New Ways of Working and the Impact on Knowledge Worker Performance:The Microsoft Case

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Research Team:Eric van Heck, 4 colleagues and 3 MSc students (2007-2009)

Cambridge, July 1, 2009

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

Research data

2

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

1. Introduction of the New WoW project

2. Feedback:

- how to link this research project to CISR’s

research and create a collaborative research

Goals presentation

3

research and create a collaborative research

project?

- is there an interesting story line already that

is suitable to publish in SMR or MISQE?

First, I would like to present the research

project – you can ask questions for

clarification;

Second, please provide suggestions and

Approach to the presentation

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Second, please provide suggestions and

feedback in part 3 of the meeting

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:

Key definitions

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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

an organization.

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)

Agenda

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(15.30 - 15.40)

3. Discussion / Feed Back / Next Steps

(15.40 - 16.00)

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New Worlds of Work Research Project

2007 - 2009

Partners 2007 :

Partners 2008 :

Partners 2009 :

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

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Research Question

“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?”

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Answer

“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� The work dimensions influencing the output variables are shifting moretowards new aspects of work, e.g. Work – Life Balance, ProcessModularity, Workplace Mobility, Willingness to Change and Skill Variety.

� Highest improvements of work dimensions were related to Inclination toWork in Open Office, (Lack of) Distraction of Workplace, Control ofWorkplace and Satisfaction of Workplace.

� More employees have adopted a more mobile work style after moving tothe new building.

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Survey – Quasi Field Experiment

� Survey 2007 : 268 respondents

Response rate 38.4%

� Survey 2008 : 293 respondents

Response rate 39.1%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

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Online Survey Instrument

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� 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

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Paired Sample (1)Work Dimensions

3,00

3,50

4,00

4,50

5,00

Workplace MobilityTeam Distribution

Collaboration within Workgroup

Interaction outside Organization

Task Interdependence

Transparency(Lack of) Distraction Workplace

Control Workplace

Satisfaction Workplace

Reward SystemsMember Flexibility

Work Dimensions

Paired Sample Means Comparison 2007 - 2008

MobilityReward

System

Workplace

Communication &

Cooperation

Task

0,00

0,50

1,00

1,50

2,00

2,50

3,00

Job Complexity

Task Variety

Task Identity

Skill Variety

Dynamc Teaming

Process Modularity

Work-life Balance

Intrinsic Job Motivation

Extrinsic Job Motivation

Relationship ColleaguesRelationship Superior

Carreer EncouragementEmpowerment MeaningEmpowerment Competence

Empowerment Self-determination

Empowerment Impact

Trust in Management

Trust in Employees

Willingness to Change

Technology Usage - Search and …

Technology Usage - Publish and …

Technology User Classification

Attitude towards New Technologies

Inclination work in Open Office

Means 2008

Means 2007

Technology

Willingness

to change

Trust

Empowerment

Task

Characteristics

Modularity

Work/life balance

Job Motivation

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Paired Sample (2)Output Variables

4,20

4,40

Employee

Satisfaction

Output Variables

Paired Sample Means Comparison 2007 - 2008

3,40

3,60

3,80

4,00

4,20

Productivity

Job Flexibility

Change and

Innovation

Means 2008

Means 2007

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Paired Sample (3)Influences on Productivity

Work Dimension2007 (M = 3.99) 2008 (M = 4.08)

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 3.61Extrinsic 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)

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NWoW ModelChanges 2007 – 2008

Employee

satisfaction

Trust in management

Relationship Superior

Workplace Mobility

Intrinsic Job Motivation

Inclination work Open Office

Workplace

Trust

Job

Motivation

ModularityProcess Modularity

∆ Work Dimension ���� ∆ Output Variables

Work Dimension (2008-2007) ���� Output Variables (2008–2007)

Employee

Productivity

Job

Flexibility

Change &

Innovation

Empowerment Meaning

Empowerment Competence

Empowerment Impact

Work Life Balance

Technology User Classification

Empowerment

Personal

Task

Characteristics

Technology

Communication

Cooperation

Skill Variety

Task Interdependence

Interaction Outside Organiz.

ModularityProcess Modularity

Attitude Towards new Tech.

Collaboration within Organiz.

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Agenda Part 2

1. Master thesis 1: Personas and Digital Work Styles

2. Master thesis 2: Microsoft’s DNA and the New2. Master thesis 2: Microsoft’s DNA and the New

World of Work features

3. Master thesis 3: Virtual Teaming

Thesis 1: Six personas

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Paired Sample (4)Differences in Personas

More employees

have adopted a 25,0

30,0

35,0

Persona1: Desk Bounded

4: Mobile within

building

7: Highly Mobile

have adopted a

mobile work style

after moving into

the new building

0,0

5,0

10,0

15,0

20,0

1 2 3 4 5 6 7

Per

cen

tag

e

Workstyle

Microsoft 2007

Microsoft 2008

Thesis 2: Microsoft’s DNA & NWoW features

Microsoft’s DNA NWoW features

/9

Thesis 3 : Analysis of three teams

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Some Overall Observations

1. Employee empowerment is a dominant dimension in all investigated firms.

2. ‘Task characteristics’, ‘modularity’, and ‘communication & cooperation’ are interesting‘communication & cooperation’ are interestingdimensions 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 governanceand operating model/digital platform.

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Linking to CISR’s work – see Ross & Weill (2009) and

Joe Antonellis (2009) framework (sheet 12)

Design Process BUS/IT

� Governance model

� Organization/People

Operating Process BUS/IT

� Governance model

� Organization/People� Organization/People

� Process/Operations

Next generation

� Digital Platform

Next generation

Organization/People

Current Focus NWoW

� Process/Operations

Current generation

� Digital Platform

Current generation

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Discussion / Feedback / Next Steps

Agenda Part 3

Discussion / Feedback / Next Steps