Workplace strategy: alignment and optimisation

Across multiple sectors, many corporate buildings that were designed pre-pandemic are out of step with post-pandemic working patterns and practices – most notably, failing to support hybrid workflows. In a recent survey, 92% of UK companies surveyed said they use hybrid work models, yet many still occupy spaces optimised for full-time, in-office work. As a result, poor team scheduling, underutilised spaces, and excess square footage are common features of the modern office.

To avoid these pitfalls and ensure the working environment can support business goals, companies need a robust workplace strategy. Informed by workplace consultancy, a workplace strategy enables businesses to create a workspace that gets the best out of their people, systems, and facilities – and delivers on their long-term ambitions.

What is workplace strategy?

Workplace strategy refers to the process of aligning the physical working environment with a company’s business objectives. It comprises a set of achievable and measurable tasks designed to increase in-office efficiency and effectiveness, and enhance the workplace experience.

A workplace strategy is required in organisations with 250 or more employees. It seeks to support long-term gains over a five-to-ten-year timeframe, setting out how, from a physical workplace perspective, a company can deliver on the goals at the heart of its business plan.

The term ‘workplace strategy’ is often used interchangeably – but erroneously – with ‘workplace consultancy’. And while the consultancy process often helps to shape workplace strategy, they are not the same thing. A workplace strategy, for example, is concerned with a business’s evolution and future plans, with a view to optimising physical workspace in line with specific aims. Workplace consultancy, meanwhile, is focused on the present use of assets and facilities and how these elements can be improved. What’s more, a workplace strategy document should be short and concise, comprising only clear and achievable steps, whereas consultancy reports typically run to hundreds of pages of evidence and information.

The role of workplace strategy

The role of a workplace strategy is to guide interventions today that deliver value over the long term. In this respect, it supports businesses in the present and into the future.

A workplace strategy is particularly crucial for companies where some degree of change is either imminent or in progress. A company might be growing, changing direction, or branching into new markets. It might need to reduce headcount or exercise a lease break. Any of these changes will require a corresponding realignment of workspace and facilities. And a workplace strategy provides the necessary roadmap, highlighting the adaptations required within the physical work environment – for example, increasing office space in certain geographies, reducing allocation in others, reconfiguring layout or sourcing new premises.

Using the analysis and recommendations of a workplace consultant, a workplace strategy will provide a pathway forward during, or in anticipation of, these periods of change. It will help a company ensure it has the real estate and space it needs as the business evolves.

Relocation and redistribution

One of the key considerations within a workplace strategy is whether a business has the right people in the right place. As we know, within a building or department, individuals can be strategically reshuffled to improve synergies and productivity. But talent can also be redistributed more widely.

Once upon a time, companies would look to house all their divisions under one roof in one location. In recent years, the thinking has changed, as distinct talent pools and professional communities have emerged within specific cities and regions. In the UK, for instance, Bristol is known for its creative industries; Manchester for media and tech; Birmingham for professional services. And within London, sectoral districts are well established – the City and Canary Wharf: finance; Covent Garden: marketing; Old Street: creative; and so on.

For a company looking to develop or enhance a particular discipline, a workplace strategist may suggest relocating the relevant department to one of these regional hubs. Or even further afield; in fact, an increasing number of UK companies are now out-posting sales and marketing teams to the US, looking to boost capabilities and capture market opportunity. The idea, once again, is to ensure the right people are in the right place; to expose key personnel to centres of specialism, excellence, and influence, while also accessing local talent to grow that particular resource.

As part of their recommendations, the strategist might also propose an accompanying redistribution of real estate investment, with capital redirected from central assets to the newly dispersed operations.

The benefits of streamlining your workplace strategy

By streamlining a workplace strategy, businesses can drive benefits in a number of key areas, as follows:

Alignment

A misaligned office is a misfiring office. Through a robust workplace strategy, a company can ensure its real estate is aligned with its working model, and with the key objectives of every modern enterprise: operational cost reduction and productivity increase. As seen above, alignment is also about location; a streamlined work strategy helps to ensure that teams are located in the cities, regions and countries that will provide the best chance of business success.

Market knowledge

Market knowledge underpins every good workplace strategy. What kind of support is available for businesses in certain geographies? What does the supplier network look like in Eastern Europe or Southeast Asia? Through market knowledge, strategists can advise how and where businesses will be best supported. And they can provide insight into travel time, logistics and other on-the-ground realities that may impact business costs. As seen, they will know where specific talent pools can be accessed to support growth in key areas. They will also know the local ‘movers and shakers’ and the ripple effects of recent corporate developments – all of which makes for a deeply informed workplace strategy that can deliver long-term value.

Best fit

A workplace strategy helps a company identify the best fit in terms of its physical work environment. Firstly, this assessment relates to property size. Does a business have the right amount of space for the activities it needs to undertake? Is more space required? Or is excess space leading to inefficiencies, waste and runaway costs?

