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5 Levels of

a Digital Workplace

A guide for your digital workplace journey

When organizations sent people home during the COVID-19 crisis, many assumed we entered the future of work.
Not really.
What happened was workplaces used digital tools to lift off from the ground and went into a holding pattern, hovering around until it was safe to land again.
But some leaders recognized that going back down wasn’t the only option. You can fly higher. A lot higher.
A digital workplace is an organization that upgrades its core work systems to take advantage of new digital tools.
It starts a journey upward that doesn’t have a clear end or signposts along the way.
But similar to the layers of the atmosphere, there are some clear signs to let you know when you’ve hit a new level. Automattic CEO Matt Mullenweg’s article about the 5 levels of autonomy for distributed work forms the basis for this idea.

Five levels, five systems

These levels of a digital workplace are a guide to help you know what’s coming next. As you transition from one to the next, you open up new possibilities and remove barriers towards a better future of work.
At each level, the core systems of your organization change. Here are the five core systems:

Each of these systems looks drastically different as it moves up from Level 1 to Level 5. Let’s look at each of them in more detail.

Level 1

The office is the nucleus

This workplace is firmly on the ground. It is a physical office that uses some digital tools to augment work. In a pinch, you can work from home for a day or two, but everything is office-centric. The office dominates and dictates all the systems. HQ is the sun around which everything orbits.

The difference between a team member’s experience outside and inside the office is striking. Those outside feel left out and are an afterthought.

Level 1 Technology

Everyone is given some basic digital tools, but they are considered a necessary add-on to deal with the outside world. No one assumes they impact the way you work.

Level 1 Productivity

Doing a good job means being present. As long as you are in the office, you are working. Recognition and rewards are given to activity and buzz.

Level 1 Collaboration

Meetings and conversations are primarily in person or through email. Hardly anything is documented and there are no standard rules for how to communicate.

Level 1 Culture

There are many unspoken rules around the office, but you can only learn them by making mistakes. It is a stressful, uncertain environment.

Level 1 Leadership

Managers exist to make sure people are doing their work. If people aren’t watched carefully, they can’t be trusted to do their work.

Level 1

The office is the nucleus

This workplace is firmly on the ground. It is a physical office that uses some digital tools to augment work. In a pinch, you can work from home for a day or two, but everything is office-centric. The office dominates and dictates all the systems. HQ is the sun around which everything orbits.

The difference between a team member’s experience outside and inside the office is striking. Those outside feel left out and are an afterthought.

Level 2

Replicate the physical in the digital

This was week 2 of the COVID-19 experiment for most companies. It’s the holding pattern, just off the ground. In-person meetings become Zoom meetings. Presenteeism becomes surveillance management.

At this level, a digital workplace seems hard. It’s hard to convert everything you did in the office to digital tools. Building culture seems hard. Following up on your reportees feels hard. Hours of video calls feel hard.

This level is the worst. Either you will do everything you can to get back to level 1, or you will take the leap up.

Level 2 Technology

Work life shifts between a messaging platform and video calls. Organizations either adopt the cheapest tools available, or overspend on applications that don’t deliver.

Level 2 Productivity

There are multiple status meetings throughout the day to help managers track activity and progress, but tasks are strewn about multiple applications.

Level 2 Collaboration

Collaboration is dominated by urgent, synchronous communication. Quick responses are rewarded. Communication sits in giant heaps across many applications.

Level 2 Culture

Stress is increased as typical culture builders aren’t happening any more. Efforts to create digital ‘watercooler conversations’ fail miserably.

Level 2 Leadership

Managers are stressed by trying to prove that work is still happening. They feel they are working against the digital tools and forcing things into completion.

Level 2

Replicate the physical in the digital

This was week 2 of the COVID-19 experiment for most companies. It’s the holding pattern, just off the ground. In-person meetings become Zoom meetings. Presenteeism becomes surveillance management.

At this level, a digital workplace seems hard. It’s hard to convert everything you did in the office to digital tools. Building culture seems hard. Following up on your reportees feels hard. Hours of video calls feel hard.

This level is the worst. Either you will do everything you can to get back to level 1, or you will take the leap up.

Level 3

See native advantages of digital

This is the first time you start to realize that digital offers some distinct opportunities. It might start with enjoying less of a commute. Or less time in airports.

Or you may realize that you can cancel a few meetings and just send in updates on text for people to read when they want.

