Corporate Agility: Doing Business Anytime, Anywhere Citrix Online Webinar May 12, 2009 Charlie Grantham, PhD. James Ware, PhD. Executive Producers Work Design Collaborative

It’s Clearly Not Business as Usual An Assertion: The economy is in the early stages of a fundamental transformation in the way work is organized, managed, and performed. Our Perspective: Embracing “work anywhere” approaches can reduce operating costs by as much as 40% while substantially improving productivity, worker satisfaction and retention, and organizational agility.

An Assertion:

The economy is in the early stages of a fundamental transformation in the way work is organized, managed, and performed.

Our Perspective:

Embracing “work anywhere” approaches can reduce operating costs by as much as 40% while substantially improving productivity, worker satisfaction and retention, and organizational agility.

Today’s Agenda Goal: A conversation about how to adapt to the new world of work. Some Topics for Discussion: The rules of work have changed Why is “agility” so important to business success? What is the value of hitting the “reset” button? What do you need to do? - - Agenda importance of mobile work rapid growth – drivers of change challenges implications

Goal:

A conversation about how to adapt to the new world of work.

Some Topics for Discussion:

The rules of work have changed

Why is “agility” so important to business success?

What is the value of hitting the “reset” button?

What do you need to do?

- -

Agenda

importance of mobile work

rapid growth – drivers of change

challenges

implications

The Way It Used to Be

Technology Changed Things . . . or Did It?

Work Evolves What “work” is changes: from agriculture to manufacturing to information How “work” gets done changes: from shovels to machines to computers Where “work” gets done changes: from open land to cities and villages to anywhere and everywhere What workers do changes: from brute force to brain force

What “work” is changes: from agriculture to manufacturing to information

How “work” gets done changes: from shovels to machines to computers

Where “work” gets done changes: from open land to cities and villages to anywhere and everywhere

What workers do changes: from brute force to brain force

An Important Perspective The way we work is changing, which will be followed shortly by where we work – or you disappear . . . Work Place

What’s Really Going On? Most of the institutions and business operations that supported industrial work styles are crumbling—rapidly! X X X X X X

Most of the institutions and business operations that supported industrial work styles are crumbling—rapidly!

Today Technology Actually Is Changing Work But Agility isn’t a Natural State for Most Organizations

Two-Thirds of Knowledge Work Today Is Done Outside Corporate Facilities “ 1st place” “ 2nd place” “ 3rd place” Opportunity in next five years: Corporate Facilities 30% At Home 35% In Between 35%

The “New Rules” The social institutions that supported industrial development are dysfunctional and crumbling The “new” imperative is to move fixed costs to variable (i.e., real estate, human resources, and technology) Economies of scale don’t necessarily work anymore “ Bigger, faster, more” are watch-words of a bygone era

The social institutions that supported industrial development are dysfunctional and crumbling

The “new” imperative is to move fixed costs to variable (i.e., real estate, human resources, and technology)

Economies of scale don’t necessarily work anymore

“ Bigger, faster, more” are watch-words of a bygone era

You Need a New Operational Strategy And New Ways of Thinking We are not in a normal “business cycle” Someone has hit the “re-set button” on the entire wealth-creation machine. The creation of wealth now depends on the creation of knowledge and its application to sustainability —both environmental and social. We must invest in the physical, technological, and social networks that support this post-industrial economic engine

We are not in a normal “business cycle”

Someone has hit the “re-set button” on the entire wealth-creation machine.

The creation of wealth now depends on the creation of knowledge and its application to sustainability —both environmental and social.

We must invest in the physical, technological, and social networks that support this post-industrial economic engine

Accessibility and Interaction Three Ways to Achieve Economic Well-Being* * Source: Michael Shear of Pockets: Distributed Workplace Alternative, Inc. Proximity Transportation Telecommunications

Connectivity Reduces the cost of transactions Enhances “collaboration” social networking tools distance learning remote access Increases “density” of social networks more choices higher probability of success

Reduces the cost of transactions

Enhances “collaboration”

social networking tools

distance learning

remote access

Increases “density” of social networks

more choices

higher probability of success

Corporate Agility The Essential Ingredient for Survival Move from fixed costs to variable costs facilities and real estate technology human resources business processes (outsourcing) Create distributed workplaces and mobile work programs aggressive use of IT, and strategic use of real estate Substitute connectivity for proximity and transportation

Move from fixed costs to variable costs

facilities and real estate

technology

human resources

business processes (outsourcing)

