Author: Frederick Pilot

Return to office tensions point to reassessment of employment for knowledge work

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“Increasing numbers of employees may leave traditional employment, choosing to start their own businesses as freelancers and contractors.“

So predicts management author Lynne Curry in a blog post today. The context of her post is tension in knowledge organizations. The source is conflict between managers’ beliefs that knowledge work – gathering and the analysis of information to reach a decision – can only be done optimally at centralized, commute in offices – and the practical experience of knowledge workers who have done their work outside of this setting with no commute necessary.

What’s noteworthy is Curry’s prediction that is the decentralization and virtualization of knowledge work is eroding the concept of employment as well. “Traditional employment” as Curry terms it means the employer determines when, where and how an employee performs their job duties. When knowledge work can be done outside of a set “workplace” or time frame, that definition doesn’t fit as well anymore. Employers operating from this framework might sense that not only are their beliefs about how knowledge work is best done are being challenged, but also their agency and authority.

In that sense, the tensions we are seeing expressed as the “return to office” debate are fundamentally questioning whether knowledge work necessarily involves employment. Or can it be done as Curry suggests on a contract basis with knowledge workers paid to complete defined projects? That would require a serious rethink by knowledge organizations of whether employment as traditionally defined continues to make sense or if another model of management would be more appropriate taking into account advances in information and communications technology over the past 30 years.

Knowledge work has been slowly decentralizing for decades. But since COVID pandemic, it seems like just the past few years.

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Many knowledge organizations have been blindsided by the rapid decentralization of knowledge work. It is disrupting the usual manner of knowledge work as it has been done for decades: commuting daily to a centralized office location. That commute is no longer necessary. Knowledge work no longer requires the physical transportation of knowledge workers to an office building. Thanks to information and communications technology advances of the past five decades, the centralized, commute in office has become obsolete.

Knowledge organizations are struggling to adapt to this change. It’s been building since it was first predicted in the mid-1960s by futurist Arthur C. Clarke and as high speed highways began to exceed design capacity the following decade. But from the perspective of many knowledge organizations, it arrived with suddenness and surprise amid public health measures to contain the spread of the COVID-19 pandemic. That has left many knowledge organizations unprepared and facing future shock from too much change at once. This has led to negative consequences including:

  • Staff surveillance and “coffee badging;”
  • Lowered morale and engagement;
  • Loss of top performers and future leaders;
  • Negative social and news media accounts;
  • Difficulty planning staffing and space requirements.

The good news is knowledge organizations don’t have to navigate the shift alone. They can adapt and do so in a manner consistent with their values and mission and thrive in today’s decentralized, virtualized world of knowledge work.

Help is available.

Steve Jobs’ “bicycle for our minds” spurred rethinking of how knowledge work is done. Now knowledge work itself on threshold of redefinition.

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There has been considerable discussion in both news and social media over tensions within knowledge organizations over presence in commute-in offices. The need for presence began eroding in the 1980s with microcomputers (called the “bicycle for our minds” by Apple co-founder Steve Jobs), their portability in the 1990s and the commercialization of the Internet the following decade along with personal communications devices. Unlike typewriters, word processors and photocopiers and telephone switchboards, these information and communication technology (ICT) innovations don’t require dedicated offices. As such, they also eliminate the need for knowledge workers’ presence in them.

This is the ICT driven revolution of knowledge work. However, there is potential for another that leverages ICT’s deemphasis of when and where it’s performed: how knowledge work itself is defined and organized. For much of the time since the term was coined in the 1950s by management expert Peter Drucker, it has been defined and organized based on an industrial age manufacturing model along with centralized, standardized inputs. One repeatable job function performed at set time (8-5, Monday through Friday) in a centralized location (the commute in office).

In a 2013 Harvard Business Review article, Roger L. Martin proposed reconceptualizing knowledge work away from inputs. Martin instead wrote that knowledge work is best defined by its products – decisions — with knowledge organizations functioning as “decision factories.” However, unlike manufacturing organizations and their tangible, manufactured goods, decisions don’t require a physical factory. The real work is done in the brains of knowledge workers wherever they can be activated and engaged. Those thoughts are developed and communicated to other knowledge workers and decision makers via ICT. While Steve Jobs’ computer may provide the “bicycle for our minds,” the brain turns the pedals. The pedaling can be done anywhere — and advanced telecommunications networks are the bicycle paths.

