Dynamic Work : Microsoft

Ferrari of Hammers

brucelynn — Thu, 20 Aug 2009 17:32:14 GMT

The brass-tacks business case for Dynamic Work is pretty straight forward – save money on under-used, un-used and mis-used office space and the stuff that goes in it. The benefits to carbon footprint, employee lives, collaboration and productivity, to name a few, are all just bonuses.

An important driver to these savings largely derive from the notion of ‘Pareto Efficiency.’ Pareto centres on allocating the right resources to the right usage. Also, sometimes referred to as the ’80-20 Rule’ referring to the notion that 80% of the benefits come from 20% of the resources. In the case of productivity, 80% of the productivity comes from 20% of the tools. As a result, productivity improves and costs drop if you invest twice as much in that 20% of the tools add remove the other 80% (though more practically you make the other lesser used ‘80%’ tools available on an as-needed pool basis).

Applied to the business workplace, all too many companies equip their workers with the equivalent of a standard, generic toolkit with pretty much all of the tools that they might need. Desk, chair, file cabinet, credenza, coffee machine, stationery, meeting rooms, work spaces, etc. Because they have to equip everyone with such a range of tools, businesses generally opt for the lowest common denominator versions of all of these tools. Maybe not bargain basement, but certainly not top of the range. Pareto suggests that if someone is using a ‘hammer’ 80% of the day, then getting that person the ‘Ferrari of Hammers’, even at the expense of taking away all of the other tools in the extreme instance, not only provides greater productivity return to the business, but also in most cases provides greater satisfaction to the worker.

This allocation is the heart of the win-win that provides the opportunity to businesses with Dynamic Work. Businesses can equip their staff with the ‘Ferrari of Hammers’ and they are happier (having such a great, central tool), more productive and in the end less costly (as the business pools the other tools as part of the bargain).

One of the pitfalls of poorly executed workplace transformations is when the company focuses solely on cost savings though pooling and consolidation. That approach becomes a pure ‘loss’ to the staff (they ‘lose’ 80% of the tools even though they only use them 20% of the time). Successful implementation of Dynamic Work has to involve a direct investment in a higher standard of ‘core tools’ in exchange for the surrender of those used less.

This principle is illustrated in my story ‘First Kill All the Office Buildings.’ The ‘tool’ in this instance was ‘facility for face to face collaboration’. The trade off was to jettison infrequently and non-optimally used cubicles, cavern-like conference rooms and expensive round the clock space for an exquisite venue and experience for a set time periodically.

The principle of Pareto has been applied extensively in the workplaces for employees’ own ‘life tools’, ie. their ‘benefits’, under the notion of ‘flexi-benefits’. The day care that is an important investment for a single parent may demand more of the benefit allowance than it would for an active single person who prefers the gym membership.

The IT functions of larger organisations are very familiar with this notion applied in the area of ‘systems virtualisation’. This technology has taken the IT world by storm in recent years with its gigantic ROIs and cost savings. The leaders in the field are VMware with Microsoft who both have countless case studies of big costs taken out of costly datacentres in very short time period. Again, the principle of Pareto applies. Previously, many systems all had an array of antiquated, sub-optimal, dedicated processing power. Virtualisaton ‘trades in’ the dedicated ‘tools’ (CPU, storage, chassis, etc.) for a shared or virtual system of the highest standard (upgraded hardware, upgraded software, etc.).

Footnote. The consensus seems to be that the ‘Ferrari’ of hammers is an ‘Estwing’ pictured above. It costs $23 on Amazon ($47 RRP) versus $10 for a ‘standard’ Stanley model. $13 premium might seems like an extravagance of nearly double the price. But for a carpenter’s central tool that would last nearly a lifetime, the incremental costs is easily covered by doing without ‘owning’ a couple of lesser used tools. If the hammer lasts 10 years and is used 50% of the time, then that is an incremental costs of 1 cent per day.

Transuming

brucelynn — Sun, 19 Jul 2009 11:24:49 GMT

At the heart of Dynamic Work lies the notion that key resources (like office spaces and desks), need not be fixed, but are more efficient, accommodating and eco-friendly when flexible and...well...dynamic.

Part of what is driving the trend to Dynamic Work are changes in the consumer marketplace and lifestyle often introduced to the workplace by the Gen Yers. And one trend which completely reinforces the flexible approach to Dynamic Work is ‘Transuming.’

“Cassandra Smith spends $800 a month renting designer handbags and leases a luxury condo in downtown Miami. Environmentalist Zoee Turrill helped create a bike-sharing program at the University of Denver. Though they might seem to come from different ends of the consumption spectrum, they have something in common: They're not buying things. The rise of rental or borrowing services catering from everyone from fashionistas to environmentalists has even spawned a marketing buzzword: the ‘transumer’... in this global recession, people are warming to the idea of renting, and not buying, certain goods — because of cost, ease or space considerations.”

In the past, businesses had no problem with dabbling in remote working for sales people and supporting flexible working for a few roles, but Dynamic Work is about pushing those concepts and advantages in every nook and cranny of an organisation. Similarly, consumers have traditionally had no problem renting a DVD, power drill or a trailer to lug stuff, but now the article points out people renting handbags, pets, bikes, books, “Ferraris, art, holiday homes and even racehorses” in every corner of their personal lives.