Create distributed workplaces and mobile work programs

aggressive use of IT, and

strategic use of real estate

Substitute connectivity for proximity and transportation

Flexible Workers “Can’t Live Without” Remote Access* * Source: Survey sponsored by Citrix Online and conducted by Work Design Collaborative, 2008. Never Use/Don’t Like Can’t Live Without It Nice to Have Remote access to files Web Conferencing Shared document repositories Instant Messaging Threaded discussions/forums Web-based project mgt software Blogs Online Custom Wiki’s Podcasts

SCAN Health Plan Embracing the Future of Work Charter to re-align the real estate portfolio to reduce cost and handle growth Moved several hundred employees to a work-anywhere environment Corporate headquarters went from 185 sf/person to 155 sf/person in 2008 (goal is 112) Expecting to achieve an ROI over 40% Case Example

Charter to re-align the real estate portfolio to reduce cost and handle growth

Moved several hundred employees to a work-anywhere environment

Corporate headquarters went from 185 sf/person to 155 sf/person in 2008 (goal is 112)

Expecting to achieve an ROI over 40%

The Results Provisioning cost Provisioning time Space requirements Return on investment Employee productivity Employee engagement 38% 12 weeks to 3 days 22% 40%+ 18% No change SCAN Health

Provisioning cost

Provisioning time

Space requirements

Return on investment

Employee productivity

Employee engagement

38%

12 weeks to 3 days

22%

40%+

18%

No change

A New Kind of Workplace is Emerging We call it a “Business Community Center™” A shared facility and service operation located in suburban and exurban areas to reduce commuting available to members on an as-needed or “drop-in” basis Fosters economic development; supports local businesses Very different from traditional executive suites significantly lower price located near residential areas, not downtown or industrial parks focused on the member experience networked to other BCC’s

A shared facility and service operation

located in suburban and exurban areas to reduce commuting

available to members on an as-needed or “drop-in” basis

Fosters economic development; supports local businesses

Very different from traditional executive suites

significantly lower price

located near residential areas, not downtown or industrial parks

focused on the member experience

networked to other BCC’s

What Could “Work Anywhere” Do for the Economy? Reducing Commuting by 20% Could: Improve economic efficiency* drop $260 billion to corporate bottom lines save the federal government $14 billion save consumers an additional $228 billion Help the environment reduce driving by 24.4 million miles a year take 12,963 tons of CO 2 out of the atmosphere every year save 1.2 million gallons of gasoline a week Revitalize local communities every 10% reduction in commuting generates a 10% increase in civic participation local spending will increase by 25% - 40% local tax revenues and philanthropic contributions will also increase * Source: Kate Lister, author, Undress4Success .

Improve economic efficiency*

drop $260 billion to corporate bottom lines

save the federal government $14 billion

save consumers an additional $228 billion

Help the environment

reduce driving by 24.4 million miles a year

take 12,963 tons of CO 2 out of the atmosphere every year

save 1.2 million gallons of gasoline a week

Revitalize local communities

every 10% reduction in commuting generates a 10% increase in civic participation

local spending will increase by 25% - 40%

local tax revenues and philanthropic contributions will also increase

What Does This Mean for You? To survive, you must reinvent the way work gets done Web-based technologies are the tools that enable reinvention Mobility isn’t the only answer, but it’s a very big part of the solution Working Anywhere is a win-win-win-win-win reduces costs today without impairing capability tomorrow improves talent attraction and retention, productivity, engagement, and agility slows global climate change reduces traffic congestion strengthens local communities

To survive, you must reinvent the way work gets done

Web-based technologies are the tools that enable reinvention

Mobility isn’t the only answer, but it’s a very big part of the solution

Working Anywhere is a win-win-win-win-win

reduces costs today without impairing capability tomorrow

improves talent attraction and retention, productivity, engagement, and agility

slows global climate change

reduces traffic congestion

strengthens local communities

For Further Information Dr. Charles Grantham Prescott, Arizona +1 928 771 9138 office +1 928 771 9138 fax +1 928 533 9149 mobile [email_address] Dr. James Ware Berkeley, California +1 510 558 1434 voice +1 510 558 1431 fax +1 510 206 8147 mobile [email_address] Website: http://www.thefutureofwork.net Blog : http://www.thefutureofwork.net/blog Book: Corporate Agility http://www.corporateagilitybook.com American Management Association ISBN: 0814409113