Why is Knowledge Work Critical?
Businesses who could previously survive by merely being competent, now need a defendable distinctive – the ability to do (and continue to do) something other organizations can not easily replicate. Newspapers now increasingly carry notices of investors holding back further investment until they see evidence of a unique capability.
With future growth and financial survivability at stake, companies are reevaluating the basis of their distinctive, whether by innovation, strong service culture, or combination of factors. Their executives are finding, firstly, thinking employees are building future revenue potential, and secondly, management knows very little about how to drive or evaluate the activities of these knowledge workers.
Knowledge Work Productivity = Strip Away Everything
Peter F. Drucker commented, “Knowledge workers don't believe they are paid to work 9 to 5; they believe they're paid to be effective. Organizations that understand this -- and strip away everything that gets in their knowledge workers' way -- will be able to attract, hold, and motivate the best performers. That will be the single biggest factor for competitive advantage in the next 25 years.”*
Drucker points out the critical importance of knowledge work and that smart organizations shouldn’t weigh down ‘thinking’ roles with superfluous procedures and measures, but also states, conversely, that much within organizations is detrimental to the productivity of those building future value.
Knowledge Work Productivity = Actions not Speeches
Consider innovation initiatives within more established organizations. Senior leadership recognizes the need, communicates “innovation is now our strategy” to subordinates, and sets numeric, measurable targets. The executives think they’re done while deeper down in the organization, managers respond as negatively, dismissively and defensively to employee suggestions as they have for years.
Knowledge Work Productivity = People not Policies
Other organizations compete on service and would like to re-make their culture, looking to outstanding examples of customer service as models (e.g. Ritz-Carlton, Disney, Southwest airlines, WestJet airlines, or Ascension Health - depending on the industry). The service culture models allow and support employees as they make service-based decisions as situations arise, but organizations wishing to emulate these businesses often create problems for their employees. Management presents the ‘new’ service-empowerment model in speeches, but leave untouched policies which actively discourage employee risk-taking (and reflect the previous management philosophy). Brave employees want to believe, rush forward to use their judgment and creativity, and find themselves jarred back to reality as the old policies are again enforced. Sadly, they learn quickly.
Knowledge Work Productivity = Survival
Whether an employee is delivering breakthrough technology, revolutionary software, or exemplary service – it is ‘thinking’ work, or knowledge work. Fundamentally different from the work most organizations are designed to reinforce, it is the ultimate competitive advantage as Drucker claimed. Aligning and motivating those performing ‘thinking’ or knowledge work is absolutely essential to building a defendable market position and, ultimately, surviving as a business.
*Drucker, Peter F. "Managing Knowledge Means Managing Oneself" Leader to Leader. 16 (Spring 2000): 8-10.
http://leadertoleader.org/leaderbooks/L2L/spring2000/drucker.html.
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