Microsoft Forecasts a Hybrid New Normal of Work in Asia-Pacific

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Released whitepaper assesses the key trends shaping Asia Pacific’s workforce, and the critical role of organizations, people and technology in realizing a hybrid workplace


-29 JULY 2020 – As the COVID-19 pandemic continues to
transform our daily lives, Microsoft, with research from TechRepublic Premium,
looked into the impact the pandemic has had on the region’s legacy work styles,
business operations and how it has accelerated an increase in overall technology
adoption, realizing a hybrid new normal of work.

Microsoft Forecasts a Hybrid New Normal of Work in Asia-Pacific

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Through a
qualitative research study the whitepaper, titled “Transitioning
Asia-Pacific to a New Normal of Work
“, sees business and
thought leaders across industries — banking, healthcare, education, telecommunications,
research, and professional consultancies — share their insights on how organizational cultures in Asia-Pacific are evolving
to a new paradigm of work.


“As different parts of the world were hit by COVID-19,
life and work were changed overnight for everyone,” said Kady Dundas, Head of Marketing, Microsoft Teams, Microsoft Corp.
“All of a sudden we’ve gone from working in conference rooms to working in living
rooms, and when you do that you have a high dependence on video. We know that
we have about 200 million meeting participants each day, which equates to 4.1
billion minutes of meetings[1]. Those data points show
the tremendous movement to remote work.”

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Technology: The Enabler

Amid the
pandemic, Microsoft found that while organizations have prioritized technology
adoption to enable remote working environments and
overall business transformation, the change was not driven through technology


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“The technology side has been relatively
straightforward,” said Dr Joseph Sweeney, IBRS Advisor and Future of Work
. “When COVID-19 came and everyone had to start working from home,
Microsoft Teams was an obvious and natural tool to push out. It was already
there, and the environment is familiar to anyone using Microsoft Office 365. It


A forced mindset change was in play encouraging organizations
to rethink ways of working, how individuals, groups, and managers
interact with one another and the change management needed to adjust to the new
normal of work focusing on the emotional impact of the change.


the reluctance to allow remote work has to do with a quite outdated concept of
how managers need to manage — for instance, you need to be able to ‘see’ people
to police that they are doing what they are meant to,” said Sarah Kaine, Associate Professor,
Management Discipline Group and Core Member,
CBSI – Centre for Business and Social Innovation, University of Technology, Sydney.


Emerging Trends in
the New Normal of Work

Some of
the emerging trends that organizations need to be aware
of as they plan for the hybrid new normal of work include:


  1. The risk
    of burnout
    — Organizations need to be mindful of the new perception
    of availability.  According to IBRS Advisor and Future of Work Expert, Joe
    , one common response amongst people in their jobs is to “work
    harder and not switch off.” Those who have started working from home are
    fielding calls from their bosses late into the evening, underlining the need to
    re-draw boundaries for out-of-hours contact.

  2. Career progression concerns — Organizations
    will need to reassess how performance is measured. Collaboration tools can measure activity but not the value that an
    individual has brought to the organization. Organizations are
    now finding that it is the “introverts” that are delivering while working from
    home, while the “star player” extroverts are no longer the center of attention.

  3. The need for flexibility and empathy — Research finds that nearly half (47 per cent) of
    people working from home reported managing at-home distractions as a challenge[2]. Organizations as
    well as managers and teammates should do their part to not
    only help employees create a distraction-free environment but also be more
    flexible in the delivery of work and empathize with people’s challenges of
    working from home.
  4. Tech training and preparedness — As
    technology becomes a growing staple for employees, training will need to go
    hand-in-hand to unlock the full potential of hardware and software. “There have been people who were resistant to change —
    it was usually the seniors, because they never needed to learn how to use
    technology. They always had IT support in the room when they needed it,” said
    Dr. Nitin Paranjape, CEO and Founder, MacOffice Services Private Limited based
    in India

