Aligning People, Place & Purpose with Shelley Boland of Standard Chartered

Speaker A: Welcome to the Purpose of Place podcast. I'm your host, Despina Katsakakakis, and I'm delighted to have with me today Shelley Boland, global head of corporate real estate and services at Standard Charter, where she overlooks and an enormous portfolio of about 10 million square feet, including, uh, offices, data centers, retails, a lot. So Shelley, welcome to our podcast.

Speaker B: Glad to be here. Thank you.

Speaker A: I think, uh, it's an incredible moment for Standard Charter because you're really redefining the client and employee experience and you've gone down the road of really restructuring the bank in integrating strategy, people, real estate and brand functions. What's driven this shift and what are you aiming to achieve with it?

Speaker B: Yeah, look, thanks for the question. I think, um, majority of the corporate real estate, uh, services teams traditionally sit in a COO or CFO function. And while we don't, uh, not work with those groups, the bank has made a conscious decision to bring together all of the teams that really touch people, places, partnerships, purpose, and look at this through not only an economic lens, but impact and impact around, largely around that brand equity. And that's not just, you know, the visuals of the logo, but it's about the employee experience, it's about the client experience and how we look at productivity. So our new function that's come together, uh, is sitting alongside with human resources, corporate affairs, supply chain and others. And it's the teams that are really going to lead how we look at identity of the bank, how we define the culture of the bank and how we ultimately deliver experience. So it's a really exciting time, but it doesn't take away from the fact that we still have a number of economic outcomes to deliver when you look at the bank's results. But it's far stronger a team that's interlocked to deliver across that experience lens and impact the bank. So that change happened, uh, probably about 12 months ago.

Speaker A: I think that interlock is really significant because it acknowledges the impact that real estate can make to the business in a much more tangible way. And it allows you, of course, to be a true partner to the business.

Speaker B: Yeah, and we're sitting the same function as the bank strategy team. So you could look at the areas I just described as enablers of that strategy, which is fair to say, but having a seat as we're co creating that strategy, it means you can help shape it. So I think that's where our team and our function and my role, with the support of my peers, has been able to take that step forward to how we shape the bank strategy, not just execute it.

Speaker A: And hugely different to the historic role of real estate, which you could say was very much a kind of reactive order taking role as opposed to that upfront look.

Speaker B: I mean we are still a, uh, large percentage of the bank's cost base of course, as tech has his people. So as I said, there's always a economic element to that and we need to manage in an efficient way. Um, but it's recognising that now there's a more balanced view around economics and experience and putting the right teams together that can take uh, a different approach to that.

Speaker A: Well, in that context of transformation, what do you see the changing purpose of the office?

Speaker B: Well, I think it's probably quite similar to a lot of your listeners who are occupiers. I think for us, the office where we're supporting almost 90,000 colleagues across 50 plus markets, it's very much shifting from that amenity focused workplace and it's all about productive environments and that also importantly continue to prioritize wellbeing, uh, and the experience, as I said, of those colleagues. And in a hybrid environment, that's not just when you're in the office with us, but you have a really strong and rich experience when you're working remotely. So therefore you can look at, you know, the role of cress as continuing to be the driver and the shaper of determining what those spaces look like and that are truly meaningful for people and therefore for us you can see how we can play an active role in how engaged our uh, employees are, how productive our employers are and ultimately how proud they feel to work at Standard Charter.

Speaker A: So very much shifting into people focus as opposed to thinking about real estate as bricks.

Speaker B: And yeah, I mean, I can't remember the last time we had a conversation about a cost per square foot or things like that. We are starting to move into metrics that matter, uh, which are around experience and productivity and the investment has to be a tangible result around that.

Speaker A: So people obviously a, ah, critical priority. But also what's fascinating is that you have very actively looked at what role real estate can play on embodying the bank's brand and values. Tell me more about that.

