Fti Future of Work 24 July

8/7/2019 Fti Future of Work 24 July

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the future of work

forward thinking inc.

A REPORT COMMISSIONED BY THE


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how and where will we

work in 2030?

This study was commissioned by the DTI. It was supported by sponsorship from

ABN AMRO, forward thinkin inc. and Herman Miller.


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the future of work scenarios

In January 2006 the DTI published the findings of its Foresight programme on Intelligent Infrastructure

Systems. The project examined the challenges and opportunities for the UK in bringing intelligence

to the physical networks that deliver services such as transport, telecommunications, water and energy.The output was presented in four future scenarios of UK society.

The Workplace Intelligence Unit has extended the IIS Foresight project, taking the scenarios and

exploring how and where we might work within them. What are the implications for business today, and

how might we best prepare for these potential eventualities?

This document outlines our 3 Future of Work Scenarios; Perpetual Motion, Urban Colonies and Good

Intentions. The fourth Foresight scenario, entitled Tribal Trading, presents the collapse of the UKs

economic structure in its current form and thus was deemed too extreme to yield practical conclusions.

The scenarios are focussed on the year 2030. They are illustrated through the perspective of a

fictional company called Cogito, a market-leading corporation operating in a knowledge intensive service

industry. Whilst intended as strategic thinking tools, rather than predictions of a certain future, they pose

interesting challenges for how businesses operate today and plan for tomorrow.

By analysing consistencies across the 3 scenarios, 6 key lessons for future proofing business

strategy have emerged.


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preparing for the futureleveraging the psychological drivers

of productivity

There are 10 psycholoical factors which drive

individual, and therefore workforce, productivity.

Traditionally companies have focussed larely on

reconition and its associated rewards to

motivate employees. However, today and evenmore so in the future, companies will need to

understand and influence the more subtle drivers

of productivity as well. As the scenarios illustrate,

financial reward is not necessarily the most

successful way to motivate a workforce.

a clear and inspiring vision with which people feel aligned

a common set of values and behaviours consistently displayed

a positive attitude and trust in the leadership team to deliver

effective teamwork and stimulation through interaction

a focus on developing self belief by playing to strengths rather

than only addressing weaknesses

respect for the unique skills and contribution of everyone

individuals given the responsibility to make decisions

recognition of the value of originality and a culture of acceptance

of good new ideas

clear and specific goals and visible celebration of achievement

being recognised and valued for good work and receiving a fair

and transparent reward for achievement of goals

meaning

values

optimism

collaboration

confidence

individualism

autonomy

originality

goals

recognition

the 10 psychological drivers of workforce productivity


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meaning matters

Meanin is one of the key psycholoical drivers

of productivity. To be successful companies must

create a clear and inspirin vision to which their

workforce is alined. Employees will respond to

varyin visions, dependin upon the company,industry and social landscape, but a successful

oranisation will always communicate its

meanin with clarity and impact. In all 3

scenarios Coitos structure, culture, brand and

workplace are desined in line with the companys

vision, even thouh the underlyin meanin

behind each model is very different.

a strong sustainability strategy is

not a luxury

In all scenarios companies are forced to act on

sustainability be it throuh necessaryinvestment in technoloical solutions,

overnment reulation, or havin to meet the

moral requirements of clients and employees.

However, alterin the environmental footprint of a

company is a lon-term task for eample, it may

take a decade to radically redesin a property

portfolio. The businesses who lead the way at

the start of the 21st century will be best prepared

to meet any of these demands.

work is intrinsically social

The intrinsically social nature of work should not

be underestimated. Despite advances in remote

communications and automation of particular

processes, personal interaction will remain a key

element of why and how we work. Even underthe Perpetual Motion scenario workers enjoy the

bull-rin enery of the workplace and the implicit

bond between members of the intellectual elite.

The implications for future-proofin are clear.