Martin raises implications for how employment has been traditionally defined, by job title or position. This is directly tied to the expectation of presence in an office since presence is seen as essential to the functions of those roles and positions. That expectation drives much of the tension in knowledge organizations as knowledge work itself is being rethought. Knowledge workers are understandably piqued by unnecessary commutes to distant offices and going through the motions of nominal presence such as “coffee badging.”

Instead of jobs titles and roles, Martin suggests knowledge work be organized as projects with the goal of reaching decisions. For private sector organizations, those could be decisions about what goods and services to sell and to what markets and at what price. For government agencies, how to use available public resources to support their functions. The thought work of these projects is independent of time and place.

Changing nature of knowledge work: it’s fundamentally not about the workplace.

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The controversy over return to office mandates and hybrid working is driven by a larger, less recognized underlying mega trend: the changing nature of knowledge work.

It began in the 1980s with the introduction of mass market micro “personal” computers that became what Apple Computers founder Steve Jobs called “bicycles for our mind.” Bicycles are personal vehicles. However, for knowledge work, there is no need to travel to a destination as one would with a bicycle or other vehicle. The personal computer expresses the knowledge generated by its user and is capable of transmitting it instantly most anywhere thanks to an equally revolutionary innovation that came the following decade: the commercial mass market internet. And a decade later, the smartphone.

These information and communications technology developments have removed the need for dedicated office space. Steve Jobs’s brain bicycle replaced the automobile and bus to physically move knowledge workers’ bodies along with their thoughts. The “high speed” Internet as it’s commonly called is replacing what were designed as high speed highways that became less so as they exceeded their 20th century carrying capacity.

Many knowledge organizations are struggling with this powerful force of change that rapidly accelerated with the social distancing disease control measures of the COVID 19 pandemic. The source of their struggle is largely misconceptual. Knowledge work has fundamentally changed. The location where it is done is no longer as relevant. But the issue has instead been framed as if location is the paramount “workplace” issue.

It’s far bigger than that. The challenge knowledge organizations face is adapting to the larger shift in how knowledge work is done and the best way to structure and manage it going forward. They must judiciously determine when co-located activities are needed and when they are not given that being co-located comes with substantial costs to both knowledge organizations and their staff members.

Decentralized Knowledge Work: Transforming Organizational Management, Culture

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The evolution of information and communication technology over the past four decades has decentralized knowledge work. Unlike during the latter decades of the 20th century, knowledge industry organizations no longer require dedicated workplaces.

It began in the 1980s with the personal computer followed by portable computers and communications devices such as smartphones that have all but replaced the office desk phone. This digital world of knowledge work is replacing the analog high speed highways (no longer high speed due to exceeding design capacity) that physically connected knowledge workers to centralized commuter offices (CCOs). A large amount of knowledge work now gets done with texts, emails, video conferences that are independent of a CCO.

This shift occurred relatively swiftly and is transforming society and organizations. Knowledge organizations now must undergo a management, structural and cultural transformation to adapt. Some are struggling to do so and requiring staff to report to CCOs and incur the personal time and economic costs of commuting.

It’s generating conflict, attrition and degrading morale in these organizations. It’s also a maladaptive response to the transformation of how knowledge work is done. It is underpinned by outdated Theory X management philosophy and related cognitive biases.

Theory X is a management theory developed by Douglas McGregor. It is based on the assumptions that people don’t really want to work, lack ambition, only work to collect a paycheck, and need constant supervision. This theory is reinforced with how employment is defined, wherein an employer determines when, where and how work is performed.

Related cognitive biases include anchoring (knowledge work is done at one time and one place—the CCO— or it can’t truly be work). Another is the sunk cost fallacy that organizational resources invested in offices require they be used lest the value of those investments isn’t fully realized/recovered. Theory X is reinforced by the Industrial age, hierarchal command and control management structures topped by a powerful CEO. That accentuates the cognitive biases since they are held by a single leader above question.

