22 December 2016

Read an excerpt from Seb Olma’s new book on the great digital swindle

Author | Sebastian Olma

Digital Taylorism: labour between passion & serendipity

Attack of the Big Yawn

In his fascinating historical study of the rise of happiness to the highly valued commodity it has become in our time, the British sociologist William Davies offers a brief yet intriguing meditation on the end of capitalism. In the past, he says, the collapse of our current mode of production has usually been imagined to occur as the result of economic crisis, political revolution, ecological disaster, or, in the best of cases, through technological innovation. However, since the end of the cold war, Davies muses, there seems to be another, “more lacklustre” option on the horizon:

What if the greatest threat to capitalism, at least in the liberal West, is simply lack of enthusiasm and activity? What if, rather than inciting violence or explicit refusal, contemporary capitalism is simply met with a yawn?

Williams’ remarks are far less tongue-in-cheek than they may appear. There is indeed a rather telling sign of – if we were to put it in Marxist terms – capital’s lack of motivational pull with regard to labour that over the last two decades has developed into a management obsession: the theory and practice of “employee engagement”. Gallup started measuring employee engagement in the Eighties, its popularity as an indicator of the ‘health’ of a company surged in the 1990s, and today there is a plethora of refined engagement surveys and training programs available from dozens of providers. While the popularity of employee engagement is in itself suggestive of a motivational problem among the workforce – why else would one want to measure engagement? – the actual numbers these surveys regularly produce are truly disheartening for the managerial class. Gallup’s last Global Workplace Report of 142 countries has found that only 13% of employees are properly “engaged”, with those “actively disengaged” among the European and North American workforce figuring around 24%. Often, though, it’s not just the ubiquitous ‘yawn’ ruling our corporate and public offices that is the problem. Stress-related illnesses, burnout, and similar work-induced forms of psychological and physical paralysis have joined forces to become the 21st century workspace epidemic throughout the developed world. In this sense, lack of enthusiasm or activity indeed presents a formidable challenge to our economic order, in spite of the cynical strategy to commercialise the collective disengagement by repackaging it as independent symptoms of individual psychological pathology.

What interests me in the anti-capitalist attack of the collective yawn and its pathological companions – beautifully captured by the philosopher Byung-Chul Han in the notion of the “fatigue society” (Müdigkeitsgesellschaft) – is that it can help us to come to terms with some of the current transformations in our understanding of labour as productive activity. In this chapter, I would like to concentrate on two developments that can be seen as attempts to respond to the challenge of the big yawn: on the one hand, the quasi-eroticisation of labour articulated in the notion of passionate work, and, on the other hand, the mobilisation of the social dimension of labour expressed in the celebration of entrepreneurial serendipity.

The Passion of the Work

While the fateful alliance between passion and labour had been anticipated by a number of visionary sociologists around the turn of the century, it is only recently that work is almost everywhere turning into a passionate project. Over the past few years, passion has become a basic requirement for employees of all stripes. Regardless of the mundane nature of the job at hand, today it is almost impossible to get anywhere near work without the invocation of one’s passion for it.

As with so many of the ideological tropes discussed in this book, the connection of work and passion makes quite a bit of intuitive sense. What could be wrong with ‘loving what you’re doing’? If employees and entrepreneurs could be truly passionate about their work, it would turn their daily toil into a much more fun and fulfilling activity. Employers and clients, on the other hand, would profit from increased productivity and generally from a better job being done. Take, for example, one of the more authoritative publications on the topic, The Power of Pull, written by business consultants and management scholars John Hagel, John Seely Brown and Lang Davison. Under the heading “Make Your Passion Your Profession” they inform their readership about the new logic of passionate work:

Those of us who continue to toil at jobs we don’t love will find ourselves nonetheless toiling harder as our competition continues to intensify. We’ll find it increasingly difficult to cope with the mounting stress or to put in the effort required to raise our performance. We need to marry our passions with our professions in order to reach our potential… Passion in this context refers to a sustained and deep commitment to achieving our full potential and greater capacity for self-expression in a domain that engages us on a personal level. We often develop and explore our passions in areas such as sports or the arts outside of work, but we rarely integrate our passions with our professions.