Communication skills will become ever more

important. In the future, an advanced

communications test will become a prerequisite

for job applicants (in the way aptitude tests are

often used today). Companies should already be

focussin on developin the optimal

communications culture for their competitive

position.

putting a value on knowledge work

Time spent is no loner an acceptable measure

of productivity. Knowlede workers should be

evaluated on output rather than input, and that

means businesses must evolve more sophisticated

productivity measurin tools for the future.While many firms have eradicated face-time

over the past few years, very few roles (pure sales

functions ecepted) have an eplicit

output-orientated productivity measurement.

Businesses will need to desin productivity

measurement tools moulded around the specific

results they require. While the methodoloies

may not yet be fully developed, companies should

bein to shift their internal culture to a state

where such tools will be accepted positively when

they are introduced.

the advent of the strategic workplace

The 20th century mindset of the workplace as an

operational cost to be minimised will finally be

eradicated. In the future all firms will be forced to

utilise their property assets strateically to

maimise competitiveness. As competition to

attract the best employees becomes fiercer

the workplace will become a key differentiator.

Every firm will use it to communicate meanin to

employees, help mould internal culture, and thus

maimise productivity. The workplace will also be

desined as a crucial tool in the eternal brand

communication s mi. Aain, mouldin corporate

culture and influencin eternal perceptions is a

lon-term undertakin. If carried out quickly and

reactively such strateies can lose credibility.

The answer is to lead the field now.


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perpetual motionsocial context

Rihtly or wronly, society feels it has been relieved of the

burden of environmental responsibility. Due to lare-scale

private and public investment, environmental and enery

limitations have been solved, or at least postponed, by rapid

advancements in science and technoloy. As a result, stron

economic rowth and lobalisation have continued apace,

stimulatin rampant consumerism. Technoloy is

all-pervasive, allowin instant communication and

transactions, but also facilitatin constant monitorin of our

behaviour by public and private institutions a small price to

pay, most believe, for an advanced society with countless

opportunities. The darker side to this always-on economy is

the rowin wealth distribution ap. While knowlede workers

commute in and out of city hubs to complete their hihly paid

roles, a secondary class inhabit deprived urban areas and fulfil

the remainin manual jobs that have not been automated.

the business

Lare international corporations, such as Coito, dominate the

competitive landscape. With hih levels of outsourcin, Coito

is served by a web of small service providers, many of which

operate as virtual cooperatives without any fied commercial

property. The key to Coitos success has been fihtin to

attract the most productive knowlede workers on the

market, and securin first access to leadin technoloy in order

to monitor and stimulate them. Bioloically interfaced

technoloy now monitors individuals productivity levels

throuhout the day, adjustin their environment accordinly and

instructin them when they need to eat, drink or take a st int in

the virtual sleep room to recover full productivity. Workers final

output is also measured usin tihtly defined and accurate

metrics, and is the f inal indicator of personal performance.

The CEO cannot comprehend how the firm was successfully

manaed in the 2000s without the means to accurately

monitor and artifi cially promote workers productiv ity. Today

its vital to drivin rowth, throuh creatin fierce competition

amonst workers and a ruthless, yet transparent, meritocracy.

A common patchwork quilt oranisational structure is in place

at Coito - workers spend 90% of their time workin alone,

intensely, on one task, before collaboratin briefly with the rest

of their team to share ideas (often via remote technoloy to

save time, despite team members bein present in the same

buildin). Facilitated by advanced communication technoloy

and oranisation tools, manaers oversee thiscollaborative

element, manain up to a dozen teams at a time.

Please note that most of the photographs illustrated in this

brochure are library images,

used for illustrative purposes

only. They do not form part of

the fti image library and

cannot be used without

payment to the image owner.


