The Dual Nature of Knowledge Work Productivity

by John Julius Sviokla on April 5, 2012

Mind work is tricky...

When we think about knowledge work productivity, it is a very tricky subject.  The reason it is tricky is because at one extreme we can routinize knowledge work — as when someone is calling to fill out a survey, or answer a customer service call.  In a low value added knowledge work task, there is some variation, and the motivation and attitude of the employee is still a very big and important deal (See Dick Walton’s Book Up & Running for an excellent discussion of commitment versus compliance based controls while implementing technology in organizations), but in the main, you can structure the work just the way you analyze and structure work in a factory.  Frederick Taylor’s rules of scientific management with a dose of the worker involved, edge-based, data-driven approach of the Toyota Production System, can guide the design and management of the work.

Many organizations have over routinized knowledge work in a way that creates as many problems as it solves.  All of us have experienced the frustration of calling a call center to solve a problem to only have the poor employee say something akin to, “Sorry, I know we should be able to fix that but I don’t have the authority and the computer won’t let me do it.”  That is an over routinization of work.  This is present in many companies.  For example, insurance companies have often gone back and forth between treating claims like a production line in which each worker turns their own intellectual screw, to one in which the work is organized by teams of case workers who take each claim from start to finish.  Both have their advantages and disadvantages.

In this low end knowledge work there are many simple things to fix — especially around technology.  If software would rust, these would be more obvious.  In many customer service systems, for example, we have the equivalent of a very messy physical factory.  There are multiple customer numbers; systems don’t integrate; the response times are too long, the data are a mess — in short, if it were physical instead of digital it would look like a poorly managed factory of the 1950s.  These can all be analyzed for process and economic improvement.  They are not easy to do because most organizations have few true program and project managers, but these often valuable changes are easy to figure out for any experienced practitioner of process/technology improvements.

At the high end of knowledge work, I think we should turn to Doug Englebart, whose work has been aimed at helping highly skilled groups of people solve complex, interdependent tasks better and faster.  He often referred to “raising the collective IQ of the group”.  This is a very different animal than the tailorized call center work.  If we stay in insurance, this type of task would be to deal with a complex commercial risk such as insuring an ecological risk of the new fracking technology.  This type of complex, idiosyncratic, team-based work cannot be fully serialized, or automated.  Instead, one needs to look at the factors Englebart identified in his HLAM-T model.  In this approach he suggest that any complex work has a human being, with a language system, and artifact and a method — HLAM.  In addition, this person can be trained in the language system, the method and the artifact, which is where the T in HLAM-T comes from: training.

We see great examples of this model at investment banks in trading operations.  The trader has both a set of “quants” whose job it is to come up with new methods within the language system.  Some of these quants can also code C++, Java, and they know the bank’s systems and data feed from outside sources.  These are the bitsmiths I’ve written about before.  They create the artifacts which embody the method and use the language system of the knowledge workers (in this case the traders).  In fact, because the investment banks have made so much money on these traders (we’ll see how this plays out under Dodd-Frank, but that’s another story), the banks were willing to spend hundreds of thousands of dollars a year to pay these bitsmiths to help the trader earn millions which made the bank tens or hundreds of millions.  At the very high end, knowledge work productivity is very skewed, but only a few organizations actually spend money rationally to drive the differential productivity of the very top end of their talent pool.

I have lamented before that we are too focused on automating knowledge work and not enough on Englebart’s ideas.  I think that opportunity still confronts every firm.

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How to Make Decision Making More Adaptable with Layers

by John Julius Sviokla on December 3, 2010

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Co-authored with Chris Curran

Never before has such a mass of data existed. Needless to say, all this information complicates the decision-making process. Businesses need new strategies to answer the biggest question:

How do we effectively sift through the mountain of information to gain valuable insights.

Layers is a term we use for visual information systems that combine publicly available and company-owned tools to present relevant and contextual information-in a format that starts with the decision and works in reverse.

By Layers, we’re referring to distinctive “chunks” of data that are presented within the construct of a decision, rather than in the context of a tool. Layers are also about leveraging data, tools, and innovation on the Web instead of starting from scratch.

Layers of information exist at all levels-individual, company, market, industry, country, and international.

They are what help us visualize the different levels of data and how we can put them together in ways that support a particular insight. More powerful than a tool, layers comprise an “organizational solution”-a visual way to sort and sift a mass of information and arrive at an insight efficiently, effectively, and by putting all employees on the same page to create buy-in.

