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The Mysterious Art and Science of
    Knowledge-Worker Performance
                   Thus far, researchers and managers alike
                   have a very limited understanding of
                   what makes knowledge workers tick.
                   But by manipulating two key leverage
                   points, companies can begin to shift the
                   balance from art toward science.


                   Thomas H. Davenport, Robert J. Thomas
                   and Susan Cantrell
Introduction
Peter Drucker
Insisted on the need to
pay more attention to knowledge work
and the people doing such work.
understanding of knowledge-worker productivity
We are in the year 2000 roughly where we were in the year
1900 in terms of the productivity of the manual worker.

           Manual work                 Knowledge work




                                  No Frederick Taylor
                                    or Henry Ford

Frederick Taylor
             Henry Ford
Most businesspeople today would agree with
Drucker about the importance of knowledge work

 1. Knowledge work is at the heart of innovation


 2. Recruiting and retaining the best knowledge
    workers are vital to organizational success

 3. Focus on knowledge-worker performance is
   3. way of uniting what are often separate tasks,
    a
    such as strategic planning, organizational design
    and IT investment
The problem of knowledge-worker performance



 1. One that is too sweet to ignore

 2. Sweet problems are not always tractable

 3. Truly sweet problems may require the creation of
    radically new concepts and toosl before they can
    be solved
Agenda

1. Identify the five key issues
 that they saw companies struggling with in their handling of
 knowledge work.



2. Framework
  that can help organizations think more clearly about how they
  might go about improving knowledge-worker performance
Identify the five key issues
The five key issues
1. The determinants of knowledge-worker performance are
   becoming clear. How to integrate them remains murky

2. Many organizations resist the idea that segmentation of
   knowledge workers is necessary

3. No one seems to own the problem of knowledge-worker
   performance

4. Companies are experimenting heavily with workplace
   redesign, but they aren't learning very much

5. There is great reluctance to alter knowledge work,
   especially at the high end
1st Issue
The determinants of
 knowledge-worker performance are
        becoming clear.

How to integrate
           them remains murky.
determinants of white-collar productivity
                              Management
information technology




                         workplace design
Ex. Information Technology
   Functional equivalent of a
   software Swiss army knife

          communication
                                     Few have figured out how
                        Instant      to get knowledge workers
collaboration
                       messaging     to actually use these tools


   Integrate                         It all amounts to expensive
                                     e-mail
Knowledge
                            E-mail
management
          Virtual teaming
The Still emerging discipline of knowledge management awaits
a model or methodology that can bridge the space between IT,
 workplace design business strategy and people management

                                 Business strategy
                                People management




  Information                                 Workplace
   technology                                  design
2nd Issue
Many organizations resist that

segmentation of
    knowledge workers
           is necessary
One major obstacle in
the way of developing
a useful model lies in
the generic use of



“knowledge worker.”
Can   an organization apply
       the   same solutions?
Can it transfer
Managers weren't ready to Differentiate their employees
 Authors found substantial differences among the
 types of people who are called knowledge workers,
 and advocates of some degree of segmentation.

                       Variety of objections


Some managers were concerned about
perceptions of   elitism in their organization
Others felt that segmentation might contradict
implicit notions of   meritocracy
3rd Issue
No one seems to own the problem of

knowledge-worker
performance.
What function

 Contributes
   to improving
      knowledge-worker performance?
Who is

 responsible
   for enabling higher levers of
     knowledge-worker performance?
Can't find the time
They are expected to focus on
current performance
Ex. HR and IT professionals


        HR

                                         Line
                                        manager          members
                    IT

A keen interest in optimizing   Fear the disruption of
knowledge work                  existing work




     Can’t effectively own the problem
Crossing paths with several staff group
Someone does get the inspiration to
do something innovative in the way
knowledge work is organized

                                                                                  Workplace
                                                                                  resource
                                                 Get evaluated on criteria like cost per square
                                                 foot rather than whether it has created space
                                                 that contributes to innovation

