Satya Nadella (Microsoft CEO) – Why Managers Matter as Much as Tech | 2022 Future of Work Conference at Wharton (May 2022)

Chapters

Abstract

The Evolution of Work Culture and Productivity in the Digital Age

In an era marked by rapid technological advancements and evolving work patterns, organizations like Microsoft are at the forefront of redefining work culture and productivity. This article delves into the paradigm shift in the future of work, emphasizing the importance of hybrid work models, flexibility, and well-being. It explores how Microsoft, under Satya Nadella’s leadership, has reimagined its culture focusing on collaboration, continuous learning, and psychological safety. Additionally, we examine the company’s innovative approaches to combat network siloing, effective remote onboarding, and the redefinition of managerial roles, all of which are vital in shaping the modern workplace.

The Future of Work: A Paradigm Shift

Hybrid Work as an Evolving Reality:

The shift to hybrid work is not just a temporary trend but a fundamental change in our approach to work. This model requires an adaptable collaboration matrix encompassing both remote and in-person interactions, along with synchronous and asynchronous communication.

Hybrid Work as a Dial:

Organizations must accommodate various work styles and collaboration modes. The hybrid work model should be viewed as a “dial” rather than a “switch,” allowing for flexibility in choosing between synchronous and asynchronous collaboration, remote and in-person interactions.

Flexibility as a Spectrum:

Remote work should not be seen as a binary choice but as a spectrum of possibilities. Embracing this approach allows for more dynamic and responsive work environments.

The Triple Peak and Asynchronous Work:

The triple peak phenomenon highlights the need to support time-shifted work, especially in multinational companies with diverse time zones. Employees engage in asynchronous work, such as checking emails and preparing for the next day, before and after traditional work hours. Organizations should prioritize supporting asynchronous work to ensure effective collaboration and productivity.

Redefining Physical Workspaces:

The design and purpose of physical workspaces are evolving to meet the diverse needs of hybrid work models. Different tasks and meeting types now necessitate varied physical environments, reflecting the changing nature of workplace interactions.

The Changing Physical Space:

The purpose of physical workspaces is evolving, with employees seeking focused time and specific types of meetings. Office space design should adapt to accommodate focused work, collaboration, and customer meetings. Physical space remains a valuable collaboration tool, albeit used differently in hybrid work scenarios.

Rethinking Productivity and Well-being

Balancing Flexibility and Disconnection:

The challenge lies in maintaining a balance between the flexibility offered by hybrid work patterns and the need for employees to disconnect, ensuring their well-being and productivity.

Triple Peak and Well-being:

Increased work-activity in the morning, afternoon, and just before bedtime is observed. The hybrid peak in work activity is driven by the desire for flexibility. To ensure well-being, good old-fashioned management practices and nudges are needed, such as setting norms against weekend emails.

Microsoft’s Approach to Well-being:

Microsoft is exploring new strategies to promote well-being in hybrid work environments. This includes encouraging good management practices and implementing systems to discourage out-of-hours communication, like weekend emails.

Combating Network Siloing in Remote Work

The Impact of Remote Work on Networking:

The pandemic-induced shift to remote work led to increased network siloing, reducing opportunities for serendipitous connections that are crucial for learning and innovation.

Microsoft’s Digital Solutions:

To address this, Microsoft is leveraging digital tools to facilitate knowledge sharing and strengthen intra-company connections. The company is also reimagining physical workspaces to be more adaptable to various work needs.

Tackling Siloed Networks:

Viva Topics is used to create an auto-generated, AI-generated wiki of work artifacts, people, and topics. It fosters serendipitous connections by helping employees navigate and build up knowledge capital. Research is underway to identify emerging team norms regarding the purpose of in-person gatherings to design physical spaces accordingly. Making the physical space modular allows for malleability and adaptability to different types of work.

Onboarding and Managerial Capability in the Remote Era

Effective Remote Onboarding:

Direct manager connections are essential for effective onboarding in remote settings. Microsoft is experimenting with new onboarding approaches that emphasize mentorship and virtual team-building.

Great Onboarding Experiences:

Microsoft takes a full-service concierge approach, with managers taking responsibility for onboarding. Focus is given to provisioning benefits, paperwork, and introductions to relevant people. A senior leader sets up and introduces new hires to their teams, allowing for one-on-one interactions. Interns who had great managers who invested in their onboarding experience were more likely to want to return to Microsoft.

Managerial Capability and Culture:

The importance of effective management has become increasingly evident. Microsoft’s “model coach care” framework highlights essential skills for managers, proving crucial for the company’s success during the pandemic.

