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Flexible working based on IT



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Flexible working based on IT Flexible working based on IT Presentation Transcript

  • Flexible Working based on IT
    [Table of Contents]
    1. What is Flexible Working?
    2. Today’s Flexible Working introduction cases
    3. KSF of Flexible Working
    4. Appendices
    April 8, 2010
    Seon Yeo Mi, Kim Hak Kyun
  • Contents
    What is Flexible Working?
    1. Introduction of Flexible Working
    2. Concept and definition
    3. Types of Flexible Working
    KSF of Flexible Working
    1. KSF of Flexible Working
    2. Successful implementation models
    3. Extraction of key factors
    Today’s Flexible Working introduction cases
    1. Foreign introduction case (1) US
    2. Foreign introduction case (2) Japan
    3. Cases in Korea
    4. Obstacles
    5. Related policies in progress
    6. Related systems and incentives
    7. Flexible Working and Green Life Practice Strategy
    1. Development of IT-based Flexible Working
    2. Changes after successful introduction
    3. Flexible Working introduction cases
  • With the environmental changes resulting from developments in IT field and spread of set of values which focus on quality of life, the change to flexible Working-Life Style is highly being promoted, and Flexible Working is standing out as a representative issue
    Ⅰ. What is Flexible Working? 1. Introduction of Flexible Working
    Background of Flexible Working
    • Changes in perception
    of work
    - Increased importance on
    welfare, health and culture
    • Appearance of
    IT-friendly workers
    • Diversification of
    employment form
    • Possible to use
    services anytime and
    "Government plans to introduce and actively promote
    'Flexible Working' system"
    [Press release of the Ministry of Public Administration and Security, Feb 16, 2010]
    • The Ministry(MOPAS) plans to introduce nine types of Flexible
    Working system in five fields (the system will be implemented
    in the whole administration in the second half of the year)
    Changes in
    Changes in
    Changes in
    perception of
    "Metropolitan Rapid Transit Corp. (SMRT) established 'Smart Office'"
    [Economic effect of mobile office establishment from Metropolitan Rapid
    Transit Corporation case analysis, KT Center for Economic and Management Research, Feb, 2010]
    • The operation cost 28.4 billion won was reduced for five
    years and 110 billion won-worth future innovation value
    was created
    Work Style Change
    Flexible Working-Life Style
    Locally dispersed
    Green Life
    in business
    "Korea to be the "global green leader" in Copenhagen Accord"
    - Reducing carbon emission by 30%, establishing a green
    research center, and hosting climate change conference in
    2012 were suggested
    - To achieve green IT
    • To reduce
    carbon emission
    • Movements of
    companies and public
    offices to local area
    - Outsourcing of various tasks
    • Increase of foreign market entries
    and of workloads in foreign country
    * U-Working standard reference model preparation and phased introduction project, National Information Society Agency(NIA)
  • Ⅰ. What is Flexible Working? 2. Concept and definition
    Flexible Working has been defined differently in many countries and organizations, but considering its characteristics, it can be defined as 'flexible working arrangements without restrictions of time and place based on IT'
    Concept of Flexible Working in Korea, US and Japan
    Press release of MOPAS in Feb 16, 2010
    “Flexible Working system allows employees to free
    themselves from stereotyped working arrangements
    and flexibilizestheir commute times, work places, and
    working arrangements”
    Definition of Flexible Working by BT
    To work at home, on the road or other appointed
    places through internet and teleworking equipments
    * refer to BT.com
    Telecommuting, Telework and Remote Work
    is . . .
    at work place which reduces or removes
    commuting burden on a regular basis
    US Public Law
    [the Ministry
    of Internal
    Affairs and
    which removes restrictions in time and place
    through IT
    Intelligence Service]
    outside one's office through telecommunication
    to conduct all one’s job or part of it
    IT Time Place
    flexible working arrangements
    Flexible Working means flexible working arrangements which removes restrictions of time and place through IT
  • Flexible Working can be classified, according to flexibility of time and place, into four types
    which are Flex time, At-home work, Telework center, and Mobile work1)
    Types of Flexible Working
    Different Time
    1. Flex time
    - Staggered Shifts
    - Alternative work schedule
    - Compressed work
    - Discretion work
    - Core time
    - Part-time work
    - etc
    traditional working
    Same Time
    Ⅰ. What is Flexible Working? 3. Types of Flexible Working
    1. Flex time
    • The office is designated, but employees work
    according to their life patterns without restriction
    of time
    4. Mobile work
    - Using mobile devices
    3. At-home work
    2. Telework center
    • Employees work at a communal center with no
    designated personal seat or at public work center
    located near their homes
    - Mobile office of IBM Korea
    3. At-home work
    • Employees work at home using telecommunication
    network, which is a traditional telework form
    - Introduced by KOIS/KOID, Korea IBM and Korean
    Intellectual Property Office(KIPO)
    2. Telework center
    - Satellite office
    - Smart office
    - Spot office
    4. Mobile Work
    • Employees work without restrictions of time and
    place using remote work equipments as needed
    - NTT Communications established web connect
    support center
    1) The MOPAS classifies Flexible Working into five fields and nine types according to place, time, method, dress code and complexion. (Press release, Feb, 2010)
  • Ⅱ. Today’s Flexible Working introduction cases 1. Foreign introduction case (1) US
    The US introduced Flexible Working in public sector first, with federal support. The US also
    implemented supporting policies such as establishing telework centers and education programs to promote Flexible Working in private sector as well
    Public sector's Flexible Working introduction in the US
    Spread of Flexible Working in private sector in the US
    • Establishing teleworkcenter
    • GSA established fifteen teleworkcenters in Washing DC in 2009
    • Charging $40~62 fee per day to private companies
    • The Federal Government introduced Flexible Working through
    co-operative homeworking pilot project for the whole administration
    • In the beginning of the project, the main factors of spread were
    popularization of internet, increase of transportation cost, and
    people wanting better work-life balance
    • The number of workers benefitted from Flexible Working program
    was 94,643 in 2007, which was less than 110,592 in 2006.