In contrast to Theory X, McGregor’s Theory Y management model assumes that people want to work, want to take responsibility, and do not need much supervision. This lends itself to evaluating work based on outputs and a project and process versus people management approach. This organizing principle of knowledge work is described in a 2013 Harvard Business Review article by Roger L. Martin.

In today’s decentralized paradigm of knowledge work, knowledge workers need Theory Y leaders, not Theory X bosses. That means identifying strong team leaders respected by their colleagues, supporting high functioning teams and the team formation process, and following best project management principles and practices an inculcating them into the organization.

Those teams decide where and how often they meet in the same location or if they meet in person at all. The meetings serve an end – working on the project or social bonding – and not meeting for the sake of meeting. There may or may not be a dedicated workplace.

To navigate this rapidly changing environment of knowledge work, organizations must adapt and transform. Assistance is available. To schedule an initial consultation, email [email protected] or call 707-414-8179.

Virtual knowledge industry and the rise of penturbia

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Regions and towns that boomed in the pre and post WWII industrial decades are now losing population, according to a recent article in The Economist. However, some are paying knowledge workers who can now work most anywhere to move to them in order to bolster their declining tax bases and ability to fund local services and pensions for retired local government workers.

In addition to the move in bonus, they also benefit from lower housing costs than in large metros. The newspaper cites Muncie, Indiana as an example. The city of 65,000 people has since 2021 it offered $5,000 grant entice virtual knowledge workers to make their homes there:

So far 152 people have moved to the city under the scheme, which is run by MakeMyMove, a firm based in Indiana which helps promote the incentive schemes of cities that are willing to pay people to move there. From its foundation in 2017 MakeMyMove has expanded enormously, says Christie Hurst, its spokeswoman, not least thanks to the pandemic, which freed many workers from having to go to an office. The result is a much larger pool of potentially mobile workers over whom cities can compete—hence the growth of the business. Yet a taxpayer gained by Muncie, Indiana, is one lost to somewhere else. And with growth overall slowing, not everywhere can win. In fact, remote-working may only hasten the decline of some struggling places, by making it possible for a worker in, say, Muncie, to relocate to a pretty mountain town in Colorado.

This trend was predicted by socioeconomist Jack Lessinger in his 1991 book Penturbia Where Real Estate Will Boom After the Crash of Suburbia. The penturbs represent America’s fifth major residential settlement pattern: regions and towns that lost population since 1970 but destinated to gain residents in future decades where housing dollars go further than metro suburbs and particularly high-cost suburbs close in to metro centers.

Lessinger’s forecast rise of the penturbs came before advanced telecommunications made possible by the Internet, setting the stage for its acceleration.

Aligning work, outcomes key challenge facing knowledge organizations — not office attendance

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The state of knowledge work has reached an accelerated transitional phase of virtualization and decentralization, beginning with the broad adoption of information and communications technologies (ICT) in the 1980s and 1990s. This megatrend has been sped up by the public health measures during the COVID-19 pandemic. Today’s knowledge work is largely digital, obsoleting analog highways and office buildings. It’s also less tied to what author Dave Rolston dubbed the four dead kings of work: one job duty, supervised by a single manager and performed at a set time and location. Knowledge organizations must now quickly plan how to navigate this paradigm shift relative to the mission and needs of their organizations. They can start by asking themselves these basic questions:

  • To what extent can the organization’s work be accomplished virtually and asynchronously? Who does the work and how is it organized?
  • What work requires co-located staff working in real time and how does this support the mission? How often, where and how and most importantly what are the expected benefits and outcomes?
  • Is the organizational culture like that of a think tank where staff regularly convenes in person to spitball ideas and white board or Kanban them? Or is most thought and planning work done individually?

For many, it might be a mix of this type of synchronous joint brainstorming and async, not bound to time and place, considering the best and most creative thought work often gets done and ideas and solutions to tough challenges bubble up when doing other activities such as exercising, walking the dog, housework and even sleeping.

