10 States to aim for in the Future of Work

Right now, companies have an opportunity to reset the way they work. Leaders can reboot workplaces with a fresh focus on culture, purpose, diversity and empathy. If we get it right, the next few years will be remarkable. If we fail, it’s the greatest lost opportunity in a generation

The forced experiment of mass remote working has been a chance to transform not only where but also how work gets done.

Many companies have changed for the better during the pandemic, and people are energised to see large organisations acting like startups: putting purpose front and centre, having an attitude of progress over perfection, and innovating with the consumer in mind. The switch to a virtual environment has inspired leaders to rethink how work gets done.

At Magnetic, we’ve been thinking and experimenting around the future of work for some time. We work in small cross-functional autonomous teams. We help big companies bring their purpose to life. We involve customers and users at every stage in the design process. And we help companies work — and change — at pace, as fast as the environment is changing around them.

What’s the end state? We’ve identified ten big themes that we’ve seen in the most successful organisations we’ve worked with, or have admired from afar. Nobody gets everything right, this is a checklist of powerful medium-term goals.

This workplace of the future is already here, but it’s unevenly distributed. When we look at companies that are thriving, these are the conditions we see.

1. Hybrid working that really works

The challenge for leaders is balancing people’s working styles, different needs and newfound sense of choice with what’s right for the business. Approaches range from blind optimism to accelerated tech innovations — such as cameras embedded into computer screens so that you can make eye contact — but the real work is cultural. There has been a mindset shift away from presenteeism, but status quo bias — where people revert back to previously established and familiar behaviours — is an obstacle.

“I like working from home as it gives me time to think. Downtime is so important.”

Lorraine Landels, Director of Strategic Relationships, Buro Happold

We’ve been helping a global FMCG company to be more deliberate about its working practices. Teams are building frameworks to help them make decisions about where and how they work. They’re learning how to turn down unnecessary meetings and calls. Saying no can be a superpower.

54% of employees who would change jobs for one that gave them more flexibility.

True hybrid working values outputs over hours, for better engagement and work-life balance. No one is sidelined because of where they work, or overlooked for promotion. Difficult questions are considered, such as whether hybrid should also mean flexible hours, and whether salaries are based solely on skills and output or consider location and travel costs. And hybrid meetings aren’t awkward.

2. A shared company story that makes sense to everyone

Working in a company is a bit like watching a really long TV series. When it’s good, everyone knows what’s going on, why it’s happening, and where we’re going. When it’s not, it feels like you started watching Lost halfway though the second series.

In 2020, half of HR and business leaders ranked employee experience as their no.1 initiative.

It’s on their minds more than ever now. At Magnetic we’ve worked on fascinating team engagement projects with organisations as diverse as JUST, National Grid, PATRIZIA and Highways England.

People need purpose, choice, and the right tools and knowledge. They have to understand and believe in the purpose of the business as well as their individual purpose, the impact they’re making, and the role they have in achieving business goals.

Having access to collective knowledge and the tools and information they need allows them to do their best work. Successful businesses spend time and money supporting staff to develop new skills. A motivated and engaged workforce unites the organisation and unlocks the full potential of employees.

3. Autonomous teams who can make big things happen

We were working with a forward-thinking multinational company, talking them through a new innovation process, and in the middle of the chart was a box that read: “Empower an autonomous team.”

“This is great,” said the MD. “But how are we going to make sure they do the right thing?”

When teams feel empowered and autonomous, they’re self-organising and highly engaged. They don’t have a one-size-fits-all structure, and they work in different ways. They’re a gang. They develop skills they need as the business changes and grows. They collaborate effectively, make decisions quickly and the people in the team know exactly why they’re there.

It’s the holy grail. For old-school bosses it’s a nightmare — a team empowered to bend the rules. Giving teams and managers confidence to work this way can be a long journey, requiring them to trust themselves and each other.

It also means creating teams that can focus; small, dedicated teams can make big things happen. As Amazon’s Dave Limp says:

“The best way to fail at inventing something is by making it somebody’s part-time job.”

