Measurement Making Sense of Metrics - Seeking to create a compelling work experience? Use big data and thick data for better outcomes - Steelcase
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Measurement Making Sense of Metrics Seeking to create a compelling work experience? Use big data and thick data for better outcomes.
Measurement
The months spent Given the renewed importance of
the office and the changing nature
Measuring the
in the pandemic of what we define as effective, work experience
provided the efficient, safe and compelling
spaces, measuring the workplace In the past, measurement was
opportunity and the work experience will be most effectively applied to tracking
key to our learning and continuous output on the factory floor. But
for plenty of improvement. today’s technology allows metrics
learning—and high Historically, the metric that
to permeate the office environment,
with many efforts underway to
on the list is the mattered most when measuring the
effectiveness of a workplace was
explore how evidence-based
importance of the square feet per person. Real estate
research can help shape a work
culture where people are fulfilled and
work experience and facilities professionals justified
proposed workplace changes largely
productive.
as organizations on how convincingly they promised
Today, data is so dominant it is
to save money per square foot.
seek to attract possible to measure just about
If any other consideration came into
people to the play, it was most likely the opinion of
every aspect of the white-collar
experience—and the workplace’s
workplace, foster a HiPPO—the highest-paid person
in an organization. Senior leaders
contribution to it.
their commitment who advocated for change—even In some cases, white-collar
and motivation if based on little more than a gut
feeling— usually got their way.
measurement is tangible. Gathering
data regarding market share
and develop them Today, the bar is higher. Workplaces and other aspects of financial
successfully. But are expected to contribute to performance, for instance, is
straightforward. Many aspects of the
what made for a organizational effectiveness by
influencing things like culture, white-collar experience, however,
great workplace collaboration, engagement and seem a bit nebulous — things like
engagement, satisfaction, wellbeing
productivity, all while continuing to
pre-pandemic has demonstrate efficient use of every and employees feeling valued.
shifted, because square foot. The stakes are high,
as many business leaders report a Information we use to guide the
work has changed, deterioration of morale and culture business has differing levels of
and employee as a result of the pandemic. Facilities
and real estate professionals are
visibility, and a model developed by
Ikujiro Nonaka describes three levels
expectations have increasingly being held accountable of knowledge. People are aware of
explicit information and can describe
expanded. As the to create places which contribute
to engagement and constructive it and their needs when you ask.
saying goes, “What cultures. Information that is tacit is just below
the surface and people do not often
got you here, won’t With demands so daunting—not
discuss it, but we can learn about it
to mention the investment required
get you there.” for significant workplace change—
through observation. Finally, people
are less aware of latent information
organizations are seeking to
and we can develop insights through
reduce the risks of big decisions by
designing pilots and experiences. In
leveraging evidence-based data.
order to measure all three forms of
Fortunately, technology has made
information, a methodology which
unprecedented amounts of data
includes a mixture of approaches
available. The challenge now is to
is most effective. In particular,
harness this data to inform decisions
leveraging things like interviews,
that can lead to greater performance
focus groups or workshops,
of people and place.
observation or surveys of employee
This and other white papers have
been developed by the Steelcase sentiment or work modes work well.
Applied Research + Consulting team
to share what we’ve learned with
clients.
© Steelcase Inc. Making Sense of Metrics / 02Measurement
Data for Though workplace metrics can Big data,
help optimize an organization’s
workplace decisions investment in real estate, a more thick data
For employees, a big part of the compelling purpose is to make For measurement to merit reliable
work experience is the workplace. real estate optimal for the people influence over workplace design,
Consequently, researchers are using it. After all, personnel it needs to be both big and
developing and honing workplace expenses account for about 80% thick. Big data is quantitative—
metrics, often with the aid of of a company’s budget on average, voluminous statistics which allow
technology, to better understand whereas real estate requires a for deep processing or advanced
how a workplace is being used and tenth of that. In addition, since the analytical approaches. Thick data
how it might be improved. pandemic it is likely we will see is qualitative—contextual insights
shifts in the ways the workplace is providing greater depth than
The advent of occupancy sensors used. For the majority of companies
and badging systems in particular, numbers alone.
implementing hybrid work, people
unleashed a torrent of data space may choose to do some kinds of Including measurement
planners can analyze to craft work away from the office and other methodologies from both categories
workplaces that use square footage types of tasks at the office. While is important. There is a tendency
efficiently and productively. This data we may predict most in-office work today to favor quantitative data
provides insight into how physical will be collaborative, we also know because technology has made it so
space can be designed to support people will still need places where readily available. The danger is more
teamwork, provide privacy, boost they can focus, learn, socialize data does not necessarily equate
collaboration, encourage healthy and rejuvenate. The real value of to greater insight. More sources,
movement or right size conference workplace measurement lies in how however, often do.
rooms—whatever contributes to it can be used to understand how
organizational goals and employee By using a variety of big and thick
people are using space and in turn data sources—both quantitative
effectiveness. support them and all the types of and qualitative—space planners can
work they seek to accomplish. more effectively draw conclusions
about how a workplace can best
support its occupants. Big data
shows what is happening, thick data
8% tells why it is happening, and the
Real Estate
juxtaposition of both provides insight
12% into so what—not just what is going
Technology
on, but what to do about it.
