We’re standing on the cusp of the Fourth Industrial Revolution. Converging industries and shortening product lifecycles are forcing today’s companies to innovate more aggressively and transform constantly. Driven by rapid technological innovations, our physical and digital worlds are merging. As a result, we’re witnessing seismic shifts in corporate real estate as the way we work is transforming.
In response to the rapidly changing workplace, we have recently unveiled the Future of Work, our fresh outlook on the changing world of work and its impact on the next generation of real estate. Our new model charts a five-dimensional path to a workplace ready for the future and provides the steps necessary for you and your teams to lead through formidable disruption and changes. Explore these five dimensions in the slideshow below to build both a vision and strategy that will help your organization achieve their ambitions.
The tremendous value organizations place on their people is extending into real estate as executives realize it is not enough to give people a job and a place to work—you need to create a space where they want to be. The workplace needs to be more agile to embrace the liquid workforce, one that is highly flexible, mobile, and commands work-life balance.
Human experience is a key differentiator for how people engage with an organization—both strategically and operationally. The imperative for a compelling human experience is to prioritize people first through engagement, empowerment and fulfillment at work to create value for users.
Technology is advancing at an exponential pace, delivering innovations that will fundamentally transform the lives of consumers and operations of businesses. Artificial intelligence, the Internet of Things (IoT), neuromorphic computing and other technologies will enable companies to reinvent their business models and unlock new sources of growth. To successfully navigate these changes that will take place over the next decade, organizations must explore and adopt digitization that will enhance people and enterprise performance through rich data and technologies.
While a powerful digital strategy is a necessary for success in the digital age, that is not sufficient. Organizations must adopt adaptable operating models.
Innovation takes on many shapes and forms, with the goal to just keep moving forward. Therefore, providing an environment that can foster creativity and progress is vital.
Continuous innovation requires advanced thinking and execution across the value chain to maintain a competitive edge and embrace disruption. In the future, organizations implementing continuous innovation will recognize that cross-collaboration with alliance partners drives innovative thinking; advanced technologies increase experimentation; and product innovation, networked solutions and open innovation produce entirely new services and products.
No matter what other innovations, disruptions or changes are going on, achieving operational excellence is a must for real estate teams. Getting the right team to drive excellence is critical. The right team is nimble enough to change its ability to deliver excellence to a rapidly evolving operation with the help of automaton, robotics and artificial intelligence,
High-quality service delivery will ensure that people are protected and that physical operations are effectively managed and fully optimized.
Of the five dimensions, this one has the highest visibility and expectations—and yet, may be the toughest to change.
Financial performance in real estate is usually measured in basic terms. Are we getting the best deal on our lease? Are we minimizing costs while maximizing occupancy? While these are all valid standards by which to measure real estate financial performance, they may undersell the function’s potential value to the organization overall.
Aligning investments and metrics to ambitions and drive cost performance is imperative in financial performance. A successful strategy will employ real estate not just a cost lever, but as a growth lever as well. This in turn will drive not only high performance, but also productivity and experience .
“Organizations must examine how work and the workforce are evolving and embrace the change,” says John Forrest, Global and Americas CEO, Corporate Solutions. “Today’s multigenerational workforce prefers alternative work styles and demands new work environments beyond the traditional ones.” With the world of work changing quickly, organizations must take a visionary approach to compete and thrive.
Human experience, digital drive, continuous innovation, operational excellence and financial performance comprise the five interrelated dimensions in this model. How these dimensions are addressed—and which of these dimensions is given priority—will vary by organization and by industry. Regardless of priority and response, these dimensions are all vital to running a thriving organization.
Interested to find out more about Future of Work? Learn more about our outlook on the changing world of work here.