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The Workplace - Johnson Controls Inc.

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<strong>Workplace</strong> Futures<br />

A Prospective Through Scenarios<br />

Authors<br />

Professor John Ratcliffe<br />

Ruth Saurin<br />

Project Coordinator<br />

Dr Marie Puybaraud


Contents:<br />

Keynote<br />

Background<br />

Exordium<br />

21 st Century challenges<br />

<strong>The</strong> Top Ten Trends<br />

What Lies Ahead?<br />

Sixteen 21st Century Challenges<br />

Facilities Management<br />

Challenges to Management by Dr. Patrick Dixon<br />

<strong>The</strong> <strong>Workplace</strong><br />

<strong>The</strong> Futures Methodology & Process<br />

<strong>The</strong> <strong>Workplace</strong> Prospective<br />

<strong>The</strong> Strategic Question<br />

Societal Drivers, Issues and Trends<br />

Demographic Drivers, Issues and Trends<br />

Economic Drivers, Issues and Trends<br />

Governance Drivers, Issues and Trends<br />

Environmental Issues and Trends<br />

Technological Drivers, Issues and Trends<br />

Wildcards<br />

Long-Term Global Risks<br />

Scenario Logics<br />

<strong>The</strong> Scenarios<br />

Scenario One: Jazz<br />

Scenario Two: Wise Counsels<br />

Scenario Three: Dantesque<br />

<strong>The</strong> Wind Tunnel Test<br />

A <strong>Workplace</strong> Prospective<br />

Next on the Agenda<br />

Research Priorities<br />

Propositum<br />

Appendices<br />

Participants<br />

Academic thought provocateur<br />

Provocative thoughts by Dr Michael Fenker, School of Architecture Paris La Villette<br />

Provocative thoughts by Dr Ruud van Wezel, <strong>The</strong> Hague University<br />

Provocative thoughts by Peter McLennan, UCL<br />

<strong>The</strong> Futures Methodology<br />

Partners<br />

Research Team<br />

References<br />

1<br />

© 2007 Copyright <strong>Johnson</strong> <strong>Controls</strong> Facilities Innovation Programme<br />

No information can be reproduced without the authorisation of <strong>Johnson</strong> <strong>Controls</strong>


Keynote<br />

by Rick Bertasi, VP Global<br />

WorkPlace Solutions, EMEA<br />

<strong>The</strong> Global Economy in which we operate is a major factor shaping the Future. <strong>The</strong> recent<br />

emergence of the Net Generation and the rise of business-web (b-web) has created a collaboration<br />

economy provoking unprecedented evolution in the way we aggregate a value chain, source<br />

suppliers and deliver services. Tapscott and Wiliams in Wikinomics qualifies this phenomenum as a<br />

“Category 6 Business Revolution”, calling for new strategies and business models to innovate and<br />

rewrite the rules of competition. <strong>The</strong>y call it the world of “wikinomics” (“in which the perfect storm of<br />

technology, demographics, and global economics is an unrelenting force for change and innovation”).<br />

Where are we going? How should we, <strong>Johnson</strong> <strong>Controls</strong> Global WorkPlace Solutions, a large multibillion<br />

corporate enterprise, operating over 130 countries and managing over one billion square feet<br />

of facilities globally for some of the world’s largest companies, anticipate the future? We have worked<br />

alongside some customers for almost 20 years, evolving and flexing our solutions as their business<br />

has changed. At each stage, we have provided the expertise and resources that have delivered<br />

tangible value and created business advantage. We know implementing business change quickly,<br />

with minimum disruption and risk, is key to corporate agility. But anticipating what will affect our<br />

customers business in the future could be even more beneficial. This report represents one of our<br />

efforts to do so.<br />

This Futures Workshop was designed to capture the views and opinions of thought leaders through<br />

prospective scenarios. Professor John Ratcliffe argues later in this report that “workplace change and<br />

innovation has become critical to the future of organisations in a dynamic, economy-driven and<br />

knowledge-based society”. Like John, we agree managing change is a vital dimension underpinning<br />

successful transition - to new work styles, patterns and locations all within the aegis of facilities<br />

management.<br />

In this workshop we used three future scenarios to explore and inspire imaginative and shared<br />

thinking. <strong>The</strong> objective is to provide a rich picture of the future through each scenario and engage our<br />

clients and partners on a thought provoking journey which opens all of our minds to future changes to<br />

support our clients’ business success.<br />

In this report you will have a chance to explore our findings and discover what the future of the<br />

workplace may look like through our three very distinct scenarios:<br />

Scenario One: Jazz<br />

“Complexity managed by ‘marketising’ decision processes”<br />

This scenario assumes an unprecedented acceleration of economic growth, relentless pressure for<br />

short-term gains and fierce competition on a global scale, driven by rapid technological advances<br />

and further market integration.<br />

Scenario Two: Wise Counsels<br />

“Harnessing the knowledge economy for sustainable development”<br />

This scenario assumes global economic stability and an effort to attain environmental balance and<br />

social progress.<br />

Scenario Three: Dantesque<br />

"Social reaction to over rapid change”<br />

This scenario assumes global economic stagnation, cultural difference and insecurity.<br />

Of course, these three scenarios are false choices. <strong>The</strong> true future could have features of each<br />

scenario above in multiple forms which are not covered herein. But Jazz, Wise Counsel and<br />

Dantesque give enough food for thought to start exploring the future.<br />

Let me know if you find this of help or interest. I can be reached at richard.s.bertasi@JCI.com.<br />

2<br />

© 2007 Copyright <strong>Johnson</strong> <strong>Controls</strong> Facilities Innovation Programme<br />

No information can be reproduced without the authorisation of <strong>Johnson</strong> <strong>Controls</strong>


Background<br />

This report offers an approach towards overcoming the continued resistance to change in the<br />

workplace. It is an era characterised by global economic boom, cutting edge technological inventions<br />

and the rising power of international brands. <strong>The</strong>se factors are fuelling the competition for talent<br />

between organisations and changing the workplace. <strong>Workplace</strong> change and innovation has become<br />

critical to the future of organisations in a dynamic, economy-driven and knowledge-based society.<br />

Managing this change, however, is a vital dimension underpinning successful transition - to new work<br />

styles, patterns and locations all within the aegis facilities management. Providers of physical and<br />

virtual workspaces need a clear understanding of the forces driving these changes and their impact,<br />

not only on individuals, but also on the organisations themselves.<br />

To this end, the Futures Academy in the Dublin Institute of Technology has collaborated with<br />

<strong>Johnson</strong> <strong>Controls</strong> to produce this report. Its aims are to:<br />

• Explore the changing context and nature of the workplace in the 21st century<br />

• Identify the challenges faced by a global workplace solution<br />

• Examine the current and emerging trends<br />

• Build a roadmap for the future<br />

As part of the process, <strong>The</strong> Futures Academy undertook in-depth background research. It analysed<br />

the data from survey questionnaires and held strategic discussions. In May 2007, a ‘Futures’<br />

Workshop was held in conjunction with <strong>Johnson</strong> <strong>Controls</strong> Global WorkPlace Solutions to identify and<br />

discuss emerging concepts, challenges and uncertainties surrounding the workplace change debate.<br />

To better understand the uncertainties, trends and interrelated forces influencing the shape and<br />

direction of the workplace, a creative approach was adopted. It is argued in this document and by the<br />

writers that a creative approach - in particular a “futures” approach - offers a broader insight into<br />

workplace prospects and generates a recognisable representation of what the future might hold.<br />

At <strong>The</strong> Futures Academy, the creative approach of the “Prospective Through Scenarios”<br />

methodology has been advocated. This methodology has been developed to explore and inspire<br />

imaginative and shared thinking. It is a process that enables decision-makers to envision a preferred<br />

future for their organisations and prepares them for navigating uncertainty. It results in improved and<br />

more informed decisions.<br />

Using scenario techniques enables us to expand our mental horizons. By developing a number of<br />

plausible scenarios, we can better understand and accept change. This will stimulate debate about<br />

the future move toward a common approach to change.<br />

<strong>The</strong> scenarios will not work if they are seen as a gimmick. <strong>The</strong> scenarios show that, given the<br />

impossibility of knowing precisely how the future will play out, a good decision or strategy is one that<br />

plays out well across several possible futures.<br />

3<br />

© 2007 Copyright <strong>Johnson</strong> <strong>Controls</strong> Facilities Innovation Programme<br />

No information can be reproduced without the authorisation of <strong>Johnson</strong> <strong>Controls</strong>


Exordium<br />

Professor John Ratcliffe<br />

<strong>The</strong> spirit of this work is based on the premise that a new mindset, reinforced by fresh ways of<br />

thinking about the future, is needed by all those involved in conceiving, designing, funding,<br />

constructing, occupying and managing the workplace so as to face the challenges, and grasp the<br />

opportunities, that lie ahead over the new few decades.<br />

At the global scale, there is growing recognition that humankind is on a non-sustainable course which<br />

could lead to ‘grandscale catastrophes’ [e.g. Lovelock, 2006; Rees, 2004]. At the same time,<br />

however, we are unlocking formidable new capabilities. This could be humanity’s last century, or a<br />

century that sets the world on a new course towards a spectacular future. Echoing the warnings of<br />

Paul Hawken and Amory and Hunter Lovins (2000), and their promotion of natural capitalism as a<br />

fundamental change in the way of doing business, the global economy seems to be outgrowing the<br />

capacity of the earth to support it. We are consuming renewable resources faster that they can<br />

regenerate: forests are shrinking, grasslands are deteriorating, water tables are falling, fisheries are<br />

collapsing and soils are eroding. On top of this, there is climate change, rising and moving<br />

populations, an increasingly polarised world, perverse subsidies by governments, impending energy<br />

and water wars, failed nations, shanty cities and false accounting for the GDP measure that ignores<br />

natural capital. Throughout, there is also the uncertainty of new technologies more powerful than the<br />

sum of their parts. Indeed, it is possible to think that we have become like the sorcerer’s apprentice,<br />

having started something we can barely control!<br />

Arguably, one of the single most important issues entwined in this imbroglio is the power of large<br />

corporations to shape the future of the planet. And, for the property professions, this means how<br />

corporate real estate, in all its forms, is proficiently developed and properly managed. <strong>The</strong> debate, of<br />

course, rages around those twin concepts of ‘sustainability’ and ‘corporate social responsibility’, and<br />

few involved in the processes of land use development or property facilities management can remain<br />

untouched or agnostic about either the ethics or economics of each. Palpably, both sustainability and<br />

corporate social responsibility [CSR] are fast becoming mainstream business imperatives.<br />

<strong>The</strong> main proposition, throughout, is that the real estate community worldwide, through initiatives<br />

such as this should foster and promote a more informed, structured and imaginative understanding of<br />

the long-term strategic stewardship of the built environment. Most particularly, that corporate<br />

organisations and real estate companies collectively and singularly anticipate and prepare for the<br />

future condition and function of the workplace by exploring and addressing the constructive<br />

connections between sustainability, CSR and property facilities management.<br />

4<br />

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No information can be reproduced without the authorisation of <strong>Johnson</strong> <strong>Controls</strong>


21 st Century<br />

challenges<br />

<strong>The</strong>re is widespread recognition that<br />

we live in an era of rapid change in<br />

which new discoveries, philosophies<br />

and technologies play an ever more<br />

prominent part in shaping social and<br />

economic development. <strong>The</strong> world is<br />

becoming increasingly complex, more<br />

competitive and better connected.<br />

<strong>The</strong>re is economic internationalisation<br />

on the one hand, yet cultural<br />

decentralisation on the other. Society<br />

has shifted from an industrial base to<br />

an information and knowledge<br />

orientation. Advances in genetics,<br />

materials, energy, computing, robotics,<br />

miniaturisation, medicines, therapies<br />

and communication proceed apace.<br />

<strong>The</strong> developed world is getting smaller,<br />

older and wealthier, whilst the<br />

developing world grows bigger,<br />

younger and relatively poorer.<br />

A blurring of boundaries between<br />

disciplines, industries and social<br />

enterprises is taking place. And as<br />

those boundaries fade, the lines<br />

connecting the constituent parts<br />

become more critical, so that networks,<br />

systems and holistic thinking are more<br />

meaningful. Moreover, crucial issues<br />

on a global level – demographic,<br />

natural resources, the environment and<br />

human culture – have to be addressed.<br />

A veritable transformation, or great disruption, is occurring. Something old is<br />

coming apart at the seams, and something new is emerging.<br />

Why the 21st Century is Different<br />

Until relatively recently humankind retained a simplistic view of the world. Back in the 1960’s, and<br />

early 1970’s, it seemed possible to keep an overview of development, take future changes into<br />

account and make five to ten year planning proposals based on ten to twenty year forecasts. It was a<br />

period of trend projection, time series, network analysis and mathematical modelling. Above all,<br />

perhaps, it was an era with a belief that tomorrow would mostly resemble today. <strong>The</strong> future was a<br />

given, and planning of all kinds sought to adapt current trends to meet that predestined condition.<br />

During the 1970’s, and into the 1980’s, however, the view of the future changed. With sudden and<br />

significant economic disruptions and social upheavals the future did not seem as predictable as had<br />

previously been imagined. Indeed, it became recognised as uncertain. <strong>The</strong>re was no longer only one<br />

likely future path of development, but several different and possible futures. All these futures,<br />

moreover, would be shaped by a number of critical challenges:<br />

• Too many people. As the world’s population grows to about 9 billion around 2050, global<br />

tensions will climb as a result of dropping water tables, rising and changing consumer demand,<br />

uncontrolled migratory movements, calls for equality in healthcare, pollution, famine, congestion,<br />

unemployment, poverty, disease, starvation, social violence and the like. <strong>The</strong> challenge is to<br />

determine and achieve a stable and sustainable population for the earth.<br />

• Not enough resources. Conflict over valuable resources – and the power and wealth they confer<br />

– is fast becoming a prominent feature of the global landscape. International security expert<br />

Michael T. Klare (2002) argues that in the early decades of the new millennium, wars will be<br />

fought not over ideology, but over dwindling supplies of precious natural commodities. <strong>The</strong><br />

challenge is to shift economic thinking from an emphasis on human productivity to a radical<br />

increase in resource productivity through the concept of natural capitalism.<br />

• It takes time. Many, if not most, of the major ‘momentum trends’ for the 21st century are longterm<br />

in their formation, impact and necessary control. We need to ‘stand in the future’ and create<br />

a strategic view that is unrestricted by the exigencies of the present – imagine ahead and plan<br />

backwards. Whilst we cannot predict the future in detail or with surety, we can study the<br />

alternative directions it might take and how to influence them over time. <strong>The</strong> challenge is to learn<br />

how to handle long-term, intergenerational lead-times.<br />

• <strong>The</strong>re will be new technologies. With 20th century technology, there was a massive gulf between<br />

nature's systems and man-made systems. At the dawn of a new century we are witnessing new<br />

discoveries, innovations and adaptations that combine living and non-living systems. <strong>The</strong>re are<br />

new forms of medicine and farming. <strong>The</strong>re is also the prospect of new forms of ‘artificial life’. <strong>The</strong><br />

challenge is to decide how to use these technologies responsibly and harness them to create a<br />

better world.<br />

• <strong>The</strong>re will be surprises. Wildcards or jokers will be played from time to time. Some of these might<br />

be totally unexpected – some could be unlikely yet predictable. Leaders in organisations at all<br />

levels, and in all situations, need to collect the information, study the signs and confront the<br />

issues surrounding the degree of probability and scale of impact of macro-uncertainties that<br />

might impinge upon their areas of responsibility. <strong>The</strong> challenge is to avoid tragedy by both<br />

anticipating and preparing to mitigate damage done by ‘predictable surprises’.<br />

Perhaps the main difference that distinguishes the 21st century from those that proceeded it is the<br />

need to develop a mindset that can tackle the conscious design of large systems – cities,<br />

communities, corporations, countries, cultures, domains and the earth itself.<br />

5<br />

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No information can be reproduced without the authorisation of <strong>Johnson</strong> <strong>Controls</strong>


<strong>The</strong> Top Ten Trends<br />

1. A New Energy Age<br />

• China and India competing with the United States and Europe for access to energy resources.<br />

• New energy innovations will spawn new industries – hydrogen, nano-energy and advanced<br />

nuclear as well as renewable sources.<br />

• Energy terrorism as a potential weapon.<br />

2. <strong>The</strong> Innovation Economy<br />

• Free minds and free markets creating prosperity based on the new ‘building blocks’ (bits,<br />

atoms, neurons and genes).<br />

• Internet and wireless all-pervasive by 2020.<br />

• <strong>The</strong> infotech market grows to over $2.5 trillion by 2020.<br />

3. <strong>The</strong> Global Talent War<br />

• A scarcity of skilled employees at a time of increased globalisation and competition.<br />

4. Longevity Medicine<br />

• <strong>The</strong> largest global marketplace in the near future will offer a variety of anti-aging and health<br />

enhancing products.<br />

5. Heavy Weather Ahead<br />

• Climate change is a ‘singularity’ that cannot be fixed fast enough.<br />

• Industry will compete to clean up the planet.<br />

• Corporations will lead the charge to build a more sustainable world.<br />

6. Cultures in Collision<br />

• <strong>The</strong> ‘battle for the future’ pits secular and religious extremists against the movement towards<br />

modernity.<br />

• Continued poverty will kill globalisation.<br />

• Sustainable globalisation is needed.<br />

7. Security Trends<br />

• World War III has begun and we are not prepared.<br />

• Bio-tech risk is high and dirty bombs threaten life and property.<br />

• Cyber attacks are coming and privacy will be traded for security.<br />

• Crime will be more sophisticated and dangerous.<br />

8. Weird Science<br />

• Artificial life will spawn new electronic beings.<br />

• Nano-biology will build improved humans.<br />

• Quantum computers will radically increase our understanding.<br />

• Robots, to protect, heal, manage and clean, will become vital members of society.<br />

• <strong>The</strong> Megaverse (collapsing TV, telephones, wireless internet and computers) becomes the<br />