One business area where this shift to a more flexible rental model is very prominent is my heartland...software. Traditionally, people bought their software packages as they needed for their organisation. But, more recently concepts like Microsoft’s ‘Software + Services’ are being delivered in a rental model. The approach not only saves the business the costs of the initial outlay, but more importantly it saves the business the ongoing costs and concerns of maintaining and running it all.

Working Environments

brucelynn — Tue, 07 Jul 2009 13:02:42 GMT

One of the strongest points to the Microsoft New World of Work approach is its recognition of the diversity of work places, work roles, and workers themselves. The Microsoft Netherlands joint research piece with Erasmus University laid out a helpful grid to distinguish across 2 fundamental dimensions (see above). The report comments...

“Of course, mobile working is not a dichotomous variable. People work mobile to a greater or lesser degree. As we can learn from the mobile work quadrant below, telework is just one alternative. In the quadrant, different types of mobile working environments are distinguished based on two dimensions: frequency of changing worker location and location (fixed vs. multiple) (Schaffers et al, 2006).”

Great Places to Work

brucelynn — Sun, 14 Jun 2009 10:47:47 GMT

Microsoft has just won the #1 spot in the 2009 Europe’s Great Places to Work survey. President Jean Philippe Courtois called out a number of New World of Work initiatives that really showcased Microsoft’s exploitation of technology to enable dramatically new approaches to business...

“Our new office in the Netherlands is a flagship example of how we are creating a New World of Work with employees. The Amsterdam office is no longer a 9am-5pm destination – rather it is a ‘meeting place’ for when people need to come together. Underpinning the roll out of new working practices is Microsoft’s own Unified Communications technology. Equipped with a mobile phone, laptop and UC software, employees have the freedom to work anywhere and anytime that suits them. In addition, with UC Microsoft is saving more than $212 million annually in reduced travel and better productivity.”

The commendation cited a Belgian staffer’s commented on the impact of Microsoft’s ‘New World of Work’ vision...

“The New World of Work gives us complete flexibility to determine in a creative way how to do our projects and when we want to work. This gives me energy every day. It allows me to treat my family the way I want. It gives me the opportunity to do a number of things regarding my health and sporting activities. The way things are delegated allows me to work in a flexible way and to combine my job at Microsoft with my tasks as a mother.”

People Oriented Architecture - Definition

brucelynn — Wed, 25 Feb 2009 11:29:31 GMT

As I introduced in ‘Virtual Parallels,’ one of the intriguing developments inspiring my examination in ‘Dynamic Work’ is the parallels between increasingly flexible approaches to resourcing both knowledge work and computer work. In the latter realm of systems, the new approaches are often referenced under the rubric of ‘Services Oriented Architecture.’ The key word – ‘Services’ – refers to an approach to developing computer systems that moves away from monolithic programmes designed and built to do one thing or set of things, to an approach that is more based on a ‘federation’ of ‘components’ being assembled to build the capability required.

Many definitions of ‘SOA’ abound. Microsoft has its own resources on the topic that include a handy definition:

“SOA is a standards-based design approach to creating an integrated IT infrastructure capable of rapidly responding to changing business needs. SOA provides the principles and guidance to transform a company's existing array of heterogeneous, distributed, complex and inflexible IT resources into integrated, simplified and highly flexible resources that can be changed and composed to more directly support business goals.”

One could easily hijack that definition for a description of ‘Dynamic Work’

“Dynamic Work is a standards-based design approach to creating an integrated workplace infrastructure capable of rapidly responding to changing business needs. Dynamic Work provides the principles and guidance to transform a company's existing array of heterogeneous, distributed, complex and inflexible organisation and human resources into integrated, simplified and highly flexible resources that can be changed and composed to more directly support business goals.”

Community Productivity

brucelynn — Wed, 31 Dec 2008 12:04:00 GMT

Microsoft has been talking about the ‘New World of Work’ for several years now and as time and conditions have progressed so has the vision. An updated presentation came from Katherine Randolph, Josh Henretig and Nicole Brown in a partner blogcast called ‘Enabling Telework Through Unified Communications. Good for Business. Better for the Earth’.

I particularly liked Katherine’s opening line, “The office is no longer a physical place, but more an environment where they can collaborate whether they are face to face or whether they are remote.”

For me the NWOW represents a natural progression in Microsoft’s ‘productivity’ vision. At the outset, Microsoft was all about ‘personal productivity’ and the cornerstone product was Office. But the ‘XP’ generation introduced capabilities that were less about the tool itself and how an individual user used it and more about how the software was used in a context of a team or organisation. At this point, the vision of ‘productivity’ really expanded to one of ‘organisational’ productivity and paralleled the rise of Microsoft tools as an Enterprise standard not just on the desktop, but also on the server with products like Exchange, Sharepoint and SQL Server.

Now I think Microsoft’s vision is expanding even beyond the walls of the organistion. The benefits to the new approaches to work accrue not just to the bottom line of the P&L, but also to the broader social welfare, environment and economy. Sort of a ‘Community Productivity’ if you will.

Above and below are a few of my favourite slides from the presentation (click on the slide graphic to see expanded, easier to read version)...