Challenges + Solutions

Businesses could make use of tech-enabled spaces, including shared working spaces that enable creativity and collaboration both within and between organisations. It is likely that spaces that enable creativity and collaboration will become more important for businesses in the future and may to some extent replace the traditional desk set-up as the requirements of office space change. One option is to make use of existing tech-enabled shared working spaces to facilitate this collaborative work, both within and between organisations. Such spaces can work particularly well for some of the activities that businesses expect to carry out predominantly from physical spaces, such as innovation planning, team-building and strategy days.

A shared working space is a solution to hybrid working that does not require as high a level of investment from a business perspective as it removes the pressure to retain or establish large and costly offices. 22% of businesses surveyed highlighted having an office/presence in a shared working space as a top priority, indicating that a significant number of businesses have already realised the power of this solution. Indeed a construction services company and CBI member told the CBI that they are planning to capitalise on shared office spaces if more employees decide to work from their office than anticipated.

Businesses may also consider increasing the amount of collaborative space in their existing offices/workplaces, either by reconfiguring the workspace or by increasing office space altogether to allow for both curated and spontaneous ‘water cooler’ moments and collaborative interactions. Businesses may wish to consider hot-desking instead of individual workstations and/or a booking system which may help manage space in the office, especially where employees can choose which days they come onsite or into the office. With the survey findings showing that most firms expect to conduct desk-based activities from home, this will free up space in the workplace for employees to make the most of their time spent on collaborating and innovating.

Make use of existing business communities, resources and collaborative projects to get the best support and highest quality thought leadership on what will work best for employees. Businesses can make use of available expertise and thought leadership and collaborate with communities of businesses going through similar change.

Certain knowledge-intensive businesses may choose to work in innovation hub spaces based on university campuses, allowing them to work directly alongside world-leading academics to innovate and develop new products and services. These hubs often provide fully-fitted and bespoke laboratory and office space with cutting-edge digital infrastructure to accommodate commercial Research & Development (R&D) activities, as well as allow the formation of networks with university-based research expertise as well as much wider networks of entrepreneurs, mentors, partners and advisers. These hubs can also often provide a blueprint for a well designed, innovation enabled workspace and cater for firms at any stage of growth whether they be spinouts, start-ups, high-growth companies, or established industry leaders.

Smaller firms expect to work from home more than larger firms, which may make it even more difficult for them to build and maintain a strong company culture. Once again, use of shared working spaces may be beneficial. Such spaces promote both curated and spontaneous collaboration, innovation and social interaction, and therefore a feeling of organisational culture. Smaller firms planning to work remotely to a large extent, perhaps due to the cost of office space, might consider shared workspaces as a cost-effective way for their workers to socially interact.

One example, in the CBI’s hybrid working guide, outlines that messaging about Siemens’ hybrid working model came from the very top, with the Global Chief Executive sending personal emails to everyone in the organisation to show commitment to the policy. Siemens recognised the importance of employee involvement, creating specific project groups with employees to involve them in the design and creation of the new policy. Creation of the new model with employee input and whole-organisation buy-in, gave Siemens the confidence that the move will represent a long-term sustainable change, without letting a hybrid model negatively affect the organisational culture.

Also, following extensive consultation with employees, PwC recently announced a ‘deal’ to its 22,000 workers with changes to allow greater flexibility for post-pandemic working. This includes an “empowered day” with more freedom to decide the most effective working pattern, flexibility to continue working from home as part of hybrid working, and a reduced working day on Fridays during July and August. Kevin Ellis, chairman and senior partner at PwC, said that he wanted his people to “feel trusted and empowered.”

The significant proportion of businesses that reported worse engagement with senior leadership in a hybrid working model indicates a potential issue of presenteeism going forward, as some workers may feel compelled to impress employers, or perceive potential benefits from spending more in-person time with management. A large multinational IT company and CBI member told the CBI they wanted to create a hybrid experience in offices and meeting rooms that equally enfranchises people who are physically present and virtually present. Businesses should ensure that employers can easily engage with senior leadership virtually, and that, if a hybrid working model is being implemented, it is clearly communicated that working from home is perfectly acceptable.

