScenarioAverage salary = $130,000 a year ($100,000 plus benefits and taxes)Cost of turnover = 200% of salary *Total annual cost of turnover = $70 million/year

WORKFORCE SHIFTSThe employer/employee relationship is shifting in two fundamental ways. First, at least for now, low unemployment and talent shortages put the workforce in the driver’s seat. They know what they want and they aren’t afraid to jump ship for an opportunity that will better fit their needs. Second, the workforce is becoming more distributed. With unemployment at a fifty-year low and talent shortages already impeding business success, workers are calling the shots.

3. 27% of employees quit their jobs in 2018, the highest rate of voluntary separation rate since 2001.14

4. Nearly 60% of new hires quit before their second anniversary15.

With the cost of turnover estimated to total between 20% and 200% of salary, the bottom line impact on employers is staggering (see Figure 4: The Staggering Cost of Employee Turnover.16)

FIGURE 4: THE STAGGERING COST OF EMPLOYEE TURNOVERThe bottom-line impact of 27% voluntary turnover for a 1,000 employee company:

Clearly, the employee experience so many employers are talking about today isn’t delivering on its promise. Work practices, work processes, workplace design, and workplace cultures are out of alignment. From the hiring process onward, the majority of employees are disappointed in their jobs. While employee engagement numbers have been creeping up in recent years, they are still dismal. According to Gallup, only 34% of the workforce is engaged, 53% are not engaged, and 13% are actively disengaged17 — essentially walking around in a fog or entertaining themselves by undermining the success of others. Or worst of all, actively looking for a new job, while on the job.

Low Case ScenarioAverage salary = $45,000 a year ($35,000 plus benefits and taxes)Cost of turnover = 20% of salary *Total annual cost of turnover = $2.4 million/year

88% are disappointed by the on-boarding process18

69% say their workplaces are too noisy19

69% are unhappy with the office temperature20

Only 40% say they get to use their strengths every day21

Only 18% say they have time to think22

Only 21% say they had the ability to focus on one thing23

…workplace sludge is consuming a greater and greater share of a person’s day.

* According to the Center for American Progress, losing an employee can cost between 20% and 200% of salary

People are working harder and working longer hours, yet productivity is flat. It’s no wonder, given all the distractions of email, messaging, meetings, temperamental technology, and all the rest of the ‘noise’ people face throughout the day. Research shows the average information worker is interrupted every three minutes.24 Nearly half the time they’re interrupting themselves as they bounce from one unfinished project to the next. Each time, it can take as much as twenty-five minutes to get their head back in the game.25 This workplace sludge is consuming a greater and greater share of employees’ days.

Research shows that just about any work environment can be effective, as long as people have a choice of where they work. Not surprisingly, what employees of all ages want is more autonomy in how, when, and where they work.

> “Flexibility is something nearly all workforce segments agree on”, says Mercer in its latest talent trends report.26 > 75% of adults say flexibility is one of the most important factors in deciding on an employer.27 > A Capital One survey shows what employees want most in their next job is flexible hours (58%) and the ability to work

remotely (51%).28

Clearly, the cornerstone of organizational success is finding a better way to measure and manage how well the workplace is actually working.

THE DISTRIBUTED WORKFORCEIn 1989, management guru, Charles Handy — at times ranked #2 behind Peter Drucker in top management thinkers — wrote The Age of Unreason. In it, he predicted the days of the lifetime job and the paternalistic corporation would give way to the emergence of what he called a “shamrock organization.” In it, one leaf represents work that’s done by core staff, the second represents outsourced work, and the third represents what we would call freelance or gig work.

Handy’s prognostications are eerily unfolding before our eyes.

Reliable numbers are hard to come by, but the most authoritative estimate suggests 16% of U.S. workers were in alternative work arrangements in 2015 (i.e., temp workers, on-call workers, contractors, and freelancers), an increase in percentage of 50% in ten years.29 This portion of the workforce accounts for nearly all the job growth over the past ten years.30 And it’s not done growing. According to 7,000+ respondents to a Mercer survey, nearly eight in ten executives expect contingent and freelance workers will substantially replace full-time employees in the coming years as companies strive for agility.31

According to 7,000+ respondents to a Mercer survey, nearly eight in ten executives expect contingent and freelance workers will substantially replace full-time employees in the coming years as companies strive for agility.


Legacy systems and technologies simply won’t be up to the task of managing the agile workforce of the future.

READY, SET, SHIFTChange is never easy, but it doesn’t have to be hard either. Nor does it have to be wholesale.

Start your journey by bringing people together. HR, IT, CRE, FM, sustainability, risk management, and corporate communications all have a stake in this game (See Figure 5: How Employees Benefit From Opt-in).

With the team in place, begin to explore where you are in the journey, where you want to be, and what you need to do to get there.