Next Net.<br />

9. <strong>The</strong> Emerging Invisible War<br />

• A dangerous war emerges between global organisations, governments and religion,<br />

competing to control individual rights, minds and freedoms.<br />

10. China’s Future<br />

• China will dominate world trade, energy resources, innovation and security.<br />

• It faces many risks about its future stability.<br />

• <strong>The</strong> US – China relationship is paramount to the future growth and stability of the world.<br />

Source: <strong>The</strong> Extreme Future (2006)<br />

James Canton, Institute for Global Futures.<br />

6<br />

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What lies ahead?<br />

It is an extraordinarily mixed picture that emerges when we try to look forward to the global condition<br />

for the 21st century.<br />

<strong>The</strong> following challenges are among those that come to the fore.<br />

• Corporate Governance. <strong>The</strong> integrity of corporations, financial institutions and markets is<br />

essential to maintain confidence and economic activity, and to protect the interests of<br />

stakeholders. A spirit of transparency, a culture of responsibility and people of probity are the<br />

three prime elements of public trust. This trust has been shaken in the opening years of the 21<br />

century, but there are significant signs that ethical business practice and corporate social<br />

responsibility are on the up-turn.<br />

For the future, it is agreed that moral capitalism is the most appropriate means by which our<br />

modern, global human civilisation can empower people and enrich their lives materially and<br />

spiritually [Young, 2003].<br />

• A Broken Internet. Rapid global expansion of Internet use obscures the looming problem of added<br />

patches, plugs and workarounds, as the net becomes more fragile. Worrisome reports abound of<br />

more spyware, virus-laden e-mails, security attacks, spam, botnets and digital extortion. Indeed,<br />

the worldwide IT infrastructure is highly vulnerable to premeditated attacks with potentially<br />

catastrophic effects. Heavy handed reforms, however, might make the Internet more secure, but<br />

less interesting. Nevertheless, we might just be at the point where the utility of the net stalls – and<br />

perhaps turns downwards.<br />

• Improved Global Governance. <strong>The</strong> international system is facing a serious challenge as faith in<br />

the pattern and performance of global governance wanes, and the faultline between rule-makers<br />

and rule-takers widens. Five issues top the human agenda: peaceful coexistence of different<br />

people, the widening gap between rich and poor, ideological gulfs between and within societies,<br />

environmental protection and good governance. Seven possible regimes of international society<br />

have been identified with varying degrees of centralisation and differing capacities to promote<br />

peace, distributive justice, cultural pluralism and individual freedom [Walzer, 2004).<br />

A. A Unified Global State; of maximum centralisation, where all humans have the same rights<br />

and obligations.<br />

B. International Anarchy; of a radically decentred world, where organisations are individual<br />

sovereign states, with no effective law binding on all of them.<br />

C. Imperial Rule; a form of Pax Romana (Pax Amerciana? Pax China??? Pax Walmart???).<br />

D. <strong>The</strong> Current Arrangement of International Society; one step from anarchy, with a series of<br />

global organisations that serve to modify state sovereignty.<br />

E. A Much Stronger International Civic Society; perhaps the best available option, but not<br />

necessarily sufficient for the task.<br />

F. A United States of the World; a federation of states, with a greatly strengthened UN<br />

incorporating the World Bank and a World Court.<br />

G. Third Degree of Pluralism; the familiar anarchy of states controlled by a threefold set of nonstate<br />

agents – organisations like the UN, civil society associations and regional unions like the<br />

EU.<br />

7<br />

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• Strengthened Leadership. It is often said we lack real leadership in today’s world. People are<br />

needed who can provide real leadership in multiple and diverse contexts, with leadership<br />

approached as an interactive art. Six challenges of leadership for the 21 century have been<br />

established [Williams, 2005].<br />

A. <strong>The</strong> Activist Challenge; calling attention to a contradiction in values and the fact that there is a<br />

problem of behaviours and values that undermine the long-term integrity and survival of the<br />

group.<br />

B. <strong>The</strong> Development Challenge; cultivating the latent capabilities to progress by giving people<br />

time to discover what works, and giving them a stake in developing their capacity.<br />

C. <strong>The</strong> Transition Challenge; moving from one system of values to another by providing an<br />

orienting purpose and becoming a visible symbol of the transition ideal.<br />

D. <strong>The</strong> Maintenance Challenge; protecting and sustaining what is essential during hard times by<br />

maintaining the mission and core values.<br />

E. <strong>The</strong> Creative Challenge; doing what has never been done before by being generous in<br />

‘wasting’ time and resources.<br />

F. <strong>The</strong> Crisis Challenge; leading in a period of extreme danger by exploring every alternative.<br />

All in all, the leader of the future must be part teacher, part nurturer, part visionary, part warrior and<br />

part sage. [Sidle, 2005].<br />

Healthier Society. Introduction of new technologies has brought remarkable health improvements over<br />

the past few decades. <strong>The</strong> decades to come present a plethora of challenges, including:<br />

A. <strong>The</strong> Quest for Human Longevity; the first longevity revolution mainly occurred over the early<br />

part of the 20 century due to sanitation, vaccines and improved nutrition, and we may now be<br />

at the cusp of a second as science seeks to retard, stop or even reverse our physical<br />

deterioration.<br />

B. Medical Biotechnology; receives undisputed support for faster and more accurate diagnosis,<br />

prevention and therapy, but there is growing scientific consensus that biotechnology has<br />

advanced to the point that terrorists and rogue states could engineer novel pathogens.<br />

C. In the Shadow of Pandemic; pandemic influenza should be viewed as a permanent problem<br />

that can only be managed, never solved.<br />

D. Brave Neuro World; scientists have recently developed minimally invasive and comparatively<br />

benign technologies for exploring and altering the brain, which can change personality,<br />

behaviour and mood, but such advances raise major ethical, legal and philosophical issues.<br />

E. Prescription Drugs Alter Lives, Minds and Bodies; today’s drugs are increasingly directed<br />

towards three groups – high performance youth, middle-aged seekers of productivity and<br />

comfort, and high performance seniors, with liver distress the canary in the mineshaft.<br />

F. Keeping Patients Safe; staggering figures are emerging as to the number of hospitalised<br />

people who die each year as a result of errors in their care, though a new culture of safety is<br />

evolving.<br />

G. Drug Abuse and Addiction; has plagued almost all parts of the world over the past 50 years,<br />

and the threefold approach to mitigate it – reduction of supply, incarceration and treatment –<br />

has largely failed.<br />

H. A Global Response to AIDS; we have the science and technical capacity to deal with the AIDs<br />

epidemic, yet investment still has not begun to yield results.<br />

8<br />

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Sixteen 21st Century<br />

Challenges<br />

<strong>The</strong> meaning of the 21st century is that evolution on Earth is now, suddenly, largely in human hands.<br />

Now that we are in charge of evolution we must learn the rules. Humanity has to learn how to control<br />

technology and avoid what is too dangerous. This century, one hopes, will see a transition to a planet<br />

managed well enough to make its long-term survival likely. <strong>The</strong> 21st century brings 16 challenges:<br />

1. Changing from wrecking the planet to healing it.<br />

2. Ending extreme poverty.<br />

3. Lowering population.<br />

4. Improving lifestyles while healing the environment.<br />

5. Preventing war among nations with WMD.<br />

6. Enacting appropriate laws and trade agreements, so that global business benefits everyone.<br />

7. Preserving the biosphere.<br />

8. Removing the means and motivations for terrorism.<br />

9. Helping young people everywhere to understand the meaning of 21 century.<br />

10. Building appropriate defences against infectious diseases.<br />

11. Developing the capability latent in everyone.<br />

12. Insuring that the Singularity – a chain of reaction of computer intelligence – acts in our best<br />

interests.<br />

13. Taking whatever actions necessary to bring the probability of extinction to zero.<br />

14. Understanding what Transhumanist changes to Homo sapiens can be made without negative<br />

consequences.<br />

15. Considering what a truly magnificent civilisation could be like at the end of the 21 century.<br />

16. Living at peace with Gaia – the Earth’s controls system – by understanding and not exceeding its<br />

constraints.<br />

Source: <strong>The</strong> Meaning of the 21st Century (2006)<br />

James Martin, Chairman Emeritus, Headstrong.<br />

9<br />

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Facilities<br />

Management<br />

<strong>The</strong> emergence of the knowledge<br />

society, building on the pervasive<br />

influence of modern information<br />

and communication technologies,<br />

is bringing about a fundamental<br />

reshaping of the facilities<br />

management sector. In the wake of<br />

this dynamic trend, the facilities<br />

management industry is full of<br />

energy, ideas and enthusiasm.<br />

As companies strategically expand their remit to embrace globalisation, international boundaries are<br />

being wiped away, as technological, political and marketplace forces spur on competition, forcing<br />

organisations to adapt and formulate new best practice methods in order to compete in the world<br />

marketplace. As a result, services are now being offered on a global basis. Facilities Management<br />

needs to be framed to this context, taking account of the organisation, its customers, the workforce,<br />

service providers and suppliers and the community.<br />

Consequently, facilities managers are moving a step above the design, procurement, and furnishing<br />

of buildings, and are focusing on developing the skills of managing how a facility is used and how it<br />

evolves in response to changing occupier demands. <strong>The</strong> stage is being set for dramatic<br />

improvements, including more efficient utilisation, cost reduction, improved facilities condition and<br />

more productive workplace environments. Nevertheless, these developments do not come without<br />

their costs. While innovative improvements expand the remit of the facilities management sector,<br />

critical issues are arising in the form of commercial survival, global dominance and total enterprise<br />

security. Facilities managers must be able to make timely proactive decisions in order to surpass<br />

these criticalities.<br />

Facilities management is increasingly thought of in terms of business support. Solutions and criteria<br />

are set in terms of business performance, and operations re-defined as business services. <strong>The</strong><br />

objective here is to facilitate business and work. But, how can a facilities manager stay connected to<br />

the business strategy, manage more projects with less staff, and still provide responsive service,<br />

while the business environment they support is changing rapidly? Nowadays, Facilities Management<br />

(FM) is defined in terms of business support while business performance harnesses business<br />

success, and business operations have become otherwise known as business services. <strong>The</strong> FM<br />

objective now is to facilitate business goals and work practices (Alexander, 1997). Nevertheless, how<br />

can a facilities manager align himself to the business strategy and provide a reactive service, while<br />

the business environment they support is changing rapidly?<br />

In response to this, according to Gaddie (2003), facilities managers should be encouraged to:<br />

• Cultivate strategies, plans and budgets in a continuous, hands-on fashion<br />

• Develop, plan and implement facilities projects in alignment with the organisational strategic<br />

vision and budget<br />

• Prioritise and allocate equipment and facilities in alignment with organisational priorities<br />

• Provide consistent performance to plan measures, communication and reporting for all projects<br />

This new phase of facilities management requires much deeper consideration in order for it to<br />

succeed in the 21st century. Consequently, a number of hard-hitting questions have been posed with<br />

the intention of provoking ideas, responses and openings within the mindset of the facilities manager:<br />

• Is the pace of organisational change exceeding the ability of the facilities managers to act<br />

accordingly?<br />

• What is the next radical step in reshaping facilities management?<br />

• How can a facilities management strategy provide flexibility in uncertain times?<br />

• What are the key competencies of successful facility managers and how are they identified? How<br />

do they improve and pass on these skills?<br />

• What are CEO’s and CFO’s looking for from facilities managers?<br />

Organisations, are dynamic at different levels, and as their pace differs, so does the necessary<br />

management response to accommodate or even encourage change. In practice, few organisations<br />

have the opportunity to design a facilities organisation with a ‘blank sheet of paper’. For most<br />

organisations there will be existing activities, probably fragmented, possibly with gaps in the provision<br />

and maybe with overlaps and some confusion. It is from this base that those seeking change must<br />

move. Adaptation to change will continue to be a key business criterion in the coming decades, and<br />

will also continue to provide the greatest challenge.<br />

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Thinking and planning forward in order to adapt to change demands a more integrated, holistic and<br />

synergistic mechanism involving a wide range of stakeholders taking responsibility for the<br />

development of shared future orientations as a basis for long-term strategic planning in facilities<br />

management – ‘A Futures Approach’.<br />

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Challenges to<br />

Mangement by<br />

Dr Patrick Dixon<br />

Leading futurist, Dr. Patrick Dixon, contends that what lies ahead for the world will<br />

be:<br />

Fast; Urban; Tribal; Universal; Radical; and Ethical. Here are some of the major challenges he poses<br />

to corporate management heading towards such a future.<br />

Fast<br />

• How flexible is your organisation in adapting to change, and does it use outside ‘visionaries’ to<br />

question the basic assumptions held internally?<br />

• Since planning takes longer than events to happen, is enough time invested in parallel planning?<br />

• Is the best value for money obtained in telecommunications?<br />

• How is the entire organisation’s intellectural capital and knowledge base managed?<br />

• Is the company up-to-speed in such areas as internet access and use, website value, encryption,<br />

multimedia investment, virtual reality, personalisation, speech recognition, surveillance and a<br />

pending financial services revolution?<br />

Urban<br />

• Does the organisation understand the nature of megacities and have a strategy for developing<br />

markets there?<br />

• Is there a location policy devised, and are the offices of the right size, in the right place, with<br />

continuing easy access globally, regionally and locally?<br />

• What effect will energy and water restrictions have on the business?<br />

• Is the company family friendly and relationship aware with appropriate policies in place?<br />

• How does the organisation intend to tackle the issue of an ageing population in terms of<br />

retirement, recruitment, terms and conditions of work, pensions and the ‘grey spend’?<br />

Tribal<br />

• Has the organisation ever examined ‘tribalism’ as an issue – national culture, target groups,<br />

markets and corporate behaviour?<br />

• What is company policy regarding language, and does it need reviewing in the light of current<br />

trends?<br />

• How sensitive is the organisation to cultural issues, and is special training given at any time?<br />

• Does the corporation invest enough in relationship management, building a tribe of loyal, happy<br />

customers?<br />

• Is there a strong corporate ‘pride factor’ among the workforce?<br />

Universal<br />

• How does the company address the new challenges posed by globalisation and ensure that all<br />

concerned are fully aware?<br />

• How vulnerable is the organisation to political risk, economic instability and currency fluctuation,<br />

especially in emerging markets?<br />

• Is the organisation prepared for sudden change in such areas as transnational trade unions,<br />

working hours in the global village, disintermediation, virtual company competition, home working,<br />

and threats and opportunities in mergers, acquisitions and disposals?<br />

• What future-oriented market research is undertaken, is the company identity right, and do<br />

products need rebranding for a global market?<br />

• Does the current location, structure and style of the company provide a continuing competitive<br />

advantage?<br />

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Radical<br />

• How ready is the organisation for significant shifts in market ‘culture’ – the way people think,<br />

believe and behave?<br />

• Is the company effectively networked nationally, regionally and globally – particularly in the event<br />

of the loss of national government power?<br />

• Does the corporation have community action or civic engagement policies, and is it prepared to<br />

address the vexed issues of ‘reasonable profit’, i.e. institutionalised corruption and ‘corporate<br />

responsible behaviour’?<br />

• How is the company prepared to handle single-issue activism – is there a think-tank or monitoring<br />

system to give early warning, and a rapid response media unit to provide quick, reliable and<br />

authoritative answers?<br />

• Have special issues adequately been reflected in corporate policy and promotion?<br />

Ethical<br />

• What are the key ethical issues facing the organisation over the next decade?<br />

• From where do corporate ethics emerge?<br />

• How well protected and sensitised is the company against civil litigation?<br />

• Is the corporate culture sympathetic to and supportive of the well-being of the workforce?<br />

• Does the upsurge in spirituality in many parts of the world impact upon corporate culture?<br />

[Derived from Dr. Patrick Dixon (2004) Futurewise, Profile.]<br />

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<strong>The</strong> <strong>Workplace</strong><br />

<strong>Workplace</strong>s have undergone dramatic<br />

changes since the 20th century, and<br />

now, with the advent of the new<br />

millennium, they are facing many new<br />

opportunities and threats.<br />

Pivotal Events<br />

<strong>The</strong> workplace picture is a fluid one. Advocates of workplace change believe organisations are not<br />

able to keep up with the pace of change; the notion that ‘a job is for life’ is disappearing; and<br />

workplaces are increasingly complex areas. While critics argue that these claims are sensationalised,<br />

producing unnecessary scaremongering. Regardless of what view one takes, a number of factors are<br />

contributing to a changing global pattern, which includes globalisation, democratisation, and technical<br />

and creative innovation. And each in some way is impacting upon the workplace.<br />

Past pivotal events which have significantly impacted the workplace and brought it into its new (albeit<br />

ever changing) landscape have been identified as follows:<br />

• <strong>The</strong> Advent of Communications Technology; this has enabled increased flexibility in the<br />

workplace as the move towards ubiquitous connectivity occurs.<br />

• <strong>Inc</strong>reased Use of Automation; there is a reliance on hand-held devices to minimise paperwork<br />

and boost the accuracy of data collection. Also, in terms of facilities management, greater focus is<br />

placed on integrating facilities and building control systems.<br />

• <strong>The</strong> Blackberry Device; the emergence of this device has enabled 24/7 access to people, allowing<br />

workers to choose their own work-styles.<br />

• Cost Reductions; their inclusion in new workplace concepts has encouraged employers to<br />

accommodate employees in creative and autonomous environments.<br />

• Real Time Data; while improving communication within the core business and it is supporting<br />

networks and services, this supports strategic decision making by improving reporting and<br />

monitoring system capabilities of different types of facilities.<br />

• Conflict, Terrorism and the Use of Weapons of Mass Destruction; these have led to security<br />

issues and preparation for extreme events by facilities and workplaces all over the world.<br />

• Flexible Working; growing acceptance of this concept is evident through the increased reliance on<br />

supplemental staff to help in-house staff cope with unplanned work. It also helps control labour<br />

costs and enables short-term staffing and in turn, helps managers focus on core competencies.<br />

• Over-Regulation; the Sarbanes Oxley reporting tool, for example, has been adopted out of<br />

necessity in the United States. However, financial services in the United Kingdom do not have an<br />

equivalent to this legislation, thus creating different business pressures in different regions.<br />

