Running a post conventional company

Organisations are having to adapt to rapidly changing times, Holacracy is an attempt to move on beyond older management structures

One of the most derided organisational theories of recent times has been Holacracy, a system of running organisations without managers.

The idea behind Holacracy is job descriptions are outdated and unnecessarily limiting. Modern workplaces and roles are far more fluid than the traditional, almost militaristic, structure of the hierarchical organisation chart.

Creator of Holacracy, Brian Robertson, describes in a Medium post how the anti-management theory came around during the early days of running a tech startup in the early 2000s.

The impact of our deep dive into agile software development went far beyond just “how we built software”?—?it infused our culture and gave us a foundation of principles and practices for the management of the company as well. Over the next several years, we’d do our best to express this paradigm in everything we did. Agile principles became a guidepost and a measurement for all of our future experimentation, as did the highly overlapping principles of the lean movement.

Given the tech startup roots of the idea, it’s not surprising Holacracy applies many of the principles that make up the Agile and Lean movements – particularly the hostility to micro-management.

Moving on from Holacracy

It’s notable that Robertson posted his background on Holacracy on Medium as the service was one of the more prominent adopters of the organisational theory, however the publishing platform has now dumped the philosophy.

In his post about why he and his business partner have dumped Holacracy, Medium founder Ev Williams said “the system had begun to exert a small but persistent tax on both our effectiveness” however he still thought the concept has merit and traditional management structures are too slow to deal with the demands of modern business.

The management model that most companies employ was developed over a century ago. Information flows too quickly?—?and skills are too diverse?—?for it to remain effective in the future.

Williams’ point is right, the 19th Century military structure of businesses was fine at a time when product cycles could be measured in years if not decades. In today’s world where the life of companies, let alone products, has been drastically compressed a much more flexible and fast moving way of organising businesses is needed.

Dynamic times

Along with needing far more flexible and fast moving structures, organisations also have the tools to create them. Again, the days of memos moving through layers of management via manila envelopes are long gone and now we have collaborative, real time communications methods.

One of the great changes in business over the next decade is going to be the rethinking of how organisations are managed, Holacracy may turn out not to be the answer but it is an early attempt of making sense of a very changed business world.

Management are the one group that really hasn’t been disrupted over the past thirty years. As strange as it might sound, Holacracy is a taste of the radical changes the executive suite are about to experience.

What happens when machines start to learn

Deep reinforcement learning promises to change the way robots are taught to do tasks

Computer programming is one of the jobs of the future. Right?

Maybe not, as Japanese industrial robot maker Fanuc demonstrates with their latest robot that learns on the job.

The MIT Technology Review describes how the robot analyses a task and fine tunes its own operations to do the task properly.

Fanuc’s robot uses a technique known as deep reinforcement learning to train itself, over time, how to learn a new task. It tries picking up objects while capturing video footage of the process. Each time it succeeds or fails, it remembers how the object looked, knowledge that is used to refine a deep learning model, or a large neural network, that controls its action.

While machines running on deep reinforcement learning won’t completely make programmers totally redundant, it shows basic operations even in those fields are going to be increasingly automated. Just knowing a programming language is not necessarily a passport to future prosperity.

Another aspect flagged in the MIT article is how robots can learn in parallel, so groups can work together to understand and optimise tasks.

While Fanuc and the MIT article are discussing small groups of similar computers working together it’s not hard to see this working on a global scale. What happens when your home vacuum cleaner starts talking to a US Air Force autonomous drone remains to be seen.

How artificial intelligence can outguess people

Google have developed a tool that determines a location from a photograph

It’s hard to spot locations from a photograph and it’s something people can’t do this very well. MIT’s Technology Review reports Google’s researchers have developed a tool that figures out the location of an image with twice the accuracy of humans.

To illustrate their point Google have their Geoguesser game that allows people to pit their knowledge against the computer.

While this could be seen as a gimmick, it again shows how computing power is being used in areas that were seen as being immune from technology not so long ago and how artificial intelligence will be applied in various fields.

