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Operating models are changing faster than ever before, calling for companies and professionals to be forward-thinking, flexible and ready to help each other and their clients or consumers to navigate disruptive forces. The case for being innovative is no longer up for debate. It’s clear that companies who are not preparing to manage and succeed at innovation will be left behind.

So which environment will be most likely to spark innovation? Will professionals’ ideas flow more often when they are working virtually or when they are working in the office?

There’s certainly some convincing points on both sides of this debate (as you’ve likely read in recent news stories of companies changing their work-from-home policies).

Remote Work Environment: In Favor of Innovation

Fair Idea Evaluating -  Some researchers believe that virtual settings have an innovative advantage because employees are more likely to evaluate current and new ideas based on merit alone. There is less bias toward a particular idea (or manager) and a lower chance of an employee feeling the need to agree with an idea due to sitting aside a group where everyone else agrees with the idea.

Embracing New Technologies -  Virtual workers are plugged in 24-7, effectively utilizing video chat platforms, instant messaging, the Cloud, company apps and more. These employees will likely be more comfortable using evolving technologies we’ve yet to see. Further, they may be likely to generate practical ideas on the next wave of work communication tools and to find ways to make their clients or consumers comfortable with trending technologies. Naturally, this helps to expand the innovation movement.

Dynamic and Diverse Teams -  Virtual settings have the ability to bring together geographically dispersed team members. This geographically diverse team is better equipped to think of and understand complexities of different cultures and produce ideas aimed to delight stakeholders.

Then there’s the recruiting factor. Maybe your #1 highly pursued out-of-the-box thinking candidate is on the other side of the country. Adding this idea-generator to your team is possible with remote work.

Time on Their Side - When you take away employees’ daily commute time, you’re giving them the extra time they need to consider more efficient practices and generate valuable ideas.

Comfort Zone -  There’s plenty who believe that the best way to inspire creativity and generate new ideas is to separate from your workspace by taking a break into your yoga room or playing your favorite tunes (without disturbing cube mates).

Which ironically, brings me to some key points in favor of innovation in the office.

Office Work Environment: In Favor of Innovation

Workplaces Adding Creativity and Open Space -  Our recently-opened KPMG Ignition in Atlanta boasts 22,000 square feet of work space geared toward advanced technologies, close collaboration and enhanced flexibility. With putting greens, bocce ball, air hockey and plenty of sofas, KPMG Ignition has no shortage of areas for employees to break off and innovate. Bringing creativity outlets to life in the workplace is a huge win in favor of innovation in the offices.

Two Brains Better Than One -  Some of the companies that have recently sent their virtual workforces back to the office with hopes of sparking innovation say that the best ideas are ones that come from pulling together two similar ideas, which is more probable when connecting with a colleague in person.

On that note, when working side by side with colleagues every day, employees are no doubt hearing about their colleagues’ work challenges. It’s likely that observing the frustration of these challenges will inspire employees to consider new alternatives.

Idea Trials - Although innovation typically starts with one individual, in order to bring an idea to life, it needs to be tested, challenged and added to, possibly through a dynamic group discussion, which is more probable in person.

The Ripple Effect - The basic ripple effect principle can apply to innovation in the workplace in a few ways. For one, when groups are working on a team they establish a camaraderie. Similar to any other human relationship, a motivation to improve the friendship and what benefits the friendship is added. Secondly, (and this one is pretty elementary in concept), when workers see their colleagues receive significant recognition for their new ideas, they’re more likely to want to develop new ideas too.

Real-Time Delivers -  Then there’s the view that real-time communicating offers the most effective innovation (meaning no time zone obstacles or lost connections due to technology mishaps). One of our local innovation councils tested this concept with a Fast Challenge after audit busy season. They gathered several engagement teams immediately following their busiest time of year to converse on an array of new ideas that have the power to improve effectiveness and promote audit quality. The teams discussed costs to implement, necessary time investments and long-term idea sustainability. The challenge’s success showed that scheduling close to the peak season helped to maximize ideas and permit detailed consideration of each one.

Plenty of research points to workers being more productive when on their own but more collaborative and innovative when they’re together.

I caught up with our National Director of University Recruiting, Kathy Schaum, on this topic, “Perhaps the highest likelihood of accelerating innovation is a combination of remote and office work. For example, we increase opportunities to spark innovation when employees who typically work remotely agree to come into the office once a week and when geographically dispersed teams come together at in-person quarterly meetings and when teams utilize new technologies to meet virtually.”

Would love to hear your thoughts on this lively debate.

Where are your teams most innovative?

Shaun Budnik, Audit Innovation Leader, KPMG

#innovateaudit

This article represents the views of the author(s) only, and does not necessarily represent the views or professional advice of KPMG LLP.