• Lack of Strategic Long-Term Thinking; this has led to the ‘silo effect’ where individual practices<br />

encourage individual service habits and culture, and generally leads to the dilemma, what is<br />

acceptable in one organisation may be unacceptable and irrelevant to clients in the facilities<br />

world.<br />

• Experience; reliance on this concept in the workplace has resulted in producing more predictable<br />

and reliable training for employees as well as developing employee expertise<br />

Changing patterns of work are supported and enabled by behavioural and structural changes in the<br />

organisation. In contrast to the adage “one size fits all”, three types of workplace have emerged to<br />

accommodate these changes in a productive manner. Each of them supports both the personal and<br />

professional demands of the workforce.<br />

• Traditional: generally this type of organisation has a small number of people at the top of the<br />

chain of command, sharing the majority of power, while the rest of the workforce is below them in<br />

organisational status and power. Typically, it is quite bureaucratic and hierarchical, and many<br />

firms still exist in this form today.<br />

• Team-based: this is a popular variation of the traditional workplace, but flatter and more<br />

organised. It is a type of structure that allows the organisation to become more creative. This, in<br />

turn, makes it more competitive and boosts employee morale.<br />

• Agile: this type of organisation is a popular new phenomenon that encourages adaptation to new<br />

changes in the workforce, workplace and the organisation itself. It is comparable to a spider’s<br />

web, because it is flexible and can usually adjust in any direction. People are the main focus and<br />

at the heart of such organisations.<br />

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Opportunities<br />

Some changing work and workplace concepts are beginning to offer new opportunities for, as well as<br />

threats to, the facilities management sector. Possibilities that the world of Facilities Management (FM)<br />

and workplace design should consider have been identified as follows:<br />

• Create an office as an interpersonal meeting space;<br />

• Adopt the ‘can do’ approach;<br />

• <strong>Inc</strong>orporate individual attitudes at a strategic decision-making level;<br />

• Identify the ability of flexible working to encourage positive lifestyle changes;<br />

• Understand the role of women in the workplace as a way of improving workplace efficiency;<br />

• Adopt the multi-sensorial approach, particularly smell, to improve conditions in workplaces;<br />

• Focus on labour mobility to recruit and retain the necessary key people;<br />

• Place social and fiscal pressure on organisations to reduce business travel;<br />

Threats<br />

• <strong>Inc</strong>orporate Corporate Social Responsibility (CSR) into an organisation as a catalyst for<br />

innovation and investment;<br />

• Facilitate the convergence of Information and Communication Technologies (ICT) to further<br />

expand the flexibility of workplaces;<br />

• Integrate design issues into change management;<br />

• Ensure continued growth in services;<br />

• ‘Trade through space’ to increase cash flow by enabling other smaller companies to use excess<br />

space;<br />

• Cultivate knowledge in a creative working environment which enables organisations to adapt to<br />

the expanding knowledge economy,<br />

• Appreciate diversity in the workplace because economies rely on international emigrants.<br />

Threats, conversely, that will hinder the Facilities Management and workplace design industries have<br />

been discovered to be:<br />

• Business change occurring at an astounding rate, leaving the workplace behind;<br />

• Mobile working causing the industry to ask the question, Is the traditional workplace necessary?;<br />

• Corporate attitudes leading to a lack of flexibility and creativity;<br />

• Financial restrictions encouraging the attitude ‘can’t afford it and there are better things to do with<br />

it’, putting research and innovation on the back burner;<br />

• Quality of life being threatened as commuting issues such as inadequate transport infrastructure<br />

put a strain on the worker;<br />

• Global threats of conflict and terrorism;<br />

• Economic decline being set off by Chinese dominance;<br />

• Legacy and loyalty issues hindering the total replacement of existing workplaces;<br />

• <strong>The</strong> assumption that the business market core will remain in the North American and the<br />

European catchment areas;<br />

• Continued antiquated thinking concerning flexible working, rather than evolving thinking about the<br />

axiom that work is what you ‘do’ and not where you ‘go’;<br />

• Total standardisation of workplace solutions;<br />

• <strong>Inc</strong>reased taxes on scarce resources;<br />

• Lack of information, wisdom and judgements in a knowledge society being damaging to the<br />

workplace;<br />

• Complex heterogeneous workplace environments that are crowded with a multitude of different<br />

desktop and portable PCs, mobile and wireless devices, printers, networks and applications, with<br />

little or no technical support from organisations which has proven difficult and costly for IT<br />

organisations to manage and support; fads and fashion threatening long-term strategic decisionmaking<br />

within organisations.<br />

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<strong>The</strong> Futures<br />

Methodology &<br />

Process<br />

<strong>The</strong>re is a growing realisation, in all areas of life, that the future is not fixed. <strong>The</strong> notion that the future<br />

can be ‘shaped’ or ‘created’ has gained currency over the past decade, and is increasingly the basis<br />

upon which organisations of all kinds make their plans.<br />

<strong>The</strong> concept of ‘futures’ is encapsulated in the idea of trying to make things happen, rather than<br />

guessing what might happen. Using this concept, and the business of discovery, organisations and<br />

individuals have to embrace uncertainty, and continually review a wide range of policy options.<br />

Though there are many variations of any theme, the stages in Figure 1 are typical of a prospective<br />

through scenarios process. <strong>The</strong> ‘Prospective Through Scenarios’ process is becoming more popularly<br />

applied across Europe in a variety of strategic settings. It requires organisations to perceive creatively<br />

what is going on in their environments. It requires them to think through, in an imaginative way, what<br />

their environment means for them, and then demonstrate the readiness to act decisively upon this<br />

new knowledge. Most of all, however, it demands them to determine what they wish their preferred<br />

future to be.<br />

Figure 1 ‘Prospective Through Scenarios’<br />

(Source: Ratcliffe and Sirr (2003) <strong>The</strong> Futures Academy)<br />

<strong>The</strong> full methodology can be found in<br />

Appendix C<br />

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<strong>The</strong> <strong>Workplace</strong><br />

Prospective<br />

WARNING: This is not an authoritative<br />

document. It represents the findings<br />

largely from the participants of the<br />

Futures Workshop. <strong>The</strong> information is<br />

believed to be correct, but cannot be<br />

guaranteed, and the opinions<br />

expressed constitute our judgement as<br />

of this date and are subject to change.<br />

Jazz: a hectic world<br />

Wise Counsels: a sustainable<br />

world<br />

Dantesque: a controlling world<br />

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<strong>The</strong> Strategic<br />

Question<br />

Resulting from the workshop, and supported by a number of strategic interviews, the strategic<br />

question was set as:<br />

“How can the Facilities Management community prepare for the future of the workplace considering<br />

the following driving forces:<br />

1. Knowledge capital<br />

2. <strong>Workplace</strong> culture<br />

3. Technology and the environment<br />

4. Quality of life<br />

5. Large scale governance<br />

Drivers, Issues and Trends<br />

Although there exists an endless list of important drivers of change impacting on the global workplace,<br />

it is essential to identify what the most influential of these might be, and how they might interact to<br />

propel change in different ways. In doing this, an understanding is required of the various forces that<br />

are driving change. <strong>The</strong>se are characterised under the ‘six-sector approach’ (DEGEST) and include:<br />

1. Demography<br />

2. Economy<br />

3. Governance<br />

4. Environment<br />

5. Society<br />

6. Technology<br />

Sequentially, these forces will then propel the storylines described in a particular plot for a scenario.<br />

Once these driving forces of change have been identified, a number of issues and trends are<br />

considered using different spatial levels: META, MACRO, and MICRO. <strong>The</strong>y will impact considerably<br />

on the workplace environment and will affect the strategic question in some shape or form. With<br />

regard to the META and MACRO trends, it is readily recognised that there is interconnectivity<br />

between sectors and between levels in a complex world where “everything affects everything else”.<br />

Six Supertrends<br />

1. Technological Progress.<br />

2. Economic Growth.<br />

3. Improving Health.<br />

4. <strong>Inc</strong>reasing Mobility.<br />

5. Environmental Decline.<br />

6. Loss of Traditional Culture.<br />

Source: Edward Cornish. (2004). Futuring. World Future Society.<br />

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SOCIETAL Drivers, Issues and Trends<br />

Socionomics is a non-scientific theory that identifies and attempts to explain patterns in collective behaviour and the<br />

forces that drive them. <strong>The</strong> theory’s key hypothesis is that social actions and events do not cause changes in social<br />

mood, but rather, changes in social mood produce trend changes in social action [Wikipedia].<br />

META & MACRO Drivers, Issues and Trends:<br />

World order has been changing and some long held societal and personal values are shifting,<br />

resulting in considerable transformations in society, particularly affecting how the world deals with<br />

people and groups compared to past events. <strong>The</strong> nine most compelling META and MACRO<br />

societal driving forces of change have been identified concerning perceptions, beliefs, values and<br />

attitudes<br />

MICRO Drivers, Issues and Trends<br />

<strong>The</strong> workplace of today is culturally very different<br />

from the workplace of yesteryear, and will<br />

undoubtedly change again in the future. <strong>The</strong><br />

workplace is now confronted with more pressing<br />

social changes, and ten of the most consequential<br />

societal MICRO issues and trends have been<br />

identified within the workplace and are<br />

summarised below:<br />

META<br />

• Emerging communities and organisations<br />

are becoming boundary less, reflecting that<br />

cultural collaboration is becoming more<br />

interactive and diverse.<br />

• Emerging new technologically motivated<br />

generations: the IPOD generation.<br />

• Nationalism is on the wane as there is an<br />

increasing number of people who are<br />

becoming international immigrant and,<br />

thus, finds it difficult to identify with one<br />

single nation.<br />

• Rising power of international brands and<br />

celebrity worship are sustaining the craze<br />

of consumerism.<br />

• Escalating income and value disparities<br />

between countries, within countries and<br />

between corporations is increasingly<br />

evident.<br />

• Multi-cultural societies have evolved<br />

tenfold in the advent of globalisation,<br />

leading to increased diversity in the<br />

workforce and changing values in<br />

communities and corporations.<br />

• <strong>The</strong> younger population (in developed<br />

western world) is educated for longer<br />

because increasing standards in education<br />

and literacy necessitates this.<br />

• On the one hand, there is a drive towards<br />

multinationalism, as the isolationalist<br />

principles of nationalism command less<br />

importance than global economic<br />

prosperity; on the other hand there is a<br />

drive for protectionism.<br />

• <strong>Inc</strong>reasing awareness of the need for<br />

balance between quality of life and leisure,<br />

and work.<br />

• <strong>Inc</strong>reasing tensions between the rise of<br />

devotional and faith-based views and the<br />

spread of more secular positions will create<br />

major societal faultlines.<br />

19<br />

MACRO<br />

• <strong>Inc</strong>reasing awareness of environmental<br />

costs of commuting, demonstrating the<br />

value change towards the natural<br />

environment.<br />

• Developing third generation multi-ethnic<br />

societies are now fast becoming a source of<br />

talent in the West.<br />

• Operating serviced offices in the US and<br />

UK is becoming increasingly popular.<br />

• Widespread violence is tearing families and<br />

communities apart.<br />

• America’s conservatism and culture of the<br />

individual does not encourage open-plan<br />

work styles. Conversely the Western<br />

European office, typically in the UK, reflects<br />

a social democratic culture where sharing<br />

space is increasingly popular.<br />

• Digital Jockies describe the way in which<br />

‘older’ and ‘younger’ people work - younger<br />

workers are perceived as being highly IT<br />

literate while older workers are perceived as<br />

working with knowledge and relationships -<br />

which demonstrates the issue that there are<br />

very different expectations of workplaces<br />

and work-styles.<br />

• <strong>Inc</strong>reasing presence of multiple worker<br />

generations in the workplace.<br />

• Growing distributed workplace strategies<br />

are promoting urban regeneration and<br />

urban development as organisations move<br />

outside the physical realm of their building<br />

into large organisational networks across<br />

cities and integrate a wider range of urban<br />

work settings which promotes this type pf<br />

development.<br />

• Limitations of travel can impact on society<br />

and the workforce due to the scarcity of<br />

resources.<br />

• Continued emergence of gated<br />

communities demonstrates the desire to<br />

lock out the outside world. However, it is not<br />

just for the rich, it cuts across all income<br />

groups.<br />

• <strong>The</strong> phrase ‘think globally, act locally’ is<br />

becoming increasingly popular within<br />

organisations.<br />

• Changing nature of work: more leisure time<br />

for the individual; the house has become<br />

more than a home; the increasing demand for<br />

flexibility.<br />

• Age, the increasing numbers of immigrants<br />

and being globally mobile are emerging<br />

factors affecting the changing workforce and<br />

may impact on the availability of key staff.<br />

• <strong>The</strong> inherent need to possess territory is<br />

further evident.<br />

• <strong>Inc</strong>reasing need for language skills in the<br />

global workforce.<br />

• <strong>The</strong>re is a danger of repressing creativity by<br />

nurturing individualism in the workplace.<br />

• <strong>The</strong> current skill/intellect set available is<br />

skewed to more traditional roles and<br />

responsibilities.<br />

• <strong>Inc</strong>reasing expectations in terms of status,<br />

location and reward are becoming the<br />

everyday norm in seeking work.<br />

• <strong>The</strong>re is a rise in the use of cross-functional,<br />

multi-disciplinary teams with globally and<br />

ethnically diverse memberships, proving that<br />

organisational culture is proactively changing.<br />

• Changing dynamics of work is strengthening<br />

the notion that there is no job for life.<br />

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DEMOGRAPHIC Drivers, Issues and Trends<br />

“Mighty are numbers, joined with art resistless”<br />

[Euripides].<br />

META & MACRO Drivers, Issues and Trends:<br />

<strong>The</strong> global population is increasing, but at a decreasing rate, and it is also diverging and getting<br />

older. <strong>The</strong> question about population growth is not numbers, but where the numbers reside and<br />

how they use available resources: notably in the developed countries where population growth is<br />

much slower, adequate resources exist compared to rapid growth in developing countries and food<br />

and other resources are in short supply. Overwhelming growth is occurring in the developing<br />

countries and this will change how things are looked at and accomplished in the world community.<br />

<strong>The</strong> nine most compelling META and MACRO demographic drivers of change have been identified<br />

as follows:<br />

MICRO Drivers, Issues and Trends<br />

Demographic characteristics help shape the<br />

demand for certain occupations that will provide<br />

the population with products and services. It also<br />

shapes the composition, age and ethnic<br />

distribution of the labour workforce. Ten of the<br />

most consequential demographic MICRO issues<br />

and trends have been identified and are listed as<br />

follows:<br />

META<br />

• Levelling of world population in the mid<br />

21st century is projected to be about 10-12<br />

billion people.<br />

• Mass migration is redistributing the world’s<br />

population.<br />

• Improved living conditions and advances in<br />

healthcare technology are reducing<br />

instances of infant mortality.<br />

• <strong>The</strong> 60+ age group will reach one billion,<br />

and 75 percent of this group will live in the<br />

developed world.<br />

• Developed countries of the world have<br />

witnessed an unprecedented increase in<br />

population, 90 percent of which have been<br />

in urban areas.<br />

• Sub-Saharan Africa and Western Asia are<br />

the fastest growing populated regions in the<br />

world, demonstrating a considerable shift in<br />

population centres in areas historically<br />

considered troubled from a perspective of<br />

natural resources and political stability.<br />

• <strong>The</strong>re is a global nomadicism, where<br />

massive groups of skilled and unskilled<br />

labour are shifting population centres for<br />

employment opportunities.<br />

• Every society relies upon a workforce large<br />

enough to support those dependent on it –<br />

the dependency ratio. However, in some<br />

developing countries like Italy and Finland,<br />

low birth rates and early retirement have<br />

exacerbated a declining workforce placing<br />

a strain on social service systems.<br />

• <strong>The</strong> phenomenon of longevity is evident to<br />

some extent in all developing countries,<br />

where it is not only prevalent but regarded<br />

as an entitlement.<br />

• Mobility of labour and migration are solving<br />

the labour shortages. A pattern could<br />

emerge, however, where a technocratic<br />

elite, who are highly paid, dominate in the<br />

developed world while the rest of society<br />

are employed in low-value-added service<br />

work.<br />

20<br />

MACRO<br />

• Without radical reforms, the sustainability of<br />

the pay-as-you-go pension system and<br />

high-quality healthcare will become<br />

unsustainable within a few decades when<br />

the numbers of workers comes to equal the<br />

number of pensioners.<br />

• <strong>The</strong> new age patterns will substantially<br />

change the structure of demand in<br />

consumption segments, financial market<br />

yields will probably fall and growth potential<br />

will decrease.<br />

• <strong>The</strong> growth in demand for healthcare is<br />

continuing to rise with the aging workforce.<br />

• In under developed and economically weak<br />

areas, the mass exodus of the younger<br />

population to city regions is leading<br />

governments to acknowledge these<br />

developments and factor them into the<br />

provision and financing of public<br />

infrastructures and housing<br />

• Demographic challenges are producing<br />

significant economic pressures such as<br />

income equality. Demographic shifts<br />

associated with immigration pose major<br />

challenges for social inclusion.<br />

• <strong>The</strong> number of asylum seekers in the<br />

world’s 38 developed countries in 2004 fell<br />

to its lowest level in 16 years. However, for<br />

several of the EU’s new member states the<br />

figures rose sharply.<br />

• Birth rates depend on the number of<br />

working females, rates of female entrants<br />

to third level institution, family friendly<br />

workplaces and marriage rates.<br />

• Death rates and life expectancy depend on<br />

lifestyles, and the question arises, how<br />

does one get the balance between work<br />

and life correct?<br />

• <strong>The</strong> explosive growth of cities in the<br />

developing world will test the capacity of<br />

governments to stimulate the level of<br />

investment necessary to generate jobs and<br />

supply services, - and maintain law and<br />

order under inevitable natural disaster<br />

events.<br />

MICRO<br />

• An ageing and diverse workforce.<br />

• <strong>Inc</strong>reasing mobility of labour.<br />

• More people will relocate to unpopulated<br />

areas because they will be supported by an<br />

innovative technological infrastructure.<br />

• Different spending patterns of an ageing<br />

population result in differing demands for<br />

labour.<br />

• Ageing populations lead to shifts in<br />

government spending patterns. For example,<br />

different allocation of investment to health and<br />

education.<br />

• Ageing of the labour force brings about an<br />

increase in occupational retirements, which<br />

affects the demand structure for workers.<br />

• As the workforce ages, more employees at all<br />

levels will have physical disabilities and<br />

increased litigation could result from this if<br />

employees remain uneducated and<br />

uninformed about disabilities in the workplace.<br />

• <strong>The</strong> talent war now rages on.<br />

• Technology will help to solve labour shortages<br />

that currently plague many organisations.<br />

Advancing technology creates more jobs in<br />

unforeseen sectors, such as web designers<br />

and games programmers. However, the<br />

human downside will be that although it will<br />

help to solve labour shortages, technology will<br />

ultimately result in job destruction with for<br />

example, increased automation.<br />

• <strong>The</strong> workplace is becoming increasingly<br />

bipolar in terms of age, where skill-short<br />

companies are compelled to open up more<br />

opportunities to older workers and not just the<br />

attractive younger generation. Employers will<br />

have the challenge of getting the two groups<br />

to work together harmoniously in order to<br />

sustain growth.<br />

© 2007 Copyright <strong>Johnson</strong> <strong>Controls</strong> Facilities Innovation Programme<br />