Speaker B: Yeah, look, if you look at the brand value of any organization, there's an element in that brand value that relates to the physical embodiment, whether it's a workplace, whether it's a retail outlet, whether it's the smile and the experience uh, you have with a guest relations host. So I think again the fact that we can work so closely with our brand and marketing team, we've been able to shift the thinking that this office is much more than just a location. It really brings to life that brand and purpose of Standard Charter. So for us it's really making sure that whether you come into a retail outlet, whether you come into one of our offices, that you get a sense that it's far more focused around Standard Charter's brand. You get a sense then about what our corporate purpose is and the narrative and then also you're experiencing that through the services that meets your expectation as personalized to what you're expecting. So for us we see the workplace as a huge opportunity to really make an impact on that brand value and we are upgrading that identity across, you know, all elements of the office. It couldn't be more timely because the bank's been very open around the fact that our strategy is to pivot towards the affluent and really that private wealth customer and really expose the cross border talent that we have given. We offer, operate in 50 plus markets. So what more could you offer than 1300 locations around the world to be that brand ambassador along with a team of, you know, tens of thousands, whether it's the guest relations host or the security guard to make you really understand the purpose and the identity of the bank. Uh, so you'll see this year our team is working far more in collaboration with the brand. Uh, whether it's the marketing, whether it's the physical space design, whether it's actually the, the uniforms that we wear and we, the Standard Charter scent when you come into our guest relations. So every moment that matter, you will pick up that purpose and brand identity of Standard Charter.

Speaker A: Fantastic. So very much this whole hospitality, very much m, um approach to real estate.

Speaker B: Yeah, it's, it's, I suppose we're dealing with an affluent level client and we're dealing with, you know, corporates. And that level of detail is something that will differentiate us as uh, best in class.

Speaker A: And how do you approach the integration of technology in those environments in both the office and the retail environments as part of that platform that allows you to deliver these different experiences.

Speaker B: So I think the digital experience um, is obviously something that's evolving for us. If I think of Branch as an example, as we move to a more integrated sales and servicing model, that the vast majority of your transactions can be done digitally. What it means then is the purpose and the role of the branch is very different. Yeah, there's still an absolute role for the bricks and mortar in our retail plan, but it's there as a Value add to the relationship manager to the affluent client. And we've got to integrate the digital transaction with the personalized and curated service that you want at that end of the market. If I think of office, we want it seamless, you know, from your arrival through to your fond farewell, that you can manage your day through a digital experience. I think it's fair to say that from an industry perspective, there's areas that we really need to improve on and this would be something that we would be working with our partners over the next year to really learn from. But there are some organizations out there that are really doing this very well and we want to learn from them and really make sure that that experience is something that's quite seamless. It's almost. You don't notice it and if it's, uh, not there, you very much notice it.

Speaker A: It's that frictionless quality that, yeah, as you say, you notice it if it's not there. It's interesting because I always say that in my career in real estate, the last few years, the most exciting part has been the technology integration into buildings. The ability to have real time data to create that customization that you talk about, but also to be able to tap into something else that I think is really important for you as an organization, which is the whole monitoring of energy and delivering sustainability. So, you know, I think sustainability has been a key differentiator for the bank.

Speaker B: Yeah, look, I think, um, I've been pretty public on this in terms of I gave the team, uh, you know, a bold, uh, ambition a couple of years ago that in order for us to really leave our brand promise around a sustainable future, I felt it imperative that, uh, our corporate footprint should embody those values. And therefore we set ourselves a aspiration to be net zero across our portfolio by 2025. Uh, so we're on the journey as we get into the last half of the year. So this is where we, um, are measuring our scope one and our scope two emissions. And there are parts of scope three that clearly we're accountable for, but in some cases a little harder to influence. So for us, um, we've also extended that in terms of waste. We want to get to a point to achieve at least 90%, uh, avoidance of landfill by 2030. And we do recognise that in some markets access to green energy is really limited. So while the vast majority of our portfolio, we can deliver on that net zero aspirations through the site selection and the way we operate the building, there are certain markets where we'll need to supplement that. But we want to do it through very high quality EACs, for example, and over time we hope that that last mile is reduced. So it's something that we think about. When I am looking at site selection, whether I'm doing a fit out and taking obviously an upcycling approach, whether I'm thinking about how I operate the building and also then what's the most appropriate way to offset that residual. So um, it's part of the upfront dialogue in terms of our corporate real estate strategy.

Speaker A: So you're embodying it across every decision you make in the real estate place.

Speaker B: I think you have to because we want to take an informed decision upfront so we're not adding to the problem. So at least then if we find that there is a gap we need to close, maybe on the site, maybe in that market, we can ensure that we are putting uh, a sustainable model in place to try and manage that until we are at the point where that offset can be something that we can pull back from.

Speaker A: Well, the thing that it makes me of course think about, as I hear you describing both your changing priorities and ambitions is how have the last few years changed the expectations that you have for, from your landlords?

