The Collaborative Economy

When we analysed our survey data and our Age was not a distinguishing factor in terms
case study businesses, we were expecting to of how much people were collaborating.
identify collaboration ‘hot spots’ – industries We expected to see a downward trend in
and occupations with high levels of collaborative collaboration, with young people being the most
activities. We expected that traditional areas of active and a progressive decrease in collaboration
business, or processed-based occupations to have as people get older. However, our research shows
low level of collaboration. that the collaboration activities are fairly consistent
across age groups, between 9.5% and 13.8%.
However, we found the opposite – collaboration People aged between 40 to 44 and 65+ were
is an activity that is widely spread across industries among the most collaborative workers.
and occupations. It forced us to think more
broadly about how collaboration can be beneficial
in a much wider set of circumstances.

As shown in Figure 5.1, we found that
collaboration exists in parallel across all sectors
of economy, among different professions, and
between genders and age groups.

We found only a small gap in collaboration
levels between the genders, with women slightly
outscoring men. This contrasts with previous
research, such as a 2012 paper by Danish
consultancy, Innovisor, which found a large gap
between women and men’s collaboration desires.

The Collaborative Economy 46

5.2 Collaboration over time Customer and market pressure were among the
factors respondents believed were driving the
We found that over 36% of people said that their increase in collaboration levels. Indeed, Australian
organisation had become more collaborative in businesses continue to operate in an increasingly
the last 3 years versus 6% said that it had declined. competitive market. Firms are therefore forced to
Figure 5.2 shows that respondent believes the adopt a more collaborative and efficient approach
top three drivers of this change were changes to the way they do business, challenging their
in workplace culture or management structure, workplace culture and processes.
people and technology available.

Figure 5.2: Top drivers of collaboration activity (% of responses)

Source: Deloitte Access Economics, Stancombe Research and Planning 2014

47

5.3 Collaboration tools In this research, we asked respondents to
identify the key technology and workplace tools
Advances in information and communications or features that enabled them to collaborate
technologies have enabled businesses to become more effectively. Among the top factors, shared
truly collaborative. Technologies have transformed electronic resources, common areas and meeting
the way that firms operate. The ability to rooms were the most influential. We will return to
communicate information almost instantaneously this result in the following chapter when we look
and interact iteratively have allowed critical at ways in which firms can increase the level and
improvements in virtually all aspects of work and effectiveness of collaboration over time.
business operations.

An indirect impact of technology is that it is leading
to fundamental changes in where, how and when
today’s knowledge workers perform their jobs.
The confluence of these forces is resulting in new
performance drivers for today’s workplace and a
series of new and exciting questions about what
the workplace is – and more importantly what it
should be.

Figure 5.3: What enables collaboration? (% of responses)

Source: Deloitte Access Economics, Stancombe Research and Planning 2014
The Collaborative Economy 48

6

Collaboration strategy

The Collaborative Economy 50

6 Collaboration stategy

So far we have analysed what
collaboration is, recent trends and
its benefits for businesses and the
economy. But it leaves us with
a question: How can businesses
change their strategies to increase
collaboration or do it more
effectively?

It’s a relevant question for all Australian Figure 6.1 Half the businesses in Australia do
businesses. It matters for the 51% of businesses not have a strategy for collaboration
that either have no collaboration strategy, or
are unsure if they do. It matters for the 25% of 25% 26%
businesses who have a collaboration strategy
of middling importance. Even for the 24% 25%
of businesses that have a strategy and take 24%
it seriously, there will still be opportunities to
improve the effectiveness of collaboration, No Strategy
so workplaces can be more productive and Don’t know
innovative. Collaboration is important part of strategy
Collaboration is of middling/ least important strategy
We begin by defining collaboration strategies Source: Deloitte Access Economics,
and the levers businesses can pull to increase Stancombe Research and Planning 2014
collaboration. We identify which levers are the
most important and why. Then we analyse the
barriers to increased collaboration and step
out ways in which businesses can reshape their
strategy to drive more collaboration.

