A Distributed Workplace Strategy Daniel B. Johnson Global Director, CRE Workplace

1. A Distributed Workplace StrategyDaniel B. JohnsonGlobal Director, CRE Workplace

2. Agenda • Business Context • Business and functional units engaged and why • Solution • Support Resources engaged • Interest, acceptance, ie cultural impact • Successes • Obstacles • Next steps

3. Modeled Headcount Growth by Workforce Context: Dramatic growth and new businesses 103,300 87,400 76,300 70,580 Enterprise Services Solutions Consulting FY01 FY02 FY03 FY04 FY05

4. Our Global Real Estate profile has shifted dramatically in the past year….by design and by organizational change Global Real Estate Commitment profile (occupied space)

5. The actual profile of space varies significantly by GU – dependent upon workforce profile and response to the blueprint ELA No Am Asia

6. Context:The Facilities & Services Blueprint:The reasons behind the plan Our cost structures must shift to allow us to remain competitive. • Facilities & Services represents Accenture’s second largest cost basis (after payroll). • A major driver of the Blueprint was to maximize the leverage we get from our G&A spend while continuing to aggressively lower G&A spend since the IPO. • We need to improve delivery to: • Better manage costs • Dramatically reduce project lead-times • Better leverage facilities • Introduce new models for delivering required support services. • We need to support aggressive growth in client outsourcing engagements, BPO businesses and Solutions Delivery work, while continuing to manage/optimize our current portfolio

7. Business units engaged • Global CRE TeamDesign Facility response to new business model (create the “blueprint”) • Local Facilities & Services LeadershipImplement local in country responses to reflect “blueprint” requirements • CIOIdentify impacts of emerging technologies, and deploy scalable systems/soluitons • Human ResourcesImplement new Workforces for Accenture • Business ArchitectureDefine unique functional needs of businesses • Global FinanceIdentify operating cost targets and track impact on G&A costs, link these targets to business margin requirements

8. Accenture’s evolving workplace strategy responds to these new ways of working and incorporates thoughtful real estate management. Traditional Workplace Strategy (Pre-1995) New Workplace Strategy 1995-2002 Flexible Workplace Strategy (Evolving) Work Characteristics Process Oriented Isolated/Cellularised Static Individuals Lack of flexibility Fixed Workforce Project Oriented Group / Interactive Community Based Increasing flexibility Mobile Workforce (emerging) Solutions Oriented Dynamic mobile teams with physical and virtual community support Balancing physical / virtual work Real Estate Characteristics Fixed Lease Single Location Mixed Branding Local Application (higher costs) Consolidated Lease Office / Client Site Branded / Functional Global Standard (higher costs) Scalable leases Mobile workforce Diversified portfolio Flexible / functional Local interpretation of standards w/in benchmarks (reduced costs) Metric Characteristics ~250 RSF/worksetting 118 RSF/Person ~50% Utilization ~200 RSF/Worksetting 100 RSF/Person 67% Utilization ~120-150 RSF per worksetting 65 RSF/Person (target) 85% Utilization (target)

9. Research conducted with Accenture people has identified 4 workforce priorities: Solution:Accenture’s workplace strategy and the Blueprint A successful work experience for all of our workforce is supported by the integration of each of these elements. Workplace Tools & Technology Services • Accessibility • Clarity • Empowerment • Community People Geography& Culture The Accenture Workplace Strategy

10. Typically Fixed Costs Fixed or variable costs No direct cost Solution:Workplace blueprint – a diversified portfolio Our new workplace strategy responds directly to the workforce model, reduces costs and wherever practical will shift from fixed toward variable costs to reduce our long term commitments. Emerging 1995 to 2002 Increasing remote working Client Site Client Site Satellites Large MetroCenters Delivery Center HUB ServiceCenters BPO Client Image $$$$ $$ Long term, fixed cost with limited flexibility Careful integration of fixed, variable, shared and no cost facilities

