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Is In-Person or Remote Work Best for Agile Teams?

THOMAS R. LECHLEITER/THE WALL STREET JOURNAL

Welcome back. I’m Carolyn McGourty Supple, a former journalist and business consultant who now heads the Center for Ethical Leadership in Media. I write a monthly column focusing on evidence-based ways to build a better workplace.

Carolyn McGourty Supple

A group of 17 software engineers gathered in Utah in 2001 to reimagine the way software was made. They created a new core set of principles dubbed the “agile software development manifesto,” disrupting software development and the way organizations work forever.

A big part of the agile process is bringing together small, project-focused teams that are colocated and meet frequently, specifically, conveying information “face-to-face.” The six-stage agile process sped up time to market, improved collaboration and created product iteration centered on the customer, leading to a wide circle of adoption across industries.  

However, the pandemic shelter-in-place mandate upended these assumptions. Overnight, agile teams were forced to disperse and work remotely instead. Agile practitioners, true to form, quickly adapted to lockdowns thanks in large part to technology, including videoconferencing, file sharing and audio calling.

As companies that embrace agile begin to come back to the office, the question now is: Can agile accommodate a hybrid workplace?

Yes, says Tsedal Neeley, a professor of business administration at Harvard Business School and author of “Remote Work Revolution: Succeeding from Anywhere” and “The Digital Mindset: What It Really Takes to Thrive in the Age of Data, Algorithms, and AI.”

“It’s important to understand that agile does not require colocation,” she said. “Those were ideals that were advanced 21 years ago, and we have now grown.”

Ms. Neeley, who studied remote work even before the pandemic, examined how agile companies operated during the shutdown. Her research found that agile is possible in remote work environments, and, in fact, may have led to more productivity. For example, informal conversations and ideation can be lost during in-person connections; remote environments necessitate documenting ideas in shared documents.

Some business leaders, however, fear the energy and spark built by teams who worked next to each other are now lost, and work will never be the same. Ms. Neeley says leaders’ concern about culture eroding requires a change in mind-set.

“People are actually holding on to a pre-Covid vision of work, working and culture that just no longer exists,” she said. “The fact that people can be very productive when they’re not in the office has been proven. So it’s not about productivity and performance. It’s about fear of culture eroding if people aren’t showing up.”

At AppFolio Inc., a property-management software provider, it took multiple iterations to set up the right environment for remote work. Initially, the company embraced the shift with gusto but realized quickly that back-to-back video calls were exhausting and that workers benefited from asynchronous alone time to focus and produce.

The engineering team deployed additional objectives and key results (OKRs) to improve communication and provide clear goals and direction, said Matthew Baird, a senior vice president of engineering for AppFolio Property Manager. The leadership team said they leaned into these metrics and data to get a better sense of how their groups were doing, given they couldn’t physically walk the halls to check on progress like they used to.

AppFolio wanted to recreate the serendipity of the office, such as chance encounters in the hallway that lead to new connections or idea-sharing. Eric Hawkins, a vice president of engineering, said they experimented with tools that picked colleagues randomly across the organization for short, one-on-one meetings. The opt-in system worked so well that the team continues to keep that practice to build social networks across the organization.

Importantly, the pandemic created a shift in mind-set about a “shared place.” While pre-Covid, the workplace was a physical space, now teams may consider that place to be digital, such as workplace messaging app Slack, Mr. Hawkins said.  

“As far as physically where the work gets done, it sort of doesn't matter anymore,” Mr. Hawkins said.

“Think of technology as a place, think of the office as one of your many tools, and listen to your teams and your workers, because the gulf between what top leaders want, and what workers want, is not changing.” 

— Tsedal Neeley, a professor at Harvard Business School and author of “Remote Work Revolution” and “Digital Mindset”

As workers began returning to the office last July with voluntary remote and hybrid arrangements, AppFolio revisited its agile approach again.

  • Its teams remain distributed, leaving it up to the leaders of specific business units or groups to meet in-person and when.
  • Daily standups are a fundamental agile practice, and a Zoom meeting is offered to both in-office as well as virtual participants. Some product development teams even leave their Zoom open all day so team members can drop in and out.
  • Leaders are being intentional when the company does convene people together, by designing frequent, voluntary events and experiences that lead to team building and personal connections, and support certain types of work, such as brainstorming. They aim for quarterly convenings for getting teams together in person.

