ICT innovators like Yahoo and IBM struggle with forces of decentralization they’ve unleashed

“Everyone I know is very upset,” says one employee, who like most interviewed asked to remain anonymous while discussing an employer. Some workers furiously began looking for new jobs. Others say they have stopped contributing to long-term projects because they aren’t sure whether they’ll be around in the future. “Source: qz.comThey can say “goodbye” to the best and brightest talent. Iike Yahoo and Best Buy, IBM is in deep trouble. Somehow that seems to create a “circle the wagons” reaction. But the connection between co-location and collaboration or innovation has NOT been proven. Many of the studies often cited in these arguments date back to the early 1990s when working at a distance was much more difficult.

Source: IBM’s recall of remote workers sounds like a death rattle. Say “goodbye” to the best and brightest. – Global Workplace Analytics

 

 

 

 

 

 

 

 

 

 

 

This post by Global Workplace Analytics raises an excellent point that calls into question the value of information and communications technology (ICT) that makes collaboration possible without daily co-location and the commuting necessary to support it. It reflects the difficulty that even ICT innovators like IBM and Yahoo have coping with the society altering forces they’ve unleashed that make the commute-in office all but obsolete.

Bay Area commuters back taxes to pay to improve road, transit – SFGate

Bay Area residents have grown so exasperated by worsening traffic and the paucity of government money to make things better that they’re willing to tax themselves to pay for a regional program of improvements.That’s according to a poll released Friday, just two days after Gov. Jerry Brown and Democratic state legislators announced a transportation funding plan that would boost fuel taxes and vehicle registration fees for $52 billion in road and public-transportation improvements. Two years in the works, the plan would deliver much-needed funding for transportation but still leave many needs unfunded.

Source: Bay Area commuters back taxes to pay to improve road, transit – SFGate

Those long suffering commuters have a much lower cost solution thanks to the ingenuity of the Bay Area’s information technology companies. And it’s already available to them without the need for new taxes. Knowledge workers can utilize ICT to work at home and in their communities instead of getting into their cars and onto crowded freeways to drive to an office.

As management guru Peter Drucker sagely asked, “What is the point of spending such huge sums to bring a 200-pound body downtown when all you want of it is its eight-and-a-half-pound brain?”

SF Bay Area paradox: 21st century ICT leader chokes on 20th century rush hour traffic

“Congestion is having a dramatic impact on the quality of life in the Bay Area,” said Jim Wunderman, CEO of the Bay Area Council, a business lobbying group active in transportation issues. According to the study, drivers in the San Francisco area, which includes the inner East Bay, the Peninsula and the South Bay, wasted 83 hours sitting or creeping along in traffic in 2016. Last year’s survey, which used a different methodology, ranked San Francisco second in the nation, tied with Washington, but behind Los Angeles. Bay Area drivers in 2015 wasted 75 hours in traffic. Congestion causes San Francisco-area drivers $1,996 a year per person in wasted time, Inrix concluded, compared with a national average of $1,400. […] Bob Pishue, Inrix’s senior economist and study co-author, said San Francisco’s congestion during the morning and evening commutes is the worst in the nation, particularly on city streets. In the Bay Area, Wunderman said, the long, slow commutes combined with the rising cost of housing are starting to drive away some job seekers and could have the same effect on employers. “I hear anecdotally from companies all the time about problems with people getting to their jobs,” Wunderman said.

Source: SF traffic ranks as 4th worst in world

This puzzling paradox continues. The San Francisco Bay Area and nearby Silicon Valley are home to many of the world’s information and communications technology (ICT) leaders. But the region continues to function as if it were 1965 when everyone commuted to the office because there was no Internet yet and all the tools knowledge workers needed to do their jobs were still at the office. And that none of the innovations its companies have created exist, tools that have decentralized knowledge work and the centralized, commute-in office, effectively obsoleting daily commute trips that are choking its streets and highways.

We have the “killer app” to slay rush hour traffic congestion

Los Angeles has topped the INRIX Global Congestion Ranking to be named the most gridlocked city in the world. Carried out by INRIX, Inc., experts in transportation analytics and connected car services, the research looked at traffic congestion in 1,064 cities across 38 countries worldwide, making it the largest study ever of its kind.Los Angeles took the number one spot after the results revealed that in 2016 drivers in the city spent 104 hours in congestion during peak time periods, followed by Moscow (91 hours), New York (89 hours), San Francisco (83 hours) and Bogota (80 hours). Sao Paulo came in sixth, followed by London, Atlanta, Paris and Miami. The US was also named the most congested developed country in the world, with the country accounting for 11 of the top 25 cities worldwide with the worst traffic congestion and with drivers on average spending 42 hours a year in traffic during peak times.

