Integrating Cultural Change Management Program With Smart Workplace .

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Civil Engineering and Architecture 8(5): 847-859, 2020DOI: ating Cultural Change Management Programwith Smart Workplace Transformation andRefurbishment Project ScheduleSefik Emre UlukanFaculty of Engineering and Architecture, Istanbul Rumeli University, Istanbul, TurkeyReceived July 22, 2020; Revised August 12, 2020; Accepted August 20, 2020Cite This Paper in the following Citation Styles(a): [1] Sefik Emre Ulukan , "Integrating Cultural Change Management Program with Smart Workplace Transformationand Refurbishment Project Schedule," Civil Engineering and Architecture, Vol. 8, No. 5, pp. 847 - 859, 2020. DOI:10.13189/cea.2020.080512.(b): Sefik Emre Ulukan (2020). Integrating Cultural Change Management Program with Smart WorkplaceTransformation and Refurbishment Project Schedule. Civil Engineering and Architecture, 8(5), 847 - 859. DOI:10.13189/cea.2020.080512.Copyright 2020 by authors, all rights reserved. Authors agree that this article remains permanently open access underthe terms of the Creative Commons Attribution License 4.0 International LicenseAbstract Amongst the current trends in commercialreal estate and workplace solutions sector, smart, agile, ordigital workplaces that provide flexible and smart workingenvironments have become more important and preferredsolution. Globally many companies have beentransforming their workplaces into agile workplaces toexploit the benefits including, but not limited to reducingreal estate footprint, sustainable & energy efficientoperations, improving employee motivation & efficiency,and therefore reducing operational costs. The workplacetransformation has a significant impact on employeeperformance and engagement due to the cultural change itbrings along. This cultural change must be well managedacross all phases of the project to ensure the success of theworkplace transformation. This success criterion is animportant performance indicator which, is generallymeasured as user experience upon completion of theproject. To effectively manage this process, culturalchange management activities should be integrated withthe project, design & construction schedule and linked withthe project activities. The objective of this research is toprovide a framework program for the cultural changemanagement activities that need to be managed as part ofthe office transformation and refurbishment projects andintegrating them with the project schedule. A focus groupstudy method has been conducted to achieve the objectivesof the study. Detailed findings, key change managementactivities and the framework program have been providedin this paper.KeywordsOffice Design and Construction, ProjectManagement, Cultural Change Management, WorkplaceDesign and Transformation, Project Program, SmartOffice, Digital Workplace, Agile Workplace1. IntroductionOver the last 20 years, there has been a rapid andsubstantial change in the way that the employees work andthe way that the organizations conduct their business.Major developments in technology and the economy had asignificant impact on this change. As the work styleevolves and changes, workplaces also evolve toaccommodate these changes. Especially with the rapiddevelopment of technology and global concerns such aseconomy, environment and sustainability have enabled thedevelopment of a new type of workplace that is flexible,agile, productive, user friendly, technological and smart.Businesses started realizing the advantages and importanceof transforming the workplaces into an environment thatreflects technologies, new & modern work styles and userpreferences such as collaboration culture [1].The evolution of the workplace and work culture hasbrought several challenges, concerns and risks related withthe human factor due to the major change it involves; suchas risks related with the end-user satisfaction from project

