From "help me" to Engaged Productivity - 90 days later - IDC
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Chapter An ISG Report, with Unisys 03 90 days later - From “help me” to Engaged Productivity Boosting Human Mindfulness and Engagement while increasing Digital Connectedness and Productivity Welcome to the New Future
TABLE OF CONTENTS 2 WHO COULD HAVE PREDICTED THAT THERE WOULD BE HUNDREDS OF MILLIONS OF NEW OFFICES IN 2020? 4 FROM DESIGN FOR EFFICIENCY TO DESIGN FOR RESILIENCE Who benefited and why? Why did they benefit? 6 UNDERSTANDING THE CHANGES BROUGHT ON BY COVID-19 A brief history of COVID-19 The shift in ways of working Generational expectations and differences Trends in how work might change 15 BENEFITS AND ISSUES WITH A REMOTE WORKFORCE The myths and reality Productivity Trends in time Non-IT benefits Equality and access to a wider all-inclusive workforce WFH legal issues and liabilities 26 HOW HUMANS ACTUALLY WORK New challenges now faced The issue of Zoom fatigue Human behaviors and the psychology of continual work 27 HOW TECHNOLOGY HAS SUPPORTED THE MOVE Tech issues have not gone away Trends in remote support 30 ISG LEADING THE WAY ISG identifies possible solutions – not all future workplace solutions are created equal Finding the unique in a sea of change 32 TECHNICAL SUPPORT HAS GOTTEN HARDER, EXPECTATION SAYS IT GETS CHEAPER Adding intelligence Intelligence, intelligently added Embedded conversational AI Integrated AI Automated analytics Analyzing sentiment Solving issues in the digital workplace – improving productivity Reducing costs Improving speed and quality of service 35 ENHANCING THE HUMAN WORKPLACE The future is now 35 THE KEY STEPS TO DELIVER THE FUTURE BUSINESS MODEL 37 CONCLUSIONS The eight steps to success 37 THINGS YOU CAN DO NOW 2 An ISG Report. ISG Confidential © 2021 Information Services Group, Inc. All Rights Reserved.
EXECUTIVE SUMMARY In the last 12 months, we have seen the largest For the people working from home, the way of working population movement ever in the history of the world. has forever been changed by the virus. As a result, Through a historical drive for efficiency, hundreds corporations have had to adapt how they enable, of millions of new offices have been created almost manage and support their employees. Home-based overnight, leading to workers sitting at home creating employees are working up to 40 percent longer with a near 1,000 percent increase in demand for video no correlated increase in productivity. This in itself has conferencing and collaboration tools with little created negative effects after the initial work-at-home improvement in technology. Suddenly, we realized that honeymoon period abruptly ended. The reason for organizations have historically overlooked resiliency, this is that the technology deployed is reported to be leading to a rush in shoring up corporate security and unsatisfactory, and issues take longer to solve. People business continuity. This has created both benefits and are becoming more stressed out, and their personal issues that employers need to address as we move into time has taken a hit. Previously, when ad hoc at-home a new way of working in 2021. It has also created new work happened, it seems it was easier to delineate work paradoxes where previously perceived benefits such and personal time. Now, this line has been blurred. as work/life balance when working at home have been These issues faced by the human workforce can severely tested and, in many cases, where implemented result in a positive or negative productivity spiral that poorly, dramatic shifts in the wrong direction. businesses need to understand and be aware of. Understanding how people work is as important Management has conflicting and contrasting demands, Employee as understanding what they do. which have resulted in some interesting practices sentiment will be vital in the new future. impacting how they deploy remote performance management, ensure staff feel part of the team and When designing the future of work, organizations need deploy new people-management cultures. On top of to consider three areas: physical, digital and human this, the technology of the pre-pandemic world has only workplaces. The physical workspace that workers used advanced slightly, which has resulted in many people to know and love has become dust ridden and only now working harder to bridge the organizational shortfalls, is being opened up a gain subject to COVID-19 safety provision technology tools, resolve IT problems and protocols. Organizations will need to make plans to measure KPIs. adapt these environments into safe and collaborative workspaces for segments of workers to come back Employees want to work and be able to manage their to. These workspaces also will need to be integrated time flexibly. They just want their lives and work to work into the digital remote workplace in which workers for them. If anything, the pandemic has shown that the can seamlessly choose where they want to work but future we thought we were moving toward has caused participate in processes or teams in the same way they employees and employers to realize there are new work would in person. Organizations also will need to take models that enable a wholesale change of operations, into account the needs and wishes of employees. customer experience and human interaction. This will be achieved through the seamless connection The majority of office workers have seen the light of physical space redesign with end-to-end digital and now want to remain working at home for at least operations that are managed and operated by smart 50 percent of their time. For this digital workplace, human-digital cognitive technologies that can sense the however, it has become clear that organizations that needs of the customer, employee and operations. successfully moved all their workers home and onto mobile technology seem to believe that the problems ISG has used its independent status to assess the are solved, relying on employees and teams to solve future-of-work marketplace. Companies must rethink their own issues. This is not the case, and indeed it is how they manage productivity and connectivity in the not the end of the transformation. It is not even the future workplace. The use of automation and proactive beginning of the end. It is the end of the beginning, technology to boost health and happiness is something and employers need to look hard at the cultural and that jumped out in the provider market resulting in this personal shift that the pandemic has caused. There is third chapter of ISG’s 90 days eBook series. As the title much more work to be done. says, welcome to the new future. 1 An ISG Report. ISG Confidential © 2021 Information Services Group, Inc. All Rights Reserved.
