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

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.

Tipping point: Virtualization and decentralization of knowledge work disrupting traditional concept of employment

Under the traditional concept of employment, an employer sets the conditions of employment: When, where and how the work is to be done by employees. That is colliding with the virtualization and decentralization of knowledge work. Advances in information and communications technology (ICT) over the past five decades have rendered time and place far less relevant. Knowledge work can now be done most anywhere and at any time.

This shift didn’t happen overnight but over the past five decades. Its sudden acceleration since the 2020 pandemic follows a pattern where meta change grows slowly and then reaches a tipping point. That tipping point is now at hand. Some knowledge organizations are navigating it without much trouble while others are struggling to adapt as the former centralized office-based model gives way.

Employment in knowledge work as it has been understood will likely be reformed. That understanding included an expectation that because knowledge work was confined to a particular time and place, knowledge workers must expend their own time and resources in order to physically occupy that designated space and time.

That expectation is naturally now being questioned. Knowledge workers owe a duty to perform their work to the best of their ability for the organizations that retain them. Nothing more can be reasonably expected of them. And that includes a school/classroom like attendance policy that does nothing to further their efforts or the missions of the organizations they serve.

The knowledge work diaspora

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.”

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

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.

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.

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

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.

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

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.

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

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.

Hybrid work is not the future, says Meta’s former director of remote work | Fortune

Hybrid, Dean told Fortune in an interview, isn’t actually an even split between remote and in-office work, despite bosses who insist it’s a huge step forward. Plus, she adds, the office is never going to be a solution to existing problems of productivity, innovation, or creativity. “Those are all how to work problems, not where to work problems,” she says. “The office won’t solve these problems. New ways of working will. This is a watershed moment of innovation of how work gets done, but we’re still talking about the f–king watercooler.”

Source: Hybrid work is not the future, says Meta’s former director of remote work | Fortune

That’s Annie Dean, VP of Team Anywhere at Atlassian, a distributed work policy at the software firm that encourages asynchronous, flexible work.

In 2011, author Dave Rolston announced the death of four “kings” of knowledge work and specifically how it’s performed: 1/ In a single, dedicated job role; 2/ Managed by a single manager; 3 /At one time (8-5, M-F). And finally, 4/ At a single location: the centralized, commute in office (CCO).

That fourth king is going through violent death throes as seen in the context of the hot debate over working from home vs. working in the CCO. It was about to climb onto its death bed prior to the public health restrictions of the COVID-19 pandemic. It’s now laying upon it and drawing its last breaths.

While those in Rolston’s school of thought are proclaiming that king is dead, many organizations insist it isn’t, essentially shouting “Long live the king!” As noted in the Fortune article, those exclamations are driven in large part by the cognitive bias of sunk cost investment, with organizational leaders believing they must somehow recover the cost of CCO purchases and leases even if the CCO is no longer necessary to fulfilling the mission. We need that king to stay alive at least until that significant investment is recouped.

Dean is correct describing hybrid work in CCOs part of the work week as office-centric since the CCO remains as the primary workplace. (Similarly, the term “remote” work keeps the CCO at the relative center). Dean is also correct in framing the debate over hybrid working in the larger context, more than simply where knowledge work gets done as Rolston wrote more than a decade ago. As Dean notes, it’s how it’s done with modern day tools including microcomputers, the Internet and various communication and collaboration platforms. Those tools have disrupted, decentralized and transformed knowledge work as well as our traditional notions of it. It’s natural to want to return to the familiarity of co-located working rather than make a committed effort to adapt to something new.

Disruptive change is understandably uncomfortable for many knowledge organizations. Knowledge organizations themselves will be transformed. Like the traditional location of where knowledge work is done (the CCO), in the near-term knowledge organizations will no longer define themselves by their metro location, campus or high-rise headquarters.

Dean touches upon a major adaption knowledge organizations must surmount. It’s also one of Rolston’s four dead kings: doing knowledge work at the same time. With its decentralization out of CCOs comes working more asynchronously. This has been a big challenge for many knowledge organizations that have a spoken communication culture primarily dependent on real time discussions as the usual way of assessing information and making decisions. That has led to widespread complaints of back to back video meetings and “Zoom fatigue.” To work more asynchronously, knowledge organizations will have to shift their communications culture to rely more on written communication and reflection rather than frenetic jumping from one meeting to another. Knowledge work doesn’t have to be crazy and it’s not the emergency room as the authors of this book advise. Good knowledge work benefits from calm thought.