Moving towards the workplace of the future

Citation

Dixon, M. (2010), "Moving towards the workplace of the future", Strategic HR Review, Vol. 9 No. 2. https://doi.org/10.1108/shr.2010.37209bab.007

Moving towards the workplace of the future

Article Type: HR at work From: Strategic HR Review, Volume 9, Issue 2

Short case studies and research papers that demonstrate best practice in HR

Mark Dixon and John BlackwellMark Dixon is based at Regus and John Blackwell is at JBA.

In 2009 we completed our annual study into the workplace of the future, surveying more than 1,100 business leaders to provide a unique perspective on investments into how the workplace of the future might evolve and contribute positively to financial performance. Respondents spanned every industry sector, with our geographically diverse sample providing contributions from both emerging and established economies. A total of 19 percent of organizations employ more than 50,000 employees and 22 per cent employ less than 1,000 employees)

Many of the headline statistics confirmed what we had been thinking for some time – organizations are being bombarded by change, with eight out of ten business leaders believing that significant workplace change lies ahead. The report also revealed some interesting theories into the kind of models businesses are implementing in order to engage, reward and motivate staff, with particular emphasis on giving workforces greater autonomy over when and where they work.

The findings show an evolving workplace that is notably different to today – one that is comprised of finely balanced interdependencies between people, space, technologies, culture and management practices. This is a world where HR professionals need to be talking fluent real estate; real estate professionals must be talking fluent talent and collaboration; technologists must be talking fluent culture and outreach; and managers must be fluent in organizational trust, agility and social networking. Get it right and the modern workplace is capable of delivering previously untold levels of performance by becoming a vibrant, inspiring place that motivates creativity, innovation and a “can-do” attitude. Get it wrong and it can be utterly dull and disenfranchising.

Changing workplace models

One of the headline findings of the report is the assertion that business leaders are looking for innovative and cost-effective ways to meet and surpass the expectations of increasingly demanding staff. Consequently, more than 40 percent are changing their workplace models to become more collaborative and give employees greater responsibility and input into the wider business. Organizations of all sizes are looking to move outside their traditional boundaries and reconfigure their workplaces to take advantage of greater interaction and integration across and beyond their industry sector.

We believe that the workplace of the future will eventually be home to a group of visionary challengers – people who themselves question workplace assumptions and stereotypes and who are willing to suggest radical and, what some might initially consider, impractical alternatives. It will also look towards charismatic leaders who set direction, inspire and move the organization forward, with high performing visionaries earning differentiated rewards to reflect their contribution to challenging and changing the workplace dynamic.

In a 2008 study of change management practices, 75 percent of organizations surveyed said that their approach to change was informal, ad hoc or improvised (Redman et al., 2009). Increasing and challenging demands will see workplaces defining and managing change more strategically, structuring robust financial models of workplace interdependencies, designed to deliver precise business outcomes.

Trust-based environments

Equally, we will see an increase in the number of business leaders investing in “trust-based” working practices.

The thinking behind “trust-based” working practices stems from how out-of-step the traditional employment contract has become. The traditional document commonly includes such entries as “place of work,” “hours of work,” and “role,” yet we’re increasingly working virtually. With wide-spread increases in sourcing of non-core services, global talent, expanding project portfolios and matrix management, it is forecast that by the close of 2010, knowledge workers will be spending 95 percent of their time working alone, in a different place, on a different project, at a different time to their colleagues. This increasingly makes a mockery of the traditional employment contract. How many of us stick to our contracted hours? How many of us work solely in the “stated location?” Crucially, it is rare for employees to even be doing a job that faintly resembles the role described in the traditional contract.

A “trust-based” contract states that, as an employee of xx firm, you are trusted to complete your work assignments in an agreed timeframe with agreed outcomes. Organizations commonly adopt a quarterly review process, with three personal commitments coming from the employee and two commitments coming from the manager. The majority of staff are conscientious, enthusiastic, responsible adults perfectly capable of being parents and homeowners – so why do we persist in Taylorism views that employees become wholly irresponsible the moment they step into the office? Trust-based contracts deliver an amazing placebo effect from the outset – staff feeling greater engagement and ownership, and managers feeling a great burden of unnecessary measure lifted from their shoulders.

Google is one of the initial protagonists of a trust-based workplace model. Managers in the organization do not have direct reporting staff and teams. Instead, managers must demonstrate to team members that their initiative, product or service is something to be passionate about. Team members then enthusiastically contribute their time on a “voluntary” basis. If the manager fails to maintain the energy and inspiration for their program, team members are at liberty to withdraw their contribution.

Technology and innovations

In every developing economy across the globe, the workforce is becoming an increasingly sophisticated, articulate and demanding resource. From the aging baby boomers to the young smart Generation Y, workers are totally fluent and comfortable in the use of a broad range of technologies – be it networked computing, mobile telephony, 24x7 remote access or networking. As a direct result, business leaders report that both existing and, especially, prospective employees are finding it increasingly demeaning to be harnessed to less sophisticated and constrained workplaces than they have outside of their working environment, where such technological commodities are part of their everyday culture.

In a recent survey of 8,400 employees, 83 percent felt it was essential to have unrestricted access to the Internet at their workplace, 39 percent used a mobile device while at work to share information with a source external to the organization, and 31 percent sent text messages to sources external to the organization (Redman et al., 2009).

Global connections

With currently over 1.5 billion internet users worldwide, it is projected that, helped by the uptake of mobile and other internet-enabled devices, the number of internet users will double by 2012 (or a third of the entire global population). Social networks and internet collaborations offer organizations vast opportunities to amplify “weak signals” – the tips, hints, market developments, product innovations and inspirations that would have simply gone unheard in previous workplace situations.

The opportunities presented by social networking collaborations in the workplace to encourage like-minded people to socially group and pool their knowledge have not been lost on forward-looking business leaders. Today, 80 percent of the business leaders interviewed state that they perceive a positive impact on their operations from internet collaborations beyond the boundaries of their organizations. Over the coming three years, 28 percent of business leaders state they are planning to invest in social networking tools for their workplace – a staggering 76 percent increase compared to investment over the past three years.

Employees at all levels should, therefore, see greater opportunities to connect through real-time information, online interaction and, where possible, in person, allowing the workplace to become an integrated, proactive and integral part of the business rather than merely a daily trudge.

A bright future

The workplace of the future will be an exciting place to be – a center for change, innovation, imagination and global connectivity. While the economic climate presents us with a variety of immediate challenges ranging from rising unemployment to a disenfranchised staff and a shrinking talent pool, there are enough causes for optimism to suggest that both businesses and professionals can weather the storm and implement workplace practices that will increase both effectiveness and productivity over the coming years.

About the authors

Mark Dixon is chief executive and founder of Regus and is one of Europe’s best-known entrepreneurs. Having left school at 16, he established businesses in the retail and wholesale food industry before relocating to Brussels, Belgium, where he set up an apartment rental business. He set up Regus in 1989 after noticing how local business people were forced to meet around the small tables of local coffee shops. Recipient of several awards for enterprise, he has revolutionized the way business approaches its property needs with his vision of the future of work. Mark Dixon can be contacted at: m.dixon@regus.com

John Blackwell is CEO at JBA. He is a global thought-leader on effective business operation and a noted author of over 30 management books/reports. His 30-year career includes a decade as chief executive of international operations at MCI, five years heading IBM’s business transformation practice, visiting fellowships and a member of advisory boards at three universities. Today, his firm JBA has implemented advanced work models for over 350 organizations.