                                 The HR department might be more
                                 interested in tinkering with compensation
                                 and benefits – conventional fixes designed
                                 to raise productivity                                 HR




                     IT doesn’t like the kinds of solutions that
                     knowledge-worker teams relish, such as
                     peer-to-peer networking software(which can                        IT
                     threaten system security)
Ex. Cisco Systems
                                                    Overseen


                                        Executive




             HR                                                       Workplace
                                 IT                 Finance           resource

                  Meets biweekly to ensure collaboration aimed at
                  improving employees productivity and satisfaction




The team devised and implemented a new workplace design, as well
as guidelines that allow individuals to choose from a variety of work
settings to support their needs for collaborative, private or mobile work
4th Issue
Companies are experimenting heavily with
workplace design, but they

aren't learning              very much
Measures, controls, hypotheses and even
recording of lessons learned are often lacking


                                     Faith


   Fad
    Fashion           Finance
Attempt to increase the likelihood of informal interaction
             Intend to nourish social life at work


 Cappuccino               Indoor
    bar                  boulevard
                                                Talk plaza
              Hearths              Creativity
                                     room


  There is little evidence that any particular
     design increases informal meetings
Social spaces are often empty
Ex. Corning R&D group
Director makes a point of showing up regularly
   for the twice-a-day coffee breaks in the
          “creativity room”
           Encourage collaboration
Open-plan environment
IT support for knowledge workers
Personal devices are popular but not   Artificial intelligence and expert systems have never taken off
well integrated into the corporate     because of difficulties of knowledge representation and
information environment                system maintenance
5th Issue
Their is great reluctance to alter knowledge
work, especially at the high end
Knowledge work itself can often seem impervious
to change, much less to rationalization
Sometimes knowledge workers themselves are
the ones resisting change
Two dominant approaches to
  the design and management of knowledge work


1. Process perspective
 that works from the assumption that engineering principles can
 be applied to all forms of work



2. Practice perspective
  emphasizes the implicit coordination and exploration that
  produces things to do
Process perspective
     1980s – 1990s                   now

    structured
                          Repeatable processes in a
       linear              growing number of less
                              structured tasks
     repetitive


   Order fulfillment
Benefits administration
                                Product design
       Invoicing
Accounts management
Ex. Partners HealthCare
                                      real-time IT system




                     Constantly updated



                                                     Database
                                                      Histories
                                                Clinical information
                     Enter an order for a
                     test or a medicine




          Relevant information and
          suggestions that the doctor may
          or may not choose to accept
Practice perspective
           Process                                  Practice

           Hierarchical
                                               Implicit coordination
 Explicit command-and-control




The structure that gets things done   exploration that produces things to do




                                           Hire smart people and
                                              leave them alone
Ex. IDEO
 Recruit and assembling the right team

If your put a good project manager together
with the right people, the project will be good

       Organizational approach


IDEO's structure is relatively flat and the
visible perquisites of hierarchy are few
 Because high-end-knowledge workers tend to dislike hierarchy
Blend of process and practice
Continuously iterated prototyping process may
be the right mixture of practice and process
Toward More Productive
      Knowledge Work
1. It is mistake to lump all knowledge
   workers into one category


2. Some degree of choice in how and where to
   work goes a long way toward making
   knowledge workers happy
Framework
Mandatory            Modular


                         High
                                                                           One-size-fits-one
Degree of Segmentation               specialization      made-to-order

                         Moderate



                                         Fixed            Configurable      Individualized
                                       typologies          categories       segmentation




                                                             Mass               Mass
                         Low




                                    One-size-fits-all
                                                         customization      personalization




                                         Low                Moderate             High

                                                        Degree of Choice
Mandatory            Modular


                         High
                                                                           One-size-fits-one
Degree of Segmentation               specialization      made-to-order

                         Moderate



                                         Fixed            Configurable      Individualized
                                       typologies          categories       segmentation




