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QMIS

Uarterly
E xecutive

Achieving High Performance in a


Mobile and Green Workplace:
Lessons from Microsoft Netherlands
This article describes how Microsoft NL established new ways of working using
advanced mobile work technologies, with changes in three interrelated areas: people,
place and technology. It has created an anytime/anywhere workplace that has changed
the traditional office culture by stimulating flexibility, improved employee productivity
and work/life balance, and reduced the company’s and individuals’ carbon footprint.
Based on Microsoft NL’s experience, we provide guidelines for integrating new ways of
working to improve performance through mobile work technologies.1,2
Eric van Heck Peter van Baalen
Erasmus University Erasmus University
(The Netherlands) (The Netherlands)

Nick van der Meulen Marcel van Oosterhout


Erasmus University Erasmus University
(The Netherlands) (The Netherlands)

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.

December 2012 (11:4) | MIS Quarterly Executive 175


Achieving High Performance in a Mobile and Green Workplace

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.

December 2012 (11:4) | MIS Quarterly Executive 177


Achieving High Performance in a Mobile and Green Workplace

$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

Table 1: People, Place and Technology Goals19


New Ways of Working Area New Ways of Working Goals
People Increase individual and team productivity
Improve the work/life balance of employees
Attract and retain the right people
Reduce sick leave and the costs of non-productivity
Place Lower real estate costs
Reduce carbon footprint
Reduce travel and training costs
Technology Reduce IT and administration costs
Reduce communications costs
Reduce travel and training costs

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:

Committee and Adopting a ●● People: Focusing on development,


deployment and implementation for
Coaching Leadership Style the mental readiness of employees,
To emphasize the importance of the empowering people, addressing change
transformation, a steering committee was management and communication.
set up with the general manager of Microsoft ●● Place: Thinking about and implementing
NL as chairman. The committee included physical solutions for the new office
representatives from the HR, IT, facilities, building and its interior and facilities,
finance, communication and training functions of including meeting rooms, audiovisual
Microsoft NL. The fact that the general manager systems, parking, reception, catering,
chaired the committee sent a strong message to entrance and security.
the rest of the organization, and the process really
took off. ●● Technology: Developing and implementing
technologies with a focus on the actual
“The formation of the Steering Committee usage of the technology instead of the
was an important signal that change would execution of the technical implementation.
come. I was glad several management
team members participated in the steering The four long-term goals described above
committee. And especially that [the general were refined into specific goals under these three
manager] agreed to coordinate and interrelated areas of the mobile and green high
head the group. This way all information performance workplace (see Table 1).
that came to the project leaders from The company’s top management quickly
throughout the organization directly realized that implementing 2bPR required a new
reached him and several other members of approach, and the steering committee decided
the management team. This direct link was that the change program would be:
seen as very important. In addition, [the

December 2012 (11:4) | MIS Quarterly Executive 179


Achieving High Performance in a Mobile and Green Workplace

●● Managed organically, instead of being vision of 2bPR among employees. Internally,


rigorously planned quartermasters were defined as “colleagues with
●● Co-created by the management team, a clear view and with their own following who are
middle management and front-line considered opinion leaders and frontrunners in
knowledge workers throughout the the organization, and change agents consisting of
organization, instead of being controlled as peer-recognized as well as critical employees.”
a top-down process. Throughout the whole process of
implementing the 2bPR vision, Microsoft
The approach adopted for the change program NL’s general manager took steps to show his
was, in effect, the coaching leadership style, one commitment to the new concept. The most
of the six leadership styles developed by Daniel important of these was setting up and heading the
Goleman.17 This style focuses on developing steering committee, but there were other actions
people for the future and was seen as crucial for he took.20
the success of 2bPR with its focus on a “Guided 1. Communicating the vision and his
Discovery” rollout. However, adopting it proved personal opinion about 2bPR via a
quite a challenge given Microsoft’s traditional top- personal blog, interview sessions, and
down leadership style. After the transformation, a video clip to the employees and to
one started to use the servant leadership partners and clients.
concept.18
The 2bPR initiative was officially launched 2. Communicating personal difficulties he
at the Microsoft NL annual meeting in January encountered when trying to adjust to the
2007. This was the first time the project was new work style.
communicated to the whole organization, with 3. Observable behavioral changes, such as
the focus on the change philosophy of “organic giving up his office and calling into certain
and co-created change” and signaling that input meetings.
from employees was expected. From this moment
on, several interventions were developed and The coaching leadership approach went
executed to integrate all aspects of the 2bPR beyond the traditional top management support
vision into the organization. This included, due to the fact that the transformation was
among others, a company-wide kick-off day designed as a journey for the company, its
with dialogue sessions and quizzes about 2bPR, management and employees.
personal profiling, training and moving to the
“[The] GM has really been the driving force
new office.
behind this and I feel that has been very
19

