1Background and Business Drivers

Table of contents

1BACKGROUND AND BUSINESS DRIVERS

1.1What are we aiming to achieve?

1.2Outcomes

1.3Benefits

2DESCRIPTION

3KEY DELIVERABLES

4KEY TASKS

5ICT SUPPORT

6PROCUREMENT

7MEASURES OF SUCCESS

9RISKS AND STAKEHOLDERS

9.1Risks

9.2Stakeholders

10LAW CONFORMANCE ASSURANCE

1BACKGROUND AND BUSINESS DRIVERS

HOW DID THIS Pilot COME ABOUT?

Currently the ATO spends approx $265M per annum on accommodation and this is seen as a fixed corporate cost. There is currently a vacancy rate of approximately 13% against a corporate target of 8-10%. This situation costs the ATO approx $25-30M per annum in unused work points. A change to the ratio of work points allocated to staff could see the ATO reduce annual fixed costs by up to $50M per annum, depending on the take up of a lower ratio of work points to staff. These funds would then be available for other corporate expenses such as staff salaries etc.

It is anticipated that the existing work environment will be subject to external influences which will have the capacity to change work practices, technology and ways of attracting and managing staff. This will have a significant impact on office accommodation design and utilisation. Large organisations both in Australia and overseas have, or are moving to,more flexible work space solutions to address some of these issues and to deliver reduced space requirements and savings in real estate costs.

Increasing pressures on the ATO budget and the significant cost of providing office accommodation require PS&ES to test different approachestothe supply and use ofoffice accommodation. Core elements of a flexible work environment (FWE) provide an opportunity for individuals to choose a work space that suits their needs and the type of work they do. This change in approach is currently being introduced in organisations such as NAB, ANZ, Commonwealth Bank, IBM, Microsoft, Macquarie Bank,and Delloites.

This pilot will allow the ATO to test more flexible work space usage in a large, multi function, government environment. Flexible work space has been proven to enhance working conditions, increase workplace collaboration, reduce unplanned leave in the work place as well as improve efficiency and reduce costs in the supply and use of office space.

Towards the completion of the Melbourne building pilot, an additional two floors were leased (Levels 2 and a portion of Level 1). Level 2 has been completed using a traditional ATO approach to work points and provision of meeting space. The fit out on level 1 however, presents an opportunity to trial a flexible work environment (FWE). FWE involves creating an environment that fosters collaboration, personal accountability and flexibility by using more innovative ways of providing fit for purpose breakout, meeting and work space..

As stated, many major financial institutions have embraced the FWE concept over the last few years and based on the success of their implementation Frances Cawthra (CFO) requested PS&ES undertake research through a pilot of this type to determine what the ATO future position should be on accommodation management.

1.1What are we aiming to achieve?

We aim to prove or refute the notion that flexible work environments can provide a level of infrastructure that supports multiple ATO business outcomes. It is also imperative at the commencement of this pilot to recognise that there are potentially a number of management and staff issues that will need to be understood and managed. This could require potential changes to the existing business models to realise the maximum benefits available from changing the way the ATO manages accommodation. Areas to be examined under the pilot include:

• the provision of a range of alternative style of work space that support different types of collaborative work activities,
• increased flexibility in staff choosing the type of work point appropriate to the style of work they will undertake,
• mandatory clear desk policy at COB,
• reduced paper storage and paper consumption,
• A workplace concept which will allow the ATO to manage future accommodation requirements in a manner that delivers on a range of government targets, including improved density and staff working remotely (including working from home e.g. Teleworking).

Our goal is to successfully accommodate a workforce of 45 ATO personnel in a work space that provides 38 work points (0.8:1 ratio). We propose to challenge the need to allocate employees desks and rather, offer a range of different work spaces such café style hubs, meeting rooms or other collaborative spaces together with some different configuration of standard work points. There will also be a need to ensure that the ATO Health & Safety Advisor provides approval to use different styles of furniture after a full Risk Assessment ha been completed.

The availability of ad-hoc and collaborative work spaces will enhance collaboration, increase the flexibility for personnel to carry out their work and accommodate individual work styles.

1.2Outcomes

The pilot will provide work space design that meets ATO business needs and sets the standard for future office accommodation fit outs and refurbishments.