For the moment, applying artificial intelligence to seemingly trivial fields like games gives researchers to opportunity to test it before being applied to areas like cancer treatment.

As artificial intelligence advances, a whole range of existing fields are going to be disrupted – particularly in ‘knowledge industry’ fields like law, consulting and management – while new industries and occupations will arise out of these technologies.

Seppuku for the health care sector?

The assisted suicide Seppukuma robot raises some interesting ethical questions and challenges how secure employment is in the health sector

It turns out Seppukuma is a parody and I fell for it. My apologies.

Continuing the theme of Japanese robotics meet SeppuKuma, the friendly robot bear that might be the last thing you ever see.

When we look at the future of work, health care comes up as one of the fields that is least vulnerable to automation. Seppukuma shows we shouldn’t take that for granted.

Seppukuma is also an interesting example of how technology can subvert laws. Banning assisted suicide means little when a robot can be programmed to it.

As cheap and accessible robotics become commonplace so too do devices like suicide assisting androids which raise a whole range of legal and ethical issues.

Even though Seppukuma is a joke, the technology is feasible. We need to consider the issues and risk these devices will raise.

Making seniors mobile

Robotics and automation promise to improve mobility and extend our working lives

One of the understated benefits of automation and robotics is it allows the elderly and disabled more mobility.

Facing an aging population, the Japanese are unsurpringly ahead of the rest of the world in understanding this and, as the Wall Street Journal reports, researchers are investigating how driverless cars can help the elderly get around.

While autonomous vehicles of all sizes promise greater mobility to many people currently restricted in their access, robotics also promises to extend our working lives just as mechanisation has over the past two hundred years.

Zappos and the new management structure

Zappos’ experiment with a new way of management continues to show slow progress reports the New York Times.

Zappos’ experiment with a new way of management continues to show slow progress reports the New York Times.

While Halocracy’s introduction is proving problematic at Zappos, Tony Hsieh’s quest to reinvent management remains fascinating. In an October 2015 interview on This Week In Startups with Michael Arrington the Zappos CEO explained how the system works.

“The ultimate goal is for employees to find what they’re passionate about, what they’re good at and what’s going to move the company forward,” Hsieh explained.

Given such a change in management philosophy, it isn’t surprising a lot of staff and supervisors are struggling. Hsieh though should be credited with this experiment to move away from Twentieth Century management practices and we are some way off finding out whether it’s successful or not.

Where the jobs will go

An Australian state government survey outlines the impact of automation on employment

That automation is having a profound impact on existing jobs is beginning to be appreciated by governments. A study by the New South Wales government’s Parliamentary research service examines what the effects will be on the Australian state’s economy.

Like equivalent overseas studies, the report finds over half the state’s jobs – a total of 1.5 million positions – could be at risk from computerisation.

An interesting aspect of this is the bulk of the impacts being felt in the mining, construction and logistics industries. While there’s no doubt those sectors will be hard hit, particularly for lower skilled workers, the assumption is higher level positions in management and supervisory roles won’t be as greatly affected.

Examples of this include ‘professionals’ only being at a 4.6% risk of being displaced and ‘General Managers’ at 5.0%. This compares to labourers at 96.1% and 95.7% of ‘filing and registry clerks’ losing their jobs.

While there’s no doubt the lesser skilled roles are at immediate risk, and have been for decades, the rise of artificial intelligence and business automation are increasingly going to put management roles at risk.

Quibbles aside, the report is a good read on the impacts of automation and computerisation on what has been one of the western world’s more successful economies.

The hollowing out process of Australia’s middle classes it describes show that phenomenon is not just confined to the United States and this probably creates the greatest challenge to politicians as populists seek to blame foreigners and minorities for much of the population’s declining fortunes.

Almost every government in the world is facing these issues and the efforts of public servants and economists to accurately describe what’s happening has to be applauded and encouraged.

