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IBM Academy of Technology3rd Conference on Humans and Technology: Adaptation and ImpactOct 12-14, 2011 The Blurring of Job Loyalties, Social Collaboration, and Personal Freedom: The Future of our Relationships with Workers Rawn Shah Social Business Strategist IBM Collaboration Solutions rawn@us.ibm.com twitter.com/rawn linkd.in/RawnShah

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1. How we work isevolving

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The Philosophy of Work in the Sloan Age “The best way to harness human talent is through full-time, exclusive employment relationships where people are paid for the amount of time they spend at a common location. They should be organized in stable hierarchies where they are evaluated primarily through the judgment of their superiors, and what and how they do their jobs is prescribed.” - Michael Chui, Senior Fellow, McKinsey Global Institute How often “Full-time, exclusive employment relationship.” What for “Paid for the amount of time [spent at work]” The Future of Work, Where “A common location” Aspen Institute, 2010 For whom “Organized in stable hierarchies” By whom “Evaluated primarily through judgment of their superiors” How “What and how they do their jobs is prescribed”

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Flexibility options for Full-time Employees – On-the-road (e.g., salesforce) – Work from home (permanent or part of the week) – Remote & mobility offices – Client sites (e.g., services business) – Flexible work hours – Short-term assignment redeployment

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Business Agility Requires a FlexibleWork Environment• To attract talent – To draw creative skills and create an attractive employment environment – To retain skilled employees or hire location-inflexible ones – Generational differences are also driving the need for more flexibility in the workplace. The younger generation of workers simply doesn’t view work the way their parents do1• To distribute talent – To access expertise from across the organizations – To encourage individual innovation & idea cross-pollination – To create career development opportunities – To allow flexibility to work across many time zones & geo-locations• To support client needs – By working in client environments (location or hours) – To reach client markets

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Flexibility through the Contingent Workforce• Contingent workforce: Contractors, Outsourced work, Consultants, Temporary employees, Freelancers• 14% of employers across the globe now turn to contingent employees to: – try out candidates prior to hiring for permanent positions, – provide longer-term flexibility, – quickly find talented people possessing specialized skills, and – outsource non-core business functions World of Work Insight,• “Demand for specialist contractors and outsourced workers will Manpower Inc. 2009 rise, especially in knowledge-driven areas where technology allows talented people to work from anywhere in the world.” 2• 58% of employers said they will hire more temporary and part- time workers – McKinsey Global Institute, Growth and Renewal in the US: Retooling America’s economic engine, Feb 2011

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Sloan Age Freelance employment employment Exclusive to one Non-exlcusive to a single organization organization or org unit Flexible hours –Fixed hours – Time-based Outcome-based Choice of contractPre-defined location(s) of defines location work requirements Defined reporting Per contract Reporting hierarchy definition & duration Benefits offered by one Freelancer must manage exclusive organization own benefits Pays self-employment taxes Taxation based on exclusive employer (varies per country)Bonus pay determined by Bonus pay determined by employer efficiency

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Sloan Age Freelance employment employmentEmployer may direct who Freedom to choosethey should interact with contract Other employees may Freelancer has to build provide guidance, their own network of mentoring or assistance mentors Employer defines work Freedom to choose work items & projects items & contracts Employer may dictate Specific work steps are specific work steps not defined (high flexibility)(little process flexibility) Work results / quality Work results / qualitydetermined by identified determined per project superiors Employers often offer Freelancer must develop pathways to career and their career and grow skills skills development on their own

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Contingency unfortunately considered as an option mostly by disengaged employees “26 percent of workers indicated an “Research from the Center for interest in becoming an independent Work-Life Policy shows that contractor or consultant. between June 2007 and December 2008, the number of 60 percent of those interested in employees expressing loyalty becoming an independent contractor to employers plunged from or consultant are either passive or 95% to 39% 4 disengaged in their current jobs. Another report indicates theMeasuring the forces oflong-term change: The This suggests that the workers number of highly disengaged2010 Shift IndexDeloitte Center for the most prone to considering the employees has increased fromEdge, 2010 option of self-employment are 1:10 to 1:5 since the first half of generally those who are least 20075. engaged in their current work.” 3 -- World of Work Insight, Manpower Inc. -- Measuring the Forces of Long-term Change, 2009 Deloitte Center for the Edge, 2010

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But why?“Why would you hesitate becoming an independent contractor?”Need steady/guaranteed income 58%Need for health insurance coverage 50%Given the economy, I prefer to maintain my employment as is 47%The benefits with my current profession make it worthwhile to stay 45%I am comfortable in my current profession and see no need to change it 33%I am not comfortable selling, which would be necessary to be successful 25%Income potential is too low 15%Other 4%Source: 2010 Deloitte Worker Passion / Inter-firm Knowledge Flow Survey (n=2898); Administered by Synovate