The funny thing about the logic of the argument here – and this really is a staple of the management ideology of passionate work – is that the necessity of throwing yourself passionately into the game is sold to the reader as a result of everyone being just about to do it. Maybe not today but certainly tomorrow, there will be so much passion going on in corporate and public organisations that competition becomes a question of being even more passionate than everyone else. Stress, lack of performance and cynicism are caused by insufficient alignment of one’s passion to one’s work. Hence, the suggested solution: get aligned, fall in love with your work already; passion is the key ingredient to professional success. While this makes for a fascinating story, it is exactly the opposite of what a dispassionate view of reality (a.k.a. empirical data) suggests. The wave of passion that supposedly is just about to sweep through contemporary capitalism shows neither in employee engagement surveys nor in health statistics, business indicators, or macro-economic data. Nor, in fact, does it show in the great product and service innovations that surely would be the outcome of a passion-driven economy. No, the reason why passionate work has emerged as one of the great ideologies of our time is the fact that the big yawn is becoming deafening, that the neoliberal mutation of capitalism has turned the economy into a self-sabotaging system, systematically destroying its most important source of value: labour.

In order to make sense of the rise of passion to a workplace requirement within corporate and public organisations, it helps to first consider an interesting historical coincidence. The emergence of debates around employee (dis-)engagement was contemporaneous with the beginning of the systematic digitisation and automation of the workplace. In the late 1980s and throughout the 1990s, a new breed of professional service providers revolutionised the management consulting sector. What they offered had very little to do with traditional board level advice. Rather, they were selling large scale IT-systems able to automate management processes throughout the entire organisation. The first wave of digitisation and automation of business came for the most part with the label of reengineering. The grandiose claims with which reengineering firms pushed their way into corporate and public boardrooms have largely been erased from managerial memory. Suffice to say that alongside predictions of increased efficiency and massively lowered costs came the promise of a workforce liberated from repetitive bureaucratic chore. Reengineering the organisation was supposed to lead to the creation of professional environments in which creativity was finally allowed to thrive.

This, of course, is not what happened. The former Financial Times correspondent Simon Head is one of the few scholars who have systematically traced the automation of the workplace from the reengineering wave of the Eighties to the current almost universal use of so-called Computer Business Systems (CBSs; previously known as Enterprise Systems [ES] or Enterprise Resource and Planning Systems [EPS]). His reports from the battlefield of digital armament for the sake of creatively liberated workforces paint a picture of the contemporary workplace all too familiar to many of us who spend their lives within corporate and public organisations. According to Head, digitisation and automation have spread the logic of industrialism far beyond their conventional jurisdiction: to wholesale and retail, financial services, higher education, health care, public administration, and corporate management. In addition, they have also introduced the neo-disciplines of Customer Relationship Management (CRM) and Human Resource Management (HRM).

What’s going on here has nothing to do with the future visions of digital machines working merrily side by side with humans. The computer systems that have been implemented throughout the economy form the technological backbone of a massive neo-bureaucratisation of corporate and public organisations. In order for the digital industrialisation of the workplace to function across different sectors, a veritable army of techno-bureaucrats has invaded corporate and public institutions whose mere task is the streamlining of employee behaviour according to the requirements of algorithmic performance indicators and the like. And it is not just the infamous call centres and Amazon warehouses we are talking about here. Highly trained professionals such as doctors and professors have been pressed into preformatted work processes, effectively losing the sovereignty over their own crafts(wo)manship, expertise and knowledge. There is a systematic annihilation of professional creativity at work here, nullifying, as Head puts it, “the employee’s accumulated skill, knowledge and experience which, applied to the daily problems of the workplace, enable employees to do their jobs well”.

