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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 Impact Knowledge Workers' Performance

  • 1. 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
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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.
  • 6. 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
  • 7. New Worlds of Work Research Project 2007 - 2009 7 Partners 2007 : Partners 2008 : Partners 2009 :
  • 9. 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?”
  • 10. 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.
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. 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
  • 15. 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)
  • 16. 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.
  • 17. 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
  • 18. Thesis 1: Six personas
  • 19. 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
  • 20. Thesis 2: Microsoft’s DNA & NWoW features Microsoft’s DNA NWoW features /9
  • 21. Thesis 3 : Analysis of three teams 21
  • 22. 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.
  • 23. 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
  • 24. Agenda Part 3 24 Discussion / Feedback / Next Steps