centralized commuter offices

Virtualization and decentralization of knowledge work requires organizational communication, cultural transformation

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The virtualization and decentralization of knowledge work requires knowledge workers to learn new ways of working. Primarily, learning to work without communication in the same time and place as they did when they commuted daily to centralized commuter offices.

The learning curve they face became painfully apparent during the public health restrictions taken during the COVID-19 pandemic. Knowledge workers continued to work as if they were in person at a commute in office through video conferencing platforms. Soon “Zoom fatigue” set in with back-to-back meetings filling each day.

The meetings were necessary because of a dominant real time, spoken communication culture. Some organizations continue to maintain this culture and concluded that once the pandemic was no longer a threat, staff should once again commute to the office so they could continue meeting face to face and in real time.

Advances in information and communications technology has deemphasized the need for synchronous, co-located knowledge work in a centralized, commute in office space. Knowledge organizations are now adjusting and adopting new tools and practices. In order to do so, they are shifting from a spoken to written communications culture. A recent Washington Post story highlights social media platform Bluesky.

Employees write proposals that the team debates, looking for holes in ideas. They gather in person one week a quarter and in smaller groups throughout the year to foster collaboration. “When somebody tosses out an idea, I say, ‘Write a proposal!’” said Paul Frazee, Bluesky’s chief technology officer, who said the company’s way of working makes him confident in remote work indefinitely. “In some ways, this was the only way we could do this,” added Rose Wang, Bluesky’s chief operations officer.

Another company cited in the Post story is Atlassian, an Australian software company that specializes in collaboration tools designed primarily for software development and project management. Atlassian has a “culture of documentation,” based on “shared documents, messaging systems and video to help employees capture meetings and comments and collaborate even though they may workat different times,” the newspaper reports.

According to the story, Atlassian has reduced its officespace and reinvested the savings in bringing employees together. This is another critical component of the shift to a virtualized, decentralized style of knowledge work, recognizing the social nature of human beings. The human mind is very capable of competently performing thought work alone. But people also need to feel connected to others, something that has to be intentionally cultured and doesn’t necessarily exist even in organizations where staff works regularly in a cube farm.

Thought work doesn’t require a centralized commute-in office

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As knowledge or thought work as it’s called becomes virtual and is done outside of centralized commuter offices, some knowledge organizations nevertheless believe it must be performed co-located, factory style. According to Roger L. Martin, knowledge organizations are indeed factories – “decision factories” as he termed them in a 2013 Harvard Business Review article.

The process of reaching decisions involves a lot of thought work and analysis that by definition is not tied to a physical location in time and space. That’s because it occurs in the brains of thought workers. In teams and project work groups, they share information and exchange ideas and insights as they move toward decisions.

Sometimes that involves in person brainstorming sessions with Kanban and white boards in smart conference rooms. But in most organizations, that’s not a daily activity that requires knowledge workers to commute to an office daily and incur the personal expense of the commute. They can do their work from their homes or other nearby location without the need for them to climb into a vehicle and travel to an office, often distant from their homes.

Virtualization of knowledge work could portend major downsizing trend

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As knowledge work is virtualized and decentralized out of commute in offices with modern information and communication technologies, some organizations are questioning their space needs. And concurrently, apparently also their staffing levels. They are doing so by adopting mandatory office attendance policies as a condition of employment. Those who don’t show up face being asked to resign or be terminated.

A big question going forward is once those positions are vacated when their former occupants depart is whether they will be filled again or eliminated.

If the latter, the virtualization and decentralization of knowledge work also portends a new era where organizations no longer permanently employ large numbers of knowledge workers, concluding they can fulfill their missions with significantly reduced staffing levels. This is a critical issue since for most organizations, human resources and office space make up their biggest overhead expenses.

This has substantial implications. It could redefine knowledge work as primarily project versus employment based where knowledge work is delineated by a set job description and duties. That in turn could lead to increased use of consultants, contract staffing and professional service firms that many knowledge organizations are already utilizing.

The knowledge work diaspora

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Knowledge work — also referred to as thought work — aims to develop information into actionable plans and reach decisions about them. For private sector organizations, that includes product or service development, marketing strategy and planning logistics and access to resources. For governments, it’s how to implement public policy and develop programs and budgets to support them.

