CoreNet Global Houston Chapter Meeting April 14, 2009 Chris Hood, Hewlett Packard

2. Mobility can dramatically
lower your carbon
Footprint

3. By adjusting our
RE policy to
support the mobile
work style we can:
–Dramatically reduce
the carbon footprint
of office work
–Enhance organizational
capability
–Fund the Greening
of our office buildings
–Still come out ahead
on the balance sheet

4. In the beginning “Home”
was next to “Work”

5. Efficiency drove Work
to separate from Home.

6. Cities pulled
people in to Work…
For the first time in
human history more
people live in cities.

7. The office emerges
arranged like a factory

8. It becomes
part of
popular
culture
…and always well used

9. The age of abundance
came and went

10. This is a wake up call!
Globalization
Competitive cost pressures
Global Warming
Continuity of operations
Business partnerships
Group work
Mobile technology
Worker mobility
Energy costs
% Heads-down work
2008 Real estate / FTE
Domestic talent pool

11. Something has happened…
100%
An Average of 55% Under Utilization!
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
8:00 8:30 9:00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30
Average office space is dramatically under utilized.

13. A majority of organizations & people today
are surprised by the high levels of mobility
they are experiencing.

14. Now organizations are wondering where
everyone is…

15. We still love the idea of our own desk.

16. Sometimes individuals
are necessarily tied to
a particular location.

17. ...but more often than not
the needs are very
simple!

18. Sometimes dedicated space can
become a burden.

19. ...and it is often empty.

20. Utilization is the key!
- Drives technology improvements
- Drives policy improvements
- Drives increased awareness
- Reduces Commutes
- Reduces Energy Consumption
- Reduces Office Space per Employee
- Reduces Carbon per Employee

22. Before
> Underutilized dedicated space
> No certainty that the supposed virtue of face-to-
face collaboration actually occurs
> Legacy filing (often hard copy)
> Offices without a pulse

23. After
> Busy, high-energy, highly utilized space with free-address
work spaces
> Employees are enabled to work anywhere
> Better planned, and more flexible interaction

24. After
> Smaller footprint
> More discipline in filing/ sharing information
> A wider range of task settings

26. Case Study - Sun Mobility

27. Sun Employee Satisfaction

28. Sun Flexible Employees

29. Sun Flexible Employees

30. Case Study - HP Employees

31. HP Employee Engagement

32. HP Survey Results
More frequent use of collaborative technologies
correlates with higher levels of engagement
– but use of “sophisticated” collaborative technologies is
very limited

33. HP Survey Results
Employees who spend more time mobile are just as
engaged as dedicated desk workers

34. HP Survey Results
Hewlett Packard employees, on average,
are highly engaged
(Score of 3.82 out of 5)
„Future of Work‟ Survey
June 2007

35. HP Survey Results
The level of densification of the workplace has little
impact on engagement

37. 62%
found home the most
productive workplace
48%
claim to work harder now
that they are mobile
24%
felt that their main office
was the most productive
work location
The Voice of Mobile Workers
Practices, Relationships and Components of Effective Workplaces
Knoll Workforce Research
Global Business Division 2007

38. Mobility drives organizational improvement
> Switch easily between work settings
> Collaborate with many.
Collaboration focused and valued when in office
The Voice of Mobile Workers
Practices, Relationships and Components of Effective Workplaces
Knoll Workforce Research
Global Business Division 2007

39. Mobility drives organizational improvement
> Inspire dedicated-space users to rethink how they best work
> Challenge the evolving purpose and value of the office
The Voice of Mobile Workers
Practices, Relationships and Components of Effective Workplaces
Knoll Workforce Research
Global Business Division 2007

40. HP uses green initiatives to cut
costs and gain market share
“The price and
performance of IT are
no longer
compromised by being
green, but are now
enhanced by it.”
- Mark Hurd, CEO of HP

41. Net space after data center
additions, new business
$50
acquisitions etc.
Space
$20
Base space reduction
2007
2005 2008
2006

42. Case Study - Bracknell

43. Bracknell Area Savings
Previous Thames Valley Consolidated Bracknell
Total Net Usable Area - 451,304 sft Total Net Usable Area - 165,673 sf
$8,900 per person $5,400 per person
Total headcount = 2,845* Total headcount = 2,686*
63% Area Reduction
* NOTE : 50% of ETW headcount

44. Bracknell Energy Savings
49% Energy Savings

46. The numbers are too big to ignore!
73,000,000 sf
2007 New Office Construction

47. National Legislation

48. State Legislation
Executive Order S-3-05
700
600
Projected Business as Usual
Million Metric Tons Carbon Dioxide Equivalent
+1.2%/yr
Historical
500
-0.9%/yr
To Meet AB 32 Goal
400
300
200
100
0
1990 1994 1998 2002 2006 2010 2014 2018

49. Our Assumptions
•Modeled on a 100,000sf building
•Starts with 30% of staff going Mobile
•An initial reduction of 25,000sf
•Energy declining proportional to Bracknell
•Commutes declining proportional to Sun
•Mobility increasing 5% a year

50. Our Data
Our Calculation Method

51. Mobility Cuts Carbon Emissions

52. Mobility Cuts Land Consumption

53. Mobility Reduces Cost

54. What is the impact?
this or this?
What does your workspace look like?

55. We are just getting started…
35% of US companies have a mobility program
26% are developing one
15% have a mobility budget
Nemertes Research 2007

56. If Companies Go Mobile…
New metric for Corporate real estate should be
“CO2 per person”
Calculations show 66% reduction in RE CO2 per person
(over 10 years)

57. If Companies Go Mobile…
If new construction in 07 were leveraged by mobility;
This would equate to 523m metric tons of carbon over ten years‟
All US coal powered plants scheduled to be built over next ten
years would not be necessary

58. If Companies Go Mobile…
If only 40% of companies* did this over 10 years we
could save
–1.2 billion metric tons of CO2
–21 Manhattan‟s worth of carbon emission per year
–800 acres of green land per year
* Based on 4.7 billion square of existing office space in the US (Colliers 2007)

59. Human Resources
Respondents want to learn more about employee
mobility and change management practices

60. Workplace
Respondents want to learn more about distributed work activity settings,
measurement practices and social engagement technologies

61. What can you do tomorrow?
Assess readiness
Is the Status Quo acceptable?
Can rethinking RE strategy contribute to future business success?
How might this link to other competitive initiatives?

62. What can you do tomorrow?
Talk to people
Inside your company
In other companies
To practiced consultants

63. What can you do tomorrow?
Tell the story
Use this presentation
Do a Utilization Study
Calculate the benefits of better utilized space

64. Thank You!