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Sloan Age Post-Sloan Age Freelance employment employment employment Exclusive to one Alliance to one parent org – Non-exlcusive to a single organization non-exclusive to org unit organization or org unit Flexible hours – Flexible hours –Fixed hours – Time-based Outcome-based Outcome-based Choice of project Choice of contractPre-defined location(s) of defines location defines location work requirements requirements Defined reporting Per project reporting Per contract Reporting hierarchy definition & duration definition & duration Benefits offered by one Benefits offered by one Freelancer must manage exclusive organization exclusive organization own benefits Pays self-employment taxes Taxation based on Taxation based on exclusive employer exclusive employer (varies per country) Bonus pay factored byBonus pay determined by Bonus pay determined by efficiency but also employer efficiency determined by employer

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Sloan Age Post-Sloan Age Freelance employment employment employment Freedom to interact withEmployer may direct who Freedom to choose relevant people per projectthey should interact with contract requirements Other employees may Employer provides network Freelancer has to build provide guidance, framework; employees their own network of mentoring or assistance build networks themselves mentors Employer defines project Employer defines work Freedom to choose work goals; employees choose items & projects items & contracts between projects Employer may dictate Employer may define work Specific work steps are specific work steps practices, but allow not defined (high flexibility)(little process flexibility) flexibility to do steps Work results / quality Work results / quality Work results / qualitydetermined by identified determined per project determined per project superiors Employers often offer Employers often offer Freelancer must develop pathways to career and pathways to career and their career and grow skills skills development skills development on their own

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What becomes possible in the Post-Sloanage?• Collective Intelligence: From Theory to Practice, an upcoming study from the IBM Institute for Business Value, describes new models of work: • Contests & Challenges, Idea Management, Collaborative Information Mapping, Template-based Design, Parallel Tasking, Communities of Practice, Serious Games, Distributed Q&A• Open Innovation - company-external collaborations and business models: Henry Chesbrough, Open Innovation (Harvard Business Press, 2005) • Workers may now come from customers, business partners, even competitors collaborating towards shared end goals, for financial or non- financial motivation

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Virtual Workers are alreadyworldwide• Virtual Goods production / sale – Estimate for virtual goods market: $6B worldwide by 20136 – Piper Jaffrey, Inc.• Virtual worker populations – Full-time “Gold farmers” for online games in China: ~100K (in 2005) 7 – New York Times – InnoCentive = ~12MM ‘solvers’ possible8 (2011) – Amazon MTurk = ~400K workers at any one time9 (2009) – oDesk = ~1.8MM hours worked, 97K jobs posted in month of July 201110• Creating a variation of Labor mobility & the contigent workforce – Geographic immobility, Virtual occupational mobility – People can live where they want, while they work elsewhere, without physically moving around

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“The early examples of Web-enabled collectiveintelligence are not the end of the story, but just thebeginning. As computing and communicationcapabilities continue to improve, there will be amyriad of other examples like these in comingdecades.” • Malone, T., Laubacher, R., and Dellarocas, C., 2009, Harnessing Crowds: Mapping the Genome of Collective Intelligence, Center for Collective Intelligence, Massachusetts Institute of Technology

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2. The line between our jobs andour personal lives is blurring

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Blogging or Social freelance networks writing of contacts Participation Live events, in online meetings communities Personally- owned Crowdsourcing / A New Class of devices at work Collective Intelligence Issues Co-working and Location- data for shared physical spaces sharing Personal Life Work-Life Balance Personal Life Work Life Work Life IT / Working with computing Remote access coworkers & employees Workload exceeds the Work-related workdayStress management Computerization Working of Job tasks across timezones Central Issue: Central Issue: “Take your work “Please bring your home” personal life to work”

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Personal Life Work Life IBM Institute for Business Value study: “Today’s CMO: Innovating or Following?” 3M Australia: Corporate character grows more critical in the networked age… ‘Every employee has become a touch-point for the brand’ “We want employees to be excited about the company’s values and history as an innovator, so they can be a constant touch-point for the brand essence.”12 Employers leveraging “Please bring your their Employees’personal life to work” “beyond-the-employer” trust network

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A New Class of Issues• Personal data from online activity creates “an emerging new asset class touching all aspects of society… personal data will be the new ‘oil’ ” 13 – Individuals’ direct or indirect actions generated 70% of digital data in 20108 (IDC) Personal Data: The – By 2020, digital records will be 44 times larger than in 2009 (IDC)14 Emergence of a New Asset Class – Break from ‘industrial-age’ view of people as “consumers” World Economic Forum 2011• Need an End user-centric view of transparency, trust, control, value• Juggling priorities and loyalties – to employer, to self, to communities• To keep with the pace of social network activity, there’s increasing need for frequent of task & context-switching and Future Work Skills 2020 cognitive load management15 of these priorities and loyalties Institute for the Future + Univ of Phoenix Research Institute, 2011

