The telework revolution: time to put Dracula in charge of the bloodbank
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Tim fawcett from Cisco presents 'The telework revolution: time to put Dracula in charge of the bloodbank' at the Coworking Conference Australia
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The telework revolution: time to put Dracula in charge of the bloodbank
- 1. Mobile working: Time to put Dracula in charge of the bloodbank Tim Fawcett General Manager Government Affairs & Policy 1 March 2013 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1
- 2. Flexible work visionary? “…makes it possible for me to do one thing today and another tomorrow, to hunt in the morning, fish in the afternoon, rear cattle in the evening, criticise after dinner, just as I have a mind…” • German Ideology 1845 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
- 3. Is Marx relevant? © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
- 4. The global economy in transition • World GDP projections (2011-12 Budget paper no. 1, statement 4) © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4
- 5. Global Asia Australia 142 Million 4.6-Fold 8.7 Billion 4.4-Fold More Devices Faster Broadband Speeds 19 Billion 4-Fold Increase Growth More Internet Users Catalysts More Rich Media Content 3.4 Billion 2 Years Video /Sec 1.7 Billion 287 Days 23 Million 3.8 Days © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
- 6. Pressure on families “Finding a way of meeting Among 10-11 year olds the demands of paid work, as well as taking • 35% said their father care of children is difficult for many parents and worked too much underlines the need for workplaces to continue to adopt more flexible • 27% said their mother approaches to allow their worked too much employees to manage their family responsibilities” AIFS Studies Director, Professor Longitudinal Study of Australian Children: Families make all Alan Hayes the difference: Helping kids to grow and learn, May 2012 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6
- 7. Gridlock! © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
- 8. Source: Telegraph Mirror, 9.10.12 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
- 9. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9
- 10. Significant portion of the workforce expects flexibility © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
- 11. 1.3 Billion = Estimated world‟s mobile worker population by 2015* *IDS estimate © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
- 12. Virtual The Urban Hub Corporate Colleagues Leveraging Virtual technology to give Freelancers virtual workers a Extension of feeling of being in a freedom to shared corporate environment Independent virtual employees – work workers using anywhere, nascent e-mail Leveraging non- anytime… company owned networks shared workspaces © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
- 13. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13
- 14. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14
- 15. National Telework Week 2012 Findings: • Different management styles • Trust a key factor • Specific collaborative IT tools Results: • Positive attitude to work • Lower stress through greater control • Family/work balance improved • General feeling of wellbeing © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15
- 16. National Telework Week 2012 Findings: • 25,000 additional jobs • 10,000 in regional and rural areas • GDP grow $3.2B in 2020-21 • 66% mature workers • 73% part-time workers • 74% not in labor force as carers • 66% disabilities • 70% regional/remote locations „The biggest structural change to the labour market this decade‟ © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16
- 17. National Telework Week 2012 Findings: • Practical guide to managing a flexible workforce • Higher participation, more diversity • Risk of work intensification • Attitudinal change critical • Take the flexibility challenge – how could a flexible workforce overcome business challenges © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17
- 18. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18
- 19. Leveraging Cisco innovation that enables employees to focus on the work they do…not where they do the work… Enabling flexibility in where employees work Enabling flexibility in how employees work Competitive advantage for Cisco © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19
- 20. FWP as a Competitive Flexibility for Advantage Employee Well-Being Leverage FWP Common best practices as a means of attracting Experience Leverage workplace and retaining top flexibility and talent, continuing collaboration tools to to drive productivity Strengthen foundation identify different ways and showcase of consistent manager of working that Cisco industry best practices and global improve employee practice. employee access to well being (i.e. work flexible work practices life balance) Collaboration with Partners (Community of Practice) © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20
- 21. 3. Remote/Distant 4. Neighborhood 5. Workstation 1. Highly Mobile 2. Campus Mobile Collaborator Collaborator Anchored Highly mobile; Travels Internally mobile; Non-mobile employee Neighborhood-based Desk-bound, non- extensively to Interacts cross- who works frequently employee who is mobile employee who customer and partner functionally in face-to- with remote mobile within the performs highly locations; frequently face scheduled colleagues, and group area; interacts focused individual interacts with meetings; Often in frequently works from with, coordinates and work; some team customers leadership roles home manages teams interaction © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21
- 22. Part Time Employee works less than full-time hours Telecommute Work performed outside of a Cisco office Off / On Employees pauses work at Cisco for a 1-2-year period Ramp Flex Time Variation in when work is completed © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22
