The ReFormation of Work by Dr. Charles Grantham

Students of organizational development and futurism have been blessed with the ability to witness the Future of Work happening before our very eyes and in a relatively short period of time.

  Not even 15 years ago, the term telecommuter, e-worker and virtual worker were seldom heard in the day to day conversations in the office. The model was typically reserved for territorial sales professionals who had no choice but to be away from the office. This has changed and is in the process of moving to a new focus on work space instead of work place.

With the rise of the Internet, greater cost pressures on companies and the disaster of September 11th, coupled with changing attitudes towards work, greater numbers of workers have been working from locations other than the traditional work environment. While some may see this as a temporary phenomenon, others see it as the end of a beginning and the start of something new that will change the way we work forever.

We anticipate that change will continue and the average worker will experience a completely different work life than today. The changes we see driving the future of work are:  

  1. Work Place to Work Space

About 50% of the workforce will work in numerous locations depending on hand task at hand, tools available and the requirements of the customer.  The industrial model of everyone at the same place, same time (which was build on an ‘economy of scale principle’) will begin to disappear.  Work activities will be distributed across central offices (40% of time), remote locations (40% of time) and transient community locations (20% of time).

  1. The 24 Hour Work Day

The normal (sic) 8 hour workday will be spread across a 14 hour window to accommodate collaboration across continents, quality of life needs and for workers families to be in sync with community and educational activities.

  1. Decomposed Work Units

  Technology will allow for, and foster, the compression of work projects.  Project management tools will support the decomposition of complex, larger work tasks into more discreet units.  The “rule of two” will become a standard:

Here’s how much time  you have you have

 . . . to

 

2 minutes

..take action on immediate requests for your attention. 

If you can’t handle it that quickly, then to needs to go to someone, or someplace else!

 

2 hours

 . . . hold face-to-face meetings.

If it takes longer than that, you’re not planning!!

 

2 days

. . . .respond to electronic requests

If you can’t get to it by then, you’re wasting your time  and everyone else’s.

 

2 weeks

 . . . assemble a work team  and commit to a plan

If you can’t find the right people  and the right plan by then, the project will fail

 

2 months

 . . . identify a business opportunity and test it with customers

If you can’t do it by then, your competition can

 

2 years

 

 . . . nothing at all

If your static plans reach out years into the future, the world will have passed you by long before you get them done.

  1. Collaborative Work

People will shift their work activities to their core competencies for approximately 80% of their time.  Everything else will be handed off to someone with complimentary competencies.  People themselves will become less ‘vertically integrated’ and grow loosely coupled collaborative networks.  No more ‘jack of all trades’.  The remaining time will be devoted to learning new skills and competencies.

  1. Extinct Worker Loyalty

  Historically workers have been subservient to corporations because companies owned the means of production, such as factories.  Individual’s livelihood depended upon companies and they formed close connections, often for life.  These dependencies will decrease because large organizations are not needed to create value in a knowledge driven economy.

  1. Team (molecule) of People (atoms)

People will become highly networked for the duration of individual projects.  They will form up into molecules of several people; stay together for a project, break apart and then into new molecular forms.  The Hollywood model where actors, directors and producers come together for a project and then re-group for others.  

  1. Molecular Half-Lives Shorten

As the Internet speeds up our social processes, projects take on new meaning and last only a brief time.  The average project length will be one year, with a rarity of a multiple year project.  The richness and variety of work available will motivate people toward a constant mix and re-mix of activities.  Most knowledge workers will find themselves ‘employed’ on several projects simultaneously.

  1. Guild Work

  Guilds and ‘confederation’s’ will return as the primary social organizational model for these smaller groups of people.  Guilds will be responsible for recruitment of talent, some training (mentoring) and enforcement of process quality standards.  Guilds will be based on a common interest in a particular topic area, or expertise such as the Screen Actors Guild.  

  1. Corporations Change

Modern corporations are an artificial legal structure created within the past 100 years to minimize the risk associated with control of large asset bases.  As Peter Drucker so aptly notes, they have out lived their usefulness.  The assumptions, upon which they were built, are not longer valid.  Primary among these is that large organizations were required to capitalize the investments required in the ownership of the means of production, such as factories.  With a shift to knowledge work, factories may not be needed and employee’s more often owns the means of production (their knowledge and experience).

Confederations of business clusters will instead move to the forefront. They will be held together by strategy; not ownership of assets.

  1. Rise in Outsourcing

As the move towards individualism (i.e., free agency) approaches 20% of the workforce, the need for different workforce support structures will emerge as a business opportunity in itself.  Organizations will emerge that provide marketing, administrative services, retirement plan membership and group health insurance to this group of workers. 

These companies will grow out of existing human resource service outsourcing companies

  1. Star Performers Displace CEO’s

The revelations of corporate greed and failed governance which came to light in 2002 has leading to a decrease in worker respect for business leaders.  The ‘cult of the CEO’, which characterized the late 1990’s, will quickly wane.  This will be replaced by a new category that emphasizes a small unit leader, a person whose major competency is the ability to build teams.  They will be the bridge between idea and bringing product to market.  These executives will eschew the traditional trappings of corporate power and will focus on status among their team members as a prime motivator.  The era of Jack Welch as cultural icon has eclipsed.

