CREATING THE OFFICE OF THE FUTURE
strategy+business|Winter 2020
In a remodeled world, it is vital for companies to reinvent ways of working.
DENIZ CAGLAR, EDWARD FACCIO, AND ERIKA RYBACK

The corporate office is on the brink of a major renovation. The lockdowns that began in the U.S. in mid-March in response to the novel coronavirus created an extraordinary migration as employees across the country began working at home. People patched together ways to keep going when the lights went off in office buildings, and, for the most part, it has worked: In the June 2020 PwC US Remote Work Survey, three out of four employers called work from home (WFH) a success.

It’s no surprise, then, to find widespread interest in maintaining some form of WFH once the pandemic recedes. Everybody benefits. Employees avoid lengthy commutes and spend more time with their family. Employers have access to talent regardless of location, improve resiliency through a distributed workforce, and reduce expenses by optimizing their real estate footprint. Even the environment gets a break, thanks to fewer people commuting, reduced business travel, and less heating and cooling of office space. The Remote Work Survey shows that 73 percent of employees would like to work remotely at least two days a week, even once COVID-19 is no longer a concern. Similarly, 55 percent of executives are prepared to expand options for employees to work outside the office.

This turnabout in perspectives is striking. The prevailing view just a year ago held up the office as a strategic asset to appeal to a new generation of workers located in urban areas, with open-space designs and room to play. Today, skeptical executives who believed employees could not be productive away from the office have come around, or at least have softened their views, and see that working from home can be effective. Now many large companies from a variety of industries have announced their intent to let employees work from home at least part of the time going forward.

As a flexible WFH model appears likely to become the norm, the role of the corporate office and its physical footprint are coming under scrutiny. For much of 2020, almost all office workers have been working remotely. Will we see the same level of collaboration and productivity when some are in the office and others at home? We’re all leveraging relationships that we have built in the office through the years; how do we build new networks when veteran employees leave and new employees are hired?

The pandemic has shown that the real prize in remote work is not reducing real estate costs — it’s fostering a stronger sense of resiliency. In the future, remote work will also allow greater access to a diverse pool of talent, regardless of where it is located. Our surveys show a small percentage of employees prefer to work remotely all the time, so it’s important to assess what flexibility means for them. Meanwhile, other employees will want to socialize with team members and feel that they are part of the organization. How many people will need a place to collaborate with colleagues in person, and how often?

The answers to these questions will determine both the success of a business and the extent of the physical remodeling that companies will need to do. As leaders think about the role of their corporate offices once the pandemic recedes, they must clearly define the reasons for employees to return to the office.

Four actions that will help companies transition to the office of the future

No solution works for every company. Executives will need to figure out their own path, given the scale of potential changes. But these four steps will help.

1. REDEFINE THE ROLE OF THE OFFICE

Start by defining the purpose of the office in your organization. Go through a careful evaluation of what happens in your spaces. Which activities are valuable enough to keep your people coming in? A significant number of companies outside the manufacturing sector have shown they can work from home effectively, so pinpoint the reasons people need to come back to the office. Indeed, the office may be evolving from a default location where employees go to get their work done to a destination employees visit for specific purposes.

Consider the work that people do. We call this exercise the Six Cs. Each C can be mapped to give employers an idea of physical and productivity space needs.

Creating work products: analyzing data, doing research, processing orders, and writing documents. These “heads-down” tasks are often performed individually, and largely can be done independent of an office location as long as the employee does not require specific equipment or physical documents tied to the office.

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