In the new episode of the Schottcast, Boris Ovcak and I speak about the findings of the newly released German Social Collaboration Study 2023. Learn more about the connection between the adoption of the digital workplace, its impact on corporate culture, as well as technological opportunities to promote the employee experience.
I hope you enjoy watching the episode!
Eric Schott: “Hi, everyone, and welcome to the latest episode of the Schottcast. This time around, we’re talking about the 6th German Social Collaboration Study. We traditionally do this study with the University of Darmstadt, Professor Bussmann and his team. And who better to talk to about it than you, Boris? Boris Ovcak, a partner here with us and the driving force behind the transformation of work. Boris, welcome! Thanks for joining us.”
Boris Ovcak: “Thanks for having me, Eric, and thanks for the intro. We initiated the German Social Collaboration Study back in 2014, so it’s been nine years. Looking back, we didn’t have much empirical info back then. Changes in how people communicate were really only being studied in the consumer segment, and I think we’ve really produced some valuable insights over this time. We’ve been able to show that using technology in the digital workplace is worthwhile, that it boosts productivity and has a positive impact on the corporate culture as well. And that brings me to today, when we’re going to be talking about the latest findings.”
Eric Schott: “I can't wait to hear about it. Let’s have a seat on the couch.
I’m glad to be here in this exciting environment. My guest and I share a passion for bicycling, either with state-of-the-art equipment or the vintage bikes we have here in the background. So, thinking about hybrid, well, we’re hearing about it everywhere, it’s all over the media. Have we heard the final word about it? I don’t think so. I think the whole hybrid space – and this is something we just saw in the study as well – it just produced some fresh surprises. The digital workplace just isn’t quite as highly evolved as we might like to think.”
Boris Ovcak: “I think the study offers a nicely nuanced picture. On the one hand, you see that the topic of the digital workplace is a crucial competitive factor, especially now, with skilled workers in short supply, and that companies have realized that. And then on the other hand, simply gaining new knowledge doesn’t necessarily equate to putting it into practice. So, a lot of companies are still in midstream with working on their digital workplace. I think about a third have already completed the process, a third are in progress, and the other third are just in the planning stages. So, from that, you can really see that it can take some time to go from realizing you need something to putting it into action on the ground.”
Eric Schott: “I think the study offers a nicely nuanced picture. On the one hand, you see that the topic of the digital workplace is a crucial competitive factor, especially now, with skilled workers in short supply, and that companies have realized that. And then on the other hand, simply gaining new knowledge doesn’t necessarily equate to putting it into practice. So, a lot of companies are still in midstream with working on their digital workplace. I think about a third have already completed the process, a third are in progress, and the other third are just in the planning stages. So, from that, you can really see that it can take some time to go from realizing you need something to putting it into action on the ground.”
Boris Ovcak: “Definitely. I also think it gives us a good window on how things have evolved over the past two or three years. Two or three years back, in the early stage of the pandemic, it was really all about making sure people could work together in teams, and that remote work would be feasible in what was then the new normal. These days, people are taking a bit of a broader view. So, how do we support an employee from day one, right when that person first walks in? And once they’re on the job, how do they understand the goals and thinking behind what they do? How do we tie it all together, and how do we give that person ways to grow? So, people are really thinking much more broadly about the employee experience and the digital workplace.”
Eric Schott: “Right, and that brings me to a second point, which is something we’ve been looking at for a while now, and that’s corporate culture. When I hear people talk about the workplace and corporate culture, I always think, sure, let’s design a new space, maybe bring in a foosball table or make the workplace more physically attractive in some way. But I actually think the potential doesn’t lie so much in the physical realm, but in the digital one, and that’s something the study showed again, too, and very noticeably."
Boris Ovcak: “I think that’s really exciting. A lot is being projected onto managers, of course. What do they act like, how do they communicate, how transparent are they in what they do? And the digital workplace offers tremendous potential to support those aspects. On the other hand, of course, the corporate culture is also necessary. And I think the study also highlights those contexts really well.”
Eric Schott: “One thing we are always hearing a lot about is how people work together. And by that, we mean more than just within one department or team. We mean across different locations and even internationally. The digital workplace really accelerates communication under those circumstances, I think. And I have the sense – and you’re more involved with this aspect than I am – but I have the sense that the various technologies provide a very different basis for that as well.”
Boris Ovcak: “Yes, definitely. Just thinking about the ways that the digital workplace is evolving, we can also see that from the technology platforms. Take our partner Microsoft, for example. They’ve supplied different modules to support all those additional scenarios through the Viva platform.”
Eric Schott: “It’s all really exciting to think about. Take management by OKRs, for example, which is a hot topic these days. We have the tools to do it now, so there’s no longer any excuse not to. How do they work?”
Boris Ovcak: “Oh, definitely! So, we’re seeing that methods are translating more and more into technologies. You just brought up OKRs, and the Viva Goals module, which aligns with those. We see it in knowledge management, with Viva Topics. We can really see how HR aspects get absorbed a bit into the platform. In the end, it’s important to understand that we need the technology, we need the method, but we also need the corporate culture to really internalize it properly within the company.”
