Professional Documents
Culture Documents
Uarterly
E xecutive
Advantages of Transforming to a
Mobile and Green High Performance Workplace ,
1 2
Flexibility is a key element of the way work is carried out in the 21st century. Increased
competition in fast-moving global markets means that companies need flexible workers who
can quickly adapt. Similarly, societal changes—such as the increasing number of women in the
workforce, dual-career households and work/private life expectations—have led to employees
demanding increased levels of flexibility to better adjust to life outside of work. Mobile work
technologies have the potential to empower employees and provide the much needed flexibility.
These technologies may also provide “green” (or environmental sustainability) benefits as they
have the potential to move companies away from existing energy-intensive work habits and
create a low carbon economy.3
1 Dorothy Leidner, ShanLing Pan and Juliana Sutanto are the accepting senior editors for this article.
2 The authors thank the accepting senior editors and anonymous reviewers for their excellent feedback on drafts of this article, and
the employees of Microsoft Netherlands for their participation in this study.
3 Smart2020: Enabling the Low Carbon Economy in the Information Age, Climate Group, 2008. This report indicates that the ICT
sector’s carbon footprint, measured as billion tons (Gt) of carbon dioxide equivalent (CO2e), is expected to increase in a business-
as-usual scenario from 0.53Gt in 2002 to 1.43Gt in 2020. But specific ICT-enabled opportunities identified in this report can lead
to emission reductions five times the size of the sector’s own footprint, up to 7.8 Gt, or 15% of the sector’s total business-as-usual
emissions by 2020.
Some might argue that companies “can’t of the parent7—transformed itself into a mobile
have the best of both worlds,” meaning they and green high performance workplace, which
will have to choose between productivity and was implemented in 2008 when the company
“going green.” We argue, however, that using moved into a new building near to Schiphol
mobile work technologies to design new ways of Airport, Amsterdam. We studied Microsoft
working will improve productivity and work/life NL between 2007 and 2012 (details of our
balance, while also reducing carbon emissions. research methodology are set out in Appendix
This is important, as a McKinsey survey shows 1). The Microsoft NL case shows how advanced
that companies will have to take a long-term mobile work technologies enable the new ways
strategic view on environmental sustainability of working, which lead to improved levels of
and incorporate it into the key value creation employee productivity, a better work/life balance
levers that drive return on capital and growth, and reduced carbon emissions.
as well as the key organizational elements that We describe the reasons for introducing
support value creation.4 The concept of gaining the new ways of working and their outcomes,
business value and environmental sustainability and the key challenges that Microsoft NL faced
advantages through using advanced mobile work and the actions it took to deal with them. The
technologies to design new ways of working is article concludes by providing guidelines for
often discussed but rarely achieved. companies that wish to emulate Microsoft NL’s
We define these new ways of working as the transformation to a mobile and green high
“mobile and green high performance workplace” performance workplace.
where employees control the time and place of
their work, with new work practices enabled New Ways of Working at
by mobile work technologies that contribute Microsoft NL
to high performance at the individual and firm
levels.5 The mobile technologies are integrated The new ways of working at Microsoft NL
for information processing, communication and have involved many changes for its employees.
collaboration in tools such as online document The most prominent change was the relocation
management, online meetings, laptops, tablets to a newly designed head office building that
and smartphones. Additionally, the mobile and exemplifies key characteristics of the next-
green high performance workplace provides generation workplace. With an abundance
green benefits by reducing the carbon footprint of of natural light, the office symbolizes the
the firm and its employees, and thus contributing transparency that Microsoft employees want
to environmental sustainability.6 to extend to their colleagues and visitors.
This article describes how Microsoft Employees arrive at the office at all times of the
Netherlands (NL)—a sales and marketing division day. Depending on their work activities, they
choose a functional area of the building in which
to work. Some will meet customers in the meeting
rooms equipped with roundtable technology or
4 The Business of Sustainability, McKinsey Global Survey Results in the trendy café to discuss new products and
2011, October 2011.