Management input was an important factor in


important.” Middle manager
the success of the implementation of 2bPR:

“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

Challenges Faced in new office according to the 2bPR vision of


activity-based working. But some managers
Implementing the Mobile corrected this immediately or were just
and Green High Performance moving themselves and showing their team
Workplace what was expected. This was very effective.”
Steering committee member
Microsoft NL faced five main challenges in
transforming itself into a mobile and green high
performance workplace. Challenge 2. Creating Individual
Awareness and Work Solutions
Challenge 1. Developing an Integrated For knowledge workers, the workplace needs
Work Design to fit the knowledge-work activity, with different
With a mobile and green high performance tasks involving different requirements. Task-
workplace, work is no longer performed just workplace fit is defined as the ability of people
at a physical office location; it is also executed to find place(s) that suit their tasks.21 Based
while in transit or at a customer’s site or at on projects with thousands of companies and
home. Even so, designing office space for the its annual workplace survey, Gensler, a leading
new ways of working is an important factor in global architecture and office design company
the overall productivity of a company. Microsoft for business, identified four different work
NL’s management team knew that the transition modes into which all “day-to-day knowledge
to the new office would not be easy and that workplace activities” could be categorized: focus,
some employees might struggle with the change. collaborate, learn and socialize.22 These four
Instead of hiding the negative aspects of change, modes were central in the activity-based concept
the management team decided to give each of the new Microsoft NL building.
employee the opportunity to express his or her A key challenge was to create employee
opinion on the changes. Meetings were organized awareness. Microsoft used several techniques
where employees could vent their frustration, such as personas (how the technology could be
and the company set up an internal wiki where used by typical workers) and scenarios (how
grievances could be aired. to improve everyday situations) for helping
Before the move, several messages were sent employees develop the mental and technical
and published to emphasize all the various ways readiness for the new ways of working (Box 1
in which employees would have to change in provides more details).
order to adapt to the new building. The following Working while travelling (on the train, in the
was typical: car) and working at home (teleworking)23 are
important elements of the mobile and green
“On March 28, 2008, we will move to a high performance workplace. Our research
new office … a change of workplace, but suggests that employees indicate that they
above all a change in mindset; a new way really appreciate just having the option to work
of thinking and cooperating. When do you anytime, anywhere: it leads to higher levels of
work at the office, when at home? How will perceived flexibility, which in turn leads to higher
you attend a meeting—online or by being levels of work/life balance which in turn leads
physically present? And how do you keep a to higher productivity. Furthermore, we have
team together if you do not always see each found that employees who frequently shift their
other anymore?” work location and schedule tend to report higher
When the move finally happened, employees work/life balance scores than those who do not.
were looking for answers and for new guidelines
when making sense of the unknown situation and
new behavior experienced in the new office. It 21  Goodhue, D. L. and Thompson, R. L. “Task-Technology Fit and
was therefore important that management set the Individual Performance,” MIS Quarterly (19:2), 1995, pp. 213-236.
right example through their actions and behavior: 22  The 2008 Gensler Annual Workplace Survey, www.gensler.com.
23  Today’s mobility solutions, such as high-speed broadband
connections in the home and WiFi, make it much easier to implement
“Several people easily found their fixed flex-
telecommuting solutions than in earlier decades, when all that was
desk. In other words, they did not use the needed was a desktop or laptop and a basic telecom link.