For voters and workers, reading these reports to understand the forces changing their industries and communities is essential to making informed choices at the ballot box and the workplace.

Working in the gig economy

The motivations of demand economy contractors are varied and not without suspicion towards the services that employ them.

Just what do people think about the on-demand, or gig, economy? A survey by public relations company Burston-Marsteller looked at those who use and provide services for companies like Uber, AirBnB and Instagram.

Unsurprisingly the majority of users are have positive experiences with on-demand services which allows them to access product they couldn’t afford otherwise.

More important are the views of the contractors, and those who are doing these jobs for the flexibility are matched by those who’d rather have full time employment but can’t find a role.

Strikingly, the longer a contractor has worked for one of these services the more likely they are to find the company’s practices exploitative and more than half believe the platforms are gaming the regulations.

Overall, it shows participants in the ‘sharing economy’ have no illusions about the caring aspects of the services that employ them, unlike many of those touting the benefits from the sidelines.

Beating the robot takeover

The future of work may lie in the fact humans aren’t particularly reliable

Which jobs can’t be done by robots asks a blog post on the World Economic Forum website.

Among the occupations discussed in the post that might be less susceptible to automation include occupational therapists, surgeons, choreographers and pre-school teachers. None of those fields are exactly large fields or accessible to the average worker.

More concerning, the report the blog post is based upon was written in 2013. Advances in automation and artificial intelligence mean the effects of technological change are almost certainly being understated.

Regardless of how automation proof individual occupations are a simple challenge for humans competing against machines is the biggest problem employers report is finding reliable and punctual workers.

Maybe we’re all putting ourselves out of jobs.

Learning from the workforce of the past

A Deloitte study of past workforce changes gives us clues, but not answers on how the future of work will look

One of the constant questions posed to anyone reporting on the technologies changing the workforce is “where are the jobs coming from?”

A paper by Deloitte UK economists Ian Stewart, Debapratim De and Alex Cole titled Technology and people: The great job-creating machine looks at how technological change has affected the British workforce over the past 170 years.

While the study itself seems somewhat hard to get hold of, The Guardian earlier this week reported on what the economists found when they examined employment patterns through the rapidly changing economy of the last 150 years.

One clear shift the collapse in manual jobs, particularly farm labourers whose numbers fell from a peak of 950,000 in 1881 – 7% of the workforce – to less than 50,000 or 0.02% in 2012.

UK-agriculture-labour-employment

The decline in the employment of farm labourers shouldn’t be surprising – in 1871 the proportion of the British workforce employed in agriculture was 15% while today it is less than 1%. A graph from the UK Census office illustrates that shift.

UK-employment-infographic

It’s notable comparing the UK to the US in this respect; at the beginning of the Twentieth Century nearly half the US workforce was still working in agriculture while the Britain had been a predominantly service economy for nearly fifty years.

Even today nearly 3% of American workers are employed on farms, a number not seen in Britain since the mid 1930s.

In both countries, the late Twentieth Century saw a shift to a service economy, something illustrated in the Deloitte survey by the rise of the British barman where the proportion of workers in the liquor industry tripled from 0.2% of the workforce between 1961 and today.

UK-barstaff-workforce-proportion

That British bar employment tripled in the post World War II years probably illustrates best the rise of the consumerist culture during the late 20th Century.

What should be flagged is those transitions away from agriculture to consumerism weren’t painless, much of Britain’s economy was racked by recessions through the Twentieth Century and many of the nation’s regions were devastated by the shift away from manufacturing in the 1970s and 80s.

In the US, the transition away from an agricultural economy in the 1920s was particularly painful, Steinbeck’s book the Grapes of Wrath tells of the human costs to families displaced from their mid-west farms during that time.

That technological and economic factors have driven massive changes over the centuries isn’t new, but the fact the vast majority of today’s workforce are in jobs which couldn’t have been imagined a hundred years ago should encourage us about the prospects for the future workforce.

However, assuming the future will look like today and that employment will be largely in consumer service industries may be as mistaken of the beliefs among 1960s policy makers that manufacturing would be the future.