Source: Los Angeles named the most gridlocked city in the world

The Industrial Age has shown we can’t build our way out of gridlock due to what transportation planners term induced demand. Self driving cars and “smart city” traffic controls aren’t the answer either. There’s only so much real estate in crowded metro areas. That’s why they are congested and housing there sells at a premium beyond the reach of most.

We already have the “killer app” to address this problem in the increasingly post industrial, information economy: Internet-based telecommunications technology. It eliminates the need for unnecessary peak hour travel to centralized, commute-in offices since it enables the knowledge and information work traditionally done in offices to be accomplished most anywhere. One no longer needs to sit for hours in rush hour traffic to send email to co-workers and clients, write a report or collaborate on a project.

There are also adverse health as well the obvious environmental impacts of so many vehicles idling on clogged freeways. All that sitting and stress contributes to preventable health conditions as it becomes apparent that like adding more freeway lanes to ease traffic congestion, we cannot medically treat or spend our way to health. Office workers need to get off their butts and out of their cars move around and be active. The most accessible setting for most is in their communities, using the freed up time now unnecessarily wasted on commuting.

ICT offers big part of solution to housing affordability crisis — and federal infrastructure initiatives should fund it

The biggest constraint, Holman said, is a lack of available land. “Southern California is pretty spread out and opportunities for large-scale developments are often far from where people want to live,” he said.

Source: Middle-class workers can’t afford to buy homes in L.A. County and the future looks dim

People naturally want to live close to where they work in the traditional, Industrial Age paradigm where they work in centralized, commute-in locations. Problem is as this article illustrates is that concentrates demand that drives up the cost of housing to the point that it becomes unaffordable for most.

 

 

 

 

 

This is where today’s advanced information and communications technology (ICT) offers a solution at least for the many knowledge workers who engage in the no win tradeoff of commuting long distances in search of affordable housing. ICT distributes knowledge work out of high cost metro centers, making it possible to perform in outlying and less densely populated areas where housing dollars go further. That’s why major federal infrastructure plans currently under consideration should include funding for telecommunications infrastructure that puts these areas on a par with that found in densely populated areas.

Survey shows shift away from traditional employment “larger than previously recognized.”

Overall, we estimate that the independent workforce is larger than previously recognized: some 20 to 30 percent of the working-age population in the United States and the EU-15 countries are engaged in some form of independent earning today. More than half of them use independent work to supplement their income rather than earning their primary living from it. The majority of independent workers, both supplemental and primary earners, pursue this path out of preference rather than necessity—and they report being highly satisfied with their work lives.

This from the executive summary of a just issued survey by McKinsey Global Research illustrates the erosion of the traditional concept of employment, anchored by what author Dave Rolston described in his 2013 eBook Four Dead Kings at Work as the crumbling pillars of the traditional notion of working for a living: holding one job, located at one place, being there at the same time every day and reporting to a single manager.

As I wrote in my own eBook Last Rush Hour: The Decentralization of Knowledge Work in the Twenty-First Century, a driving factor is the decentralization of knowledge work due to the proliferation and maturation of information and communications technology. Before, knowledge workers had to work in a single location – a commute-in office – because that’s where the tools they needed to do their work – typewriters, telephones, photocopiers, in-house central computer systems – were. Even though obsoleted, this outdated model remains in place and continues to define employment. If you don’t commute to an office to work 8-5, Monday through Friday, you’re not in the traditional employment arrangement. Or “trapped in a cubicle” as the McKinsey Global Research report put it in the introduction.

We’re currently in a transition between this Industrial Age model of knowledge work that pays for time worked to one based on work projects and milestones completed. Time worked is fundamental to the legal definition of employment in the United States that keeps the Industrial Age model largely in place. It’s one of Rolston’s dying kings: one timeframe (8 hours a day, 40 hours a week) along with working in set office location for a single manager. But it won’t go away quickly as the tension between the old and the emerging models plays out.

Ongoing paradox of SF Bay Area that underutilizes ICT, chokes on traffic congestion

If it seems as if you’re spending more time behind the wheel than ever, it’s not an illusion. Since 2010, the amount of time Bay Area drivers endure crawling along in freeway congestion has soared 70 percent.That’s the highest level of “congested delay” — time spent in traffic moving at speeds of 35 mph or less — since traffic experts began keeping track in 1981.

Source: Drive across Bay Bridge tops list of Bay Area’s worst commutes – SFGate

The San Francisco Bay Area continues to underutilize its signature product — information and communications technologies (ICT) — that could make a big dent in its world class traffic congestion by reducing commute trips.

Instead of commuting along freeways to offices located elsewhere in the Bay Area, ICT enables knowledge workers to remain at home or in the communities rather than playing road warrior each work day. But the Industrial Age commute to the office habit is proving to be very enduring even as traffic congestion and associated delays and adverse quality of life impacts continue to increase.