Should they host two to four week seminars like that of a university where newer staff are tutored by more senior staff? What physical spaces would be most economical for these? Many organizations will find they don’t need dedicated spaces; smart ad hoc co-work locations will do.

It’s imperative organizations address these questions rather than adopting an arbitrary schedule wherein staff commute to an office location a certain number of days or on designated days of the week, referred to as “hybrid.” As coffee badging is showing, this approach isn’t sustainable. Staff morale will suffer if team members feel they are going through the motions without purpose other than to show up at a designated office site. It also fuels resentment, with staff feeling that their personal time is being wasted by unnecessary commuting.

Underlying these questions is a bigger question with major implications: Is the Industrial Age employment model outdated for today’s knowledge work along with its wage and hour requirements and state mandated workers compensation insurance? Does it really make sense with so many knowledge workers working in their own homes rather than a centralized commuter office?

The same question applies to employer medical benefit plans given reform of individual medical insurance in 2010 with the Patient Protection and Affordable Care Act designed to make it easier for individuals to purchase their own plans. Both it and state workers’ compensation laws could benefit from a thoughtful review and updating.

Workers’ compensation insurance mandates on employers could be narrowed to apply only to occupations that require on site duties that pose clear injury risk, saving knowledge organizations money spent on premiums. The Affordable Care Act mandate on large employers to offer group medical benefit plans conflicts with reforms aimed at boosting non-group plans. For now, getting around the mandate would require knowledge organizations to rethink whether their staffs should be classified as employees going forward given the change in the nature of knowledge work.

Some knowledge organizations — information technology companies in particular — tend to hire and fire en masse. Instead of employing, they should consider fully migrating to using contract staff and self-employed people and putting key personnel on retainer. They can be formed into teams to work on short term projects of a year or less as well as longer term initiatives. These outcome based models of knowledge work offer a great adaption to Rolston’s dying kings of work and offer knowledge organizations greater flexibility and significant overhead savings.

Roger Martin, former dean of the Rotman School of Management, suggested knowledge organizations – which he termed “decision factories” in a 2013 Harvard Business Review article – can avoid the cycle of mass hiring and firing by restructuring into flexible teams to work on defined projects rather than hired as permanent employees based on a written job description. That coincides nicely with both Rolston’s assessment of the changing nature of knowledge work as well as its accelerating virtualization.

“Coffee badging” symptom of need to redefine knowledge work

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As some employees are being called back to the office, many are subtly protesting by returning to the office for as little time as possible, Frank Weishaupt, CEO of Owl Labs in Boston, told FOX Business. “Coffee badging is when employees show up to the office for enough time to have a cup of coffee, show their face and get a ‘badge swipe’ — then go home to do the rest of their work,” said Weishaupt. His firm, Owl Labs, which makes 360° video conferencing devices, did a deep dive into the trend’s data. The new trend of “coffee badging” at work is apparently in response to companies’ requirements that more employees return to the office. “Our 2023 State of Hybrid Work report found that only about 1 in 5 workers (22%) want to be in the office full time, with 37% wanting hybrid work options and 41% preferring to be fully remote,” said Weishaupt. 

https://www.foxbusiness.com/lifestyle/coffee-badging-job-trend-business-leaders-high-alert

This phenom is a symptom of the struggle to redefine knowledge work that has been decentralized out of commute-in offices thanks to information and communications technologies that emerged more than four decades ago with the innovation of microcomputers, personal communication devices and the mass market Internet. The momentum and urgency of which increased considerably with the public health measures to slow the COVID-19 pandemic.

Some organizations have resisted the decentralizing trend, insisting their staffs must commute to centralized offices to collaborate in person. But “coffee badging” shows not everyone is on board with the idea – or that any meaningful collaboration is taking place. Particularly if they are showing up to work in a cubicle when they could just as easily get their work done in a home office and avoid wasting an hour or more a day commuting.