51

6.1 Collaboration strategy – what is it Across these three levers, the extent to which
and where are Australian businesses? there is strategic focus on collaboration within a
firm can be measured by assessing performance in
Workplace collaboration is important, but how relation to 21 indicators – seven related to culture
can we measure whether firms are collaborative or and governance, six related to workplace design
not? This section assesses collaboration strategies and eight related to technology. These are listed in
in terms of three levers and 21 indicators, and Figure 6.2 below
provides benchmarks for the progress of firms in
Australia.

What is a collaboration strategy? Workspace
A review of literature on workplace collaboration Design
and analysis of Australian firms suggests businesses
can place a strategic focus on collaboration Culture &
in three main ways – culture and governance, Governance
workplace design and technology. These are the
three overarching ‘levers’ available to businesses Technology
to influence the extent to which effective
collaboration occurs in the day to day activities of
their employees.

Figure 6.2: The three levers of collaboration strategies

Culture and governance Workplace design Technology
Telephones
Social interactions Break-out space Email
Empowering the individual Kitchen Smartphones
Incentives and rewards Meeting rooms Video conference
Diversity Small offices Social media
Collaboration strategy Outdoor areas Tablet and laptop
Intensity of interactions Other common areas Network policy
Workplace hierarchy Electronic document
management systems
Source: Deloitte Access Economics,Stancombe Research and Planning
The Collaborative Economy 52

Using the results of the survey, an index for the Culture and governance
performance of Australian firms in relation to each Businesses can influence the opportunities for
of these indicators has been developed. A higher collaboration among their employees through
score reflects greater support for collaboration development of a supportive firm culture and
in the workplace. The average scores for each governance structure. The extent to which business
indicator provide a benchmark against which culture and governance fosters collaboration can
businesses can assess their strategic focus on be measured according to the following seven
collaboration, relative to other firms. indicators:

Overall, the benchmark for firms in • Social interactions: the frequency of social
Australia across all three levers of interactions between colleagues;
collaboration is a score of 42.7 out of
100. • Empowering the individual: the value placed
on the opinions of individual employees;
Firms that achieve a higher score can be
recognised as above average performers, • Incentives and rewards: the importance of
while those that achieve a lower score are collaboration in performance, remuneration and
below average, with strong opportunities for promotion criteria;
improvement.
• Diversity of workplace: whether collaboration
The elements that make up this benchmark score tends to occur among employees with common
are described in turn below. or different roles and responsibilities;

• Collaboration strategy: whether collaboration
forms part of the firms’ HR or business strategy,
and how much importance is placed on it within
the strategy;

• Intensity of interactions: the number of
different people that employees tend to
collaborate with; and

• Workplace hierarchy: whether the
management structure is hierarchical or flat.

53

We calculate an Australian wide benchmark score
based on the average responses in our survey. As
shown in Figure 6.3, the benchmark scores for
these indicators range between 43.4 for workplace
hierarchy, to 65.3 for social interactions. The overall
benchmark for culture and governance is 54.3 out
of 100.

Figure 6.3: Culture and governance indicator benchmarks

Index

100.0

90.0

80.0

70.0 65.3 65.8

60.0 55.5 53.7 52.2

50.0 Collaboration 47.3 54.3
strategy 43.4
40.0 Intensity of
interactions Workplace
30.0 hierarchy

20.0

10.0

0.0

Social Empowering the Incentives and Diversitiy of
workplace
interactions individual reward

The Collaborative Economy 54

Technology The benchmark scores illustrated in Figure 6.4
The second lever available to businesses to below take into account two aspects of the
encourage workplace collaboration relates to making availability of technology for collaboration – first,
available, and encouraging the use of facilitating whether the technology is available, and second,
technology. The eight indicators associated with how frequently the technology is used.
this lever encompass the range of options that
can be used in collaborative activities – from the Overall, the benchmark for technology as part of a
traditional desk phone and email, to internal social business’ collaboration strategy is 35.5 out of 100.
media networks and real time electronic document
management systems that allow multiple users to
make changes to a file simultaneously.