4. A serendipitous workplace

It’s the million dollar question: How do we not lose the watercooler moments — the spontaneous conversations and ideas that come from people being in a building together? Without the office as a central hub, these in-person moments at desks, in kitchens and walking to meetings are lost. Without care, hybrid working could mean that those who largely return to the office feel more personally connected and creatively fulfilled than those who mostly Work from Home or Work From Somewhere Else.

“Brainstorms and creative collaboration feel harder online. I miss being together with the team and bouncing ideas around. We don’t have a laugh as much as we did before.” Sara Rhodes, then Director of Events at News UK

Could long-term virtual set-ups even mean an eventual decline in new ideas?

Successful workplaces will be those that encourage unplanned conversations and connect people socially — without adding to screen fatigue. Lunchclub and Clubhouse are two startups trying to engineer serendipity. Lunchclub is ‘Zoom roulette’ at scale, offering AI-facilitated meetings with someone in another business who you’d never otherwise have met. Clubhouse’s live audio rooms allow you to stumble upon conversations you’d never otherwise have heard. It can be magic — but the price is your time and attention, especially if you spend more time kissing frogs than meeting the prince.

5. Leaders are humble and adaptable

You could call it the Southgate effect, because business school professors will be talking about Gareth’s leadership in Euro 2020 for decades to come.

His combination of deep empathy, absolute clarity and a focus on person over player is an inspiration and a reminder of how far many leaders have to go.

There was already a shift in priorities when it comes to leadership skills and styles. Previously essential qualities such as deep domain expertise are being replaced by industry agnostic qualities of agility, empathy, communication and willingness to change.

“I know I don’t know all the answers,” says Liv Garfield, CEO of Severn Trent. “I listen. I want everyone to share their brilliant ideas. Everyone knows they can reach me. Everyone knows I respond to emails.”

We are all learning through this process, and transparency is what’s resonating with employees. Leaders must set a clear and real purpose, and communicate it openly and transparently. People want purpose and short-term clarity, not long-term strategy.

6. Purpose is more than a mission statement printed on the wall in fancy type

‘Purpose’ feels fuzzy and vague — until the moment that it doesn’t. It is your fundamental reason for being, not something lofty or written to sound good, but relatable and actionable.

Legal and General is a business built on ‘slow money’ — long-term, prudent investment — so it’s in a great position to fund and support net zero and clean energy projects. “We can’t stand around saying, ‘Someone ought to be doing this,’’ says Bernie Hickman, CEO of Insurance. “Let’s try to make some stuff happen.”

For Dr Louise Newson — GP, menopause specialist and author of a bestselling book on the topic — purpose is clear. She’s on a mission to help women understand the menopause. So when Magnetic helped her develop the hugely successful Balance app, this sense of mission is what drove the project forward.

A clear purpose inspires, connects and empowers employees, gives them something exciting and motivating to stand behind, and enables them to feel valued.

It unlocks better performance and collaboration, as they come together behind a common goal. Purpose is the guiding light in navigating the complex world we’re in, where strategy is constantly changing and few decisions are definitely right or wrong.

7. People trust each other (and themselves)

When a company really trusts their people, they do things differently. “We let our 1,500 people schedule their own hours,” says Mark Walton of Sensée, a fully work-from-home company. “We don’t run any standard shift patterns.”

Trusting workplaces are about adult-to-adult relationships, not parent-to-child conversations. Managers who monitor where people are or question why they’re working at different times aren’t building a culture of trust.

“64% of people who say trust directly impacts their sense of belonging at work” — Trust in the modern workplace, UKG

But there’s much more to it than that. It means teams and individuals trusting themselves — to make decisions, to push back against leadership, and to build a powerful case for something new and different. Building that kind of trust and confidence can be a lifetime’s work for even the most talented manager.

“I trust that everyone comes to work wanting to do the right thing for our customer.” Liv Garfield, CEO, Severn Trent

At Magnetic, we often use innovation labs, workshops and large-scale RapidStart events to build confidence within teams. Once someone has built a product in 48 hours, presented it to the CEO and won the investment to take it further, they’re never quite the same again.

