Only a few companies are really facing up to the challenges of New Work. For the majority, waiting and watching seems to be the right strategy. However, this negligence decides whether they move forward or are left behind. The stakes are high. To succeed in the new world of work, leaders need to rethink. New Work needs radical rethinking. The focus needs to shift from technology and team leadership to a higher level. Strategy is needed.
The concept of New Work is currently experiencing a renaissance. This is based on two influential factors. Digitalization is forcing us to radically rethink and realign roles in the context of work. The pandemic resulted in massive changes for everyone. The confluence of these factors has made it inevitable for many to make big decisions. The great resignation peaked in March 2022, when 4.5 million employees in the U.S. quit.. Taking a closer look at the information industry, it is clear that the origins of poor employee retention predate COVID by years - if not decades. Factors include ineffective high school and college education, inadequate entry-level jobs, and the exit of baby boomers from the workforce. 75% of those born before 1964 plan to retire early. A new work model is urgent and long overdue.
The history of New Work
Remote work was first seriously discussed 50 years ago. Terms like "telecommunications" and "telecommuting" were coined by NASA scientist Jack Nilles who first used them in 1973. IBM piloted "home office" in 1979, and there have been many other advanced models since. The pandemic was undoubtedly a catalyst and accelerator in this context, but widespread adoption failed to materialize.
Why I'm worried about progress in the face of this dynamic? Much of the New Work discourse revolves around the digital workplace. The speed and efficiency with which we rolled out MS Teams and similar tools and technologies to manage in-office calls, email management and meetings was incredibly impressive. In fact, it prompted many to ask why we didn't roll it out sooner. The answer can probably be traced back to a reluctance to tackle broad, cultural issues and change mindsets. Even now, it seems that much remains largely unexplored. Why? We know that fundamental change is difficult. Realizing the true potential of New Work takes time, effort, and strong, committed leadership.
New Leadership
Perhaps it goes without saying that the way of working in a healthy organization must support strategic goals. For example, when pursuing large growth targets in terms of headcount, the efficiency of remote hiring can be a great help. The first task of any leader is to understand these relationships and leverage them. Employees will feel more connected to the company if they understand this as well. They need to know their goals and how they can contribute. It is important that the method is also meaningful to them. A workplace where the "how" doesn't match the "what and why" doesn't work in the long term in today's workplace.
"An authoritarian management style usually results from a perception gap. Management sees things either too optimistically or too pessimistically.
In this context, managers must understand that fixed top-down structures are not helpful. Authoritarian leadership styles usually result from perception gaps. Management often sees things either too optimistically or too pessimistically. Both misperceptions are dangerous. When establishing New Work, it is important to use data analysis for a reality check before making big decisions.
The new Office
It seems that many companies have invested in their office space in order to win back employees*. Düsseldorf, for example, has seen healthy growth in the first quarter of 2022 of 36% in office space turnover in the first quarter of 2022. However, the reality is that mix activities like emails, meetings, and focus work can now be done where employees* want. It's hard to make an open-plan office attractive, however well equipped it may be.
Employees plan their day based on a new, firmer understanding of their needs. What actually draws them from home to an office is usually one of two needs: To be surrounded by colleagues for workshops, one-on-one meetings, or collaborative projects, and to be able to work in a focused manner without the interruptions that exist in a home office setting. Existing office spaces are usually not designed and equipped to meet these scenarios. The needs of employees can only be met if office concepts are rethought. New Work requires radical rethinking, not only in terms of corporate strategies and products, but also internally. The digital workplace is one of ten new work trends that we have summarized for 2023. You can find more information here.
New teamwork
New Work is forcing many companies to rethink their strategies and core offerings. As a rule, they want to be everything at once - the fastest, the most innovative, and the company with the best quality. This is virtually impossible, as it requires values that can be contradictory. Yes, when time and budget allow, high-quality innovation can be delivered quickly, but what about in the real world?
An organization's values provide important guidance when teams have to make tough decisions. New Work and the decoupled, direct communication that comes with it, favor the avoidance of unpleasant discourse about change. Fostering collaboration in difficult times remains an important management task, regardless of which forms of communication are used.
"We are exposed to new freedoms and a working world where everything is possible. Adapting to this leads to stress and decision fatigue. New Work can therefore mean, contrary to intuition, that employees welcome intensive and consolidated leadership from the employer.
It will be helpful for many to take up and continue discourses on individual problems at the micro level. Too often, however, supervisors are expected to take the reins. Adjusting to new freedoms leads to stress and decision fatigue among employees. At the height of the lockdown, for example, 32% of adults in the U.S. had difficulty making even the simplest decisions. New Work can mean - counter-intuitively - giving employees clear lines and also limiting freedoms to give them a framework they need.
Accepting the "New Work" challenge
It seems that after the pandemic, small team units in particular can organize themselves remotely very well anyway. The bigger challenge is to connect cross-functionally internally. Having survived the initial phase of change with technological adjustments, leadership must now invest time and effort at higher organizational levels. The focus shifts from the micro level to the macro level.
"Theonly way to retain employees is to invest in a new, tailored working environment. In addition to infrastructure, this also means rethinking leadership, communication and collaboration.
The motto "one size fits all" definitely does not apply here. In the context of New Work, many people seem to be searching for the one right formula. What's better? Two days in the office and three days remote work? Or the other way around? But unfortunately, it requires more than that. New Work needs radical rethinking on an individual level: balance of time, tools, technology and strategy must be found for each company. With the threat of resignation looming, the only way to retain employees is to create a new, customized working environment. In addition to infrastructure, this also means rethinking leadership, communication and collaboration. And time is pressing. So why wait?
Written for CXO Mag by NTT Data, October 25, 2022.