Case in point: Steelcase conducted
Company a sensor study that uncovered
Budget
extremely low occupancy in a
team area at a client organization.
The client’s facilities manager
immediately wanted to repurpose
80%
People the space. First, though, Steelcase
workplace experts examined
employee surveys and found that
ABSIC, Carnegie Mellon University
employees would love to use the
Revaluing Buildings Report space but didn’t feel comfortable
doing so because of a perceived
lack of privacy. A few tweaks were
all it took to reconcile the what with
the why— the quantitative with the
qualitative— thereby making the
space more functional.
© Steelcase Inc. Making Sense of Metrics / 03Measurement
Transparency be evident when it takes hold.
What will you see people do and
is key hear them say? Example: In a
Whatever methods you employ, be collaborative culture, you will
sure to let employees know what, see regular usage of informal
when and why you are measuring. meeting areas and hear people
If you undertake observation (also talking about key work topics or
known as ethnography), let people customer needs during chance
know they are being observed. If encounters.
you deploy sensors, be upfront
about how you plan to use the data 3. Determine how to measure
collected and who will have access desired behaviors. Consider
to it. It will help make people more both quantitative and qualitative
comfortable and you won’t come methods. Example: To quantify
across as Big Brother. usage of informal meeting
areas, occupancy sensors are
The key is to portray measurement
especially effective. Spontaneous
as a win-win. Communicating
interaction, however, might
the data will not only help your
organization achieve better results, be measured via qualitative
Occupancy sensors and badging approaches, including surveys,
but also provide value to employees
systems deliver big data. by leading toward a more fulfilling observation and interviews. Also
Workplace Advisor Subscription is work experience or more supportive consider both leading and lagging
an ongoing engagement, collecting workplace. measurements. For example, a
data continuously over a long period leading metric for safety is the
to help organizations optimize number of workers wearing hard
workplace performance over time. hats, while a lagging metric is
Complementing big data is thick A step-by-step the number of accidents. In the
data, characterized by qualitative strategy workplace, a leading indicator for
measures such as employee collaboration might be the number
interviews, focus groups and With so many measurement methods of spaces that support people
available to gain insight into the working together, while a lagging
observation. Surveys are qualitative
work experience, it can be tough indicator would be people’s
too and the Workplace Advisor
to determine which will be most feedback about the extent
services contain elements of both beneficial. The following is a step-
big and thick data. to which they feel the space
by-step strategy for deploying a
supports collaboration.
measurement program that unlocks
greater value from your real estate 4. Prioritize measurement
and facilities. methods. Evaluate potential
1. Know what matters most. measurements identified in step
What are the primary goals for three based on the effort they
your organization—productivity, would take and the impact they
engagement, retention, wellbeing? would have. Interviews are easy
To get the best return on to conduct but probably will have
investment, focus on measuring limited impact on a company that
those things that can have the prefers data-driven decisions.
greatest impact on your key Sensor studies require more
business drivers. Example: If effort, but can make a compelling,
collaboration is a high priority, quantitative case for change.
you will want to dig into usage 5. Don’t overdo it. Seek to
patterns in shared meeting areas,
measure as much as necessary
seeking clues that can help you
fine-tune size, configuration, but as little as possible. You
location and amenities. want to gather just enough
information to demonstrate results
2. Determine what behaviors you and inform improvement. Avoid
want. For each business driver devoting resources to collecting
identified in step one, determine data that will never be used.
which behavioral attributes will
© Steelcase Inc. Making Sense of Metrics / 04Measurement
Extracting value Hierarchy of
from measurement data value
True Story: Year after year, an HR exec compiled a mountain of data into a report The pyramid below represents the
that scrutinized personnel matters from every angle. Year after year, she slipped hierarchy of data value. Data itself
an offer into page 28: “If you’ve read this far, contact me and I’ll send you $5.” is the foundation, whereas insight—
what you need to know to take
Only one person ever did. The moral of the story: Collecting data simply for the
action—resides at the top.
sake of collecting data is pointless. It’s bad enough that hardly anyone read
the report. Even worse, far too much work went into compiling data that simply To climb the pyramid, you need
died—no one was using it to make decisions. to add meaning to the data to get
information. Next, interpret the
Without interpretation—analysis that makes sense of measurement—data is a
information and apply it to your
burden. Collecting even more data won’t help; it just becomes an even bigger
organization to get insight.
burden. After all, finding a needle of insight in a haystack of data won’t get easier
if the haystack keeps getting bigger.
