Workplace scenarios

Workplace strategy and corporate real estate portfolio strategy were once thought of as mysterious concepts to all bar a select few strategists. Now everyone who works in an office not only understands the concept, but typically thinks workplace consultants must be very busy right now. They are right.

In the past, most companies didn’t pay much attention to their office space, but the pandemic has made flexible working normal. Some have even questioned whether they even need to go into the office in the future, and some companies decided to forgo them all together.

However, most companies still feel they need some physical presence but are just not sure what to cut, what to keep and what to introduce. The role of the workplace consultant is to tailor the strategy to the corporate culture (the subjective perspective) and using data to gain an objective perspective.

In responding to our client’s increased interest in developing appropriate workplace and real estate strategies for the post-pandemic environment, Pragma are enhancing its capabilities to address the market challenges in this space. In the first of four articles this month, we share our thoughts on how to build a workplace strategy.

Gather utilisation data
The first step in building a workplace strategy is to gather quantitative and qualitative data from as many sources as possible. At a minimum you need to understand the company vision and existing space utilisation. Prior to Covid most companies would have space utilisation averaging at 50-70%. That means that up to half of the space they were paying rent on was lying dormant at any given time. In the post pandemic world, that number has dipped even lower.

How this utilisation spreads over the course of a day or a week varies widely depending on the nature of the business and corporate culture. From the bell shape resulting from the long weekend effect to a U shape often seen amongst companies with frequent business travel.

Understand corporate culture
Numerous companies are grappling with how to lure staff back to the office. While many corporate real estate executives struggled to demonstrate the office’s impact on staff productivity, now the conversation has shifted. We know staff can be equally or more productive working remotely, but informal mentoring is missing, as are the casual encounters, the pats on the back and all the ineffable moments that form the basis of corporate culture.

Consult your users
While no one wants to be the unreasonable boss who insists on ‘presenteeism’ with all staff working in the office five days a week again, getting the right balance is a tightrope walk that is best navigated with a full set of data. Consult staff, ask them what they want, and chances are you will be surprised – many people are less interested in a gym or a games room but instead prefer amenities that help them do their jobs better.

Landlords and building owners, typically some of the more conservative companies in the market, are in some cases radically addressing their offering to tenants by reviewing amenities and community building strategies. Those that are winning are proactively addressing their occupants needs.

Reflect your brand
The office is a product you need to sell to your clients and to your talent. How you approach future office planning should reflect the same level of thought you put into any other product development process. It is no longer inevitable that people will use the office and forcing people to do so will produce negative responses. How people get their jobs done has changed, which is even more reason for the office to reflect an understanding of this. More than ever the occupier and the building owner need to invest in understanding their customers, the ultimate consumers and users of their product.

Claire Stephens