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Cost center or social capital engine? - Does the unit of workplace analysis you choose determine the answer ?

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  • Expert Peer Review Group

Cost-per-seat, utilisation rates, NPS scores all tell you whether the asset is being used, however they do not tell you whether work is actually happening better because of it.

CFO's speak in ROI, employees talk about purpose, connection and autonomy.  There is a structural disconnect.

If we want real estate to be taken seriously as a business capability, we need metrics that close that gap and measure collaboration effectiveness, not just occupancy efficiency.

Value creation from the physical workplace shows up in five places:

1. Decision velocity - Are teams resolving issues faster when co-located?

2. Relationship formation - Are cross-functional ties strengthening in ways that drive outcomes?

3. Cognitive load reduction - Does the environment remove friction rather than add it?

4. Culture signal - Does the space reinforce the operating norms you are trying to build?

5. Discretionary effort - Does being here increase willingness to go the extra mile?

None of these are captured by a badge swipe. Shifting toward outcome-based accounting means we need to build the logic chain.

Which business outcomes are on your leadership scorecard ?

Which workplace and design specific interventions are designed to move you towards your goal ?

How are you tracking progress ?   

 Over to my Occupier Community - Which business outcomes have you successfully connected to a specific workplace intervention and what was you unit of analysis ? Have you landed on something both meaningful to leadership and genuinely measurable in practice?  Would love to hear some real examples. :o). 

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