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Imagine you are WordPress. WordPress has 148 million unique visitors per month. This is only slightly fewer than Twitter. They run websites for some of the largest players in the world; companies such as Disney, Playstation and Microsoft. And yet they employ only 1170 staff globally. Those staff iterate 1000 deployments per week. And unlike any of the other companies at their level, WordPress staff work wherever and whenever they want.
The idea that you must be at work to be productive is a hangover from the days of the industrial revolution, when time not spent in the workplace was necessarily dead time. Employees were needed in the factory to operate machinery and fix problems, trying their best to avoid involuntary amputations along the way. This meant that home working was never an option. You had to be at work to be productive. After all, it’s difficult to set up a loom in your front room. But how well does this 19th century mentality translate to modern companies?
Matt Mullenweg is the CEO and founder of WordPress and their commercial parent Automattic. He is a visionary when it comes to the modern way of working. As the current global pandemic unfurls, we see swathes of the global workforce needing to become productive in new working environment – most typically working from home. Different companies are adapting to this in different ways. Below are the 5 levels of distributed working, as suggested by Matt Mullenweg.
Where does your company sit?
Level 1
These companies are completely office reliant. This may be for good reason as there are some sectors such as manufacturing which absolutely require boots on the ground – employees need to be in the office to have access to specialist machinery or technology that simply cannot be managed outside of the company’s four walls. However, most companies are what’s known as “knowledge” based companies. These companies trade in expertise, services and consultancy. So why do so many of these companies still operate in a way that relies on being in the office?
People in these companies are typically connected to the modern world in their personal life. They have mobile phones and home computers which they can use as a back up if they need to work from home. Basics like staying up to date and doing some essential work when necessary can still be completed, albeit not very efficiently. But for the most part, core processes and decision making are all done from the office. The connectivity enjoyed in their personal life is not reflected in the way they work.
Communication and data sharing in these companies is typically pretty antiquated. Data is propbably stored in discrete locations (the classic L drive or something similar) sat on particular computers or on office-based servers, only accessible physically. Sharing documents and information is typically done via paper or emails – occasionally via an internal network area.
In terms of productivity, when employees who work for an office reliant company can’t can be in the office, they are more likely to put off important work until they’re back and have access to these location based resources. Management share the anxiety of a factory foreman if people aren’t in the office. Companies like this are likely to force employees to cancel holidays or come in when it’s not advisable or appropriate for them to do so. In an attempt to remedy this, employees may resort to taking specialist equipment home with them, loading up the boot of the car with monitors and a desktop. From a security standpoint this is a disaster, let alone the impact if the company’s financial data was lost due a desktop hitting the side of the car after a too-sharp turn.
The outlook for these companies in situation like the one we’re currently facing is almost certainly bleak, with employees needing to be furloughed or have their hours cut since the infrastructure of the company is simply not flexible enough to enable employees to be at all productive outside the office.
Level 2
Most companies fit into this level. They have made some moves towards remote working. Perhaps they have installed instant messaging technology or one or two of their systems, like emails, are cloud based and can be accessed outside the perimeter of the office.
However, these companies are essentially trying to recreate what they do in the office like for like, with collaborative technology being used as an accessory to support the typical 9 – 5 work day with the same style of communication and types of interaction that exemplify the everyday office grind.
Despite using some of the technology, the specific advantages of remote working medium are not utilised. For example, these companies may share files through something like DropBox so that people aren’t relying on emailing big files all the time. However, more advanced options that promote collaboration (such as automatic version control and editing in real time) might not be used. So creating and sharing ideas in these companies is still reliant of a linear process with people working with their own personal documents in their own cliques. The outcome tends to be, at best, duplication of effort and at worst a complete lack of clarity about the goal of the project or initiative.
When you look more closely at how these companies run day to day, there may be some elements which appear remote. For example, they may use VPN connections to access office-based software. For anyone who hasn’t had the pleasure of using the VPN or Virtual Private Network, they are temperamental beasts. Sometimes you need a little key code or pager type gizmo. These can be easy to lose or worse misplace just before an important meeting. Furthermore, lots of office-based software isn’t designed to be accessed via a VPN. This can lead to IT teams botching connections to try and make it work, leaving the back door open to valuable and confidential data.
There also tends to be anxiety in these companies. Remember that despite some moves towards a remote environment, they are still wedded to the “factory mentality” of working. From this perspective, an employee being behind a desk is seen as the prime (or sometimes only) way that an employee can be productive. As a result, level 2 companies will often introduce policing – things like arbitrary activity tracking and a big brother approach like daily meetings and calls to micromanage an employee’s daily tasks. Companies do this because they think that the metric for success is how an employee is productive. The opposite happens as it drags productive employees away from important work, impacting their focus and detracting from value generation in order to tick boxes and ameliorate managers.
In many ways, level 2 companies are less productive than level 1 companies because they tend to introduce so many blockers into the daily routine. In the current climate, level 2 companies have some of the infrastructure to support them through this shift. However they may face push back from already stressed out employees who see the additional work around activity tracking as new, unfair and unnecessary burden. However, companies in this bucket are starting to think in the right way. They need to tough it out and begin to think about what’s next.
Level 3
Level 3 companies take the first major step away from the influence of the factory model as they start to take advantage of the medium properly.