The pilot will also identify learning’s/issues associated with the following ATO Business Model changes:

1. Managers approach to the allocation and management of work to staff,
2. Remote management issues for mangers and staff,
3. IT platform requirements to support a more flexible work force and possible work from home (Teleworking) arrangements,
4. Accommodation infrastructure requirements to support mobility within sites, eg personal storage requirements, how to provide a sense of individuality for staff in the work place.
5. Benefits

The benefits of the pilot will be a range of learning’s across a number of changes identified such as:

• Increased collaboration between staff
• Enhanced flexibility in the work place
• Better use of the work space to support the type of work being undertaken
• Focused storage options, with specific emphasis on implementing and reinforcing the corporate position on Records Management.
• IT infrastructure requirements
• Personal storage requirements,
• Security of individuals property in the work place
• Reduced cost in the provision of workspace.

Maximum flexibility will be provided to the personnel occupying the workspace, increasing collaboration and productivity.

Premium office accommodation will be provided to 45 personnel that nurtures future working styles, increased occupancy (higher density) and reduced paper consumption.

Reduction of fixed property costs will be identified to allow for further decision making about extension of these arrangements more broadly across the ATO.

The introduction of FWE will see a reduction in vacant workspace resulting in a better value for money outcome and assist the ATO to meet occupation density targets set by the Department of Finance and Deregulation.

The fit out will provide a variety of work point styles to suit individual’s working needs.

With the flexibility of ROAM laptops and wireless connectivity to ATOnet, there is the potential for environmental benefits through reduced paper and energy consumption. The flexible workspace will drive greater compliance with the ATO’s clear desk policy and Carbon Footprint reduction targets.

2DESCRIPTION

What are we going to do?

• Establish working groups to participate in the pilot
• Consult with union representatives
• Engage with industry experts
• Identify suitable location
• Identify participants for a pilot
• Partner with EST to facilitate IT infrastructure changes to support the pilot
• Partner with ATOP to facilitate solutions in the people management space that arise throughout the pilot
• Ensure all work spaces are fully equipped with IT peripherals so staff can move freely from area to area.
• Design work space on ‘activity’ basis
• Collaborate with participants and facilitate a flexible work environment
• Nurture a 100% ‘clear desk’ policy
• Indentify a work space booking / allocation system
• Develop protocols for working in an FWE

576m2 of office space on level 1 in the Melbourne office will be fitted out to facilitate the new flexible work environment. The new space will be fitted with a variety of work points and collaborative areas, designed for identified teams and personnel to choose their work space to suit their needs each day.

To ensure flexibility, support is required from EST as personnel will require access to ROAM laptops, docking stations, video conferencing capabilities and wireless connectivity.

Consultation will take place with a variety of different areas

• The occupying teams and personnel
• WHS representatives
• Union representatives
• ICT provisioning.

3KEY DELIVERABLES

Provision of a fully operational work area that meets FWE principles and allows ATO business to test a changed set of arrangements for work point usage..

Development of a new accommodation standard that is innovative and considers future technological advancements while being compliant with appropriate standards, legislative and building code requirements. This will include all WH&S risks being mitigated before the furniture etc is implemented into the work space.

Assess the effectiveness of adopting the FWE methodology into the ATO.

4KEY TASKS

5ICT SUPPORT

Is there an ICT component√ YES

If Yes, describe the nature of the IT activity below.

Provision of mobile computing capability (ROAM laptops) for all personnel is an essential component to support the FWE pilot. All personnel occupying level 1 space will require ATOnet docking stations to access ATO networks. All desks will require identical docking station, and all desktop peripherals.

Wireless connectivity is required to provide flexibility to users.

The availability of scanning would assist in driving down paper usage and retention, with flow on effects for storage.

Dual screens and video conferencing are technology functionality that are being explored and requested by business areas.

The AVO is a potential business area that would occupy the FWE. The AVO has unique server and utility requirements, which is currently being discussed between the ATO and AVO IT areas.

6PROCUREMENT

Is procurement required?√ Yes but the purchase of furniture to support the pilot is sourced and procured by the service provider, DTZ on behalf of the ATO. There is no further procurement required.

If Yes, describe the nature of the procurement activity below.

FWE is a concept being piloted in the newly occupied Melbourne CBD building. Fit out and IT provisioning costs will be absorbed by the Melbourne building pilot.

7MEASURES OF SUCCESS

8Pilot RISKS AND STAKEHOLDERS

8.1Pilot risks

Note: For a more detailed response theRisk assessment and management plan template may be completed.

8.2Stakeholders

Provide a list of key stakeholders. These may include the pilot sponsor, interested parties, contributors, etc. Also include their interest in the pilot’s outcomes and a brief outline of the strategy that will be used to liaise with them or take their views into account. Stakeholders can be internal or external to the ATO. In compiling this list also consider who will be affected by the pilot and how they will be affected.

Note: For a more detailed response, the Stakeholder management plan template may be completed.