Faking It: Passion as Simulation

The reason why this is crucial for the present discussion is that the massive destruction of professional skill and quality by the logic of office automation was accompanied by the emergence of a new kind of competence. Arlie Hochschild famously began to describe this development in the Eighties in terms of the appearance of what she called “emotional labour”. In her pioneering study of flight attendants, The Managed Heart, Hochschild defined emotional labour as requiring the employee “to induce or supress feeling in order to sustain the outward countenance that produces the proper state of mind in others”. It is obvious that thirty years ago, flight attendants’ requirement to serve with a smile didn’t have much to do with automation. And also today, emotional labour is not necessary directly related to CBSs and the like although it can be if we think of the emotional stress caused by counterproductive office IT-systems. The point where digital office automation and emotional labour intersect is that of simulation. CBSs and their administrators are not for one bit interested in the inherent professional value of performance simply because they have not got the means to understand what this would actually be. They simulate performance by way of algorithmic indicators and matrices whose abstract universality – the fact that they need to be applicable across diverse sectors in order to be economically viable – ensures their radical decoupling from the particular professional reality (epitomised, perhaps, by the infamous star ratings for hospitals, universities and so on).

The flipside of this kind of performance simulation can be found in the rise emotional labour, and indeed, passion. For HRM-professionals, emotional labour is not the ‘labour of care’ that comes with a specific professional territory – think, for instance of physicians and nurses – but the universal mobilisation of individual sources of empathy and enthusiasm for the most profane ends. The creation of experience as a service is an important reference here, albeit in a much more skewed sense than was intended by the gurus of the experience economy, Joe Pine and James Gilmore. In an economy where the most exciting new consumer products are digitally pimped wristwatches (first developed almost fifty years ago) and cars that actually rob you of the experience of driving, experience is something that increasingly has to be provided as a product or service veneer by the employee. The logic of the emotional template that is spreading throughout corporate and public management culture by way of HRM has been famously captured by Mike Judge’s 1999 movie Office Space. In the film, Joanna works as a waitress in a fast food chain called Chotchkie’s. An integral part of her work there is to wear idiotic buttons with slogans and symbols on them. They are referred to as “flair”. At a certain point in the film, Stan, Chotchkie’s manager and Joanna’s boss, takes her aside in order to express his dissatisfaction with the way she’s handling her “flair”:

“Stan: We need to talk about your flair.
Joanna: Really? I… I have fifteen pieces on. I, also…
Stan: Well, okay. Fifteen is the minimum, OK?
Joanna: OK.
Stan: Now, you know it’s up to you whether or not you want to just do the bare minimum. Or… well, like Brian, for example, has thirty-seven pieces of flair, okay. And a terrific smile.
Joanna: OK. So you… you want me to wear more?
Stan: Look. Joanna.
Joanna: Yeah.
Stan: People can get a cheeseburger anywhere, okay? They come to Chotchkie’s for the atmosphere and the attitude. OK? That’s what the flair’s about. It’s about fun.
Joanna: Yeah. OK. So more then, yeah?
Stan: Look, we want you to express yourself, okay? Now if you feel that the bare minimum is enough, then okay. But some people choose to wear more and we encourage that, OK? You do want to express yourself, don’t you?
Joanna: Yeah, yeah.
Stan: OK. Great. Great. That’s all I ask.”

In 1999 the scathing humour of the Judge’s film was somewhat lost in the peak of the dotcom boom, but a few years later it became a commercial success on the small screen (VHS and DVD sales) as a cult comment on the corporate re-entrenchment of the post-crash years. Today, it serves as a reminder that the idiocy expressed in the notion of “flair” has become almost universal workplace policy. In the contemporary workplace, flair in its many disguises has been integrated in the strange virtuosity of emotional labour. This goes for all layers of management, save the highest, as well. Those of us who are lucky enough to be uninitiated into the circuits of managerial emotional labour can begin to bring themselves up to speed on the issue through the work of the young German director Carmen Losmann. In her brilliant 2011 documentary Work Hard, Play Hard, Losmann follows a number of so-called change management trajectories in German corporations. In one of the sequences, the viewer witnesses a series of assessment interviews for potential junior managers who are confronted with the most insipid questions about their emotional ‘leadership qualities’. Interestingly, the candidates who do well in the interviews are those who respond by shooting back the prefab-slogans found on the pages of contemporary management and coaching literature. One gets the impression that what unfolds in front of one’s eyes is a grand simulation, a mutual game of Munchausen, where everyone knows that this is essentially nonsense but equally knows that as an employee – regardless whether shop floor or management – one simply has to show the readiness to go the emotional extra mile. What makes this viewing experience so excruciating is the effortlessness with which the camera is able to reveal the absurdity of the change trajectories followed by Losmann’s documentary. We are observers of an exercise in pointless emotional gymnastics motivated by the illusion that this will somehow vitalise corporate culture. The flair of the burger waitress returns, this time packaged in an HRM-fabricated company culture that in its ideological wackiness is easily on par with the obligatory party-gibberish that pervaded the Kombinate (state-owned corporations) of real existing socialism.