No information can be reproduced without the authorisation of <strong>Johnson</strong> <strong>Controls</strong>


ECONOMIC Drivers, Issues and Trends<br />

“Economists have predicted nine of the past five recessions”.<br />

META & MACRO Drivers, Issues and Trends:<br />

World economies are interlinked through the dominating system familiarly known as globalisation.<br />

A major shift is occurring within the economic realm, because generally the laws of supply and<br />

demand which are scarcity oriented have prevailed. But, now with technological developments<br />

reigning supreme, there is a shift to all things plentiful, such as Internet information access, ICT<br />

communications or some form of underground economy. <strong>The</strong> ten most compelling META and<br />

MACRO demographic drivers of change have been identified as follows:<br />

META<br />

MACRO<br />

MICRO Drivers, Issues and Trends<br />

This impacts on the world of work through<br />

increased job flexibility, skills obsolescence and<br />

unemployment. Eleven of the most compelling<br />

META and MACRO economic driving forces of<br />

change have been summarised as follows:<br />

MICRO<br />

• Growing disparities between countries and<br />

corporations.<br />

• Rising social expenditures over the next<br />

few decades are apparent as the baby<br />

boomer generation hits retirement age.<br />

• <strong>Inc</strong>reasing taxation on workers to maintain<br />

the current level of social support and<br />

health-care services.<br />

• Investing now in climate change prevention<br />

will decrease the likelihood of shorttermism,<br />

as stated in the Stern Report.<br />

• Most decisions about energy use were<br />

based solely on cost and availability. Now,<br />

with carbon emissions from fossil fuels<br />

contributing to global climate change,<br />

environmental concerns are becoming<br />

important externalites.<br />

• <strong>The</strong> world economy is now moving from the<br />

information age to the conceptual age. In<br />

the advent of over-supply, outsourcing to<br />

Asia and automation, businesses must now<br />

concentrate on creative and cognitive<br />

assets such as design, story-telling, team<br />

work, empathy, play and meaning.<br />

• Emerging markets such as China, India<br />

and Brazil pose a potential threat to the<br />

dominating Western economies as their<br />

influence increases across the economic<br />

and political global arena.<br />

• Booming businesses are those that have<br />

mastered the art of getting information to<br />

and from their customers.<br />

• Emergence of the new ‘uber-knowledge<br />

workers’ that are capable of working<br />

anywhere and demand high quality<br />

environments.<br />

• Globalisation and the technological,<br />

political and marketplace forces behind it<br />

have wiped away borders and spurred<br />

competition while creating greater<br />

economic interdependence.<br />

• Depending on the region, country or<br />

corporation, localisation is becoming<br />

increasingly complex, driven mainly by cost<br />

issues.<br />

• Expanding financial and labour markets are<br />

creating greater competition, more efficient<br />

markets, and lower prices.<br />

• <strong>The</strong> manufacturing workforce in the<br />

developed world are watching their jobs<br />

and factories leave for other countries as<br />

outsourcing and relocation continues to<br />

flow to low labour cost countries.<br />

• Educational attainment of workers is on the<br />

increase.<br />

• Rising levels of good health and longevity<br />

can provide tremendous potentialities for a<br />

country’s wealth. But one issue to be<br />

untangled is the need for structural policy<br />

changes to be made to maximise the<br />

opportunities for labour utilisation and<br />

productivity.<br />

• Growing strength and reach of the<br />

microfinance sector is continuous as it<br />

improves extremely impoverished areas<br />

and changes people’s lives for the better.<br />

• <strong>The</strong> West has a vested interest in retaining<br />

the Chinese political system because it<br />

cannot afford for China to collapse now as<br />

so much manufacturing is done in China.<br />

• Emerging dilution of corporate coherence,<br />

demonstrated through the increase in<br />

contract and freelance staffing.<br />

• Talent has replaced land, capital and raw<br />

materials as the primary source of<br />

competitive advantage.<br />

• Failure to invest in adequate infrastructure<br />

will threaten future economic growth<br />

potential.<br />

• <strong>The</strong> workplace is experiencing a dynamic<br />

transformation from a manufacturing<br />

dimension to a knowledge economy where<br />

technology and the creation of services is<br />

dominant. Ten of the most compelling<br />

economic MICRO trends have been identified<br />

as follows:<br />

• <strong>Inc</strong>reasing mergers and acquisitions among<br />

corporations.<br />

• Emerging highly skilled and talented<br />

workforces.<br />

• Facilities Management is seen as a cost and<br />

not as an investment.<br />

• Doing more with less – reduced capital outlay,<br />

less time and fewer people are improving<br />

organisations planning and scheduling.<br />

• Indices such as the Dow Jones Sustainability<br />

Index may influence the attitude of<br />

shareholders.<br />

• Cost of living is generally on the increase and<br />

people need to work more to earn more.<br />

• Lifecycle costs are emerging to be the central<br />

issue in the design and decision-making<br />

process.<br />

• <strong>Inc</strong>reasing requirement for greater<br />

accountability in financial reporting due to an<br />

increase of corporate fraud cases.<br />

• Source of labour is becoming more diverse<br />

and global, and as a result, more highly<br />

competitive.<br />

• Dominance of global corporations is changing<br />

the dynamics of the workplace.<br />

21<br />

© 2007 Copyright <strong>Johnson</strong> <strong>Controls</strong> Facilities Innovation Programme<br />

No information can be reproduced without the authorisation of <strong>Johnson</strong> <strong>Controls</strong>


GOVERNANCE Drivers, Issues and Trends<br />

“As wealth is power, so all power will infallibly draw wealth to itself”<br />

[Edward Burke, speech in the British House of Commons, 1780].<br />

META & MACRO Drivers, Issues and Trends:<br />

Global governance is changing with increased complexity and uncertainty. National governments<br />

are riding the wave of change that will result in reduced authority across people’s actions, social<br />

problems, economic power and corporate power. It is a world of global governance but not with a<br />

global government. Nine of the most compelling META and MACRO trends have been identified<br />

as follows:<br />

META<br />

MACRO<br />

MICRO Drivers, Issues and Trends<br />

Ten of the most consequential governance<br />

MICRO issues and trends have been identified<br />

within the workplace and are summarised below:<br />

MICRO<br />

• <strong>Inc</strong>reasing dichotomy of government<br />

bureaucracy and creativity. It is the new<br />

dilemma of modern leadership; countries<br />

that are heavily governed can lose out in<br />

the global race for innovation, research and<br />

development. Conversely, a global shift in<br />

the implementation of regulation in different<br />

regions can win the battle to allow for<br />

further creativity.<br />

• Emerging large economies like China and<br />

India will undoubtedly alter the balance of<br />

global governance.<br />

• Rising tension between increasing<br />

governance and civil liberties.<br />

• National languages are being mixed with<br />

supranational languages.<br />

• <strong>The</strong>re will be a constant progression<br />

towards democracy and away from<br />

authoritarianism, but the threat of<br />

theocracies through widespread<br />

fundamentalist thinking will be everpresent.<br />

• Constant threat of war and social upheaval<br />

due to power/resource struggles.<br />

• Emerging tension of political systems<br />

demonstrated in the apparent efficiency of<br />

the Chinese political system compared to<br />

Western style democracy.<br />

• <strong>The</strong> concept of sustainable development<br />

will permeate policy-making at all levels,<br />

and peace, non-violence and human<br />

security will increasingly be viewed as<br />

‘public goods’.<br />

• Cities are becoming the focal point for<br />

economic activity, governance and social<br />

organisation.<br />

• Growing sophistication of crime is making it<br />

difficult to combat. However, new<br />

technological advances are both helping to<br />

tackle it and generate it.<br />

• Cost of governance has increased,<br />

particularly with the introduction of<br />

Sarbanes Oxley. In corporate America<br />

alone, this is likely to result in a backlash of<br />

governance where corporations must pay<br />

billions of dollars in auditing and legal costs<br />

to ensure the accuracy of their financial<br />

statements.<br />

• Legislative changes in industrial sectors,<br />

and the difficulties in regulating information<br />

flows within and between states, impact on<br />

the operations of facilities.<br />

• Corporate Social Responsibility is diffusing<br />

through all levels of policy making.<br />

• Improvements to the education system<br />

need to be made to produce managers and<br />

employees that can function effectively in<br />

the new workplace.<br />

• <strong>The</strong> need for attractive governance<br />

structure for younger generations –<br />

SEMCO Brazilian FM organisation is built<br />

on complexity theory: hearts and minds<br />

rather than regulation and placing<br />

employee freedom and satisfaction ahead<br />

of corporate goals.<br />

• Greater transparency of costs and liabilities<br />

for shareholders.<br />

• Different intergenerational agendas (‘grey’,<br />

youth, workers)<br />

• <strong>Inc</strong>reasing need for operational<br />

understanding of fixed assets risks.<br />

• Will national and regional legislation<br />

support or challenge the workplace?<br />

• <strong>Inc</strong>reasing ‘incentives’ of insurance<br />

companies.<br />

• Lack of communication from the strategic<br />

level to the operations level.<br />

• Openness, disclosure and accountability are<br />

required now in corporate governance circles<br />

due to several corporate scandals.<br />

• <strong>Inc</strong>reasing focus on health and safety of home<br />

and mobile workers.<br />

• <strong>Workplace</strong> needs to inspire more creativity.<br />

• User involvement in management decisions<br />

impacts value of workplace to business.<br />

• <strong>Workplace</strong> democracy is on the increase,<br />

where managers are democratically elected<br />

by workers, and all decisions are subject to<br />

democratic review, debate and vote.<br />

• Confusion as to FM accountability. Who is<br />

responsible for different areas and projects<br />

within the organisation? <strong>The</strong> real estate<br />

manager or facilities manager?<br />

• <strong>Inc</strong>reasing need for proper local leadership.<br />

• Communication and dialogue needs to be a<br />

two-way system, top-down and bottom-up in<br />

the workplace.<br />

• <strong>The</strong> requirement for flexibility to meet<br />

compliance requirements.<br />

22<br />

© 2007 Copyright <strong>Johnson</strong> <strong>Controls</strong> Facilities Innovation Programme<br />

No information can be reproduced without the authorisation of <strong>Johnson</strong> <strong>Controls</strong>


ENVIRONMENTAL Drivers, Issues and Trends<br />

“In Nature’s infinite book of secrecy, A little I can read”<br />

William Shakespeare, Antony and Cleopatra].<br />

META & MACRO Drivers, Issues and Trends:<br />

<strong>The</strong> concept of sustainable development is gaining momentum with growing enlightenment on the<br />

matter. However, the inclination to underestimate the nature of environmental problems and defer<br />

timely action still remains constant. <strong>The</strong> notion that modern environmentalism is no longer capable<br />

of dealing with the world’s most serious ecological crisis is on the rise as global warming continues<br />

unabatedly. Ten of the most compelling META and MACRO driving forces of change have been<br />

identified as follows:<br />

META<br />

MACRO<br />

MICRO Drivers, Issues and Trends<br />

<strong>The</strong> built environment has a profound effect on<br />

the natural environment and for facilities to<br />

support the workplace and create long-term value,<br />

organisations must understand that human and<br />

environmental issues are considered essential<br />

components of business processes rather than<br />

the consequences of those processes. Ten of the<br />

most consequential environmental MICRO issues<br />

and trends have been identified within the<br />

workplace and are summarised below:<br />

MICRO<br />

• It has now become apparent that, in no<br />

uncertain terms, the world’s atmospheric<br />

temperatures will rise between margins of<br />

one to five degrees Celsius.<br />

• 47% of the global footprint comes from<br />

fossil fuels, demonstrating continued<br />

dependency growth.<br />

• <strong>Inc</strong>reasing urbanisation in the developing<br />

world as 180,000 people are added to the<br />

urban population per day, and as sprawl<br />

continues to consume arable land and<br />

force consumption of non-renewable<br />

resources.<br />

• More than half of humanity will be living<br />

with water shortages, depleted fisheries<br />

and polluted coastlines within 50 years<br />

because of a worldwide water crisis.<br />

• Effective waste management strategies will<br />

dominate corporate agendas with<br />

increasing recycling targets and<br />

programmes.<br />

• <strong>Inc</strong>reasing demand for clean potable<br />

drinking water.<br />

• Availability of food supplies continues to be<br />

distributed unevenly throughout the world.<br />

• <strong>Inc</strong>reasing transport challenges within the<br />

urban environment.<br />

• Global growth of car ownership.<br />

• <strong>Inc</strong>reased global regulatory and public<br />

consensus pressures to reduce CO2<br />

emissions.<br />

• <strong>Inc</strong>reasing influence of sustainability on the<br />

real estate strategy in terms of the working<br />

environment, specifically commuting or<br />

transport strategies.<br />

• <strong>Inc</strong>reasing shareholder expectation on the<br />

‘greening’ of corporate portfolios.<br />

• Growth of ecological architecture.<br />

• <strong>Inc</strong>reasing threat of pandemics.<br />

• <strong>Inc</strong>reasing international reach of the<br />

‘polluter pays’ principle.<br />

• Fossil fuel scarcity will have a detrimental<br />

effect on the cost of travel.<br />

• Unnecessary number of active landfill sites<br />

with the application of a landfill tax in the<br />

UK and across Europe.<br />

• Nations have become ‘throw away’<br />

societies thereby increasing environmental<br />

regulation and legislation.<br />

• Greater need for research and<br />

development into alternative energy<br />

sources.<br />

• Developing economies are benchmarking<br />

the West’s environmental models of<br />

regulation and measurements, which will<br />

either improve or impair their carbon<br />

footprint.<br />

• <strong>Inc</strong>reasing pressure on corporations to reduce<br />

travel and deal with ecological impact of<br />

business travel.<br />

• Improving life-cycle management of buildings.<br />

• Growth of Corporate Social Responsibility in<br />

corporate agendas.<br />

• <strong>Inc</strong>reasing pressure to reduce inputs and<br />

outputs to reduce energy and CO2 emissions<br />

in the design and construction of real estate.<br />

• Growing need for change in behaviour<br />

regarding travel and work patterns.<br />

• Lack of models in the area of remote working<br />

to determine environmental trade - offs.<br />

• Sustainable Zeitgeist is emerging as a cohort<br />

of people that spans one or two generations,<br />

despite their diverse age and socio-economic<br />

background, are experiencing a certain world<br />

view, namely “save the planet for future<br />

generations”.<br />

• Growth of daily facilities risk management due<br />

to the many natural disasters frequently<br />

occurring.<br />

• Ubiquitous wireless technology which will lead<br />

to a growth in sustainable remote working, or<br />

will it?<br />

• Becoming sustainable in the workplace is<br />

quite difficult to achieve because ‘one size<br />

does not fit all’.<br />

23<br />

© 2007 Copyright <strong>Johnson</strong> <strong>Controls</strong> Facilities Innovation Programme<br />

No information can be reproduced without the authorisation of <strong>Johnson</strong> <strong>Controls</strong>