    However, the number of Flexible Working program increased
    in federal offices except for the Department of Defense
    • Among Flexible Working workers, 38% of them use the
    program at least once a week in Nov. 2008. The target is to
    increase participation rate to more than 50% of staffs in GSA by
    - GSA and the Ministry of Personnel Management published
    reports about current state of Flexible Working program within
    Federal Government and reported it to the Congress annually since
    < Change of the number of remote workers in the Federal Government of the United States (unit:
    • Support and publicity channel
    • GSA and the Ministry of Personnel
    Management have offered official
    Flexible Working website, database,
    manager and worker education
    programs since 2008
    -The number of workers who participates
    in Flexible Working program in the US
    was 34 million at the end of 2009,
    which increased by 17% compared with
    2006. The number is expected to
    become 63 million(43% of total workers
    in the US) in 2016
    Adult Population in the US
    (unit: million persons)
    Full time(5days/week)
    Temporary(Less than
    1) Green SW technology and market trend_virtualoffice field,
    Korea Venture Business Association Corp., Dec, 2009
  • Japan implemented many incentive policies such as tax cuts and guidelines which were based on public sector's Flexible Working introduction cases to spread Flexible Working system into
    private sector
    Ⅱ. Today’s Flexible Working introduction cases 2. Foreign introduction case (2) Japan
    Public sector's Flexible Working introduction in Japan
    Spread of Flexible Working in private sector in Japan
    • Plans for telework dissemination
    - Establishing telework counseling center and support channel
    • Developing telework security guideline
    • Setting up telework utilization program for pregnant or parenting women,
    the elderly and the disabled
    • Introducing tax breaks for companies to adopt telework system, which
    reduces fixed assets tax on telework equipments to two-third for five
    years (extended from Apr. 2009 to Mar. 2011)2)
    • Promoting the system in private sector through telework centers of the
    Ministry of Lands, Infrastructure and Transportation (MLIT)
    • In 2007 Japan introduced telework system into the whole government body first and spread it to private sector with IT and Telco as the central figures
    - Japan's goal in this project was to solve decreasing working
    population problem caused by low birth rate and aging
    society. Japan established action plans to double their
    telework population in 2007
    Double teleworker ratio by 2010 compared to 2005
    (20% among the working population)
    • Establish telecommunication system
    - thin client system test, tax breaks to teleworking
    •Create system and environment for Flexible Working
    - Private sector: At-home work guideline development
    - Public sector: Shortened work
    - Pilot introduction to the whole administration in 2007
    • Implementing shortened work and telework among the
    • Implementing shortened work system in local governments
    • providing information such as telework practice or policies
    plan in
    • Japanese Ministry of Health, Labor and Welfare suggested
    guideline for applying Labor Standard Laws, Industrial Safety
    and Health Law, and Accident Compensation Insurance Law to
    protect teleworkers' rights and interests
    1) Re-illumination of telework based on IT and policy issues.
    Vol.7 (Aug, 2009), National Information Society Agency (NIA)
    Source: Research on telework population in 2008, Apr, 2009, MLIT
    Note : Teleworkerratio: The number of teleworkers / Workers ages 15 and above
    2) http://japan.cnet.com
  • Ⅱ. Today’s Flexible Working introduction cases 3. Cases in Korea
    Although Korea has world first class IT infrastructure, domestic Flexible Working introduction rate is no more than 0.8%
    Introduction of Flexible Working in Korea
    - In terms of industry, Flexible Working is applied in the order of publishing, media business and information service(4.4%), wholesaling and retailing(3.1%), and electricity and gas industry(2.9%). Most of flexible workers are estimated to be freelancers, professionals and part-timers
    • Introduction of Flexible Working in Korea
    • A few companies tried introducing Flexible Working since late
    1980s, but it has not yet been activated due to expenses, technical
    problems, face-to-face communication culture and lack of
    • Flexible Working in Korea is still in the beginning stage, although
    Korea has world first class IT infrastructure and 77.2% of Korean
    are internet users. Also Korea is holding the second rank in UN e-
    participation index 1)
    • Ministry of Information and Communication(MIC) recognized u-
    Working as a key service in Broadband Convergence Network(BcN)
    and tried to introduce it into public sector and subsequently into
    private sector, but failed to generalize
    • Flexible Working company has increased by 0.2% to 0.8% in Apr.
