New Ways of Working

New Ways of Working and the Impact on Knowledge Worker Performance: The Microsoft Case Research Team: Eric van Heck, 4 colleagues and 3 MSc students (2007-2009) Cambridge, July 1, 2009 1

Research data 1. Interviews with key stakeholders within Microsoft Netherlands (2007 – 2009) 2. Survey data of Microsoft knowledge workers in July 2007 (N=268) 3. Survey data of Microsoft knowledge workers in October 2008 (N=293) 4. Analysis of white papers, reports and steering group meetings of Microsoft’s 2bPR initiative 5. Three MScBA Thesis Studies 2

Goals presentation 1. Introduction of the New WoW project 2. Feedback: - how to link this research project to CISR’s research and create a collaborative research project? - is there an interesting story line already that is suitable to publish in SMR or MISQE? 3

Approach to the presentation First, I would like to present the research project – you can ask questions for clarification; Second, please provide suggestions and feedback in part 3 of the meeting 4

Key definitions Knowledge worker: individual that is valued for their ability to interpret information within a specific subject area. Work: the amount of effort applied to produce a deliverable or to accomplish a task Work dimensions: we identified nine dimensions ranging from workplace to empowerment based on work design theory of Morgeson and Humphrey (2006). Knowledge worker performance: output in terms of (percieved) productivity, job satisfaction, flexibility, and innovativeness. Work interventions: An effort to improve working conditions in 5 an organization.

Agenda 1. Presentation & Discussion Microsoft Case including the Dimensions of Work Survey 2007-2008 (15.05 - 15.30) 2. Master thesis research at Microsoft (15.30 - 15.40) 3. Discussion / Feed Back / Next Steps (15.40 - 16.00) 6

New Worlds of Work Research Project 2007 - 2009 7 Partners 2007 : Partners 2008 : Partners 2009 :

http://www.microsoft.com/netherlands/het_nieuwe_werken/default.aspx 8

Research Question 9 “What is the impact of moving to the new building on work dimensions and output variables such as Productivity, Job Satisfaction, Flexibility, and Innovativeness as perceived by the knowledge workers of Microsoft?”

Answer 10 “In the perception of the knowledge workers moving to the new building resulted in a higher level of job flexibility and a slightly higher productivity.” The work dimensions influencing the output variables are shifting more towards new aspects of work, e.g. Work – Life Balance, Process Modularity, Workplace Mobility, Willingness to Change and Skill Variety. Highest improvements of work dimensions were related to Inclination to Work in Open Office, (Lack of) Distraction of Workplace, Control of Workplace and Satisfaction of Workplace. More employees have adopted a more mobile work style after moving to the new building.

Survey – Quasi Field Experiment 11 Survey 2007 : 268 respondents Response rate 38.4% Survey 2008 : 293 respondents Response rate 39.1% 117 respondents filled in both questionnaires in 2007 and 2008 We call this the Paired Sample Respondents 2007 2008 Total group 268 293 Paired group 117 117

Online Survey Instrument 12 Characteristics Based on scientific literature (questions from literature) Pre-tested on a representative sample (n=350) High reliability (improvement after pre-test) Available in Dutch and English Measurements Different dimensions of Work Worker’s adoption and perceptions of the NWoW Influence on output variables: Productivity, Employee Satisfaction, Job Flexibility and Innovativeness Longitudinal approach (T0=2007, T1=2008 etc) No control group

Paired Sample (1) Work Dimensions 13 Work Dimensions Paired Sample Means Comparison 2007 - 2008 Reward Mobility System Communication & Workplace Mobility Member Flexibility Team Distribution Cooperation Workplace Reward Systems 5,00 Collaboration within Workgroup Satisfaction Workplace 4,50 Interaction outside Organization Control Workplace 4,00 Task Interdependence 3,50 (Lack of) Distraction Workplace Transparency 3,00 Inclination work in Open Office 2,50 Job Complexity Task 2,00 Characteristics Attitude towards New Technologies 1,50 Task Variety 1,00 Technology User Classification Task Identity Technology 0,50 Means 2008 0,00 Technology Usage - Publish and… Skill Variety Means 2007 Technology Usage - Search and… Dynamc Teaming Modularity WillingnessWillingness to Change Process Modularity to change Work/life balance Trust in Employees Work-life Balance Trust Trust in Management Intrinsic Job Motivation Empowerment Impact Extrinsic Job Motivation Empowerment Self-determination Relationship Colleagues Empowerment Competence Relationship Superior Job Motivation Empowerment Empowerment Meaning Carreer Encouragement