Eric Schott: “One thing that’s really important to me is the frontline workers, by which I mean employees who don’t have their own office or computer, or anything like that. They might work in logistics, service, or care, for example. And their experience, the employee experience, is also very important, of course. What does the study say about them?”
Boris Ovcak: “On the one hand, we do see that everyone has realized that the shortage of skilled workers also applies to frontline workers. That’s an important point, I think. On the other hand, we also see that companies are way behind on integrating frontline workers in these aspects as compared to information workers. And it might be that people sort of got out on the wrong track a bit, that their efforts were concentrated on using process digitalization to boost efficiency. These days, thinking about the employee experience, I think people are seeing that it’s more about bringing frontline workers into our communications, too. Just forging closer ties between them and the company is a part of it, too. And the positive impact we see with information workers is also possible with frontline workers.”
Eric Schott: “You’re saying we were focused a little too narrowly on office workers. That might have been an obvious place to concentrate in the past, too, but especially when we’re talking about employee experience, then it’s important for people who don’t have their own computer workstation, who don’t work in the office, to still feel that they are a part of a team, to get that sense of cohesion. And as you and I both know, cohesion has a lot to do with information, with being informed. I think the study highlights a good path there.”
Boris Ovcak: “Basically, we’re talking about the same things as with information workers. We want to have managers who communicate transparently, who are reachable, and that means digitally as well. And frontline workers want just as much to be included in the general information process and know what’s going on at their company."
Eric Schott: “I think that’s really important, the mindset shift, if you will. Moving away from just saying, we have the shift schedule, and we’ll communicate that, or what the new accounting rules are, and toward telling people, here, this is a major topic right now at headquarters, say. Or how will the new corporate strategy affect me personally? And those things, which might not have much to do with day-to-day operations, but they are crucial to that everyday sense of well-being.”
Boris Ovcak: “We’ve been hearing a lot about artificial intelligence, or AI, especially since last November, when ChatGPT was launched. Eric, I know you're always looking down the road to how innovation will affect things like how we work together in the future. What are your thoughts there?”
Eric Schott: “I don’t think this is going to be a Big Bang type of event. I don’t think AI is going to radically reshape our day-to-day work all at once. What I do think is exciting, and where I think we should drill down in consulting, is the ways that AI is going to creep into our daily work, bit by bit. We’re going to see some slight change somewhere practically every day, and we might see AI taking over some tasks. And we need to be ready for that. How are we going to deal with this? Which parts of the change do we really want to accept? Do we even notice these little changes at all? I think that’s where we have the most leverage.”
Boris Ovcak: “Talking about the creeping absorption of AI into day-to-day work, I think it was in 2018 when the innovations that are now available were unveiled to some extent at the Microsoft Ignite event. I always think it’s really exciting to see how things translate from theory into use cases, moving away from the technology in general and toward what we can do with it concretely. What use cases spring to mind for you right now?”
Eric Schott: “Well, we do work a lot with Teams. Teams is a key element of the digital workplace at many companies. And I’m not always very punctual. So, say I join a Teams meeting a little late and I get a quick synopsis – What happened in the first ten minutes? – then I don’t have to ask. The system sees that I’m ten minutes late, there he goes again, Schott’s always late – but then I get that synopsis. There might have already been decisions on a couple of points. Or maybe there are tasks for me to handle, and I see them displayed right in the prompt. So that’s one thing I’m really looking forward to, for example.”
Boris Ovcak: “It’s the little things that will have a big impact. One of the exciting topics for me is how to isolate the task list right from the meeting minutes? These days, you typically still need people to do that for you. AI might be able to handle it very soon.”
Eric Schott: “One thing that’s really exciting is that AI is just a technology like any other, and so we should think about where to use it. But that’s nothing new for us.”
Boris Ovcak: “That’s right, it’s the same recipes, if you will. I think it’s a good idea to think about the reason first, the why, and then define the use cases a bit. In the end, enablement is a big part of it, too, of course, so people understand how they can work with it. And not all of us are very agile when it comes to change, so change always comes with a bit of anxiety. Allaying people’s concerns is a key part of it, I think. These are the same aspects that have been a part of the discussion about the digital workplace from five, eight years back. It’s just a new leap forward in technology these days.”
Eric Schott: “Right. That puts me in mind of the Swiss study on the digital workplace of the future, which had some very interesting findings. Companies there have already gotten 10% farther. They’ve made more progress and concluded more of their digital workplace projects. There are certain industries, like process or pharmaceutical companies, that are far ahead, they might be two-thirds of the way through with their digital workplace. I just have the sense that many Swiss companies are a little more open to innovation than their neighbors. Does that fit with your observations? Where can one shape innovation?”
Boris Ovcak: “The study already shows that Swiss companies are a year or two farther along in their journey than German ones, and that means, of course, that they can address more innovative topics and innovative technologies earlier than might be the case here in Germany.”
Eric Schott: “Well, and that’s all we have time for today. That was quick! This has been the current episode of the Schottcast. We talked about digital work of the future. We discussed the results of the 6th German Social Collaboration Study, and Boris, many, many thanks for being here.”
Boris Ovcak: “Thanks for having me. This was a lot of fun.”
