Part 3 of 6 of the WorkFuture.com.au blog series, “Applying the Kipling Method* to Workplace Transformation."
This blog focuses on “when” a workplace transformation is necessary, detailing my top 5 trigger events. Given the magnitude of such projects, understanding the right time to undertake one is critical. Workplace transformations are significant changes, impacting both the organisation and its employees, and should not be entered into lightly.
If you want to read about the “what” or the “why” of workplace transformation, you can check out my earlier blog posts: "What is Workplace Transformation?" and "Why Do a Workplace Transformation (Top 10 Benefits)?".
Key Takeaways - When to do a Workplace Transformation (Top 5 Trigger Events):
Lease Events and Space Utilisation – For example, upcoming lease breaks or relocations.
Workforce Headcount Changes and Needs – Growth or reductions in workforce impacting space needs.
Adoption of New Ways of Working – Implementing Activity-Based Working (ABW) or hybrid models.
Outdated Facilities and Compliance Issues – Ageing infrastructure and regulatory updates.
Cultural and Employee-Centric Drivers – Supporting cultural change and improving employee engagement.
When to do a Workplace Transformation?
The following five trigger events can independently prompt a workplace transformation, or they may overlap. In some cases, all five factors converge, creating a compelling need to act.
1. Lease Events and Space Utilisation
Lease Events
An upcoming lease event - such as a lease break or exit opportunity, is an ideal time to reassess workplace needs. Starting this process early (18 months to 2 years in advance) is key. Adequate planning prevents rushed decisions, which can prove costly or lead to selecting unsuitable workspaces. Engaging independent tenant representatives to analyse the local market can help.
Lease Breaks: Provide a chance to exit out of your lease commitment early, often supported by a fit-out contribution from the new landlord.
Lease Exits: Allow renegotiation to stay in the current space or relocate. This is ideal for companies happy with the location (parking, local amenities, transport links etc.) but requiring upgrades.
Office Portfolio Efficiency
Efforts to consolidate or sublease unused space can lead to significant cost savings. Depending on your office portfolio’s size, reviewing existing properties may reveal opportunities to sell, return back to the landlord, mothball and or if allowed sub lease to a new tenant.
The remaining space could then be subject to a workplace transformation. If possible, keep hold of the surplus space in the short term, in case it’s needed as “swing space” for employees to occupy during the workplace transformation project of the remaining space.
Efficiency gains can come from consolidating several small office locations into a centralised hub or keeping the small satellite offices and removing the main head office or a hybrid of the two, where a smaller Hub and Spoke model is preferred. Each model has its pros and cons, and the suitability is different depending on each organisation’s needs.
Strategy-Driven Adjustments
Changes in business strategy, such as launching new services or products, may necessitate modifying or enlarging your workplace. Aligning the workspace to business goals ensures the office supports strategic growth. A tech start-up transitioning into enterprise-level operations, for instance, might need additional collaboration spaces and upgraded technology infrastructure to match its growing ambitions.
2. Workforce Headcount Changes and Needs
Headcount Variations
Workforce size often fluctuates. Whether the change is immediate or projected, it prompts critical questions:
Do we need more or less space?
Can we adapt the current footprint, or is relocation necessary?
Should we implement new ways of working (e.g., ABW) to manage growth?
Answers to these questions will determine if a workplace transformation is required and when to act.
Geographic Expansion
Business growth into new locations or through mergers and acquisitions often triggers a workplace transformation project. While maintaining consistent branding and working styles is important, avoid cookie-cutter designs. Incorporating local aesthetics can create a strong connection between your brand and the local community. These localised designs often resonate more deeply with employees, creating a sense of pride and belonging.
3. Adoption of New Ways of Working
Implementing new ways of working approaches - like Activity Based Working (ABW), hybrid working, or hub-and-spoke models, often requires a workplace transformation.
These new ways of working models refer to any way of working that isn’t the traditional one-person-per-desk setup.
A well-established new way of working is Activity-Based Working (ABW):
The identification of the activities the employees do currently and plan to do in the future.
The activities are then interpreted into a workplace design.
The design is brought to life through work settings, furniture, and flexible working policies.
Ideally producing an outcome that caters for all work personas, personalities, and preferences
The end result should offer a range of work settings, covering focus work areas through to enhanced collaboration opportunities.
Pro Tip: Combine ABW implementation with a workplace transformation or office relocation. Aligning these efforts maximises employee buy-in and avoids the challenge of introducing changes after habits have already formed.
Post-COVID Hybrid Working
The prevalence of “Hybrid Working” (post Covid), has also triggered many to rethink their workplace needs and carry out a workplace transformation and or an office relocation. This is primarily due to the increase in working from home and therefore offices not being at the same capacity levels as pre-pandemic. I would suggest whilst this was the case globally, Perth WA (where Work Future is) had a unique Covid experience and didn’t experience the protracted office closures, as other major cities.
