Professional Documents
Culture Documents
© 2013 WileyPeriodicals,
2013 Wiley Periodicals,Inc.
Inc. 1
Published online
Published onlineininWiley
WileyOnline
OnlineLibrary (wileyonlinelibrary.com).
Library DOI 10.1002/ert.XXXXX
(wileyonlinelibrary.com). DOI 10.1002/ert.21394
Employment Relations Today
Continuation The system moves forward along its current trajectory. It is “present
trends continued”; usually considered most likely to happen.
Collapse The system falls apart under the weight of “negative” driving forces
and typically reverts back to an earlier form.
Transformation The system is discarded in favor of a new one with a new set of
rules.
“new equilibrium,” or a transformation. (See development in knowledge work over the last
Exhibit 3.) By employing the archetype decade.
method, it is possible to rapidly generate four
plausible—and sharply different—views of Drivers of Change in Knowledge Work
the future. In the descriptions that follow, it
is useful to think of the “system” as the “cur- Our team explored over 120 key business
rent ways of doing things.” and technology trends and shifts in consumer
values in the first phase of our project. These
MILESTONES IN THE DEVELOPMENT OF elements were brought together and synthe-
KNOWLEDGE WORK sized into 17 catalysts, or drivers of change,
that we believe will shape the future of
To help ground readers and to provide con- knowledge work. We then analyzed how each
text to how we arrived at where we are catalyst might play out under each of the four
today, key milestones in the development archetypes and used this analysis to create a
of knowledge work are highlighted in the narrative description of each scenario. The 17
timeline in Exhibit 4. Although the con- catalysts are described in the list that follows.
cept was introduced as early as 1959, key
enabling developments such as telecommut- 1. Performance Enhancement. Knowledge
ing and personal computing kicked off in the work demands new skill sets and new
1970s. Outsourcing was a key development performance-evaluation tools that assess
of the 1980s. The launch of the web was the individual creative contributions and
most significant development of the 1990s, their impact on the bottom line. Employ-
although several other important develop- ers are being measured in new ways, too,
ments that hit their stride in the 2000s begin as knowledge workers tend to have more
in the 1990s: smart devices, e-commerce, nonmonetary job expectations than in
and virtual collaboration. The emergence the past: engagement, camaraderie, and
of various social media stands out as a key fulfillment.
Industrial Revolution
• Late eighteenth and early nineteenth centuries: Work meant “going to work”; the
Industrial Revolution created the clear separation between work and home.
Knowledge Workers
• 1959: Peter Drucker coined the term knowledge workers. “Knowledge workers require
that the demands be made on them by knowledge rather than by people. They require a
performance-oriented organization rather than an authority-oriented organization. . . .”a
Telecommuting
• 1970: Jack Niles coined the term telecommuting in response to the realization that the
world’s fossil fuels were finite and that energy conservation was necessary.
• 1990: The Clean Air Act Amendments of 1990 required the nation’s most polluted
regions to reduce the number of single-occupant vehicles by up to 13 percent.
• 2000: The number of US workers teleworking more than eight hours per week hit
6 million.
• 2009: The number of US workers teleworking more than eight hours per week hit
14 million.
Personal Computing
Outsourcing
• Thomas Friedman noted, “The PC, the Internet, and fiber-optic cable had created
the possibility of a whole new form of collaboration and horizontal value creation:
outsourcing.”b
• 1980s: Outsourcing started with blue-collar jobs.
• 1990s: Outsourcing expanded to white-collar jobs.