In level 1 and 2 companies, engaging more senior members of the business can be difficult. Getting time in the diary is hard and emails can be simply lost in the ether. Level 3 companies shift to different forms of internal communication, using forums or chatter tools which are transparent and can be seen across the company. This shift leads to a flattened business hierarchy where senior, experienced and sought-after resources can be easily accessed by others. Also, people can quickly jump into an issue and make an impact, whether that’s advice, removing an obstacle or simply approving a plan. This removes the elongated “CC” chains where it takes hours to find the specific information needed to make a decision. The upshot is that the whole business can benefit from cross divisional and cross departmental support from all seniorities and skills.
Internal Meetings start to move away from a speaker and audience style. Instead meetings are collaborative and utilise new technology, for example Teams or Slack. A good example of how this could work is the nomination of someone in the meeting to take notes via a google sheet that everyone can see. People use words in different ways to mean different things, especially in a meeting environment. This can sometimes lead to confusion or even conflict further down the line. When people see their ideas presented back to them in real time, on a google sheet for example, it promotes discussion and understanding. While this may initially seem distracting, it actually provides clarity of ideas and a shared understanding around the expectations and outcomes of the meeting. On the same note, people can start to share data and charts really quickly by just bringing them onto screen. This would be much more difficult in a traditional office environment.
Companies start to invest in tech at this point – from collaborative software to noise cancelling audio. Cloud based platforms are pervasive. For example, some cloud based back office systems are linked meaning information is shared and available across the whole business. For example, absence of a key member of the team can often lead to lost revenue and frustrated customers because work needs to be rescheduled, impacting expectations and deadlines. With cloud based software, an absence logged in the cloud HR system from an employee at home using a mobile app can immediately link to the project system. The project system then sends a notification to other available team members of a similar skill level via mobile automatically. The work gets completed and the customer is none the wiser.
At this stage, investment in communication becomes essential. From a move to video-based conferencing to better writing; communicating with clarity, quality and skill becomes more important as the workforce becomes more distributed.
Level 4 & Level 5
The next steps are to move away completely from the view that employees need to visible (physically or virtually) at any point in order to be productive. Level 4 companies adopt an asynchronous working environment where employees are measured more on the success and quality of their work rather than how that work is completed.
For level 1 to 3, due to the company set up and culture, success depends on staff being available to work within specific working hours, defined by the company (though almost always 9 – 5). The perception is that this is the only way that the organisation can work together and achieve. However, this stops employees being able to design their own day and their own profile for productivity. After all, if you ask people to describe their ideal working environment, few people say they would be most productive after a long, cramped, costly hour-long journey so they can sit in a large, noisy room surrounded by people they don’t really know dressed in clothes they might not feel comfortable in for 8 hours in a row.
The focus for level 4 and 5 companies starts to become more humanistic. Employees are given the licence to design their working day around their physical and mental wellbeing.
An example of this could be the need to cool down after an intense meeting. The energy after a negotiation or dispute can get you firing on all cylinders – adrenaline pumps and energy is high. The last thing you can do in an office environment is go for a sprint, do some burpees or beat the devil out of a punch bag. Equally some people find focus in working with a candle at the desk. Others find that doing work on a treadmill helps them concentrate as well as help them get into exceptional shape. Working at a treadmill means you can clock up tens of thousands of steps every day. Could this be done in an office? Imagine 1,500 employees with 1,500 candles on 1,500 treadmills sprinting around the corridors after every meeting. It would be chaotic, not to mention dangerous. Working from your chosen location means you can be in the environment that’s most conducive to being productive.
Thinking about the working day differently has other benefits too. An asynchronous working environment opens up the global talent pool. In an office, work is corralled between the hours of 9 and 5. When you shift this to a distributed working environment, people from across the world can do great work during their specific hours in their time zone. When they’re done working, they can pass the baton to people working in US, Asia Pacific or European time zones. This is simple because of the use of collaborative tools and cloud based software. It also means that these companies effectively have a 24 hour working cycle instead of 8. Work that usually takes 3 days can theoretically be completed in 1.
The other great advantage in shifting to asynchronistic is rooted in decision making. When meetings and ideas are delivered across a distributed team, decisions tend to take a little longer. But they also tend to be better.
In an office environment, decisions are often made in a meeting with a group of people. In these environments, unconscious biases tend to creep in. The most senior, extraverted people will tend to get the most air time. Their opinions will carry the most weight and while these ideas can be good, there will always be those with great ideas who don’t make it into the mix. This means companies lose valuable ideas from the clever people they’ve hired. Moving away from this style of meeting gives more space for introverts to create thoughtful and in-depth ideas which could be really impactful. Though it takes more time, reaching a decision with a distributed team means that the decision itself is guided by rounded and comprehensive thought. As such, it should be a better decision.
What about level 5? This does not involve a direct interface between mind and technology. The definition of a level 5 company includes everything in levels 3 and 4 except that a level 5 company are doing better work with a distributed team than any in-person organisation is able to do.
The theory is that if everyone can reach a higher level of physical and mental wellbeing, they will hit a higher working level too. It means employees can enjoy their life, knowing the measure of their success is not based on the shirt they put on or how bad the traffic was on the M25, but on the work they produce.
So what?
Office working makes it much easier for people to merely exist. An employee who’s well dressed, punctual, starting early and clocking off late can usually get away with average work for some months. When someone’s contribution is measured by their output alone, regardless of what time they clock in or whether their workspace looks out over a city scape, rolling fields or the sea front, there’s really nowhere to hide. If there is a problem then it can be identified and support provided early, helping people achieve more. The happier, healthier, more focussed a workforce is, the more likely the quality of their work will elevate too. The crucial index should not be time served. It should be what you produce.