The company cites its flexible policies as a key contributor to employee happiness and retention. In a recent employee engagement survey, 91% of AppFolio employees said it was a great place to work compared with 57% of employees in a typical U.S.-based company.

“The heart of agile is that you learn and adapt, that you respond to change versus following a plan,” said Mr. Hawkins, who works from home two days a week.

Continued Below: Five Tips to Build Remote ‘Agile’ Teams; Hiring Gets Easier for Some Employers Despite Hot Job Market

 
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Research Spotlight: Five Tips to Build Remote ‘Agile’ Teams

PHOTO: GETTY IMAGES

In her book, “Remote Work Revolution: Succeeding from Anywhere,” Tsedal Neeley studied companies to find five common practices that allow remote, agile teams to work together effectively:

  • Prepare for virtual meetings asynchronously, such as brainstorming in shared documents ahead of time.
  • Create opportunities for daily or frequent meetings, providing more structure for “huddles” or “stand-ups” by allotting time for participants to speak.
  • Take the advantages that virtual meetings afford, such as virtual whiteboards, to increase efficiency and focused, asynchronous time for team members.
  • Plan for launches and relaunches as it’s important for teams to set digital norms and communication expectations.
  • Collaborate using digital tools, capturing outputs from virtual meetings that might otherwise have been lost during in-person white-boarding sessions or informal huddles.
58%

Number of employed respondents—equivalent to 92 million people from a cross section of jobs and employment types—who reported having the option to work from home for all or part of the week, according to McKinsey & Co.’s American Opportunity Survey of 25,000 Americans in spring 2022.

 
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Gender Pay Gap Begins Shortly After College Graduation, Data Shows

Podcast: In conversation with Melissa Korn joins and J.R. Whalen. ELIZAVETA GALKINA/ THE WALL STREET JOURNAL

🎧 LISTEN: Data from the Department of Education analyzed by The Wall Street Journal indicates gender disparities in pay begin as early as three years after men and women enter the workforce. WSJ higher-education reporter Melissa Korn joins host J.R. Whalen to discuss why it is happening and in which fields the pay gap is the widest. Listen here.

 

Hiring Gets Easier for Some Employers

Employee retention is improving at some companies including restaurant chain Bloomin’ Brands, parent of Outback Steakhouse. PHOTO: DOUGLAS R. CLIFFORD/TAMPA BAY TIMES/ZUMA PRESS

Some big U.S. companies say hiring is getting easier, at least by a little.

Employers in hospitality, retail, healthcare and other industries hardest hit by worker shortages over the past two years say they are seeing emerging signs that recruiting workers—and getting them to accept jobs when offered—is becoming less of a challenge, even as the overall job market remains tight.

The national hospital chain HCA Healthcare Inc., which struggled to find enough nurses and other workers throughout the pandemic, says hiring is up and turnover is down. At Uber Technologies Inc., more people are signing up to work as drivers or food couriers. Marriott International Inc., meanwhile, says it is seeing steady improvement in its hiring, with wage increases slowing, too.

Corporate leaders say the job market still favors workers over employers and that challenges remain in drawing enough staff. Still, many say the worst of the hurdles appear to be over.

“We are not running around with our hair on fire, if you will, anymore,” Bill Hornbuckle, chief executive of casino operator MGM Resorts International, told investors last week, though he added that it is hard to hire for certain positions such as housekeepers and cooks.

 

What Else We Are Reading

  • Revisiting Agile Teams After an Abrupt Shift to Remote (McKinsey & Co.)
     
  • The Digital Mindset: What It Really Takes to Thrive in the Age of Data, Algorithms, and AI (Harvard Business Review)
     
  • How to Design a Hybrid Workspace (Human Resource Director)
     
  • You’re Back at the Office. Your Annoying Colleagues Are, Too. (WSJ)                                                                                                                               
  • The Right Way to Vent at Work (WSJ)                                                             
  • TikTok Pares Pandemic-Era Perks in Return to Office Push (WSJ)                                 
 

About Us

Chitra Vemuri curated and edited this newsletter.

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