how internal process and management oversight are WHO COULD HAVE PREDICTED limiting creativity and innovation, which they then THAT THERE WOULD BE report to the management. HUNDREDS OF MILLIONS OF Next comes my favorite part and one of the all-time NEW OFFICES IN 2020? classic scenes from any movie. After the Bobs recommend to put him on the management fast-track Prior to the outbreak of coronavirus in early 2020, while firing a number of employees who have worked over 85 percent of office managers saw working from in the same way for years, management disagrees and home as a perk. Even though 51 percent of the office a classic consultant, management tête-à-tête occurs. working population worked from their homes at least This shows that desk-based, ill-thought-out classic part of one day a week, only a tiny percentage were processes can be done from anywhere. required to work from home full time. This is because One of the Bobs takes charge, with a laser focus many organizations’ internal and management on Bill Lumbergh, the film’s infamous and pointless processes were not geared to manage working from manager. “So let me ask you, we feel that you just home for even short periods of time. This resulted haven’t challenged the workers enough, he says, in the mainly office-driven operations we saw pre- and when the management disagree, the Bobs bring pandemic. home the argument with data. “And how much time To put this in context, if you’ve ever seen the cult would you say you spend each week in the office classic 1999 movie, “Office Space,” it demonstrates in dealing with these TPS reports?” The scene ends a fanciful way how the most unusual of circumstances with the two staring at each other with daggered can change the way employees want to work to eyes and management realizing they need to change. improve productivity and happiness. In this case, Lumbergh, simply utters the now famous line, “yeh- a hypnotherapy session forever changes how a ahhh,” and sips his coffee. Peter gets promoted and frustrated and unmotivated U.S. software employee his work life balance and life in general improves. named Peter views his desk job and life. He transforms The movie shows exactly how frustrated employees from a desk-bound tamed man always fearful of his feel and how company bureaucracy can influence matrix of bosses complaining about his TPS reports motivation and morale, told in a hilarious modern to a corporate rebel who finds better ways of doing workplace classic. things, refuses to work overtime, plays games on his And this is the problem: Before the coronavirus, the desk and leaves the office whenever he desires. As workplace was seen as an office with physical desks, the company is undergoing a period of cost pressure, meeting rooms and some break out areas to meet and two external consultants, both named “Bob,” arrive to collaborate. The “future of work” was described, and assess the company’s employees, including Peter. a future aspirational world was promoted by keynote In the classic scene, the two Bobs ask how Peter speakers and well-known entrepreneurs. These global spends his typical day, who explains to them in blunt aspirations of a more remote workforce and the terms how bored he is. He describes how bad the TPS benefits it brings to work-life balance and productivity reports are and says, “The thing is, Bob, it’s not that were and are (but, oh boy, how it has changed) the I am lazy, it’s that I just don’t care. It is a problem of topic of conferences around the world where digital motivation, if I work my ass off and we ship a few more providers demonstrated the art of the possible units, what do I get out of it? And another thing, I have through technology and communication platforms eight different bosses right now, so if I make a mistake, enabling employees to work at home. I have eight different people coming by my desk to At one of these conferencesi, founder and chairman tell me about it. So, my only real motivation is to not of Virgin Richard Branson said, “We like to give people have them come by and hassle me about it, that, and the freedom to work where they want, safe in the the fear of losing my job. But you know what Bob, that knowledge that they have the drive and expertise to will make someone work just hard enough not to get perform excellently, whether they are at their desk fired.” or in their kitchen. Yours truly has never worked out In a final brutal twist, he shows the two Bobs exactly of an office, and never will.” And this is great, for the 2 An ISG Report. ISG Confidential © 2021 Information Services Group, Inc. All Rights Reserved.
insightful few, where they literally can work anywhere. by the ILO as those who can or will work at home People who think like Branson have made investments permanently as described above. From home or to challenge the status quo and enable people to teleworkers are those who can work from home some flourish to deliver saleable services and commodities or all of the time without it being a permanent base. from anywhere, removing barriers to success as they Not all organizations and sectors can work from home go. due to non-digitized processes or the industry they work in. In manufacturing or service industries for In the mainstream business community, though, example, a physical workforce is needed. it was a different story. Through digital workplace initiatives, some organization made changes to mobile It is estimated that approximately 25-30 percentiv of technology and elements of collaboration. These the global workforce will be working from home happened slowly, mainly due to traditional ways of multiple days a week. When translated into the delivering change and, in some instances, due to cost industries that can work from home, wev expect that benefit. These managers never thought about the approximately 76 percent of the office-based future because their futures had not been challenged. workforce will remain working from home at least half Then, just like what happened to Peter in Office Space, the time. This means that between 643 and 772 something happened that changed everything. For us million of the 3.4 billion workforcevi will work from in the real world, the pandemic hit. home on a regular basis. So the way we set up The International Labor Organization (ILO) estimatesii organizations to deliver customer value will need to that pre-pandemic approximately 7.9 percent of the change forever. world’s workforce, or about 260 million people, worked Pre-Pandemic from home on a permanent basis and that while some 51% Office were teleworkers, most were not. The number of During-Pandemic Return these people who worked at home exclusively on a 92% permanent basis was 2.9 percent, or an estimated 7.5 Post-Pandemic 2-3 Days million people. The other 5 percentage points was 76% per Week made up of the people who may have been based at home but worked part time and elsewhere, on the We saw this in the the first chapter of our 90 days road perhaps. Later e-book focusing on how to ensure that people This data is further backed up by the EUiii, which work at home did so securely using zero-trust multi- shows that between 2009 and 2019 approximately device stealth security. The second chapter, 90 5.4 percent of the workforce worked from home most Days from Firefighting to Fighting Fit, explained how organizations needed to fund that change and ensure of the time, and that the share of employed workers financial stability in the long term driven by a focus on working at home at least part time increased from 5.2 their hierarchy of needs and cube of value. percent in 2009 to 9 percent in 2019. Working from home was considerably more common among the self- This is where we pick up, because it is clear from employed than dependent employees, but the overall history that organizations focused on a centralized, figure remained at a roughly constant 5.4 percent in cheaper delivery model designed for efficiency rather that time period. This shows that across the globe, than resiliency suffered the most due to supply chain employees using their home as a place of work was a or third-party failures, as well as issues with how to nice to have rather than a mainstream way of working. ensure people could work at home using office-based systems and processes. And it is this lack of resilience And in the period of less than a month, approximately that has left us in the world we are in and has changed 92 percent of the world’s population was ordered to the world of work forever. Here, we explore the stay at home. This includes hundreds of millions of changes that have happened physically and culturally office-based workers who suddenly needed security, in the future of work, where employees now work technology, process, and support to work from home. seamlessly at home, or wherever they need to, and Not all succeeded, and the world of work changed how technology enables a brighter and healthier forever. It is worth noting here that there are two future for the aspirations predicted in 2019 that are definitions to explain. At-home work is defined now a stark reality. 3 An ISG Report. ISG Confidential © 2021 Information Services Group, Inc. All Rights Reserved.
