Has the economic clock started to run backwards?, Tim Harford asks:
As Philip Coggan writes in his epic history, More: The 10,000 Year Rise of the World Economy, Smith’s 1776 book was not the first to note the productivity gains that resulted from specialisation. Xenophon was making similar remarks in 370 BCE.
But why does the division of labour improve productivity? Smith pointed to three advantages: workers perfected specific skills; they avoided the delay and distraction of switching from one task to another; and they would use or even invent specialised equipment.
The modern knowledge worker fits uneasily into this picture. Most of us don’t use specialised equipment: we use computers capable of doing anything from accountancy and instant messaging to filming and editing video. And while some office jobs have a clear production flow, many do not: they are a watercolour blur of one activity bleeding into another.
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In 1992 the economist Peter Sassone published a study of workflow in large US corporate offices. He found that the more senior a person was, the more likely they were to do a bit of everything. Administrative assistants did not do management, but managers did do administration. Sassone called this “the law of diminishing specialisation”.
This law of diminishing specialisation is surely stronger today. Computers have made it easier to create and circulate written messages, to book travel, to design web pages. Instead of increasing productivity, these tools tempt highly skilled, highly paid people to noodle around making bad slides.
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Cal Newport’s new book, A World Without Email, is searing on this point. Examining scientific management studies from the early 20th century, Newport makes the case that manufacturers analysed and fixed their aimless processes a century ago. The gains were dramatic. For example: at the Pullman factory complex near Chicago, people from various departments would wander into the brass works and pester the metalworkers until they got what they needed. After a systematic overhaul, many clerks were hired as gatekeepers and to plan and schedule work. Productivity soared.
Newport argues that knowledge work is long overdue a similar rethink. How often is office work assigned and prioritised by random pestering? Certain disciplines, including producing a daily newspaper, have developed a clear workflow that doesn’t depend on long email chains. A lot of knowledge work, however, is still in the “wander in and pester” stage.