Figure 6.4: Technology indicator benchmarks

Index 69.9 68.4
100.0
48.8 37.1
90.0 14.0
80.0 33.5 30.4
70.0
60.0 16.6 15.5
50.0
40.0
30.0
20.0
10.0

0.0

Phone calls Email Network policy Smartphone EDMS Video Social media Tablet and

conferencing laptop

55

Workplace design As illustrated in Figure 6.5 below, meeting rooms are
The other main way in which firms can encourage the most common area made available by firms for
workplace collaboration is through workplace collaborative activities, while break out spaces are a
design. This captures the extent to which different less prevalent feature of workplace design.
physical spaces are made available to employees to
undertake collaborative activities. Overall, firms in Australia score 38.2 out of 100, on
average in relation to this collaboration strategy lever.

Figure 6.5: Workplace design indicator benchmarks

Index 52.3
100.0
48.4
90.0
80.0 42.6
70.0
60.0 32.4 31.6 38.2
50.0
40.0 22.1
30.0
20.0
10.0

0.0

Small offices Kitchen Outdoor area Break-out Other common Meeting room

space areas

The Collaborative Economy 56

Xero: A collaboration culture

Xero is a software company that that offers Workspace design facilitates open communication
a range of cloud based financial platforms to and a flat hierarchical structure. For example, no
businesses. Founded in 2006, Xero is now one of one at Xero has their own office; all employees
the top 20 companies on the New Zealand Stock share an open plan environment where they can
Exchange and is widely recognised as one of the easily communicate with one another. This is
most innovative businesses in the world. particularly important in sales, where employees
are constantly informed and updated through
According to Chris Ridd, the Managing Director conversations in their vicinity. In situations where
of Xero in Australia, collaboration is encouraged the work demands a more private environment,
through flat management, open communication, employees can sit elsewhere. There’s also an
and transparency with senior leaders regularly abundance of chat rooms and quiet workspaces
sharing information with employees and being available.
approachable: “Collaboration culture can’t be
manufactured or forced…it’s not about what is Incentives are also important – by issuing equity
written in a document, it’s everywhere at Xero.” employees have more ‘buy in’ and benefit when
Social interaction between employees encourages the whole company benefits, not just when they
collaboration. A self-organised ‘good-times crew’ meet individual targets.
coordinates a range of corporate events and
functions including Friday day night music jams.
Also, employees are discouraged from eating
lunch at their desks, instead, everyone gathers in
the kitchen at lunch time.

57

6.2 The link between strategy, activity In terms of culture and governance, recognition
and benefits of collaboration within staff performance,
remuneration and promotion criteria is the
Recognising the importance of collaboration in a strongest driver of collaboration activities. The
business strategy is a critical step for firms that want correlation coefficient of 0.19 means that for every
to take advantage of the benefits of a collaborative 1% increase the human resources lever, there
workplace. The previous section demonstrates that was around a 0.2% increase collaborative activity.
this can be pursued in a number of ways - outlining Unsurprisingly, aligning individual incentives to
21 indicators of the strength of a collaboration collaborate with those of the firm is key to driving
strategy. employee engagement.

However, business leaders will appreciate that there Furthermore, firms that place a high importance on
is a difference between delivery of a strategy and collaboration as part of their business strategy are
the follow up activities undertaken by employees also correlated with higher collaboration in action
on the ground. Therefore, to ensure that strategies (0.15).
are appropriately targeted, it is useful to consider
the strength of the links between strategic elements Workplace design is also important. Most
and actual collaborative activities. significantly, collaborative activities have a strong
positive association with the availability of meeting
We find that technology in the workplace is the rooms, small offices and common outdoor
strongest driver of collaborative activities. Of the areas, with correlations of 0.17, 0.12 and 0.10
types of technology considered, the availability respectively.
of video conferencing systems and electronic
document management systems have the strongest We observe that the correlations identified in this
association with collaboration in the workplace, report are not massive, at least not individually. Any
each with correlations of around 0.16 with one lever is not enough to unlock collaborative
collaborative activities. activity. However, we believe that used together,
they can be very effective.