Speaker B: If I look at our uh, colleagues expectations now, it goes back to that experience and productivity element when they're in the environment and therefore these elements around well building diversity, uh, and inclusion, flexible um, design, the ability to be quite agile in terms of how we fit out a space that you know, warm welcome and a fond farewell. These are things that we are working with landlords to make sure that they are part of their locations and the green elements that I talked about and then together if those, if there is gaps then we can work on that, you know, as a partnership, so closer partnership. So we use well equity rating for all of our buildings to make sure that we are looking at the highest standards in terms of wellbeing. We also also ensure that all of our buildings are LEED certified. So again I'm wanting to drive the sustainability elements and then annually we survey all of our locations with the Leaseman index to make sure that we're meeting expectations when it comes to productivity. But also how, what's the sentiment around that workplace? So that's very different from I suppose when I first started in real estate which uh, was all about sort of desking and you know, more basic things. Now, now it's much more experience led. Mhm. And I would suggest that's the same for the 600 plus branches that we offer as well. You know, you want personalized and curated experiences. You've got to differentiate yourself in a really complex market. So understanding that client need, marrying that up with real estate data is, you know, hugely powerful for us.

Speaker A: So that defendable way of making decisions of what you invest in to make the most impact.

Speaker B: Yeah, I mean we had uh, a way that now that we've got the Leaseman data and working with partners such as Cushman's, I can look at the Capital Works program and give a data led discussion about where we have invested in square footage in terms of upgrades or improvements. You can start to see that pride, that productivity and employee satisfaction increasing. So it makes it a far more tangible conversation when it comes to an investment in dollar which clearly is scarce at times.

Speaker A: Absolutely. And I think it's fair to say, and I'm very excited about this, that um, we're working together at the moment to I would say solve the holy grail of the industry which is how do we move from cost metrics to really looking at the return of investment on people, engagement and business outcomes. And I think this is fantastically exciting because uh, it really hasn't been done before.

Speaker B: But not to let our secret out too early, but the partnership with Cushman's to really challenge, you know, the productivity metrics and how we're looking at that, whether it's a shared services environment, whether it's a trading floor and more recently we've done um, a piece of work on a retail bank. I mean this is starting to put something tangible around that productivity question. Whether we're going to solve it or not. Not sure. But I definitely think the experiments we've been running is giving me a far more informed decision about where we've invested, what we've seen both in productivity but also then the colleague experience or the NPS from our clients. Yes. So watch this space the opportunity you

Speaker A: now have to align real estate and people data. What level of impact does that have on your ability to really attract and retain the best talent?

Speaker B: I think it goes back to sort of the first point where we made a strategic decision in the uh, organization to bring together people and places. And as a result in partnering with our colleagues in hr, we've been able to build a far more integrated data led view of our workforce. So what we've been able to feed in is office occupancy utilization. Human resources are giving us the workplace data, ah. In terms of the um, uh, talent, the locations, the skill sets we're after. And together uh, it comes up with A platform that really allows us to plan that workplace, the future adjustments where we need improvements and get down to what is it then that we're missing if we were to hire that top team. So the integration of that has been a number of results. We've been able to optimise the space based on employee preferences and behaviour. So for example the ability to look at the tasks being done and adjust the uh, workplace around that or the design, uh, we've been able to improve the experience where we're getting real time feedback on services that we provide. So for example, you know, the basic things such as food and beverage and wellbeing, we've been able to tweak those based on workforce preferences. And then where we're going into a new market or exploring a new business using data and insight such as um, Cushman Wakefield, we've been able to then work with HR to say where are those skill sets?

Speaker A: Mhm.

Speaker B: Where do those skill sets actually locate? In a very globally diverse world, it might be different to what it was before and therefore our uh, location strategy is far more strategic around the skills base that we're looking for, the talent attraction and retention than it was just an independent real estate. So I think at the end of the day, you know, HR and Chris have you know, got the same goal around that experience employee value proposition. And we want to create environments that you know, really inspire, uh, maintain and build the culture and keep the talent engaged on board but also uh, you know, be able to attract that.

Speaker A: So what's really fantastic about what you've described is that you're really describing mapping the real estate life cycle to the talent life cycle all the way from where do you find the talent to how do you inspire, ensure they're productive onboard, um, them and create the right level of engagement and experience. Which I think is wonderful because I think that it's never been so clear previously the codependency if you wish, of

Speaker B: those two elements and things are different now. I mean the ways of working has changed. We think post Covid there's a more balanced view that people have around where they work and live. And so some of the markets that traditionally we would have looked at for certain skill sets, the different now, you know, some of we're doing a big program across the bank now it's all skills based hiring and instead of us sort of jumping to a conclusion about this market will give us that skills. We're working from that workforce strategy, coupling that with the skills that we're looking for and maybe they're not in Asia Pacific, maybe they're now in Europe, maybe they're in, in a completely different model through a managed service with a partner. So we're really challenging ourselves now that we've got that interlock between the workforce data and insights and then actually a strategic location choice.

