Work Flexibility Management Opportunities and Challenges.

Work FlexibilityWork Flexibility

Management Opportunities and ChallengesManagement Opportunities and Challenges

Why Work Location Why Work Location Flexibility?Flexibility?

Good for the Good for the organizationorganization Reduces occupancy space, costs.Reduces occupancy space, costs. Improve work productivity and Improve work productivity and

morale.morale. War for TalentWar for Talent Business Continuity proof of Business Continuity proof of

concept.concept. Allows for unplanned, off hours Allows for unplanned, off hours

work.work. Increases incentive to perform!Increases incentive to perform!

Why Work Location Why Work Location Flexibility?Flexibility?

Good for Good for employeesemployees A non-cash form of compensation, A non-cash form of compensation,

reduces employee travel expense reduces employee travel expense and travel time.and travel time.

Improves retention, can be a Improves retention, can be a significant differentiatorsignificant differentiator

Professional treatment of Professional treatment of professionals.professionals.

It’s a significant culture It’s a significant culture changechange Top management buy-in is Top management buy-in is

requiredrequired Lead by exampleLead by example Provide toolsProvide tools

Voice Conferencing/Remote AccessVoice Conferencing/Remote Access Better meeting preparationBetter meeting preparation Efficient meetingsEfficient meetings

Takes time for people to believeTakes time for people to believe It depends on the jobIt depends on the job

Business Policy Business Policy considerationsconsiderations Work visibility/measurementWork visibility/measurement FacetimeFacetime Focus on resultsFocus on results

Must have happy clientsMust have happy clients Must have happy managersMust have happy managers

Equity IssuesEquity Issues Mandated versus optional Mandated versus optional

flexibilityflexibility Reimbursement/extra costsReimbursement/extra costs

Policy considerations (cont)Policy considerations (cont)

Role of PersonnelRole of Personnel To document or not to documentTo document or not to document Mandatory review, not a Mandatory review, not a

permanent commitment.permanent commitment. Not a right, manager must be Not a right, manager must be

comfortable with performance.comfortable with performance. Employees must remain flexible Employees must remain flexible

to the needs of the organization.to the needs of the organization.

What about other work What about other work flexibility?flexibility?

Flexible time Flexible time Improves client coverageImproves client coverage Beats the rush hourBeats the rush hour

Condensed work weekCondensed work week Raises significant equity issuesRaises significant equity issues Raises coverage issuesRaises coverage issues

Nortel Confidential Information


Home-Based Works!

George StuartNC Digital Government SummitSeptember 2007


Original goals:• Add real estate capacity

• Reduce costs

• Provide flexible work environment

Nortel began home-based worker program in 1994

2006 & 2007 Alfred P. Sloan Award for Business Excellence in Workplace Flexibility

2x recipient of Fortune 1000 “Excellence in Telework” award from the International Telework Association

Pioneer in Home-Based Working


Mobility at Nortel

During June 2007:

• 70% of employees carried laptop computers

• 18,723 employees used a UC or VoIP soft client

• 90% of laptop users remotely accessed the corporate network

• 9,003 employees used wireless LAN in a Nortel building

Nortel employees take full advantage of mobility enablers

Composite Mobility Index

169

174

178176 177

180 180

184

188190

166

162163

140

150

160

170

180

190

200

J J A S O N D J F M A M J


Mobility Options at Nortel

Workstyle Toolkit

Home-based worker

60-100% of time in home office; no dedicated Nortel office

Office equipment, ergonomic advice, broadband access, “office phone”

Part-time home worker / day extender

Standard office at Nortel, 20-40% of time at home

Laptop, Unified Communications client & access to corporate network

Global free-address worker

40-80% of time spent away from primary office

Laptop, plus BlackBerry or cell phone. UC client with find me / follow me voice service

Local free-address worker

60-100% of time in Nortel building, but not at fixed desk

Laptop with VoIP client & WLAN. UC client with find me / follow me voice service

Customized employee toolkits based on workstyle


Integrated Work Environment

• Work drives space planning

• Work drives IT

• Work drives HR policies

Three areas work in concert to deliver business valuePotential 1 million ft2 reduction in footprint

A holistic business model

Real Estate

Workspace

Human Resources

People

ITTechnology

IWE


JOB FUNCTIONMeasurable activities with beginning & end pointsMinimal face-to-face interaction

Selecting Home-Based Workers

EMPLOYEE FITIs a high performerUnderstands job well & manages own work planWorks with remote teams

MANAGER AGREEMENTManages by resultsDrives decision-making down in the organizationProvides regular coaching & feedback

Relative Participation by Function

- 0.5 1.0 1.5 2.0

R&D

Finance

Operations

Median

Marketing

Corporate

Customer Serv.