ICT, declining role of CCO forcing redefinition of knowledge work

The maturation and proliferation of information and communications technology (ICT) is upending the concept of knowledge work. During the late Industrial Age, knowledge work meant working Monday through Friday 8-5 in a commute-in office. If a knowledge worker made the commute and showed up every workday, 8 hours a day, 40 hours a week — ipso facto they were performing knowledge work. As Dave Rolston wrote in his 2013 eBook Four Dead Kings at Work, these strictures of time and place are breaking down.

In the process, that collapse is forcing a redefinition of knowledge work to mean, well, work and specifically the work product — and not a daily trip to appear at a centralized commuter office (CCO). After all, that daily commute adds no intrinsic value and in fact extracts significant personal cost from knowledge workers that can reduce their morale and interest in what really counts – their work projects.

The current time is one of transition away from Rolston’s dying kings of the traditional workplace. Take, for example, the growing buzz on workplace flexibility and telework or virtual/remote work. It represents a shift away from the CCO and illustrates the tension between the traditional CCO and new, emerging ways of performing knowledge work beyond the CCO.

The CCO took many decades to be established and knowledge organizations have invested enormous sums in them. So even though ICT has effectively obsoleted them by distributing knowledge work outside the CCO, they won’t disappear overnight. But their role will fade as time goes on. In the meantime, a new definition of knowledge work will be formed that is independent of the CCO.

Plumbing the paradox of Silicon Valley: Where culture trumps ICT

The late management master Peter Drucker’s perhaps most quoted aphorism is “culture eats strategy for breakfast.” In California’s Silicon Valley, culture makes a daily meal of a key benefit of its products and services: information and communication technologies (ICT) that decentralize and make knowledge work – now the essential activity of Silicon Valley with most if not all manufacturing done outside of the area – location independent.

As a geographical location, Silicon Valley has effectively obsoleted itself but doesn’t know it yet or simply cannot accept it. There are a couple of reasons why Silicon Valley remains defined by location even though for much of the world, Silicon Valley connotes ICT innovation rather than a spot on Google Earth.

First is its founding in the 1960s. Intel made microprocessors there. Hewlett Packard manufactured test instruments and minicomputers in Silicon Valley. Late in the following decade, Apple Computer got its start there. These companies all predated the information economy even though their products would later give rise to it as the 20th century drew to a close. As manufacturers, their cultures are heavily based on the Industrial Age paradigm of commuting in daily to a centralized work location: the plant and the office.

That cultural touchstone combines with a second powerful element that reinforces daily commute trips to Silicon Valley companies: Stanford University. Stanford and Silicon Valley’s proximity to it was the academic component of Silicon Valley’s synergy of the early years that brought together academics and cutting edge engineers. Stanford lent Silicon Valley an academic, campus culture that remains in place today. Silicon Valley companies honor that culture by regarding their headquarters as “campuses.” Apple and Google have built enormous mega campuses that offer the amenities of the most modern college campus such as gyms, food service, and laundry facilities (but without the dorms).

The raison d’etre of the campus is another c-word: collaboration. Silicon Valley’s campus culture is strongly tied to the belief that collaboration can only truly occur on the campus in real time, face to face — much like graduate fellows discussing the latest theories of quantum mechanics. That discussion might produce an important breakthrough.

In 2012, Yahoo! CEO Marissa Mayer and Hewlett-Packard soon thereafter paid homage to the campus culture by ordering staff to report to the office daily and cease working from elsewhere. Enforcing the collaborative campus setting was the hoped for secret sauce to lift these companies fortunes during a challenging time in their histories. The campus culture combined with Silicon Valley’s Industrial Age roots also spawned the so-called “Google Bus” that transports staff back and forth daily between their homes in San Francisco and the corporate campus.

Even though the very ICT tools Silicon Valley brought to the world make collaboration possible anywhere and in real-time and non-real-time via voice, text and video, its Industrial Age roots and campus culture continue to define it today. But with it comes the huge and unnecessary cost of a time sucking commute and horrible traffic borne daily by Silicon Valley workers.

Decentralization of knowledge work supports wellness

One of the most obvious but overlooked strategies for knowledge organizations to improve and support the wellness of their staff members is dispersing knowledge work out of centralized, commute-in offices to the communities where they live — in home offices and shared satellite and co-working spaces. That eliminates the daily commute, shown to be adverse to wellness and frees up time that can be devoted to health promoting behaviors like more sleep, daily exercise, better diet (by avoiding daily take out meals) and social time with family and community.

For more on a community-based (versus centralized workplace) strategy for supporting wellness, click here.