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A vision for the next phase of Property Asset reform

Today (12-June-2013) Brian Hayes, Minister of State for Public Service Reform, visited the state-of-the-art Vodafone Ireland HQ in Leopardstown, Dublin. This visit was undertaken in advance of the roll-out of the next round of reforms aimed at streamlining the State’s extensive property management portfolio.

This next phase will see the Office of Public Works assume a more directive role in promoting, driving and coordinating property asset management improvements across the wider Public Service. It will comprise organisational Business Plans adhering to Public Service wide space norms and standards, and the OPW assuming exclusive authority for the procurement of Civil Service office accommodation and allocation of office space. During his visit Minister Hayes’ spoke of how,

"The first phase of reforms has been a success. To the end of last year we have made real savings for the taxpayer. My Office has overseen a 20% fall in leasehold expenditure, annual rental savings of €27.6 million, and our property footprint reduced by just shy of 1 million square feet. While considerable, they have largely been ‘low-hanging fruit’. Now we must take a hard and in-depth look at our portfolio and overhaul our entire approach."

Since Vodafone implemented its New Ways of Working approach just over a year ago, it has seen office space and rental/property costs fall by 36% and 30% respectively. While some of the derivative savings and benefits – of centralising over 1000 staff in a modern open plan environment – include printer use cut by half, travel expenses fall by a fifth, and an 84% reduction in storage units. Accompanying Minister Hayes on his tour of the facilities Vodafone Ireland CEO, Anne O’Leary also pointed to the qualitative benefits,

"Before, our teams were physically walled off from each other and often worked in silos. Our New Ways of Working programme and our focus on changing our culture has helped us to achieve a much more collaborative and customer focused workplace."

Ms O’Leary informed the Minister that the upfront investment to implement New Ways of Working has already been recouped from savings in operating expenditure. Thanking Ms O’Leary for the opportunity to visit their HQ Minister Hayes noted that,

"Here today I’ve gained real insight into the potential of a considered approach to centralising services. Not only in terms of making much-needed savings, but the essential role of the work place in improving the quality of public service provision."

 

ENDS

 

Note to Editor

:

·

The total property portfolio (owned & leased) held and managed by the Commissioners of Public Works comprises 2,255 holdings (end 2012) with 635 buildings housing the Civil Service (the "office portfolio"), 840 Garda properties and 780 heritage properties;

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Leasehold expenditure has come down from a high of €130m in 2009 to €107m in 2012 – a reduction of almost 21% in the 3 years to end 2012;

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Total Savings in annual rent as a result of Lease Surrenders since 2008: €27.6m;

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Total floor area of office portfolio has fallen from a high of 950,714m2 in 2008 to 879,742m2 as at y/e 2012 (approx. area surrendered 946000 ft2).

More information on Vodafone’s New Ways of Working,

http://www.vodafone.ie/new-ways-of-working