4. Outdated Facilities and Compliance Issues
Ageing Premises
Outdated workplaces often signal the need for a workplace transformation, especially if reactive maintenance has merely delayed the inevitable. Common indicators include:
Worn furniture and décor.
High partitions and excessive space utilised for storage.
Inefficient layouts and tired communal spaces.
For corporations owning their premises, refurbishment or possibly relocation becomes a key decision point.
Compliance and Legislation
Changes in local legislation can mandate updates to workplace facilities. Key considerations include:
Accessibility features (e.g., lifts, kitchens, door widths).
Fire safety and evacuation protocols.
Restroom facilities (e.g., unisex toilets, adequate numbers).
For example, businesses in older buildings may need to upgrade their facilities to comply with modern fire safety standards or improve accessibility for disabled employees or the general public. Ensuring compliance not only reduces risks but also demonstrates a commitment to inclusivity and safety.
ESG Goals
While Environmental, Social, and Governance (ESG) metrics may not independently trigger a transformation, they can strengthen the business case. Closing gaps between current ESG performance and aspirations often aligns with workplace upgrades. For instance, integrating energy-efficient lighting etc. can reduce long-term operational costs while enhancing sustainability. Beyond cost savings, ESG-aligned transformations often improve brand reputation among stakeholders.
5. Cultural and Employee-Centric Drivers
Underpinning Cultural Change
A new workplace that underpins a new way of working can be the catalyst a company is looking for to drive significant cultural change. This is because a new workplace is tangible and can be a physical representation of a company’s culture, vision, and ethos. Whilst the way employees behave and interact in the new space demonstrates their alignment to the cultural aspirations of the company.
Employee Engagement and Retention
A newly revitalised workplace either new or refurbished can have a dramatically positive effect on the workforce. It can provide a shot in the arm in regard to retention. Both the lead up to the new workplace and the end result can be utilised for this purpose.
During the project, employees can be engaged across a range of opportunities, so they feel they have a sense of control over their own destinies – a silver bullet for combatting change resistance and change fatigue. Employees are not tired of change per se, they are tired of
poorly managed, misunderstood change.
Ultimately creating a sense of community, where employees feel valued, heard and a desire to belong is the recommended approach.
A new workplace that fixes long standing legacy issues, provides a greater range of amenities will also positively contribute to retaining your best talent. Neglecting the workplace is perceived as a lack of care by employees, who quickly translate that to mean a lack of care (from management) to them as well, and the seed of disenfranchisement is sown.
However, whilst a new workplace that fixes long standing issues will positively contribute to engagement and retention, it won’t be able to 100% repair a poor culture and or poor management, these are the two primary reasons why employees leave. Employees will actually accept a substandard workplace more than a substandard manager.
Health and Well-Being
Employees increasingly value workplaces that prioritise their physical and mental health. Features like wellness rooms, biophilic designs, and end of trip facilities reduce stress and increase satisfaction. A health and well-being strategy should form part of your overall workplace strategy and workplace design standards.
Return-to-Office Mandates
As organisations navigate return-to-office mandates, enhancing workplaces can ease resistance. Modern offices designed for connection, community, and collaboration help redefine the workplace’s role and attract employees back. Creating comfortable, purpose-driven spaces can make the transition more appealing and reduce friction with employees now used to working remotely.
Conclusion
When is the right time to do a workplace transformation?
When the organisation is driving cost savings, and rationalising the real estate portfolio can contribute by reducing unused space and leasing costs.
When you want to operate from a workspace customised to your needs, ways of working, and culture.
When your workplace must be rightsized to how you accommodate your workforce (e.g., all-in, hybrid working).
When you want to align your brand and culture across offices, especially after expanding into new geographies or through mergers or acquisitions.
When the workplace needs to support and enable your preferred ways of working, such as ABW.
When you need to fix Work, Health, and Safety (WHS) issues, existing compliance risks, and evolving legislation obligations.
When the organisation needs a tangible foundation to launch its cultural transformation agenda.
When the workplace can contribute to resolving retention and engagement issues.
When you want to demonstrate you care about your employees by reflecting their health and wellness needs and ESG promises.
When you’ve just issued a return to office mandate and the workplace isn’t enticing enough.
If you’re still not sure when, remember: a workplace transformation is typically due every 5–10 years, so when did it last happen? 😊
The next instalment -Part 4 of 6 of the WorkFuture.com.au blog series, “Applying the Kipling method to Workplace Transformation” titled “How to do a Workplace Transformation” - will be available soon.
This blog was written by Work Future Workplace Transformation Consultancy. We specialise in leading and delivering workplace transformation projects in Perth, WA. Contact us at hello@workfuture.com.au or +61 0435 824 305 to discuss your workplace transformation needs.
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