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ExTRACT FROM COgITO BOARD MEETINg KEY TARgETS (2030)

QUARTERLY PERFORMANCE REVIEW

LOCATION OF WORK FOR AN AVERAgE CITY-BASED

UK KNOWLEDgE WORKER (2030)

workplace

home

public space

clients workplace

travelling


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perpetual motion


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the workplace

When Coito leased its current headquarters it wanted a

buildin with impact that communicated the power and status

of its brand. Walkin throuh the doors employees and clients

are in no doubt that they are operatin amonst an intellectualelite, a well-oiled lobal machine. Similarly to the residential

ated communities where they live in the countryside,

workers appreciate the security of the Coito comple.

When manual workers rioted throuh London in protest at the

abolition of the minimum wae, Coito employees were advised

to remain in the buildin and did not even notice the

disturbance outside.

The workplace is essentially divided into 2 areas; work and

leisure. The work environment is desined for functionality, to

maimise productive behaviour. Employees have cellular

offices, each with liht, air quality and noise levels reulated for

their optimal productive environment. Self-learnin, bioloically

interfaced technoloy firstly responds to rectify dips in worker

productivity, and then learns to predict and respond to prevent

them. Workstations are desined for specialist activity, but all

systems must be fleible iven the hih level of staff turnover.

Despite the cellular floor plan there is a sense of intense enery,

individual workspaces are not luuriously spacious and are

confiured in a way that workers are constantly in one anothers

view. A bull rin atmosphere prevails, individual employee

and corporate results (both positive and neative) are clearly

displayed across the workspace. Workers are conscious of

bein both part of a team and in competition with everyone

around them.

Unlike the workspace, leisure facilities are luurious.

In choosin to work for Coito employees epect a certain

lifestyle, which the workplace helps create. A top-class

restaurant, state-of-the-art ym and luury spa are all located

on site. Most employees rarely use them, but their presence

matters. The most popular facilities are those which offer

intense stimulation and competition, such as virtual amin,

adrenalin sports and squash. It seems that even after a

14 hour day Coito employees do not want to, or cannot,

switch off - a fact of which they are proud.


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social context

At the start of the 21st century rowin evidence of the

environmental impact of our modern lifestyle prompted a

reaction by both overnment and society. The eneral public

reconised the need for action and accepted the overnments

new taation system under which consumption, rather than

salary or spendin, is taed. Nationwide road pricin was also

introduced in 2015.

The urban renaissance which was cautiously predicted in the

2000s has arrived. Economic activity is centred in cities, and

hih-density urban livin has become the norm. Mied-use,

mied-income developments prevail, each with a stron sense

of community. Every urban hub has its own distinct culture,

with cities essentially competin as life-style brands to attract

the best talent and businesses. While reen transport and

communication technoloy is advanced, it does not operate on

a national infrastructure.

the business

From 2010 onwards the public became increasinly sceptical

of bi business raduate recruits wanted to join niche firms

and consumers boycotted irresponsible products. Havin

had a stron corporate responsibility portfolio for a decade,

Coito did not suffer has badly as some competitors. However,

chane was required to maintain the competitive advantae.

Coito now has a structure and workplace moulded around the

moral, social and operational preferences of its people.

To ain the benefits of a smaller firm Coito is divided into 10

sub brands. Located in different cities each operates as an

independent entity. This allows products and staff to be

sourced locally (minimisin costly lon-distance travel) and

provides the small-firm community feel that talented

knowlede workers are seekin. The challene for each of

these sub-units is to differentiate themselves to employees

and clients throuh their vision, values and culture. The board

members joke about the old days when half a pae in the

annual report devoted to values was sufficient to satisfy

recruits and investors.

Coito has a flat oranisational structure, with the workforce

oranised into fleible project teams. An individual may typically

be part of 4 teams simultaneously, takin on a different role in

each, both in terms of responsibility and function - workers are

part of smaller communities within the community.

urban colonies


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Coito believe that workers productivity is fundamentally linked

to a positive state of mind happy workers are productive

workers. (Coito pioneered the Workforce Happiness Inde

as a tool for both measurin productivity and attractin recruits,and it is now commonplace in most businesses). Employees

need variety and stimulation to be creative and will work

hardest when they feel commitment to a common oal.

