Coronavirus and the Need of Spoke and Hub Office Model Around the World

The concept of hub-and-spoke offices is not new. In fact, businesses have been using them for years. They have centralized headquarters that serve as the hub of their activity. These companies distribute their network of offices geographically after determining the needs of clients.  These headquarters are in based core locations and are accessible to people. They serve as an important cultural center of the business.

However, the COVID-19 outbreak has upended the scenario for many businesses, and commercial real estate is no exception. While many businesses are struggling to overcome economic uncertainty and commercial real estate, the particularly spoke-and-hub model has seen a rise in demand.  Put simply, the virulent disease has served as an accelerant for the spoke-and-hub office model.

Many businesses and companies, amidst COVID-19, are reconsidering their logistic and space needs.   Spoke-and-hub has evolved with time, and businesses emphasizing the “Work from Home” option are just one example of this evolution. Work policies, ethics, and norms are changing for the future. Many globally expanding companies have working units that they cohesively manage across the world.

In the current scenario, the spoke-and-hub model allows these companies to integrate local and global business processes. The article, in this regard, plunges into the details to find how this pandemic has increased the demand for spoke-and-hub offices around the world.

Effects of Pandemic and Need of Spoke-And-Hub Office Model

As mentioned above, the pandemic has caused enormous disruption to businesses across the world.  Enterprises are focused on strategies to avoid any chances of this happening again. Spoke-and-hub model works as a flexible option to help organizations prepare and anticipate the changing business nature.  Switching to models like spoke-and-hub allows businesses to bend but not break. Also, it ensures business continuity.

Know that a resilient business is one that can operate in threatening situations, embrace disruption, and mitigate risks, including economic instability.

Take a look at the following reasons highlighting the need for the Spoke-And-Hub office model during the pandemic.

·         Required Flexibility of Systems and Spaces

The pandemic has left several firms struggling with massive cash flow problems as they have to pay high rents of the spaces they are not in use.

This is undeniably a distressing experience for businesses. This is one of the reasons why firms want to opt for a more flexible model. In the future, operators and owners will want to design a workplace with plenty of modalities that offer business resiliency. This means spaces and systems that not only work for normal situations but also pandemic scenarios. Spoke-and-hub office model is a part of a necessity to spin around and respond to demands.

·         Decentralization

Many businesses are embracing the idea of remote working.  You can see organizations in different locations opting for more decentralization. There is no need to demand employees to travel to the office hub when it’s no longer necessary?

This is what makes decentralization a part of the business model during the COIVD-19 outbreak. It includes satellite offices that offer workers greater flexibility and help them build resilience via diversification.

·         Workspaces that Promote Health and Wellness

There is no denying that this global pandemic has brought hygiene and health concerns into focus. And therefore, it is likely that firms will expect offices to conform to the high standards of safety precautions.

The indoor environment and its quality have a significant impact on occupants’ health. For instance, thermal discomfort in the office space can potentially put the health of people at risk. It also impacts the ability of people to function efficiently.

Companies are embedding existing designs that encourage physical activity in the workspaces. In short, to respond to coronavirus pandemic, companies are expected to consider their employees’ safety and health when they resume work. Spoke-and-hub office model contributes to this sense of protection as it promotes working in small units.

·         Better Business Agility

Uncertain economic conditions require businesses to add new marketplaces and explore new sales channels. Spoke-and-hub architecture can increase the ability to adapt to businesses by standardizing and integrating different paradigms. Businesses need less investment, less time, and less risk when working with the Spoke-and-hub office model. It helps them move quickly.

Offering better business agility, the Spoke-and-hub office model allows companies to add, change, and remove their internal systems according to the business demands.

Bottom Line

Overall, the spoke-and-hub office model is an optimal way to scale business and improves its ability to grow and adapt. It offers more flexibility and business agility to the companies trying to get off the ground after the crisis.