                                                             Mass               Mass
                         Low




                                    One-size-fits-all
                                                         customization      personalization




                                         Low                Moderate             High

                                                        Degree of Choice
Mandatory            Modular


                         High
                                                                           One-size-fits-one
Degree of Segmentation               specialization      made-to-order

                         Moderate



                                         Fixed            Configurable      Individualized
                                       typologies          categories       segmentation




                                                             Mass               Mass
                         Low




                                    One-size-fits-all
                                                         customization      personalization




                                         Low                Moderate             High

                                                        Degree of Choice
Mandatory            Modular


                         High
                                                                           One-size-fits-one
Degree of Segmentation               specialization      made-to-order

                         Moderate



                                         Fixed            Configurable      Individualized
                                       typologies          categories       segmentation




                                                             Mass               Mass
                         Low




                                    One-size-fits-all
                                                         customization      personalization




                                         Low                Moderate             High

                                                        Degree of Choice
Mandatory            Modular


                         High
                                                                           One-size-fits-one
Degree of Segmentation               specialization      made-to-order

                         Moderate



                                         Fixed            Configurable      Individualized
                                       typologies          categories       segmentation




                                                             Mass               Mass
                         Low




                                    One-size-fits-all
                                                         customization      personalization




                                         Low                Moderate             High

                                                        Degree of Choice
Mandatory            Modular


                         High
                                                                           One-size-fits-one
Degree of Segmentation               specialization      made-to-order

                         Moderate



                                         Fixed            Configurable      Individualized
                                       typologies          categories       segmentation




                                                             Mass               Mass
                         Low




                                    One-size-fits-all
                                                         customization      personalization




                                         Low                Moderate             High

                                                        Degree of Choice
Mandatory            Modular


                         High
                                                                           One-size-fits-one
Degree of Segmentation               specialization      made-to-order

                         Moderate



                                         Fixed            Configurable      Individualized
                                       typologies          categories       segmentation




                                                             Mass               Mass
                         Low




                                    One-size-fits-all
                                                         customization      personalization




                                         Low                Moderate             High

                                                        Degree of Choice
Mandatory            Modular


                         High
                                                                           One-size-fits-one
Degree of Segmentation               specialization      made-to-order

                         Moderate



                                         Fixed            Configurable      Individualized
                                       typologies          categories       segmentation




                                                             Mass               Mass
                         Low




                                    One-size-fits-all
                                                         customization      personalization




                                         Low                Moderate             High

                                                        Degree of Choice
Mandatory            Modular


                         High
                                                                           One-size-fits-one
Degree of Segmentation               specialization      made-to-order

                         Moderate



                                         Fixed            Configurable      Individualized
                                       typologies          categories       segmentation




                                                             Mass               Mass
                         Low




                                    One-size-fits-all
                                                         customization      personalization




                                         Low                Moderate             High

                                                        Degree of Choice
Mandatory            Modular


                         High
                                                                           One-size-fits-one
Degree of Segmentation               specialization      made-to-order

                         Moderate



                                         Fixed            Configurable      Individualized
                                       typologies          categories       segmentation




                                                             Mass               Mass
                         Low




                                    One-size-fits-all
                                                         customization      personalization




                                         Low                Moderate             High

                                                        Degree of Choice
Segmenting Work Environments
   Low         Companies with a low level of segmentation provide one standard work setting for all
Segmentation   employees

                Inexpensive              efficient           Produce a misfit




  Moderate     Companies group their employees into a limited number of categories and define work
Segmentation   settings for each.