11. Solution:Workplace Blueprint – Six Managing Principles Differentiated Real Estate Portfolio • Facility responses designed to support different business requirements • Portfolio and its design/specification provide different price points • Acknowledge local needs and unique markets • Portfolio is more flexible and scalable High Performance Workspace • Facilitate interaction and knowledge exchange (face to face and virtual) • Foster and support collaboration and community • Easily reconfigured • Provide employee comfort, safety and security • Respect local culture • Respect work/life balance through remote work opportunity Right-Sized/Right Priced • Increase density, higher occupancy levels (80%+ target) • Balance real estate costs with need to expand/contract • Leverage procurement strategy • Increase standardization and focus on functional design New Technology and Support Models • Focus on self enablement • Easy access anywhere, anytime • Migration to internet based technology models • Shift investments in technology toward client based work Flexibility • Enable nimble adjustments of space to better align with business changes • Easily adjust to support different work styles • Increase flexibility and creativity in real estate transaction terms, financial engineering and design standards to respond to work style and demographic changes Best Practice Delivery • Agreed standards and consistent design guidelines • Reduce project time and costs • Clarify roles and responsibilities • Define methodology and provide easy access to tools • Manage procurement to optimize local/global needs • Maintain and update, including “Lessons Learned”

12. ClientSiteWork (SBC) Typically Fixed Costs Fixed or variable costs No direct GS cost ClientSiteWork (SBC) Remote working Equitable GS & ProjectWork Georgia Pacific ProjectWork HUB Peachtree Center FutureSatellite Case study – Atlanta Relocation Past Today - CENTERGY • Atlanta Facts • 1200 personnel using office space • 1600 personnel staffed on the SBC engagement • 167 Enterprise – 14% (33 EA’s) • Current utilization is 62% (378 out of 607 work settings in use) • 135 project seats • 62% of personnel live north of downtown • Average commute time to downtown is 30 min • Real estate cost differential between downtown and northern perimeter is 10% • +/- 50,000 RSF hub; opportunity to add a satellite if needed • Term of lease for project seats coincides with client engagement commitment • Enterprise workforce teleworks on average 3 days per week (excluding EA’s) • ~ 435 seats (300 hub) (plus 135 project seats) • ~150 SF/worksetting • $2.1m operating cost • Leverage of Centergy • Originally 186,000 RSF; reduced to 143,000 RSF • Enterprise workforce is primarily resident • 605 worksettings • 240 SF/worksetting • $5.3m operating cost

13. Obstacles • Wrong Space, Wrong Place, Wrong Price (Fixed Cost Portfolio) • Limited truly variable cost alternatives in the market place • Ability to anticipate the impact of emerging technologies • Traditional ways of procuring real estate are out of sync with the changing nature of the global business environment. • Cultural Readiness (NIMBY?)

14. Improvement* Headcount 45% Gross Operating Costs 16% Gross Operating Costs as a % of NR 32% Net Operating Cost/Person* 26% Square feet Occupied 27% SF/person 29% Utilization of space 18% EAs per executive 43% Office services staff per person 40% SuccessesF&S blueprint has enabled us to deliver material savings and positions us for the future Facilities and Services is a local provision of services in support of our people. We represent 30% of our G&A expense. F&S have reduced their operating costs by 16% over the last two years and reduced our GS real estate holdings by 1.7M SF. The total cash recovery over the life of the leases we have vacated is in the order of $375m * Headcount less Services

15. Interest, acceptance Global Requirements Local responses • Getting the most out of our Real Estate • Leverage of global and regional procurement contracts • Requirement for flexibility in real estate and delivery models • Leverage of Workplace Design Standards & Guidelines • A service delivery model that recognizes and incorporates a shift toward a shared services and e-support. • Use of global and regional standard tools and reporting systems. • Aggressive worksetting densities and work place planning approaches which best leverage our real estate yet meet country regulations and codes. • Creative “deal structures” with landlords, clients and service providers to minimize capital investment and enhance • Aggressive, but realistic integration of dedicated, shared and e-support solutions to meet local needs. One size does not fit all

16. Next steps • Continue to monitor and manage the portfolio against established targets (Continued pressure) • Aggressively pursue variable space options in markets where we are right-sized • Enhance tools (collaboration technology, etc.) • Programs to evaluate Human Performance impacts • Expect Changes and need for more flexibility

17. Developing a Distributed Workplace StrategyDaniel B. JohnsonGlobal Director, CRE Workplace