  5. Incorporating a social element — Organizations need
    to intentionally focus on policy and company culture rather than raw
    technology. The Microsoft Work Trend Index[3] released in April 2020 reflected
    this ongoing quest for human interaction — the number of people turning on
    video in Microsoft Teams meetings had doubled from before working from home
    became mainstream. Beyond enabling video conferencing, organizations need to
    find ways to encourage innovation, creative flow of ideas, and camaraderie that
    makes an employee feel that they are a valued part of an organization.
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The Future of Work
is Now and Hybrid

Microsoft’s FY20 Q4 Earnings call[4] which reported a 6 percent
revenue increase in Productivity and Business Processes this fiscal year,
Satya Nadella, Chief Executive Officer of Microsoft
shared, “The last five
months have made it clear that tech intensity is the key to business resilience.
Organizations that build their own digital capability will recover faster
and emerge from this crisis stronger.”


Undoubtedly, COVID-19 had accelerated the transition
to new ways of working and honed the focus on innovation across the region. At
the same time, social and cultural environments also have a considerable impact
on how organizations approach the new normal of work.


In some cases, organizations are in the process of
aligning themselves to the national government’s own response to the changing
nature of work. Hidekazu Shoto, Innovative
English and Information and Communications Technology (ICT) Teacher, Ritsumeikan
Primary School in Japan
shared how the primary school had to find ways to
respond to the changing regulatory environment around work that the government had
been implementing. “We just started a new working time system, to follow the
new labor laws in Japan. With that in mind, and each teacher’s individual circumstances
at home, we had to think about how to match compliance with flexibility,” said Hidekazu


countries where commutes are longer, organizations will find that more staff
wish to work remotely. “The appeal is often due to the convenience of
professionals being able to manage their own timing,” Andy Khoo, Maybank
Head of Customer Experience, based in Singapore
, said. “There’s less
transportation and time spent on the road — particularly in countries like
Indonesia, Thailand and India, where commutes can be long. For other places,
like Singapore, it’s simply that staff find they’re more productive when
working from home.”


countries with expensive real estate — such as Australia and Singapore — will
find financial benefit in transitioning to a model where office space is shared
and cycled among employees that spend part of the time in the office, and other
times working from home.

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The hybrid approach in the future of work reflects how
the lines of work and personal life are blurring. Microsoft’s second Work Trend
Index[5] found that beyond the
typical 9am-5pm work day, Microsoft Teams chats outside of the typical workday
(from 8-9 a.m. and 6-8 p.m.) have increased more than any other time during the
day, between 15% and 23%. Weekend work is spiking as well — Teams chats on and
Saturday and Sunday have increased over 200%.


To cultivate the future workplace, organizations would
need to accelerate the process of developing policies enabling individuals to
break away from the standard 9 to 5 hours, setting reasonable expectations
around availability and relooking performance indicators.


Great Place to Work Institute, Chief Operating
Officer, Alicia Tung based in China
said, “As far as emotions are concerned, we’re not there yet. But it is
happening. In ten years’ time, if I were to make a very broad prediction, I
would say 60-40 in terms of working in the office compared to working


Business leaders must
refresh their focus on policies that enable the upkeep of robust security
strategies and effective collaboration. As
lockdowns continue to ease across the region, the next step will be a renewed
focus on policy during this hybrid new normal of work.


For more information on how organizations throughout
Asia-Pacific are grappling with — and succeeding with — remote work, read the
full paper here.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) enables digital
transformation for the era of an intelligent cloud and an intelligent edge. Its
mission is to empower every person and every organization on the planet to
achieve more.