TECHNOLOGICAL Drivers, Issues and Trends<br />

“Humanity is Roadkill on the Information Superhighway”<br />

Jeans advertisement on Melrose billboard<br />

META & MACRO Drivers, Issues and Trends:<br />

Science and technology are the primary drivers behind the economies of developed and<br />

developing countries. Some technologies can be anticipated, specifically improvements or new<br />

uses of old technologies, but there is such rapid change it is hard to fully understand the<br />

implications. This includes advances in biology and biotechnology, materials such as<br />

nanotechnology and information technology. Nine of the most compelling META and MACRO<br />

drivers, issues and trends have been identified and summarised as follows:<br />

META Drivers, Issues and Trends<br />

MACRO Trends<br />

MICRO Drivers, Issues and Trends<br />

<strong>The</strong> technological advances achieved in the past<br />

few decades have brought about a revolution in<br />

the business world, affecting nearly all aspects of<br />

working life. People can reach others throughout<br />

the world in a matter a seconds, with cost<br />

increasingly being negligible. Employees no<br />

longer need to be physically with their clients and<br />

co-workers; instead they can communicate<br />

effectively at home, at a distant office, across the<br />

world, and even in their car or on an airplane. Ten<br />

of the most consequential technological MICRO<br />

issues and trends have been identified within the<br />

workplace and are summarised below:<br />

MICRO<br />

• <strong>The</strong> vision of networks is beginning to take<br />

form in fraternal organisations, business or<br />

sports teams, associations and clubs, as<br />

information technologies allow individuals<br />

to connect to other individuals.<br />

• <strong>The</strong> World Wide Web is growing<br />

exponentially and globally – options are<br />

suddenly very wide ranging and<br />

applications almost unlimited. But will it be<br />

sustainable?<br />

• <strong>Inc</strong>reasing communication between<br />

different cultures is simplified with the<br />

development of a universal translation, the<br />

internet, that enables the meaning from<br />

phrases in one language to be expressed<br />

in another language.<br />

• <strong>Inc</strong>reased application of artificial<br />

intelligence, not just in engineering and<br />

computer science but also in philosophy,<br />

neuro-psychology, business and fiction.<br />

• Wars are propelling and driving new<br />

technologies<br />

• <strong>The</strong> USA still has a comparative advantage<br />

in the field of technologically led industries,<br />

thus leading to another round of US preeminence<br />

in the world system.<br />

• Alternative energy sources are developing<br />

to tackle the climate change issue, such as<br />

increased research and development into<br />

wave energy and the design of new nuclear<br />

reactors.<br />

• More and more money is being poured into<br />

biotechnology with the hope that miracle<br />

drugs will continue to emerge.<br />

• Growth in the power and influence of the<br />

media.<br />

• Growth of ecological engineering is trying<br />

to right the wrongs of the 20th century.<br />

• Changing corporate attitudes towards being<br />

a ‘market leader’ or ‘fast follower’.<br />

• Changing provision and access in urban<br />

and rural environments with technological<br />

advances.<br />

• Growth of global techno-crime.<br />

• <strong>Inc</strong>reasing use of management information<br />

systems in the decision making process in<br />

facilities management.<br />

• Security and data protection.<br />

• Emergence of spam wars, viruses and<br />

threats.<br />

• Growth of new and improved transport<br />

strategies using efficient ICT interchange<br />

stations, which include technological<br />

information displays.<br />

• Emergence of e-governance across the<br />

portal of the Internet.<br />

• Behaviours are of a great importance and<br />

technology is a way of supporting these<br />

behaviours. Behaviour in the workplace is<br />

often seen as how the lower levels act –<br />

e.g. turning off lights/PCs; putting waste in<br />

correct bins for recycling. However,<br />

behaviours influence decisions made by<br />

CEO’s on how a business operates in its<br />

various functions<br />

• <strong>Inc</strong>reasing obsolescence and redundancy<br />

of both buildings and people.<br />

• Technology provides most of, if not all, the<br />

features of a workplace, so why commute?<br />

• <strong>Inc</strong>reasing efficiencies of heavy plant and<br />

equipment in the workplace.<br />

• Greater interconnectivity between home, car<br />

and office.<br />

• Improved video-conferencing technology in<br />

the workplace.<br />

• Robitisation of the workforce.<br />

• <strong>Inc</strong>reasing development of ‘smart homes’ to<br />

incorporate the new concept of home working.<br />

• Continued rise of the 24-hour office.<br />

• Improving digital keyboard and display<br />

interfaces.<br />

• Better use of passive and natural technology<br />

to support the workplace.<br />

• Constant upgrading and training with every<br />

new technological development.<br />

24<br />

© 2007 Copyright <strong>Johnson</strong> <strong>Controls</strong> Facilities Innovation Programme<br />

No information can be reproduced without the authorisation of <strong>Johnson</strong> <strong>Controls</strong>


Wildcards<br />

A number of sudden or shocking events that will have a high impact upon the strategic question, and<br />

a low probability of happening, have been identified as follows.<br />

• Climate change will have an effect on the work environment, habits and mass migration as<br />

countries disappear due to climate weathering effects.<br />

• Outbreak of pandemics, such as bird flu and the HIV virus, and need for extreme event<br />

preparation.<br />

• An Act of God, such as Haley’s Comet going off track.<br />

• Stock market moves from the West to the developing countries, just like the manufacturing roots<br />

moving to Eastern Europe and Asia.<br />

• Will China dominate the world, or, conversely will they become a sustainable self-contained<br />

community and close the door to the Western world?<br />

• US implodes.<br />

• World oil peak and consequent price escalation.<br />

• Risk of virus or sabotage to the internet.<br />

• Growth of natural capitalism where the economic system internalises its externalities.<br />

• European tsunami.<br />

• Regional workforce strikes.<br />

• Terrorist attack on major European cities simultaneously using weapons of mass destruction.<br />

• Spread of devastating wildfires in parts of the US, Australia and Europe.<br />

• <strong>The</strong> collapse of the Brazilian economy which leads to the subsequent destabilisation of South<br />

America.<br />

• Neglect of environmental quality causes collapse of the tourist industry in some regions.<br />

• Climate change does not occur.<br />

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Long-Term Global<br />

Risks<br />

Using the discipline of integrated risk management the following fifteen global risks are listed in order<br />

of resulting likely loss at the next occurrence.<br />

1. Scientific experiments that change the fundamental fabric of the universe in a way not previously<br />

seen in nature.<br />

2. An asteroid or comet over 10km in diameter striking the Earth.<br />

3. Planet-wide spread of exponentially self-replicating nano-machines utilising DNA/chlorophyll<br />

(“green goo”).<br />

4. Computers/robots surpassing human powers.<br />

5. Bio-vorous fully artificial nanoreplicators (“grey goo”).<br />

6. Collapse of supermassive star causing intense pulse of x-rays, cosmic rays, and muon particles.<br />

7. Eruption of continental flood basalts leading to mass extinction of 95% of biota.<br />

8. Global warming induced release methane from permafrost or clathrates on the continental<br />

shelves.<br />

9. A new ice age caused by the natural cycle.<br />

10. A new ice age caused by abrupt climate change from reduced Atlantic thermohaline circulation,<br />

leading to a loss of 65% of current land biomass.<br />

11. Global warming not causing methane release or ice age, but still causing massive loss of biota.<br />

12. A nuclear exchange involving superpower arsenals, resulting in a nuclear winter.<br />

13. An asteroid or comet of around 600m in diameter striking the earth.<br />

14. Super-eruption, most particularly Yellowstone, producing a five to seven year super-volcano<br />

winter reducing solar and wind power.<br />

15. Avian influenza pandemic – or other infectious disease that could threaten civilisation.<br />

Source: An Indicative Costed Plan for the Mitigation of Global Risks (2006)<br />

Mark Leggett, Centre for Ethics, Law, Justice and Governance, Griffith University, Australia. [Quoted<br />

in Futures Survey, September, 2006]<br />

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Scenario logics<br />

Establishing scenario logics is crucial to the development of scenarios. Scenario logic or themes are<br />

the organising principles upon which the scenarios are structured. <strong>The</strong>y connect the present to a<br />

specific scenario end-state or outcome, for any ‘future history’ must make sense ‘today’.<br />

From the insights and expertise of facilities management specialists (gathered from staff and clients<br />

of <strong>Johnson</strong> <strong>Controls</strong>) the following logics were identified:<br />

• Political Culture: Dictatorial versus Democratic<br />

• <strong>The</strong> emerging workforce: Skilled versus Unskilled<br />

• Governance: Bureaucracy versus Creativity<br />

• Success in the workplace: Collaboration versus Competition<br />

• <strong>Workplace</strong> Identity: Independent versus Branded<br />

• Economy 1: Management economy versus Service Economy<br />

• Economy 2: High Growth versus Low Growth<br />

• Work/Life Balance: Individual versus the Corporation<br />

In this report, the scenarios logics adopted to create three possible scenarios are: Success in the<br />

workplace and Economy 2. See Figure 2.<br />

Figure 2: Scenario Logics for <strong>Workplace</strong> Futures<br />

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<strong>The</strong> Scenarios<br />

Scenario One: Jazz<br />

“Complexity managed by ‘marketising’ decision processes”<br />

<strong>The</strong> ‘global village’ of 2030 offers competitive market economies propelled by expanding<br />

globalisation, advances in business communication and rising literacy rates. Innovative incentive<br />

systems have been developed to get workers to work. A fair pricing system has been created to<br />

allocate properly the limited supply of resources and goods. Activities are increasingly traded across<br />

information highway networks. Consequently, E-business has exploded onto the scene with the<br />

development of advanced and innovative information and communication technologies (ICTs).<br />

This scenario assumes an<br />

unprecedented acceleration of<br />

economic growth, relentless pressure<br />

for short-term gains and fierce<br />

competition on a global scale, driven by<br />

rapid technological advances and<br />

further market integration. It is a world<br />

where entrepreneurship, innovation<br />

and individual responsibility are<br />

favoured. Give and take is keenly<br />

attuned to the opportunities of the<br />

moment and at the same time alert to<br />

ways of incorporating long term values<br />

into strategies for commercial success.<br />

Free market reforms have moved<br />

governments everywhere to downsize,<br />

deregulate and privatise.<br />

Companies adapted to this changing competitive world environment by becoming agile and<br />

responsive in their operations. This has had a knock on effect in the workplace. More employees now<br />

have the option of telecommunicating their work from the mobile office known as the ‘Club’. Home<br />

working offices on-line have become extensive. Knowledge workers have begun to choose where<br />

they live and work, and demand customised accommodation and facilities which is changing the<br />

dynamics of the house. International trade and investment has moved towards efficient, supportive<br />

and facilitative locations, changing the concept of facilities management. Corporations have been<br />

ebbing away from locations perceived by business as bureaucratic and synonymous with high costs.<br />

From 2007, centralised ownership of resources and services became a thing of the past because it<br />

promoted inefficiency, corruption and nepotism. As a result of this, capitalism was seen as the<br />

contending force to be reckoned with, upon which privatisation and liberalisation of key markets,<br />

including technology, energy, air transport and financial services became increasingly popular.<br />

Regulations, intelligent laws, oversight and the inherent positive properties of the market, such as<br />

transparency, made the free market work. Since then, widespread availability of information has<br />

enabled free market entry to many new players. A new model of entrepreneurship has been<br />

developed on the back of the network economy. <strong>The</strong> ‘winner takes all’ attitude dominates markets.<br />

By 2015, the exclusive focus on trade and investment leads to environmental degradation and social<br />

neglect. This can particularly be seen in the Asian region. Between 2007 and 2017, multinational<br />

corporations relocated to Asia as it became a new hub of industrial activity, driven by the availability<br />

of a rapidly increasing low wage labour force, unregulated environmental standards, negligible<br />

corporation tax rates and pliable political regimes.<br />

Following this transformation, international businesses believe they cannot operate against the<br />

greater good for long as the global civic society becomes distrusting of multinationals who let<br />

environmental and social standards drop. Businesses seize the opportunity to take strategic<br />

economic advantage and become proactive leaders in responding to social and environmental<br />

change. In doing this, some cut back on business travel and equip their workplace facilities with state<br />

of the art electronic communication devices such as video conferencing and high-definition<br />

technology, which combine voice, video, content sharing and network infrastructure technologies to<br />

promote cost-effective remote collaboration within organisations and beyond.<br />

After the market downturn of 2020, major companies re-evaluated themselves and ‘leaned out’ their<br />

entire organisation in an effort to become more efficient and more productive. <strong>The</strong>y thinned their<br />

product lines, stopped their non-essential projects, reduced waste and inefficiencies in support<br />

functions, cut costs and started expecting more from their employees. Consequently, the global<br />

market for labour started to change in an unprecedented way. Temporary labour was no longer an<br />

incidental concern but a strategic opportunity. Also, radical outsourcing meant that the global division<br />

of work helped the global company attract local knowledge and a global talent pool. Eastern Europe,<br />

Asia and South America began to offer a wealth of business opportunities, and resources with a<br />

cheap and highly skilled workforce.<br />

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<strong>The</strong> global trade union, One World, was established in 2025, because the individual became the<br />

dominating characteristic of the free market workplace as entrepreneurs and contingent workers<br />

grew in numbers. <strong>The</strong>se workers had no sense of belonging. As a result of this, the workplace<br />

became a lonely and unsatisfying place because all the interactions in the market place were purely<br />

contractual. Social interactions were extremely limited, so the global trade union tackled this issue<br />

and focused on social networking, learning, reputation-building and income smoothing. It now<br />

provides a sense of identity for these workers.<br />

Despite great improvements in the free market, the increasingly complex marketplace is<br />

characterised by its vulnerability to certain illicit activities. <strong>The</strong> huge volume of international trade has<br />

given rise to an environment that could promote the proliferation of dangerous goods, dual use items<br />

and slave labour. It seems that opportunities are only presented to those who have access to all that<br />

is offered from the global market, exacerbating the gap between rich and poor.<br />

Europe has become a strong cut-throat trading bloc. <strong>The</strong> European economies have become more<br />

competitive and flexible. European businesses compete for high-value products and services, the<br />

best and brightest minds and managerial talent. However, due to mass consumerism throughout the<br />

EU, its societies are becoming fragmented more than ever, and political unification has been placed<br />

on the back-burner.<br />

<strong>The</strong> following major trends characterise the Jazz workplace and are listed as:<br />

• Networks become the workplace, where most of the tasks are performed by independent teams,<br />

which separate once the work is completed.<br />

• <strong>The</strong> internet generation makes up the bulk of the workforce.<br />

• <strong>The</strong> workplace is an agile and adaptable work ecosystem that supports work anywhere, anytime<br />

and anyway.<br />

• <strong>The</strong> use of facilities beyond normal working hours has become popular.<br />

• <strong>The</strong> smart house has become the new office as greater interconnectivity between home, car and<br />

office becomes available.<br />

• Smart agents and documents that "take action" on behalf of the worker have been developed for<br />

reducing/eliminating low-value work.<br />

• <strong>The</strong> workplace has become more than an office. <strong>Inc</strong>reased remote working has led workers to<br />

use “Starbucks” type workspaces as well as new workspace community centres.<br />

• Organisational culture has become extremely difficult to maintain as social isolation becomes<br />

increasingly apparent through the increase in remote working.<br />

• Workspace design has adopted a public presence through the use of shared and mixed use<br />

space in the public domain.<br />

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Scenario Two: Wise Counsels<br />

“Harnessing the knowledge economy for sustainable development”<br />

It is a secure world in 2030, a shared responsibility. <strong>The</strong> greatest competition is being fought in the<br />

global arena of ideas, learning and innovation. Development has become the first line of defence for<br />

a collective eco-social, economic, security system that takes prevention seriously. Ecological<br />

modernisation has topped the agenda of most nation states, where the ‘greening’ of markets is<br />

achieved using taxes, incentives and better information to account for the environmental costs of<br />

development activity, so encouraging technological innovation to improve resource efficiency and<br />

decouple economic growth from environmental degradation and social decay.<br />

This scenario assumes global<br />

economic stability and an effort to<br />

attain environmental balance and social<br />

progress. Institutional improvements<br />

worldwide facilitate sustainable<br />

development. It is a world where<br />

collective, collaborative and<br />

consensual action is favoured.<br />

Negotiation is the name of the game<br />

and policy making and decision making<br />

has become increasingly delegated and<br />

expert. Knowledge has become the key<br />

resource. <strong>The</strong> most important property<br />

is now intellectual property, not<br />

physical property. It is the hearts and<br />

minds of people, rather than traditional<br />

labour that are essential to growth and<br />

prosperity.<br />

In the first two decades of the 21st century, there were a number of signs that environmental and<br />

social crises loomed. <strong>The</strong> exponential growth of the ‘Chindian’ economies was placing a huge burden<br />

on local environments. Global public health systems were deteriorating and were ill-equipped to<br />

protect nations from existing and emerging deadly infectious diseases such as the bird flu pandemic.<br />

Sustained poverty in a number of poorer nations was fuelling the proliferation of weapons of mass<br />

destruction, terrorism and organised crime. European and North American economies were slowing<br />

down as the baby boom generation retired placing a severe strain on social expenditure and<br />

healthcare systems.<br />

<strong>The</strong> perceived need for strong and positive actions led to a new global consensus that welcomed<br />

technological solutions, sanctions and more direct control of the market, to ensure that environmental<br />

values and social cohesion were preserved. A role for big thinkers, power players and those with<br />

deep pockets emerged to help fix this problem. In response to this, the World Summit on Corporate<br />

Accountability was held in Geneva in 2015. From the convergence of ideas and negotiations, a new<br />

international framework treaty was established for the global application of sustainable development<br />

and corporate social responsibility.<br />

This summit was attended by more heads of state than any other previous conference and led<br />

directly to the development of a number of international conventions, statements and national and<br />

international policies. <strong>The</strong> Global Reform Council (GRC) became the enforcer of these policies, while<br />

working closely with the United Nations and the World Trade Organisation. <strong>The</strong> GRC strengthened<br />

union engagement with governments, employers and the wider community by promoting sustainable<br />

development initiatives and ensuring people were able to adjust to these changes. Finally,<br />

international monetary, financial, trade, development and environmental policies were being<br />

managed by an independent body that aligned free market forces and private enterprise with social<br />

and environmental goals, by focusing on the need for deliberate social choices and meeting basic<br />

human needs.<br />

<strong>The</strong> effective creation, use and dissemination of knowledge became key to this success. <strong>The</strong><br />

success of enterprises, and of national economies, became increasingly dependent on the<br />

information infrastructure that gathers and utilises knowledge. By 2020, cities, communities and<br />

organisations, particularly in Europe and Asia, began to harness the knowledge economy and society<br />

with the development of advanced ‘univer-cities’ and ‘employee villages’. Focus was now being<br />

placed on life-long and life-wide learning; rather than unruly economic expansion.<br />

<strong>The</strong> univer-city is a remarkable development offering opportunities to live and learn in healthy welldesigned<br />

communities. It has become the showcase for innovative and creative approaches to<br />

equitable education, work, connectivity and sustainable planning. <strong>The</strong> role of the facility manager has<br />

grown within this city. Facilities have been consolidated to provide value added services to all<br />

sectors, government, health, education, recreation, justice, police, and social services. Shopping and<br />

recreational areas have been transformed to give people access to real-time data and sophisticated,<br />

accessible facilities. A smart card called the ‘community card’ has been developed for general<br />

services in the city, notably transport, access to sports facilities, the library and laundry facilities, as<br />

well as providing a wireless connection.<br />

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From these cities, workers at all levels in this 21st century knowledge society have become lifelong<br />

learners, adapting continuously to changed opportunities, work practices, business models and other<br />

forms of economic and social organisation. As a way to harness this, the corporate world is<br />

cultivating the employee village. <strong>The</strong>se villages focus on a greater mixture of land use types;<br />

integrate biodiversity plans in design; promote transit supportive development; preserve open space,<br />

facilitate a more economic arrangement of land uses; and encourage a greater sense of community.<br />

