Office Space of the Future

Ralph HofmannFacility Management & Real EstateKraft Foods Europe

CompanyRE Port FolioThe Project “CI Concept”

Zürich, August 2011

Source and copy right: Kraft Foods Europe, Brückner Architects

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$12 $12 billion in revenues

Sales in 1616 countries

6161 manufacturing facilities

27,000 27,000 employees

Note: Figures are for the combined Kraft Foods and Cadbury businesses and are approximate.

Fast Facts in Kraft Foods Europe Kraft Foods Europe Fast Facts

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Strong presence across regionFocus on 5 core-categories managed on pan-European basis

Pro Forma KFE 2010 Net Revenues $12.0 Billion including the acquisition of Cadbury

Portfolio of iconic, heritage brands

ChocolateChocolate

CoffeeCoffee

BiscuitsBiscuits

Gum & CandyGum & Candy

Cheese & GroceryCheese & Grocery

Real Estate Portfolio

Kraft Foods Europe

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KFE Real Estate Portfolio in focus: 116 sites

Real Estate

Leased PropertyOffices, residential, ware houses

Owned PropertyPlants, owned offices, ware houses

• # of sites: 55• # of sqm: ~ 150.000• Annual spend: $ 60MM (2010)• Lease duration: 3 to 12 years• Potential Saving $ 8-10MM

• # of sites: 61 • # of sqm: ~ 1.700.000• Owned between 2 and 150 years• Surplus land sale, office space usage

PlantsOffices

KFE BUSINESS AGENDA

Corporate Identity Concept

The Re-Design Project

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The Project Challenge ….

• Re-organize existing desk setup and gain space for additional 120 desk

• Building size: 12,000 sqm (20 sqm/person)

• Increase capacity from 640 to 765 desks (15,7 sqm/person)

• Establish a KF wide office culture reflecting our core values

• Be open and exclusive

• Act like Owners

• Discuss - Decide – Deliver

• Time Frame: 6 months

• 3 months for re-setup

• 3 months for CI-concept

Workplace Transformation – Research Facts

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On an average day 40% - 45% of office work space is vacant/unoccupied in the corporate world

� Random desk checks executed by Kraft Facilities team has validated that Kraft falls into the range

69% of workers surveyed said their productivity would be increased if they had flexibility to customize where they work

� At Kraft, 85% of IS employees say they love to choose where to work

The average worker has 30% untapped productivity because of low affinity and low engagement

� Affinity and engagement scores have been low in Kraft employee pulse surveys

Workplace Transformation –Scientific Background

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Architect planning based onscientific studies together with the “Frauenhofer Institute”

• Work place usage and conditions

• Performance indicators

• Well being

VIRTUAL PAYBACKThe Analysis shows a highly significant strong positive correlation between Office-Performance and Office-Design.

By optimizing the Office-design in terms of high interior design are performanceincreases up to 36 % possible.

Work is changing…

From:

Slower • 50%-75% of work time consumed by scheduled

meetings, with many being unproductive

• Structured & scheduled collaboration

• Decision making takes multiple meetings

Traditional & Activity based Management

• Work is a place -- enforced control over where and when employees work

• Accountabilities poorly defined or measured and performance is frequently based on activities

• Hierarchy driven organization & process

• Heavy reliance on email & point-in-time written communication

“I space”• Personal interaction often feels constrained

because of need to enter someone’s personal space to talk to them

• Limited visibility to Leadership Team

• Offices and cubicles vacant 40% on average and limited meeting space

To:

Faster• 5%-10% of work time consumed by scheduled

meetings

• Unstructured / freeform collaboration

• Quick decision making based on timely information

Hi Tech & Results based Management

• Work is an action – mobility: employees empowered to choose where and how to work

• Accountabilities clearly defined and measured and performance is outcome/results based

• Real-time management of people, process, results via communication / collaboration … Email, alerts, team sites, blogs, discussion boards, face-to-face discussions

“We space”• Open forum for brainstorming and fellowship;

learning from and leveraging each other

• Increased visibility to Leadership Team

• Increased meeting & collaboration space and personal space that is more efficient

Office Of The Future: Result

• No assigned desks (most necessary only)

• Efficient space utilization:

– minimize “I space”; maximize “We space”

– Desks for 60% of people, seats for 120% of people

• Choice of seating designs supports different work needs:

– Open desks for individual PC work

– Enclaves for small group or individual confidential/private meetings

– Work Zones for collaborative, quiet and social needs

• Reduced storage/file space (utilize technology for document storage)

• Innovative technologies:

– Unified Messaging, Work from home tools

– Collaboration tools, Multifunctional Printer

– Wireless and laptops only (no desk stations)

– Bring your own computer at work

– Tele Presence & Video conference

7th Floor before: 37 desks (Executive floor)

Size: 1.100 sqm# of Desks/people : 31/31# of seats: 31# of hot desks: 0# of communication & private zones: 0Sqm/person ratio: 35,5

7th Floor NEW: 54 desks (4 departments)

Size: 1.100 sqm# of Desks/people : 54/85# of seats: 100# of hot desks: 31 (integrated)# of communication & private zones: 5Sqm/person ratio: 12,9

Office Of The Future: Example 7th floor of Lightcube (Headquarter Zürich)

UnassignedDesk Areas

Copyright

Office Of The Future: Concept and Reality7th floor

Office Of The Future: Example 1st to 6th floorLightcube (Headquarter Zürich)

3rd Floor: 77 desksSize: 1.353 sqm# of Desks / people: 77 / 77# of hot desks: 5# of communication & private zones: 0Sqm/person ratio: 17,6

3rd Floor NEW: 102 desksSize: 1.353 sqm# of Desks / people: 102 / 102# of hot desks: 8 (integrated)# of communication & private zones: 5Sqm/person ratio: 13,3

Flexible work places(Adjustable desks, dividers, organizers)

Office Of The Future: Design Elements

Informal Meeting Zones

Silent/quiet Rooms(Phone calls, short meetings)

Privacy Zones(different seating position, cosy …)

Office Of The Future: Design Elements

I call you …

Common Areas(Coffee, Chatting, Watching …)

Office Of The Future: Design Elements

Coffee Point

Coffee Garden

Office Of The Future: Design & Communication Elements

Phone boxes� Unified Messaging with

MS Office Communicator: Instant Messaging, Desktop Sharing, Audio & Video Conferencing; External call bridge, no physical desk phones

� Livemeeting: Large

conferencing, external collaboration, 360°roundtable camera

� Laptops only – no more table PC’s.

� Skype, Social Networks, free internet

� Bring your own computer (BYOC)

� MyAppsOnline Virtualized Desktop: Citrix based environment with rapidly growing application portfolio to access them from anywhere, at anytime, on any computer

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