Coito reularly measures social capital levels amonst its

workforce to monitor the strenth of the community.

At Coito performance reviews and recruitment processes are

subjective. Emotional and intuitive competencies are hihly

valued because they contribute to buildin social capital.

Workers are assessed on the quality of their output as well as

bein rewarded for commitment and operatin by the company

values. Coito holds an annual survey on the preferred bonus

and incentive schemes that workers would value financial

bonuses have not featured hihly for years, but additional

holiday entitlement, improved health-care options, team social

events and personal skills trainin are constantly requested.

the workers

Coito employees have fairly irreular workin patterns as no

one monitors when and where they work, only the quality of the

output. At peak times a week can eceed 60 hours but there

are rarely complaints employees take pride in their work and

would rather do a thorouh job than let their team down.

Plus, net week they miht work 30 hours and no one will mind.

Increasinly people believe that while purchased oods can beeasily imitated, true personal oriinality comes from

developin a unique set of skills and traits. Coito succeeds

larely because it offers employees an opportunity to further

themselves. The company provides a variety of eperiences

with a diverse roup of people, both within and beyond the

realm of work personal coachin is provided and sabbaticals

are encouraed. Practically, this structure means employees

are responsible for their own time and productivity. Assisted by

oranisational technoloical tools they must become eperts

in personal manaement or the quality of their output will

visibly suffer.

Internal meetins are usually carried out face-to-face, it is

enerally held that there is no substitute for personal

interaction. Most commercial relationships are formed with

businesses within the same city so it is easy to walk, cycle or

use public transport to visit them.

urban colonies


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workplace

home

public space

clients workplace

travelling




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urban colonies


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the workplace

Coito spent 5 years desinin and buildin their own

offices across 10 locations. Each had to be desined around

the needs and personality of each sub-unit, as well as that of

the local community. The board realised that any buildininconruous with the surroundin neihbourhood would

damae their reputation.

The Coito workplace is a selection of areas, from arden to

conventional meetin room, with no clear delineation between

those for work and those for leisure. The barrier between

inside and outside is also blurred workers often hold

meetins in the arden beside school children havin lunch and

local community roups reularly book spare meetin rooms.

The workspaces are desined to inspire both employees and

clients, to facilitate communication and creativity, and foster a

sense of community. Needless to say the sustainability

credentials are best-in-class. Employees view the workplace

as a learnin resource centre, somewhere they come to

echane and form ideas. Coito reconises that learnin very

often stems from casual interaction and so instructed their

architect to map human traffic flows and desin to facilitate

such interactions.

Employees can work when and where they want to, so

theoretically could remain at home every day and only

participate in meetins remotely. However, Coito pride

themselves on how reularly the workplace is used. It is aninspirin, creative place to be, somewhere workers can have

stimulatin interaction with like-minded people.


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social context

Followin decades of delay overnments were finally forced into

action to restrict carbon emissions. A carbon credit scheme

was imposed, providin each individual with a limited

entitlement to use on travel. Now peoples lifestyle choices are

often determined by their access to credits. The taation

system has also been altered to be based on consumption

rather than salary or spendin. Companies must account for all

enery and resource consumption by their employees on site,

includin commutin, and a proportion of their consumption

when workin from home. Citizens are enerally resentful of the

overnments stron handed approach and the restrictions it

imposes on their preferences, but slowly people are learnin to

adapt their behaviour accordinly.

the business

Resource taation has proved a hue challene for lare

oranisations such as Coito. Luckily a comprehensive

sustainability stratey had been put in place in 2005 so Coitowas in a better position than many when restrictions were applied.

In fact they actually benefited from some competitors oin

bankrupt when their hue carbon liabilities were disclosed.

Today a stron corporate responsibility profile and stratey is

not just ood business but essential to remainin profitable.