  1. Changes in Employment Law

For the majority of the 21st century two basic forms of worker/company relationship existed in the United States and most other industrialized countries.  There was either an employee/employer relationship or a contractor relationship. Both these forms will be inadequate for the new, more agile and fluid kinds of social relationships required by knowledge workers (the creative class).  The nascent form of the new relationship will be built upon Limited Liability Corporations or Partnerships pioneered in the legal, accounting and consulting professions.  Individuals will become in essence a ‘company of one’ and band together for projects—which may be short, lived formal organizations for limited periods of time.  

  1. Self Management of Pensions and Healthcare

The collapse of the US health care industry in 2005 will usher in a new form of support for the LLC’s, free agents and smaller businesses.  People will no longer depend upon their primary employer for this type of social support and will increasingly engage in management of their own affairs through intermediaries, such as ‘guilds’ or third party organizations.

  1. Pay for Performance

There was recently a story on National Public Radio ( September 5, 2002 ) about a gentleman who reached 100 and as promised sent his physician on a cruise.

As we move from a commodity production base (in the First world) to a service and knowledge economy creative talent will be compensated for their efforts based on how effective they make their customers in their own lives.  Doctors get paid to keep people well; professors based on incomes of former students; accountants on wealth created; executives on five plus years return on investor’s money.  The question will be “what did I do to make your life easier, longer, more satisfying?”, not “how long did it take me to do it?”  

  1. Master Ambiguity

We no longer live in a world of certainty—as if we ever did.  The illusion that Homo sapiens controlled their fate has crumbled with the evolution of the industrial, mechanical age.  This, coupled with the increasing velocity of nearly all human activity will create a constant state of change.  

Work projects will begin with some goals and vision, but will continuously morph as the projects rolls on, being responsive to external influences.  This means that project budgets will be moving targets, deadlines somewhat arbitrary and final design impossible to predict.  Managers of certainty will evolve into leaders of ambiguity.

  1. Large Force to Special Force

The work world of the future will look more like a basketball game than a baseball game.  Baseball is a methodical game with defined roles and a metered pace. Basketball players have defined positions but there are very few requirements that they stay in one place. In fact, a successful basketball team constantly moves, shifts and rotates the ball. Constantly shifting roles, responsibilities and required competencies will be the hallmark of the new employee.  Brute force will be replaced by stealth.  This implies the demise of the logic of ‘economies of scale’, which characterized the industrial age.   

Bigger isn’t better; and nimble becomes a good thing.  Social interaction in the workplace will move from highly scripted, stable interactions such as those found in a baseball game to the shifting, fluid patterns of a basketball game.

  1. Multi-tasking

  People will work on several ‘projects’ at once.  Some will even have several ‘jobs’ and serve many masters simultaneously.  Individuals will take on the responsibility of managing their efforts across projects, as well as within projects.  New skills in development of project trajectory control will be required, as well as a higher-level executive function which balances capacity (what I can do today) with capability (what I need to be able to do tomorrow).

  1. Multi-organizing

  Organizational boundaries as defined by legal and accounting standards will begin to lose the meaning as more ‘projects’ cut across these definitional and sometimes arbitrary distinctions.  The barriers or separations between ‘inside’ and ‘outside’ a firm will become highly permeable.  The psychological impact of this on workers will accelerate the demise of the ‘trust’ bond between firms and its workers. This fluidity of organizational structure will require major re-thinking of financial management systems at a minimum.

  1. Value in Social Capital

A key value added by any individual (their brand equity) to a work effort will be the amount of social capital they bring to bear on the tasks at hand.  Their social capital will be the extent and strength of social bonds which exist within their social network.  These networks are now morphing from a village, office model to one of a ‘work unit’ to a completely networked individual.  Status will be individually defined; social control will be more internalized.

Organizations will need to recognize that value in an individual will be through their social capital and the company will need to develop thee relationships with the employee also.

  1. The Wild West

People will adopt a more singular, ‘I’m responsible for myself’ attitude in their work relations.  America will ‘de-cluster it workforce’ and de-massify large urban areas, except for the new immigrants, marginalized sub-groups and young unattached populations.  Individualized action will be valued more than close neighborly patterns of highly dense locales.  

  1. Live to Work -- Work to Live

  The social context of the relationship between workers and ‘employers’ will shift from a livelihood basis to one, which is life quality enhancing for the individual.  This force will cause the redefintion of the implied social contract between people and companies which have been a source of their livelihood.

  1. Positive Corporate Branding 

  People will be attracted to companies largely based on their brand. Not having a strong brand identity will be neutral factors in attempts to attract and retain talent.  A negative brand perception will actually repel talent.  Branding factors such as interesting, varied work are positive.  As are existence of other ‘cool’ people and challenges toward growth.

  1. Social Context

Instead of having implicit rules of behavior and action coming from commonly accepted social values, business molecules will generate their own rationality.  The texture of a work organization will come from its connectedness in action.  Just like a crossword puzzle, the work unit will take on more meaning ‘as it is filled in’ by action.

Return to Articles