Figure 6.6: Links between strategy and collaborative activity

The Collaborative Economy 58

6.3 Barriers analysis culture and governance, including overall culture
(22.7%), management structure (21.5%), individual
Efforts to promoting a collaborative workplace resistance (20.5%) and lack of interest (19%).
should also respond to the common barriers to
collaboration identified by employees. These are Meanwhile, lack of technology (11.1%) and the
highlighted in Figure 6.7 below. physical layout of the workplace (14.0%) are less
likely to be identified as barriers to collaboration.
The biggest barrier to collaboration is lack of This supports the findings of the Connected
time, identified by over 30% of respondents. Workplace study.
This is followed by a number of issues related to

Figure 6.7: Barriers to collaboration

%
30.5%

35

30 22.7%
21.5%
20.5%

25 19.3%

20 16.1%

14.0% 13.4% 12.3%
15 11.1%

10 7.5%

5 2.3%

0

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This found that traditional human resource issues, Interestingly, almost one fifth of respondents did
like workplace culture and management structures, not identify any barriers to collaborating, and less
were the biggest barriers to employee collaboration than 10% of respondents reported that they did not
(32% and 28% of employees respectively). see the value of collaboration. This suggests that
Furthermore, satisfied employees had higher willingness to participate in workplace collaboration
reported levels of collaboration, collaborating 28% is reasonably high, a promising outlook for
of the working week with colleagues, compared to businesses in Australia.
12% of the working week for employees that were
not satisfied with their current employer.

59

Kogan.com: collaboration is how we deliver products fast and at a low price

Kogan.com is an Australian online retailer of Kogan’s business model is about identifying areas
consumer electronics. The company, founded in of high demand, delivering the product at the
2006, delivers products to customers in a number lower price point, and having the shortest possible
of countries. The company has several hundreds of time to market. Collaboration across marketing, the
millions of dollars a year in revenue. product team, finance and operations, warehousing
and logistics, is critical to creating and delivering
According to founder Ruslan Kogan, “collaboration the products to the doors of shoppers as fast as
was key to maintaining quality control as Kogan possible.
expands”. Collaborative software such as Google
Docs, allows employees to document their working Kogan believed that smaller firms tend to be
process, facilitating quality control by more more agile and more collaborative as established
senior employees as well as providing learning players are often weighed down by build-up of
opportunities for new hires. Such technologies can bureaucracy overtime and don’t have a culture of
also help break down barriers of communication driving collaboration. “Technology is our culture,”
across offices and geographical locations as the says Kogan, who has entrenched collaboration in
firm expands. the company’s HR strategy – with recruitment and
promotion decisions based on collaboration criteria.

The Collaborative Economy 60

6.4 Next steps We close out this report with a discussion of the
key next steps. We identify five practical steps
We have identified a range of economic and for business to improve the level of collaboration
business benefits of collaboration. We know that between and amongst employees and managers,
it can lift productivity, innovation and employee as presented in Figure 6.4 below. Following these
engagement, and help businesses achieve their key steps will enable firms to systematically address
growth and profit aspirations. And yet, we have also the barriers to collaboration. They include strategic
found a lack of strategic focus on collaboration in focus, technology and tools, getting employees to
the majority of businesses. Many employees believe communicate more and have stronger relationships,
collaboration is below the optimal levels. changing culture with the right incentives,
supporting transformation, increasing collaboration
With all these findings, it begs the questions: effectiveness, and monitoring and consistently
how can businesses overcome the barriers to collaborating over time.
collaboration? What are the key next steps Australian
business leaders can take to make their organisations
more collaborative and unlock these benefits?