5 See van Baalen, P. The High Performance Workplace in the New services, while others will prepare presentations
Ways of Working, RSM Seminar “The State of Art in the New Ways in enclosed cubicles. Brainstorming sessions with
of Working Research,” Rotterdam, November 7, 2011; and van colleagues can be held in the open-air terrace
Baalen P. Risk Junctions: Reflexive Modernization and the Hybrid
Workspace, 7th Organization Studies Workshop “Organizations as garden, while the auditorium provides space to
Spaces of Work,” May 24-26, 2012. present work to larger audiences. No employee—
6 In March 1987, the United Nations Brundtland Commission not even the general manager of Microsoft NL—
defined sustainable development as “development that meets the
needs of the present without compromising the ability of future
has a dedicated office.
generations to meet their own needs.” Recent work focuses on how
companies will use sustainability for competitive advantage; see,
for example, Nidumolu, R., Prahalad, C. K. and Rangaswami, M. R. 7 Microsoft NL is a medium-sized subsidiary of Microsoft
“Why Sustainability Is Now the Key Driver of Innovation,” Harvard Corporation and part of the Microsoft European, Middle East and
Business Review, September 2009; and Harmon, R. R. and Demirkan, African (EMEA) region. With around 1,000 employees, Microsoft
H. “The Next Wave of Sustainable IT,” IT Professional, IEEE NL is the sales and marketing office for all Microsoft products in the
Computer Society, January/February 2011, pp. 19-25. Netherlands.
176 MIS Quarterly Executive | December 2012 (11:4) misqe.org | © 2012 University of Minnesota
Achieving High Performance in a Mobile and Green Workplace: Lessons from Microsoft Netherlands
As well as working at the office, Microsoft with the technologies that drive business.9 As
employees work at a customer’s site, while a consequence, it was important to consider
travelling, at other external locations or work workplace requirements that fit a variety of work
from home. The head office is mainly used for styles of existing and future employees.
employee collaboration and client meetings, The technology manager responsible for 2bPR
while working from home is for tasks that require summarized the need for change in a meeting
critical thinking, such as intensive reading or held in April 2007:
analyzing, and processing information into
document form. “We need to start using our own products
Because employees can work from virtually and we need to understand that such a
any location, collaboration tools are an radical change in technology must also be
important aspect of Microsoft NL’s new ways accompanied by a change in mentality.”
of working. These collaboration technologies
This was an important position to express,
include presence software, instant messaging,
since not everyone at Microsoft is an expert in the
conferencing, enterprise voice capabilities, and
many products offered by the company.
document management. All employees use
smartphones, laptops or tablets with headsets “Maybe it is because I am a technology
and webcams provided by Microsoft. freak, but there should be more of them
In June 2006, Microsoft NL started planning [technology freaks] here. As I am thinking
to realize its vision of the new ways of working about cloud computing, SaaS [software as
under the codename “to be People Ready” (2bPR), a service], CoPs [community of practices]
inspired by Bill Gates’ whitepaper Digital Work and networks, some people inside this
Style: The New World of Work.8 In 2007, the new company do not even know how to set up
ways of working journey was initiated and a a conference call. How can we then set
transformation program was designed. In April strategies and drive innovations in the
2008, the new Microsoft NL building, called the technology market? We will not make it this
Outlook, was ready for occupation. way.” Knowledge worker
There were three main reasons why Microsoft
NL chose to use advanced mobile workplace
technologies for its 2bPR initiative. First, it Long-Term Goals for the
recognized that an increasing number of current Mobile and Green High
knowledge worker tasks can no longer be
regarded as traditional office work—instead, the
Performance Workplace
work is about generating new ideas, combining Based on the new ways of working vision,
different perspectives and producing new Microsoft NL specified four top-level long-
knowledge. Increasingly, knowledge workers term goals: reduce internal operating costs,
are seeking inspiration and flexibility for critical optimize employee performance with enabling
thinking that produces value and provides technologies, retain the best people and become
environmentally sustainable results. Second, an attractive employer, and build a case for
Microsoft NL recognized that its operating model environmental sustainability.10
was changing from a traditional software vendor
to a customer service provider. This change Reduce Internal Operating Costs
required new forms of collaboration, teamwork One important component of operating costs
and customer relationship management. is office lease costs. Before moving to the new
Third, the company recognized that business building, the leased floor area per person was
growth is directly related to the personal 16.4 square meters (176 square feet); the new
growth of employees by empowering them building provides 8.82 square meters (95 square
feet) per person, resulting in annual savings of
9 For more details see the Microsoft Whitepaper People Ready:
Inside Your Company is a Powerful Force, February 2006.