The opportunities for future employee and human instead which requires mitigation and planning to capital models to incorporate digital tools – not all occur. It is why ISG is so successful in one of the key employees will be human – are vast and exciting. areas in sourcing and vendor management with its third-party risk management (TPRM) capabilities like GovernXviii, deployed across vendor management FROM DESIGN FOR teams worldwide. In the case of something like this, EFFICIENCY TO DESIGN no local organizational solution can mitigate risk that decimates entire value and supply chains, and because FOR RESILIENCE the human capital needed to deliver those supply As the Organization for Economic Cooperation and chains is also badly affected, they collapse. Development (OECD) explained in its April 2020vii Indeed, the OECD’s New Approaches to Economic coronavirus briefing note on the economic challenges Challenges (NAEC) Group Conference in September of the virus, the world needs to adopt a systematic 2019 on Averting Systemic Collapseix identified how resilience approach to dealing with the virus and any growing complexity and interdependence has made potential future shocks. Since the late 20th century, various global systems such as economic, public the commercial world has focused on delivering health, and cyberspace susceptible to cascading maximum value for minimum costs. This put an failure. It is clear now that from years of the emphasis on lean operations, just-in-time delivery and commercial world trying to optimize all that it can, through the concept of human buffering, operating system resilience has foundered, leaving governments, at the minimum levels of human capital needed to the public, and the environment in a weakened state. deliver in that particular location. This emphasis The OECD concludes that short-term, highly lucrative, on efficiency in the operation, management and yet fragile supply chains and economic exchanges outcomes of various economic and social systems are fragile. When disrupted, these systems may meant that much of the world relies on complex, have significant effects in unexpected areas. This nested and interconnected supply chains to deliver was in 2019, and these types of scenarios have been goods and services. discussed since the financial crashes of 2007-08 and While this has provided considerable opportunities, before as shown in the diagram on the next page. it means that like in all complex systems, tensions Then, the coronavirus arrived and, as we saw in the exist between efficiency and resiliency, including the first eBook chapters, took a significant toll on the ability to anticipate, absorb, recover, and adapt to physical, financial, and human landscape. unexpected threats. In the modern world, resiliency Now that the pandemic has raged for several is thought of in terms of disaster recovery and months, we know that organizations can adapt and fundamental infrastructure that must operate in learn. Organizations that have a diversified product times of crisis such as a country’s military and health offering or were able to adapt quickly to digital systems. In the corporate world, that translates to models delivered through multiple channels have ensuring services are delivered on time and at cost a much better chance of survival. Those that were through the careful management of risk. That risk able to adapt their workforce and delivery engines was managed through contractual relationships with to a remote delivery model most seamlessly not only suppliers of services and technology to deliver services survived but grew. to your end customer. Those suppliers accepted the risk and were responsible for risk management. Bear in mind that this refers to known risk – risks that Who benefited and why? people are aware of or acknowledge may happen and plan for. Technically, COVID-19 was unanticipated Recently the European Union published its “Telework risk, a risk that is known but so highly unlikely that in the EU before and after the COVID-19: Where We it doesn’t need mitigation. Despite the fact that a Were, Where We Head To” science policy briefx. It pandemic was high among the OECD countries, and shows that before the pandemic, people who most global risk factors, perhaps business should have often worked from home on an occasional basis were put that unanticipated risk into the known column in IT and other communications services, knowledge 4 An ISG Report. ISG Confidential © 2021 Information Services Group, Inc. All Rights Reserved.
Source: Visual Capitalist 5 An ISG Report. ISG Confidential © 2021 Information Services Group, Inc. All Rights Reserved.
intensive business services, education services sectors, empowered workforce are essential to delivery. And plus those who provided publishing, audio/visual and this is the core theme of this chapter, understanding broadcasting capabilities. Consequently, after the what employees need both physically and technically pandemic hit, the Financial Timesxi identified the to do that work and empowering them to do it through organizations that saw their stock rise the most in removal of problems and thus, making them more terms of revenue growth, and these increases were productive and enriched. Only by having technology due to new product delivery and adapted channels that “just works” and happy, healthy employees are being created. From the diagram below, it is clear that companies like those mentioned above thriving the winners in each sector mirror those that had the due to the products and services they create. And highest proportion of people who worked remotely to top it all off, as we discussed in chapter 2, their and could therefore adapt to the new conditions. Also, value proposition is highly digital, scalable and agile, those organizations that had products or services to making their services and offerings easy to consume. enable the remote working of employees benefited The areas of technical and human freedom and hugely. In the previous chapter, we explored the empowerment through enabled digital delivery and financial winners and losers in terms of growth across agility in the workplace is the theme of this chapter. the sectors. UNDERSTANDING THE CHANGES BROUGHT ON BY COVID-19 As we explored in chapter one of this series, the world saw a mass movement of people back to their homes, perhaps not seen since times described in the Bible, when everyone had to go back to their place of birth to be registered. Hundreds of millions of people of all ages, races, sex, and nationality had to stay at home and work, or be placed on the equivalent of furlough, as we saw in the U.K., or worse. This single largest mass movement of the workforce has changed the way we work, where we work and how we work most likely forever. As part of its work in understanding the shift to a new model of working, ISG mapped out every possible “day Source: https://www.ft.com/content/844ed28c-8074-4856-bde0-20f3bf4cd8f0 in the life of” (DILO) for each worker type in the future. The resulting “future worker tube map” (the tube map) that follows clearly shows the “office” of the future will Why did they benefit? include the home, remote locations, the physical office The organizations listed above typically work in digital and a hybrid of the above. and Agile ways – it doesn’t mean that they responded The tube map serves as a master plan in terms of all in agile ways, but their delivery models, with a highly the key elements that organizations need to think collaborative workforce working in agile ways, existed about. The “day in the life of” (DILO) approach to its behind the customer product or service. Companies construction shows the common areas, where tube such as Microsoft, Amazon, Zoom, Apple, Facebook, lines run together or join up such that actions need and others have workforces that can essentially work to be taken for multiple workers. In the drive to serve anywhere. Even pre-pandemic, the likes of Facebook the customer, a clear understanding of how work will had employees able to collaborate on features and be delivered is needed and this tube map reveals key capabilities from their bedrooms or corporate offices. processes and technologies to consider. The deployment of collaboration technology plus an 6 An ISG Report. ISG Confidential © 2021 Information Services Group, Inc. All Rights Reserved.