Figure 6.4: Next steps for Australian businesses

05

Make collaboration Invest in the right Changing culture A tailored Ensuring effective
a strategic technology with the right implementation collaboration
business focus and tools for incentives
collaboration

61

Step 1: Make collaboration a strategic the right technology and tools. Without these,
business focus employees and managers simply do not have the
means to collaborate. Technology and tools are the
Leadership from the top is clearly very important. supporting infrastructure for sound collaboration
This report demonstrates clear links between strategies. Whether it’s being able to access video
collaboration strategy and it being taken seriously conferencing facilities, or having real time electronic
with a wide range of business metrics including document management systems, technology
profit, growth and innovation. Collaboration and tools are strongly correlated with more
cannot be strategic and important without senior collaborative activity.
leadership ‘buy-in’.
We recognise that smart investments by firms
This analysis finds that 51% of firms are either in discretionary items like social media tools or
unsure, or know for sure that collaboration is new office designs are likely to have an important
not recognised in their HR or business strategy. signalling effect to staff that senior leadership take
Furthermore, an additional 25% of firms recognise collaboration seriously and are willing to make an
collaboration in their corporate strategy, but do not investment. It also makes collaboration new and
regard it as an important component. fun rather than just a change in work practices.

Accordingly, around 75% of businesses in It is also important to note that technology often
Australia still face the first challenge in achieving acts as an enabler to other levers of collaboration.
a collaborative workplace. Without the emphasis For culture and governance, technology provides an
of the importance of collaboration from business opportunity to connect employees and information.
leaders, employees cannot be expected to It can help break down communication barriers
participate in collaborative activities, and benefits arising from geography and function and can also
for firms will remain unrealised. be used to improve social interactions through
social networks. For workspace, technology enables
Around 75% of businesses in Australia a new spectrum of work options including telework
still face the first challenge in achieving and real time editing.
a collaborative workplace
The optimal mix of tools will vary from business
Taking this step will also help overcome two of to business, depending on the nature of
the top three barriers to collaboration – workplace employee outputs, location, and other features
culture and management structure, which of organisation structure. Here, efforts should
were each cited by over 20% of employees as concentrate on identifying technologies and
collaboration barriers. features of workplace design that will be most
effective in enabling collaboration activities, making
This step, it either requires either staff or them available, and promoting use by employees.
managers to convince leaders of the importance
of collaboration, or more ideally, for leaders We also note that changes in the digital industry
themselves to drive change. mean that technology solutions for collaboration
have never been more accessible or affordable,
Step 2: Invest in the right technology even for smaller businesses or those with limited
and tools for collaboration financial means. What might once have involved
major capital investments and transition periods are
This report finds that collaboration cannot just now more manageable. Consider that:
be about talk or strategy – it has to be backed by

The Collaborative Economy 62

• Cloud-based service providers often have pricing Step 4: A tailored implementation
structures that allow small businesses to use tools
without the need for major capital investment; Collaboration is not something that occurs in a
vacuum, or something that can be done in isolation
• Alongside high-quality full-service telepresence from adjacent activities. A firm needs to have
options, a range of cheaper, laptop based employees and managers who work in teams,
communications tools are now available; and brainstorm ideas and iterate over solutions. But
as outlined in Chapter 2, collaboration depends
• Businesses may even find cost-saving upon communication. If people do not talk to each
opportunities from collaboration tools, such other, do not know whatother people, or lack
as activity-based working, which can reduce strong relationships, they are unlikely to collaborate
occupancy costs. because they won’t be aware of the opportunities
or benefits available.
Step 3: Changing culture with
the right incentives Over time, more communication should not only
share functional information about the business
Beyond the supply of tools for collaboration, and employee roles, but also build up soft capital
firms must promote a cultural environment that is between people – in the form of trust. This also
supportive of collaboration. This involves tackling recognises that collaboration is not just a business
some of the major barriers to collaboration process or procedure, it’s a deeply behavioural
identified in this report, including management activity, and encouraging it is not simply about
structure, management policies and financial pulling mechanistic levers.
incentives.
Driving a new collaborative culture requires
Overcoming these challenges, embodied through a tailored implementation strategy for the
management hierarchies and the value placed on circumstances of a particular business and
individual opinions, requires a concerted effort over workforce. Some examples:
the long term by both business leaders and middle
management, in a way that empowers employees • Driving collaboration might involve regular
and builds engagement. sessions with senior management to discuss
ideas and the direction of the firm, to show that
Ultimately, in collaborating, employees and leadership is invested in collaboration;
managers will respond like they do to any business
issue – based on their incentives. If people are • Introducing new collaboration tools like cloud-
recruited, paid and promoted for collaborating, based file sharing might be focused on at a big
they will do so. If people are assessed individually, event with a ‘flick the switch day’ to create buzz;
without recognition for collaborating, they will
not collaborate. This report finds that getting the • Firms might allow employees to choose what
HR part of collaboration strategy right is the single technology and workspace they want to use,
most important culture and governance lever providing options so that collaboration can grow
businesses can use to drive collaboration. We know organically, with more employee ‘buy in’;
that, in general, employees and managers want
to collaborate – it makes them more satisfied and • Leaders could ask employees to come forward
engaged at work – and that the challenge is inz to be collaboration leaders, so that alongside
crafting HR strategy and governance systems to their day-jobs, they also have an extra-curricular
reflect that. role of facilitating collaboration or looking for
opportunities;