Smart Devices
E-Commerce
Virtual Collaboration
Social Media
and consumer interactions take place generating greater complexity and uncer-
somewhere online. tainty in today’s knowledge-based econ-
11. Sharing. Sharing is becoming a more omy.
important aspect of business—and 16. AI Gets Real. Artificial intelligence (AI)
personal—life in the digital age. It is now and expert systems are growing more
possible to eschew ownership of physical capable and will increasingly be inte-
assets (offices, hard drives, cars, etc.), yet grated into commercial and consumer-
still gain necessary access to these things facing applications.
through collaborative consumption, cloud 17. Rise of the Cloud. The move to cloud
services, open innovation, and other computing—data storage, applications,
novel arrangements. platforms, computing power, and man-
12. Value Capture. The more open nature of aged services being delivered over the
the knowledge economy poses challenges Internet rather than hosted on personal
to traditional business models. The abil- computers—is under way.
ity to share information quickly, easily, Exhibit 5 illustrates how the catalysts
and widely makes it increasingly difficult emerged out of the domain map.
to protect intellectual property (IP), and
consumer expectations for what should FOUR SCENARIOS FOR THE FUTURE OF
be “free” continue to escalate. KNOWLEDGE WORK
13. Workforce of One. With knowledge
workers leaving corporate employment to A set of scenarios for the future of knowledge
stake out their own claims as free agents, work was developed based on variations—aka
and companies increasingly farming out options—of the 17 catalysts. These options
knowledge work to outside agencies, both were analyzed to provide the best fit for
domestic and abroad, new project-based each of the four classic scenario archetypes
models for workflow management are described earlier (continuation, collapse, new
emerging. equilibrium, and transformation). The options
14. Integration of Virtual and Real. New that told the most compelling story for each
technologies, including virtual-world archetype are integrated into a narrative that
applications and contextual and seman- describes what knowledge work would look
tic resource software, allow knowledge like under each scenario. The key building
workers to automate many support tasks blocks of each scenario are summarized in
and optimize their communications. Exhibits 6, 7, 8, and 9, organized along the
This compels companies to develop new four categories of the domain map—workers,
frameworks for assigning workflows that work space, work tools, and work models—as
seamlessly integrate the virtual and real well as two additional categories that were
and minimize information overload. added to provide a more nuanced view: the
15. Competing with Complexity. The intri- work environment and the overall business
cacies of navigating the modern global context.
system have never been more daunting. Each scenario, thus, is described with
Resource scarcity and market homog- a summary, a brief scenario narrative, the
enization, to name just two, are trends key building blocks, and a discussion of the
implications for the six key knowledge work As the millennial generation makes up a
activities listed in Exhibit 2. greater percentage of the workforce, they
drive changes in the overall work environ-
Scenario 1: Virtual Teams Collaborating ment. Companies seek to capitalize on digital
(Continuation) natives’ skills and habits and create work
processes and spaces that maximize their per-
Work is increasingly virtual, but progress is evolu- formance. Advances in sensing and data ana-
tionary rather than revolutionary. Thorny issues, lytics provide workers continuous feedback,
such as transparency intruding on privacy, slow and new, more accurate measures of perfor-
the introduction of new technologies and prac- mance affect everything from promotions and
tices. The result is that work in 2020 is far more salaries to how people are valued and market
decentralized and different in many respects, but themselves to prospective employers.
the transition to the world of knowledge work in Continued efforts to hold down cost in
2020 is manageable. the wake of the Great Recession mean a rise
Building Blocks
Category Summary
Workers Millennials and the oldest members of Gen Z flood the workforce, but many
operate as freelancers.
Work Space Knowledge work is increasingly decentralized, thanks to ubiquitous connec-
tivity and an increase in telecommuting.
Work Tools Knowledge-based companies embrace transparency, feedback, and the as-
yet unrealized promise of virtual integration as tools with the potential to
improve their ability to navigate the rising flood of data and information.
Work Models An age in which information wants to be free opens up new channels for
innovation in all aspects of knowledge work—from R&D to manufacturing to
marketing—but challenges old ways of doing business.
Work Knowledge-based organizations aim to optimize performance through work-
Environment place measurement tools, while knowledge workers aim for more balanced
lives by gaining greater control over the way they work.
Business The recovery continues—but is slower in the developed world than in emerg-
Context ing economies, presenting continued challenges to the developed world’s
economic leadership.
