Why leaders must consider the impact of the physical working environment in shaping team culture
In today’s ever-evolving business environment, effective leadership is about more than just driving performance and results—it’s about cultivating a positive workplace culture. An obviously powerful tool for influencing this is the physical working environment where teams operate yet it is surprisingly often overlooked or sidelined. Thoughtful design can have a profound impact on team cohesion, employee well-being, creativity, and productivity.
Maier has had its own experience of this recently, having just moved from our previous home of nearly 15 years into our new collaborative offices (a fantastic space which also happens to be surrounded by nature). Whilst we’re still settling in, it hasn’t taken long for us to see and feel firsthand how the physical space of our new working environment has positively influenced how we interact and work as a team. Change, of course, can present challenges, and teams may need support in navigating it, but it can also be a powerful driver of innovation, productivity, and enhanced team dynamics.
Why Physical Space Matters
Establishing the right team culture is one of the most important responsibilities of leadership. Culture guides behaviours, sets expectations, and energises and motivates employees. However, the influence of physical space on that culture is often underestimated. Research shows that the working environment in which employees are based significantly affects their well-being, productivity, and creativity.
A study by Human Spaces found that people who work in environments with natural features — such as access to natural light, greenery, and outdoor spaces — reported 15% higher levels of well-being, were 6% more productive, and saw a 15% increase in creativity. This highlights that the physical environment affects more than just output; it shapes how employees feel about their work and their sense of belonging within the organisation.
Inspired by our Clients; The Impact of Thoughtfully Designed Spaces
- We have worked with architectural clients who have shared insights into the meticulous planning behind creating spaces that not only look aesthetically pleasing but also promote health, well-being, and optimal performance. These clients emphasise how the design of a space can directly shape mindsets and behaviours. From the flow of natural light to layouts that support both focused work and spontaneous interaction, every detail matters.
- Another client is currently overseeing the design of their new working spaces – they have commissioned an interior designer to oversee the project to ensure that every element is carefully considered to create a space perfectly designed for the team and desired culture – from the lighting and acoustics to neurodiverse and neurotypical design integrity. Of course, this requires excellent ongoing communications and dialogue between the designer and the organisation to make sure they get the working spaces that really work for them.
- Finally, during a series of 1:1 coaching sessions we held with a leadership team, many members expressed the need to increase their visibility and find ways to make cross-functional collaboration more seamless. They all noted how their current office layout creates barriers to this, and while they are exploring solutions, it serves as another example of how physical space can affect productivity, connection, and collaboration.
For leaders, these lessons are invaluable. It’s important to ask “Is your workplace conducive to open communication, creativity and collaboration? Or does it unintentionally stifle these qualities?”
Leaders who take the time to reflect on how their physical working environment affects team culture will find it a powerful tool in reinforcing the culture they aim to build.
The Role of Space in Hybrid Working
With the rise of hybrid working, the role of the physical working space becomes even more nuanced. Leaders must now consider how to create working environments that accommodate both in-office and remote workers while maintaining a sense of connection and belonging across the team. Hybrid working presents challenges but also opportunities for fostering team culture.
More employees are voicing preferences for flexibility in where, when, and how they work. To remain competitive and retain top talent, leaders need to listen to these needs and think critically about their employee value proposition, particularly when it comes to physical spaces. Hybrid working doesn’t mean abandoning the office; it requires a rethinking of how space is used to support a fluid and flexible working model.
Some organisations are transforming traditional offices into “collaboration hubs,” spaces designed not for everyday desk work but for in-person team meetings, brainstorming sessions, and social interactions. In this way, the office serves a distinct purpose within the hybrid model, contributing to team cohesion and a positive work culture.
Leaders Shaping Environments That Shape Teams
Understanding how the physical setup of a working environment fosters or hinders connections is crucial for leaders. By designing spaces that encourage inclusivity, transparency, and engagement, leaders can enhance their ability to build cohesive and dynamic teams. And it’s not just about making major structural changes — small adjustments, such as rearranging desks, can spark significant improvements in team interactions.
Ultimately, it’s not just about the physical space itself — it’s about how leaders use it. The physical environment can be seen as an extension of leadership, a foundation on which team culture can be created and nurtured. Whether adapting to change, embracing hybrid work, or designing spaces that promote well-being, leaders have the power to shape the environments that shape their teams.
Leaders who proactively consider the impact of physical space on team culture will be better positioned to lead teams that are not only more productive but also more engaged, creative, and fulfilled. Places to really enjoy inhabiting and working in.
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