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.

A great post pandemic sorting among knowledge workers and organizations at hand.

More than a year into America’s great work-from-home experiment, many companies have hailed it largely as a success. So why do some bosses think remote workers aren’t as committed as office dwellers? Recent remarks of numerous chief executives suggest the culture of workplace face time remains alive and well. At The Wall Street Journal’s CEO Council Summit this month, JP Morgan Chase & Co.’s Jamie Dimon said remote work doesn’t work well “for those who want to hustle.” Goldman Sachs CEO David Solomon has called it “an aberration that we are going to correct as soon as possible.”

Source: Bosses Still Aren’t Sure Remote Workers Have ‘Hustle’ – WSJ

These comments demonstrate that for some organizations, gathering daily at a centralized, commute-in office (CCO) is an integral part of their cultures that cannot be easily erased in a single year. But it should be borne in mind that while CEOs have a large degree of influence on their organizational culture, it’s not absolute. Cultures are defined by all their members.

Now that their staff members have been freed of the personal time burden of daily commuting, many are understandably reluctant to reassume it. Knowledge organizations are now having to redefine their cultures for the post pandemic world going forward. They’ll undergo a sorting process as some staff depart for more virtual organizations while others who prefer working in a CCO align with CCO-based organizations — most likely those who live close by.

Certainly working in a CCO has its advantages, such as the social contact and in person communication with colleagues. But as commutes grow longer as metro areas sprawl and housing costs rise, the daily trip to and from a distant CCO becomes impractical where it might not be in small towns and less congested areas where knowledge workers can commute to the office by foot and/or bicycle. These less populated locales have also proven popular as CCOs closed down over the past year and knowledge workers sought more affordable and less congested settings, some in other states and countries.

Some knowledge CCO-based organizations may become the office equivalent of teaching hospitals where senior staff and managers closely interact with and supervise more junior staff and inculcate them in the cultural ways of their organizations. Others such as boutique consulting shops won’t have CCOs and attract as they have in recent years experienced people who can work as location independent team members and don’t require close supervision.

Pandemic forced organizational change, shattered Industrial Age boundaries defining knowledge work

Pandemic social distancing restrictions served as an organizational change intervention, forcing knowledge industry organizations to reassess their cultures and beliefs about how work gets done. Pandemic restrictions virtually overnight switched off the gravity that pulls knowledge workers into a centralized, commute-in office workspace. As those restrictions are lifted amid mass immunization campaigns, knowledge organizations continue to confront these fundamental questions.

For most knowledge organizations, their cultures are strongly rooted in the belief work is being definitively performed when people are present in the office, reinforced by social connections made there and functions such as group lunches and celebrations. The organizational hierarchy is visually represented and reinforced in the office layout, with managers assigned corner and window offices and the rank and file in cubicles on the inside of the floor. A knowledge worker’s manager is clearly identified on the organizational chart. Clocks on the wall define when work is expected to be done.

A decade before the pandemic, author Dave Rolston in his 2013 book Four Dead Kings at Work predicted the death of these anchors that traditionally defined the boundaries of knowledge work in the Industrial Age: 1) One centralized workplace; 2) A single manager; 3) Performing a single defined job and pay grade; 4) At the same time each week.

The pandemic hastened their death requiring organizations to flex or abandon them. The elimination of the centralized office workplace and the erosion of the 8-5, Monday through Friday work time diminished the first and last of the kings, bookended by the daily commute. After more than year of foregoing commuting, knowledge workers have realized the enormous personal time burden it imposes, taking time away family, community, and health promoting behaviors such as adequate sleep, exercise and home cooked versus takeout and restaurant meals. Not to mention clothing and transportation costs.

This realization within knowledge organization has major implications for where knowledge workers will live in the coming decades and for traditional urban planning predicted on centralized settlement and development patterns forming sprawling metro areas requiring ever longer commutes.

Going virtual requires rethinking how knowledge work gets done

Transitioning to a truly remote workforce requires a top-to-bottom rethink of how business is conducted on an everyday basis, with an emphasis on asynchronous communications. This is the single most difficult thing companies face when making the transition from a “meetings-first culture to a writing culture,” Hansson said. “Most newbie remote companies thought remote just meant all the same meetings, but over Zoom,” he said. “That led to even more misery than meetings generally do. You have to make the transition to an asynchronous writing culture to do well as a remote company.”

