4 market dynamics to consider when building a workplace strategy

Paying attention to market dynamics is a prerequisite when building an effective workplace strategy. Here are at least 4 factors organizational leaders and Facility Managers must consider.

Good and comprehensive strategies are and always have been difficult to formulate. Market dynamics make up one important aspect to consider when building an effective workplace strategy. Despite, executives still rely on approaches that are suited to predictable, stable, environments, even when their own environments are known to be highly volatile or mutable. Research shows that there at least are four market dynamics that core organisations should be on the outlook for when building workplace strategies.

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Scenario 1: The industry is predictable, but hard to change

In this situation, the strategic needs are: set a goal, target a favourable market position, build and defend this position. Quantitative and predictive planning models work well, and classical approaches to workplace planning, outsourcing and Facility Management will suit these organisations well. Moderate adjustments to the workplace strategy should be expected, but radical changes occur relatively infrequently.

Scenario 2: The organisation is an industry leader

In this competitive environment, the organization leads the industry and its future vision. Just as Edison did for electricity; Martine Rothblatt did for XM satellite radio and Elon Musk did for Tesla. The organization is entrepreneurial, places major bets but makes sure that these gamblers are clear and deliberate. In the leader organization, execution is the priority, not agility. Office designers and Facility Managers need to ensure that the organization can marshal its resources, plan thoroughly, and implement its strategy correctly. The workspace needs to ramp up activities to support these make-or-break projects. Facility Managers need to prepare contingency plans for necessary actions if the projects succeed, succeed better than expected, or fail.

Scenario 3: The organisation faces a dynamic, unpredictable strategic environment

Due to global competition, technological development, economic uncertainty and social feedback, the core organization faces a dynamic, unpredictable strategic environment. As a response, the organisation constantly refines its goals and tactics
The ability to make long-term strategic plans is not helpful as long-term plans quickly become obsolete. The core organization needs to shift, acquire, or divest activities and resources smoothly and promptly.
Likewise, it has an interest in transferring costs from fixed to variable.
The strategic goal for office designers and Facility Managers is to engineer flexibility, internally in the organization, and externally with suppliers and partners.

Scenario 4: The organisation is in survival mode

Survival strategies involve two components. First, companies must act defensively, cut costs, reduce portfolios, and preserve critical capital and resources. Second, executives in firms in survival-mode need to focus on developing new growth strategies.
For Facilities Managers, it may be ideal to consider how costs can be cut in the short-term without compromising the workforce experience and well-being. Nevertheless, more resources should be focused on the value-creating core where the highest competitive advantages can be created.