Home Worker Remote Worker Collaboration Event Automated Scripts 1st Line Fix Call Help Desk Contact Remote capture data Technical Issue Receive Video / Phone Help Desk Office Worker Agent Works with User Sign On Calls from Internal / Signal Ready for Work External Customer Securely User Credentials Sent Help Desk Customer / Attendee Escalate to 2nd Line Agent Works with User Self Service Automatically Support Facilities Management Open Work Queue Receive Internal / External 2nd Line Fix FM Team Prepare Socially FM Prep Office FM Handover FM Team Allocate Customer Contact Distant Measures Space(s) Space(s) Home Based Work Consumables to Events Resolve Issues Flexible Worker Mobile GPS Meet Colleagues / Hold Collaboration Follow Host to Exit Logs Arrival Customer Session Issue / Problem FM Track GPS Help Desk Created System Allocates FM Occupancy Backbone Support Users to Spaces System Updated Finalise FM Alerted Arrive Office / Corporate App Follow Route on Map Acoustic Bubbles Swipe In Created Output Space Free Plans Safest to Meeting Space Complete Internal Automation Agree Work that Workspaces Route Maintaining Distance Workflow as Required can be Done Planned Smart Office Captures Customer Daily Occupancy Content Automatically FM Wipe Down Use App to Downloaded Space(s) Travel to Locate Pre- IT Link Adapting Property Usage Office Contact Remote Booked Desk Close Contact Zone Signal Interest Receive Call Help Desk Smart Property 1 in work from Manager Smart Office Finalises Live GPS Meeting Detail Key Future of Work Activity Signal Logged Work From Anywhere Use App to move to desk Zone Open Workplace Working Time Ending 2 Manager Technical Issue Employee Notified of following Safest Route Major Future of Work Activity Notified Application Arrival Meeting Detail Issued to Participants FM Prepare Sign Off System Arrive at Desk / Connect Space(s) for Linked Future of Work Activity Leave Home Open and Next Event Check Calendar (re)Plan Day to Corporate Systems Zone Zone 6 Collaboration & Social Interaction 5 Digital Connectivity (Whole Image) Decide on Length of Dial into Team Applications and Virtual Work From Anywhere Go to Home Office / Zone Sign In with Availability Answer Corporate Launch Workstation Kick Off Meeting Holographic Reception Assistant Re-Sync 2 END OF DAY Health Questions Undertake Virtual Assistant Work Updates Calendar Family Time / Update Slack / Update Team FM Track GPS Overnight Health Check Team Kanban School Run Kanban at Daily in Office Update Virtual Stand-up Work on Send Signal to Prepare Assistant Personal Team Calls Productivity Backlog (AM) Output Go to Home Office / Leisurely Sign On Undertake Launch Workstation System Breakfast Securely Team Calls Arrive at Office Video Calls Free Time / Sleep Telephone Calls Make Phone Plan Next Personal Calls Prepare Output Update Slack / Undertake Day(s)/Weeks Growth Open Work Queue Team Kanban Team Calls Issue Output to Internal / External Customer Travel to Meeting Sign On Make Phone Family Time / Issue Output to Calls Kids to Bed Securely Internal / External Issue Output to Internal Physical Meeting / Physical Meeting / Close Day with Customer Collaboration Needed / External Customer Collaboration Needed Team Call Signal Ready for Work WAKE UP Customer Issue Resolved Update Slack / Break for Work on Personal Travel Home Open Work Queue Update Slack / Prepare Output Team Kanban Team Kanban Exercise / Meal Backlog (PM) Receive Phone Update Employee Discuss Issue over Complete Internal FM System Blocks Room / Calls from Virtual Assistant Availability on Phone Workflow as Required Desk and Updates Customer Log into FM System Informs Employee Productivity System Occupancy Rates Check Out of Desk Swipe Out Accept Invite Select type of Book Desk if Signal Ready for Work Provide Improved Space Needed Receive Video Required Customer Experience Complete Internal Calls from Follow Route on Map by Video Workflow as Required Close Call Sign out using Customer to Vacate Maintaining Distance Holographic Reception Choose Receive H&S Corporate App on Invite Attendees Guidance Phone Updated Consumables Receive Customer FM Update Customer Wants Contact Guide Customer to Close Video Call Respond to Complete Internal Occupancy Figures Assistance Customer Chat Solve Issue Workflow as Required Internal Systems Sign Off System Update KPI / Workload Working Time Ends Logs onto Corporate Zone Close Chat Portal / App 3 Embedded Intelligent Automation Workstation / sync with Users Notified of Corporate Network Online Portal Automation Pulls Internal Processes updates by next AM Supports Customer Data from CRM / Automated Automation Logs Systems and Tracks Issues Internal Productivity System Notified Machine Learning Backbone Proactively Automation Reviews End of Day System End of Day Sentiment Home Based Workers Online Portal / App Automation Logs and Capability Learns Patterns Undertake Fixes Logs for Issues Health Check Analysis Completed Signalled Work Needed Updated with Latest Updates Knowledge Base Information Internal Productivity Employee Availability System Updated Planned Patches / Updates Run Automatically Overnight Algorithms Produce Issue / User Hotspots Issue / User Hotspot Machine Learning Cases Created Capability Reconciles Expected versus Actual Users Notified of updates by next AM Affected Users Notified Solution Implemented Solution Created Productivity System Productivity System Plans Proactive Fix Completed Communication Created Solution Tested Backbone Worker Verifies Actual Operator Required Operators Troubleshoots Availability Zone 4 Always-On IT Source: ISG 7 By Iain Fisher, Director – The Future of Work
procured and delivered to where they needed to be. A brief history of COVID-19 Job done, right? No. The diagram below shows how the pandemic played “This is not the end. It is not even the out in these three areas of the physical, digital and human workplaces, again in a tube map style. beginning of the end. But it is, perhaps, the end of the beginning.” Manage Workforce When Winston Churchill famously said the quote Pandemic size above, the U.K. was just coming out of the Battle of Britain, the decisive air battle in World War II. And Close Offices Assess Devices Define Device like that period, the U.K. has run up large debts, both / Technology Strategy Mobilise remote financially and physically. Currently, the U.K. has spent workforce Address Economic over £210 billion tackling the pandemic, and the Office Issue Mobile challenges Technology of Budget Responsibility (OBR) estimates that this will Assess Situation reach £370 billion this financial year alone. Britain Maintain Manage Internal are on track to hit a higher level of debt as a share of operations remotely IT Issues national income since the second World Warxii. Like Assess Technology World War II, the pandemic has impacted nearly every Re-shape Understand Organisation Needs nation on the planet. customer behaviours Understand Understand With vaccination wins being declared