- 23. 41% of our employees work outside the U.S. 38% work in a different location than their manager 47% collaborate with people in different time zones 89% telecommute at least once a week classified mobile workers, though 43% work 32% that way 6% work in a fully remote manner Source: Cisco Work Profile Survey, 2010 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23
- 24. Incremental productivity gained by aligning with employee work preferences 44 hours/employee in commute avoidance, 3 million hours/year across Cisco Incremental productivity from using collaboration technology to avoid travel time while at work (i.e. between buildings 4.5 million hours/year, 65 hours/year per employee Real estate reduction over 2.5 years $22,000/year per employee Percent of saved commute time our employees use for work Sources: WPR Work Profile Survey, 2010; Working Mother Media, 2010 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24
- 25. 70% Important to 80% Very continue Important to working at Employee Cisco Satisfaction 50% 49% No Productivity 2000 management or increases Teleworkers technology barriers working from Surveyed ** to telecommuting home 97% would 49% saves recommend on commute teleworking to time their peers * January, 2012 Survey * Q1FY12 Survey © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 25
- 26. 4.6 Traditional Mobile Remote 4.4 4.2 4.0 3.8 3.6 3.4 3.2 3.0 Engagement Likely to Stay at Likely to Self-Reported Cisco Recommend Cisco Productivity Source: Pulse Survey, 2010, WPR Work Profile Survey, 2010 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 26
- 27. 4.2% 3.1% $118MM cost 2.0% savings Traditional Mobile Remote Average Voluntary Attrition Rate © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 27
- 28. 42.7% 40.4% 41.0% 40.8% 37.8% 38.4% 34.5% 32.7% 31.9% 34.0% 31.5% 31.7% 31.6% 29.4% 29.2% 24.8% 23.6% 23.2% 9.1% 9.7% 8.7% 8.6% 8.8% 9.0% 8.7% 9.5% 9.1% FY2008 FY2009 FY2010 FY2008 FY2009 FY2010 FY2008 FY2009 FY2010 Traditional Mobile Exceptional Remote Source: Cisco HRMS, Performance by Work Type, three-year trend, 2010 Outstanding © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 28
- 29. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 29
- 30. • Justify why new employees should not telework/flexible work • Use this as a talent attraction and retention advantage • Develop and encourage better managers • Policy, process, technology, engage, measure, impr ove. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 30
- 31. Thomas Carlyle, Edinburgh, 1866 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 31
- 32. Thank you. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 32
Editor's Notes
- I’m excited about the opportunity to spend time with you sharing Cisco’s journey with Teleworking and the ways in which we believe it is a competitive advantage for our company.
- Karl Marx, voted by a 1999 BBC poll as the most influential person of the 19th Century wrote about the way we organise ourselves as a society and the means of production. Marx wrote during a time of great economic and political upheaval and transition, the industrial revolution. When technological, social and economic change was occurring at a rapid rate. This is similar to what is happening now. Massive business disruption, massive and rapid technological change, huge changes in social organisations and families, massive global economic shifts.
- Francis Fukuyama wrote that history ended with the fall of the Berlin wall and that western liberal democracies would be the dominant political and economic hegemony across the world. Well, there is a small country about 8 hours flight north of Australia that John Howard recently described as Australia’s biggest customer. China is founded on the principles of Marxism so if you are a business or organisation that is seeking to do business in China, perhaps you might be interested in understanding their political economic system better. Alan Kohler recently hosted a talk by Loretta Napoleoni on this issue – why chinese communists make better capitalists than we do. It’s on the Radio National Big Ideas website.
- Revolution: economicThere is a massive shift in the global economy from West to the Far East with Australia’s tradition trading partners chaning.Australia is uniquely positioned to benefit from this shift provided it puts the right policy settings in place to capitalise on the opportunities. This includes a focus on improving productivity by capitalising on the mining boom through investment in productive infrastructure. The slope of this graph is alarming. By 2020, the Chinese Economy will be bigger than the US economy. For the first time in 100 years, the US will face an economic opponent that is bigger than it (and is also nuclear armed).
- Flexible working the key to helping people work their way. Supporting families.
- This is Paramatta Road, Sydney on a Sunday afternoon.
- Revolution: social Alan Jones – has been the target of attacks previously. But Jenna Price (a feminist academic and mother of 3) and NicLochner (a 21 year old University student) did what no other person of power has been able to do before – they hurt Jones where it matters most – in his hip pocket. 2GB is losing about $80k per day in revenue as Jones broadcasts free of advertising.He broadcasts free of advertising because Price and Lochnerorganised a social media campaign that forced dozens of lucrative advertisers to withdraw their spending from Jones’ show off the back of his comments about the PM at a private dinner. Revolutionary change.
- There is a dramatic cultural change taking place with generations entering the workforce. We see it in the prevalence of social media. For employees entering the workforce today, the internet is as important as other basic needs – food, water, shelter…What we see is that 1 in 3 employees would prioritize technology enabled flexibility and mobility over salary.2 of 5 college students and young employees would accept a lower paying job to have this flexibility.