    1st 2009 from 0.6% of NIA research in Dec. 2008, but still Flexible
    Working has not been diffused in Korea
    media business and
    information service
    Electricity, gas and water
    supply service
    wholesaling and retailing
    ※ 6 major industries among 17 industry fields
    • The number of Flexible Working companies has showed slight rise
    since 2008
    Introduction time of Flexible Working 3)
    (unit: company, %)
    Section Total Before 2006 2006 2007 2008 2009
    Introduction of Flexible Working in Korea 2)
    Total number of
    Flexible Working companies
    1) Homeworking activation plan for the seriously disabled, Research report of Korea
    Employment Agency for the Disabled(KEAD), 2006
    2) Research on teleworking in companies and factors affecting its results, Lee Sung Ki,
    PhD of SoongsilUniv, 2009
    3) Seven companies which implementing at-home work and mobile work simultaneously are
  • Ⅱ. Today’s Flexible Working introduction cases 4. Obstacles
    The obstacles in dissemination of Flexible Working in Korea include initial cost burden, negative perception within organizations and institutional inertia
    initial cost burden
    Technical problems
    Negative perception
    Institutional inertia
    Obstacles in introduction of Flexible Working
    • initial cost burden of F/W introduction
    • BT invested 650 pounds on internet access, mail forwarding
    equipments and office supplies per flexible worker
    • Upgrading equipments, purchasing laptop computers and
    mobile devices costed IBM Korea 10 billion won
    • Concerns for F/W introduction index was suggested in order of cost, technological problems, negative perception, institutional inertia (NIA research)
    • cost 4.11, technological problems 3.73, negative perception 3.38,
    institutional inertia 3.25 (out of 5 points)
    • Threats to business security from external access
    - NTT Data rented separate 'Thin Client PC'
    • Corporate cultures in Korea
    • Samsung Electronics introduced Flex time, but it only
    resulted in heavier work burden due to the perception
    'overtime work = diligence‘
    • Ministry of Environment introduced voluntary
    participation, but no one participated
    • Lack of detailed regulations to promote F/W
    • Art. 58 of the Labor Standard Act includes regulation
    on discretion work, but there are no standards for
    protection of privacy, security, and industrial disaster
    ※ Japanese Ministry of Health, Labor and Welfare provides guideline about Labor Standard Laws, Industrial Safety and Health Law, and Accident Compensation Insurance Law through Labor Standards Bureau.
  • The Government announced a plan for Flexible Working introduction, which provides
    proper environment in public sector and subsequently spreads Flexible Working in private sector
    with a new council
    Ⅱ. Today’s Flexible Working introduction cases 5. Related policies in progress
    Flexible Working introduction in public sector and providing proper environment for the participation of private sector
    President's Council on Informatization
    • President's Council on Informatization Strategies announced Smart Office project for
    establishing IT-based, low-carbon working environment in Jan. 2010
    1. Establishing Smart Office
    • Planning to establish Smart Offices until 2010, 22 until 2013 in the major cities with
    funds raised from traffic impact mitigation fees
    2. Flexible Working spread plan
    • Establishing Government-wide Smart Office policy council and working group
    • MOPAS plans to introduce 9 types of Flexible Working system in public offices in 5 fields
    (Feb. 2010)
    1. Work style changes in the Government
    • Introduction and revitalization of flexible work arrangements according to the characteristics of
    • Classification of Flexible Working into nine types, such as at-home work, telework, part-time
    work, etc.
    2. Flexible Working spread plan
    • Planning to implement Flexible Working system in the whole administration and local
    governments from the second half of 2010
    • NIA suggested social and economic effect in its Green Life Strategy_Telework Based on IT
    • NIA re-illuminated Flexible Working, published research report and also held forums on keynote
    of Green Life Practice during the last two years
    ※ National Intelligence Service(NIS) was opposed to Flexible Working introduction due to security concerns.
    Green IT Project Department
    Green IT Project 2020 Task Force
    1) Smart Office: IT-based office which allows employees work at remote place without going to the main office. Also known as Smart Work Center or Telework Center.
  • According to its plan, the Government is planning to enact detailed regulations and promote
    spread of Flexible Working in private sector, achieving general consensus on the issue
    Ⅱ. Today’s Flexible Working introduction cases 6. Related systems and incentives
    Spread plan of Flexible Working
    Institutional base
    • Green Life Practice Strategy and utilization plans for
    the spread of Flexible Work
    • The Government needs to actively deal with the recent
    expansion of carbon emissions regulation
    • Korea is ranked 10th carbon emission country in the world
    and is being suggested 30% reduction target compared
    to expected emission levels in 2020
    • Incentive plan for Flexible Working companies is in
    progress to reduce carbon emission levels of companies
    and buildings by 10% until 2012
    • Carbon emissions are going to be set as a new standard
    for incentive and penalty in budgetary allocations for
    local governments
    • There are comprehensive legal basis for Flexible Working
    in current laws, but no detailed guidelines
    • Detailed guidelines on different issues including protection
    of privacy, security, and industrial disaster are required
    which can be supplemented by the labor laws
    • For revitalization in public sector, concrete guidelines
    are required in Electronic Government Act and its
    Enforcement Ordinance, and the Public Service Regulations
    • Tax breaks and incentives are required for the promotion of
    Flexible Working
    • Positive national consensus about Flexible Working
    introduction and its relativity with low-carbon society
    development are required
  • The Government announced 'Greenhouse Gas Reduction Master Plan' which is a strong energy saving policy, and is going to reduce greenhouse gases with concrete and practical actions
