LinkedIn Live session: Closing the workplace performance gap

ISS’ Group CMO, James Sharkey, hosted the event, and was joined by a panel of EY’s Head of Workplace Experience & Advanced Analytics, Claus Frigaard Christensen, ISS’ CCO of Global Office, Dr. Mark Forret and ISS’ Group Director of Products, Concepts & Services, Claire Harman.

The event followed the launch of our latest report, Facilities Management Outlook, which features insight from nearly 3,000 business leaders across 28 countries. The workplace performance gap is a prominent theme in the report, indicating the widening disconnect between leaders recognising the importance of the workplace and making the investment to unlock it. 

Over eight in ten leaders (83%) think the workplace has either a significant or great impact on business performance, following on from data in our Evolving Workplaces report that 71% of employees think the office is important.

“Belief in the workplace has never been stronger. Several studies point towards the belief that workplace drives performance and therefore improves business outcomes; but in practice, they often still manage it like a cost centre,” James said.

Execution is the critical constraint
Our FM Outlook report discusses the three factors sustaining the workplace performance gap: cost gravity, the proof gap and the execution gap.
Mark highlighted execution as the most significant barrier to unlocking workplace value:

“In our discussions with prospective customer organisations, it’s very clear they understand cost pressures and increasingly recognise the importance of workplace experience, but can struggle with consistently delivering across all locations – whether it’s scaling initiatives globally or aligning multiple vendors and stakeholders,” he said.

Fragmented supply chains, multiple systems and inconsistent standards all create friction, and breaking this cycle requires simplification and standardisation. This can be done through integrated end‑to‑end ownership, consistent technology platforms, strong governance and better data and visibility.

Making value visible through better measurement
With organisations needing to close the performance gap to unlock true workplace value, Claire said that one of the clearest signals of moving towards a performance-thinking workplace is the shift from traditional FM KPIs to business-related KPIs.

“A really clear sign is when we don’t just measure workplace performance on cost per square metre and utilisation percentage. Instead, we link it to business outcomes – employee experience, productivity and the attraction and retention of talent.”

She added that another indicator is stronger cross-functional alignment. When CRE, HR and IT align around business outcomes, the workplace becomes “a physical expression of the company’s brand and culture”.

Reframing cost optimisation
Cost optimisation and efficiency do not have to be at the expense of employee experience, Claus said, citing EY’s workplaces in the Nordics.

“The best-performing locations we have in the Nordics outperform the rest by 20%. We can combine user satisfaction at a very high level with a very high space efficiency at the same time – combining those is combining value and efficiency. We have 4.3/5 user satisfaction and a 4.8 square metre per user, which is a very low figure and means we have very dense spaces which drive costs down.”

Mark agreed that leaders should not see optimisation and performance as competing agendas, adding that in fact cost optimisation is not the same as cost-cutting.

“When done well, optimisation strengthens the workplace rather than undermines it. Whereas, cost-cutting is often reactive and risks damaging experience and momentum. Smart optimisation is strategic and value-led, and it’s focused on removing waste on an ongoing basis.”

Smart optimisation targets inefficiencies such as underutilised services, fragmented supply chains and reactive maintenance, while protecting what drives performance, including experience, productivity and critical services.

Unlocking new opportunities through technology
Our FM Outlook report found that digitalisation and AI is the second biggest disruptive force affecting leaders’ industries.

In terms of how technology will shape workplace strategies at EY going forwards, Claus said that as routine tasks are increasingly automated, work will become more cognitively demanding, with humans and AI “teaming up” on complex activities.

“The future hybrid model will be AI and human intelligence (HI) coming together,” he said.

This shift places new demands on them to support the focus, recovery and wellbeing of employees, including encouraging breaks and creating moments of human interaction. 

Claus also highlighted the potential of AI to turn large volumes of existing data into actionable insight more quickly, and the idea of a “digital coach for the workplace” that helps with managing the cognitive load of employees. However, he stressed the importance of not losing sight of people as technology accelerates.

Looking three to five years ahead, Claire said IFM relationships will be increasingly centred on customer business outcomes, and technology also plays a key role here by providing clearer evidence of value. This will reduce the ongoing “burden of evidence” faced by workplace leaders.

Mark reinforced this view, pointing to the rapid acceleration of AI and the opportunity it creates to remove waste and inefficiency, allowing organisations to reinvest those gains into the human experience.

You can access the FM Outlook report, which features insights from nearly 3,000 business leaders across 28 countries, here.

The full recording of the LinkedIn Live session is also available here.