8 Gates, W. Digital Work Style: The New World of Work, Microsoft 10 Meerbeek, M. et al. A New Way of Working, Microsoft
Whitepaper, May 2005. Whitepaper, 2009.
$640,000, a 30% reduction in real estate costs.11 NL received the Best Workplace in Europe Award
Other operating costs, such as mobile telephony, from the Great Place to Work Institute Europe.
were reduced because of the increased usage of The transition to the new ways of working by
Internet-based communication, though these Microsoft NL is seen as the flagship example of
were not measured in detail. how Microsoft is creating the mobile and green
high performance workplace for its employees.
Optimize Employee Performance In the first year, around 30,000 people visited
Although individual performance is crucial the new building to learn about the new ways
for overall company performance, improving of working, with a consequent improvement in
the performance of individuals is not an easy Microsoft’s reputation as a supplier of business
task. One dimension of performance is employee solutions and as a potential employer.
productivity. In the 2bPR transformation, the
perceived productivity of individual employees Build a Case for Environmental
was measured by asking about efficacy, efficiency Sustainability
and quality of the executed work.12 Between By the end of 2007, Microsoft NL decided
2007 and 2008, the introduction of the new to focus on environmental sustainability, in
ways of working resulted in improvements of particular on reducing CO2 emissions. It set a
perceived productivity of 1.6%,13 and by 0.9% target of reducing the CO2 footprint for each
between 2008 and 2010. The total improvement employee by 30% by the end of 2012. This target
in perceived productivity between 2007 and 2010 was achieved in April 2012, with the mobile and
was 2.5%. green high performance workplace making a
significant contribution. The sustainability officer
Retain the Best People and Become an at Microsoft NL points out that because 99% of
Attractive Employer business processes are now online (such as online
Between 2007 and 2012, the number of salary and holiday registrations), employees
Microsoft NL employees grew by 40%, from have reduced their printing requirement to an
around 700 to 1,000. The company was ranked average of one page a day. Software is used to
No. 1 in the Netherlands 2010 Great Place to reduce the energy consumption of data centers,
Work Survey.14 The survey results showed that the mobiles and laptops (25 tons CO2 reduction per
ability for employees to achieve a desired work/ year). Other actions were to separate waste (10
life balance was one of the key factors that helped tons CO2 reduction per year), closing down office
Microsoft NL obtain this award. We measured the areas during holidays (18 tons CO2 per year) and
work/life balance of Microsoft NL’s employees reducing light intensity from 500 to 300 lux and
before, during and after the transformation, and using motion sensors.
found that the work/life balance scores steadily Online meetings (instead of flying to
increased by 3.4% between 2007 and 2010.15 In meetings), avoiding traffic jams (by using
2011, for the fourth consecutive year, Microsoft different working hours or taking the train) and
using fuel-efficient and electric cars (on average
11 Ibid.
20 grams/kilometer cleaner cars) also contribute
12 Productivity components were based on: Staples, D. S., Hulland,
J. S. and Higgins, C. A. “A Self-Efficacy Theory Explanation for to reducing carbon emissions.16
the Management of Remote Workers in Virtual Organizations,” More than 50% of Microsoft NL employees
Journal of Computer-Mediated Communication (3:4), June 1998; and now work at home more than two days a week,
Ramírez, Y. W. and Nembhard, D. A. “Measuring knowledge worker
productivity: A taxonomy,” Journal of Intellectual Capital (5:4), and by using online collaboration tools they have
2004, pp.602-628. Components were measured on a 1to 5 scale. reduced in the period 2007-2012 their car travel
13 Results of the 2007 and 2008 surveys were reported in van by 1.5 million kilometers. This reduction of 9%
Heck E. “The Next Generation Workplace,” MIT CISR Research
Briefing (9:9B), September 2009, and the results of the 2010 survey in total kilometers was achieved even though
were reported in van Heck, E. et al. “Sustainable Work Innovation: the number of cars increased by 5%. The CO2
Measuring the Impact of a New Way of Working at Microsoft footprint per employee was reduced from 8.5
Netherlands,” Erasmus@Work Research Briefing, January 1, 2011.