    Ⅱ. Today’s Flexible Working introduction cases 7. Flexible Working and Green Life Practice Strategy
    Greenhouse gas reduction measure 2010 for achieving carbon emissions reduction target
    • Flexible Work is a core plan to achieve energy saving target, which is the key factor in Green Policy 2010
    Strong energy saving policy Greenhouse gas reduction target
    1. Expanding energy-greenhouse gas target levels
    • Suggesting reduction target and time period by industries
    • New target level for business areas using energy over
    500 thousand TOE from the next year, and business
    areas using energy over 50 thousand TOE from 2011
    2. Financial support and tax breaks for greenhouse gas reduction
    • Intensifying support for carbon emissions reduction of
    3. Institutional support for greenhouse gas reduction
    - Using video conference system
    - Smart Office
    1. Improving energy price system
    • Interlocking electricity price based on
    price fluctuations of raw materials from 2011
    • Interlocking city gas price with price fluctuations
    of raw materials from 2010
    2. Energy management system
    • Pilot test in ten industries including the steel and
    cement industry
    • Implementing building/business area energy target
  • KSF standard need to be established so that variances in Flexible Working introduction
    including individual, work, organization and environmental circumstances can result in
    successful outcomes for the entire society
    Key Success Factor
    Ⅲ. KSF of Flexible Working 1. KSF of Flexible Working
    Results of Flexible Working
    • F/W Creates bigger synergy effect
    differentiated from performances
    of normal companies
    Individual factors
    Environmental factors
    Work/task factors
    Organization factors
    Work & Life balance
    Productivity improvement
    Job creation
    Low-carbon green growth
    -Work attitudes
    -Commuting distance
    -Independent workplace
    -Commuting convenience
    -Family responsibility
    -Specialty of task
    -Importance of task
    -Task concentrativeness
    -Face-to-face contact with
    -Group work
    -Performance evaluation
    -Education and training
    -Institutionalized Flexible Working
    -Frequency of Flexible Working implementation
    -Technical support
    -Flexible Working place
    -Improved autonomy and satisfaction at work
    -Decreased working hours/cost/stress
    -Reduced Office maintenance cost
    -Increased productivity
    -Reduced Employment and training cost
    -Guarantees high quality work force
    -Flexible work force management
    -Offers chance to women,
    the elderly and the disabled
    -Energy saving
    -Reduced environmental pollution
    Voluntary choice of
    Flexible Work arrangements
    Variables in Flexible Work1)
    • Individual/organizational/environmental factors
    can influence implementation of Flexible Work
    as variables
    1) Research on teleworking in companies and factors affecting its results, Lee Sung Ki, PhD of SoongsilUniv, Dec. 2009
  • KSF of Flexible Working is defined, as 1) IT infrastructure, 2) positive organizational/cultural
    perception, 3) work processization, and 4) job restructuring, based on domestic and foreign
    cases such as that of BT and IBM
    Ⅲ. KSF of Flexible Working 2. Successful implementation models
    IT infrastructure: Wired and wireless telecommunication services and security service as the institutional basis
    Organizational/cultural change: Education program to change perceptions and based on incentives performance
    Processized work form: Work management process by task or project based on clear role assignment
    Job restructuring: Improving work efficiency and specialty through task classification by characteristics of the tasks
    Major features of F/W in BT
    • BT established BT Working Style as a successful business model
    on the foundation of technical/experiential know-how
    Home-based telework group
    Performance management
    Personnel management and service
    F/W framework of IBM
    • IBM developed the Smart Flexible Working model which
    connects and combines organization/individual/culture,
    technology infrastructure and work process organically
    Process &
    Technology &
    • Support system which enabled Working
    • Numerical targets assigned to each project
    • Objective performance assessment
    • Authorization for project manager to assess performances
    • Industrial disaster insurance for homeworking
    • Stronger CSR by green management reference
    • Making solution as a business model
  • To make coherent organization and improve work efficiency, the members of the organization
    should be able to communicate and work regardless of time and place
    Ⅲ. KSF of Flexible Working 3-1. Extraction of key factors – IT Infrastructure
    Key factors
    • Seamless wired and wireless network for ensuring real-time working
    - BT provides MobileXpress software
    - IBM offers VPN service at home
    • Enterprise portal which provides UC-connected information
    sharing and collaborative work solutions
    - IBM provides a groupware(Lotus Notes)
    • Samsung group provides intranet "mysingle" which supports
    various web and mobile devices
    - NTT Data has collaborative work solution "Nexti"
    • Seoul Metropolitan Rapid Transit Corp.(SMRT) provides
    smartphone-based "UTIMS"
    ※ UC(Unified Communication) market is expected to grow by
    33.7% from 555.1 billion won in 2006 to 742.2 billion won in
    2010 1)
    • PC and mobile devices which enable fast and immediate work
    • SMRT, Korea Meteorological Administration(KMA), Ulsan
    National Institute of Science and Technology(UNIST), Kolon etc.
    are planning to expand FMC terminal adoption
    1. IT Infrastructure
    • Check Point
    -Well-developed communication network, communication costs,
    and development of collaborative work tools
    1) Recent u-work trend, National IT Industry Promotion Agency, Sep. 2009
  • Key factors
    • Horizontal organization structure to minimize reporting procedure
    • IBM Korea established horizontal organization structure with
    People Manager system
    • Education program regarding Flexible Working and regularized free
    discussion on problems and effects
    • IBM is planning on continuous education to encourage the employers
    and managers to accept Flexible Working system
    • Expanded online channel based on collaborative work solutions
    including e-mail, BBS, video conference, etc.