848Integrating Cultural Change Management Program withSmart Workplace Transformation and Refurbishment Project Schedulemanagement success point of view, and productivity issuesfrom a business success point of view.When a Smart Workplace Transformation Project isbeing executed, the project manager and the organizationshould take the impact of the changes in the workenvironment, work model and organizational culture intoaccount, to ensure the transformation project can besuccessfully completed. To manage and deliver theprojects with the highest user satisfaction, workplacetransformation project phases can be supported andimproved by the implementation of cultural changemanagement which also eliminates or reduces theassociated risks.2. The Objective of the StudyThe objective of this study is to integrate the changemanagement activities with the Smart WorkplaceTransformation Project.The study focuses on the integration of ‘ChangeManagement’ activities such as work pattern surveys,workshops, training sessions with the smart workplaceproject management process, rather than the type oftechnologies utilized to transform a traditional office into adigital or a smart workplace such as room finding &scheduling system, smart building management system,etc.3. MethodsTo achieve the objectives of the study, the evolution andthe need for smart workplaces have been reviewed,benefits of the smart workplaces have been summarized,the need for the cultural change management program hasbeen discussed and integration of the change managementprogram with the project program has been achieved byconducting the focus group method. Finally, the outcomesof the study have been summarized in the conclusionsection of this study.3.1. Agile, Digital or Smart WorkplaceIn one of the pioneering researches [2] on the evolutionand the future of the workplace, the agile workplace hasbeen defined as a workplace “that is constantlytransforming, adjusting and responding to organizationallearning” [3]. Bell and Joroff [3] also pointed out that,agility in this context means continuous improvement ofthe work and associated infrastructure, not only the usageof the technology or the physical environment i.e. thebuilding itself.This workplace transformation and evolution have beensignificantly impacted by various factors, such as the needsand the behavioral differences of the generations likemillennials and generation X. This human factor has actedas a catalyst over the evolution of the workplace. Over thelast 2 decades, a vast number of research and studies havebeen conducted to identify the behaviors of each generationgroup and how to adapt the workplace to meet with theneeds of different generations. Some of the researchesfocused on millennials, considering that the millennialworkforce was anticipated to reach up to 50% of theworkforce by 2020 [4], which led the designers andbusinesses to put more focus and priority on adapting theworkplace to meeting the needs of the millennial workforce.On the other hand, recently there are arguments against thistrend claiming that the workplace should be designed forall generations [5], not just for millennials or upcomingnew generations. These studies highlight the importance ofdesigning the workplace in a way that drives the interactionand knowledge transfer between the generations toenhance the productivity of the workforce.As the Industrial Age has transitioned into the DigitalAge, the technology element of the agile workplace hasdeveloped even more rapidly. While 'Agile Office' term hasbeen commonly used by the academic world and industry,'Digital Workplace' and 'Smart Workplace' concept orterminology has also started being used for describing‘digitally and technologically enhanced agile workplaces’.This is mainly due to the breakthrough developments in thewireless communication technologies, digitalization ofdocuments and processes, and developments incollaboration tools and technologies such as, high techaudio-visual tools, internet of things as well as intelligentsystems & equipment such as Smart Building ManagementSystems, that control the building in a way to provide afunctional and comfortable office environment, which inturn improves the employee experience. Utilization ofthese smart technological tools and equipment, togetherwith the agile workplace principles led to the design ofworkplaces being transformed into digital or smartworkplaces.‘Digital Workplace’ term is typically used to describethe workplace as a set of tools that are transformingtowards a digital environment. Deloitte [6] defines theDWP as - “The digital workplace encompasses all thetechnologies people use to get work done in today’sworkplace – both the ones in operation and the ones yet tobe implemented”. Following this definition, they refer totools & technologies such as HR and business applications,instant messaging and emails, social media and virtualmeeting tools. Robertson [7] on the other hand, widens thedefinition of digital workplace as 'holistic set of tools,platforms, and environments for work, delivering in acoherent, usable and productive way’ by adding the‘environment’ into the description. In several researchstudies, authors such as Bakar et al [8] and Williams &Schubert [9] generally focused on the technology part ofthe digital workplace as some of the technology companiesand software developers are using this term to describetheir products or services such as IBM [10], Microsoft [11]and many others. Therefore, ‘Digital Workplace’ term may