Exhibit 6. Scenario 1 Building Blocks
face-to-face relationships and collaboration Although there were challenges during the transi-
important elements of success as virtual tion, they were overcome and work has effectively
work is curtailed in this scenario. Busi- reshaped around these new dynamics.
nesses could hedge for this scenario by
maintaining some of their training and Under the influence of cheap mobile
professional development focused on these computing, ubiquitous connectivity, and the
“old economy” skills. transparency provided by social networks,
❏ Decision Making. Centralized decision the nature of work changes dramatically. It is
making slowly returns to most organiza- driven not by hierarchies or credentials but by
tions under this scenario, which could transparency and social networks that effec-
cause friction between management and tively match the right people to the right proj-
workers who may be accustomed to voic- ects. Companies take advantage of reduced
ing their opinions and a generally more overhead costs offered by having a virtual
collaborative, egalitarian model of decision workforce, while workers take advantage of
making. the convenience of working virtually or the
❏ Communications. IT departments would freedom of freelancing to the highest bidder.
be under significant pressure under this But this change was not seamless, as many
scenario. First, they may be blamed for workers—especially boomers and older Gen
security breaches, and, second, they would Xers—struggled to adapt to this new world of
likely see budgets reduced and refocused work. Businesses struggled, too, and were pre-
as work becomes less virtual and the occupied during the years from about 2012 to
physical office environment becomes more 2016 with lingering concerns about intellectual
important again. property leakage, corporate security, competi-
❏ Management and Leadership. Manage- tors poaching freelancers, and other related
ment and leadership will be challenged issues. Thankfully, these issues are all dealt
under this scenario to operate in a global- with in turn. For example, companies rely on
ized world—but do so in an era refocused performance-feedback technologies, which
on face-to-face collaboration, physical help mitigate concern about the productiv-
offices, and the like. Security issues will be ity and contributions of virtual workers and
a management preoccupation, and manag- freelancers. And a host of new businesses and
ers will need to carefully choose where services are created to support the burgeon-
the return warrants taking on the risk of ing freelance workforce: co-working centers,
virtual work. expanded “third-space” options, and digital
guilds that help provide businesses with a
sense that their freelancers are “credentialed,”
Scenario 3: Socially Centric Work (New while also helping to provide an entity to pro-
Equilibrium) tect and fight for the rights of its members.
Digitization and the rise of social networks cre- Implications for Knowledge Work
ate new opportunities for collaboration and for
new roles and relationships, as insiders, freelanc- ❏ Content Creation and Management.
ers, and even customers routinely work together. Companies begin to make some content
Building Blocks
Category Summary
Workers Economic pressures prevent boomers from leaving the workforce, resulting
in multiple generations working together and frustrating the Gen X and mil-
lennial ambitions for promotions.
Work Space Workers return to the physical office, which provides more security and con-
trol and reduces risk of failures from the virtual environment.
Work Tools The development of tools for virtual and online collaboration slows, as com-
panies refocus on the physical. The focus is on making do with the tools
that are in place and seeing whether they can be reused in different ways to
offset the complexity and problems that have arisen.
Work Information is held closely, and intellectual-property rights are reasserted.
Models Companies prefer to build internal capacity and limit use of freelancers, sub-
contractors, and consumer cocreation.
Work Work-life balance has tilted toward work, where anxious workers struggle
Environment with an overload of data, complex and incompatible technologies, and
reduced resources.
Business Economic challenges and the renewed focus on local hiring in lieu of virtual
Context teams minimize the impact of emerging-market knowledge workers. Lim-
ited investment funds are spent on internal R&D, building the capacity of
employees, and optimizing existing investments in technology.
