tl;dr: Exploring the concepts of work based on knowledge, not time.

My brother, who is referred to as a “Cloud Storage Zen” leader at Dell, was over the other night. We were talking about the Knowledge Economy.

It was Peter Drucker, I believe, who coined the term more than 50 years ago.

When you read “The Effective Executive,” the emphasis that Drucker puts on “knowledge work” is crystal clear.

But, what exactly is “knowledge work?”

And, perhaps an even bigger question is, how does one thrive in a “Knowledge Economy?”

Characteristics of Knowledge Economy

One of the sad impacts of Covid is that it has increased the gap between those who work in the “Knowledge Economy” and those that work in the “Time Economy.”

In the Knowledge Economy, time is AN input, but not THE input.

Drucker is a maniac about observing where your time goes, how it drifts, and where it could be better applied.

He writes that there are three time-savers which every Effective Executive must fully comprehend:

• the tasks the s/he is doing that need not be done at all.
  
  Literally, if the answer to the question of “what happens if this doesn’t get done?” is “nothing,” then Drucker says you should just stop doing it.
• the tasks that could be better performed by someone else.
  
  This isn’t “delegating,” which Drucker says is simply trying to put your work on someone else. Instead, it’s “whose responsibility is it to get this piece of work done?” Then, hand it over.
• the tasks that waste the time of others.
  
  This is the most insidious, particularly for those in a position of relative power.
  
  One might safeguard how his/her time is used, but when it comes to others, is disrespectful. This might take the form of being late for meetings or, as is often my case, communication that lacks clarity.
  
  Commander’s Intent...so important.

That doesn’t really answer the question, so let’s go back to it.

A knowledge worker is someone who controls how her own time is allocated in order to maximize outcomes.

A knowledge economy is about results (outcomes) and a knowledge worker is given (or takes on) a problem as a first step.

In the second step, the knowledge worker applies her knowledge to the problem.

In the third step, the problem has a solution.

Time in the Industrial Economy

Now, contrast this to the industrial (time) economy.

In that economy, a worker is given a problem (assemble this part of the car, wait on these tables, repair this roof).

The steps are relatively clear. You turn this widget, you take this order, you hit the nail here. If you do that in this prescribed order at this rate in this amount of , the output (car, meal, roof) will be completed. Between Demings and Taylor, this has been effectively mastered.

This serves as the catalyst for automation, since steps are outlined, and thus the Industrial/Time economy is prone to commoditization and lower wages.

In the Knowledge Economy, on the other hand, the potential value that a worker can give to an organization grows at a non-linear rate.

The more knowledge one has (or can gain), the more effective she can apply that knowledge, possibly within shorter and shorter timeframes, to maximize output.

This increases the income and wage gap between the two, as the positive feedback loops accrue.

One day, perhaps, everyone will truly be a knowledge worker. It’s not impossible by any stretch.

The Knowledge Worker Mindset

It just requires a re-thinking of the structure of organizations, management, and the mindset for how outcomes are assessed.

In the meantime, what’s the best place to be?

As my Storage Zen brother said,

“The ideal position to be in a knowledge economy is that at any moment, you are doing something that is important to you, that you enjoy, and that is challenging.”

The good news is that this is indeed possible