Office design productivity gains depend on basics, LBS professor says

Bukky Oyedeji, assistant professor of strategy and entrepreneurship at London Business School, says office design productivity should be treated as operating infrastructure rather than a perk. Her argument is aimed at founders and managers weighing hybrid work: the office only earns the commute if it helps teams make decisions, share knowledge and work with less friction.

The costs of poor workplace design are not limited to morale. Research by property management company Mitie estimates that UK employees lose 68 minutes a week to workspace-related unproductive tasks, costing employers about £485m weekly. Mitie cited problems such as hunting for rooms with reliable Wi-Fi, waiting for slow lifts or other poorly maintained services, and trying to find places suited to collaboration. Methodology details were not disclosed in the cited findings.

Oyedeji told Sifted that companies tend to frame offices in two narrow ways: a cost line for larger firms, or a hiring perk for early-stage startups. She said the physical workplace also affects idea generation, collaboration and employee wellbeing. For startups, she added, an office can also influence whether outsiders see the company as credible, including customers, clients and investors.

How does office design affect productivity?

Office design affects productivity by determining whether people can find the right setting for the work they need to do. Focus work, mentoring, feedback, brainstorming and team decision-making place different demands on space, acoustics, proximity and privacy.

Oyedeji said individual tasks can often be completed effectively away from the office, while collaborative interactions are better suited to in-person settings. She also pointed to informal workplace skills, including observing senior colleagues with clients and building interpersonal relationships, as harder to develop remotely. For tech companies with junior hires, new managers or complex cross-functional work, that makes the office a training system as much as a seating plan.

The open-plan default remains a trade-off. A survey by architecture firm Gensler found that 11% of office workers were unaffected by workplace noise, while 45% were regularly interrupted by colleagues on calls. Workplace research company Leesman reported that 89% of employees need quiet, individual focus areas, compared with 27% of organisations that design for those spaces.

Oyedeji recommends what she calls spatial demarcation: keeping members of the same team close enough to communicate easily, while giving different teams distinct areas inside the office. She said boundaries can be created without walls, using plants, shelving and furniture placement. The aim is to preserve team identity and reduce distraction without cutting off informal contact.

What founders should measure before changing the office

Oyedeji said managers should start by watching how employees use the workplace day to day. Relevant questions include which work happens where, whether teams interact, how often they do so, and whether spaces are being used as intended. Those observations should then be tied to company-specific outcomes, such as faster problem-solving, more new ideas or more efficient delivery.

She also warned that building goals can conflict. Sustainability-focused office initiatives may reduce energy use and carbon emissions, but can undermine comfort if workers are left too cold or otherwise unable to concentrate. Her point is operational rather than aesthetic: environmental targets and employee comfort both need to be designed for.

Modern offices are shifting away from rows of desks toward more varied settings, according to Oyedeji. Examples include communal lounges, on-site bars, greenery, couches, adjustable temperature zones, windows that open and areas with different noise levels. No company-specific productivity gains, cost-benefit data or implementation budgets were disclosed.

This story draws on original reporting from Sifted.