                  Familiar categorization schemes



   High
               Specifically tailored to small groups of people on a one-off basis
Segmentation

                   Enables tiger degree of fit                 expensive            Time-consuming
Providing individual Choice
Low Choice    Work environments are fixed and immutable
              Employees cannot configure their workstations or work at home as they see fit

                    Easy to manage                  Don’t necessarily save money



 Moderate     Some companies will allow their employees to make some choice, but only within a menu
  Choice      of defined options

                Align work styles and preferences                  Real budgetary limitations


              A few companies allow their knowledge workers to determine numerous aspects of their
High Choice   own work settings
              Employees may be encouraged to purchase their own furniture or technology solutions
Choosing a Solution
How
homogeneous
      is your organization?
How

important
  is it for your organization
   to align knowledge workers’
      need and their work settings?
What level of resources are you
willing to dedicate?
Closing
Whichever solution one choose, it won't
work if it isn't carefully implemented

It must be remembered, that all solutions
eventually fail

Organization therefore monitor the
changing needs of their knowledge workers
and keep abreast of how new technologies
may enable new ways of working
No one has all the answers on how to
improve knowledge work, but managers
shouldn't feel paralyzed
They are correct not to attempt to engineer
or program knowledge work, but that
doesn't mean such work lacks structure,
cyclicality or leverage points for change
The keys are to maintain a balance between
process and practice, to treat workers doing
different kinds of work in appropriate ways,
and to focus on more than simply hiring
better knowledge workers

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004 the mysteriousartandscienceofknowledge-workerperformance_ver1.0