    • NTT Data converted to online reporting system, through which each day's
    work plan and results are submitted
    • BT reduced 859,784 meetings a year thanks to video conference
    • Flexible selection and operation required according to the organization culture
    of voluntary selection and coerced action
    - NTT Data introduced F/W owing to employees' proposal
    • IBM, NEC and MS Japan designated the minimum days of
    homeworking in a top-down way
    • Clear performance management system with quantified performance
    estimation of each employee.
    • BT set KPI based on individual role and responsibility and has
    offered reasonable incentives
    • IBM makes action plan with quantified individual targets in the
    beginning of each year
    Ⅲ. KSF of Flexible Working3-2. Extraction of key factors – Organizational/Cultural Change
    Education program to change perception, motivation based on clear incentive system and flexible work
    force management are the most essential elements, especially in Korean business environment in which face-to-face communication culture is predominant
    • Check Point
    • Human resources management system, including personnel,
    compensation, welfare, centered around internal workers
    • Face-to-face communication culture and controlling attitudes in organizations
  • Task management, responsibility and authority assignment, employee qualification etc. need to be processized to ensure completion and productivity at work, regardless of time and place
    3. Work
    Ⅲ. KSF of Flexible Working 3-3. Extraction of key factors – Work Process
    Key factors
    • Work processization is required for task completeness
    • IBM Korea specialized designated tasks by position and project
    -BT codified all projects so that they can be more
    connected to individual tasks
    • Qualified personnel search process for suitability and
    continuity for work
    -IBM Korea supports qualified personnel search system
    through "Find Expert" program
    • Clarifying authority and responsibility so that they can
    be transferred flexibly among the personnel using
    "authority-responsibility system"
    -POSCO creates authorities and responsibilities table
    for each project
    • Check Point
    • Unclear authority and responsibility, which hinder task
    • Work by personal experience and customs rather than
    by qualified personnel
  • Differentiated forms of Flexible Working according to characteristics of the work is required to improve commitment and productivity and to provide flexibility in organization structure
    Ⅲ. KSF of Flexible Working 3-4. Extraction of key factors – Job Restructuring
    Key factors
    • Selection of work groups which can achieve the target of
    Flexible Working
    • Kois/Koid have 230 and 400 homeworkers in call center
    services respectively
    • Samsung Anycar reinforced mobile office education for
    sales staffs
    • Ministry of Environment failed to maintain Flexible Working
    due to the compulsory participation regardless of job positions
    • Differentiated Flexible Working type by job characteristics
    • About 400 patent examiners(70%) working for Korean Intellectual
    Property Office(KIPO) work at home two or three times a week
    • BT provides work arrangement options including homeworking,
    partial homeworking, telework center, flexible work time
    • In IBM Korea, sales staffs can choose among telework center,
    mobile office, or flexible work time. Consultants can choose betweenhomeworking or mobile office, and internal workers can choose
    between partial homeworking and flexible work time
    • Plan to make transfer of responsibilities and authorities flexible
    • Woongjin introduced coordinator system for flexible authority
    and responsibility at work
    • Internal job posting for improving job selection and specialty
    - IBM Korea posts 10% of its jobs internally every year
    4. Job
    • Check Point
    • Perception that Flexible Working is just related to IT
    infrastructure establishment and have nothing to do with
    work position
    -Complexity of job management caused by Flexible Working
    • Variables include each employee's ability to use IT and
    control Flexible Working, motivation for Flexible Working,
    home-based telework environment, etc.
  • As the economic structure and working environment change due to the development of IT,
    traditional homeworking system also developed into the mixture of homeworking and telework
    center, which combines homeworking, telework center, and mobile telework
    [Appendix 1] Development of IT-based Flexible Working
    [Change of IT environment and development of Flexible Working development]
    IT popularization
    "Enjoy IT“
    "Live by IT“
    *Digital convergence
    *Broadband network
    *Internet information appliances
    *Smart phone
    IT advancement
    “Do IT"
    *Wireless Internet
    Reconstituted from Discussion on Preconditions for Spread of Telework,
    The Korean Association for Regional Information Society Journal, Vol. 9 No. 2
    Home working
    Telework center
    Mobile telework
    Combined with
    other management patterns
    working pattern
    Working place
    Use of telecommunication1)
    Personnel management
    Traditional homeworking
    alternative work schedule
    Only workplace changed
    alternative work schedule
    Diversified workplace
    1) Teleworkers show higher adoption rate of IT devices such as network, computing technology
    and smartphones than common workers_refer to US Telecommuting Forecast, 2009 to 2016,
    Forrester, Mar. 2009
  • Despite the initial obstacles, Flexible Working has created immediate effects such as
    cost saving, higher productivity, job creation, higher satisfaction of work and life, and
    society-wide green IT effect
    [Appendix 2] Changes after successful introduction
    • The most important value in work is
    work-life balance (Samsung Economic
    Research Institute)
    • France and Sweden has invested about 3%
    of GDP into supporting the compatibility of
    family and work
    • Flexible work arrangements enabled more
    time for self-development and leisure
    • Operating cost reduction
    -BT Working Style: saved 0.95 billion dollars
    annually(1993-2006) as workspace has been
    • IBM Korea Mobile Office: reduced workspace
    by 50% and saved 2.2 billion won annually
    • Higher productivity
    • Companies such as BT and BestBuy exceeded
    their targets by F/W
    Work-life balance
    Cost saving &
    higher productivity
    Job creation
    • Alternative low-carbon working environment
    through commuting traffic reduction
    -Sun Microsystems: reduced 29,000 tons of
    CO₂ emissions
    -BT: reduced 927,369 tons of CO₂
    emissions per year
    •Job opportunities for disadvantaged people
    including parenting women, the elderly and
    the disabled
    • The Japanese Government established
    teleworking system due to low birth rate and
    aging of population
    • United States Patent and Trademark Office
    (USTPO) employed 1,200 new patent
    examiners in 2006 and 2007
  • Draw selective condition of each task for successfulintroduction of Flexible Working through
    cases of government institutions: Success of Korean Patent Office and failure of the Ministry of
    [Appendix 3] Cases of Korean Intellectual Property Office(KIPO) and the Ministry of Environment
    KIPO Ministry of Environment
    (Introduced in 2006 -> Continuing operation as of 2010)
    • To utilize idle manpower and improve concentration
    at work
    • Homeworking department : applied to the entire
    • Scale of operation : 41 homeworkers with one in each
    department in 2008 -> when converted to voluntary
    participation in 2009, no one participated
    • Application requirements : Headquarter officials of 5th
    grade or below regardless of positions, depending on
    job characteristics and circumstances.