Civil Engineering and Architecture 8(5): 847-859, 2020be confused with technology-based work platforms,products or services, in other words, the software andapplication-based solutions. Perhaps ‘Smart Workplace’would be a better way to describe the technologicallyenhanced agile offices as it refers to the agility of thephysical workplace, efficiency-driven processes andextensive use of smart and highly developed technology.Regardless of which terminology is used, in a broadercontext, a smart workplace describes not only somehigh-tech tools or systems, but a holistic perception offlexible, adaptable, technologically enhanced workenvironments and processes that promotes productivity,collaboration and innovation.3.2. Benefits of Smart WorkplacesEconomic developments over the last 30 years havegiven rise to the emergence of ideas and initiatives, such asenvironmentalism, sustainability and cost-efficiency, toname a few, which have contributed to the acceleration ofthe workplace evolution. This evolution andtransformation have not only enabled workplaces tobecome more efficient and productive, but also helped withthe introduction of a new type of business and workplacemodels such as co-located offices where several differentcompanies share the same office or common parts of theoffice, and where the workplace is designed to supportmaximum agility and utilization of technology. While theworkplace and technology were evolving and transforminginto a new model, these developments have encouragedmany businesses to start harnessing the benefits of agile &smart workplaces. Gartner's research [3] - one of theearliest comprehensive studies in this area – pointed outthat some of the multinational companies have alreadystarted transforming their offices in the late 1990s and early2000s.While many of the technology and multinationalcompanies quickly adapted and implemented theagile/digital/smart workplace designs and standards, someindustries or companies haven’t shown the same level ofwillingness or agility to implement the new smartworkplace concept due to various different reasons such as,financial status, culture or size of the company. However,more & more companies are now realizing the benefits ofthe agile/digital/smart workplaces, where it becomes aviable business case, especially linked with corporateresponsibilities and ideals such as sustainability,environment, productivity and profitability. Benefits ofsmart workplace include; Increased employee productivity [12] Increased employee satisfaction [13] Talent Retention & Talent Attraction [14] Improved employee motivation and engagement [15] Increased efficiency by easy access to informationand retaining company know-how resulting withsignificant cost savings and increased profits [16, 17] 849Footprint reduction & sustainability as a result of theoptimized space as well as fewer building materialsand less initial capital investmentCost savings from the lease, maintenance andoperational costsIncreased health and wellbeing and reducedabsenteeism by flexible working and working fromhome [18]Improved processes and employee skills by usingdigital tools and high-tech equipment which alsoboosts creativity & innovationBetter customer service and client satisfaction byhighly engaged and motivated employeesAccording to the studies by Deloitte [6], Avanade [17],Van der Voordt [19], further potential benefits can besummarised as; Higher problem-solving capacity Positive image for the employer Improved accessibility Better teamwork Breaking down silos in the organization bycollaborationWhile the majority of the studies focus on digitaltechnologies needed for creating a digital workplace, it isalso equally important to provide necessary physicalinfrastructure, environment and ‘look and feel’ for thesmart workplaces. This could be achieved with an effective‘smart workplace design’ and an effective ‘projectmanagement’ that, harmonize all those technological andphysical elements as an integral part of the workplace.3.3. Cultural Change Management for Smart OfficeTransformationWhile the work and the workplace are transforming, theworkforce is also changing. As baby boomers andgeneration X are retiring, millennials are taking over themajority in the workforce. According to a report by PewResearch Center [20] based on the US Labor Forcestatistics, millennials have become the largest generation inthe US workforce in 2016 by reaching up to 56%. Thistransformation comes with challenges. The majorchallenge is that organizations and people cannot change asquickly as technology or the workplace.The differences between the generations such as, thelevel of skills and knowledge and familiarity with thetechnology or the way of doing business, create difficultywith developing a workplace design suitable for amulti-generational workforce. This difficulty significantlyincreases during workplace transformations. Employeesmay have a different level of interests, concerns orhesitations for the upcoming changes. In addition to theemotional challenges of employees, a smart officetransformation requires - time, a major cultural change toaccommodate all the changes in the way of conducting