Such workplaces are healthier, more productive and allow people work to live rather than living to<br />

work.<br />

This new approach to knowledge and workplace development is driven by a primary need to think<br />

globally and act locally in the preservation and conservation of the environment, development of the<br />

economy, social cohesion, equity and quality of life.<br />

For Europe, positive dramatic changes occurred in these areas from 2010 – 2025. <strong>The</strong> public sector<br />

became a guiding light assisting individuals, firms and civic associations undertake their share of<br />

responsibility for the community and environment by incorporating the values of sustainable<br />

development, corporate social responsibility and shared responsibility into their goals and objectives.<br />

Finance for research, development and innovation increased enormously. In 2007, the EU was<br />

behind the US and Japan in research and innovation performance. EU Heads of State agreed a<br />

target to increase its R&D performance to 3% of GDP by 2012, overtaking both Japan and the US,<br />

with two-thirds of the increase coming from business. Job creation and economic growth was fuelled<br />

by the successful achievement of this goal. It created a knowledge driven competitive advantage<br />

across all sectors of the integrated economy, particularly areas such as health, education and the<br />

environment.<br />

<strong>The</strong> following ten major trends are characteristics of the Wise Counsels workplace and are listed as<br />

follows:<br />

• <strong>The</strong> workplace is increasingly supported by ICTs, meaning workers can be virtually and directly<br />

connected with community peers and have access to whatever knowledge or expertise they<br />

need to carry out their tasks.<br />

• <strong>The</strong> digital company card has emerged as a popular tool that encourages workers to go into local<br />

communities and check into office space.<br />

• <strong>Workplace</strong>s are seen as communities that are propelling the shift from hierarchical management<br />

structures towards self-organised, self managed teams that are stimulated and motivated to<br />

ensure a much higher level of work while giving them more flexibility to balance work and life,<br />

demonstrating a shift of power from the employer to the employee.<br />

• Trust and confidence amongst workers is promoted in this workplace as employees design their<br />

own workplace, set their own hours, share all information and have no secrets, this also<br />

stimulates creative thinking.<br />

• <strong>The</strong> facilities manager is becoming competent in managing complex organisations that are very<br />

like hotels, in order to provide good services to improve quality of life and work.<br />

• Knowledge workers have equitable access to services and facilities.<br />

• Governments reform labour market and social welfare systems as education and knowledge<br />

management become the key drivers in the 21 st century.<br />

• Transport issues are addressed as corporate offices become environmentally responsible by<br />

providing bike racks and shower facilities for employees.<br />

• Collaboration between suppliers, international customers, local government and NGOs has<br />

become the key to improving social and environmental conditions in the workspace and the<br />

corporate world.<br />

• Social activities improve within the workplace as common spaces become more popular and<br />

workers are encouraged to discuss various subjects and projects. <strong>The</strong>y can join in discussions<br />

about issues and opportunities for a few minutes in order to relax and get to know other workers.<br />

It builds trust and confidence among workers and stimulates creative thinking as well.<br />

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Scenario Three: Dantesque<br />

"Social reaction to over rapid change”<br />

It is a fragmented world in 2030. Economic growth remains concentrated in prosperous areas, while<br />

poverty and frustration leaves the majority of nations feeling isolated and ignored. <strong>The</strong> rising tide of<br />

wealth is occurring in a small number of nations while the growing concentration of this wealth is in<br />

relatively few hands. Consequently, the gap between high and low income countries has intensified<br />

and continues to persist and widen. It is driven by high unemployment, declining physical<br />

infrastructures and corrupt governance structures in developing areas.<br />

This scenario assumes global<br />

economic stagnation, cultural<br />

difference and insecurity. Emphasis on<br />

distrust, retrenchment and reaction<br />

leads to widespread social unrest,<br />

conflict and environmental degradation.<br />

Instability is rife across the globe as<br />

regions become increasingly disjointed<br />

from each other. Racism is on the rise<br />

and ‘each to their own’ is the attitude<br />

that dominates this world.<br />

<strong>The</strong>re is mass migration towards rich regions in an effort to find a better life as well as an increase of<br />

illegal immigrants across borders. This system of inequitable and immoral capitalism presents a tightfisted<br />

callousness towards minority groups, while the poor and illegal immigrants become scapegoats<br />

as is evident in the growing number of sweatshops across Asia, Africa and parts of South America.<br />

<strong>The</strong>re is a rise in healthcare problems, and a great concern about the potential for plagues as<br />

outbreaks of virulent mutations of malaria occur in fetid slums in 2013. <strong>The</strong>se spread across the<br />

borders of rich regions placing severe pressure on the health care systems which are not sustainable<br />

at this time of need.<br />

National security and foreign policy become matters of urgency. <strong>The</strong> spread of transnational crime<br />

increases. Terrorists use organised criminal groups to move money, men and materials around the<br />

globe. Countries and rebels continue to sell natural resources to finance wars. Governments’<br />

capacity to establish the rule of law is weakened by corruption.<br />

Following the devastation caused by terrorist attacks in 2017, which left 5,000 civilians dead, the<br />

agricultural sector and supply chain networks were left in chaos. <strong>The</strong> terrorists not only attacked the<br />

physical infrastructure of major EU and US cities but launched an attack on the food chain. Fear<br />

intensified across these regions. Governments, politicians and businesses fuelled and capitalised on<br />

this fear and anxiety. Areas such as the insurance industry, those parts of the real estate industry<br />

that source gated communities, facilities management and the CCTV industry are the commercial<br />

enterprises that begin to make a profit on fear.<br />

From this fear, and the increase of ghettoisation, the popularity of gated communities increased. By<br />

2020, a socio-economic divide has appeared between those who can and those who cannot afford to<br />

live in gated communities. Subsequently, these communities become known as exclusionary, elitist<br />

and anti-social. Access is controlled by gates, entry codes, key cards and security guards, serviced<br />

with CCTV tracking. This has caused anger and resentment in the outside world while exacerbating<br />

social exclusion. Cultural differences, inward-looking attitudes and anti-immigrant sentiment have<br />

intensified, causing racism to amplify.<br />

As a result of this, environmental issues are left on the back-burner even following the ratification of<br />

the Kyoto Protocol, and the signing of the ‘Montreal Agreement’ in 2012 relating to water<br />

conservation. <strong>The</strong>se policies are ignored as natural resources are stretched and peak oil finally<br />

occurs. By 2023, the dark predictions of climate change are much nearer to the truth than the<br />

optimistic ones.<br />

<strong>The</strong> effects of these crises begin to ‘trickle down’ into commercial and industrial sectors. Now, in the<br />

corporate world, widespread insecurity over jobs and pay continues, where employees are running<br />

scared, striving to compete in a global labour market. It is becoming a jobless future based on trends<br />

at the beginning the 21st century. Rising unemployment coupled with revolutionary technological<br />

change have fostered workplaces to down-size and re-engineer, with part-time jobs, temporary jobs<br />

and job-sharing replacing full- time work.<br />

In 2015, the Employee Free Choice Act (EFCA) was axed. It would have restored worker’s rights to<br />

join unions across rich regions, the United States and the European Union, allowing workers to<br />

bargain for higher wages. Instead, workers faced an increasing risk of being fired for playing an<br />

active role in trying to join or promote trade unions. It placed greater power in the hands of the<br />

corporate machine in America and the EU. <strong>The</strong>se megalomaniac corporations had great influence<br />

upon their respective governments to allow a crisis of such controversy to unfold like this.<br />

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Subsequently, corrupt governments and capitalist conservatism opposed legislation raising the<br />

minimum wage and increasing social security benefits, while proposing ways of cutting employment,<br />

using severe measures, in a bid to stimulate recruitment and reduce labour costs. As the global<br />

economy went into recession in 2020, these measures were met with widespread social upheaval<br />

and violent clashes across many countries.<br />

Following these clashes, people began to socially isolate themselves and move away from public life,<br />

adopting a more individual approach to daily life as a result of a lack of faith in collective<br />

organisations and actions. Consequently, the house became more of a home, so to speak. It<br />

provided a basis for home working, with new advanced technological capabilities, as well as a safe<br />

haven from the violence and fear in the outside world. It also provided an integrated system for<br />

entertainment and social interaction.<br />

Europe is unstable as its citizens exhibit a fearful view of the world beyond their borders and an<br />

anxiety about what the future holds for them. By 2030, political fragmentation is ever present as<br />

economic growth is slow and the rewards are unequally distributed. Nation states are strengthening<br />

individually as a coherent collaborative foreign and security policy falls by the wayside. ‘Thirst wars’<br />

begin in central and eastern European countries, and the survival of the fittest prevails.<br />

<strong>The</strong> following trends are characteristics of the Dantesque workplace and are listed as follows:<br />

• <strong>Workplace</strong> democracy decreases and hierarchical structures increase in workplaces across the<br />

globe as corporations maintain full control in an effort to protect themselves and increase profits.<br />

• Environmental health hazards that have been found to affect the health of the general population<br />

are being detected more and more in the workplace environment and in the working population<br />

as workplace health and safety policies are not heeded.<br />

• Weak employment policies across corporations and nations lead to high unemployment rates<br />

and social unrest which endanger stable and sustainable social development.<br />

• Undemocratic workplaces put making profits first, while putting the interest of the worker last.<br />

This has led to a lack of job security, minimum wages, average benefits, no training, and nominal<br />

bargaining power.<br />

• In 2007, there was an excess of highly trained workers, but as the baby boom generation retired,<br />

that trend was reversed by decreasing labour force growth and rising illiteracy rates.<br />

• Most knowledge workers are still working in outdated physical environments which promote<br />

hierarchy and status with space and walls.<br />

• <strong>The</strong> facilities management sector continues to struggle to support employees working from<br />

home, as a seamless support service has not been developed by facilities managers.<br />

• <strong>The</strong> internet has become affected by a number of debilitating viruses which has left employees<br />

unable to work as business continuity plans have not been designed for these attacks.<br />

• Lack of worker’s loyalty leaves corporate goals to the wayside.<br />

• Lack of environmental quality has severely devalued office buildings<br />

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<strong>The</strong> Wind Tunnel Test<br />

In testing the future performance of organisations against the scenarios described so that they can<br />

‘fly’ adaptable and robustly in any conditions that lie ahead, the following ten top characteristics have<br />

been identified in the process as vital to forming a vision of the workplace of the future [National<br />

Centre for Partnership Performance, 2006].<br />

1. Constant innovation will require agility throughout all parts of an organisation to enable<br />

employees to absorb workplace change.<br />

2. All decisions will have to be customer-centred so that everyone concerned understands the<br />

impact of their work on the end-user of the organisation’s product or service.<br />

3. Most jobs will become increasingly knowledge intensive, and the intellectual skills and<br />

information base for all jobs will change and adapt regardless of the nature of the work.<br />

4. Organisations will have to be ever more responsive to the changing needs of clients, markets<br />

and employees.<br />

5. Cross-functional ways of working, internally and externally, will require broad networking through<br />

collaboration, partnership, clustering, shared service activities and inter-agency working.<br />

6. <strong>The</strong> focus will be on structuring organisations around a high-performance ethos, with incentives<br />

and rewards at all levels, an accent on continuous improvement (kaizan), and a bias towards<br />

implementation.<br />

7. Successful organisations will value and actively seek a culture of engagement by all concerned<br />

through open, involved and participatory management systems and work practices.<br />

8. All organisations will strive to be constantly learning with encouragement of experimentation and<br />

ongoing provision of training plans, needs assessment, employee support and funding<br />

mechanisms.<br />

9. As an integral part of the organisation’s culture and management it will have to be proactively<br />

diverse, linked to a recognition of the need to ensure a high quality of working life.<br />

10. Organisations will have to be imaginative in all they do.<br />

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A <strong>Workplace</strong><br />

Prospective<br />

In an ideal world, what would the future workplace look like?<br />

Following the adage: “the future is not inevitable, we can influence it if we know what we want it to<br />

be”, a number of ideas, thoughts and characteristics of a preferred future vision for the workplace<br />

have been identified. Respondents to a survey questionnaire and participants in the Futures<br />

Workshop recognised them and they are listed as follows:<br />

• Every home and office will be equipped with video-conferencing capability;<br />

• Regional meeting places will be developed to enable social interaction;<br />

• <strong>The</strong> house will become both the home and the workplace; improving quality of life;<br />

• New and improved street-scape office designs will incorporate cafes, shops, offices, lounges and<br />

the availability of live information;<br />

• Metaphorically, the workplace will be located on a Caribbean beach as remote working becomes<br />

widely accepted;<br />

• <strong>The</strong>re will be fewer large and more distributed facilities that will have less reliance on active<br />

systems;<br />

• People will be able to choose when, where and how they want to work;<br />

• <strong>The</strong> workspace will be shaped by its users with management, facilities management and real<br />

estate;<br />

• Workspaces will be adapted to suit a wide range of threats and opportunities;<br />

• <strong>Inc</strong>reasing cultural references, further branding and information content will be placed within the<br />

workplace;<br />

• Every person will be treated equally when it comes to getting a job, advancing in their career,<br />

and being treated fairly in the workplace;<br />

• Responsibilities relating to IT or telecoms servicing will increase as the remote worker becomes<br />

increasingly popular and the traditional office becomes a thing of the past; and,<br />

• <strong>Workplace</strong>s will depend on renewable energies;<br />

However, the sort of challenges facing the facilities management industry today, that would make it<br />

difficult to achieve this workplace prospective, are most obviously:<br />

• Positioning and response of the workers to behavioural change;<br />

• Adapting to the global variation of workplace locations;<br />

• Supporting a globally fragmented client and user base with greater individuality of needs and<br />

services;<br />

• Initiating cultural change within a profession to expand the remit of the facilities management<br />

(FM) discipline in order to become community inclusive;<br />

• Promoting dialogue across corporate departments;<br />

• Aligning FM and strategic visions;<br />

• Defining the nature of facilities management for the future;<br />

• Balancing the dynamics between command and control versus individualism;<br />

• Integrating education, research and best practice into the FM sector;<br />

• <strong>Inc</strong>orporating innovation and development within service activities;<br />

• Facilities managers actively listening and entering into dialogue with users instead of blindly<br />

obeying the corporate machine;<br />

• Aligning migration patterns, the changing market and the workforce;<br />

• Imposing legislative restrictions on extensive commuting and business travel;<br />

• Expanding thinking, for example, to network environments; and,<br />

• Exploring how the extended workplace promotes and supports creativity.<br />

In order to accomplish goals and objectives of the organisation, challenges and threats must be<br />

overcome. In doing so, organisations must mobilise joint actions towards their specific prospective.<br />

Consequently, policy fields and action agendas are considered briefly here.<br />

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Next on the Agenda<br />

What are the strategic implications of a<br />

futures-based approach to a<br />

sustainable workplace?<br />

How will the right decision fit into the<br />

future workplace?<br />

What are the present actions that<br />

facilities managers must take to<br />

prepare their workplace for the<br />

uncertain future?<br />

Following the construction of the scenarios, a fundamental stage in the process is the formulation of<br />

policy field themes and the identification of action agendas. <strong>The</strong>se enable decision-makers to exploit<br />

positive opportunities and prepare for certain threats that unfold in the workplace of the future.<br />

Five policy themes emerged from the workshop that will have a positive impact on the organisation’s<br />

strategy. Subsequently, the workshop participants identified a plethora of action agendas that can be<br />

implemented within each policy field, so that the organisation can prepare for the many risks and<br />

opportunities that the facilities management industry will face in the future. Ten of the most significant<br />

were selected under each of the policy headings.<br />

1 Knowledge Capital<br />

A. In facilities management and real estate sectors, building on knowledge capital will increase<br />

the value of output and support business solutions.<br />

B. Creating a knowledge management platform will systematically encourage sharing of<br />

knowledge between the facilities management, real estate sectors and other departments of<br />

an organisation.<br />

C. Acting on the need for further education and training within the workforce will give the<br />

organisation a competitive edge.<br />

D. Investing in ‘intelligent’ buildings will save costs and boost employee productivity and<br />

creativity<br />

E. Describing and translating knowledge into a usable form will enable the construction of a<br />

relevant and reliable knowledge base.<br />

F. Linking facilities management, real estate, services and technology into one single service<br />

management model will provide the facilitation of work, not just the servicing of facilities.<br />

G. Knowledge repository… Employing a service that centrally stores facilities management<br />

data. This will deter the silo management system, because different departments will have<br />

access to the same data, thus making communication more effective.<br />

H. Creating a workplace strategy embracing mobility and flexible working will facilitate the<br />

transition to home and remote working.<br />

I. Developing protocols for new relationships with flexible employees will address loyalty and<br />

trust issues within the organisation.<br />

J. Harvesting different skill-sets from the different workforce generations will provide a broad<br />

knowledge base that will cater for the entire lifecycle of facilities management.<br />

2 <strong>Workplace</strong> Culture<br />

A. Developing a new set of skills to cope with an increasingly diverse workforce will benefit<br />

organisations and also provide them with a support network through participation at a local<br />

level in conferences and national conventions.<br />

B. Encouraging dialogue to better understand wishes and worries will promote a more engaging<br />

and responsive workforce.<br />

C. Building a strong workplace infrastructure will enable connectivity, management and support<br />

for a dispersed organisation.<br />

D. Understanding workplace cultures will encourage integration of individualism, collaboration,<br />

creativity and bureaucracy.<br />

E. <strong>Inc</strong>orporating employee well-being into business plans, strategies and activities will promote<br />

health and safety among staff and the supply chain.<br />

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F. Creating a community amongst mobile workers through social networking forums will<br />

encourage them to use their space in the office and home more efficiently.<br />

G. Developing social media and computing will decrease the feeling of isolation remote workers<br />

have in the changing workplace environment as social networking continues in a virtual<br />

capacity.<br />

H. Encouraging research into behavioural studies, such as environmental psychology, will lead<br />

to a greater understanding of workplace culture.<br />

I. Questioning what businesses and people need from the ‘traditional’ workspace environment,<br />

and addressing these needs through alternative scenarios.<br />

J. Tackling the task of motivating remote workers to achieve maximum performance output.<br />

3 Technology and the Environment<br />

A. Innovating business models in the information technology supply chain will maximise<br />

shareowner value and increase customer satisfaction.<br />

B. Making sustainable concepts and solution a priority, will place corporate social<br />

responsibilities high on the agenda of businesses and one step further in tackling the<br />

problem of the threatened ecosystem.<br />

C. Developing models of sustainable, not time consuming practices, such as the integration of<br />

email into voice messages, will aim to tackle the issue of increasing time and money spent to<br />

ensure constant accessibility to phone, email, fax and text messages.<br />

D. Fostering technology as an enabler rather than a driver will improve business management<br />

processes and create an advantage in terms of improved efficiency and reduced costs.<br />