Building Managerial Capability:

Managerial capability is critical for tech companies to succeed. Leadership and management go hand in hand with technological excellence. Microsoft recognizes the importance of investing in and developing managerial skills.

Model Coach Care Framework:

A framework developed by Microsoft to define the essential skills managers should possess:

– Model: Clarifying expectations, setting goals, and providing feedback.

– Coach: Developing direct reports, helping them learn and grow, and supporting their career development.

– Care: Building relationships, showing empathy, and creating a supportive work environment.

The framework has been beneficial, especially during the pandemic, and has helped to underscore the importance of great everyday management.

Redefining Microsoft’s Culture under Satya Nadella

Cultural Shift Towards Collaboration:

Satya Nadella initiated a significant cultural shift at Microsoft, emphasizing collaboration and growth. This involved re-grounding the company’s purpose, adopting a growth mindset, and encouraging leaders to be open to feedback and self-criticism.

Building Psychological Safety:

The company focuses on creating a culture of psychological safety, especially for marginalized groups. This involves understanding diverse experiences, fostering empathy, and being receptive to the impact of external events on employees.

Shift from competition to collaboration:

Under Nadella, Microsoft moved from a culture of internal competition to one of collaboration and teamwork, emphasizing a shared purpose and a growth mindset.

Growth mindset for constant renewal:

Nadella encouraged employees to embrace a growth mindset, learning from mistakes and seeking continuous improvement, fostering a culture of openness to feedback.

Vulnerability and admitting mistakes:

Nadella emphasized the importance of vulnerability and admitting mistakes to create a culture of psychological safety, setting an example by admitting his own mistakes and encouraging others to do the same.

Creating a safe space for psychological safety:

Microsoft aimed to create a systemically safe environment where employees felt comfortable speaking up, admitting mistakes, and sharing ideas without fear of reprisal.

Challenges for marginalized groups and empathy:

Nadella acknowledged the challenges faced by marginalized groups in contributing due to a lack of psychological safety and encouraged leaders to understand diverse experiences and ensure inclusivity.

Flexibility and empathy during the pandemic:

Nadella emphasized flexibility and empathy during the pandemic, recognizing that employees faced unique challenges and needed support to navigate them.

Recognizing the impact of broader societal issues:

Nadella acknowledged that societal events could impact employees’ well-being and performance and encouraged leaders to create space for employees to address these issues and their impact on their work lives.

Lightning Round Insights and Future Predictions

Insights from Adam Grant:

Adam Grant’s perspectives on teaming and learning systems highlight the importance of collaboration and continuous learning in the workplace.

Navigating the Future of Work: Hybrid Work, Flexibility, and Collaboration:

Adam Grant introduces the concept of viewing hybrid work as a “dial” rather than a “switch.” This metaphor emphasizes the need for organizations to accommodate various work styles and collaboration modes.

Future Work Predictions by Satya Nadella:

Nadella envisions a future where technology is democratized across sectors, contributing to global economic growth. He aspires to achieve a global average economic growth rate of 5%, emphasizing the role of technology in healthcare, education, energy transition, and credit mechanisms.

Nadella’s Future Career:

– Nadella expressed interest in pursuing a career as an organizational psychologist and teaching at a business school.

Working at Microsoft:

– Nadella suggested that individuals who want to make others cool should consider working at Microsoft, while those who want to be cool should look elsewhere.

Worst Career Advice:

– Grant advised against waiting for the next job to do one’s best work.

Rethinking in the Past Year:

– Grant reflected on the role of multinational companies in building bridges across people.

Poetry or Cricket:

– Grant described cricket as a game that has taught him about leadership, life, and outlook, likening great spin bowling to poetry in action.

Da Vinci and Learning:

– Nadella compared Grant to Da Vinci, suggesting that Grant is on his way to becoming a learn-it-all.

Next Learning Goal:

– Grant expressed excitement about understanding the drivers of the next level of economic growth and how to achieve an average global growth rate of 5%.

Democratization of Technology:

– Grant emphasized the need to democratize technology to improve healthcare, education, energy transition, and access to credit.

Conclusion

The transformation in work culture and productivity, as exemplified by Microsoft, signifies a broader shift in the corporate world. Embracing hybrid work models, prioritizing employee well-being, and fostering a culture of collaboration and continuous learning are crucial for organizations to thrive in the future. This evolution reflects a deeper understanding of the changing dynamics of work in the digital age and the need for businesses to adapt to remain competitive and sustainable.

Notes by: WisdomWave