"This is one of only a few global enterprises that have combined facilities management with IT management into a single, integrated service organization," says Todd Duncan, of Global Workplace Services. "Treating the workplace as a holistic integrated system, it provides one-stop shopping to its business unit customers and offers one unified workplace services solution worldwide."

WPS activities affect some 45,000 "knowledge workers" among P&G's 110,000 employees, including everyone except those who make, pack, or ship the more than 250 products P&G sells throughout the world. Corporate knowledge workers occupy 14 million sf at 168 sites in 60 countries.

"P&G came to the realization that, in order to achieve the success we expect, we need to be global, with a global presence," says Duncan. "The corporation used to be managed by regions, and competed with ourselves for corporate resources within a region. Organization 2005 [so named because full implementation is expected by 2005] turns that around. We are now organized by product and market segment rather than geography. The difference is huge."

Global Approach

One of WPS's overarching business objectives is to accelerate internal processes covering a gamut of activities, reducing costs, bringing new products to market faster, and providing better customer service.

WPS adopted a strategy called "Power of One," which coordinates the previously fragmented functions of Workplace IT, FM, and security into one global entity that delivers total workplace services—including procurement, support, and training—and dispenses integrated, comprehensive workplace solutions. The strategy is deployed via three regional organizations: Europe, Middle East, and Africa; the Americas; and Asia.

This approach allows the company to adopt current best practices worldwide, unless local laws, social customs, or common sense prevent it. For example, WPS might decide to offer dining services to its corporate employees to keep them on site. But if P&G leases space in a building that already contains a commissary for tenants, the company obviously would not provide additional dining facilities for its own employees.

"Customization is possible, but it's the exception," Duncan explains. "The P&G general manager who runs the product business at each location is now considered a customer, not the owner of the facility. It hasn't been an easy transition for all managers, but P&G is pretty good at marketing. We sell our employees on new concepts the same way we sell products." (See sidebar, Procter & Gamble Uses Proven Strategy to Smooth Move to FlexWork.)

Combining IT and FM

A major feature of P&G's worldwide shared services organization is the combination of IT and FM.

Under the old structure, corporate facilities and security were part of HR, Duncan explains. Facilities managers reported to one of four regional HR departments in North America; Latin America; Asia; and Europe, Middle East, and Africa. Workplace IT, on the other hand, was part of corporate IT, which reported to the chief information officer.

The combined services organization saves the company money while offering customers more efficient service. It also provides better planning for new facilities.

"Facilities and real estate would be on the front lines when designing a new site in another country," Duncan says. "FM might not remember to cover all the normal IT issues. We were two very distinct departments, to the point where IT and FM used to generate two separate funding requests for a new site, one for the building and one for IT."

The company combined FM and IT management because it realized that the goals and functions were inextricably linked. Both significantly impact the work of those residing in corporate buildings, creating much opportunity for synergy.

"We found we were recruiting the same kinds of technical degree folks for IT and facilities," says Duncan. "P&G is a promote-from-within organization. We look for people right out of college to join us for a career."

Students who complete an education in mechanical, electrical, or civil engineering, or industrial management can easily go into systems work, because a lot of course work involves computer training.

"They are well suited for IT positions, especially workplace IT, with the hardware and software used in phone and server networks," Duncan explains. "IT is pervasive. We see it as an enabling organization, part of everything we do, like finance. And we provide the post-college training to develop specific FM and IT skills."

The combination of IT and FM has produced tangible and immediate results. The office move process, for example, used to require two weeks' notice just to coordinate the two functions. Now the company needs only a few hours' notice to execute an office move.

"It was a confusing situation, with the individual being moved handling the coordination of several different components," says Duncan. "Now WPS uses one person at a site to do all of that in one motion. WPS coordinates the entire process, and the person moving has more time to do his or her job.

"We had people sitting around waiting to move from one office to another, because facilities might be ready to move the desk but IT wasn't ready to move the computer until the next day," he continues. "We had separate site managers for FM, IT, and security. Now one person shows up to move your office, because we have a lot of multi-skilled workers. The person working on the desk isn't expected to reprogram the computer, but he can get the computer moved."

However, Duncan admits it has not been a seamless transition.

"There are IT folks saying, 'I'm not sure I want to do facilities work,' and FM folks saying, 'I'm a mechanical engineer; I like what I do, and I don't want to do computer programming,'" he says. "It required a lot of retraining and support. There are still issues, but the key is that we did not go in there and say, 'Half of you will be laid off.'"

Although some downsizing did occur over time through attrition, many roles were integrated, not eliminated.

One-Stop Service Shopping

Combining IT and FM creates a holistic integrated service system. It provides for one-stop shopping for all service requests, whether the customer needs a PC, a warmer office, or a new security badge.

In the past, every P&G campus in every city had its own contact number and procedure for requesting service. Cincinnati alone had eight help desks, each with its own staff and telephone number. Through the integration, customers throughout a region will call a centralized help desk for any kind of WPS service request.

P&G also is piloting a Web-based service request system, which will support—but not fully replace—the phone centers.

"The phone is time-zone dependent, the Web is not," says Duncan. "We need both options."

FlexWork

A third WPS business objective is to enhance employee performance and productivity by creating a highly flexible work environment. Standardizing and centralizing the help-desk function was critical for the growing number of P&G employees who no longer have permanent offices because they work in many locations within or outside the company.

FlexWork—utilizing telecommuting, hot-desking, hoteling, and office sharing—is a new philosophy that "work" at P&G is now a verb, not a place. The goal: to achieve 125 percent utilization of all corporate facilities worldwide, involving 15,000 (one-third) of all knowledge employees.

"I used to leave home in the morning and say, 'I'm going to work,'" says Duncan. "I don't do that anymore. I have given up my corner office; I'm a hoteler now and work wherever my meetings lead me. We need to be able to work anytime, anywhere."

The concept has proven very popular, helping in both hiring and retention.

"It allows employees to work more like they did in college," he adds. "Our new folks especially just love it."

From Bricks to Clicks

The fourth business objective is to cut aggregate workplace costs by reducing investment in physical property. This includes reducing ownership, increasing lease, and disposing of surplus facilities as FlexWork expands. Part of the savings will be redirected into IT assets and Human Resources.

"In other words, we are exchanging costs from bricks to clicks, and thus reducing overall costs," says Duncan.

By Lisa Wesel

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ISSN: 1096-4894