WHAT DO YOU NEED TO DO TO GET THERE?Your core operational systems are the foundation of this modern, agile workplace. For most mid-size and large organizations, traditional IWMS (Integrated Workplace Management Systems) systems are responsible for real estate and property management, capital planning and project management, space management, operations and maintenance, and energy management. These systems can be made smarter by layering intelligence on top of your core (e.g., cloud-based SaaS, APIs, apps), making it available and easy to access, and using the insights you draw from all that to improve business performance.


A greater need for recognition-based security

More diverse and geographically distant teams

Increased complexity in space and technology provisioning

Increased need for robust cost allocation strategies

Increased complexity in compliance with local, regional, and country laws

WHERE ARE YOU IN THE JOURNEY? WHERE DO YOU WANT TO BE?

Answer this by asking your team the following questions:

> What are your top 3 business problems by department?

> Do you have the same business problems at the enterprise level?

> Does the data you have answer these questions?

> Is it easy to access and real-time?

> Does it allow you to make quick decisions?

> Do you monitor data quality?

Answer this by asking your team the following questions:

> What is your smart office vision for 3, 5, or 10 years from now?

> Have you visited smart workplaces?

> What success will look like?

> What are your goals?

> How will you measure results?

This dynamic and diverse pool of workers will present new management, security, integration, communication, collaboration, technology, and cultural challenges in both the physical and virtual workplace. Relevant to the workplace conversation, among other things, we can expect:


It all starts with the space. Traditional IWMS systems are not agile. Customizations, patches, and workarounds over the years have rendered them costly, inefficient, and difficult to maintain. But since modern solutions are modular, leverage the cloud, and can easily integrate with older systems, there is no need to rip and replace. When combined, they can visualize and monitor space usage and capacity and make it easy for occupants to find the people, spaces, and resources they need.

As layers are added to the mash-up, the combined systems get smarter and make it possible for:

> People to not just identify, but reserve spaces and resources. > Spaces to become intelligent by learning from and responding to their occupants and the environment.> Occupants to easily customize and control their experience. > Leadership to gain new insights and continually improve.

RESERVATIONSMost organizations use a calendar system, like MS Outlook® or Google® Calendar, to book meetings and invite guests. But with legacy systems, there’s no way to connect meeting spaces with those calendars. That disconnect leads to frustration and lost productivity due to double-bookings or underutilization when spaces are booked, but not used. The addition of an integrated reservation system alleviates these problems and makes it easy for anyone with access to the system to reserve or release meeting or workspaces and the associated resources (e.g., technology, refreshments, equipment). This technology is essential to supporting the workforce and workplace trends described earlier.

INTELLIGENCEReservation systems allow users to easily check in and out of spaces through apps and room panels. But with the addition of IoT and data analytics, those spaces can become responsive (e.g. adjusting the temperature and lights to occupants preferences or releasing a space if nobody shows up), predictive (e.g. turning the lights off in an area that has been historically unused after a certain time of day), and prescriptive (i.e. alerting the cleaning crew, or bot, that it doesn’t have to clean a particular conference room because it wasn’t used that day). This combination of technology and analytics offers leadership new insights into how space and other resources are used. It sets the stage for space optimization and better bottom-line results.

THE EXPERIENCEThe employee experience is the sum of every interaction they have with their employer. It starts long before they are hired and ends when their separation is complete. Whether good or bad, everything that happens along the way leaves an impression.

Since our working hours account for half or more of our workday waking hours, the day-to-day interactions we have — with colleagues, buildings, workspaces (both physical and virtual), technology, amenities, and more — heavily influence our overall experience. The integration of external APIs with cloud-based core systems can transform the employee experience.

In most cases, these APIs are inexpensive and easy to deploy. They allow users to control their physical comfort, request services, order transportation, report maintenance problems, ask for help, order food, de-stress, identify resources, check weather and traffic, connect with the local community, and more.

Platform-agnostic delivery of all the smart office features and functionality is critical. Access must be available through a variety of touchpoints including mobile, lobby or floor kiosks, room panels, desktop systems, calendar programs, and collaboration tools (e.g. Slack, Zoom, Dropbox). Mobile platforms must provide access to all the features and functionality through a single interface.

INSIGHTS AND CONTINUOUS IMPROVEMENTModern IWMS platforms can monitor/predict activity and prescribe/take action. Data that’s captured as employees engage with the workplace, one another, and other resources yield critical insights that fuel a cycle of continuous improvement.

Finally, while the intelligent office holds the promise of tremendous improvements in where and how we work, it also opens the door to misuse. The U.S. lags behind other advanced nations in data regulation. While that is likely to change, in the meantime, it’s imperative that organizations take the high road and err on the side of caution relative to how they use and secure the people data they gather. Just because we can access certain information, doesn’t mean we should. And when we do, we need to be open and transparent with all stakeholders, involving them as early as possible in our initiatives.