Even more pressing for today’s policy makers and leaders is to prepare for the pain of transition. If we are seeing a workforce shifting to new business models then there will be high community and personal costs. We need to be preparing for the pain of the shift as much as we anticipate the benefits.

Business and the workforce in an app driven world

As the workforce shifts to being mobile, so too must businesses

One of the things we know about the future is the workplace will be very different. Just as the Personal Computer changed offices in the 1990s, the smartphone and tablet computer are changing today’s.

Part of that change though is being driven by the change in generations. While this blog tries to avoid falling into the trap of generalising about different age cohorts – and contends the entire concept of baby boomers as an economic group is flawed – there are undoubtedly differences between the world of the PC generation of workers and that of the new mobile breed.

The key difference is the idea that work devices are different to those at home. Those of us bought up with the idea that the office computers would be tightly locked workstations – in the 1990s we also had the quaint idea corporate desktops were generally more powerful than what we had at home – are now seeing that way of working being abandoned.

For the next generation of office workers, accessing corporate resources through an app connected to a cloud service will be as normal as opening Windows NT to access the shared corporate drive was 15 years ago.

Along with the technology and generational change driving businesses into the cloud-app computing world there’s also the needs of a much more fluid and mobile workforce. The shift to casualisation began well before PCs arrived on desktops but the process is accelerating as we see crowdsourcing and the ‘uberization’ of industries.

Older workers will adapt as well, many came through the evolution of business computing from ‘green screen’ displays – if their businesses had any at all – through to the server based systems of recent years. For them the shift to smartphones might be troublesome for those with fading eyesight, but it won’t be the first change.

For businesses this shift means they have to start planning for the mobile services that will change workforces and industries. The shift is already well underway – accounting software company Intuit estimates small businesses already use an average of 18 apps to run their business.

We all have to start thinking about how these apps can be used to manage our staff and workforces.

The three S’s of employee engagement

How do we engage with an always on, connected workforce?

We need to rethink how we measure performance in the workplace says Andrew Lafontaine, Senior Director Human Capital Managemet Strategy & Transformation at Oracle Australia.

As business adapts to a changing society and mobile technologies, one of the questions facing managers is the mismatch between the Millennial generation and those GenX and Boomers who make up most of the executive suite, Lafontaine sees this as been in how the younger cohort approaches authority.

“There certainly can be a disconnect between Millennials and boomers. Millennials don’t see hierarchy the way boomers see it as important,” says Lafontaine. “Boomers have ingrained view of the way they have come through the workforce.”

Breaking the old rules

Unfortunately for those older managers, their world was based on a formalised, ‘straight line’ hierarchy dating back to the days ships’ captains used flags and voice tubes to communicate.

That rigid military style worked well for nearly two hundred years of business with mail and then the telephone only reinforcing that management model. Now newer collaboration tools mean different ways of working becoming possible.

A problem with those different ways of working in teams is how performance is measured warns Lafontaine.  “What they are not measuring at the moment are what I call ‘network performance’. How workers they helping their colleagues, collaborating and working together.”

Separating home and office

With mobile technologies becoming ubiquitous it becomes harder to separate work from home life, “we working now from home and on the tram. You don’t need a nine to five workforce nad companies have to deal with and embrace the technology,” says Lafontaine.

In the context of babyboomers and GenX workers, that technology meant longer hours in the office but Lafontaine suggests things are now changing. “There other areas to measure. How are they looking after themselves? The days of babyboomers working 12 or 14 hours a day and neglecting their health or outside life are over.”

For the future company, the key to success lies in engaging their employees Lafontaine says. “A more highly engaged workforce delivers better outcomes. Engagement is the three S’s: Stay, Say and Strive”

Those S’s come down to three questions for the worker; should I stay? What should I say? and How should I strive to do a better job?

For managers the challenge is engage all workers regardless of age, the task of finding what engages and motivates workers of the computer generation is only just beginning.