The obvious difference to the time of the politburo is that today, there is no central authority determining and emitting the correct world-view and watching over its implementation. Proud to be ideology-free, the neoliberal state has outsourced its ideological function – at least when it comes to labour – to the consulting industry. This is not meant as a rhetorical pun at all. If one looks at the process by which the consulting industry rose to its current dimensions, one cannot escape the realisation that it is heavily invested in the rise of neoliberal politics. The shrinking of state bureaucracy that started in the 1980s coincided with the expansion of the consulting sector that stepped in to provide the services previously run by the state itself. The reason why this worked quite beautifully was that at the same time the consulting industry underwent quite a drastic transformation – from traditional board level advice to the provision of in- or outsourced IT-systems covering the entire business process. Governments – particularly in the UK and the US – were among the first clients, providing an industry in transformation a field of large-scale experimentation by handing out consulting contracts of unprecedented financial value. The governments’ benefit for subsidising and in fact growing the consulting industry was that they got the argument of technological progress to support their own ideological agenda. In other words, both the massive growth of the consulting industry in the 1980s and 1990s and the history of office digitisation and automation are intimately linked to the rise of neoliberalism.

Of course, the consulting sector is a notoriously secretive industry so much of its machinations – including the often catastrophic failures of the 1980s and 1990s IT-contracts – remain largely in the dark. It is thanks to another German documentary maker that we are able to look behind the screens of today’s distributed production of ideology. In Ein neues Produkt, Harun Farocki follows the directors of the Quickborner Team, a Hamburg consulting firm that was once famous for the invention of the Bürolandschaft. Today, they design corporate environments for the so-called ‘new way of working’, which is a big theme for corporations. In the ‘new way of working’, the digital automation of work processes discussed above meets the appropriation of cultural practices that independent creative producers have experimented with over the last decade or so in order to update the industrial configurations of corporate work space.

With his characteristically calm and discreet concentration, Farocki films the strategy workshops and client meetings of the Quickborner Team, capturing the semiotic dynamics at work in the development of radically innovative workplace cultures. The consultants develop the cultural tapestry for office architectures that are supposed to make employees faster, smarter, more effective and so on. The goal is flexible workspaces able to facilitate more self-determined, independent employees who, through all kinds of serendipitous interaction, contribute to the innovative capability of the company. Nothing wrong with this, let’s make these environments less depressing and more interactive, if people become more productive and innovative in the process because the new environments cater more appropriately to their professional needs, that’s fine as well. Yet, what the semiotic dynamics of the meetings portrayed by Farocki reveal goes in a rather different direction. It transpires quickly that the protagonists of the film have very limited interest in understanding the needs of the ‘modern employee’. The purpose of these workshops and client meetings appears to be limited to the generation of a vocabulary able to catch a managerial zeitgeist that is totally unencumbered by any substantial reflection on what flexibility, collaboration, or, indeed, self-determination might entail from an employee’s point of view. Instead, the Quickborner space-gurus combine design thinking fragments, systems theory sound bites and kitchen psychology in order to produce a rhetorical vacuum that is supposed to fill their clients’ workspace with what John Hagel and his colleagues call the “power of pull”, attracting the passion of the employee. “It’s emotionality where we can score with our clients”, one of the directors of the Quickborner Team says at a decisive moment in the film, and, as silly as this may sound, he is spot on. The general ideological task of these consultants is to find the passionate antidote to the big yawn his peers have caused by implementing digital managerial industrialism.