8. You don’t all look (or think, or live, or behave) the same

Leaders of diverse organisations are comfortable with being just a little bit uncomfortable.

“We’re still stuck with leaders who won’t make things uncomfortable,” says executive coach Catherine May. “They won’t take a chance on someone who doesn’t have the same experience as them.”

Rather than searching for individuals who are an obvious culture fit, Jonas Templestein, co-founder of Monzo, talks about searching for people who can help culture grow.

Focusing on diversity and inclusion has a profound, positive impact on creating a people-first culture. As we move away from a rigid culture of commuting and one-size-fits-all work days, there’s an extraordinary opportunity to change for the better.

Allowing greater flexibility increases the talent pool — and opens up jobs — to working mothers, carers and people with disabilities. It may mean that working parents can take types of jobs they couldn’t previously — or reduce stress and burnout in the job they’re in.

“Companies with diverse executive teams are consistently more profitable than their peers.” Delivering through diversity, McKinsey

Hybrid working, and recruiting staff from further afield, reaches people who can’t afford to live in cities.

When organisations practise diversity, the impact can be immediate: 20% of Sensée’s staff are registered disabled, working remotely as call-centre operators. CEO Mark Walton says: “We’ve unearthed a huge talent pool.”

9. Getting beyond “I’m fine”

As sustained homeworking continues, there are big concerns globally about the mental and physical wellbeing of staff, especially burnout. The head of compliance at a large asset management firm told us: “Top of the list [of concerns] is the welfare of staff, ensuring they are personally OK — mentally and physically — and can work for us in a way that supports the organisation but keeps them safe.”

“There will be a legacy from this and one hangover will be issues of mental health” Mark Allan, Commercial Director, Bupa UK

The pandemic has underlined the value of individuals and shown that taking care of them is imperative. Empathy became an essential quality of good leaders, and lack of it showed who fell short. Post-pandemic, with wellbeing now firmly at the forefront, that has to continue — with leaders leading by example by being seen to make time for their own wellbeing and not relentlessly working extended hours.

There’s been a shift to empowering staff to look after themselves. Leaders don’t have all the answers and must consider the question of what is their responsibility and what is the employee’s. They have to decide what support it’s right to offer, then ensure employees know what’s there and who to talk to. They have to foster the right environment; one where, for example, managers are mindful of workloads, employees feel they can ask for help, and they know they have permission to take the time for their personal wellness.

10. You change as fast as your customers

Before lockdown, online car retailer Cazoo found that 34% of UK consumers were willing to buy a car online. That’s a remarkable number, and was certainly enough to build a fast-growing business. In 2021, the number had increased to 64%. It’s an extraordinary shift, which is powering the firm’s £5bn flotation.

Understanding how the inevitable waves of change will affect your industry and customers will enable you to identify opportunities for growth. Consumer needs, priorities, behaviours and spending changed during lockdown and new ones developed, and we can’t be entirely sure yet which will stick. This gives most consumer-facing businesses the double challenge of both recovery and reinvention — while at the same time, customer behaviour is still evolving. New propositions with pivot potential are key, yet developing them is like building an aeroplane in flight.

Customers are number one, employees are number two and shareholders are number three.” Jack Ma, CEO, Alibaba

Getting closer than ever to the customer is crucial, to understand and anticipate their new and evolving needs, and to design products and services for them. Consumers across age groups and geographies expect full digitalisation and convenience. They’re buying less, buying more sustainably, and rethinking their spending;

60% worldwide say they’re making more ethical and sustainable purchases than pre-pandemic. Businesses need to balance these opposing demands for convenience and ethical practices. After all, there is little point in reengineering the business if it isn’t in service of the customer.

This is an excerpt from our latest book Now for the tricky bit; it’s all about building stronger, happier businesses with purpose. Click here to request your copy now!

Magnetic is a design and innovation company that helps design better futures. We’ve worked with global businesses to build capabilities, products, services and transform organisations. To find out more, get in touch: hello@wearemagnetic.com.