Exhibit 7. Scenario 2 Building Blocks
public and reusable, via systems like Cre- likely become an increasingly strategic
ative Commons. This remixed content is function within the organization under
then brought back in-house for use in proj- this scenario. Organizations would also
ects. Enforcing intellectual-property rights need to experiment more with new busi-
becomes more difficult in an open, sharing ness models (e.g., sharing of profit result-
world, so most content is openly shared ing from collaborations).
and there are stringent rules on protect- ❏ Decision Making. Questions of balance
ing what is kept proprietary. This scenario and fairness will be at the forefront of
would present significant challenges to most decision-making criteria under this
organizations and their IP practices. scenario, as its openness and diversity of
❏ Work Processes. Organizations have to participants will likely lead to more of a
invest further in collaborative platforms consensus style of decision making.
to accommodate the diverse, distributed ❏ Communications. The diversity of an
teams envisioned by this scenario. organization’s workforce (on-site and virtual
❏ Collaboration. Policies and practices employees, freelancers, customer-partners,
allowing for remote work mean that tal- etc.) will require HR and other policies to
ent can be sourced worldwide. HR would be amended. Because this scenario implies
constant connectivity and 24-hour work knowledge workers now act as free agents.
cycles, it will also be critical that organiza- Sophisticated online marketplaces emerge to
tions establish norms around when it’s OK help match employers with potential workers
not to answer e-mails or be available. based on the relative value of their unique
❏ Management and Leadership. Due skill sets and detailed work histories. Organi-
to global talent sourcing implied by this zations are able to source perfectly matched
scenario, all managers will be global teams on-demand, but with work now domi-
managers. Understanding of and attention nated by free agents companies are forced to
to cultural issues will be required of all reevaluate the nature of key elements of their
managers. Leaders must also effectively operations—from IP to compensation and IT
manage—and meld—two organizations: investments.
physical on-site employees and a dynamic Businesses use sophisticated information-
cadre of freelancers and virtual employees. monitoring technologies like contextual/
location awareness and complex event pro-
cessing to map contributions within and
Scenario 4: Personalized Professions: across virtual teams and have developed
Work-Life Blending (Transformation) novel revenue streams for capitalizing on the
knowledge they produce. These market con-
Successful new organizational and business ditions have seen significant changes: new,
models emerge around knowledge work that frees product-specific, profit-sharing models; DIY
workers to personalize their contributions. Work production processes licensing to consumers
is a thing one does—largely driven by personal with 3D fabrication labs; and niche consulta-
interest—rather than a place that one goes to, tion services. Boomers “un-retire” as these
such that all workers are now thought of as new market conditions enable them to gener-
knowledge workers. ate revenue by providing a personal touch in
supporting knowledge processes and hyper-
Organizations become more fluid and open personalized customer-service offerings.
to keep up with workplace virtualization—
and become more like “platforms” that con- Implications for Knowledge Work
tinually morph than static institutions. New
business models also emerge to acknowledge ❏ Content Creation and Management.
this shift—profit-sharing models, licensing Collaboration has become the primary
arrangements with DIYers (do-it-yourselfers) engine for content development, with
using 3D printers for distributed production, whole companies, departments, and proj-
and so on. The spread of knowledge is so ect teams linked together through wide
great that the distinction between knowledge social networks and a variety of tools and
workers and manual workers has largely dis- platforms—such as advanced AI, crowd-
appeared—all workers can be thought of as sourcing, and virtual reality. Keeping these
knowledge workers in this scenario. networks running smoothly will present
Knowledge workers have unprecedented challenges in putting teams together that
flexibility in determining both the nature and have a compatible mix of capability and
the context of their employment—and most skill operating across these environments.
Building Blocks
Category Summary
Workers The workforce is a mix of office-based employees and telecommuters/
freelancers and heavier on virtual workers than Scenario 1. Employees—
especially those who work virtually—have traded privacy for freedom and
are regularly monitored to assess their contribution.
Work Space The demand for office space has dropped drastically. To match the free-
dom of remote workers, office workers have more leeway in personalizing
their workspace. Office spaces are more adaptable, allowing them to create
more common space when needed. Advances in green design and engi-
neering have made the spaces more environmentally and ergonomically
healthier. For those outside headquarters, the office is wherever a table and
Internet connection can be found.
Work Tools Virtual teaming is routinely used, and there is less distinction made
between virtual and face-to-face meetings. These tools help keep all team
members in the loop, and workers and organizations approve. There have
been no major security breaches to derail the continued push toward vir-
tual work.