    Recommendation from the head of the department
    (2 days per week)
    • No appraisal tools contrary to KIPO
    • Check attendance at the beginning and the
    end of work
    • Utilization of idle manpower including the disabled and
    the housewives
    • Energy saving at the time of high oil price and
    greenhouse gas reduction
    • Compulsory allocation which excluded job restructuring
    • Disregarded introduction of management process
    (Introduced in 2008 -> Failed to maintain as of 2010)
    • To save workspace, attract outstanding workforce and
    improve welfare
    • Homeworking department : limited topatent
    examination staffs
    • Scale of operation : About 90 examiners are working at
    home out of 810 (10% of the whole
    personnel in KIPO)
    • Application requirements : No limits of job positions,
    but considers the distinct characteristics of the public
    service. Two or more years of work experience as an
    examiner is required to be an applicant (The applicant
    can choose to work at home 2-4 days a week)
    • Performance basically appraised by the result of
    patent examination
    • Commuter check at 9 AM and 6 PM
    • Saved some workspace(cost numerically not estimated)
    • Attracted outstanding workforce and improved
    efficiency/concentration of examiners
    • Saved social costs such as commuting costs and
    • Negative perception about homeworking of public
    • Frequent policy changes by superiors
    for introduction
    for introduction
  • Koid/Kois and SMRT are both Flexible Working companies in Korea. The former is operated
    based on the distinctive characteristics of call center service, and the latter recently established Smart Office for maintenance work
    [Appendix 4] Cases of Koid/Kois and SMRT
    Koid/Kois SMRT
    (Introduced in 2006 -> Continuing operation as of 2010)
    (Established Smart Office in Jan. 2010)
    •Initially : to increase job opportunities for the disabled
    Now : for employee welfare
    •Cost saving, higher productivity, more social benefits
    •Mobile work department : entire personnel
    •Scale of operation : entire personnel (6,500
    •Operation : Established mobile office with UTIMS(Urban
    Transit Infrastructure Maintenance System) for
    smartphones and improved work process(real-time
    task management, more accurate information
    processing, and support for multitasking of the entire
    personnel). Free calls within the company, direct
    commute to and from the field
    •Fast decision making by real-time task management
    and analysis of results (to be implemented)
    •Reduced work time by real-time task management
    (1 hour -> 28 mins)
    •Saved total 28.4 billion won of direct operating costs
    for five years
    •Created 110 billion won's worth of future innovation
    •net return on investment : 128.2 billion won (13 times the investment )
    •Cost 10.2 billion won(2.4 billion won a year) for
    installments of mobile devices and data charges
    for introduction
    for introduction
    •Homeworking department : 114 call center(only the
    night shift in Kois and both the day and night shift in
    •Scale of operation : about 230 representatives in Kois
    (17%) and 400 representatives in Koid(22%)
    •Application requirements : considers employee's
    ability to work alone and past performance evaluation.
    Over six months - one year of work experience
    •Support: VPN equipments for system access
    •Assess employees by call processing statistics and
    complaints frequency
    •Assessments of homeworkers and workers in call center
    were separated
    •Job satisfaction survey of homeworkers showed 90 points(out
    of 100)
    •The child-care problem has been improved and family
    satisfaction increased.