This phase is usually a mix of good and bad. There’s a lot that you still need to figure out about, but the benefits start to suggest that it might be worth it.

Level 3 Technology

Teams are using cloud-based software for collaboration, and you are moving more operations to digital spaces. You automate your first processes.

Level 3 Productivity

Leaders see the futility of relying on activity and progress starts to be linked to goals. People openly talk about their time management plans.

Level 3 Collaboration

Conversations consolidate in one place and are more organized. There is more freedom for asynchronous collaboration and fewer meetings.

Level 3 Culture

People talk about “who we want to be” and identify some core values that are present whether in office or virtual.

Level 3 Leadership

Managers ease up on task check-ins and start asking about overall wellbeing. They spend more time making systems and processes than fighting fires.

Level 3

See native advantages of digital

This is the first time you start to realize that digital offers some distinct opportunities. It might start with enjoying less of a commute. Or less time in airports.

Or you may realize that you can cancel a few meetings and just send in updates on text for people to read when they want.

This phase is usually a mix of good and bad. There’s a lot that you still need to figure out about, but the benefits start to suggest that it might be worth it.

Level 4

Rebuild systems on new values

At this stage, you are fully committed to a digital workplace, but you realize that all of your core systems need to be rebuilt.

Common values that emerge in this level are: intentionality, giving agency to workers, being human-centric, and a high value on time/attention.

These values fundamentally change the way you look at the core work systems and you make some big changes.

Level 4 Technology

Work starts to consolidate around a technological nucleus. Everyone uses the same collaboration, project, and process tools. Data is captured and analyzed.

Level 4 Productivity

All work starts to fit into shared objectives. Metrics and benchmarks are meaningful and achievable. Most of people’s time is free to work how they need to.

Level 4 Collaboration

Collaboration defaults to asynchronous. Meetings are fewer, but much more meaningful. Durable information is pulled out of chat and stored where everyone can find it.

Level 4 Culture

There is a strong sense of culture and people call out behaviors that aren’t in line. Decisions are more transparent, and learning is a priority.

Level 4 Leadership

Managers have become coaches. They make sure humans are taken care of, remove roadblocks, and improve systems. Authority is more distributed.

Level 4

Rebuild systems on new values

At this stage, you are fully committed to a digital workplace, but you realize that all of your core systems need to be rebuilt.

Common values that emerge in this level are: intentionality, giving agency to workers, being human-centric, and a high value on time/attention.

These values fundamentally change the way you look at the core work systems and you make some big changes.

Level 5

Explore new worlds

At Level 5, your workplace has escaped the atmosphere and is doing a lot of experimentation. The core systems are strong enough that you can try out new ideas without a fear of breaking anything.

A Level 5 workplace asks deep questions about its purpose and responds to most ideas with a “why not?” attitude. You start to imagine and create a world where the best of humanity and technology can come together to make a better future of work.

Level 5 Technology

Organizations embrace automation and AI and transfer large amounts of work to systems. Technology is used to augment the skills of humans.

Level 5 Productivity

The entire organization is highly aligned on objectives. Individuals spend most of the day in a flow state. New projects aligned with objectives are welcomed.

Level 5 Collaboration

Everything is easy to find, but not overwhelming. Meetings maximize discussion time and human connection. Everyone assumes positive intent.

Level 5 Culture

Culture in practice and in words are the same. Decisions are consistent and transparent. Unaligned behaviors are regularly called out.

Level 5 Leadership

Leaders implement ideas based on how humans work best. They work in sync with technology and confidently lead teams into the unknown.

Level 5

Explore new worlds

At Level 5, your workplace has escaped the atmosphere and is doing a lot of experimentation. The core systems are strong enough that you can try out new ideas without a fear of breaking anything.

A Level 5 workplace asks deep questions about its purpose and responds to most ideas with a “why not?” attitude. You start to imagine and create a world where the best of humanity and technology can come together to make a better future of work.

What we need now

Most companies right now are at a Level 2, trying to decide if they are going to move to 3 or back to 1. If you are a functioning Level 3 company, you are well above average.

However, the best future of work lies in getting as many workplaces as possible to Level 4. We need thousands of organizations who are rebuilding their systems with values that will lead us into the future.

Then, we need hundreds of companies to push the boundaries and experiment with Level 5. We need to know what is possible and how to not all make the same mistakes.

Wherever you are, whatever kind of leader you are, we need to move forward.

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