in the U.K., Device Needs of Deploy Convergent Redesign Work Needs of Employees Devices the U.S. and Russia, the actions taken to date only Operations Employees represent the beginning of the end. It is conceivable Deliver Better Physical Work / Life Digital Workplace and indeed highly likely that the world will still be in Workplace Balance Human Workplace some form of restrictions until the third or fourth quarter of 2021, simply because the vaccine needs Source: ISG time to be rolled out and the population needs time to build immunity. As we all know, the pandemic caused a mass exodus of the working population as offices were shut and And this is the main issue. Most organizations think the center of urban cities became uninhabitable for they have fought back the blaze, and now they can workers, creating scenes not unfamiliar to what a continue operating in this interim way of working disaster movie might project. This mobilization then without any further change – thinking that this is the meant that the physical, digital, and human aspects new normal. This is not true. Areas such as office needed to be considered, which is where chapter usage and its associated costs are becoming more one kicks off. We sent all the workers home, and apparent as workers shift to home. Offices will still hoped that we did it securely. Now we have a remote be needed but their usage has and will change. But workforce using various forms of technology. The now is the time to understand the needs of the challenge has been to simultaneously keep the lights employees and what technical requirements they on financially and deliver services digitally – all while have so that business can once again grow in a enabling and supporting a remote workforce. This is period unprecedented downturn. This is true not just where the digital workplace comes in. Chapter two because of the pandemic but any potential future focuses on the cost optimization and identification impact that may still come to challenge us. It is for of opportunity to adapt the financial, operating, these reasons that we need to fully understand how and technical models of the business. This cost the population WILL work from home a significant optimization impacted the people and the technology. period time during the week whether they want to return to the office or not. Through a reduction in people availability and the need for reduced operations, the organization was ISG has put the required needs into a simple wheel, reshaped to reduce costs. Likewise, the technical called the ISG Future Workplace Framework, which is landscape was rapidly shifted into a digital delivery shown below and describes the issues on returning to model with collaboration tech and mobile devices work and how a fully collaborative environment must 8 An ISG Report. ISG Confidential © 2021 Information Services Group, Inc. All Rights Reserved.
be provided. The pandemic has delivered the in the office to provide touchless integration with opportunity to show how we can succeed. We were the work being done will add to this. As most office able to get a large portion of some organizations spaces are leased, and for a significant period of time, working from home in a week or less – something that companies cannot just vacate office space at will. seemed impossible prior to the pandemic. Well, now They will need to rethink how they use these spaces, we need that spirit once again to transform the office and with a part time workforce can either rotate their and how we work. space to ensure thorough cleaning or can adapt the less used areas into collaboration zones that are fully integrated with collaboration and communication technology. These concepts will provide the basic 01 12 Ability to approaches needed to address the physical workspace Work from Anywhere / Safe & Secure Workspace 02 components depicted in the future workplace Any�me Uberisa�on / Seamless framework here. Con�ngent Physical / 11 Workforce Digital A digital workplace is where the physical meets Integra�on 03 the human. Through the provision of unified Culture / Performance / communications and collaboration-enabled devices Adaptable Smart Leadership Change Facili�es and technologies, we can start to integrate the remote 10 workforce into the physical workforce. This is where Future Workplace 04 we started before the pandemic by driving mobile Framework Collabora�on Team Virtualisa�on Focused tech to remote users to ensure they can connect Workspace to colleagues and deliver work. But we haven’t had 09 Unified a chance to rethink the return to post pandemic Digital / Human Augmenta�on & Communica�ons & Collabora�on 05 working, hence the Churchill quote. Now we will need Automa�on Automated / Secure Enabled to have connected employees. Check! Now we need Proac�ve Cloud Devices 08 Technical Hosted to get more of the applications and tools used onto Support Applica�ons 06 the cloud to ensure resiliency as already discussed. 07 The ability to work from anywhere and do it securely is Source: ISG one of the key advantages of cloud provisioning. Connecting employees to the digital workplace while maintaining smart and touch-free inputs can be Organizations that think they have weathered the achieved through integration of cognitive capabilities, storm and are finished in their transformation of the which brings us to the part of the book where we workplace will fall behind. Legislation and protections touch on making sure that the employees can work, will likely be put in place which will dictate how the mainly because the tools we gave them to work on workforce can interact with physical office spaces do, in fact, work and don’t continually break down or and organizations will need to build these compliance prove unreliable. This means we need to consider requirements into their thinking. automation, which enables us to think about taking As an example, and to explain the future workplace away waste from an employee’s life and boosting framework radial above, provisions need to be made available time. We further boost available time by for a safe and secure workspace for the workforce embedding digital augmentation into their work lives to return to and work form. This includes the home through the use of cognitive AI and natural language as well! There needs to be a seamless physical processing. By using simple digital assistants, we can integration with digital technologies, which will reduce ask for tasks to be done and, by having automation contact with surfaces, and the need to undertake built in, it just gets done. This saves time for manual processes where digitization will help. The employees and rounds off the digital requirements of use of smart facilities such as a well-lit workspace, air the employee of the future. quality monitoring (as COVID-19 is airborne) showing safe areas in offices or the use of IoT installed devices 9 An ISG Report. ISG Confidential © 2021 Information Services Group, Inc. All Rights Reserved.