14 2010 Beste werkgevers van Nederland [Best employers of the
tons per person in 2007 to 5.9 tons in 2012. This
Netherlands], Great Place to Work Institute Nederland, http://www. reduction is the equivalent of driving a car for one
greatplacetowork.nl/best/list-nd.htm. year. Around 70% of the 1,000 employees now
15 Work/life balance was measured by asking several questions
about possibilities and difficulties in finding a good work/life balance,
and about the ability to separate oneself from work when preferred. 16 Hess, S. Duurzaamheid [Sustainability], Microsoft NL, 2010.
178 MIS Quarterly Executive | December 2012 (11:4) misqe.org | © 2012 University of Minnesota
Achieving High Performance in a Mobile and Green Workplace: Lessons from Microsoft Netherlands
avoid the morning and afternoon rush hours and general manager] heading the group was
travel more than 1 million kilometers by train a clear signal to the organization of the
each year. The per employee CO2 footprint of air importance of 2bPR.” Steering committee
travel has decreased, but because of the 40% member
increase in employees, the air travel footprint of
Microsoft NL has increased by 14%. The steering committee decided that the
transparent view of change would comprise three
Establishing a Steering areas:
“You immediately see which management “Without [our GM] we would not have been
team members are enthusiastic about 2bPR here [at the new office] and we would not
and able to integrate the concepts. This is have changed our organization and work
directly linked, on a one-to-one basis, to the style as profoundly and successfully as
integration [success or failure of 2bPR] in a we have done now. His leadership was a
business unit.” Top manager crucial element of that change.” Knowledge
worker
Just as important, however, was the help and
assistance of a group of opinion leaders called
“quartermasters,” who promoted the idea and
17 The coaching leadership style is one of the six leadership styles
developed by Daniel Goleman: see Goleman, D. “Leadership That
Gets Results,” Harvard Business Review, March-April 2000. pp.
78-90. 20 Dupain, W. Managing Change in the 21st Century: The Journey
18 Servant leadership is presented and discussed by Robert toward the New Ways of Working—A Rebalancing Act of Managerial
Greenleaf, see Greenleaf, R.K. Servant Leadership: A journey into the and Knowledge Worker Power, Roles, and Mental Models at
nature of legitimate power and greatness, 1970. New York: Paulist. Microsoft, Thesis, Rotterdam School of Management, Erasmus
19 Meerbeek et al., op. cit., 2009. University, June 2009.
180 MIS Quarterly Executive | December 2012 (11:4) misqe.org | © 2012 University of Minnesota
Achieving High Performance in a Mobile and Green Workplace: Lessons from Microsoft Netherlands
30
25
20
Percentage
Microsoft 2007
15
Microsoft 2008
10
0
1 2 3 4 5 6 7
Digital working style (1=desk-bound employee; 7=externally mobile employee)
“The new ways of working are about to me a very nice side effect.” Knowledge
dealing with time and place in a clever worker 24
182 MIS Quarterly Executive | December 2012 (11:4) misqe.org | © 2012 University of Minnesota
Achieving High Performance in a Mobile and Green Workplace: Lessons from Microsoft Netherlands
written in a style that appealed to the marketing “I heard that I could contribute, but really
and sales-oriented work force of Microsoft NL. did not know the topics; they were not
To support and guide personal and team communicated to me. I could have gone to
growth, HR facilitated teams and their managers [one of the steering committee members].
in several training sessions. HR also developed a But this was too much of a hurdle.”