850Integrating Cultural Change Management Program withSmart Workplace Transformation and Refurbishment Project Schedulebusiness, the technologies used in the workplace andfinally, how the people collaborate. Employees areexpected to develop new skills while they are coping withemotional stress and this is where Change Managementcomes into play.Figure 1 represents the Change Curve model developedby Elisabeth Kubler-Ross [21] which illustrates theemotional reaction of people upon experiencing alife-changing event. Once the change starts, then thefrustration and depression cause a major plunge ofperformance and competence within the organization dueto the emotional reaction that the employees experience.To avoid or reduce the impact of the negative emotionalreaction that employees experience when they hear aboutthe upcoming change i.e. the workplace transformation, achange management process needs to be implemented.Change management helps with the simultaneousdevelopment and implementation of the new workprocesses, necessary skills, technological tools, physicalenvironment and the new work culture needed to make aproductive start in the new workplace.One of the critical success factors of the smart workplacetransformation project is to achieve maximum employeeexperience and satisfaction at the end of the transition.Therefore, employee’s engagement, contribution,collaboration and buy-in are vital for a successfulimplementation. This can be also achieved by the changemanagement process.Prosci [22] defines change management as 'processes,tools and techniques to manage the people side of thechange to achieve its required business outcomes'. It isabout managing employee engagement and adoptingorganizational changes in a systematic way. A commonmethod used for organizational change management isADKAR model which is an acronym for each milestone ofthe process, i.e. "Awareness, Desire, Knowledge, Abilityand Reinforce", developed by Jeff Hiatt at Prosci. Hiatt &Creasey [23] define ADKAR method as a modelframework to look into managing individual changes andindividual transitions. As the smart workplacetransformation is more than just an organizational change,it needs to be integrated with the phases of thetransformation program and customized to address thechallenges arising from a complete change of the workenvironment. Therefore, the ‘workplace cultural changemanagement’ efforts should be integrated with workplacetransformation project processes and phases.For this purpose, 5 milestones of ADKAR changemanagement model have been integrated and overlappedwith the 5 basic phases of a workplace transformation andfit-out project. Figure 2 illustrates ADKAR model and the5 simple phases of a workplace transformation and fit-outproject overlapped with Kubler Ross Change Curve Modelto apply them to the Smart Workplace Transformationproject.Figure 1. Kubler-Ross Change Curve Model

Civil Engineering and Architecture 8(5): 847-859, 2020Figure 2. Kubler Ross Change Curve Model applied to Smart Workplace Transformation (Developed by Author)Figure 3. Phases and summary tasks of a Digital Workplace Transformation project program. Subtasks are collapsed due to the size of the program. (Developed by Author)851

