Understanding the drivers for change

Organisations rarely invest in dramatic workplace change without a compelling underlying reason. Considering the time, resources and potential disruption involved, it’s a serious decision that is always driven to a large extent by necessity.

Workplace change is usually a response to a change in the wider business and the context in which it operates. These changes generally fall into one of three broad categories:

Organisational

• Property drivers drivers

Financial drivers

Your reasons for change may fall into more than one of these categories, and it’s important to understand how these different drivers interact with one another.

Organisational drivers

One of the foremost reasons for workspace change is when the organisation changes, and the current space no longer suits your needs. This can happen when a business goes through a period of rapid growth or downsizing, when a merger or acquisition is taking place, or when the business restructures or adopts new ways of working – such as agile, activitybased or hybrid working.

Mapping the details of your organisational change is vital to enabling you to make an informed decision about how your workspace needs to change. There may be an imperative to move – for example if relocation is an unavoidable part of a merger or restructure. On the other hand, there may be compelling reasons to adapt your existing space – for example when transitioning to a new way of working that can’t wait until the next lease event.

Understanding the details of the required changes, being able to put different needs in priority order, and put a timeline to proposed changes, is the first step in the decision-making journey.

Financial drivers

Sometimes workspace change is driven by financial imperatives. If a business is looking to rationalise costs, evaluating property needs is one way to reduce unnecessary expenditure. What’s most important here is a comprehensive cost-benefit analysis, taking into account all the implications of your decision.

You may assume that moving office will be more expensive than staying put and remodelling, but that isn’t always the case. There may be opportunities to move to a more affordable location that still provides everything you need. On the other hand, you may be able to reduce costs by handing back some of your existing space to the landlord, or even subletting or running a coworking space.

In this case, it’s worth speaking to commercial property agents to find out what your options are, as well as consulting with workspace consultants to weigh up the comparative costs of remodelling your current space versus the move to a new space.

Property drivers

Sometimes workspace change is driven by an external factor – namely, an upcoming lease event. Lease breaks or expiries represent an opportunity for both the landlord and the tenant to assess the situation and decide whether it’s still working for them.

You may find that changes to the property market mean a change in costs going forward, or that a lease break represents an opportunity to renegotiate more favourable terms. You may be prompted to take a close look at how much space you really need, and weigh up whether to take on more, give back some space, or potentially sublet to generate revenue.

In this case, the ideal timeframe to start thinking about your options is at least 18 months before your lease break or expiry – and preferably longer. You will need to take into account the costs and incentives for staying or moving, whether you need more or less space, and any changes being driven by the landlord. It’s also worth taking legal advice as to your rights and obligations.