The day CFOs learn a better office equals a better bottom line.

Just how important is a good office to the profitability of your organisation? Is it simply an indulgence for businesses that want to show off (... a 'nice-to-have' rather than fundamental to a business' success)? Sedus, a very well-established brand and respected European manufacturer in the commercial furniture world decided to take a proper look at this question. They had independent researchers do extensive studies on several leading international organisations based in the northern hemisphere.

The results from the studies were problematic. Why? The concern was that no one would believe them.

Essentially, the researchers assessed organisations who took the process of making their offices better to the next level. Sure nice furniture was a big part of this but a lot of other factors were considered as well. Important elements such as natural light, control of the work environment, option to have privacy for focus time but also good spaces for break times and social interaction. Access to good coffee ... and the list goes on. (The cafeteria at Sedus' own factory in Dogern, Germany won best workplace restaurant that year).

So what did the studies reveal? The outcomes make for great reading and provide strong clues to what businesses typically get right but also wrong in the decisions they make around their investment in office fit-outs.

I often hear people say 'I wish I could afford nicer furniture or better fittings in my office'. Fair comment, but what the studies showed suggests we perhaps should question if we can afford not to!

What do I mean by that comment? Well simply this ... the organisations who invested in getting it right - putting in furniture that made their people feel they were valued, that solved a lot of the limitations and shortcomings of basic offices, that provided flexibility and control, that were done at a quality that ensured there were no distracting creaks, jams or worse breakages ... massively improved not only team engagement levels but improved the overall well-being of the personnel that it directly impacted the productivity levels of the office.

I'd long had strong evidence that a good ergonomic office chair allowed the user to stay alert and more productive throughout their full day (especially during the mid-to-late afternoon when many of us start flagging) ... but the outcomes of the studies were much more compelling than this. In short ... those operations who 'got it right' saw a very big return on their investment. And this is where the problem arose. The researchers had been asked to quantify (to 'measure') the results.

The data they came back with stunned the panel because of it's scale. Even when separated from other considerations / influences the organisations in question were seeing results as strong as a 36% improvement in the bottom line results of their operations. Was this credible? How could the improvement be that great? In reality it was not rocket science as there were multiple reasons (contributing factors) for the results. These included among others: Happier people who could be more focused / productive. Improved levels of staff retention (they were keeping the good people ... because they weren't so attracted to other workplaces). Success breeds success. The moment key people could see things going well they were even more engaged by the realisation that the business was going well. They attracted quality new people (word gets out!) ... Culture is often most effectively changed when the space people work in is also made different and more livable ... the list went on and on.

Very few CFOs would be presented with an initiative / concept that would improve their bottom-line by upward of 30% (most would be delighted by a 10% improvement). Even though the results were established by an independent research group there have still been concerns that people would assume the numbers were doctored to be that high!

In reality there have been examples here in Australia where organisations have made dramatic improvements after major updates in their head office space. Send me a message if you would like us to discuss the way spaces can be improved to help your bottom line ... or tell your CFO this might be worth looking into ... especially as we emerge from the COVID pandemic.

Jason Mark is Director of Offiscape in Brisbane, Australia and correspondent for The Meta Collective, an international group bringing quality product solutions to the Oceania region. M +61 419 827272 E: [email protected]