  • 1. The Mysterious Art and Science of Knowledge-Worker Performance Thus far, researchers and managers alike have a very limited understanding of what makes knowledge workers tick. But by manipulating two key leverage points, companies can begin to shift the balance from art toward science. Thomas H. Davenport, Robert J. Thomas and Susan Cantrell
  • 3. Peter Drucker Insisted on the need to pay more attention to knowledge work and the people doing such work.
  • 4. understanding of knowledge-worker productivity We are in the year 2000 roughly where we were in the year 1900 in terms of the productivity of the manual worker. Manual work Knowledge work No Frederick Taylor or Henry Ford Frederick Taylor Henry Ford
  • 5. Most businesspeople today would agree with Drucker about the importance of knowledge work 1. Knowledge work is at the heart of innovation 2. Recruiting and retaining the best knowledge workers are vital to organizational success 3. Focus on knowledge-worker performance is 3. way of uniting what are often separate tasks, a such as strategic planning, organizational design and IT investment
  • 6. The problem of knowledge-worker performance 1. One that is too sweet to ignore 2. Sweet problems are not always tractable 3. Truly sweet problems may require the creation of radically new concepts and toosl before they can be solved
  • 7. Agenda 1. Identify the five key issues that they saw companies struggling with in their handling of knowledge work. 2. Framework that can help organizations think more clearly about how they might go about improving knowledge-worker performance
  • 8. Identify the five key issues
  • 9. The five key issues 1. The determinants of knowledge-worker performance are becoming clear. How to integrate them remains murky 2. Many organizations resist the idea that segmentation of knowledge workers is necessary 3. No one seems to own the problem of knowledge-worker performance 4. Companies are experimenting heavily with workplace redesign, but they aren't learning very much 5. There is great reluctance to alter knowledge work, especially at the high end
  • 10. 1st Issue The determinants of knowledge-worker performance are becoming clear. How to integrate them remains murky.
  • 11. determinants of white-collar productivity Management information technology workplace design
  • 12. Ex. Information Technology Functional equivalent of a software Swiss army knife communication Few have figured out how Instant to get knowledge workers collaboration messaging to actually use these tools Integrate It all amounts to expensive e-mail Knowledge E-mail management Virtual teaming
  • 13. The Still emerging discipline of knowledge management awaits a model or methodology that can bridge the space between IT, workplace design business strategy and people management Business strategy People management Information Workplace technology design
  • 14. 2nd Issue Many organizations resist that segmentation of knowledge workers is necessary
  • 15. One major obstacle in the way of developing a useful model lies in the generic use of “knowledge worker.”
  • 16. Can an organization apply the same solutions?
  • 18. Managers weren't ready to Differentiate their employees Authors found substantial differences among the types of people who are called knowledge workers, and advocates of some degree of segmentation. Variety of objections Some managers were concerned about perceptions of elitism in their organization Others felt that segmentation might contradict implicit notions of meritocracy
  • 19. 3rd Issue No one seems to own the problem of knowledge-worker performance.
  • 20. What function Contributes to improving knowledge-worker performance?
  • 21. Who is responsible for enabling higher levers of knowledge-worker performance?
  • 22. Can't find the time They are expected to focus on current performance
  • 23. Ex. HR and IT professionals HR Line manager members IT A keen interest in optimizing Fear the disruption of knowledge work existing work Can’t effectively own the problem
  • 24. Crossing paths with several staff group Someone does get the inspiration to do something innovative in the way knowledge work is organized Workplace resource Get evaluated on criteria like cost per square foot rather than whether it has created space that contributes to innovation The HR department might be more interested in tinkering with compensation and benefits – conventional fixes designed to raise productivity HR IT doesn’t like the kinds of solutions that knowledge-worker teams relish, such as peer-to-peer networking software(which can IT threaten system security)
  • 25. Ex. Cisco Systems Overseen Executive HR Workplace IT Finance resource Meets biweekly to ensure collaboration aimed at improving employees productivity and satisfaction The team devised and implemented a new workplace design, as well as guidelines that allow individuals to choose from a variety of work settings to support their needs for collaborative, private or mobile work
  • 26. 4th Issue Companies are experimenting heavily with workplace design, but they aren't learning very much
  • 27. Measures, controls, hypotheses and even recording of lessons learned are often lacking Faith Fad Fashion Finance
  • 28. Attempt to increase the likelihood of informal interaction Intend to nourish social life at work Cappuccino Indoor bar boulevard Talk plaza Hearths Creativity room There is little evidence that any particular design increases informal meetings
  • 29. Social spaces are often empty
  • 30. Ex. Corning R&D group Director makes a point of showing up regularly for the twice-a-day coffee breaks in the “creativity room” Encourage collaboration
  • 32. IT support for knowledge workers Personal devices are popular but not Artificial intelligence and expert systems have never taken off well integrated into the corporate because of difficulties of knowledge representation and information environment system maintenance
  • 33. 5th Issue Their is great reluctance to alter knowledge work, especially at the high end
  • 34. Knowledge work itself can often seem impervious to change, much less to rationalization Sometimes knowledge workers themselves are the ones resisting change