cohesive path for people managers to implement Knowledge worker
so they could change the mental models within
their teams. The training everyone was expected Some steering committee members reflected
to participate in was gaining self-insight based on the way the committee was operating:
on the Myers-Briggs Type Indicator (MBTI).25
“I believe we could have communicated
In addition, middle managers and knowledge
better about the process. But you are
workers developed various other training
already so involved in quite a major mental
sessions during the first signaling and re-
and behavioral shift for yourself and
visioning phase. These sessions supported self-
figuring out how to communicate what you
activation, self-reflection, skills and scenarios
are going through to others that the final
that would be needed for the new ways of
communication and implementation then
working.
sometimes suffers.” Steering committee
Challenge 4. Balancing a Top-Down member
with a Bottom-Up Approach Even the quartermasters, who were supposed
Although the management team had to spearhead the implementation, felt that
succeeded in creating a structure for the change was not as bottom-up as management
implementation of the transformation to the new had promised. The idea was great, but the
ways of working, their vision of co-creation was implementation was lacking. The willingness
not recognized by all employees. It was not easy to empower was there, but behavior on both
to change from a traditional, top-down approach sides still followed old top-down mental models.
to a bottom-up approach. This resulted in an incomplete transfer of
Some employees felt that they were left out at responsibilities and partial empowerment. There
the beginning: were also reports that the management team
lacked legitimacy and did not provide sufficient
“That the steering committee was formed
resources and information, and that middle
was a good first step. However, the way
managers and knowledge workers did not push
[the committee] operated, especially in the
the initiative hard enough. A steering committee
beginning, was quite distant and up in the
member remarked:
clouds. It was quite difficult if you were not
close to them to understand what they were “If I reflect back on what we decided, that
up to. I am not sure about others, but many the quartermasters would be the ones
of the decisions they took did not really leading the change, because they had been
reach me. This improved later on. But I nominated for their frontrunner position,
believe if you really want input from the I think the approach did not work. Maybe
entire organization, more communication we should have supported them better;
on the process should happen directly from didn’t we give them enough material to
the beginning. Technology can easily be work with?”
used for that …” Knowledge worker
Some employees were puzzled about the goals Quartermasters confirmed this assumption:
and actions that the steering committee was “We received the opportunity/
taking: responsibility to further develop the vision
of 2bPR and to inspire peers throughout the
25 The Myers-Briggs Type Indicator (MBTI) assessment is a organization. We did not get the resources,
psychometric questionnaire designed to measure psychological however.”
preferences in how people perceive the world and make decisions.
184 MIS Quarterly Executive | December 2012 (11:4) misqe.org | © 2012 University of Minnesota
Achieving High Performance in a Mobile and Green Workplace: Lessons from Microsoft Netherlands
Even before moving to the new building, travelling by train takes 1.5 times longer
Microsoft NL employees had started to develop a than travelling by car, I opt for the car.”
new mentality toward their work. Top managers Knowledge worker
took the lead in this process by giving up their
offices, working instead in functional areas and Box 2 explains how employees’ behavior
at varying times of the day. This gesture, both with regard to environmental sustainability was
highly visible and symbolic, demonstrated to analyzed and used.
employees that management meant business To help assess the impact of the mobile
when it came to co-creation and empowerment. and green high performance workplace on
This observable change was important, since environmental sustainability, it is important
adjusting to the new ways of work did not go to develop a set of guidelines and metrics to
smoothly for everyone: measure the impact. Microsoft NL developed a
CO2 dashboard that tracks monthly and yearly
“Technology enables me to work at the data on electricity, gas, air, garbage and car
weekends, and sometimes at night. I do not CO2. All employees are now able to measure
do it too often, but I do. And yes, I feel guilty their individual CO2 usage by using a software
going to the supermarket or drycleaners application. There is a continuing effort to use
during the week, so I actually don’t do it. the data to fine-tune behavior and activities
I still have the feeling that between 9 and and to improve the sustainability performance
5 I need to show that I am working. I know of Microsoft NL employees. The environmental
it’s ridiculous ... I actually even think I am a sustainability actions taken by Microsoft NL
little less productive this way.” Knowledge under each of the three areas (people, place
worker and technology) of the mobile and green high
performance workplace are listed in Appendix 2.