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Microsoft Forecasts a Hybrid New Normal of Work in Asia-Pacific

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Latest News

Strongest first quarter ever: Preliminary results of Deutsche Post DHL Group above market expectations

  • All divisions significantly increased EBIT in first quarter 2021; Group EBIT tripled to around EUR 1.9 billion
  • Free cash flow development continued positive trajectory and improved by more than EUR 1.4 billion to around EUR 1.0 billion
  • CEO Frank Appel: "The start into the new financial year was more dynamic than ever"

SINGAPORE - Media OutReach - 12 April 2021 - Deutsche Post DHL Group has today released preliminary results for the first quarter of 2021 and has raised the outlook for the current financial year. Preliminary operating profit (EBIT) for the first three months improved to around EUR 1.9 billion (Q1 2020: EUR 592 million). The positive development of the group's businesses seen in the fourth quarter 2020 has continued well through the first quarter 2021. In the first three months of the year the B2C shipment volumes remained high in all networks while the recovery in the B2B business continued.

"The start to the new financial year was more dynamic than ever. It proves that we have successfully geared our business to the right growth drivers. One year into the pandemic we experienced in the first quarter 2021 a sustained momentum in e-commerce and a significant stabilization in global trade with increasing air- and sea-freight volumes. Consequently all divisions reported a significant jump in earnings above market expectations. Global trade continues to recover and vaccine distribution is in full swing which makes me very optimistic for the rest of 2021 and beyond," said Frank Appel, CEO of Deutsche Post DHL Group.

All divisions optimally positioned for continuing e-commerce boom and growth in global trade

Express: The division reached an EBIT of around EUR 955 million in the first quarter 2021 compared to EUR 393 million in Q1 2020.

Global Forwarding, Freight: EBIT in Global Forwarding, Freight stood at around EUR 215 million in Q1 2021, clearly above previous year's Q1 of EUR 73 million.

Supply Chain: EBIT at Supply Chain came in at around EUR 165 million in the first quarter 2021 compared to EUR 105 million in Q1 2020.

eCommerce Solutions: eCommerce Solutions recorded a first quarter 2021 EBIT of around EUR 115 million, clearly above last year's Q1 result of EUR 6 million.

Post & Parcel Germany: EBIT in Post & Parcel Germany in Q1 2021 was around EUR 555 million (Q1 2020: EUR 334 million).

Earnings momentum mirrored in positive cash flow development and improved outlook

The continued positive business development is underpinned by a strong cash flow development; free cash flow amounted to around EUR 1.0 billion in the first quarter 2021. In Q1 2020 this figure was still negative at EUR -409 million.

In light of the strong earnings momentum, guidance for 2021 is adjusted as follows:

Group EBIT for 2021 is now expected to be significantly above EUR 5.6 billion (previous forecast: more than EUR 5.6 billion). Equally, the result for the DHL divisions is now seen significantly above EUR 4.5 billion (previous forecast: more than EUR 4.5 billion). EBIT for the Post & Parcel Germany division is no longer expected at around EUR 1.6 billion but above EUR 1.6 billion. The expectation of a Group Functions EBIT of around EUR -0.4 billion remains unchanged. Full year 2021 Free Cash Flow is now expected to be significantly above EUR 2.3 billion (previous forecast: around EUR 2.3 billion).

The Group will introduce a revised detailed guidance with the comprehensive disclosure for Q1 2021 which will be published as planned on May 5, 2021.

Deutsche Post DHL Group

Deutsche Post DHL Group is the world's leading logistic company. The Group connects people and markets and is an enabler of global trade. It aspires to be the first choice for customers, employees and investors worldwide. To this end, Deutsche Post DHL Group is focusing on growth in its profitable core logistics businesses and accelerating the digital transformation in all business divisions. The Group contributes to the world through sustainable business practices, corporate citizenship and environmental activities. By the year 2050, Deutsche Post DHL Group aims to achieve zero emissions logistics.

Deutsche Post DHL Group is home to two strong brands: DHL offers a comprehensive range of parcel and international express service, freight transport, and supply chain management services, as well as e-commerce logistics solutions. Deutsche Post is Europe's leading postal and parcel service provider. Deutsche Post DHL Group employs approximately 570,000 people in over 220 countries and territories worldwide. The Group generated revenues of more than 66 billion Euros in 2020.

The logistics company for the world.

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