Best fit also relates to property type. Not every business needs a Grade A office. It might be that adaptable retail space is what’s required, or a co-working space with desk rental, or a creative collaboration hub. There are numerous workspace typologies available – it’s the role of the strategist to determine which will best suit the working model of the company in question. As part of this process, the strategist may apply what’s referred to as the Goldilocks Principle – determining whether the type and amount of workspace is too little, too much, or just right for their client organisation

Increased value

An effective workplace strategy delivers value in numerous ways, which are often thought of in terms of ‘hard’ and ‘soft’ value. Hard value is about enabling a business to achieve return on investment (ROI). Investment in real estate is typically a significant portion of a company’s annual operating budget. Boosting efficiencies, reducing waste and optimising productivity are therefore key strategic focus areas, designed to increase value and returns on workplace investments.

Soft value, meanwhile, refers to improvements in company culture achieved through strategic interventions – for example, better connection, communication, engagement and enhanced workplace experience. But these are not mere ‘intangibles’. The drivers of soft value ultimately create a better functioning work environment, which in turn boosts performance and output, generating measurable financial gains.

Time efficiency

Companies often want to implement change as quickly as possible. But a good workplace strategy will propose a more measured timeline for delivery. Research may reveal there is in fact more time available for design or relocation, helping to pave the way for a smoother change programme. The workplace strategist will model and budget proposed changes, assessing predictive inflation rates and determining the optimum moment for proposed interventions. All of which makes the process much more time efficient.

Time savings are also achieved through strategic and targeted property searches, which are made possible by having access to the right property agent or leasing agent. Conversations with these and other stakeholders can ensure that searches are truly refined, based on a company’s needs. This will avoid multiple misguided visits to ill-suited premises, saving time for all involved.

How is workplace strategy informed?

There are a number of processes and resources that inform a workplace strategy. These are:

Reviewing the workplace consultancy report

The process begins with an in-depth review of the workplace consultant’s report. The information contained in this document will provide a detailed understanding of a company’s physical assets and facilities. Full of valuable performance data and observations, the report helps the strategist gain insight into what works and what doesn’t.

It can be useful for the strategist to review these findings alongside a company’s Head of Workplace, who will have access to employee sentiment surveys and feedback documents. These materials will reveal how people feel their workplace is performing, providing further insight to help shape the workplace strategy.

Undertaking a commercial property review

A commercial property review provides access to the numbers around the spatial allocation, size, and scale of a working environment. It provides factual detail on square footage, lease breaks, and rental agreements, as well as more circumstantial information, such as how well building stock has been maintained.

The workplace strategist will also assess commercial property data within the broader market context. They’ll consider real estate trends, macroeconomic conditions, and what other corporate tenants are doing. Are companies on the move? Is a landlord looking to sell? This bigger picture will help them determine the next best steps for the company they’re advising.

Re-evaluating the company’s five-year plan

As we know, a workplace strategy needs to align with business objectives. By evaluating a company’s five-year plan, a strategist can identify which proposed changes can best support business needs and provide a corresponding order of priority.

This process helps to align spatial designs with long-term business goals, with headcount typically being the principal consideration. A strategist will map a company’s headcount growth scenario, from remote-first models to five-day-a-week in-office mandates, taking into account role profiling variations and geographic expansion.

How to build a workplace strategy

A good workplace strategy starts with the answer to the problem it seeks to resolve. It then works backwards from this point to explain how and why key conclusions have been reached. This process should naturally illuminate the key steps that need to be followed to achieve the described resolution. In this way, a workplace strategy is built in reverse order to a consultant’s report, which typically presents the problem first, followed by evidence, observations and recommendations.

The strategy is developed by pulling together the actionable insights gathered from the sources described in this article – from the consultant’s report, the business plan, and the strategist’s own market knowledge and research. The strategy is also reviewed by the company’s Board or C-Suite execs, with their own inputs incorporated before final approval is given. In this way, the strategy is a priority document backed by senior leadership, reflecting its importance in a company’s evolution.

Who’s involved in the workplace strategy?

There are a whole host of individuals involved in the formulation and implementation of a workplace strategy. These include:

• Workplace consultant: undertakes the initial workplace review and produces the report that informs the strategy.
• Property advisor: advises on building sales, property searches and leasing arrangements, handling all enquiries from potential buyers and tenants.
• Project manager: manages the physical build and/or redevelopment process, linking with the fitout contractor and other key suppliers.
• Legal firm: helps consultants, strategists and clients navigate regulations and laws relating to organisational change, workplace compliance, risk and duty of care.
• Tech consultant: advises on the tech infrastructure and assets required to support the workplace strategy and deliver on business objectives.
• Furniture supplier: provides guidance on furniture specifications and sources the items required to create functional and aesthetically pleasing workspace.
• Fitout contractor: transforms empty or existing workspace into a fully functional, designed and ready-to-use work environment.

As mentioned, some of these individuals will be consulted during the creation of the workplace strategy. The strategy itself will also reference these and other key players, detailing when their skillsets and specialisms will be required to support the implementation process.

How to start a workplace strategy?

At WRKPLC, we help businesses build winning teams to develop and deliver workplace strategies. Building connections, joining the dots, we are your workplace advisors. We provide expert guidance and bring in reliable project partners when you need them most. Wherever you are on the workplace journey, our recommendations are designed to help your workplace evolve.

Get in touch to find out how we can improve your workplace strategy

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