In most companies the Operations Director is as important as

the CFO in directin the company.

Traditionally Coito had been structured in 3 lare reional

hubs, with staff commutin up to 90 minutes each day. Travel

restrictions quickly made this unfeasible and the oranisation

was dramatically restructured. 30 offices now operate across

the UK with no employee livin more than 10 miles from their

primary site. Coitos challene is to maintain productivity

across these dispersed sites, but investin in leadin ede

communications technoloy has allowed virtual teams to

operate efficiently.

Coito believe workers are most productive when they are

motivated by the vision of their company and when iven the

freedom to use their individual skills. However, the economic

reality (now more than ever) is that employees are a potential

financial liability if not manaed correctly the challene is to

inspire and liberate workers while restrictin their resource use.

good intentions


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Coito uses its scale to take on the individual workers burdens

and make them a common oal for the company. Productivity

is very much the individuals responsibility but resource use is

a collective one. Coito knows that it requires twice as mucheffort and cost to promote efficient resource use throuh

coercion rather than personal obliation to the community.

Workers pool carbon credits to fund company transport

schemes, adapt their workin locations in the office to maimise

efficiency, and constantly seek new process re-enineerin

improvements. In a climate of restricted personal preferences,

reduced face-to-face interaction, and constant penny

pinchin, Coito has succeeded by creatin a enuine and

passionate commitment to reducin its environmental impact.

Today, the unveilin of a new operational improvementproramme is reeted with the scale of enthusiasm which only

used to accompany product launches in the past.

the workers

In every pub and caf people are moanin about the price of

road travel, frettin about not havin enouh carbon credits

to et to work net week and reminiscin about the forein

holidays they used to enjoy. Coito employees feel somewhat

relieved about their situation. Workin at Coito has obvious

perks (such as the company Transit system, access to

personal resource councillors, bein able to socialise in an

office rather than home-work) but the benefits are reater

than that. Coito feels like a community of optimists in a

world of pessimism, a roup of like-minded people who are

ahead of the tide rather than tryin to resist it. True, Coito

employees do work loner than their counterparts elsewhere,

but thats because they are committed to the firm rather thanresentful of it. While other workforces complain about intrusive

technoloy monitorin their resource consumption in the

workplace and at home, Coito employees reconise, and

accept, the need for such tools.

good intentions


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workplace

home

public space

clients workplace

travelling



LOCATION OF WORK FOR AN AVERAgE COgITO


COMPETITOR COMPARISON


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good intentions


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the workplaceIn 2015 Coito had 3 lare reional offices comin to the end of

lon-term leases and after decentralisin was left with massive

ecess capacity on these sites. With home workin becomin

more popular, indeed mandatory in many companies,occupancy of commercial property in the city was plummetin

and commercial rents fell to their lowest for 20 years. Rather

than terminatin its leases, as many companies chose to,

Coito neotiated heavily reduced rents and went about

redesinin its workplaces.

Coito set out to make the workplace a sanctuary from the

burdens of the outside world; the aim to inspire workers,

encourae interaction and support collaboration.

The workplace is clearly desined and branded in line withthe vision and values of the company.

Coitos 3 lare offices have now been epanded into

company campuses. Some key employees, and those who

have relocated, live on site. Others book the free campus

hotel facilities when they work too late to use the Coito

Transit or are on a rare visit from another office. There are cost

benefits to these mied-use developments but it also helps

build a stron corporate culture and sense of community.

Workers ID cards automatically reister their presence on site,

allowin intellient systems to calculate the economical level of

resources required to support the business throuhout the day

and adjust lihtin, ventilation and temperature to an

optimal level. If use of a particular resource is runnin too

hih the workforce is informed the incremental effect of

each worker alterin their behaviour slihtly is usually enouh

to brin levels down to the correct point aain without anyharsher reaction. In contrast, a key competitor, Quondam, has

refused to invest in such technoloy and has suffered a series

of black-outs and electricity cuts without prior warnin. Some

other companies have been forced to resort to a 3 day week to

reduce consumption.