‘Opt-in’ should be the standard where personal information is involved. A violation of stakeholder trust can spell disaster and, as we’ve seen, it can become very public, very quickly. If you want their cooperation, show employees and other stakeholders how will they benefit from opting-in (refer to Figure 5: How Employees Benefit From Opt-in).


ORGANIZATIONAL BENEFITS

> Attract/retain talent> Enhance agility/resilience> Enhance innovation> Enhance sustainability> Improve public image > Increase shareholder value > ESG reporting> Enhance decision making> Visitor Management

HR BENEFITS> Increase attraction> Reduce turnover> Enhance productivity> Increase engagement > Improve performance > Enhance on-boarding> Foster collaboration > Enhance team cohesion> Increase autonomy/trust> Enhance flexibility

IT BENEFITS> Simplify tech stack> Mange tech stack> Enhance data security

FINANCIAL BENEFITS> Reduce occupancy costs> Aid in cost allocations> Improve predictability> Improve asset tracking > Avoid penalties> Identify cost redundancy> Reduce front of house costs > Track total cost of ownership> Improve budgeting

REAL ESTATE BENEFITS> Optimize real estate footprint> Speed moves> Reduce cost of churn > Improve wayfinding > Enhance resilience > Enhance pre/post measures > Aids in evidence-based design > Easily test new models

OPERATIONS BENEFITS> Increase efficiency> Ensure business continuity > Enhance safety > Reduce downtime> Expedite repairs > Optimize resource utilization> Automate processes> Reduce time to market> Reduce waste

PEOPLE BENEFITS> Save time> Increase productivity> Reduce time to decision> Ease people finding > Ease wayfinding > Reduce ambiguity > Enhance flexibility > Improve concentration> Improve teamwork > Enhance visitor experience > Ease room booking> Enhance comfort> Ease parking> Improve package delivery> Improve health > Reduce stress> Increase access to information > Enhance experience > Enhance community > Improve belonging> Increase safety

FIGURE 5: HOW EMPLOYEES BENEFIT FROM OPT-IN


CREATING THE CONNECTED WORKPLACE When it’s time to embark on developing your plan for creating your connected workplace, it’s helpful to know where you are on the maturity of your systems before diving in. Chances are you’re further along than you think, and the steps necessary to move to “connected” aren’t that far off, especially if you’re already working in a SaaS-based environment, or can add an Employee Experience layer to your systems without ripping and replacing your legacy infrastructure.

CAPABILITIES

IWMS or Space management system (preferably cloud-based for agility but not required)

IWMS or Maintenance and asset tracking integrated with space management

Integration with HR

Digital Workplace: Digitization of all workplace assets [elimination of paper/analog systems]

Analytics engine that provides accurate data, intelligent insights and action

Space, Move, Reservation and Visitor systems and processes and technologies in place

Reservation system integrated with Calendar systems and IT processes

IWMS/Space/Maintenance/Asset/Service integration with other core systems i.e. help desk systems

IoT infrastructure to provide real-time space use and visualization

Integration with new tech to improve employee experience (i.e. catering, parking, Uber, Doordash etc.)

Employee facing tech suite with multiple touch points – mobile, kiosk, integration with common workplace apps – Slack, Outlook

Connection of software systems across HR/FM/IT to tear down silos

Augmented reality for improved wayfinding

Fully integrated IoT and AI to support responsive, predictive and prescriptive analytics to optimize the current workspace

Expanded employee data (deeper data share with HR) connected to space data

Ability to measure impact of workplace tech on turnover/absenteeism

AI connected to smart city systems

Mobility is the expectation everywhere

CONNECTED FUTURE FLUIDBASELINE

Responsive workspace that maximizes utilization/resources, while intuitively rising to meet the needs of the employee

Giving employee control of their environment

Increased tenant/employee autonomy

Added amenities for increased employee satisfaction

Creation of EX-focused employer brands

FOCUS AREA

Automation of tasks for efficiency and data integrity

Centralized data in order to measure in real-time

Desktop and mobile tools sync

Maximize use of space and resources

Collect and incorporate employee and culture needs into workplace planning

Track workplace and EX goals to show enhanced business outcomes

Frictionless connection to space and resources for employees

Enhanced employee engagement resulting in reduced turnover and talent attraction

Refinement and ease around tech stack and integration of 3rd party apps

Data and analytics dashboards for real-time data analysis and predictive analytics

Desktop, remote and mobile tools function equally well

Standardization/customization across geographies/facilities

CONNECTED BASELINE FUTURE FLUID

While buildings like The Edge might already be Future Fluid, most FM and CRE leaders today view this as a not too distant goal. The ideal for the modern workplace is to move beyond the digital workplace (the ability to digitize workplace assets and processes) and into the Connected Workplace in which people, processes, and technology align around goals, feed real-time information into current systems, and gradually create the workplace environments that rise up to meet us, automatically. That’s the connection that creates genuine productivity, satisfaction, and experiential gains with provable ROI.

