Could appropriate space be the key to resolving our productivity conundrum in the UAE?
ISG's latest report, ‘Space to innovate’, reveals a link between physical space and innovation in the workplace. Innovation defined as ‘the process of creating and implementing new ideas, technologies or practices’. This is an area where construction and the built environment, in collaboration with forward-thinking partners, have a significant role to play – delivering innovative places that are agile enough to support the performance goals of occupiers.
According to our research, organisations spend more than twice as much on the learning and development of their people as they do on the physical space necessary for innovation. Investment in people and technology takes priority over everything and rightly so, it is well documented that this investment gives organisations a competitive edge. What’s harder to find in the public domain is tangible evidence that makes a robust case for investment in space. However, I am hopefully the ‘Space to Innovate’ report that ISG commissioned will help shine a light on this and create some informed debate among stakeholders.
There are some forward thinking organisations who have made the connection between space and innovation, some of which we work very closely with within the financial and consultancy services sector, but I believe there’s still a long way to go with this.
A formula for prosperity.
Our findings show that nine in ten (90%) of surveyed organisations actively invest in innovation, allocating an average 7% of turnover to these efforts. However, investment in physical space needed to support and facilitate innovation lags significantly; only 22% of surveyed organisations prioritised investment in the provision of physical space necessary for innovation.
In tandem with this, two thirds of innovators said they believe their activity depends on having suitable space, yet at least 67% did not believe they have the best possible space for innovation.
"Designs need to be smarter to achieve return on real estate – we have seen less closed offices, fixed workstations, more agile or desk and room booking options. There is a definite similarity in the requirements of most of our clients in the commercial realm."
Julie Thom, Studio Director, Roar.
From our findings it can be inferred, with appropriate space being a missing link and innovation being essential to competitiveness, that space to innovate is a factor in being a market leader. Furthermore, if all organisations commit to refining or constructing appropriate spaces, ISG’s research shows a nationwide benefit, and wider prosperity for all.
Productivity may be an abstract concept for many, but its consequences are real. Higher output leads to better wages and a more prosperous economy. In its report on ‘Key Workplace Trends in the United Arab Emirates’, Gallup estimates that ‘disengaged employees cost the UAE economy a loss of up to $10.3 billion’ while only ‘30% of employees in UAE are engaged at work’.
To put a formula for prosperity into action, businesses first need to define what performance means to them. As a formula for prosperity includes the same factors for all businesses, of people, skills, innovation, location and space. But individual businesses have individual needs for innovation, individual needs for their people, and individual needs for their space.
You should approach your unique formula by first evaluating desired outcomes. Think: “What does performance mean to this business?” This way, you can evaluate existing space and think about how it aligns to your people. Is your space appropriate? Does it support working practices? Do your ways of working suit the space? It is not necessarily about physically modifying space, it can be a case of changing how you use space. Bring space into your innovation conversations to unlock a formula for prosperity.
"People perform better in environments where their needs can be met. I think the key is to offer thoughtful spaces for the individual to thrive and the results will come.
Understanding the needs and functions of the client is the key to ensuring the design is responsive to their needs. For the most part we see that clients seek agility more than flexibility."
Julie Thom, Studio Director, Roar.
I believe that if we shift our thinking and prioritise space as an essential component in our approach to innovation, alongside people and technology, we can drive greater productivity and prosperity.