    •Inefficiency caused by excess costs for the establishment of
    homeworking environment
    •Communication problems due to delayed information sharing
    in the company
  • Samsung SDS’s introduction of mobile office starting from June 2009, is expected to be
    an opportunity for cost saving for the company and voluntary increase in productivity for
    the employees
    [Appendix 5] Case of Samsung SDS
    • Samsung SDS provided its employees with smartphones with Mobile
    Desk installed (June. 2009)
    • Reasons for introduction of Mobile Desk : higher productivity through using intranet of Samsung group(mySingle) with smartphones
    • Developed for working at all times without restrictions of time and
    place, cost saving and higher productivity
    • After pilot testing in the aspects of stability and usefulness, Mobile Desk was introduced to 2,800 general employees
    • So for, CEOs of the branch, executives of Samsung Electronics,
    team leaders and above Samsung SDS, were trying out the Mobile
    • Support : the employees purchase the smartphones(with partial
    support) and the company pays for the data charge from Mobile Desk
    • Samsung SDS, which developed the program, first began to spread
    the Mobile Desk to general employees
    -Security issue : No need to worry about confidential data leakage, as
    telecommunication services work just as routes and the company
    administrates the server. Password is required to access the intranet
    Samsung SDS
    Concept map
    of mobile office
    Possible functions
    • E-mail transmissions within
    the company
    • E-approval (real-time)
    • Personnel inquiry
    • Office messenger
    • Remote file management
    • Contact with management
    issues in the company
    Company server
  • [Appendix6] Case of BT
    BT made 'BT Workstyle' as a new business model with technical, experiential know-how of
    introducing Flexible Working
    Flexible Working in BT
    Effects of BT Workstyle
    • Higher productivity, cost saving and welfare
    • Flexible Working department : limited to sales
    department and call center service at the initial stage
    • Now the whole personnel can choose to work flexibly
    • Scale of operation : about 85% of 92,000 British
    employees are participating in Workingstyle project
    (11,600 employees among them are homeworking)
    • Operation : five options are provided including task
    sharing, homeworking, partial homeworking, telework
    center and flex time
    • Allocates individual targets and assesses the
    performance objectively
    • Estimates performance by task unit assignments in a project
    • Invested £650for internet access at home, mail
    forwarding equipment(PO Box) and office supplies
    • Converged IP Voice which supports VoIP and BT
    Fusion wired/wireless telecommunication service
    • Established hot-desking system for effective
    workspace utilization and touchdown2 facilities in
    foreign branches
    • Built ADSL, ISDN, PSTN, GPRS, 3G and Wi-Fi access
    through MobileXpress software
    • Making BT as a reference for the Green Management,
    and establishing it as a business
    • Homeworkers returned to the office due to decrease
    in sales
    Introduction of Options 2000 which regularizes homeworking
    Developed into office environment improvement and property
    management consulting business
    • Clients of BT Workstyle include Accenture UK, the Ministry
    of National Defense(MND), NHS24 Contact Center, Suffolk
    County Council, etc
    • BT introduced Flexible Working system called BT Workstyle in 1993
    Reasons for
    Benefits Contents
    • Higher productivity by 20-60% compared to office workers
    • Homeworking call center representatives helped customers better and
    showed 20% more responses
    • Sick leave rate decreased to 63%, 99% of returned to work after
    maternity leave (the industry average is 47%)
    • Absence without leave rate of homeworkers is 20% lower
    • Saved 0.95 billion dollars a year thanks to reduced workspace (1993-2006)
    • Saved 83% of operating costs per person
    • (employees working in London £18,000vs. homeworkers£3,000)
    • Saved 859,784 meetings per year thanks to video conference and reduced
    7.5 million kilograms of CO₂ emissions
    Higher job
    costs saving
  • IBM Korea and NTT Data are both successful Flexible Working companies, from which
    key factors, such as changing perceptions in the organizations and estimation of quantified
    individual performance, can be extracted
    [Appendix 7] Cases of IBM Korea and NTT Data
    IBM Korea NTT Data
    (Introduced in 2008 -> Continuing operation as of 2010)
    (Introducted in 1995 by Global IBM -> Continuing operation as of 2010)
    • To enhance welfare (Work & Life Balance)
    • Flexible Working department : the entire personnel in the
    legal department except for team managers
    • Scale of operation : all employees can choose to
    participate (more than 60% of them are working in
    mobile environment)
    • Operation : employees are classified systematically by
    their positions to work in five types of Flexible Working
    including staggered shifts, at-home work, permissive
    leaves with mobile office and part-time work
    • People Manager functions as a core in the horizontal
    organization structure
    • Support : invested 10 billion won for upgrading
    equipments, laptop computers and mobile devices (about
    5 million won per person)
    • Mutual trust and education in a top-down way
    • Continuous and corporate-wide 'Diversity' education to
    improve the perception of managers (the CEO
    participates in the education as an instructor)
    • Makes individual targets as an action plan through an
    interview at the beginning of the year and extracts criteria
    of quantified performance estimation
    • The head of the department and the managers assess the
    performance with individualized role and responsibility(R&R) by job positions
    • Saves 2.2 billion won per year thanks to reduced
    • Improves productivity and attracts outstanding workforce
    with higher employee satisfaction
    • Achievement of work-life balance
    • Flexible Working department : The entire personnel
    except for sales staffs
    • Scale of operation : now 300 workers are participating
    among the 8,500 employees
    • Operation : pilot introduction in Jul. 2006 & formal introduction
    in Feb. 2008, progressively implementing the system every three months without drastic changes of work style (work at home
    one day per week / maximum eight days per month)
    • Support : Established thin client environment by renting company
    PCs to homeworkers and have them use company SNS software
    called 'Nexti' to maintain internal security
    • Sets prescriptive standards by job classification and
    assesses the final results and the process together
    • Superior's approval is required
    • Maximizes self-discipline (answered by 76.6% of participants)
    • Improves work-life balance (childcare burden↓ family
    * referred from a postmortem research of NTT Data, Institute of
    Systems Science
    • Making its internal solution into an information security solution
    called Secure Collabo for sale
    Reasons for
    Reasons for
  • NTT Group planned to spread Flexible Working system to all affiliates to increase employment
    mobility without restrictions of age and physical disabilities, but now only NTT Data is
    maintaining Flexible Working system
    [Appendix8] Cases of NTT Group
    Flexible Working in NTT Group
    • Rented 'thin client' PC without storage unit to homeworkers and clarified homeworking tasks by job classification
    • NTT Communications has actively introduced teleworking through development of solutions such as Web Connect Meeting Center and Web
    Connect Support Center for the purpose of teleconference, SOHO and homeworkers, e-Learning, remote assistance and telesales, etc.
