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The real reasons you're working so hard...


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A digital spine
There is hope, however, and the promise of at least partial liberation from the tyranny of time constraints. Why? Because the long-term interests of individuals and smart companies are aligned. To compete, successful corporations will have to make it easier and less time-consuming for their employees to collaborate. They will learn how to live with fewer time-sapping meetings and unnecessary feedback loops -- or find themselves outrun by more nimble competitors. The eventual result: less frustration for knowledge workers.

Moves in this direction are already under way as savvy companies analyze their internal social networks and identify bottlenecks. Intel Corp., for example, sees an opportunity in creating technology that lowers the time cost of teamwork. And others, such as Eli Lilly & Co., are providing more corporate support for both internal and external networks. "It's a new mental model for how you run a company," says McKinsey's Bryan. "The winners will be those who can handle more complexity."

At the same time we may see a rise in new forms of Web-based organizations where people can contribute without having their time eaten up by existing hierarchy. Blogs, collaborative online databases [called wikis] and open-source software development all use the Net to handle much of the coordination among people rather than relying on top-down command and control. Such a shift to a digital spine could eventually lessen bureaucratic time burdens on overworked professionals, especially those in such high-cost industries as health care.

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If history is any guide, the stuck-at-work epidemic will turn out to be a transitional phase. Historically, as countries and individuals get richer, they work less. Look at the late 19th century, when the U.S. was still a relatively poor country, with a per capita income about equal to that of China today. Back then the typical male household head had precious little leisure time, perhaps only about 1.8 hours a day, on average, after subtracting time for work, chores, and meals. The average factory worker put in about 60 hours a week, with only one day off. Indeed, the first May Day labor demonstrations, in 1886, were driven by the demand for an eight-hour day.

Over time, as U.S. productivity and incomes rose, work hours dropped and leisure time increased. It was no coincidence that the five-day work week was first introduced in 1926 by Henry Ford, a decade after he pioneered high-efficiency, mass-production methods.

By 1970 the 40-hour workweek was the norm. And, at least until recently, European and Asian countries have followed the same trajectory of declining work hours. Since 1991 average annual work hours have dropped by 11 percent in Japan, 10 percent in France, 6 percent in Germany and Britain, and 5 percent in South Korea. Meanwhile, average monthly work hours in Taiwan are down by 7 percent over the same stretch. Even work hours in China, while still much higher than in the U.S., may be coming down. "Asians are poorer and still working like crazy," says Alberto Alesina, a Harvard University economics professor who has studied international work hours. "But as they get richer, they are taking more leisure."

The one real exception to the rule has been the U.S. Since 1991 the U.S. has grown substantially faster than Europe and Japan. Nevertheless, average annual work hours are down by less than 2 percent, and that includes all the low-skilled workers who are in less demand today.

Interestingly, there are signs that global competition is forcing Europeans to start moving away from their tradition of shorter work hours. The number of Germans working more than 40 hours a week rose sharply last year, to 5.3 million from 4.7 million. Siemens, DaimlerChrysler, Deutsche Bahn, and many smaller companies have been able to increase work hours without corresponding increases in pay. French workers seem to be putting in more hours in the past year or two as well.

European executives are sounding more and more like their American counterparts. "Ten years ago, if I was on a business trip, I'd get to my hotel in the evening, and there might be a message or two from my secretary and a couple of faxes," says Philippe Midy, a Paris-based executive at McDonald's Europe who travels extensively around the Continent dealing with supply and logistics issues. Now there's a deluge. "Sometimes I'm answering e-mails at 2 a.m."

At least at the moment, long hours are part of the price to be paid for faster growth, especially if you work for a multinational. "If you are going to be a participant in economic activity that is part of a globalized market," says Stephen S. Roach, chief economist for Morgan Stanley, "you need to be prepared to stretch beyond 9 to 5."

Companies have been willing to pay big bucks for those longer hours. Over the past 15 to 20 years, people working a 40-hour week received virtually no increase in real pay, according to research by Kuhn and Lozano. Yet employees putting in a 55-hour week saw their real pay rise by 14 percent. The implication: The gains of two decades of growth have mainly gone to ambitious -- or fearful -- Americans who are working longer hours.

But even high pay can't compensate for unrelenting time pressure. Top managers have to realize that encouraging networks and collaboration demands as much attention and resources as supervising and measuring performance in traditional ways. Most companies have built up large human-resources departments, but few have a department of collaboration. "Most managers don't manage social networks effectively," says Babson's Davenport.

At Intel, the drive to reduce the time spent sharing knowledge and collaborating is an outgrowth of efforts to better coordinate far-flung operations that stretch from Israel to India. One idea being pursued by Luke Koons, director for information and knowledge management, is "dynamic profiling" -- technologies that automatically summarize areas on which a researcher or a manager is focusing, based on the subjects of their e-mails and Web searches. Such a regularly updated profile could make it less time-consuming to locate potential collaborators and resources, an especially daunting prospect in a large, innovation-minded company such as Intel. Equally important, dynamic profiling doesn't force individuals to spend hours manually updating their profiles as their focus changes.


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