Placing human capital at the heart of commercial real estate: A 3-step strategy for success

With the global transition to digitally driven business, the world of work is undergoing a radical transformation. Traditional leadership hierarchies are dissolving, and there is a tangible shift towards more ‘human-centric’ business and operational models. Put simply, human capital is becoming imperative as technology accelerates the pace of business – and makes innovation the key competitive differentiator.

In this emerging landscape, the war for talent is one of the primary factors shaping Commercial Real Estate (CRE) strategies. When surveyed for Deloitte’s 2019 Global Human Capital Trends report, 70 percent of leaders cited recruitment as an important issue, and 16 percent said it was one of the three most urgent issues their organisation would face in the year ahead.

Having recognised the growing emphasis on talent, many occupiers are rethinking their workplace strategies, with many driving closer alignment between corporate objectives and CRE objectives. Most importantly, savvy occupiers are realising that they cannot afford to think of real estate as just a commodity. Rather, it has to be viewed as a vital differentiator in a highly competitive global ecosystem.

But how do you achieve this differentiation, particularly when budgets are under extreme pressure and business confidence is dipping?

Firstly, it requires strong buy-in and investment from leadership, as well as thoughtful change-management processes. Then, it requires viewing the workplace strategy not as a once-off project to be completed but as an organisational evolution.

Let’s take a closer look at this important journey…and the steps it requires.

1. Define your vision

To start the process and ensure its success, it is essential for companies to understand what the purpose of their workplace strategy is. So, identify and refine the drivers of the strategy: define the goals; and understand the user outcomes that you want to achieve (and also what the employees want to achieve).

When defining and clarifying your purpose, it is critical to understand some of the strategies that global companies are embracing. Today, these strategies are increasingly adopting pioneering property initiatives, dynamic and agile workplace cultures and advanced technology implementations. These three focus areas need to be seamlessly aligned to ensure sustainability in the long term.

2. Intelligent change management

For this evolution, it is critical to implement a robust change management process. Change management is a structured approach to shifting an organisation from the current state to the envisioned future state. Keeping in mind that workplace strategies are closely tied to cultural change, managing this process intelligently can be a make or break for the organisation and its key stakeholders.

As countless case studies have shown, the most important aspect of successful change management is clear and continuous communication – driven by leadership and maintained throughout the journey.

3. Responsive technology, responsive strategy

There can be no doubt that a smart and agile workplace strategy will be underpinned by enabling technology (including apps) to empower a digitally savvy workforce. Technology must be selected and designed to drive efficiency, productivity and ROI.

When planning and prioritising key investments, occupiers should look to place the emphasis on tools and platforms that make workplaces a destination of choice. This should include using technology to remove the barriers to productivity, as well as enabling flexible working styles. Critically, occupiers that approach digital as a process – rather than a destination – will be far better placed to meet the fast changing expectations of young and digitally native professionals.

As landlords and occupiers begin this evolution to a more human-focused approach, a core element to remember is that the fundamental style and design of the strategy should be as agile and responsive as the workplaces you are looking to create. This will ensure that the evolution is both current and continuous – reflecting the dynamic and disruptive nature of business today.