852Integrating Cultural Change Management Program withSmart Workplace Transformation and Refurbishment Project Schedule3.4. MethodologyIn order to achieve the objectives of the study, a focusgroup method has been used. However, in order to conductthe focus group session, the framework of the model hasbeen adapted. This framework is based on the modelexplained in the Change Management section of this study,which consists of the integration of ADKAR ChangeManagement model with Kubler Ross Change CurveModel and with the 5 basic phases of a fit-out project asillustrated in Figure 2.For integration purposes, the main project schedule isbased on a real-life example of comprehensive officerelocation and a smart workplace transformation projectschedule. The project schedule has been prepared inReinforce /CloseAbility /ConstructKnowledge /DesignDesire / PlanAwareness / InitiatePhaseMicrosoft Project. The schedule for each phase of theproject has been highlighted in a different color in Figure 3.Including the real estate market search period, allprocess is anticipated to take approximately 500 days. Theduration of the project hasn't been considered as achallenging area and optimization of the schedule could bean area for a future study.Following the creation of the main project schedule,change management activities have been identified foreach phase in accordance with ADKAR milestones whichneed to be achieved at each phase. These changemanagement activities and their purposes have beenillustrated in Figure 4. In order to integrate the changemanagement activities with the work program, the focusgroup interview has been organized.ActivityPurposeLeadership EngagementAwareness for Leadership about theDWP project management processDevelop Basic CM PlanUtilization StudyEmployee work pattern surveyCommunicate Need for Digital Workplace & Change ManagementProvide awareness to leadership team on how the DWP project shall bemanagedDefine Key stages & activities, success criteriaTo determine current use of the workplace, tools & equipmentUnderstanding current work pattern and DW requirementsIT Systems AssessmentEmployee Town HallKey Stakeholder EngagementSelect and Onboard ChangeChampionsEmployee EngagementEmployee Envisioning / Deep diveabout DWPOnboard Change ChampionsDeployment of survey resultsBenchmarkEmployee Envisioning SurveysDefine VisionScope Definition MeetingsEvaluation of current IT systems platforms & tools and GAP analysisCommunication with Employees creating initial awareness EngagementInvolve Leadership team for each stage of the projectSelection of the OCC team to engage/ onboard on R&R ad project nextstepsEmployee engagement to the projectShare potential changes, benefits and uses of DWP with employeesCommunication Plan AnnouncementSetup Communication ToolsDesign ActivitiesDesign IT and Technologic ToolsDesign Review MeetingsSetup Communication ToolsCultural InterventionsWelcome PackImplement IT SystemsMove Day ActivitiesLearnings and Critical pointsPost Move SurveyHypercare for new tools & equipmentReinforce messages & Make itsustainableCM toolkit for Continuous Development& OnboardingOnboarding Change Champions for their roleIdentify organization’s needsDiscover best practices in the market and benchmarkCollect feedback from employees about their dream workplaceDefinition of visionWhat and How would be the new workplace setupSpecial needs by organizationKick-off engagement of the organizationSpecial mail address, NewsletterAction Plan definition with Main initiatives, Positive campaignDesign the tools, equipment, systems, platformsReview designs with teamsSpecial mail address, NewsletterGo Digital (Paperless), Digital Trainings, Move TrainingProvide a welcome kit for engagement and also with neededinformation to a smooth transitionsImplementation of IT systems & platformsDevelop Plan for move day organizationIdentify key learnings & action plansMeasure employee satisfactionSupport employees for the new system & toolsStart Operation & Continue Reinforcing messages,Toolkit developed for future onboarding of new employees and newleadersFigure 4. Change Management activities identified for Digital Workplace Transformation (Developed by Author)

Civil Engineering and Architecture 8(5): 847-859, 20203.5. Focus Group StudyFocus group method has been an increasingly popularqualitative research method not only in academia, but alsoin business as well [24]. The focus group has been definedby Krueger and Casey [25] as 'a carefully planned series ofdiscussions designed to obtain perceptions on a definedarea of interest in a permissive, non-threateningenvironment'. The use of the method dates back tomid-1920's however, it has become more popular withinthe last 20-30 years [26]. This is because the focus groupmethod provides advantages such as; Being an efficient way of collecting a large amount ofdata in a short time [25, 26, 27] Ability to collect particular opinions, attitudes ordifferent perspectives of participants [28] Ability to enable the researcher to attain in-depthinsights into the researched topic [27] Ability to obtain information about their expertopinion from the participantsTherefore, the focus group method has been identified asthe most suitable method for this study in order to obtainexpert opinion on the identification and integration ofchange management activities.Another important point in the focus group method is thesize of the group. In his research, Masadeh [24] hasreviewed and summarized suggestions of some authors andscientists and advised that the number of people in a focusgroup could be between 4 and 12 and in some cases, itcould be even between 10 to 31 depending on the type andpurpose of the study. In terms of the duration of the focusgroup session, Masadeh [24] also summarized the opinionsof various researchers varying between 30 minutes to 3hours.It is obvious that the subject and the objectives of theresearch should be the main drivers determining thenumber of participants and the duration of the focus groupsession for the effectiveness of the study and quality of thedata.4. Findings and DiscussionIn order to achieve the objectives of the Focus Group forthis study and to collect reliable and quality data, 5professionals have been identified and invited to a 1 hour30 minutes session, who have been responsible formanaging workplace fit-out projects, designs, facility853management operations at multinational companies as wellas managing the fit-out operation as general contractors,who have been involved in and experienced withworkplace transformation and fit-out projects. Selectedparticipants have also been involved in the changemanagement activities in such projects. Therefore, allparticipants have experience with the subject. Therefore,participants of the focus group have been invited were; A Project Manager at a multinational real estatecompany, A Facility Manager of a multinational real estatecompany Workplace Designer & Design Manager of amultinational real estate company General Manager of a contractor company whoseexpertise is fit-out and delivery of workplaces formultinational companies Construction Manager and Director of the samecontractor companyUpon development of the detailed project schedule, thechange management activities have been integrated withthe project schedule as a draft version in order to use thetime efficiently during the session. Figures 5-8 illustratethe part of the work schedule and the integrated ChangeManagement (CM) activities. Then the focus group sessionhas been organized where the author of this study acted asthe moderator. Following the introduction, participantshave independently shared their opinions and perspectiveon the project schedule, advised the CM activities for eachphase, recommended necessary changes in sequence andtiming of CM activities and any additional activities thatmight have been needed.During the session, the participants have stressed theimportance of implementing the change managementprocess during a smart workplace transformation projectespecially involvement at the earliest stages of the project.This is because the important strategic decisions are madeand communicated at the earlier stages and a structuredchange management program or strategy wouldsignificantly support the initial activities and increase theeffectiveness of the transformation from the beginning. Ithas been also highlighted that employee engagement at theplanning and design phase is very important in order toachieve buy-in of the employees. Getting the employeebuy-in would significantly improve the success of thechange management process therefore the success of thesmart office transformation.