Businesses should also ensure that they remain adaptable and responsive to feedback from employees. CBI member anecdote reveals that some businesses are taking a ‘test and learn’ approach to their new hybrid working models, acknowledging that it may be difficult to get the policy right immediately and that, through engaging with employees, the optimal model will be reached over time.

As per the Boston Consulting Group research cited earlier on the four main types of worker in our future world of work, some roles, such as scientists in a laboratory, simply need to be physically present to do their jobs. Other roles that follow a regular process may be able to carry out their work entirely remotely, such as a call
centre worker with a script. Many businesses may find that they have various types of worker, with some able to work from home but others required to be onsite. This can lead to the perception that those who can work from home have more freedoms and flexibility, and potentially an “us versus them” mentality. Businesses need to do what they can to mitigate this sentiment, and one way is to emphasise various different types of flexibilities to workers including those that can be enjoyed by site workers, including varying start and finish times and flexible shift patterns.

Early-stage businesses who access advice and guidance and join strong collaborative communities and networks, are much more likely to succeed. These businesses can, for example, join incubator, accelerator or other innovation-focused communities. A start-up incubator for example is a collaborative program in which entrepreneurs are assisted with solving some of the problems commonly associated with running a start-up by accessing dedicated workspace, seed funding, mentoring, and training, amongst other services. Other communities can also allow businesses to access advice from seasoned entrepreneurs on the best ways to acquire and retain customers, work with partner organisations on research and development, or tap into the right skills and talent that they need to innovate. Universities can help businesses in a myriad of ways but particularly with research
and innovation. Businesses may consider making use of available networks, with universities to access high-quality research expertise, talent and facilities. The survey showed that only 17% of businesses are currently engaged in incubator or accelerator communities, which may be contributing to a large waste of innovation potential for early-stage entrepreneurial firms.

Other innovation ecosystems can be accessed by businesses that aren’t early stage/entrepreneurial, including the Knowledge Transfer Network (KTN) which connects ideas, people and communities to drive innovation, recognising that the journey from innovative idea to market requires a diverse range of know-how, investment, market knowledge and research. Businesses can access wide-ranging expertise, funding, and create useful connections by making use of networks such as KTN.

Businesses can improve their competitiveness and productivity through funded knowledge transfer partnerships with academics and researchers, facilitated by universities. The Knowledge Transfer Partnership (KTP) scheme from Innovate UK and UK Research and Innovation (UKRI) helps businesses in the UK to innovate and
grow by linking them with an academic or research organisation and a graduate. Through this partnership, the business will deliver a specific, strategic innovation project with the KTP associate acting as an employee of the business for the majority or all of the project, and enabling the transfer of knowledge between the academic institution and the business. Given that lack of access to skills and talent and lack of time were commonly cited as a top barrier to innovation, embedded resource provided by partnership schemes such as KTPs could be of great use to many businesses, enabling innovation in both a time-effective and cost-efficient way.

Lack of funding was also a prominent barrier to innovation, particularly for smaller and early-stage firms. Grant funding programmes are available, including Innovate UK Smart Grants. In the funding round, which opened on 28th May 2021 and closes on 25th August 2021, Innovate UK is investing £25 million towards the
best ‘game-changing’ and commercially viable innovative or disruptive ideas. With a particular interest in ideas that overlap with their ‘grand challenge areas’ including: artificial intelligence and data, ageing society, clean growth, and the future of mobility, funding is available for both independent or collaborative projects with costs ranging between £25,000 and £2 million. Only organisations that are or involve at least one micro, small or medium-sized enterprise (SME) are eligible for funding, demonstrating that Innovate UK recognises the importance in smaller businesses being able to access funding.

Whilst businesses can look externally to overcome barriers to innovation, they can also look to change from within. The CBI’s Bigger, Faster, Stronger membership guide (9) identified four recommendations for larger businesses to harness to better fuel digital transformation and boost their productivity and competitiveness including: take a bird’s eye view, people power, love your silos, automatic upgrade.