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Achieving High Performance in a Mobile and Green Workplace

Box 1: Developing Mental and Technical Readiness for Mobile Work


Microsoft NL used a practical approach, so employees could develop the mental and technical readiness for the new ways
of working. “Personas” and “scenarios” were key techniques.
Seven personas with a specific digital work style were distinguished:

1. Desk-bound employee providing support and administrative assistance to a team


2. Concentrative analyst function
3. Most traditional engineering functions
4. Creative or research function
5. Internally mobile team/project/product lead
6. Highly mobile manager immersed in formal collaboration
7. Externally mobile employee dependent upon virtual communication24
Before the move to the new building, 11% of the employees had deskbound roles (1-3) and 89% mobile roles (4-7). In the
new building, the respective percentages are 6% and 94% (See figure below).
A scenario is a description of a future state of a coherent set of activities performed for a specific reason. Scenarios are
about rationalizing and standardizing common, everyday activities. A typical scenario comprises description and story-
board, rules of engagement, skills, technology and workplace. The top-five implemented scenarios are related to setting up
meetings, running projects, improving communication, knowledge and information sharing, and smarter execution of email
and tasks.
Percentage of Microsoft NL Employees Who Adopted a Specific Digital
Working Style (Persona) Before and AfterMoving into the New Building
35

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

way and using technology to get more out


of your day—at the office and at home. I There are, however, limits to working at home
never get stuck in traffic jams and therefore (task-related and family-related constraints)
I work more productively, and at home I and knowledge workers decide that some tasks
am more flexible to take care of my family. (collaboration, for example) are better carried
At the same time it has a positive impact out in the new building.
on [environmental] sustainability. It seems 24  Vermeulen, V. Leveraging the Digital Work Style: Identifying
Uneven Patterns of Adoption among the IT-enabled Workforce,
Thesis, Rotterdam School of Management, Erasmus University,
August 2007.

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

Challenge 3. Engaging Employees started to analyze and compare actions and


Microsoft NL decided that a company-wide behaviors with the signals and messages shared
workshop was necessary to introduce the 2bPR throughout the day to identify aligned or non-
concept. This was quite a challenge, since 700 aligned behavior, especially of management:
employees would have to be present at the
workshop. Planning for what became known “What I believe is most important is that
as the Room for Growth (RfG) day began in our manager really listened to us [at the
the spring of 2007. The focus of the steering RfG day] and [has] already changed some
committee members and the different project things in the way we work.” Knowledge
groups shifted toward organizing this event. worker
To prepare employees for the RfG day several There were also issues on how norms should
communications were sent to create excitement be discussed and formulated about the use
and increase energy levels. Using the results of technology (people calling in on meetings,
of several tests and measurements (such as mobile telephones in open offices disturbing
a personality survey and work style test), colleagues):
everyone received a personal 2bPR explanation.
Each employee was also asked to reflect on “I knew I had to talk with my team at
specific issues (e.g., “Think about the reason(s) some point. As technology is available and
for you personally and for Microsoft that is becomes more accepted, some people just
the foundation for this change (possibilities/ expected to call in on meetings. I found
resistors)”) before coming to the RfG day. The that OK, but other people in my team got
workshop was held on September 6, 2007. frustrated, they did not feel comfortable.
In the days following the RfG day, a lot of Before we discussed this I saw it was
reflections, dialogues, rumors and stories becoming an issue.” Middle manager
circulated through the office. The effects of this
energizing event and phase had clearly affected Several other changes were implemented
the mental models the employees were now to support continuation of sense-making and
going to operate in. Sense-giving metaphors sense-giving. The regular newsletter sent out
and symbolic language passed into daily use. after the RfG day was restyled to better focus on
Examples included “This coffee is not 2bPR” to the journey of Microsoft NL toward becoming
joke about the quality of coffee, and “What an a people-ready organization. A new dedicated
anti-people-ready machine” for a non-functioning 2bPR online portal was designed, launched
printer. and linked to the main intranet page. Messages
from the general manager, key actors and
“There was this enormous positive quartermasters were published through various
energy throughout the organization. communication channels (magazines, on the
More understanding of—‘ah, that is newly designed online portal, email and blogs).
what it’s about. And I still can decide a These messages were directed at potential
lot myself, actually more, a real feeling of sense-makers within the organization with the
empowerment. And they will invest in me.’ aim of changing the conversations and informal
And ‘gee what cool things will we be doing knowledge sharing within the organization.
together.’” Steering committee member Most messages were designed to appeal to
emotion and self-activation, focusing on growth
Participants indicated the most valuable of the individual and the organization, on the
2bPR sessions were those with the management opportunities of action and change and on the
team and people managers. In these sessions the difficulties of changing habits and organizational
vision and concept of 2bPR was shared across routines. Often topics were chosen and
teams and divisions and within existing teams. communicated in a way that was highly linked to
Those present had engaged in making sense of daily experiences of knowledge workers in the
the 2bPR concept and thus increased knowledge Netherlands (e.g., traffic jams) and where change
sharing and social networking beyond their usual would bring a solution. Topics were typically
colleagues. Directly after the RfG day employees