E. <strong>Inc</strong>reasing the supply of extranet-based workers to work in collaboration with intranet-based<br />

workers will enable the efficient transfer of knowledge between partners, organisations,<br />

service providers and clients.<br />

F. Growing awareness of energy saving policies will lead to balanced distribution of energy.<br />

G. Identifying technological solutions, like ‘smart’ workspaces, that are likely to impact positively<br />

on the environment, will increase the possibility of working away from the traditional highenergy<br />

consuming office space.<br />

H. Developing a risk assessment process for the major dependence on the Internet and its<br />

services (such as on-line banking), will help to deal with issues of security and safety.<br />

I. Improving telephone and conference call quality.<br />

J. Researching and developing alternative energy sources for facilities will help prevent future<br />

devastating blackouts.<br />

4 Quality of Life<br />

A. Designing the workplace to maximise communication, collaboration, interaction and creativity<br />

to encourage a shift from hard work to ‘hard fun’, motivating and creative atmosphere, such<br />

as the Google workspace, and providing a social nucleus, as well as a job.<br />

B. Considering lifestyle services as an inherent component of the service delivery model,<br />

placing FM in the home and on the move.<br />

C. Developing a workspace solution that improves the senses of smell, light and sound within<br />

the office in order to mimic a home environment.<br />

D. Offering FM packages to freelance and contract staff to motivate performance and maximise<br />

business potential.<br />

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E. Embracing the ‘learning’ and ‘creative’ workplace by evaluating current data on new ways of<br />

working. For example, a healing environment will enhance the quality of life for employees.<br />

F. Improving services of non-office and diffused environments will lead to greater efficiency and<br />

less stressful situations for remote workers. One example would be a communal shared<br />

space in residential areas, as somewhere to maintain social interaction for remote workers.<br />

G. Facilitating changes in the workplace to allow for less travel and more leisure time will lead to<br />

reduced energy use.<br />

H. Recognising that the needs and profile of the workforce are changing and that these issues<br />

and opportunities must be addressed.<br />

I. Trusting in social networks will enhance the quality of life in the workplace and home.<br />

J. Considering the work and life balance in the context of the organisation will lead to better<br />

recruitment, retention and well-being of staff.<br />

5 Large Scale Governance<br />

A. <strong>Inc</strong>reasing transparency of information will enable further public access to corporate<br />

information.<br />

B. Clarifying the legal status of an ‘employee’ working remotely, at home or on client premises<br />

will protect staff. Although the policy of work should be what you do, not where you go, staff<br />

should be covered by insurance wherever they do go.<br />

C. Linking the carbon footprint to each Service Level Agreement will increase sustainable<br />

development.<br />

D. Addressing blended governance issues spanning across legislative, social, economic and<br />

environmental aspects.<br />

E. Resisting excessive intervention and regulations will allow creativity to flourish in the<br />

workplace environment.<br />

F. <strong>Inc</strong>reasing collective contribution to the wealth effort.<br />

G. Balancing legislation with best practice will help the move towards an ideal workplace.<br />

H. <strong>Inc</strong>reasing FM accountability will encourage facilities managers to own the risk.<br />

I. Influencing the regulatory framework will possibly decrease the amount of bureaucracy in<br />

organisations.<br />

J. Entering into negotiations relating to tax on business travel and compromising in a way that<br />

some tax is applicable but not outrageous.<br />

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Research Priorities:<br />

GOVERNANCE: • Local Governance<br />

• CSR<br />

CORPORATE • Culture<br />

• Branding<br />

• Policy<br />

• Communication<br />

WORKPLACE • Flexible Working / Mobility / Remote Working<br />

• New Ways of Working<br />

• Technology<br />

WORKSPACE • Physical vs. Virtual<br />

• Office / Home / Elsewhere<br />

• Spatial<br />

• Collaborative Working Environment<br />

SOCIAL • <strong>The</strong> Individual<br />

• Work Life Balance<br />

• Network<br />

KNOWLEDGE • Knowledge Capital<br />

• Intellectual Property<br />

• Intellectual Capital – Individual vs. Corporate<br />

• Knowledge management<br />

• Knowledge Framework<br />

• Knowledge Strategy – IP, Corporate knowledge<br />

Analyse and identify ways businesses can<br />

operate ethically, sustainably and profitably.<br />

Recognise ways in which the corporate world<br />

can strive to make an impact in a very<br />

competitive market, whilst being supported by<br />

facilities management accordingly.<br />

Develop sustainable workplace strategies that<br />

will provide the most effective work<br />

environments by accommodating individual<br />

work processes and organisational goals and<br />

identify ways to maintain them.<br />

Evaluate and design new workspaces to<br />

embrace learning and creativity, enabling<br />

organisations to move away from the concept<br />

of individualism, hierarchy and status.<br />

Assess current data on new ways of working<br />

in order to develop social networks to promote<br />

communication, interaction and a workplace<br />

community setting for the promotion of the<br />

employee’s physical and mental well being.<br />

Determine the need to capitalise on<br />

intellectual and knowledge capital.<br />

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Propositum<br />

Prof. John Ratcliffe<br />

Isaac Asimov once defined science fiction as “an escape to reality”. Softening the threat, perhaps,<br />

but leaving the truth intact. For science fiction has all too often become science fact, and many would<br />

argue that its forecasting record is superior to that of conventional strategic planning with two-thirds<br />

of its projections having happened in one form or another (Buchen, 2005). So too with futures<br />

studies, where the powerful alliance of creative imagination and technological foresight outmatches<br />

and outperforms the standard trend projection or lineal analysis of think-tank strategic planners.<br />

Conceiving the future, therefore, is the prime business imperative for the successful corporation.<br />

Both <strong>Johnson</strong> <strong>Controls</strong> Global WorkPlace Solutions and <strong>The</strong> Futures Academy at DIT share the view<br />

that it is time organisations re-examined how they anticipate and prepare for the future. Nowadays,<br />

most managers expect that sooner or later their own organisation will experience some type of<br />

discontinuous change – new markets, new competitors, new customer needs, new combinations of<br />

technology, new distribution channels, new legislation and the like. <strong>The</strong>re is also a growing<br />

awareness that this change impacts upon the likely nature of the future workplace. But too many<br />

managers still plan and invest based on forecasts of past trends or on a plan for a single ‘most likely’<br />

future, one that is addressed in the corporate plan. Over and over, organisations that await one<br />

‘probable’ future find themselves confused and disadvantaged when confronted with an unfavourable<br />

turn of events for which they are quite unprepared. Often this crisis is one of several futures that<br />

could easily have been anticipated; and if it had been, the organisation could have readied itself to<br />

face the challenge.<br />

We advocate that all organisations seeking to learn from the future adopt a methodology drawn from<br />

the futures field using techniques similar to the ones employed in this project. Above all, however, all<br />

futures-oriented organisations should follow five basic precepts.<br />

1. Appreciate that the key to leadership is the effective communication of a story, a story<br />

whose central narrative clarifies for all concerned their individual and collective identity.<br />

2. Recognise that the current business logic is never forever – there is a continuing need<br />

deliberately to question the basic assumptions of the organisation, its purpose and its products.<br />

3. Involve a wide body of people, from within and without the organisation in strategic thinking and<br />

planning – including the odd ‘visionary’.<br />

4. Conduct ongoing environmental scanning to include industries and agencies from fields and<br />

sectors beyond those within which the organisation operates.<br />

5. Accept that all information-rich, networked societies and their markets run on trust, a<br />

crucially valuable factor that economists tend to ignore in their models.<br />

<strong>The</strong> overarching proposition, therefore, is that organisations of all kinds need to take the long view,<br />

for the greatest risk of our time is being overtaken by inevitable surprises that could have been<br />

foreseen and for which we could have been prepared.<br />

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Appendix A:<br />

Participants<br />

<strong>Johnson</strong> <strong>Controls</strong> and <strong>The</strong> Futures Academy, DIT, would like to thank the following participants who<br />

took part in the Futures Workshop in <strong>Johnson</strong> <strong>Controls</strong> HQ, Farnborough in May 2007 and<br />

completed and returned the survey questionnaire:<br />

Dr Mickael Fenker<br />

Paris La Vilette, France<br />

Dr Ruud van Wezel<br />

<strong>The</strong> Hauge University, <strong>The</strong> Netherlands<br />

Peter McLennan<br />

<strong>The</strong> University of Central London<br />

Dom Sherry<br />

<strong>Johnson</strong> <strong>Controls</strong>, EMEA<br />

Dr Paul Morgan<br />

<strong>Johnson</strong> <strong>Controls</strong>, EMEA<br />

Annie Corrway<br />

<strong>Johnson</strong> <strong>Controls</strong>, EMEA<br />

Andrew Bradshaw<br />

<strong>Johnson</strong> <strong>Controls</strong>, EMEA<br />

Ken Raisbeck<br />

<strong>Johnson</strong> <strong>Controls</strong>, EMEA<br />

Peter Ferguson<br />

<strong>Johnson</strong> <strong>Controls</strong>, EMEA<br />

Karen Howells<br />

<strong>Johnson</strong> <strong>Controls</strong>, EMEA<br />

Dr Marie Puybaraud<br />

<strong>Johnson</strong> <strong>Controls</strong>, EMEA<br />

Deb Roberts<br />

<strong>Johnson</strong> <strong>Controls</strong>, Asia<br />

Clay Nesler<br />

<strong>Johnson</strong> <strong>Controls</strong>, US<br />

Ichiro Yoshida<br />

<strong>Johnson</strong> <strong>Controls</strong>, Asia<br />

Peter Thompson<br />

Henley Management College, UK<br />

Andrew Hawkins<br />

<strong>Johnson</strong> <strong>Controls</strong>, Asia<br />

Professor Frank Duffy<br />

DEGW<br />

Rick Bertasi<br />

<strong>Johnson</strong> <strong>Controls</strong>, EMEA<br />

Dr Anne Marie McEwan<br />

Bizintel<br />

Professor Alexi Marmot<br />

University of Central London<br />

Steve McLellan<br />

Glaxo Smith Kline<br />

Pete Bays<br />

IBM<br />

Paul Bartlett<br />

OPN<br />

Paul Carder<br />

IPD<br />

Professor John Ratcliffe<br />

DIT<br />

Ruth Saurin<br />

DIT<br />

Julie Gannon<br />

DIT<br />

Gillian O’Brien<br />

DIT<br />

Dominica Brodowicz<br />

DIT<br />

Dr Walter van der Es<br />

<strong>The</strong> Hague University, <strong>The</strong> Netherlands<br />

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Appendix B:<br />

Academic thought<br />

provocateur<br />

Provocative thoughts by Dr Michael Fenker, School of Architecture Paris<br />

La Villette, France<br />

Driving forces of change in the workplace:<br />

Approaching space as a cognitive resource<br />

In the context where workplace management is more and more approached from the service side<br />

rather than from a building construction point of view, a different understand of the role of space in<br />

work and management processes of client organisations can emerge. This understanding is based<br />

on the distinction between space and artefacts like buildings, tables etc.:<br />

Actions for FM community to move<br />

there:<br />

To support research and studies that<br />

help to understand usability<br />

(performance as efficiency,<br />

effectiveness and satisfaction is<br />

affected by culture, context and<br />

situation).<br />

To develop evaluation methodologies<br />

that are not limited on achievement of<br />

requirements established during the<br />

design phase but that assess the<br />

ongoing change of business<br />

processes.<br />

To consider user experience and user<br />

knowledge as an integrated part of<br />

design strategy. This has to happen<br />

through research that backs up FM<br />

operations, case studies and<br />

experimental projects.<br />

• Space is a social product, a system of social relations mediatized by artefacts. Space or spaces<br />

are a set of representations that organise the perception of a place and of the relations between<br />

the users of a place. Space refers back to the diversity of positions in social relations, and to the<br />

diversity of projects and intentions that individuals or groups pursue while engaging in collective<br />

action.<br />

• <strong>The</strong> way we occupy a place (the way we behave) depends on the representation(s) we mobilise<br />

in relation to this place. <strong>The</strong>se representations depend on our origin, the situations or the context<br />

where we mobilise them, it also depends on the collective project or shared values within an<br />

organisation, etc.<br />

• Space is a resource for organisations as it contributes to the construction, the negotiation, and<br />

the understanding of meanings and values. Mobilising representations (using space individually<br />

and collective as we do) is a way of approving, confronting, negotiating, or changing our<br />

positions within a group and the goals we pursue. Space reflects, often on a very tacit level, the<br />

kind of values that an organisation puts on the top, the way business processes are organised<br />

and the importance given to its social capital. It’s a recipient of meaning without which no action<br />

can take place.<br />

FM will essentially become a social and a management activity<br />

<strong>The</strong> body of knowledge conveyed by space is not stable over time. Each situation can change the<br />

representation we mobilise, (because of changing context, changing business strategies, changing<br />

organisational culture, etc.) and can make the conveyed knowledge / or the recipient (space)<br />

inappropriate. Construction and negotiation of meaning happens of course during the design phases<br />

of a place, a building, etc., but it happens also very much during the work or management processes<br />

in which the occupants of a place are involved in. Understanding space as a cognitive resource for<br />

organisations will contribute to a focus on the processes part of producing and managing workplaces;<br />

FM will essentially become a social activity that contributes to the adjustments between the facilities<br />

(including the related services), the strategic intentions and the shared social value by the<br />

stakeholders. Beside physical aspects, these adjustments are very much of a managerial kind,<br />

imbedded in the continuous organisational processes of a firm.<br />

An important part of services delivered by FM could become the management of the representations<br />

and of the conveyed knowledge, including making the representations explicit and supporting and<br />

evaluating the processes by which they affect the organisation. FM could take the role of a mediator<br />

in this processes of making meanings, finalities, objectives etc. explicit: between different<br />

organisational bodies, and between management decisions and means that support them (having an<br />

expertise especially in understanding how these means provide functional and social values).<br />

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What will push towards this way of understanding the role of FM<br />

<strong>The</strong> evolution towards a more distributed workplace for many people in fast changing companies will<br />

diminish the control the organisations have on their classical corporate environment. In exploring the<br />

territories that become accessible for them, an important question will be how values, culture, shared<br />

meanings can be stated, transmitted, etc. This will increase the need for emphasising on the learning<br />

process provided by the design and the use of space. <strong>The</strong>se refers to a double loop process:<br />

facilities (and the related services) are a result of a design process where organisational goals and<br />

values have been made explicit and embedded in the artefacts and services. This artefacts and<br />

services will influence the users of a place and the values they offer will again be confronted to the<br />

events and changes that occur for the users. <strong>The</strong> demand for understanding these processes will<br />

come from companies that largely base their operations on a distributed workplace strategy.<br />

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Provocative thoughts by Dr Ruud van Wezel, <strong>The</strong> Hague University, <strong>The</strong><br />

Netherlands<br />

<strong>The</strong> Futures of the <strong>Workplace</strong><br />

1. How is the appropriation of space (real and virtual) by people taking shape and managed? That<br />

is for us one of the most interesting FM questions. From the user’s perspective we collect<br />

environmental psychological and socio-ethnic data on the influence of space on behaviour. From<br />

the managerial point of view we take ideas from ‘change management’ and HRM. Statement:<br />

<strong>The</strong> facility manager has no clue of what moves the business, people wise.<br />

2. Experience of the space by different ‘target’ groups is essential, how do they appreciate,<br />

appraise the environment is relevant. We take on board a multi-sensorial approach to investigate<br />

this. Air quality and control over the air flow as well as control over sounds (music, HVAC<br />

systems, printers, lightning systems etc.) are taken into consideration when studying the work<br />

environment. Another, more neglected sense is smell that will gain importance in the future.<br />

Statement: <strong>The</strong> facility manager should use his nose.<br />

3. From a more socio-anthropological scope the concepts of bonding and bridging are of<br />

importance. Age, sex, ethnicity, work background or, in short, life style could be a strong factor in<br />

choosing a working/living ambiance. Identity and community are key words in our studies which<br />

we put in a time perspective. Space and Place in connection with the way people territorialise<br />

them is a major issue for the future. If FM takes away the individualisation of space it should be<br />

compensated by collectivization mechanism. Statement: bonding comes before bridging when<br />

designing space.<br />

4. <strong>The</strong> legal aspects of shaping space and place are taking more and more importance. <strong>The</strong> (intern)<br />

national standards are playing a significant role. Statement: <strong>The</strong> new economy (creative industry)<br />

demands no regulations at all: danger helps!<br />

5. <strong>The</strong> nature of appropriation and territoriality in virtual organisational space has had no scientific<br />

interest jet. A concept of time-space compression should be taken seriously, like the tension<br />

mediated by physical space and its symbolism. <strong>The</strong>re are parallels in territorializing virtual and<br />

real space, and what are the interfaces?<br />

6. At <strong>The</strong> Hague University we have developed a web based e-learning assessment tool. In this<br />

simulation students act as junior workspace consultants to solve a workspace problem in a 3D<br />

virtual building (a travel agency office, called Globus). This program is also to be used for training<br />

FM professionals (Workspace Edugame © Dr. Walter van der Es)<br />

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Provocative thoughts by Peter McLennan, UCL, England<br />