IT

Sales


Teleworking Concerns and Solutions

Concerns Solutions

TechnologyNeed to keep the technology simple, secure and cost-effective

Implement standard VPN architecture over broadband with “always on” telephone

Management How will I know they are working if I can’t see them?

Communicate expectations clearly, frequently and openly

Manage by deliverables, not time “at work”

Teamwork Out of site/out of mind – “the invisible team member”

Remote team dynamics can easily become the norm

Home-based workers attend occasional on-site meetings


Success Factors

SET EXPECTATIONS

• Published corporate policy

• Voluntary participation

• Formal work planning

• Manager & peer support

• Office hours & reachability

• Scheduled “days in the office”

PROVIDE THE TOOLS

• Dedicated intranet site

• Home office design guidelines

• Manager & employee training

• Computing & office equipment

• “Always on” phone set

• Corporate dial plan & voicemail


Business Continuity Planning

2003 NORTHEAST BLACKOUT

• 3 major Nortel sites & dozens of sales offices

• Technology already in place for teleworking: Audio conferencing, CallPilot voice mail with remote notification, SimRing, VPN-based remote access

• 5000 employees worked from home

• No lost revenues

• Customer & project deliverables all met

• Maintained 85% employee productivity

• Provincial energy conservation guideline met over 10 day period

2007 PANDEMIC BCP TEST

• Sunrise, FL site

• Derived huge benefit from hurricane preparedness

• Technology already in place for teleworking: Unified Communications, laptop PCs, VPN and dial-up remote access

• Sales teams able to maintain effective contact with customers

• 90% of healthy employees able to work effectively from home but…

• Need to consider wider geographic diversity for some business functions

Examples


Benefits

• Real estate• $22 million annual cost avoidance

• Employee productivity• 15% self-reported improvement• Manager concurrence

• Employee satisfaction• Significant job benefit• 2-3% annual opt-out rate

• Business continuity• Rarely designate standby facilities• Continued full operations during 2003

Northeast blackout• Ice & snow in NC have minimal impact


Formal Telework Policies

Digital Government SummitSeptember 6, 2007

North Carolina Department of Environment and Natural Resources

What is Telework?

Telework is work independent of location. • home• client’s office• satellite office• telework center• on the road• on the beach…

Strictly speaking, Telework is Substituing telecommunications for physical travel.


Toffler’s Third Wave

In 1988, Alvin Toffler popularised the idea of electronic home-working. He developed the concept of the “electronic cottage”, the home base from which men and women would reintegrate the world of work back into the rest of their lives. In 1994, Toffler said that “digital networks are at the heart of the Third Wave infrastructure and digital communications via computers, modems, faxes and telephones are at the heart of the revolution in long-range information access that, in the workplace, falls under the rubric of telecommuting.”


Background – NC Policy• October 1997: State Auditors Report: “Establishing a Formal Telework/Telecommuting Program for State Employees”.

• March 1999 – February 2000: State Teleworking Pilot Project with 150 teleworkers, 40 managers, 5 agencies

• July 1999: Executive Order 155 provided momentum to the pilot and encourages employers in NC to adopt commuting alternatives to relieve traffic congestion

• July 1999: SB 953 established goal of reducing employee vehicle miles traveled by 20% without loss of productivity.

• August 2000: OSP Teleworking Policy published

• July 2005: DENR Telework Policy and Procedure published – currently with 89 teleworkers in 8 business units


State Telework Policy• Teleworking available to full time or part time (>/= half time) permanent employees.

• State Personnel gives guidance to agencies wanting to set up a program.

• Each agency must establish internal policy and procedure.

• Telework Agreements are written and signed.

• Compensation and benefits do not change when teleworking.

• An agency will provide reasonable assurance that materials, equipment and furniture supplied the employee at the alternate work location comply with safety standards.