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Berkman Center’s Project VRM & Goals• Provide tools for individuals to manage their relationships with organizations.• Make individuals the collection centers for their own data, so that transaction histories, health records, membership details, service contracts, and other forms of personal data are no longer scattered throughout a forest of silos.• Give individuals the ability to share data selectively, without disclosing more personal information than the individual allows.• Give individuals the ability to control how their data is used by others, and for how long.• Give individuals the ability to assert their own terms of service, reducing or eliminating the need for organization-written terms of service that nobody reads and everybody has to "accept" anyway.• Give individuals means for expressing demand in the open market, outside any organizational silo, without disclosing any unnecessary personal information.• Make individuals platforms for business by opening the market to many kinds of third party services that serve buyers as well as sellers• Base relationship-managing tools on open standards, open APIs

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3. Our Work skills need to change

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Managing our personal flow of work& attention• Between tasks within your primary job• Between projects for your manager• Between projects for multiple organizational stakeholders• Between projects with external partners, customers, etc. for your job• Between projects in multiple jobs• Between crowdsourcing projects• Between internal and external social networks

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Future Work Skills 2020Institute for the Future +Univ of Phoenix ResearchInstitute, 2011

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Managing Workloads, Identity, Reputationand Personal Data• A new environment for how people work: – Flexible Full-time and Contingent employees – Collective Intelligence & Open Innovation – Beyond-the-Employer Professional Social Networks• Emphasizes New Skills & Work Factors – Manage your Flow of work – Manage your Relationship & Trust networks – Manage your Identity, Expertise & Reputation – Manage your Personal Data – Leverage your Social Analytics

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Future work environments needSocial Business capabilities

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Corporate Digital Citizenshipas a Quality-of-Life differentiatorOrganizations need to support workers: • Refactor work to outcome-based, collective intelligence, social business methods – Improved employee work freedoms as an employee engagement driver and recruiting differentiator: assignment/reporting, work styles, work hour flexibility, personal projects, worker passion • Incentivize it appropriately – How would the average person get paid reasonably with this approach to work? – How can they excel and earn likewise? • Facilities for managing and monitoring personal data use – Improving transparency, trust, control and value per End user-centric view – End user-centric social analytics about “my actions, and use of my data” • Commitment to worker digital reputation building as part of career development – Don’t just make it a tagline – Help your employees to demonstrate and develop their reputation • Train in Future workforce skills – When did your employee last get training in Sensemaking and Social/Emotional Intelligence?

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Corporate Digital Citizenshipas a Quality-of-Life differentiatorWorkers need to support the organization’s goals: • Support Corporate ‘asks’ of personal network & trust relationships • Adjust to realities of flexible changing work • Emphasize Corporate values of trust, integrity, influence through expertise • Awareness of corporate policies on social media use, online activity monitoring and maintaining privacy • Educate yourself and Learn socially – learn while you apply future workforce skills

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Rawn Shahrawn@us.ibm.comtwitter.com/rawnlinkd.in/RawnShah

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ReferencesThe content in this presentation does not represent the views of IBM corp., and are solely the responsibility of the author1. Manpower Inc., World of Work Insight, Nov 2009, www.manpower.com/researchcenter2. Ibid3. John Hagel, John Seely-Brown, Duleesha Kulasooriya, Dan Elbert, Measuring the Forces of Long-term Change: The 2010 Shift Index, Deloitte Center for the Edge, 20104. Sylvia Ann Hewlett, Top Talent: Keeping Performance Up When Business Is Down, Harvard Business Press, October 20095. Improving Employee Performance in the Economic Downturn, Corporate Executive Board, 2008.6. Piper Jaffray Inc, “Pay to Play: Paid Internet Services”. Piper Jaffray investment research, July 20097. J. Dibbell, Life of the Chinese Gold Farmer, New York Times, June 17, 2007, http://www.nytimes.com/2007/06/17/magazine/17lootfarmers- t.html8. InnoCentive, Facts & Stats, Q2 2011, http://www.innocentive.com/about-innocentive/facts-stats9. J Ross, L Irani, M.S. Silberman, A. Zaldivar, B. Tomlinson, Who are the Crowdworkers? Shifting Demographics in Mechanical Turk, CHI 2010, Apr 2010, http://www.ics.uci.edu/~jwross/pubs/RossEtAl-WhoAreTheCrowdworkers-altCHI2010.pdf10. oDesk, The oConomy, July 2011, https://www.odesk.com/oconomy/11. Rawn Shah, The Future of Work, Forbes.com May 2011, http://www.forbes.com/sites/rawnshah/2011/05/17/the-future-of-work/12. IBM Institute for Business Value, “Today’s CMO: Innovating or Following?”, 2011, http://www- 935.ibm.com/services/us/gbs/thoughtleadership/ibv-cmo-prestudy.html13. World Economic Forum, “Personal Data: The Emergence of a New Asset Class”, Jan 2011, http://www3.weforum.org/docs/WEF_ITTC_PersonalDataNewAsset_Report_2011.pdf14. IDC. “The Digital Universe Decade – Are You Ready?” May 201W IDC 201015. Institute for the Future for the University of Phoenix Research Institute, “Future Work Skills 2020”, Apr 2011, https://www.phoenix.edu/research-institute/publications/2011/04/future-work-skills-2020.html