So why aren’t organizations making more progress in adopting layering options? Simply put, you can either embrace the flood of data or ignore it. Here are a few observations that may make it easier to embrace:

  1. When something new pops up in the Web, other sites swarm to analyze it. How can your firm harness this speed to market? The emergence of Twitter and the hundreds of tools to analyze Twitter data is just one example.
  2. Recently, Nielsen conducted a study that looked at successful new product launches across 30 large consumer packaged goods companies and found a correlation between successful, innovative product introductions and how differing levels of executive involvement affect launches. When senior leadership is involved at your firm, does it help or hinder the adoption of new ideas?
  3. When we visualize our organization, we often think of a map. What if the data that aided our decision-making was available as layers of information on a map, similar to how Google Maps layer satellite images with public transit, bike routes, and points of interest?

So, how does “layering” help us?

  1. By starting with tools and data that already exist in the market – data collection, organization and decision making is faster
  2. Focusing on a layer at a time creates is iterative and less complex to implement
  3. A visual representation of the decision-making-context makes solutions more recognizable and required less “context switching” for those using it

Faster + Iterative + Recognizable = Faster Decision Making

We spend too much time analyzing the mountains of data we have collected, assuming that it contains answers to our business questions. Why not start with the decisions we are trying to make and working our way backward with the help of the data? Does your business have a decision-making model?

If we start with decisions and then add the context for those decisions, we can support the business in a much more direct way. What area of your organization could benefit from a “layered” decision-making process?

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Taming the Torrent of Data… For competitive advantage…

October 26, 2010

I recently had the good fortune of leading our Diamond Exchange, where we discussed how companies could create competitive advantage through better use of data.  For this event we created a short (3-4 min) video to help business executives get a feel for just how quickly the torrent of information is increasing.  If you are [...]

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Are You a Vendor or a Business Partner?

October 14, 2010
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One of my colleagues just asked me: What’s the difference between a vendor relationship and a true business partnership?  This is a vital question when any individual or firm is innovating, because when anyone is doing something truly new, it is impossible to pre-specify everything needed from a vendor — because you are busy creating [...]

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Is Your Industry in Danger of Being Disrupted?

September 27, 2010

There is much talk about innovation — and there are many approaches to creating new things, from the famous “open innovation” ideas of Henry Chesbrough to the ever popular notions of Clay Christensen about “disruptive innovation“.  Whether it was the popisicle, invented by accident by Frank Epperson when he left his stirring stick in a [...]

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3rd Wave Capitalism: Radical business innovation begins anew

September 20, 2010

Last week, on Thursday night September 16, 2010, I had the good fortune of speaking to the Society for Information Management’s (SIM’s) Boston chapter about the implications of social media.  You can get the slides here.
The core of the talk was the idea that we are entering a third wave of capitalism, and further that [...]

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Creative Work Unlocked by Crowdfunding: A disruptive innovation

September 11, 2010

The other day I received a downright inspirational email from my friends at IndieGoGo, a site dedicated to the collaborative funding of ideas.  (Here’s a short video of my friend Slava Rubin, co-founder of the company.)  The missive pointed to a video featuring 9 year old Jackie Evancho a rising America’s Got Talent star who [...]

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The Web is Dead? or Just in the Modularity Cycle?

September 2, 2010

Wired magazine recently announced on its cover that the Web is Dead.  I confess I really like the magazine  despite some of the hyperbolic rants that Chris Anderson, Wired’s editor creates like his book “Free” — which is completely indefensible from an intellectual or factual standpoint.  In this case, I think the magazine is “right” [...]

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Radical Continuity: What any retailer can learn from Nordstrom

September 1, 2010

I’m coming to believe every good is a convenience good.  A recent New York Times article reported that Nordstrom has integrated their in-store inventory with their online supply, meaning that anyone can get access to the entire inventory from any “location” — a physical store or online.  They also report that Nordstrom’s management believes that [...]

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Google v. Facebook: The battle for the world’s attention

August 19, 2010

If you are the type of person who likes to think about where things might be going I’d suggest you start watching the evolving competitive battle between Facebook and Google.  Both firms want to know who you are and whom you connect to, e.g. your “social graph”.   To date, Google knows a ton about what [...]

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