In the wake of the COVID-19 pandemic, businesses across the globe faced unprecedented challenges, particularly in the management of office spaces. Our client, a prominent financial services provider, sought to adapt to the new normal by right-sizing their new office lease. With the help of our innovative strategy execution platform, they achieved remarkable results.
Initial assumption
The client was initially confident in achieving a 16% reduction in office space due to reduced in-office work post-pandemic. However, they acknowledged uncertainty surrounding numerous variables and the resulting impact on space demand.
Desired outcome
Maximise cost savings over the 10-year term of a new lease, while continuing to provide a comfortable and productive workspace.
Navigating uncertainties in office real estate
The organisation faced increasing uncertainty regarding the future of their office real estate. It was imperative that any potential solution established a solid basis for long-lasting and sustainable change.
- Complex VariablesThe client faced a daunting challenge due to the complexity of variables such as the number of days employees would spend in the office, potential peak attendance days, and future scenarios.
- Risk MitigationBalancing cost savings with the need for a comfortable and productive workspace, as well as considering potential future changes in working patterns.
Empowered strategy with exploration and customisation
We empowered our client by offering a tailored solution that harnesses our comprehensive strategy execution platform, allowing them to explore countless scenarios, leverage data insights, and develop a customised model to address their unique needs and uncertainties.
- Explore Countless Scenarios
Our solution enabled the client to model numerous scenarios, taking into account various attendance patterns, peak days, and potential future changes in workplace dynamics.
- Utilise Data Insights
By utilising extensive benchmark data, our platform provided objective insights to support decision-making.
- Customised Model Development
We worked closely with the client to develop a customised model that addressed their specific needs and uncertainties.
Condfidence in downsizing with remarkable savings
Confidence in Downsizing: With the help of our platform, the client gained the confidence to downsize their office space by 28%, exceeding their initial estimate by 12%.
Quantified Savings
- Average Cost Before Right-Sizing: €8,845 per employee, per year
- Average Cost with 16% Reduction (Initial Confidence Level): €7,430 per employee, per year
- Average Cost with 28% Reduction (spaciv powered optimisation): €6,368 per employee, per year
- Savings per Employee with spaciv: €7,430 - €6,368 = €1,061 per employee, per year
- Total Annual Savings with spaciv for 900 Employees: €1,061 x 900 = €955,260 per year
Exceptional Cost Savings
The client achieved remarkable cost savings by reducing the average workplace cost from €8,845 to €6,368 per employee, resulting in a total saving over a 10-year lease term of €22,289,400, of which €9,552,600 were enabled by utilising spaciv.
Empowered decision-making for office space optimisation
Our strategy execution platform empowered our client, a financial services provider, to make informed decisions about optimising their office space.
By addressing the complexity of variables and uncertainties, the platform enabled them to confidently downsize by 28%, resulting in substantial cost savings of €22,289,400 over a 10-year lease term.