©iOFFICE, LLC 2019. The White Paper is the property of iOFFICE, LLC. Its contents are not to be copied or redistributed without the written permission of iOFFICE, LLC.


CONCLUSIONThe systems, technologies, and strategies that shaped the majority of organizations today are past their sell-by date. We have clung to 20th century practices for too long. Change is no longer in the wind — it’s a Category 5 hurricane and it’s barreling down on everything we do. Boarding up the windows and hoping it will pass is no longer an option. Survival depends on taking action now.

It’s time to shore up your infrastructure, wean yourself off systems that have become a tourniquet to growth, and invest in technologies and strategies that will survive the challenging years ahead.

While you may not have the luxury of being a lean start-up, you need to think like one because they will be the big disruptors. Untethered by legacy systems, technologies, and thinking, they were born for agility. Some will become your partners, others will become your competitors, and still others will become your competitors’ partners.

Envision a workplace where the spaces and places of work interact with and learn from their occupants, nurture them, and actually enhance their performance. Where the right people can come together fluidly as their talents are needed. And where processes and practices support rather than get in the way of success. That is the workplace of tomorrow, the workplace that will bring the best and brightest to your doorstep. If you build it, they will come.

ABOUT iOFFICEiOFFICE provides enterprise workplace leaders with the SaaS platform, mobile tools and analytics to simplify

facility management, empower employees and increase workplace productivity. The iOFFICE platform effortlessly

connects to HUMMINGBIRD, the No. 1 suite of employee-centric digital workplace solutions, and to the iOFFICE

MARKETPLACE, a vetted collection of critical workplace application partners. This allows organizations to optimize

their workplace while streamlining their technology stack. To discover why leading global organizations trust

iOFFICE to manage enterprise growth and enhance the employee experience, visit www.iOFFICECORP.com.

This report was researched and co-written by Kate Lister, President of Global Workplace Analytics in

collaboration with iOFFICE.

FOOTNOTES 1 Assumes: 1,000 employees, average salary = $50k/year, average benefits/taxes = 30%, 250 working days a year, productivity measure is $/hour.

2 Global Talent Trends 2019, Mercer

3 According to Wikipedia, the origin of the DIKW pyramid is uncertain. https://en.wikipedia.org/wiki/DIKW pyramid

4 IDC Forecasts Slower Growth for Wearables in 2018 Before Ramping Up Again Through 2022, IDC.com, September 13, 2018

5 How Many Millennials Use Wearables? eMarketer.com, December 18, 2018

6 Smartphone Ownership Is Growing Rapidly Around the World, but Not Always Equally, Pew Research Center, February 5, 2019

7 EMEA Occupier Survey Report 2019, CBRE Limited, 2019

8 EMEA Occupier Survey Report 2019, CBRE Limited, 2019

9 U.S. Workplace Survey, Gensler, 2019




13 The State of the Global Workplace, Gallup, 2013

14 U.S. Bureau of Labor Statistics, Quits Report, 2018

15 Why Are Workers Quitting Their Jobs in Record Numbers, Society for Human Resource Management (SHRM.com), December 12, 2018

16 There are significant Business Costs to Replacing Employees, Center for American Progress, November 2012

17 Employee Engagement on the Rise in the U.S., Gallup.com, August 26, 2018

18 Why the Onboarding Experience Is Key for Retention, Gallup Blog (undated)

19 The world’s best workplaces 2018, Leesman, 2019

20 The world’s best workplaces 2018, Leesman, 2019

21 Employees Who Use Their Strengths Outperform Than Those Who Don’t, Business Journal, Gallup, October 8, 2015

22 Why You Hate Work, New York Times Opinion, May 30, 2014

23 Why You Hate Work, New York Times Opinion, May 30, 2014

24 Too Many Interruptions at Work, Gallup Business Journal, June 8, 2006

25 Too Many Interruptions at Work, Gallup Business Journal, June 8, 2006

26 Global Talent Trends 2019 Study, Mercer, 2019

27 Workplace Flexibility is Top Consideration for Three-Fourths of U.S. Working Adults but Becoming Less Attainable, Mom Corps, September 2015 (2,084 U.S. Adults)

28 Work Environment Survey, Capital One, 2018

29 The Rise and Nature of Alternative Work Arrangements in the United States, 1995 to 2015, Katz (Harvard and NBER) and Krueger (Princeton and NBER), March 29, 2016

30 The Real Future of Work, Politico Magazine, February 2018

31 Global Talent Trends 2019, Mercer


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