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Achieving High Performance in a Mobile and Green Workplace

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

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Achieving High Performance in a Mobile and Green Workplace

Box 2: New Ways of Working and Sustainability Behavior


At the beginning of the journey to the mobile and green high performance workplace, Microsoft NL decided to integrate
environmental sustainability—i.e., the reduction of individual employee CO2 emissions—with the new ways of working. Its
objective was a 30% reduction in emissions within five years. A detailed study was executed concerning the relationship
between employee motivation, ecological behavior, productivity and work/life balance.26 The company wanted to know
the extent of and why employees were doing things to support environmental sustainability in their daily activities. These
activities were grouped into five clusters: commuting, virtual work, energy savings, paper savings and communication
about ecological behavior. Finally, each employee was presented with three scenarios and asked to determine their impact
on productivity and work/life balance.
The first scenario involved mobile work. The second involved working at the office and travelling by train. The third
involved working at the office and travelling by car. In summary, the results indicate:
• Employees with a very high level of sustainability motivation (so-called integrated regulation27) were adopting more
carbon-neutral commuting behavior (for example travelling by train) and were communicating about the environment
with their colleagues more often.
• Employees with a high level of sustainability motivation (so-called identified regulation) were often opting to work
virtually and save paper.
• There is support that, compared with commuting to the office, working virtually (from home or another location of
one’s own choice) results in an improved work/life balance and a higher productivity level. Working while travelling
on the train emerged as having a positive influence on work productivity, but not on work/life balance. Individuals
who tend to behave in an ecologically friendly way because they think it is sensible and reasonable to do so, tend to
use and send documents and files in digital format rather than printing them; in general, they avoid printing as much
as possible. Moreover, they tend to use communication tools to reduce work-related commuting. For example, they
attend video- and teleconferences, and use instant messaging, email or the phone to avoid travelling to meetings.

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

both for productivity and environmental Appendix 1: Research


sustainability.
Methodology
5. Explore Opportunities with Clients
and Partners We studied Microsoft NL between 2007 and
The intensive use of social media and 2012 using a mix of research methods. First, we
applications on mobile devices makes it easier to developed an online survey to measure work,
connect with business partners and customers. the use of technology and its impact on five
Business value is more and more generated individual performance dimensions: employee
by business partners organized as a business satisfaction, work/life balance, productivity,
network than by an individual company.28 job flexibility and innovativeness. We measured
Experiences with the new ways of working these dimensions three times: in 2007 before
should therefore be shared openly with partners the move to the new Microsoft NL office building
and clients, so that opportunities provided by the (n=268); just after the move into the building in
mobile and green high performance workplace 2008 (n=293); and in 2010 one and a half years
can be jointly explored. after the move into the new building (n=366).
The quantitative results of the online surveys
Concluding Comments were presented and discussed in detail with the
This article has presented the case of executive team of Microsoft NL responsible for
Microsoft NL, which implemented new ways of the new ways of working transformation. The
working with mobile work technologies that met team included the general manager, the real
its high performance goals. We have analyzed estate and facilities manager, the HR manager,
the transformation to the mobile and green high the technology manager, the financial manager,
performance workplace from three perspectives: the public relations/communications manager,
people (improved perceived productivity, the training and readiness lead manager and the
work/life balance), place (where work is business marketing manager.
performed with a lower carbon footprint) Second, we used qualitative research methods
and the enabling technology. In addition to (interviews and observations) to understand
describing the change management program specific aspects, such as digital work styles,
and the challenges that needed to be faced, this change management, virtual team performance
case provides an example of how the new ways and ecological behavior. In total, around 150
of working can help an organization to address interviews were carried out with members of
some of its environmental sustainability goals. Microsoft NL’s executive team and employees of
Thus, by embracing mobile work technologies, various business units.
businesses can have the best of both worlds: The research was conducted within the
on the one hand, improvements in employee- Erasmus@Work research program (www.
level productivity and work/life balance, and newworldsofwork.nl), an interdisciplinary
reduced organizational costs; on the other hand, program at Rotterdam School of Management,
reductions in employees’ and the business’s Erasmus University. Erasmus@Work involves
carbon footprint. a team of experts and researchers from the
departments of Decision and Information
Sciences, Personnel and Organization, and
Marketing Management. The research program
develops knowledge and insight about new ways
of working and provides answers to corporate
questions, taking into account the pervasive use
and impact of new technologies for collaboration
and cooperation. As well as Microsoft NL, since
2007, the program has measured the work
dimensions and individual performances of
28  Van Heck, E. and Vervest, P. “Smart business networks: How
approximately 7,000 knowledge workers in
the network wins,” Communications of the ACM (50:6), 2007, pp. other firms.
28-37.