- Every 2-3 years Cisco does an extensive survey of our approximately 70,000 employees work patterns, which provides valuable insight as to where our workforce is headed.Looking at this chart…the blue portion of the bar represents the percent of employees who view flexibility as a privilege, versus the green portion those who view flexibility as a right.What we see is that a significant portion of our workforce expects flexibility as a right not a privilege and this expectation is greatest in emerging countries where our business is growing the fastest.
- Federal Government’s Telework.gov.au website. Resources, partners, ROI Tool, sign up for telework week.
- Telework Congress event.
- Prime Minister Gillard launching National Telework Week
- Prime Minister Gillard launching National Telework Week
- Prime Minister Gillard launching National Telework Week
- Our vision for Flexible Work Practices at Cisco is to enable employees to focus on their work itself, versus where they do that work. This includes providing flexibility both in where employees work, but also in how they work collaboratively in a virtual environment.We believe that if we do this effectively, it creates a competitive advantage for Cisco.
- We have a multi-year strategy toward achieving our vision for workplace flexibility at Cisco. This starts with ensuring our employees have consistent access to flexible work practices and consistent expectations of how managers will support workforce flexibility.As we’re able to provide the common experience around flexibility which accomplishes our vision of flexibility “where people work” , we’re beginning to look at how we leverage flexibility to transform “how people work” and hopefully improve their work live balance and well being. We’re conscious that there is actually a shadow side of flexibility that could leave employees feeling less connected and having less balance between work and personal life.Ultimately we believe flexibility is a competitive advantage for Cisco, both in our ability to attract and retain top talent, as well as allowing Cisco to demonstrate the power of our technology with customers.
- We’ve evolved at Cisco to 5 different styles of work from those employees who sit at a desk on a day to day basis, to employees like our Sales force who are away from the office most of the time, interacting with customer. What we are finding is that work styles are shifting more from right to left…from workstation anchored to the boxes in the middle.
- Within these different styles of working…we offer 4 primary offerings in terms of flexible work.
- $151MMReflects enabling employee preference to telecommute more. If Cisco culture and management support aligned to that preference, it would translates to 3 million hours/year across the employee population and over $151 million in productivity (given current wage rates) WAGE RATE: Cisco global average USD equivalent hourly rate (excluding execs & interns) is $49.34 based on 2080 work hours in a year. $220MMTravel times savings comes from a reduced need to travel between buildings and sites to attend in-person meetings.Employees report that they spend up to 8 hours per week traveling to attend in-person meetings, with the average being 1.38 $100MMReported by WPR. This is the real estate cost avoidance by changing our space policy to transition to more mobile workers in San Jose. 69% Internal research indicates that when our employees save time through commute avoidance, they spend 69% of that time working…a true win/win for Cisco and the employeeThe average of multiple external studies by Working Mother Media, Dell Computer, IBM, Sun Microsystems have found a similar but slightly lower 60% of time saved commuting used for work.One study at BYU found that flexible workers can work 19 more hours before experiencing work-life conflict than traditional workers.
- We see this through our annual corporate employee satisfaction survey and the work profile survey…that mobile and remote employees have high levels of engagement
- They are far less likely to leave than more traditional workers, as evidenced by a three-year attrition analysis. The 1.1% reduction between Traditional and Mobile Workers equates to a $118MM cost savings due to lower attrition costsOn a base of 75,000 employees, the difference in employees leaving Cisco is 825 per yearMultiplying the 825 by an internally estimated turnover to salary ratio of 1.32, at an average base salary of $108,529, equates to $118.2MM
- Mobile and Remote workers also have higher performance ratings…with the bars on this chart representing the total percent of employees in Cisco’s two highest performance categories.
- Thomas Carlyle’s biography of the French Revolution was used by Charles Dickens as the basis for A tale of two citites. The answer to this problem is now known: what kind of work? Telework.
- First and most importantly we know adoption takes time. While the workforce is changing rapidly and new entrants in the workforce have very different expectations, we have large portions of the workforce who are still very traditionally oriented.As I mentioned before, we’ve found the balance of providing tops down corporate policy and technology, with organic culture change has proved sustainableAs with many aspects of employee engagement, being effective with flexible work practices requires strong managers who are capable of managing a virtual team.Finally, we’ve found that while providing employees the ability to telework presents many positive new opportunities, it also presents new risks, such as considerations around safety and security, not to mention the risk of maintaining an appropriate work life balance with our employees.
- Thomas Carlyle’s biography of the French Revolution was used by Charles Dickens as the basis for A tale of two citites. The answer to this problem is now known: what kind of work? Telework.