The human workplace is where we will focus the they need to work, and it would cause them significant main part of this chapter of the book. This is where hardship should that job be lost. They have limited say it is assumed that we have sent everyone home in how they will work in the future but do still have a and removed a commute, so they must be more voice. Typically, they fall into several categories, one productive, right? No. Data shows that in fact being physical work that requires hands-on, in-person organizations that implemented this part quickly and interaction with a product or service. Manufacturing, without a thorough strategy like the tube map and logistics hospitality and retail typically fall into this wheel we have shown, employees actually feel category. For these workers, it is unlikely that much will change in terms of process or interaction. more pressured as their productivity However, the way they interact with services, and the gets worse, they get stressed and it gets services they provide most certainly will. worse still. This needs attention. To do it correctly, organizations need to implement proper management Through a move to digital supply and consumption of virtual teams which is different to that of physical models for services, these workers will still go through teams. They need to be structured properly changes in physical, digital and human workplaces. with a shift in working culture and performance As this chapter is being written, 25,000 people have management. The harshness of some organizations now been put at risk through the collapse of Arcadia to monitor employees remotely, leads to the negative Groupxiv and Debenhamsxv. About 12,000 jobs have productivity cycle above and can actually be illegal been eliminated at twoxvi majorxvii U.K. airlines, and in some areas like the EU where GDPR comes in, 9,000 have disappeared at major U.K. hotel chains regardless of it being a work situation. More on that such as Hiltonxviii, Marriottxix and Premier Innxx. later. This shift in working patterns and the fact that The main reason is that these organizations offer organizations in the UK have a total of nearly eight products that are typically consumed in a physical million people furloughed opens up the opportunity way, but those like Debenhams and other retailers when redesigning operating and business models failed to shift quickly enough to a digital delivery to use a contingent workforce. The uberization of model, instead requiring staff to operate from physical the workforce managed through new contingent brick-and-mortar stores, which had high rental costs workforce platforms – places where worker supply and and reduced customer traffic. That equation was demand is managed – means that they can pick and unsustainable even before coronavirus hit. This choose when they want to work, and organizations will should be a strong signal that the role of retail needs need to provide capacity, systems and processes to a strong digital presence and supply chain, which enable this to happen. This shift is beneficial to both allows retailers to adapt and pivot in what they offer employer and employee. All this enables employees to and provide. To do that, we will need to see a shift work when they want, where they want and in a more in people who would normally have been behind a happy, healthy way. counter to working from home providing services in new ways. Like those who already work at home due to the The shift in ways of working pandemic, retail employees have seen a change in We have already seen the physical shift in the the way they work and how they deliver to the end workforce to a widespread working-from-home model. customer. Currys, a large U.K. electronics retailer Dataxiii shows that it is highly likely we will not see this has weathered the financial storm better than most return to pre-pandemic levels where almost half the despite having large supercenters from where they working population will remain at home at least half sell goods. A significant move online and now the the week in a post pandemic world. This opens up a presence of web-based customer service agents who number of opportunities and issues in the physical, you can see and speak to live about the products has digital and human workplaces. brought the in-store customer experience online and enables customers to consume Currys’ services safely, Working at home has made individuals re-think their quickly and at their leisure. This is a great example relationship with work and how they want to continue of how an organization has used digital to adapt its working. For most, there is no decision or change, physical workplace to include the digital customer 10 An ISG Report. ISG Confidential © 2021 Information Services Group, Inc. All Rights Reserved.