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Achieving High Performance in a Mobile and Green Workplace

Appendix 2: Environmental been a visiting professor at the Helsinki School


of Economics and the Ludwig-Maximilians
Sustainability Actions
University in Munich, and, most recently, visiting
scholar at MIT Sloan School of Management.
Microsoft NL’s Environmental
Sustainability Actions Peter van Baalen
Peter van Baalen (pbaalen@rsm.nl) is associate
People Create awareness by employees to identify
motivations for environmentally friendly professor of Information Management, head
behavior. of the Decision and Information Sciences
department, academic director of the Center of
Create easy-to-use environmental sustain-
ability actions (switch off printer, reduce e-Learning and co-director of the Erasmus@
heating and use energy efficiently, collect Work Center. He teaches in the areas of
garbage). knowledge management, social and knowledge
Create CO2 dashboard to track the monthly
networks, and new (and social) media. His
and yearly CO2 output of electricity, gas, research focuses on (online) knowledge sharing,
travel and garbage data. IT-adoption and -implementation, online
communities, new media, e-learning and new
Provide positive incentives to become CO2
neutral. ways of working. He has published eight books
and more than 100 articles in national and
Measure the reputation of the firm with
international journals.
regard to environmental sustainability.
Place Reduce the size of the office building. Nick van der Meulen
Reduce the energy efficiency and carbon
Nick van der Meulen (dmeulen@rsm.nl) is a
footprint of both the office and home doctoral candidate at the Erasmus Research
buildings. Institute of Management (ERIM), Rotterdam
School of Management, Erasmus University. He
Recycle garbage.
holds a BSc in business administration and an
Reduce carbon output related to commut- MSc in business information management, both
ing by using electric cars, public transport
from Erasmus University. His primary research
and bikes.
interests concern new working practices and
Stimulate the use of alternative commuting environments, and their effects on knowledge
transport by flexible work arrangements in worker performance.
time and space.
Technology Introduce green IT. Marcel van Oosterhout
Marcel van Oosterhout (moosterhout@rsm.
Provide CO2 dashboard software.
nl) works as a senior researcher and project
Reduce CO2 output of data centers. manager at Rotterdam School of Management,
Erasmus University. He is responsible for
orchestrating research collaboration with
About the Authors
corporate and public partners. His personal
research interests include the application of IT in
Eric van Heck ports and global supply chains, business agility
Eric van Heck (evanheck@rsm.nl) holds and the role of IT and the effects of new work
the Chair of Information Management and practices on people, profit and planet.
Markets at Rotterdam School of Management,
Erasmus University, and teaches and conducts
research into the strategic and operational use
of information technologies for companies and
markets. He is co-director of the Erasmus@
Work Center. His former roles include that of
Erasmus Research Institute of Management’s
(ERIM’s) Director of Doctoral Education. He has

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