For measurement to be effective, you must distinguish the signal from the
noise. Think of data as a lighthouse in which the beacon is the signal and the
surrounding fog represents the noise. Providing a significant amount of data
won’t do much good because it just looks like noise. If you first make sense Insight
of the data, however, provide insights— the signal—you’ll have a compelling
business case to take decisive action toward a workplace that improves the work
experience. Information
Data
Here is an example of how this
progression might work:
Level 1: Examine the data. An
examination of sensor data reveals
that, on average, private offices are
occupied just 20% of the time.
Level 2: Add meaning to get
information. The fact that executives
travel a lot gives the data meaning.
This context gives you information:
Considering executive travel
demands, it is reasonable to assume
many private offices will often be
underused.
Level 3: Apply information to get
actionable insight. Eliminating
executive offices may not be
a realistic solution—but here’s
an alternative that might work:
Employees frequently complain
about difficulty finding small meeting
areas. Perhaps we could let them
know it is okay to use private offices
as meeting rooms when executives
are out of town.
© Steelcase Inc. Making Sense of Metrics / 05Measurement
Tips for — Make space accountable. If — Productivity isn’t just about
data indicates space usage results. Be careful about
managing metrics is other than expected, don’t focusing too narrowly on
Here are eight tips to bear in assume you need to nudge productivity metrics that you
mind as you develop a workplace people toward a preferred lose sight of what motivates
measurement strategy. behavior. More likely, the people to be productive in
space itself needs to change. the first place. Leaders need
Employees should not be to show they care about
— Start at the end. Identify your held accountable to space. the complete employee
organization’s core business Rather, the space should be experience— an inspiring
drivers and your goals for how accountable to what employees workplace, stimulating
you seek to work together. need. professional development, a
Remember to focus on bigger sense of purpose—not just how
issues such as attraction, proficiently their people check
retention and culture as well as — Use data to experiment.
tasks off a to-do list. Striking a
the spatial connections to these Data can bring clarity to a
balance between accountability
broader goals. From there, work proposed workplace solution.
and caring ensures employees
backward to determine what Example: A Steelcase client with
know what is expected and have
needs to be measured to help benching configurations once
a deep desire to succeed.
achieve desired outcomes. This wondered if installing overhead
approach will help you stay canopies would make them
focused on metrics that can more appealing. Researchers — Keep improving. Workplace
make a difference. conducted a small experiment, metrics are not a one-and-done
by setting up both ways and proposition and the experience
using sensors to measure of the pandemic has caused the
— Incorporate multiple points occupancy. Result: Canopies need to reflect and reimagine
of view. Collect both big and clearly increased utilization. the role of place. Set the
thick data—quantitative and Thanks to indisputable data, expectation with employees that
qualitative—to fully understand the client was able to cascade you will be seeking to learn and
what is happening in your the strategy throughout its improve continuously. Chances
workplace. Multiple sources operations with confidence. are you won’t get things
of data lead to richer insights. Workplace change should not perfectly right immediately and
However, data has a cost. Be be based on hunches or trends. you’ll need to keep seeking
vigilant against the temptation Actionable data helps ensure opportunities to get better.
to collect data just because you you invest in the right kind of Continue collecting data to keep
can. Collecting data irrelevant to change— the kind that makes abreast of your evolving work
your business goals produces efficient use of your real estate experience. Data delivers the
excess noise that makes the investment and better supports most value when used on an
signal harder to find. employees. It removes the risk ongoing basis to fine-tune your
of creating a space that does work environment.
— Take the numbers with a grain not meet employee needs.
of salt. Be careful about putting
too much stock in quantitative — Measurement can improve
data without adding context with engagement. Qualitative
qualitative insights. Decisions measures like workshops, focus
made prematurely—before you groups, surveys and interviews
see the big picture—can be do more than add insight. They
counterproductive and costly. also make employees feel
valued. When employees know
their opinions matter, they are
more likely to keep an open
mind about workplace change.
© Steelcase Inc. Making Sense of Metrics / 06Measurement
Incremental
improvement for
greater value
Back when workplace metrics rarely
ventured beyond square footage,
standard operating procedure at
most organizations involved major
capital investment on a periodic
basis. Millions might be spent to
overhaul a workplace, which then
remained static for a decade or two
before the next spend.
But work has kept changing and the
experience of the pandemic—and
all we’ve learned about work, work
process, work preferences and
workplace—demand that we seek to
measure and improve.
In addition, the data revolution is making it possible for organizations to make
workplace decisions faster, more frequently, and with greater confidence than
ever before.
The future of work promises to be faster, more ambiguous and more
competitive—and the workplace will be a critical part of business success
as well as the employee value equation. Measuring, monitoring and making
appropriate changes will help ensure success in the near term and in the
bright future we’ll all share.
© Steelcase Inc. Making Sense of Metrics / 07You can also read