Work Online workflow systems facilitate the complex interplay between in-house
Models and outside talent. Detailed tracking of contributions help overcome the
stigma that virtual workers are less productive than on-site employees.
Work The need for the office to exert some control clashed with the idea that
Environment freelancers and teleworkers are free, but these tensions are largely resolved
through more effective virtual environments. Not sharing physical space
has hurt camaraderie, particularly among older workers, but, as virtual
environments improve, organizations find new ways to promote “whole-
staff bonding.”
Business Managers have either learned to accommodate the influx of remote work-
Context ers, including emerging-market team members, or they are no longer man-
agers. The trend to freelancers and consumer-generated content was too
strong to permit old practices, such as monitoring how many hours instead
of the actual results of the project.
Exhibit 8. Scenario 3 Building Blocks
❏ Work Processes. Contextual and loca- and administrative tasks. This will cre-
tion-aware technologies automate many ate continually changing job and project
basic work processes, from research requirements, challenging the design
to operations to project management, of requirements as well as evaluating
thus freeing them from many low-level performance.
Building Blocks
Category Summary
Workers The very idea of work itself is beginning to take on an entirely new
context as the collection and analysis of personal data creates new
opportunities to pair workers with projects, coworkers, and organiza-
tions that naturally fit the particular skill sets and personality traits
of each worker. In this sense, work becomes tied more directly to
each employee’s unique sense of identity and purpose.
Work Space The era of the generic office cubicle is over. Home offices abound
and largely reflect the personality of the user, focusing on per-
sonal comfort and preferred work conditions. Office virtualization
and 24/7 connectivity mean spaces can be digitally reconfigured to
accommodate a wide variety of work preferences.
Work Tools Tools for organizing information quickly, securely, and effectively
are in the highest demand. With work environments becoming more
connected and virtual, technologies that improve worker efficiency
by optimizing communication virtualization and integration, filtering
data flows, and managing work schedules have become essential.
Work Models Work models are designed to promote and facilitate collaboration.
Technologies assisting in document-sharing protocols, task priority
and assignment, knowledge-exchange processes, and data collection
enable ad hoc team networks and help to customize work models
based on the demands of each assignment and the needs of those
working on it.
Work Environment The office has gone virtual, with the vast majority of workers’ activi-
ties taking place online. Technologies that monitor worker behavior
and aptitude have a new dual role, providing managers with targeted
tools for remote oversight and giving virtual communication applica-
tions added depth and realism.
Business Context Personalization technologies also enable organizations to optimize
people allocations, automate operation tasks, and reduce infrastruc-
ture costs significantly. Liberated from these logistical burdens, orga-
nizations develop a stronger focus on customer communications and
innovation strategies, benefiting product and service development
greatly.
Exhibit 9. Scenario 4 Building Blocks
of challenges to knowledge work, but in this professionals who use these scenarios as a
scenario they are successfully resolved, rely- strategic tool will be better prepared to thrive
ing on a much greater integration of social regardless of the exact nature of knowledge
networking tools to manage the transition work in 2020 and beyond.
to the world of knowledge work that goes
deeper than Virtual Teams Collaborating.
Finally, Personalized Professions presents a NOTES
more provocative view of knowledge work
that has a transformative effect on how work 1. Abbott, Boeing, Brown-Forman, FedEx, Herman Miller,
is done, leading to a future in which all work- InterContinental Hotels, Hasbro, Kellogg’s, Kraft, Mary
ers are thought of as knowledge workers. Kay, Nissan, Shell, State Farm, Steelcase, Tekes, UPS, and
Human resources professionals can use Walmart.
these scenarios, and the analyses on which 2. Davenport, T. (2005). Thinking for a living: How to get
they are derived, to expand their perspective better performance and results from knowledge workers.
and evaluate their long-term strategies against Boston, MA: Harvard Business School Press; p. 10.
a range of plausible outcomes. In reality, the 3. Bishop, P., Hines, A., & Collins, T. (2007). The current
future will likely include elements of all four state of scenario development: An overview of techniques.
of the scenarios described here. As such, HR Foresight, 9(1), 5–25.