These are just a few ways in which businesses can

63

actively introduce collaboration into the workplace. meetings early, or putting someone in charge of
The point is not that there is any one set formula a collaboration session – while keeping in mind
to have people working together, but that thinking that many of the most successful collaborations
through the transition process is important. are organic, spontaneous, don’t have rules and
sometimes still work; and
Collaboration activities also need to be monitored • Champion individual efforts and successes as
over time to make sure that they continue to be well – if the collaboration message goes too far,
effective and meet business objectives. to the exclusion of solid individual efforts and
concentration it is more likely to result in some
Step 5: Ensuring effective collaboration ineffective collaboration activities.

Beyond increasing the level of collaboration, it is Building a collaborative culture is not an overnight
important for all firms – including those with an transformation where everything in the organisation
existing high level of collaboration already – to is suddenly collaborative. It is something that builds
ensure the effectiveness of collaboration. momentum over time, based on the growth of
Effective collaboration will help overcome the trust, familiarity between people, and tangible
greatest barrier – lack of time. If employees can collaboration success stories.
see time saving benefits, they are more likely to
collaborate as part of how they work, rather than Business leaders also need to recognise that early
something additional that they ‘have to do’. efforts to stimulate collaboration may not be
immediately successful. After all, those first attempts
If employees can see time saving benefits, are where people are just finding out about each
they are more likely to have collaboration other’s roles, or how they like or do not like to
as part of how they work. collaborate. Ineffective collaborations need not be
persisted with if people do not want to.
There are many ways to turn collaboration from a
time wasting activity to being productive. Here are Over time, however, it is likely that where trust
just a few ideas: and relationships build, employees will become
more aware of how to collaborate effectively.
• Giving employees choices is clearly important – Collaborating consistently will help this. Ideally,
the more say they have over what meetings or businesses would be able to achieve a workplace
conversations they are a part of, the more likely scenario where collaboration does not require all the
they are to engage; formal components of a collaboration strategy and
instead happens seamlessly and without friction.
• Seek employee views on the effectiveness
of activities – if they think certain types of Conclusion
collaboration are a waste of time, stop doing
them; With these steps, businesses can change how they
think about collaboration, devise a strategy, link it
• Having the right technology and tools is to tools, technology and other strategies, and try to
important – if you have electronic document lift the level and effectiveness of collaboration over
management it is easier to track changes and time. The results of this report suggest that these
edits than old-style word processing software; if changes can have a profound impact on how we
you have dedicated collaboration space, other work and have significant benefits for business and
employees are less likely to be disturbed; the economy in the long term.

• Consider whether it is appropriate to have
some informal rules about collaboration – like
regularly checking the time and seeing if progress
is being made, having the discipline to close

The Collaborative Economy 64

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The Collaborative Economy 66