experience through digital workplace change. have different needs and requirements and it is Fundamental to that change is having the employees only through understanding what those are, will working at home through changes to the human organizations be successful in determining the next workplace. steps. Some workers are now used to remote work but will need new technology to remain working remotely. What work needs done Hybrid workers who now want flexibility will need to As described in chapter one, some organizations fit into new processes and ways of working, which also adapted quickly to enable employees to work at needs to take their wishes into account. These two home while boiling the issue down to its fundamental categories of people will need training and upskilling components. As a result, in many cases, organizations to successfully move to that mode of operation as the simply moved the base of operations to a remote workforce becomes more skill-dependant rather than location to enable important processes to continue hierarchical or process driven. The workforce of the where possible. In some cases, this was clearly not future is diverse demographically and geographically. possible, and problems became clear when existing processes and service delivery were attempted from home. Where people work Imagine if over the last nine months employers had The concept of an office has changed and may need worked to identify the fundamental processes and to be entirely rethought and transformed for a post services across each department, geography or COVID-19 world. As we have already seen in ISG’s business entity and worked with employees, through Future Workplace framework earlier in this eBook, the use of data, to design what work is actually needed organizations will need to assess their use of central in the new business model. Previously, we looked at physical properties and have a strategy for its use understanding how customer habits had changed over given it is likely that it will be leased for a considerable the pandemic, and this helps organizations re-design time. Organizations will need to adapt workspaces to for the future while bringing the employees with enable a safe and trackable workspace for those who them. The world has changed and so should the ways do want to return to the office and also for facilities to organizations deliver work, services or products. support the kinds of interactions that cannot happen remotely. If the primary purpose of an organization’s space is to accommodate specific moments of How work is done collaboration rather than individual work, then this needs to be designed in with careful consideration In chapter one, we discussed the types of employees to employee needs and requirements all designed that will be needed in the future operations of post around the new future customer experience. In the pandemic organizations. These types, shown below, new future, customers will consume products and Remote Remote Workers This will also Workers shape the role, scope and requirements of Backbone Hybrid your physical Hybrid Workers Workers network of Backbone Workers offices and Workers support functions like IT Physical and HR Workers Physical Workers Source: ISG 11 An ISG Report. ISG Confidential © 2021 Information Services Group, Inc. All Rights Reserved.
services in different ways, and employees will need to They need to build trust and teamwork for your safety. deliver in new ways, which in turn drives the human And, like a cabin crew, trust between gig employees workplace and physical workplace. with no common history or access to knowledge repositories will be critical to delivering in the new The outcome of this thinking might mean that normal successfully. employee types are moved into the remote worker bucket as they no longer need to work in a central It is estimated that there are currently 78 million location full time or even at all. An organization’s freelancersxxi worldwide, and this number is expected talent can now effectively live anywhere they want if to grow. Added to this, we can now increase the right physical and digital workplaces are provided. the workforce through a more inclusive set of This means they have the power to enhance the requirements this pool will expand significantly. These business and their personal health through a rethink workers will become outcome based rather than in the way they work. salaried and we have seen a doubling of the number of gig workers in the U.K. just prior to the pandemicxxii. One possible future, which is backed up by the The CIPD, an HR professional organization, estimates data, suggests that many employees will work from that four in 10 furloughed workersxxiii will likely lose home for at least two to three days per week and their jobs in the next 12 months and that many on make infrequent trips to the office or a collaboration location to meet colleagues. Organizations will need the furlough scheme have indeed re-evaluated the to develop new cultures of people management to way they want to work in the future, now focusing ensure that this approach is a winning proposition on gig-type work, which provides a better work life/ for both employers and employees. This will create balance and the ability to work from anywhere. This is profound effects on the quality of work for the only possible, however, through the rapid expansion of business and the quality of life for the employee as collaboration technology, part of the digital workplace well as opening up potential future cost models for becoming embedded into the human and physical how organizations pay for talent. This thinking is why workplaces. The digital technology augments the the ISG future workplace is a cycle, with one discussion human and is embedded into physical infrastructure leading to another regardless of where someone starts to ensure connectivity thus ensuring both resiliency on the wheel. and flexibility, providing opportunities for creativity, rather than just efficiency. Uberization of the workforce, Technology Integration the rise of the gig economy Advances in technology will continue to push the The pandemic has created the ultimate surge in future of work agenda and make it even simpler and the contingent workforce. The uberization of the faster to work from anywhere at any time. The CEO workforce (meaning employees work when they want of Vodafone was interviewedxxiv on this subject, and to) has come about because work is no longer tied the company’s thinking mirrors that of ISG. The CEO to a central location. As we have heard, hundreds is quoted as saying that telecommunications industry of millions of workers were displaced during the sees a more virtual and automated work environment pandemic, and this has meant that it makes almost no in the future through the integration of 5G networks difference whether someone in India, Israel or Ireland and connected machines that enable a true virtualized provides the work an organization needs. Mobile and instant virtual workplace. ISG calls this the digital and collaboration technology has driven the location workplace. out of the delivery equation. It means that we now Employees afforded the ability to interact with have a globalized talent pool from which to choose. AI-powered assistants can do many things, from If you have ever boarded a plane and seen the cabin preparing smart facilities and prepping whiteboard crew saying hello to each other and discussing their presentations to incorporating virtual reality headsets different routes, this is because they are a temporary that put them at the table of a morning meeting with crew for that leg of the trip, not a permanent team. 12 An ISG Report. ISG Confidential © 2021 Information Services Group, Inc. All Rights Reserved.
co-workers around the world. Indeed, at the time Generation X – people born between 1965 to of writing this, the author became aware of Disguise 1980 XRxxv, which uses augmented reality to insert a 3D Millennial – people born between 1981 to 1996 version of an employee into a collaborative workspace or meeting. This technology enables the collaborative Generation Z – people born between 1997 to experience to be further enhanced and will improve 2012 the issues employees face working at home that we Within the workplace, there are trends within each discuss later in this e-book. group that need to be taken into account in a post COVID-19 world. Most of the Millennials and Gen Z people coming into the workplace have been sold a Generational expectations dream. For many, a number of years at a university or and differences college has led to a desire to enter a particular field or industry. However, most industries are changing and This is a key issue that most organizations have yet to changing rapidly. Considering the recruiting processes take account of. The Society for Human Resource of large corporates, a focus is on collaboration, white Managementxxvi suggests that there are five boards, digital tech, and the ability to create, which is generations, from Silent to Gen Z, working in brought to the fore on almost all occasions. But how organizations today, and they all have different needs. are they going to achieve this when everyone must However, a thorough analysisxxvii of 20 independent work at home? studies on generational groups of over 20,000 people Therefore, organizations that employ multi- cited by HBR shows that there are inconsistent generational staff need to provide a future workplace differences in job attitudes when comparing with work modalities that offer alternatives while generational groups. This is fine when looking at the the employees can still have common ground to end-to-end career of each group, but over the short collaborate. For instance, let us look at the use of term, there are indeed differences in the grouped email, a staple of the world of work. Research has generations. The generations shown below are found that there are large differences in the way classed as: Millennials and Gen Z (just to compare two groups) use email. Gen Z does use email and about 50 percent look at it once a day at least. But only 14.4 percentxxviii of them use it as a primary tool for work, while 64.9 percent use it for personal communication. They are not abandoning email, just using it in other ways. Therefore, despite their preference for social and immediate communication tools, there will need to be a culture change in the organization to deploy and use new technologies in a way that is useful for all and not just one group, or we will lose the inclusiveness of the workplace whether remote or in person. Global surveys have been undertaken during and Source: https://en.wikipedia.org/wiki/Generation_Z after the pandemic by several research companies. In one industry-leading survey of nearly 3,000 people globallyxxix, it was clear that there are differences Silent Generation – people born between 1928 to between the generations in how successfully each 1945 group is working from home. The data showed that while approximately 70 percent of Silent, Baby Boomer Baby Boomers – people born after World War 2, and Gen Xers were working from home, this tailed off between 1946 to 1964 to approximately 60 percent for Millennials and 45 percent for Gen Z. 13 An ISG Report. ISG Confidential © 2021 Information Services Group, Inc. All Rights Reserved.