The work areas are hih density to minimise resource use.

As well as bein low cost this layout stimulates collaboration

and creates enery. Leisure facilities are slihtly more spacious

but are used fleibly and only at particular times. For eample,Coito workplaces have hih quality restaurants but food is only

served at two sittins and workers are asked to pre-book.

Usin innovative fleible desin, this space often doubles as

a cinema or sports facility at niht on the mied-use campus

sites. It is testament to the success of Coitos vision that

employees reularly stay on-site after work to use the facilities

with friends who just happen to be colleaues as well.


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leveraging the psychological drivers of productivity

understand and inuence the full range of psychological drivers that impact workforce productivity

meaning matterscreate a clear and inspirin vision to which your workforce is alined

a strong sustainability strategy is not a luxurybusinesses who lead the way today will be best equipped to meet the moral epectations and reulatory

requirements of the future

putting a value on knowledge work

measure and evaluate the output, rather than input, of your knowlede workers

the advent of the strategic workplaceutilise the workplace as a strateic asset in attractin talent, creatin a corporate culture and mouldin

eternal perceptions

work is intrinsically socialdevelop a communications culture which contributes to the strateic objectives of the oranisation

preparing for the future


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perpetual motion

workforce productivity driven primarily by

urban colonies good intentions

goals and rewards collaboration and

personal fulfilment

society and the

environment

1 - meaning

2 - values

3 - optimism

4 - collaboration

5 - confidence

6 - individualism

7 - autonomy

8 - originality

9 - goals

10 - recognition

productivity drivers


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led by PerformanceManagement andTechnology teams

perpetualmotion balancing the trade-off

between productivity andstress levels

succession planning forburn-out and churn

securing access to leadingtechnology

differentiating thecorporate vision & values

creating a coherent culturethroughout decentralised,

independent hubs

inspiring workforcewhile closely monitoringbehaviour

continual improvementof operations and

resource use

led by People andVision teams

led by Operationsteams

meaning goals recognition

meaning values autonomy collaboration

meaning

values optimism originality

additional holiday team social events free training (for any

personal skill)

additions on well-beingpackage

financial bonuses status symbols e.g. car,

foreign holiday

access to on site hotel additional carbon credits financial reward

urbancolonies

goodintentions

company strategy competitive challenges workforceproductivity drivers

employee bonus /incentive schemes

scenario summary


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contribution toprofitability

contribution tonew ideas

contribution tosocial capital

reduction ofresource use

contribution toprofitability

designed to affectemployee behaviour

designed aroundemployee behaviour

designed around

environmental

constraints

30 miles / 20 minutes automated car

10 miles / 35 minutes public transport or

company transit

3 miles / 25 minutes walk or cycle

optimal environmentfor productivity

representation of companystatus, values and vision

element of the lifestylepackage

optimal environment foremployee happiness facilitate communication,

creativity and the growth of

social capital

a learning resource centre maximise resource efficiency representation of vision

and values

optimal environment forresource use (via economies

of scale)

inspire and motivate workers representation of vision

and values

build community

employee performance

measurement

average commuting

time and mode

approach to

workplace design

role of the workplace


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forward thinkin inc. would like to

thank the followin people for their contribution

Alister Wilson, Waverley Consultants

Andrew Curry, The Henley Centre

Bill Sharpe, The Appliance Studio

glenn Lyons, Centre for Transport & Society

Will Stewart, Innos

Michael Moynah, The Tomorrow Project

Phil goodwin, Centre for Transport & Society

Victor Keean, The guardian

Bruce Lloyd, London South Bank University

Martin Cook, BDP

Roer Metellerkamp, IBM

Steve Huhes, Herman Miller

for further information contact

Ann Brewin on:

020 8939 2330

[email protected]

www.forwardthinkininc.com

Fti Future of Work 24 July

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