<strong>The</strong> Future of Global FM<br />

Introduction<br />

<strong>The</strong> future of facility management as a sector in the global economy is, like any future, highly<br />

uncertain. Innovative activity is both stimulated and engaged by uncertain events and, as Porter<br />

suggests, “is the central issue in economic prosperity.” But the traditional scenario process provides<br />

the means to anticipate and respond to these risks. <strong>The</strong>re are two main uncertainties that come to<br />

mind for the global FM sector in the next 10 years. <strong>The</strong>se are labour and customers. <strong>The</strong> FM<br />

innovation possibilities given this context (see figure below) are constrained, but have wide ranging<br />

implications for both client and suppliers in the near future.<br />

Labour dimension – experience and education<br />

<strong>The</strong> labour dimension is polarised in FM as skills and techniques. Both can enable knowledge,<br />

judgement and innovation, but skills are often based on experience while techniques have their basis<br />

in learned theory and concepts. Research suggests that the experience only results in sporadic<br />

innovation along either technological substitutions (cost control) or process lines (operational<br />

alignment), but these have their limits (see figure 1). On the other hand, learned techniques enable<br />

analysis and prediction of problems, thereby ensuring the possibility of innovation in a more<br />

meaningful way resulting in the potential for added value and competitive advantage. This is the<br />

position that both the EU and BERR in the UK (formerly the DTI) are currently measuring. <strong>The</strong>ir<br />

research suggests that for any given sector the innovation potential is very different between the<br />

labour resource that has experience and no education versus those with experience and education.<br />

Future scenarios for innovation in global FM<br />

Customer dimension – direct contact or indirect contact<br />

<strong>The</strong> customer dimension is the degree to which the facility management function has contact with the<br />

customer. It is either indirect or direct. <strong>The</strong> facility management operations in a direct customer<br />

context are part of the organisations service delivery system, which can be seen as the organisation<br />

‘trading through their space’ (public sector examples are education, health care and local authorities;<br />

private sector examples are leisure, sports and entertainment; and charity sector examples institutes,<br />

aid organisations and foundations). In the indirect they support the employees’ activities. For the<br />

indirect position the innovation is technological substitution (cost control) and process / structure<br />

(added value) in support of the organisations’ employees. <strong>The</strong> innovation potential in the direct<br />

situation has greater impact and affects the entire service delivery system (competitive advantage)<br />

and process (operational alignment). <strong>The</strong> customer dimension provides a number of opportunities for<br />

innovation.<br />

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<strong>The</strong> Future<br />

<strong>The</strong>re are four potential outcomes for facility management based innovation given the two<br />

uncertainty dimensions shown in figure 1. <strong>The</strong>y limit what is possible in terms of the benefit from<br />

innovative activity within FM. This spectrum of benefit can range from FM providing competitive<br />

advantage as a core function for those with direct customer contact (they trade through their space)<br />

and an experienced and educated workforce to a focus on process and technological substitution<br />

innovations for those with indirect customer contact and an experienced workforce. Understanding<br />

which of these roles you perform will enable a more focused innovation.<br />

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Appendix C:<br />

<strong>The</strong> Futures<br />

Methodology<br />

<strong>The</strong> Futures Concept<br />

<strong>The</strong>re is a growing realisation, in all areas of life, that the future is not fixed. <strong>The</strong> notion that the future<br />

can be ‘shaped’ or ‘created’ has gained currency over the past decade, and is increasingly the basis<br />

upon which organisations of all kinds make their plans.<br />

<strong>The</strong> concept of ‘futures’ is encapsulated in the idea of trying to make things happen, rather than<br />

guessing what might happen. Using this concept, and the business of discovery, organisations and<br />

individuals have to embrace uncertainty, and continually review a wide range of policy options.<br />

<strong>The</strong> crucial questions generally examined in the futures field in the examination of an issue or policy<br />

include the following:<br />

• What are the main continuities?<br />

• What are the major trends?<br />

• What are the most important change processes?<br />

• What are the most serious problems?<br />

• What are the new factors ‘in the pipeline’?<br />

• What are the main sources of inspiration and hope?<br />

A useful metaphor to describe the aim of the futures field is providing a ‘map’ of the future. In<br />

essence, futures studies supplies policy makers with views, images and alternatives about futures in<br />

order to inform and protect decisions made in the present. It is important to note that the underlying<br />

purpose of futures studies is not to make predictions, but rather to gain an overview of the present<br />

context in order to illuminate alternative futures. Interpretation, not forecast, is the essence of this<br />

approach.<br />

Why Scenarios?<br />

Put very simply, the purpose of the future studies approach is to discover or invent; examine or<br />

evaluate; and propose possible, probable and preferable futures. Key to this is the development of<br />

scenarios.<br />

Scenario thinking recognises that in dynamic environments the future cannot be predicted, but it is<br />

something for which one can be prepared. Scenarios embrace the potential for uncertainty and<br />

discontinuities and, therefore, help to prepare for surprising change. In this way, scenarios help to:<br />

• Create a wider shared view of future possibilities;<br />

• Challenge the basic assumptions of those participating;<br />

• Alert individuals, agencies and organisations to a wider and deeper understanding of change;<br />

and<br />

• Enable decision-makers to tackle complexity and uncertainty in a robust, yet flexible, manner.<br />

Decisions that have been pre-tested and future-proofed against a range of prospects that fate may<br />

hold are more likely to stand the test of time. Taking an informed and investigated long-run view may<br />

also give an organisation the courage and confidence to stick to a set of priorities and policies, rather<br />

than back-off in the face of sudden resistance or short-term failure.<br />

Scenario development is emerging exponentially as a powerful planning tool, providing an effective<br />

framework that highlights critically uncertain conditions and options. This will ultimately assist<br />

organisations move towards more effective strategies in the pursuit of a sustainable workplace<br />

environment. Crucial to this, however, is the development and application of the ‘Prospective<br />

Through Scenarios’ approach.<br />

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<strong>The</strong> Prospective Process<br />

<strong>The</strong> ‘Prospective Through Scenarios’ process is becoming more popularly applied across Europe in<br />

a variety of strategic settings. It requires organisations to perceive creatively what is going on in their<br />

environments. It requires them to think through in an imaginative way what their environment means<br />

for them, and then demonstrate the readiness to act decisively upon this new knowledge. Most of all,<br />

however, it demands them to determine what they wish their preferred future to be.<br />

<strong>The</strong>y show this willingness by analysing, in an exploratory manner, the required components of the<br />

process bringing them closer to a common desired goal - the prospective. It is argued that being able<br />

to use this process is the ultimate competitive advantage.<br />

What are the benefits of the process?<br />

• It encourages participation in decision-making, thus enhancing ownership and commitment of<br />

ideas, plans or policies.<br />

• It allows for informal discussion and debate, often resulting in a newly formed common language.<br />

• It encourages the development of social networks.<br />

• It encourages creative thinking within rigid organisational structures or strategies, and ‘thinking<br />

outside the box’.<br />

• It allows for flexibility and adaptability in decision-making.<br />

<strong>The</strong> prospective involves a much wider exploration and establishes a much longer time-horizon than<br />

conventional planning. Moreover, it comprises not only the study of the future, and an evaluation of<br />

alternative outcomes against given policy decisions, but also the will to influence the future and<br />

shape it according to society’s and the organisation’s wishes.<br />

<strong>The</strong> method concludes by describing a single preferred future and is created following an in-depth<br />

study in conjunction with the ideas and thoughts provoked by the scenarios.<br />

Three Phases to Futures Thinking<br />

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Appendix D:<br />

Partners<br />

Key Sponsor: <strong>Johnson</strong> <strong>Controls</strong>, Global WorkPlace Solutions<br />

<strong>Johnson</strong> <strong>Controls</strong> Global WorkPlace Solutions is the leading global facilities management solutions<br />

provider. With over 50 years experience in the facilities management business, <strong>Johnson</strong> <strong>Controls</strong><br />

has the expertise to deliver comprehensive workplace strategies that support your global facility<br />

portfolio.<br />

Our approach to facilities management outsourcing is unique. We work with our clients to understand<br />

their business needs and then we create tailored solutions designed to meet those needs. We are<br />

accountable for implementing our solutions and then for guaranteeing the outcomes promised by our<br />

recommendations. What we deliver are comprehensive solutions that are good for our customers'<br />

organisations.<br />

Contact: Dr. Marie Puybaraud, marie.c.puybaraud@jci.com, 0044 (0) 7966 563 167<br />

<strong>The</strong> Futures Academy<br />

<strong>The</strong> Futures Academy at Dublin Institute of Technology (DIT) was established in January 2003 to<br />

provide both a research and consultancy forum for promoting and encouraging the concept of ‘futureproofing’<br />

policy and strategic decisions. Although formed under the auspices of the DIT, <strong>The</strong> Futures<br />

Academy is not exclusively an academic exercise. With staff of high quality professional and<br />

academic backgrounds, <strong>The</strong> Futures Academy is a very pragmatic, down-to-earth research and<br />

consultancy service. Through the experience of its staff, it recognises the need for government and<br />

industry alike to be provided with useful, practical, comprehensible information which can make a<br />

positive difference to everyday policy and practice. <strong>The</strong> creation of <strong>The</strong> Futures Academy in Ireland<br />

furnishes Irish public and private sectors with expertise and networks within which to develop and<br />

instigate future proofing in their own disciplines and industries.<br />

Contact: Professor John S. Ratcliffe, john.ratcliffe@dit.ie, 00353 1 402 3711<br />

Ruth Saurin, ruth.saurin@dit.ie, 00353 1 402 4041.<br />

DIT<br />

<strong>The</strong> Dublin Institute of Technology is a comprehensive higher education institution, fulfilling a national<br />

and international role in providing full-time and part-time programmes across the whole spectrum of<br />

higher education, supported by research and scholarship in areas reflective of the of the Institute’s<br />

mission. DIT has proven itself to be one of the most popular institutions of higher education in Ireland<br />

and the reasons include excellent student support facilities, an ethos that encourages active learning<br />

and dynamic course content, and its tradition of academic excellence alongside professional<br />

relevance.<br />

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Appendix E:<br />

Research Team<br />

<strong>The</strong> Futures Academy<br />

Professor John Ratcliffe D. Tech., MA [Urban & Regional Studies]. BSc<br />

[Est. Man], FRICS, FSVA<br />

John Ratcliffe is a chartered planning and development surveyor with almost forty years experience<br />

as a consultant and academic in the fields of urban planning and real estate development. Currently<br />

he is Director and Dean of the Faculty of the Built Environment at the Dublin Institute of Technology,<br />

which is the largest university level institution in the Republic of Ireland, and Founder and Chairman<br />

of <strong>The</strong> Futures Academy there. He is also an Honorary Visiting Professor at the University of Salford<br />

and the University of Lincoln as well as an Associate of the futures consultancy Outsights in the UK.<br />

<strong>The</strong> author of a number of books and numerous other publications on land use and development<br />

matters, John Ratcliffe has also acted as a consultant to national and international organisations and<br />

agencies in both the public and private sectors. In the public sector, these include the World Bank,<br />

the UNDP and the European Investment Bank; and in the private sector, American Express,<br />

Electricitiée de France, Lafarge, Grosvenor Estates and <strong>Johnson</strong> <strong>Controls</strong>. He was the initial<br />

Chairman of the Policy and Practice Committee of the Urban Land Institute [Europe] and the founder<br />

of the Greater Dublin ‘Prospectives’ Society. He has extensive international experience and spent<br />

over ten years in the Far East.<br />

Over the past decade he has acquired a particular expertise in the futures field, with special<br />

reference to the sustainable development of city regions. He has recently been involved in:<br />

collaborating in a major European project concerned with Improving the Quality of Life in Large<br />

Urban Distressed Areas [LUDA]; conducting a Dublin Vision 2020 exercise on behalf of the Dublin<br />

Chamber of Commerce; advising the Dublin Regional Business Alliance and the Dublin City Centre<br />

Business Association in respect of strategic planning; and providing assistance to various<br />

development agencies in several European countries. He has also acted as a consultant to a range<br />

of corporate enterprises in their long-term strategic thinking and planning. Most recently he has been<br />

commissioned to undertake a Strategic Visioning Exercise “Twice the Size” exploring the sustainable<br />

growth and development of the Irish Gateway Cities for the National Development Plan.<br />

A special interest of Professor Ratcliffe at the moment is the nature and development of responsible<br />

business practice, with particular reference to the real estate and construction industries.<br />

In August, 2005, John Ratcliffe was elected to the position of Secretary-General of the World Futures<br />

Studies Federation, the global body for professional futurists.<br />

Ruth Saurin BA, PG Dip, MSc<br />

Ruth Saurin is a postgraduate researcher in <strong>The</strong> Futures Academy in the Faculty of the Built<br />

Environment, Dublin Institute of Technology. She is currently involved in a project that focuses on the<br />

facilities management industry in Ireland using new research technologies drawn from the futures<br />

field. In addition to this project, Ruth has participated in a number of research projects relating to<br />

energy scenarios and was heavily involved in the publication of the documents Nuclear Energy:<br />

friend or foe and Why Renewables Need Nuclear, which explored the potential for nuclear power in<br />

the future of the global energy scene. Ruth has a background in international business and<br />

sustainable development with a keen interest in urban and organisational environments.<br />

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Appendix F:<br />

References<br />

• Alexander, K. [1997] "Redefining the <strong>Workplace</strong>" Facilities Management: European Practice<br />

1997 Arko: <strong>The</strong> Netherlands<br />

• Bazerman, M. and M. Watkins [2004]. Predictable Surprises. Harvard Business School Press,<br />

Boston, Mass.<br />

• Buchan, I. [2005]. <strong>The</strong> Future Workforce. R & L Education, Maryland, US<br />

• Canton, J. [2006]. <strong>The</strong> Extreme Future. Dutton, Penguin, New York.<br />

• Gaddie, S. [2003]. “Enterprise Programme management: Connecting strategic planning to project<br />

delivery” Journal of Facilities Management. Vol 2:2, September<br />

• Glenn, J. and T. Gordon. [2006]. “Update on the State of the Future” <strong>The</strong> Futurist. Vol 40:1,<br />

Jan/Feb.<br />

• Hawken, P. Lovins, A. and L. Hunter Lovins. [1999]. Natural Capitalism. Earthscan, London.<br />

• Hawken, P. A. Lovins and H. Lovins [2000]. Natural Capitalism: <strong>The</strong> Next Industrial Revolution.<br />

Earthscan, London.<br />

• Heerwagen, J., Kelly, K., Kampschroer, K., [2007]. <strong>The</strong> Changing Nature of Organisations, Work,<br />

and <strong>Workplace</strong>. Holland can be found at http://www.wbdg.org/design/chngorgwork.php)<br />

• Henriques, A. [2004]. (ed) <strong>The</strong> Triple Bottom Line: Does It All Add Up? Earthscan, London.<br />

• Klare, M. [2002]. Resource Wars. Owl Books, New York.<br />

• King Sturge. [2005]. European Real Estate Scenarios: Nirvana or Nemesis. London (can be<br />

found at http://www.dit.ie/futuresacademy)<br />

• Leggett, M. [2006]. “An Indicative Costed Plan for the Mitigation of Global Risks” Futures, Vol 38:<br />

7 September.<br />

• Lovelock, J. [2006]. <strong>The</strong> Revenge of Gaia. Allen Lane, London.<br />

• Martin, J. [2006]. <strong>The</strong> Meaning of the 21 st Century. Eden Project Books, London.<br />

• National Centre for Partnership Performance, (2006). Building Innovative <strong>Workplace</strong>s Through<br />

Partnership. NESDO, Dublin<br />

• OECD [2004]. Towards High-Performing Health Systems. OECD, Paris.<br />

• Rees, M. [2003]. Our Final Hour. Basic Books, New York.<br />

• Sidle, C. [2005]. <strong>The</strong> Leadership Wheel. Palgrave Macmillan, New York.<br />

• Tapscott, D. and A.D. Williams (2007) Wikinomics: How mass collaboration changes everything.<br />

Atlantic Books, London<br />

• W. Chan Kim and Renée Maulborgne (200?) Blue Ocean Strategy<br />

• Hawken, P. A. Lovins and H. Lovins [2000]. Natural Capitalism : <strong>The</strong> Next Industrial Revolution.<br />

Earthscan, London.<br />

• CoreNet Global (2004). Corporate Real Estate 2010 : Sustainability and Corporate Social<br />

Responsibility.<br />

• Ross, P. [2004] Urban Land Europe, Summer 2004<br />

• Heerwagen et all [2007]<br />

• Alexander, K. [1997] "Redefining the <strong>Workplace</strong>" Facilities Management:<br />

• European Practice 1997 Arko: <strong>The</strong> Netherlands.<br />

• Young, S. [2003]. Moral Capitalism: Reconciling Private Interest with the Public Good. Berrett-<br />

Kochler, San Francisco.<br />

• Walzer, M. [2004]. Arguing About War. Yale University Press.<br />

• Williams, D. [2005]. Real Leadership. Berret-Koehler, San Francisco.<br />

• W. Chan Kim and Renée Maulborgne (2005) Blue Ocean Strategy<br />

• Heerwagen, J., Kelly, K., Kampschroer, K., [2007]. <strong>The</strong> Changing Nature of Organisations, Work,<br />

and <strong>Workplace</strong>. Holland (http://www.wbdg.org/design/chngorgwork.php)<br />

51<br />

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No information can be reproduced without the authorisation of <strong>Johnson</strong> <strong>Controls</strong>


For further details:<br />

Please contact:<br />

Dr. Marie Puybaraud<br />

Programme Director R&D in Facilities Innovation<br />

Consulting Group EMEA, Global WorkPlace Solutions<br />

<strong>Johnson</strong> <strong>Controls</strong> Ltd<br />

Park West 1, Farnborough Aerospace Centre<br />

2 Woodside Road, Farnborough, Hampshire, GU14 6XR<br />

0044 (0) 7966 563 167<br />

marie.c.puybaraud@jci.com<br />

Artwork and Design:<br />

Adam Bushnell, Design & Production Specialist,<br />

<strong>Johnson</strong> <strong>Controls</strong>, Global WorkPlace Solutions, EMEA<br />

adam.c.bushnell@jci.com<br />

52<br />

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No information can be reproduced without the authorisation of <strong>Johnson</strong> <strong>Controls</strong>

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