Source: After embracing remote work in 2020, companies face conflicts making it permanent | VentureBeat

As knowledge workers and their organizations have de-emphasized the role of the centralized, commute in office (CCO) in response to the COVID-19 pandemic, the problem of too many online meetings has cropped up under the moniker of “Zoom fatigue.” Essentially, it’s creating an electronic office where working is defined by real time presence. As David Heinemeier Hansson of Basecamp (formerly 37Signals) explains, there is more to shifting from a CCO-based organization to a virtual one than where the work gets done and communication about it occurs.

The other factor in going virtual involves not just becoming more location agnostic. It’s also becoming more independent of when those activities are performed. Not everyone needs to be working and communicating at the same time, i.e. 8-5, Monday through Friday as established in the 20th century Industrial Age economy. As Hansson notes, that requires moving away from real time spoken communication in meetings to written communication.

And that’s a good thing. Writing forces people to more carefully think through their thoughts and ideas and what it is they want to communicate. It also provides a written record of challenges and progress on a given project. As more knowledge organizations become virtual, this is an important cultural step in the transition. And it has broader social and environmental benefit, according to Hannson:

Aside from operational efficiencies, remote working also benefits the environment, something that became abundantly clear early in the global lockdown. NASA satellite images revealed an initial decline in pollution in China, but as the country gradually resumed normal operations, pollution levels increased accordingly. Much of this change can be attributed to traffic, and Hansson feels remote work is one way to help the planet while improving people’s mental health.

“I’m less interested in how we might benefit [from a greater societal push to remote work] as a company, and more interested in how the world might benefit as a whole,” Hansson said. “More remote means less commuting. And for a large group of people, a better, less stressful life. That’s a massive step forward for the planet and its inhabitants.”

No going back to the office: Death of kings of industrial age knowledge work being hastened by pandemic

Lifestyle changes take about four to six months to become established habits. For organizations, the time scale is considerably longer. And years for society as a whole. The principle is new habits and ways of doing things must be repeated over sufficiently long durations in order to become firmly rooted. Once they have, a break with the past has been achieved and change has occurred.

The social distancing of the COVID-19 pandemic forced the rapid virtualization of knowledge work as working in crowded cube farms and centralized commuter office (CCO) spaces was not conducive to controlling the spread of the SARS-CoV-2 virus. The course of the pandemic in much of the industrialized world will likely play out over roughly an 18-month-long timespan.

That’s long enough for organizations to grow accustomed to working virtually, especially since some were already doing so well before the pandemic’s public health restrictions hit in spring 2020. Knowledge work has been undergoing a fundamental shift for years, disintermediated by information and communications technology (ICT) that no longer requires a set time and place for performing it.

In his 2013 book Four Dead Kings at Work, author Dave Rolston identified four rulers of knowledge work in the industrial age: set job duties performed under a single manager at one place (the office) and the same time (8-5, Monday-Friday). The pandemic has hastened the death of at least two of those monarchs: time and place. By the time it ends around the middle of 2021, it’s likely few knowledge organizations will use their office real estate as they did before the pandemic. Working virtually without co-locating staff in office space during set business hours will have become an ingrained habit by forced adjustment. There will be no going back to the daily commute to the office habit. Knowledge organizations will look to downsize their office real estate footprint and more rationally utilize it.

Shift out of centralized commuter offices a long term trend

What will COVID do to housing? Home builders, city planners and market watchers say the jury is out on whether the COVID-19 pandemic will in fact prompt deep long-term changes in Sacramento communities. Will more Sacramentans move to the suburbs or to the hills for elbow room, figuring they may no longer have to deal with a congested commute to downtown offices? Will home prices continue upward, making home ownership increasingly elusive for many? Is it time for home builders to chop up their open-floor plans and begin building sound-proofed offices and home gyms? Or will the COVID era fade by next spring if a successful vaccine arrives, sending state workers back to downtown offices, people back to fitness centers for their workouts and families and friends back out to restaurants, bars and clubs? “Is this just a 2020 thing, or a 2025 thing?” University of the Pacific economist Jeffrey Michael said.

