decentralization of knowledge work

Trump administration Infrastructure Initiative would fund efforts to reduce metro rush hour traffic

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The Trump administration’s 2018 Infrastructure Initiative contained within the administration’s fiscal year 2018 budget proposes work be performed outside of commute-in offices and during regular business hours in order to reduce traffic congestion in American metro areas. This was among a half dozen proposals will be pursued by the administration as part of the Infrastructure Initiative laid out in this fact sheet:

Incentivize Innovative Approaches to Congestion Mitigation. The Urban Partnership Agreement Program – and its successor, the Congestion Reduction Demonstration Program – provided competitive grants to urbanized areas that were willing to institute a suite of solutions to congestion, including congestion pricing, enhanced transit services, increased telecommuting and flex scheduling, and deployment of advanced technology. Similar programs could provide valuable incentives for localities to think outside of the box in solving long-standing congestion challenges. (Emphasis added)

The advanced technology that can do the most to decentralize knowledge work and commute-driven traffic congestion is advanced telecommunications technology that enables knowledge workers to work in their communities rather than commuting daily to a remote office, generating unnecessary transportation demand that is taking a toll on the nation’s aging roads and highways. The administration should fund the rapid deployment of fiber optic telecommunications infrastructure to homes and community co-working spaces in order to achieve this objective.

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

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“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.

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

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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.

Decentralization of knowledge work supports wellness

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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.

Telecom critical infrastructure for 21st century as knowledge work is decentralized

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But the goal of the “Tri-Gig High Speed” initiative is to offer a broadband infrastructure that is as affordable as possible and will meet the technological needs of businesses, public and educational institutions, and local residents, said Jane Nickles, chief information officer for the city of Greensboro. The Triad is one of several regions across the country striving to offer high-speed gigabit Internet access as a way to attract and retain businesses.“This is really an economic development initiative,” Nickles said. “Businesses are going to want to locate where they can get the high-speed broadband access and where their employees can get it because it opens up those possibilities of things that can be done outside of the office and done from home.”

Source: Triad cities, universities seek contractors to provide high-speed Internet access – Greensboro – Triad Business Journal

Nickles’ comments illustrate the very important role of telecommunications infrastructure in the 21st century. It’s as critical to the 21st century economy as transportation infrastructure was to the previous one. Particularly as performing knowledge work — centralized in metro centers in the 20th century — becomes decentralized and often performed outside the centralized commuter office and at home as Nickles notes. An added benefit is reduced transportation demand at the same time much of the transportation infrastructure is aging and in need of major overhaul.

Words of IT Wisdom From Silicon Valley to Governments

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[I]t’s no longer practical to have a centralized IT operation, where city governments design and build large-scale computer programs that can take years to implement, are rarely delivered on time and are often over budget. Instead, Keene wants cities to break up big technology projects into more manageable pieces that can be built more quickly, an idea called “agile development” that is already a growing trend in public sector IT. Keene also wants cities to rely less on expensive hardware and take advantage of cloud computing. “We’re moving everything we can into the cloud,” he says. “It’s absurd to keep maintaining all those server farms.”

Source: Words of IT Wisdom From Silicon Valley to Governments

Nightmare Building

That same decentralization principle also applies to the knowledge workplace. It no longer makes sense to have knowledge workers assemble daily in a centralized, commute-in office. Just as information and communications technology has outmoded the proprietary, on premise server, it has also obsoleted the office building as knowledge work becomes an activity that can be performed anywhere with a decent Internet connection to the server cloud.

German push for universal Internet service recognizes decentralization of economy

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Germany will make an additional 1.3 billion ($1.45 billion) euros in funding available to expand broadband internet access to poorly-connected regions, the Transport and Digital Infrastructure Ministry said on Friday.

The government announced plans last October to spend 2.7 billion euros as part of a push to give all households in Germany access to internet speeds of at least 50 megabytes per second by 2018.

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Better access is viewed as a crucial part of Germany’s so-called Digital Agenda, which aims among other goals to promote the digitization of industry by connecting factory floors to the internet.

Many of Germany’s small-and-medium-sized companies – known as the Mittelstand and which form the backbone of the economy – are located in rural areas.

Source: Germany boosts funds for faster internet to 4 billion euros

The last paragraph points up the profound power of advanced telecommunications to transition the economy away from the Industrial Age model where economic activity is centralized in large enterprises located in major metro areas. Apparently that’s not the case in Germany — and is likely be increasingly so in other advanced nations in the age of the Internet.

This is the first national policy that implicitly recognizes that smaller businesses located outside of central metro regions will play a key role in the evolving economy and thus require advanced telecommunications infrastructure. This also reframes what is generally referred to as “rural broadband” into larger national economic issue.

If Work Is Digital, Why Do We Still Go to the Office?

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The transformation of our work environments is only just beginning, but it could have a major impact on architects, developers, corporations, and society at large in the years to come. Far from making offices obsolete, as the digital pioneers of the 1990s confidently predicted, technology will transform and revitalize workspaces. We could soon work in a more sociable and productive way, and not from the top of a mountain. The ominous “death of distance” may be reversed with the “birth of a new proximity.”

Source: If Work Is Digital, Why Do We Still Go to the Office?

This analysis ignores what I would term the “tyranny of distance” that comes into play with daily commute trips to centralized office buildings. And that tyranny extracts an enormous and now unnecessary cost from knowledge workers in lost personal time, stress and daily travel expense.

The 1990s visionaries (and for that matter, those that preceded them in the 1960s (Arthur C. Clarke: “Men will no longer commute, they will communicate”) and the 1970s (Alvin Toffler and the “electronic cottage”) were right: information and communications technology disintermediates distance. It has now matured to the point that the daily commute is obsolete and collaboration can be done virtually with the occasional in-person meeting to reinforce social ties.

High urban rents and falling rural land prices drive flight of startups to countryside – Workplace Insight

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We’ve reported before on the flight of tech firms and other startups from the UK’s cities to the countryside. Now it appears that 2016 will see an acceleration in the exodus, as a consequence of the perfect storm of expensive rents in the cities, falling rural land prices and a growing number of people using technology and improving digital infrastructure to live somewhere they feel they have a more balanced life. That is the striking conclusion of a new survey from the Royal Institution of Chartered Surveyors (RICS) and Royal Agricultural University (RAU) indicates. Over the second half of 2015, non-farmers, such as those starting-up cottage industries, accounted for around 25 per cent of rural land sales. This figure was up from just 18 per cent in the first half of 2015, according to the RICS/RAU Rural Land Market Survey H2 2015 and the trend was strongest in South East England where non-farmers accounted for 32 per cent of all sales.

Source: High urban rents and falling rural land prices drive flight of startups to countryside – Workplace Insight

In my eBook Last Rush Hour: The Decentralization of Knowledge Work in the Twenty First Century, I discuss this migration trend first predicted by Jack Lessinger in his 1991 book Penturbia: Where Real Estate Will Boom After the Crash of Suburbia.

Lessinger’s book identified real estate microeconomics as the key driver: lower and more affordable housing costs in smaller locales where housing prices declined during the post World War II suburban boom. Less than a decade after Penturbia was published, the Internet came into widespread use, enabling the decentralization of knowledge work out of large metro areas to less populous ones, adding a powerful accelerant to the shift.