Paired Sample (2) Output Variables 14 Output Variables Paired Sample Means Comparison 2007 - 2008 Employee Satisfaction 4,40 4,20 4,00 3,80 3,60 Change and Mea ns 2008 3,40 Productivity Innovation Mea ns 2007 Job Flexibility

Paired Sample (3) Influences on Productivity 15 2007 (M = 3.99) 2008 (M = 4.08) Work Dimension Beta Sig. Means Beta Sig. Means Empowerment Competence 0.21 0.05 4.27 0.40 0.00 4.31 Extrinsic Job Motivation 0.22 0.01 3.57 0.24 0.01 3.61 Interaction Outside Organization 0.09 0.35 4.25 0.18 0.07 4.36 Process Modularity 0.18 0.03 3.56 0.15 0.13 3.65 Empowerment Impact 0.26 0.01 3.61 0.06 0.56 3.73 Control Workplace -0.20 0.03 3.07 -0.05 0.65 3.45 Member Flexibility 0.17 0.06 3.60 -0.06 0.50 3.64 Table 15 - Regression Productivity Microsoft Comparison 2007 – 2008 – Paired (R² 2007 = 0.64, R² 2008 = 0.63)

NWoW Model Changes 2007 – 2008 16 Trust Trust in management Work Dimension Output Variables Relationship Superior Work Dimension (2008-2007) Output Variables (2008–2007) Job Motivation Intrinsic Job Motivation Inclination work Open Office Workplace Employee Workplace Mobility satisfaction Modularity Process Modularity Employee Collaboration within Organiz. Productivity Communication Cooperation Interaction Outside Organiz. Job Task Interdependence Flexibility Empowerment Meaning Change & Empowerment Empowerment Impact Innovation Empowerment Competence Task Characteristics Skill Variety Personal Work Life Balance Technology User Classification Technology Attitude Towards new Tech.

Agenda Part 2 17 1. Master thesis 1: Personas and Digital Work Styles 2. Master thesis 2: Microsoft’s DNA and the New World of Work features 3. Master thesis 3: Virtual Teaming

Thesis 1: Six personas

Paired Sample (4) Differences in Personas 19 1: Desk Bounded Persona 4: Mobile within 35,0 building 7: Highly Mobile 30,0 25,0 More employees have adopted a Percentage 20,0 Microsoft 2007 mobile work style 15,0 Microsoft 2008 after moving into 10,0 the new building 5,0 0,0 1 2 3 4 5 6 7 Workstyle

Thesis 2: Microsoft’s DNA & NWoW features Microsoft’s DNA NWoW features /9

Thesis 3 : Analysis of three teams 21

Some Overall Observations 22 1. Employee empowerment is a dominant dimension in all investigated firms. 2. ‘Task characteristics’, ‘modularity’, and ‘communication & cooperation’ are interesting dimensions to relate to the operating model and digital platform of the firm. 3. Firms implement new ways of working without considering the relationship with their governance and operating model/digital platform.

Linking to CISR’s work – see Ross & Weill (2009) and Joe Antonellis (2009) framework (sheet 12) 23 Design Process BUS/IT Operating Process BUS/IT Governance model Governance model Organization/People Organization/People Current Focus NWoW Process/Operations Process/Operations Next generation Current generation Digital Platform Digital Platform Next generation Current generation

Agenda Part 3 24 Discussion / Feedback / Next Steps

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New Ways of Working

by Eric van Heck on Nov 12, 2009

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