Source: Coronavirus, home prices send Bay Area families to Sacramento | The Sacramento Bee

It’s actually a 21st century thing. Information and communications technology advances are replacing the roads and highways of the 20th century when knowledge workers needed to commute daily to centralized, commuter offices (CCO). No more. They can begin their workday as soon as they get up and have a cup of coffee rather than an hour to two later after arriving at the office.

This is a long term trend. Public health infectious disease control measures put in place with with current pandemic accelerated it. The gravitational pull of the CCO was already weakening.

Working against the trend is a persistent belief that the best knowledge work requires knowledge workers to be in the same place every day — the office. Face to face communication is important since knowledge workers like other humans are social beings. Reinforcing those social connections however does not require a centralized workplace and the hassle and time suck of the daily commute since meetups can be most anywhere and anytime that’s convenient. What’s needed now as this story suggests are homes with dedicated office space. Also neighborhood co-working centers within walking or cycling distance. Performing knowledge work in the 21st century need not involve turning the key to a motor vehicle or boarding public transit as it did in the 20th.

Silicon Valley renders itself obsolete

Out of habit, inertia, or just a plain fear of change, many white-collar workplaces have avoided allowing employees to regularly work from home — but that may soon change. Plenty of so-called knowledge workers are finding that they can comfortably do their job from just about anywhere they have a wifi connection and their laptop. Large majorities of workers in the consulting & research (85%), insurance (84%), advertising and marketing (73%), finance and financial services (70%), legal (68%) industries have been doing their jobs remotely as a result of the coronavirus outbreak, according to the NBC|SurveyMonkey data. Among these same workers, most report wanting to either work from home all the time even when it is safe to return to the office, or at least wanting to work from home more often than previously.

Source: How Silicon Valley work-from-home ‘forever’ will hit every worker

Silicon Valley as a centralized work location has essentially rendered itself obsolete. In its early days, it was all about location. It had fertile mix of engineering talent, proximity to Stanford University and the larger San Francisco Bay Area as well as plenty of space for microchip and computer manufacturing plants run by household names such as Intel, Hewlett Packard and Apple Computer.

People and place combined to make Silicon Valley what it is. Or was. Now the world changing information and communications technologies it innovated as this article points out allow knowledge work to be done most anywhere, regardless of location. Even Silicon Valley.

And not a moment too soon as high housing costs and long commutes over congested freeways have made it a less desirable place to work. But Silicon Valley certainly deserves kudos. Its products have helped shrink the time and distance burden of daily commuting, benefiting knowledge workers wherever they make their homes.

Rethinking knowledge work

Bosses acknowledge that remote workers don’t suffer from productivity problems. Research has found telecommuters who can work outside normal office hours and don’t have to spend time commuting often are more productive than their cubicle-bound counterparts. Rather, managers want their teams within view and are willing to trade some efficiency for the serendipity that office-based conversations might yield.

Source: Working From Home? The Boss Wants You Back in the Office

Although information and communications technology (ICT) has eliminated the need to commute to an centralized, commuter office (CCO) every work day, many organizations stubbornly cling to the old paradigm out of habit even as peak hour traffic congestion grows and makes it less practical and inaccessible.

Diane Mulcahy notes executive and human resources professionals contend the CCO supports team-building, culture and collaboration. That’s likely true. But it comes at a terrible personal cost to staff member wellness and work satisfaction, not to mention the cost of maintaining CCOs. It’s not a good and sustainable tradeoff and it’s time to acknowledge that circumstance.

Silicon Valley ICT companies adhere to the CCO model, building huge, high dollar corporate campuses and busing staff there daily from San Francisco over jammed freeways. In the larger scheme, to solve this problem requires rethinking knowledge work. To what extent does it have to be done face to face and what can be done without staff being co-located? If team members must be in close daily proximity over the course of a project, a brainstorming session or an agile sprint, might that be done on a temporary basis with team members housed in close proximity so they don’t have to commute? In this framework, the CCO is replaced by a conference or meeting facility, with knowledge workers spending most of their time working in their communities in home offices or satellite or co-working spaces.

The solution to traffic congestion has to come from the demand side since adding more freeway lanes or smart vehicles isn’t the answer. That will require knowledge and information economy organizations to rethink how they manage and allocate resources.