Interesting dilemma, Veerendra.
I like the response from "bus2perf."
However, someone needs to take responsibility for saying that there is a concern with the lack of productivity. Ideally, this would come from a manager. Unless the concern is expressed openly (and this doesn't mean targeting particular individuals), there will continue to be no motivation to change, no matter how many programs you put in place.
I would be inclined to at least consider addressing staff at a staff meeting and saying something like "I've often noticed that there is a high level of conversation in the office, and I'm not sure how much of this is work-related. I've also noticed visitors to our area paying attention to this and wonder what kind of impression it creates."
Even if staff are not prepared to acknowledge the problem, at least it is in the open, and you can follow up by dropping into non-work-related activities to observe what is going on. Even if you say nothing further, many will get the message.
Who knows, it might even be a problem for other staff who feel they just have to put up with it. I know that I often feel a bit cross when others interrupt my day with very long chats about their personal lives or other non-work-related matters.
Good luck with it, but as "bus2perf" writes, think about whose responsibility this is and how you engage them in a change process. It is about workplace culture, and that cannot be effectively changed with a heavy hand.
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