This same pattern continued when workers were reduced number of days at home. Boomers, Gen X and asked if they had access to everything they needed Millennials wanted to work from home two to three to be successful at home. This is an interesting days a week, but Gen Z resoundingly were closer to perspective in that the younger generation one. A separate global survey revealed an interesting difference between the generations as they worked is less successful at home. Indeed, during the pandemic: Millennials were almost twice as the survey continued to ask how many days they likely as Boomers to feel positive about their employer would wish to continue working from home and the based on the technology and support that the same tail off pattern occurred only this time with a employer provided to enable working from homexxx. This shows the nature of Generation Zers to work and thrive when working in collaborative environments, and organizations must take this information into account when planning. It could be due to the social side of the different generations need source or it could be a training issue when considering that younger workers felt less successful and had limited access to work items remotely. Their view of working from home will improve only through an improvement in technology deployed at home to bridge these gaps and improve the “feeling of Source: Unisys Future of Work Survey, IDC, November 2020, Employee Respondents, N=558 connectedness” at home. Source: Unisys Future of Work Survey, IDC, November 2020, Employee Respondents, N=558 14 An ISG Report. ISG Confidential © 2021 Information Services Group, Inc. All Rights Reserved.
So overall key trends when properly planned and Trends in how work might implemented will be: change 1. A much more mobile and remote workforce with By 2028, 73 percent of all departments at the proper tools and infrastructure at home. organizations will have remote workersxxxi. Today, Employees in the U.S. respondents say they have millennials and Gen Z workers make up only 38 personally spent an average of US $348 to upgrade percent of the workforce, but in 2028, they will amount or improve technology while working at home due to 58 percentxxxii. Because of that, it is no wonder that to COVID-19 –$75 more than the global average almost three-quarters of companies will employ some ($273), and the second highest among 10 markets remote workers, while 33 percent of workers will be surveyedxl. fully remote by 2028. At the current time, 16 percent 2. The ability to collaborate effectively – while most of companies like Appen, a technology services are able to work in a collaborative way, according company headquartered in Australia, exclusively hire to the world economic forum, almost one in five remote workers. This is why Appen ranks first on the cite the ability to collaborate as one of their issues Forbesxxxiii list of global top 100 companies with remote with working remotelyxli. working. Others on the list include UnitedHealth 3. Technology that works seamlessly – more than Group at number 11, Humana at number 15, Dell at 50 percent of employees surveyed said their number 19, SAP at number 23, Amazon at number 24 employer needs to invest in better technology that and the listxxxiv goes on with Philips, Hilton, Salesforce, enables then to be more effectivexlii. GitLab, Gartner, Wells Fargo, etc. According to Owl Labsxxxv, 44 percent of global companies still do not 4. Automation that assists daily life – as we have allow remote work, but 16 percent of them are actually heard, more than 80 percent of companies are 100 percent remote companies. accelerating automation in response to COVID-19 but this has to include cognitive, AI and NLP-based Given the experience we have had working from automationxliii. home, it is clear it is here to stay. A survey by CBRExxxvi shows that 69 percent of millennials would give 5. The ability to become more flexible and look after up other work benefits for a more flexible working health – a significant number of people identified space. This is one of several critical statistics as this by Forbes state that they place flexibility of work impacts the employee value proposition, which means and their hours top of mind and over 40 percent human resources departments need to think about said that their mental health has declined since the offers companies make to new employees. This the pandemic startedxliv. The pre-pandemic norm is an important point we will cover shortly. Health of standardization has given way to post pandemic flexibility and agility. and safety at the home office will still be office issues! The coronavirus pandemic reshaped tech priorities BENEFITS AND ISSUES WITH for 95 percentxxxvii of companies, but such is the A REMOTE WORKFORCE speed of change. Nearly half (47 percent) have The benefits of having a remote workforce are fairly frozen their IT budgets to steady the ship and plan easy to ascertain, when properly managed. Buffer’s to spend based on required changes. Yet, four in ten state of remote work report, shown below, highlights (41 percent) admit their remote working systems what we have already described and many already may be in breach of data privacy regulationsxxxviii. know. The perception of having a flexible schedule Almost half of IT leaders said they were increasing that can be managed from anywhere due to not having spending on managing remote network operations to commute allows employees to have better work life and increasing investments in the use of cloud-based balance from the comfort of their own homes, which management platforms. Also, almost four in five are basically covers 97 percent of the graphic below. This looking at accelerating automation in response to is the panacea, and for many, is the dream scenario. coronavirusxxxix. But for many, including managers and workers, there are issues that come from working at home. 15 An ISG Report. ISG Confidential © 2021 Information Services Group, Inc. All Rights Reserved.
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