    - Web connect Meeting Center: for domestic and foreign teleconferences, working with external companies and collaborative homeworking
    - Web Connect Support Center: for remote assistance for clients, call center, telemarketing, etc
    Flexible Working in affiliated companies of NTT Group
    Homeworking with Web Connect Meeting Center
    - Document and application sharing
    • Collaborative work by POP or cooperative product making
    Type Contents
    • Scheduled to introduce Flexible Working to the entire 50,000 employees,
    which is the largest scale in Japan
    • Established security measures through thin client and NGN
    • Introduced Flexible Working since May. 2008 for pregnant/parenting/
    nursing employees
    • Better work-life balance and higher work efficiency are expected to be
    • Launched 'Work-Life Balance WG' for pilot test in Jul. 2006 and institutionalized it in
    Feb. 2008
    • Participants : About 300 employees except for sales staffs (3.5% among the entire
    8,550 employees)
    • Institutional limit : maximum 8 days per month(the developer save limited
    to one day per week)
    • Security regulations : teleworkers should work with rental PC in the thin client
    • Homeworking system : connected extension telephone lines based on VPN or IP to mobile phones
    * IT Media website in Japan
    NTT East Japan
    NTT Software
    NTT Data Center
    External staffs
    Tokyo branch
    West Tokyo branch
    Meeting /
    Questions & answers
    Chiba branch
    External staffs
    Yokohama branch
    * NTT Communications website
  • Japan began to introduce Flexible Working arrangements with telework popularization policy
    of the Government focusing on the global enterprises and conglomerate firms. Recently,
    telework has been spread around Japanese IT companies equipped with security management
    [Appendix 9] Cases of IT Companies in Japan
    Introduction and management of teleworking in Japanese IT companies
    • Since 2000 , when IBM Japan first introduced teleworking, it continued to spread around IT companies and telcos
    Company Contents
    • Introduced homeworking to the entire company in Jul. 2008 and implemented it for 20,000 employees(90% of the
    entire personnel)
    • About 2,000 employees have participated in homeworking from Jul. 2006 to Jun. 2008
    • Excluded new employees, production employees and employees who deal with confidential information such as
    customers’ personal information
    • Employees can work at home one day per week with the approval of their superior
    • A homework has to use VPN or thin client PC, which prevents remote access and leaking/saving information
    • Introduced teleworking system in 2007 and expanded the target range in Aug. 2008
    • The initial homeworking system was for parenting/nursing/disabled employees
    • Employees can work at home two days per week after one year of work experience with no practical limits
    • Implemented homeworking for 30,000 office workers among 76,000 domestic employees
    • After pilot test for 1,000 employees in 2006, formally introduced homeworking in 2007. The number of homeworkers
    exceeded 5,000 as of the end of 2008
    • Introduced homeworking system for the whole 6,000 employees since Nov. 2007
    • The majority of applicants was parenting female employees at the beginning stage, but now male employees are also
    working at home for sports or hobbies
    • Introduced teleworking for pilot test in 2006 by employees' proposal, and formally implemented it since Feb. 2008
    • Employed 32 severely disabled persons as part-time workers and assigned web design tasks to work at home
    • Enabled real-time communication through web camera
    MS Japan
    HP Japan
    NTT Data
    OKI Workwell
  • The Government need to establish strong policies to achieve Green Lifestyle of lower costs and higher efficiency through the introduction of Flexible Working on the basis of the best IT
    infrastructure in the world
    [Appendix 10]Green effects of Flexible Working
    Green effects of Flexible Working
    • Social and economic effects when an office worker works at home one day per week (annually)
    - 1.11 million tons of carbon emission are saved if all 8.6 million office workers in Korea work at home one day per week
    - 1.6 trillion won of traffic expenses(185,760 won per capita) and 69 hours and 36 minutes are saved
    Carbon reduction effect
    Reduction in
    cost of
    of cases1)
    Saved commute time
    amount (ton)
    Pine tree
    1,030 133 48,000 665 66,500 185,760
    Objects of study
    The entire
    office workers
    in Korea
    20% of
    office workers
    in Korea
    8.637 million5) 1.11 million 0.4 billion 5.55 million 0.555 billion 1.6 trillion
    1 day: 1 hour 27 minutes
    1 month: 5 hours 48 minutes
    1 year:69 hours 36 minutes
    1.726 million 0.22 million 80 million 1.1 million 0.11 billion 0.32 trillion
    Note 1) The number of cases of cost and time saving : 1000 persons
    Note 2) One pine tree can reduce 2.77kg of carbon per year (Korea Forest Research Institute)
    Note 3) by a midsize car
    Note 4) Gasoline 100ℓ = 0.2 tons of carbon (Presidential Committee on Green Growth)
    Note 5) Estimated by the sum total of managers, experts, related workers and office workers among the employed in Sep. 2009 (referred
    from Economically Active Population Research of Statistics Korea, classified by KSCO-6(2007))
    * A Study on IT-based Teleworking and National Demand for Teleworking in Green Life Practice Strategy, NIA, Dec. 2009