Speaker A: So with all that background and experience in transformation, what advice would you give the C suite to support the kind of changing expectations, uh, and priorities to really deliver the most effective business outcomes?

Speaker B: Well, I'm lucky enough um, that our group management team are really engaged in the work that our function aligned with strategy and talent do. So the conversations that we are having is around probably three key areas. Uh, I think there's a desire and a support around introducing the tools and the systems to embed this culture of ambition and high performance. So for us it's really time to turbocharge what we want to do in terms of driving business growth, how we want to nurture innovation. We're going with a client first mindset. Every single time we're thinking about our services in terms of do we build it, do we buy it, do we borrow it or do we bought it using AI? I think of the future. So these tools and systems would uh, be a primary um, advice point number one. The second would be experience. So we need to be in control of those levers that impact both the colleagues, the 90,000 on colleagues at uh, Stan Chart, but also more importantly the client. And that's whether it's in the office, whether it's in the retail outlet. We need to think through how we make work happen, policies, procedures, standards. So it's, we definitely need to drive. The second point is being control of that experience. And then the last one is to make sure that what we do is organization wide, enterprise wide transformation. So you've got to have that workforce transformation plan, but it's got to be able then to shape the business outcomes. Now why am I saying that? Because, uh, maybe to my earlier point, sometimes it can be done in isolation. And these organizational wide transformation plans, if they don't have an interlock across each of the functions and businesses, it will be challenging to redesign the work. It'll be challenging to create the environments that enable this high performance. You'll probably have a shift in culture in terms of consistency and you'll miss that continuous improvement of elements. So that would be my three the tools and systems drive the experience how you want it. And you've got to make sure that it's critical that it underpins an enterprise wide transformation. Versus something that is individual and siloed.

Speaker A: Those are amazing insights. But I particularly like the point you made at the end about the interlocks. Because this issue of silos, let's call it getting in the way, is something that we see in the real estate industry within corporations. And the ability to create transformation requires that interweaving, that interlock that you describe so eloquently. Shelley, you've been in a very privileged position in that the bank has undertaken this transformation and created this integrated approach. What advice would you give to heads of corporate real estate who are actually trying to navigate how to engage their other operational stakeholders to deliver more effectively?

Speaker B: Yeah, look, good question. And I must admit I've learned from a number of experienced real estate leaders that are in the market. But I would probably focus on three areas. I think the first, it seems obvious everything that you deliver in terms of your agenda has got to be linked back to delivering and shaping that enterprise strategy. So if I look at the four, uh, strategic pillars we've set up around office transformation, branch transformation, our uh, commitment to sustainability and delivering our services every day, every one of those activities is there to shape the strategic agenda for the bank, which is I want to be best in class in terms of customer service. I want to have an employee, uh, value proposition that differentiates me in the market. And clearly there's some economic outcomes that we need to deliver. So that way, when you're looking at your book of work, it's really easy to prioritise, pivot, in some cases, stop doing things because it's got to be ruthless in terms of prioritisation against shaping the business. The second part is don't try and do it all yourself. For many people who know me, my background's quite varied versus a specialist in real estate. So I am very open to bringing expertise in and creating an ecosystem of partners and making sure that the standard charter team is focused on what they're good at, which is stakeholder management, the business acumen, clearly the risk in governance and driving that transformation. But we augment that with industry partners like Cushman and Wakefield, like Jones, Lang, LaSalle, Turner and Townsend, CBRE to supplement that. So I can get best in market not only to execute the services, but actually challenge my thinking.

Speaker A: Mhm.

Speaker B: The conversations we have about you saying, actually, have you thought of it this way? And last but not least, it's gotta be a data led discussion. Real estate's so emotive, you know, it can be very um, uh, sentiment driven. So I don't want to take away from that but I need to balance it with insights. And so now the insights if I think of our Leaseman data, if I think of our staff satisfaction, if I think of the work we're doing on metrics that matter in our workplace and retail it allows me then to have a robust discussion about a strategy. But I've got insights coupled with you know that sentiment um, so it's a more balanced conversation and you start to get a history to show a track record. So I would think those three things have sort of been a bit of um a shift for me in the last few years in my role but it's all about business strategy led client first ensuring that you create an ecosystem of industry expertise and also data and insights. Make sure you've got that baseline to really guide you.

Speaker A: This is super inspiring Shelley, thank you so much for joining us and thank you for sharing the SC transformation journey.

Speaker B: Thanks for having me. Really enjoyed.