The redefinition of knowledge work will require deeper thought in the ICT and post COVID-19 era that has fundamentally altered it. It is no longer about showing up at a set location at a predefined time schedule — two of Dave Rolston’s “dead kings” of work. The new definition will must center on outcomes and goals and how information is developed and communicated to further a knowledge organization’s mission.

Return to office debate and organizational communications culture

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The return to office controversy has been about where knowledge workers work. Due to the sunk cost fallacy, anchoring and present cognitive biases, the management of many knowledge organizations — particularly those with substantial investments in office real estate –– believe that should be in the office most of the week. On the flip side, many knowledge workers disagree, arguing knowledge work is more virtual and doesn’t fit into a factory paradigm of set daily shifts measured by office attendance.

But the issue isn’t merely about office space and cube farms and the commute to them. The larger underlying issue is how work gets done and specifically a knowledge organization’s communication culture. In some organizations, the culture is spoken. Staff talk with each other in real time, in conference rooms, break rooms, and in offices and cubicles. In others, it’s more written and asynchronous, expressed in collaboration and project management platforms, emails and chats.

Organizations whose communication culture is more real time spoken-based are naturally more office centric whereas those that are not are more virtual. The former tend to have more difficulty with non co-located work. Calendars get overloaded with meetings since those are the primary means of communication and decision making. This situation existed for decades before the public health restrictions of the COVID-19 pandemic forced many organizations out of the office. Knowledge workers complain it’s difficult to get work done in a day filled with meetings; the dominant speaking communication culture interferes with more concentrated thought work. When done virtually, it leads to “Zoom fatigue.”

In some organizations, management frowns on staff informally chatting among themselves, thinking they are not getting any work done. Ironically, these same organizations argue staff must be in the office to bump into each other and talk informally, contending these activities promote collaboration and serendipitous creativity. So there’s a bit of a conflict going on between these expectations that requires organizations to engage in some honest introspection. If real time, spoken communication is truly at the core of an organization’s communications culture, management must determine how that’s best done: where, when and how often and for what purposes.

For those organizations looking to become less office-centric, their challenge is to build a communications culture based more on asynchronous written communication and select the collaboration and project management platforms that best support it.

At its core, return to office debate about redefining knowledge work

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Personal computing and communication devices and the Internet have decentralized knowledge work and made the daily trip to centralized commuter offices (CCOs) obsolete. Knowledge workers discovered its irrelevance and enjoyed recovering personal time spent commuting during the public health social distancing measures in response to the COVID-19 pandemic.

Now as some organizations demand they return to the office (RTO) on a set number or designated days of the week, many are understandably rebelling.

But the real debate isn’t about showing up in person at the CCO on a prescribed number of specific weekdays. It’s about redefining knowledge work and specifically how it’s done and managed.

In his 2013 book 2013 eBook Four Dead Kings at Work: The Decentralization and Blending of Work in the 21st Century, author Dave Rolston predicted the imminent death of the four primary tenets or kings of knowledge work in the Industrial Age:

  1. Set job duties;
  2. Managed by a single manager;
  3. Performed at one place (the CCO);
  4. At the same time (8-5, Monday-Friday).

This definition worked well before 1990 when the tools for knowledge work were at the workplace and not portable like today’s personal devices, online databases, collaboration platforms and more recently, AI chatbots.

Now, organizations and knowledge workers must adjust to the post-Industrial Age environment. That entails determining when co-located work is beneficial and when it isn’t. It also requires assessing the communications culture.

When knowledge workers were regularly in the CCO, meetings — both scheduled and ad hoc — were frequent. Even too frequent for many knowledge workers. They express a real time, speaking-based communication culture.

To fully utilize today’s communication and collaboration tools, knowledge organizations must adopt a more written, asynchronous communication culture. They also must find the right balance between this and spoken communication and when knowledge workers must be assembled to discuss and sort through complex and difficult issues that benefit from synchronous, in person discussion. That is driven more by business needs to complete reports and projects and reach decisions rather than the daily calendar.

It’s also critical that knowledge organizations keep their missions clearly communicated to staff so they can see how their work makes a meaningful contribution as this article in today’s Wall Street Journal implies.