In July 2012 Microsoft Corporation specified
Challenge 5. Encouraging
a new commitment: “… to become carbon neutral
Environmentally Sustainable Behavior by fiscal year 2013: to achieve net zero emissions
The results of Microsoft NL’s transformation for our data centers, software development labs,
to the mobile and green high performance offices and employee air travel by increasing
workplace indicate that the new ways of efficiency and purchasing renewable energy.
working have the potential to reduce the carbon Through operational governance, we will embed
footprint of employees. Online meetings are accountability for this goal across the company
replacing transatlantic flights, more flexibility to help drive systemic changes.”
in the timing of work has the potential to avoid
the Netherland’s notorious traffic jams, and
Guidelines for CIOs
working at different places (at the client’s site, at
train stations, at home) is reducing the number We have developed the following five
of journeys to and from work. Moreover, the guidelines for companies that wish to move
introduction of environmentally sustainable toward a mobile and green high performance
initiatives will lead to lower energy consumption workforce. These guidelines are based on the
in data centers, hardware and software. things that Microsoft NL did well.
A challenge is to integrate environmental
sustainability into the behavior of the employees. 1. Adopt a Coaching Leadership Style
Once employees started to incorporate Microsoft NL’s top management adopted
sustainability into their behavior, they felt good the coaching leadership style for the change
about it. management program for implementing the
mobile and green high performance workplace.
“There are several moments that I make This meant the program—instead of being
choices that increase my productivity but rigorously planned and implemented as a top-
also have a positive effect on sustainability. down-controlled process—was co-created and
I feel very good about it. I travel daily managed organically by the top management
by train mainly to save time. When team, middle management and front-line
knowledge workers. By adopting this leadership Microsoft NL was to create awareness among
style, organizations can develop a coherent employees of the opportunities presented by the
vision and integrated approach of how the new new ways of working. To address this challenge,
ways of working will lead to strategic value for employees should be allowed to explore the
the firm. 2627
new ways of working, and be provided with
2. Create a Steering Committee Led by training and tools to explore the opportunities.
Their readiness for the mobile and green high
the CEO
performance workplace can be assessed through
CEO leadership of the steering committee is
the use of personas and scenarios.
crucial for a successful transition to a mobile
Employees can be engaged, energized
and green high performance workplace. To
and enthused through interaction with their
ensure the workplace transformation is designed
colleagues. Microsoft NL appointed change
and implemented in the best possible way, the
agents (which it called “quartermasters”) to
committee will need top managers with different
provide the ability of exploring the new ways of
backgrounds, including HR, facilities and IT.
working. Teams should be encouraged to discuss
3. Empower and Engage Employees in the changes required to transform to the mobile
the Transformation and green high performance workplace.
Empowering employees by providing
4. Assess the Impact of the New Ways
them with mobile work concepts and tools to
of Working
create individual solutions will help smooth
The transformation process should be
the transition to the mobile and green high
positioned as a continuous journey with learning,
performance workplace. A key challenge at
feedback, monitoring and open discussions
26 Todorova, Y. Finding the Balance: Ecological Behavior, on the impact of the mobile and green high
Work-Life Balance, and Productivity, Thesis, Rotterdam School of performance workplace on performance
Management, Erasmus University, 2010.
dimensions such as productivity, work/life
27 Pelletier, L. G., Tuson, K. M., Green-Demers, I., Noels, K. and
Beaton, A. M. “Why are you doing this for the environment? The balance and carbon emissions. Organizations
motivation toward the environment scale (MTES),” Environment should set clear output goals and metrics
and Behavior (28), 1998, pp. 437-468.
186 MIS Quarterly Executive | December 2012 (11:4) misqe.org | © 2012 University of Minnesota
Achieving High Performance in a Mobile and Green Workplace: Lessons from Microsoft Netherlands
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