  • 35. Two dominant approaches to the design and management of knowledge work 1. Process perspective that works from the assumption that engineering principles can be applied to all forms of work 2. Practice perspective emphasizes the implicit coordination and exploration that produces things to do
  • 36. Process perspective 1980s – 1990s now structured Repeatable processes in a linear growing number of less structured tasks repetitive Order fulfillment Benefits administration Product design Invoicing Accounts management
  • 37. Ex. Partners HealthCare real-time IT system Constantly updated Database Histories Clinical information Enter an order for a test or a medicine Relevant information and suggestions that the doctor may or may not choose to accept
  • 38. Practice perspective Process Practice Hierarchical Implicit coordination Explicit command-and-control The structure that gets things done exploration that produces things to do Hire smart people and leave them alone
  • 39. Ex. IDEO Recruit and assembling the right team If your put a good project manager together with the right people, the project will be good Organizational approach IDEO's structure is relatively flat and the visible perquisites of hierarchy are few Because high-end-knowledge workers tend to dislike hierarchy
  • 40. Blend of process and practice Continuously iterated prototyping process may be the right mixture of practice and process
  • 41. Toward More Productive Knowledge Work 1. It is mistake to lump all knowledge workers into one category 2. Some degree of choice in how and where to work goes a long way toward making knowledge workers happy
  • 43. Mandatory Modular High One-size-fits-one Degree of Segmentation specialization made-to-order Moderate Fixed Configurable Individualized typologies categories segmentation Mass Mass Low One-size-fits-all customization personalization Low Moderate High Degree of Choice
  • 44. Mandatory Modular High One-size-fits-one Degree of Segmentation specialization made-to-order Moderate Fixed Configurable Individualized typologies categories segmentation Mass Mass Low One-size-fits-all customization personalization Low Moderate High Degree of Choice
  • 45. Mandatory Modular High One-size-fits-one Degree of Segmentation specialization made-to-order Moderate Fixed Configurable Individualized typologies categories segmentation Mass Mass Low One-size-fits-all customization personalization Low Moderate High Degree of Choice
  • 46. Mandatory Modular High One-size-fits-one Degree of Segmentation specialization made-to-order Moderate Fixed Configurable Individualized typologies categories segmentation Mass Mass Low One-size-fits-all customization personalization Low Moderate High Degree of Choice
  • 47. Mandatory Modular High One-size-fits-one Degree of Segmentation specialization made-to-order Moderate Fixed Configurable Individualized typologies categories segmentation Mass Mass Low One-size-fits-all customization personalization Low Moderate High Degree of Choice
  • 48. Mandatory Modular High One-size-fits-one Degree of Segmentation specialization made-to-order Moderate Fixed Configurable Individualized typologies categories segmentation Mass Mass Low One-size-fits-all customization personalization Low Moderate High Degree of Choice
  • 49. Mandatory Modular High One-size-fits-one Degree of Segmentation specialization made-to-order Moderate Fixed Configurable Individualized typologies categories segmentation Mass Mass Low One-size-fits-all customization personalization Low Moderate High Degree of Choice
  • 50. Mandatory Modular High One-size-fits-one Degree of Segmentation specialization made-to-order Moderate Fixed Configurable Individualized typologies categories segmentation Mass Mass Low One-size-fits-all customization personalization Low Moderate High Degree of Choice
  • 51. Mandatory Modular High One-size-fits-one Degree of Segmentation specialization made-to-order Moderate Fixed Configurable Individualized typologies categories segmentation Mass Mass Low One-size-fits-all customization personalization Low Moderate High Degree of Choice
  • 52. Mandatory Modular High One-size-fits-one Degree of Segmentation specialization made-to-order Moderate Fixed Configurable Individualized typologies categories segmentation Mass Mass Low One-size-fits-all customization personalization Low Moderate High Degree of Choice
  • 53. Segmenting Work Environments Low Companies with a low level of segmentation provide one standard work setting for all Segmentation employees Inexpensive efficient Produce a misfit Moderate Companies group their employees into a limited number of categories and define work Segmentation settings for each. Familiar categorization schemes High Specifically tailored to small groups of people on a one-off basis Segmentation Enables tiger degree of fit expensive Time-consuming
  • 54. Providing individual Choice Low Choice Work environments are fixed and immutable Employees cannot configure their workstations or work at home as they see fit Easy to manage Don’t necessarily save money Moderate Some companies will allow their employees to make some choice, but only within a menu Choice of defined options Align work styles and preferences Real budgetary limitations A few companies allow their knowledge workers to determine numerous aspects of their High Choice own work settings Employees may be encouraged to purchase their own furniture or technology solutions
  • 56. How homogeneous is your organization?
  • 57. How important is it for your organization to align knowledge workers’ need and their work settings?
  • 58. What level of resources are you willing to dedicate?
  • 60. Whichever solution one choose, it won't work if it isn't carefully implemented It must be remembered, that all solutions eventually fail Organization therefore monitor the changing needs of their knowledge workers and keep abreast of how new technologies may enable new ways of working
  • 61. No one has all the answers on how to improve knowledge work, but managers shouldn't feel paralyzed They are correct not to attempt to engineer or program knowledge work, but that doesn't mean such work lacks structure, cyclicality or leverage points for change
  • 62. The keys are to maintain a balance between process and practice, to treat workers doing different kinds of work in appropriate ways, and to focus on more than simply hiring better knowledge workers