Abstract Passion, Concrete Bullshit

It is obvious that nothing of this kind will ever be achieved by simply encouraging the workforce to ‘fake it’. Interventions by culture consultants of the above kind are not just economically nonsensical but counterproductive. For companies that understand themselves as economic entities existing for the purpose of creating products and services that people need, they have no value whatsoever. They do, however, make perfect sense for corporations whose purpose is first and foremost to cater to the interests of financial markets. This might sound slightly vulgar (“Oh, they just want to make money!”), but it is in fact a vital distinction. One of the main reasons for the absence of exciting innovation today – increasingly even at the level of technology – has to do with what economists call “the financialisation of the economy”, i.e., the fact that economic performance is increasingly measured on financial return on investment (shareholders, etc.) rather than on successful products and services. Clayton Christensen, perhaps the most influential management and innovation guru of our time, denounces this tendency in Harvard Business Review as “The Capitalist’s Dilemma”. Where real economic output becomes secondary, it gets difficult to form a company culture based on the collective pride of being part of an organisation that makes great stuff. Hence the false belief in the snake oil salesmen who claim to be able to create your company/product/ service culture based on hot air.

This innovation predicament is related to the neoliberal transformation of capitalism understood as the streamlining of economic production according to the needs of financial capital. The flexibility inherent to financial capital has to be reproduced at the level of the employment relation. And this is exactly the reason for the shift from professional skill to emotion and affect: the abstract liquidity of financial capital requires a corresponding liquidation of professional skill into the desires and emotional dispositions of the workforce. Today’s intensified competition and chronic market instability have at least as much to do with financialisation as they do with the transformative power of digital technology. Think, for instance, of the way in which the so-called sharing economy is organised. Many of the platform business models we find there are able to disrupt existing markets in spite of being economically dysfunctional. They can do this because they are highly subsidised by financial speculators whose treasure chambers are filled with capital that can’t find economically sensible investment. Financial abstraction thus leads to pseudo-economic (yet very lucrative) investment games, erratic markets environments, and the need for hyperflexible employees for whom the emotional labour of passion replaces professional skill.
In such an economic environment, one can expect to find an organisational landscape that is increasingly unprepared to treat its employees like grownup professionals. There is clear evidence that working conditions have been deteriorating for years across a wide range of industries – particularly in the US and the UK. This list, provided by Simon Head, is quite comprehensive:

[They] include increased working hours for individuals and family units; increased inequality of income and stagnant or declining real wages for a majority of the workforce; the break in the historical relationship between profits, productivity and real wage growth; loss of retirement income and shifts in the pension risk to employees, declining health care coverage and shifts of cost to employees; loss of employee voice at work as labour-movement members decline to pre-1930 levels; and increased layoffs not as a last resort but as a routine aspect of corporate restructuring. To the list should be added the increased pace of work dictated by CBSs, its intensive targeting and monitoring by ‘performance evaluation’ systems, and its deskilling of employees with expert systems.

Now this is not a list cooked up by some lefty curmudgeon whose only pleasure is to critique ‘the system’. It’s simply a reading of mainstream statistical data on labour. Thomas Piketty, of course, wrote a bestseller based on this data, it is there for anyone who reads the newspapers, mainstream economists discuss it frequently, and anyway, we also experience these conditions on a daily basis. True, in some parts of continental Europe things are considerably less bad than elsewhere, but the tendency is a global one: there is a systematic assault on employees’ ability to simply do a good job. If we correlate this development with the equally systematic requirement of employees to provide not just services but great experiences vis-à-vis clients and customers, a blatant contradiction comes into view. Actually, it’s a double contradiction: underwhelming products and services and deteriorating work conditions are supposed to be balanced out by the employees’ emotional labour. Time and again, they try to achieve this Sisyphean task by reaching deep into the magic box of affective human integrity in order to mobilise their emotional and communicative faculties. And if one is particularly unlucky, then one might find that all this affective energy is going into what David Graeber calls “bullshit jobs”, i.e., the growing number of pseudo-professional activities that do not make a sensible contribution to society by any stretch of the imagination. No wonder everyone is yawning. Welcome to the fatigue society!

Exodus into Serendipity?