State Telework Policy (cont.)

Advisory Note No. 1Teleworking programs must be designed to measure benefits of teleworking.

Advisory Note No. 2Teleworking is a management option; not an employee benefit. Teleworking is voluntary for the employee and discretionary for management.

Advisory Note No. 3Employee’s home work space is an extension of the agency work space. State liability for job-related accidents covers employee’s approved work hours designated work location.


DENR’s Telework Policy• Central coordination (at agency level) – local management (at division level).

• Management discretion to determine who can telework – not appealable to the State Personnel Commission.

• Formal signed agreements required for long-term teleworking.

• Management may approve occasional and short-term teleworking without signed agreements when productivity and/or program delivery will be enhanced.

• Divisions set up telework advisory committees


Telework Advisory Committee

Division committees advise the director:

• Identifying jobs/tasks suited to telecommuting

• Developing implementation guidelines and communication

• Providing guidance to the DENR coordinator and to participating

teleworkers/supervisors.

• Determine criteria for evaluating requests to participate in teleworking.

• Evaluating the effectiveness and efficiency of division teleworking programs

making recommendations to the director regarding continuation of the telework program.


Supervisor Responsibilities

• Know that employee can work w/o constant face-to-face.

• Be results-oriented – with clear, measurable objectives.

• Be flexible and open to ideas.

• Keep an open, positive attitude toward teleworking.

• Provide timely and constructive feedback.

• Facilitate open communication.

• Attend orientation sessions for managers.

• Establish performance standards.

• Attend training sessions.

• Sign and abide by a Teleworking Agreement

• Participate in surveys, focus groups, and evaluation.


Employee Responsibilities

• Ability to work independently.

• Require minimal supervision / face-to-face interaction.

• High level of job knowledge and skill.

• Results oriented; set priorities and deadlines.

• High level of productivity.

• History of reliability.

• Understand office operations.

• Keep supervisor informed of progress and/or problems.

MORE…


Employee Responsibilities (cont.)

• Know the organizational structure and who makes what decisions.

• Mutual trust and respect with the supervisor.

• Performance ratings at the good or above level.

• Safe, adequate, and secure work site free from interruptions.

• Clear and measurable performance standards

• Attend scheduled training

• Sign and abide by Teleworking Agreement

• Participate in surveys and focus groups


Fundamentals of a Teleworking Policy

Select appropriate jobs for teleworking. Jobs that can be done (at least in part) away from the office. Identify jobs up front so employees don’t have to guess which jobs are eligible for the program.

Manage based on performance and results. Knowledge-based economy – It is important to get the job done, not when, where or how many hours it took. Set productivity objectives and measure achievement. Trust employees to manage their time.

Articulate teleworking policy. A written policy – outline the company’s positions on eligibility, performance measurements, equipment provision, technical support, ownership of physical and intellectual property, and requirements for in-office appearances.

Recognize management resistance. Many managers are uncomfortable losing physical proximity to their employees. Involve supervisors in every aspect of the teleworking program. Ask managers to help determine which employees should be eligible.

Train and educate. New patterns of work need a higher standard of management so managers themselves should be trained in the best ways of managing virtual workers. Employees also need to learn to work differently and adjust to a more independent environment.

S.M.A.R.T. Teleworking Tips for Employers – Source: WorldatWorkFor more information on teleworking, visit www.workingfromanywhere.org or www.worldatwork.org.


http://www.workingfromanywhere.org/

http://www.worldatwork.org/

Typical Telework Agreement

• Between supervisor and employee• 12 month duration• Details schedule – usually no more than 2 days / week teleworking• Details official duty station (i.e. the office) and alternate duty station (usually home).

• Includes conditions to alter the schedule if office demands occur with advance notification• DENR can inspect the alternate duty station to ensure proper maintenance of DENR equipment and safety compliance (during normal work hours with 24 hours advance notice).•Employee keeps an activity log


Typical Telework Agreement


Advantages / Disadvantages

– State Auditor’s Report,

October 1997


Contact Information

(919) 733-4908call me

or visit our website:

www.enr.state.nc.us


[email protected] me

QUESTIONS?

Work Flexibility Management Opportunities and Challenges.

Documents

work productivity

hours work

work location flexibility

job slide

flexible time flexible

coverage issues

significant equity issues

travel time