854Integrating Cultural Change Management Program withSmart Workplace Transformation and Refurbishment Project ScheduleFigure 5. Change management activities integrated with project schedule - Summary of Activities 1-76 (by Author)

Civil Engineering and Architecture 8(5): 847-859, 2020Figure 6. Change management activities integrated with project schedule - Summary of Activities 62-106 (by Author)855

856Integrating Cultural Change Management Program withSmart Workplace Transformation and Refurbishment Project ScheduleFigure 7. Change management activities integrated with project schedule - Summary of Activities 107-171 (by Author)

Civil Engineering and Architecture 8(5): 847-859, 2020857Figure 8. Change management activities integrated with project schedule - Summary of Activities 166-195 (by Author)5. Conclusionsimplementation of the change management significantlyincreased the scores received from user experienceThe processes and cultural change management surveys.activities may differ from one project to anotherOne of the most important outcomes of the focus groupdepending on whether the project will be a workplace session has been the advice from the Facility Manager torelocation or a transformation within the same premises. implement the final phase of the change managementAlso, the scope of the project, the number of process process as an integral part of continuous developmentchanges and the extent of the technology transformation plans of the facilities operation. All projects need to beand implementation will have an impact on the extent of closed out once their lifecycle ends, however, it has beenthe change management activities.found out that the change management process should notAlthough the cultural change management activities end with the project closure and further CM activitiesmay be added or removed or shifted in between the phases, should be part of the standard operating plans of thethe model can be considered as a framework program for company to ensure the transformation is sustainable.the smart workplace transformation project. The timeThis initial report aims to provide the preliminaryspent on the activities may raise concerns in terms of the outcomes of the research. A forthcoming detailed report isoverall delivery date of the project, however, optimizing anticipated to provide further details on the outcomes ofthe duration needed for each activity may be another study the research and details of the model.area. On the other hand, focus group pointed out that if theChange Management activities start on a timely mannerand are coordinated in parallel to the project activities, the Acknowledgementstime impact wouldn’t be cause for concern and thebenefits of implementing change management wouldWe are very grateful to the experts for their appropriateexceed the cost or time impact. Further advice based on and constructive suggestions to improve this template andthe experience has highlighted that successful for the focus group participants for their contribution to

858Integrating Cultural Change Management Program withSmart Workplace Transformation and Refurbishment Project Schedulethe research.The preliminary findings of this research have beenpresented at the 3rd International Conference ofContemporary Affairs in Architecture and Urbanism,ICCAUA 2020This research did not receive any specific grant f

with the agile workplace principles led to the design of workplaces being transformed into digital or smart workplaces. 'Digital Workplace' term is typically used to describe the workplace as a set of tools that are transforming towards a digital environment. Deloitte [6] defines the DWP as - "The digital workplace encompasses all the

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