Given the inhospitality of office environments corporate and public, it is not very surprising that an increasing number of professionals opt out of the institutional context in order to become entrepreneurs on their own account. One form of entrepreneurial exodus, already discussed in Chapter 1, is the so-called coworking movement. When the first proper coworking spaces popped up in San Francisco, New York, Berlin and London in the early years of the new Millennium, they were born out of frustration with the confined office environment and reflected the growth of an increasingly independent workforce trying to turn their economic precarity into a neo-Bohemian entrepreneurialism. Instead of the prefabricated passion of the big organisation, they were trying to get truly passionate about their profession by becoming entrepreneurs.

From the start, serendipity was an important reference for the coworking multitude: coworking spaces needed to provide their users with an environment offering a high probability of serendipitous encounters as a way of compensating for the freelancers’ lack of organisational support structure. The groups and communities spurring the first generation coworking spaces intended to generate imperfect yet more exciting replacements for the conventional organisation. They were supposed to generate ideas and opportunities for business, but also had a political ambition in the sense of strengthening the position of the precarious entrepreneur, vis-à-vis potential clients, through an exchange of knowledge and skills and a general practice of mutual generosity. It is easy, too easy perhaps, to dismiss the alter-entrepreneurial euphoria of the early Millennium as a pale copy of the Californian Ideology that is now holding the start-up scene firmly in its grip. It is certainly true that the West Coast form of expression, with its endemic combination of infantile pathos and cliché, was an early visitor to the coworking community as well. Yet, underneath the silly awesomeness of everything, there was indeed awareness that it wasn’t all fun and games. One of the key concerns of the early coworking movement was to help prevent the multitude of independent producers from sinking into what Byung-Chul Han calls the “solitude” of self-exploiting neoliberal subjects. Here, serendipity, i.e., the accidental sagacity that emerges when people with different minds and skill sets encounter each other, was really part and parcel of the story. It turned these coworking spaces into third spaces that seemed to enable an ambivalent kind of social innovation: one that was necessary for the functioning of neoliberal capitalism but also had the ambition of going beyond it. One of the ‘values’ the early coworkers were passionate about was ‘community’, and back then this meant something more than the marketing catchphrase it has become of late. The coworking movement – or at least a substantial part of it – really thought it was possible to rewrite the rules of the neoliberal economy.

Today, coworking as a politically, culturally and even economically innovative phenomenon is all but history. The formidable spread of flex-work spaces around the globe is driven by motivations radically different from those of the early activists. Coworking has mutated into the massive provision of infrastructure for start-up entrepreneurs, independent professionals and freelancers and as such, it has become big business. Operations, such as the New York based start-up WeWork, are bent on turning the coworking model into a real estate version of the platform business model (see Chapter 6). Its aggressive global expansion is based on an incredible market valuation of US$10 Billion. While the rhetoric of ‘community’ and ‘values’ persists as marketing strategy toward the growing client-base of independent workers and entrepreneurs in need of affordable workspace, its practical articulation has been taken over by professional hosts and community managers. There is, of course, nothing wrong per se with such a professionalisation of coworking. People still need affordable workspace and flex-workspaces tend to provide exactly that. Sure, in the hands of the likes of WeWork, Regus, Liquid Spaces or indeed Marriott, coworking has lost its utopian impetus. However, if this would be all there was to it, one might bemoan it as a lost opportunity for the much-vaunted ‘change’, or simply write it off as the usual course of a fringe phenomenon maturing into business, and losing its more exciting, socially progressive elements along the way.

Yet, something is happening to the coworking movement that is rather unsettling. Driven by the managerial hype around serendipity – i.e., the realisation that in order to fully mobilise the workforce, individual passion needs to be complemented by the generative and, hopefully, innovative effects of social promiscuity – a growing number of smart organisation consultants have discovered coworking as a template upon which they can market their services to corporations as the new generation of change management. Again, nothing would be wrong in trying to inject the treadmill of the office with some of the serendipitous energy one sometimes encounters in coworking spaces. In fact, one would welcome this effort if it was intended as a way of humanising the corporate workspace. However, one of the obvious problems here is that coworking culture – or whatever is left of the libertarian spirit of the early digital bohemians – is very hard to decree into being in a corporate context. What is distressing about the most recent wave of coworking-inspired office reform is that its proponents seem to have something in mind that goes way beyond the superficial change gymnastics highlighted in the work of Losmann and Farocki…