None of these functions necessarily require knowledge workers to gather regularly in dedicated office space though they might find it beneficial to gather on occasion, perhaps in a day or week-long intensive Kanban or brainstorming session as well as to strengthen social bonding among team members. With communication and collaboration possible from most anywhere to perform these functions, a physical space now must demonstrate that benefit since the traditional office it is no longer the default setting for knowledge work. Nor is it practical or cost effective for large numbers of knowledge workers to regularly commute to one.

This fundamental shift in knowledge work has produced a knowledge work diaspora out centralized commuter offices. It’s upending our concept of knowledge work. Some knowledge organizations that have traditionally viewed their workforces like factory parts inventories are physically inventorying them in office spaces. They have done so by ordering their staff members to report to offices – referred to as “return to office” for what is effectively a census of commitment. If they are not there, they’re not counted, discounted for promotions and even dismissed. They are reassessing the size of their staffs and future office space needs since both of these have been traditionally measured by staff office presence.

The rapid emergence of AI in knowledge work adds a new wrinkle. It requires sizable space for its servers, but unlike humans doesn’t need office space. It too will hasten the diaspora of knowledge work as it was known before ICT began to change it decades ago.

This is a time of great change among knowledge workers and organizations that will require rethinking and adjustment. Or what futurist Alvin Toffler described as developing a form of postmodern literacy when he said “The illiterate of the future are not those who can’t read or write but those who cannot learn, unlearn, and relearn.”

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.

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.

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.

Leased/owned office space downsizing likely to accelerate

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Knowledge work is currently in an awkward transition out of centralized commuter offices (CCOs) and dispersed to home offices. Many organizations have adopted what’s referred to as “hybrid” arrangements with staff working in the CCO a set number of scheduled days, typically two or three days a week. For knowledge workers, the hybrid arrangement is disruptive. The vast majority need only one workspace as shown during the COVID-19 public health measures.

A home office is that location. It provides convenient access to food and coffee that fuel knowledge work, particularly given many if not most CCOs lack on site cafeterias. In addition, workspaces are customized to knowledge workers’ preferred equipment and ergonomics. Some, for example, may prefer sit/stand desks or kneeling chairs that aren’t present in both home offices and CCOs. Finally, their most portable knowledge work tool – the brain – does not require multiple locations in order to function effectively.

The homes of some knowledge workers don’t offer a good office setting. They may not have a suitable space for a home office setup or other circumstances that make it impractical as a regular workplace. These staff need and prefer the CCO to get their work done. But they are a small minority and don’t justify the amount of office space organizations must finance. They can get by with only a fraction of their current owned and leased space and considerably reduce operating expense.

Organizational management is recognizing the trend and potential sizable cost savings and rightsizing their office space footprints accordingly. Expect this to accelerate over the next few years.

Work from home still reigns as offices plan to reopen – Los Angeles Times

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Human beings have not been fundamentally changed by the coronavirus, Dezzutti said, and will again seek one another’s company in busy metropolises.

“In history, there has been no pandemic or plague or natural disaster that’s killed off the city,” he said. “Our need to live and work in urban clusters, and the concentration of people and economic activity that occurs there, is just too strong.”

Source: Work from home still reigns as offices plan to reopen – Los Angeles Times

This analysis overlooks a powerful trend over the past two decades of information and communications technology decentralizing knowledge work out of urban centers. Also, high housing costs in urban areas and hours wasted commuting from more affordable outlying portions of metros that come with too high a cost for daily gathering in a centralized, commute-in office. True, humans are social beings and like to gather. But they most naturally do so in close proximity to where they live.

Pandemic hastens end of the centralized commuter office, heralds “Distributed Age.”

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A year after the coronavirus sparked an extraordinary exodus of workers from office buildings, what had seemed like a short-term inconvenience is now clearly becoming a permanent and tectonic shift in how and where people work. Employers and employees have both embraced the advantages of remote work, including lower office costs and greater flexibility for employees, especially those with families. Beyond New York, some of the country’s largest cities have yet to see a substantial return of employees, even where there have been less stringent government-imposed lockdowns, and some companies have announced that they are not going to have all workers come back all the time.

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“We believe that we’re on top of the next change, which is the Distributed Age, where people can be more valuable in how they work, which doesn’t really matter where you spend your time,” said Alexander Westerdahl, the vice president of human resources at Spotify, the Stockholm-based streaming music giant that has 6,500 employees worldwide.

Source: Remote Work Is Here to Stay. Manhattan May Never Be the Same. – The New York Times