Charles Grantham, PhD. James Ware, PhD. Executive Producers Work Design Collaborative World at Work Total Rewards Conference May 20, 2008 Philadelphia, Pennsylvania A Revolutionary New Model for Competing in a Flat World CORPORATE Agility:

Today’s Agenda Goal: A conversation about corporate agility Some Topics for Discussion: Why is corporate agility so important ? The changing nature of work – and the workforce Speed bumps on the road to the future What can you do to enable flexible work successfully? Agenda importance of mobile work challenges some data guidelines for success

Goal:

A conversation about corporate agility

Some Topics for Discussion:

Why is corporate agility so important ?

The changing nature of work – and the workforce

Speed bumps on the road to the future

What can you do to enable flexible work successfully?

Agenda

importance of mobile work

challenges

some data

guidelines for success

“Something’s Happening Here . . . What it is, is not exactly clear ”* An Assertion: The economy is in the early stages of a fundamental transformation in the way work is organized, managed, and performed. A Belief: The creative, integrated management of workers, the places they work, and the technology they rely on can reduce workforce support costs by as much as 40% while substantially improving productivity, effectiveness, worker engagement and retention, and organizational agility. A Message: Distributed work makes economic sense; it’s a reality today; yet most companies have been slow to embrace, enable, and/or support it effectively. *From “What It’s Worth,” by Buffalo Springfield

An Assertion:

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

A Belief:

The creative, integrated management of workers, the places they work, and the technology they rely on can reduce workforce support costs by as much as 40% while substantially improving productivity, effectiveness, worker engagement and retention, and organizational agility.

A Message:

Distributed work makes economic sense; it’s a reality today; yet most companies have been slow to embrace, enable, and/or support it effectively.

Drivers of Change Information Technology Globalization Demographics Public Policy Sustainability

Three Business Imperatives* * Corporate Agility , by Charles Grantham, James Ware, and Cory Williamson, AMACOM Press, 2007 Reducing Fixed Operational Costs Closing the Talent Gap Institutionalizing Innovation

One Vision of What’s To Come Work will be much more distributed – and will happen in many more places Work will be much more collaborative The workforce will be much more diverse Social and economic bonds between workers and organizations will be weaker, shorter, and more fluid Employment laws will reflect the new reality of the “free agent nation” WDC Futurescope

Work will be much more distributed – and will happen in many more places

Work will be much more collaborative

The workforce will be much more diverse

Social and economic bonds between workers and organizations will be weaker, shorter, and more fluid

Employment laws will reflect the new reality of the “free agent nation”

Two-Thirds of Work Today Takes Place Outside Corporate Offices* Work is already being accomplished in a wide range of locations, and on the go Work is spread throughout the day and week (24x7); no more “8 to 5” industrial schedules Work takes place in shorter “chunks,” down from months to weeks Corporate Facilities 35% At Home 35% In-Between 30% * Future of Work Research Program Workforce Surveys , 2002, 2004, 2007

Work is already being accomplished in a wide range of locations, and on the go

Work is spread throughout the day and week (24x7); no more “8 to 5” industrial schedules

Work takes place in shorter “chunks,” down from months to weeks

The Distributed Workforce is Growing Rapidly * Source: WDC Demographic Projections, 2008 Drivers of Change: documented Return on Investment leadership support energy costs simplification of process public policy incentives Barriers: old habits die hard middle management resistance technical and physical up-front investments Wildcards: recessionary economy technology development global politics/terrorism (x1000) 1990 1995 2000 2005 2010

Drivers of Change:

documented Return on Investment

leadership support

energy costs

simplification of process

public policy incentives

Barriers:

old habits die hard

middle management resistance

technical and physical up-front investments

Wildcards:

recessionary economy

technology development

global politics/terrorism

Workforce Values and Expectations* This is not your father’s workforce VALUES TRADITIONAL WORKER EMERGENT WORKER Promotion Tenure Merit Retention Security Growth Management Style Paternalistic Peer Organization Chart Admire Ignore Changing Jobs Fear Advancement * http://www.spherion.com/corporate/aboutus/newsevents/EWFrelease.jsp Career Company’s Employee’s Responsibility Responsibility 8% 40% 52% 2007 (projected) 21% 29% 34% Traditional 48% 49% 46% Migrating 31% 22% 20% Emergent 2003 1999 1997 Type of Worker

Changing Psychology Drives Network Growth And a Fundamental Change in the Nature of the Workplace Drive a need for many more – and different – places to work Leading to a globally dispersed network of workplaces A dramatic shift in the relationships between organizations and individuals , together with the emergence of new tools and technology platforms

You Need a Comprehensive Workplace Strategy The utility of the workplace is being substantially impacted by technology and the evolution of the knowledge worker But people need to be somewhere: the task is to support work, wherever it takes place Communities, not just companies, will wage a global competition for the attraction and retention of talent

The utility of the workplace is being substantially impacted by technology and the evolution of the knowledge worker

But people need to be somewhere: the task is to support work, wherever it takes place

Communities, not just companies, will wage a global competition for the attraction and retention of talent

The Workplace Agility Survey 2008* Focus on Work Patterns and Supporting Technologies Kinds of workspaces used Time spent in each workspace Work activities Technologies used Value of technologies in use Challenges of working remotely Organizational support for flexible work * Designed and Conducted by WDC; Sponsored by Citrix Online

Kinds of workspaces used

Time spent in each workspace

Work activities

Technologies used

Value of technologies in use

Challenges of working remotely

Organizational support for flexible work

Individuals Work in a Variety of Places Never Use Use Less Than 20 Hours a Week Use More Than 20 Hours a Week

Flexible Work Policies Only Moderate Support for Flexible Work Our company prohibits flexible work Only a few employees are allowed to work flexibly We have a flexible work policy in place We have a very flexible work environment

Remote Work Productivity Challenges Understanding what is expected of me Keeping my boss up to date on my work Feeling part of the team and the company High Cost of Online Access Staying in touch with company goals Getting Online Keeping track of files and other company data Getting High-speed Bandwidth Access to Company's Servers Accessing personal work files Moderate Challenge A Major Headache 0% 10% 20% 30% 40% 50% Percent Reporting

What Does All This Mean for your Company? Major re-orientation to new markets and distribution channels Significant value-added opportunities from services Strategic partnerships with workplace services and IT providers A need for continual innovation and re-invention

Major re-orientation to new markets and distribution channels

Significant value-added opportunities from services

Strategic partnerships with workplace services and IT providers

A need for continual innovation and re-invention

Four Speed Bumps on the Road to the Future Sources of Organizational Resistance Organizational Barriers: Resistance from managers: “I can’t manage people I can’t see” Resistance from workers: “When I’m not there no one thinks about me” Technology Barriers: Enabling flexible work work almost always requires major changes in technology and business processes And few organizations are making effective use of good collaborative technologies that are readily available

Organizational Barriers:

Resistance from managers: “I can’t manage people I can’t see”

Resistance from workers: “When I’m not there no one thinks about me”

Technology Barriers:

Enabling flexible work work almost always requires major changes in technology and business processes

And few organizations are making effective use of good collaborative technologies that are readily available

Something to Keep in Mind Every college graduate already knows how to work flexibly – and expects it to be “the way things are”

For Further Information Dr. Charles Grantham Prescott, Arizona +1 928 771 9138 office +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 August 2007 ISBN: 0814409113

Wild Cards Vertical integration of the “work environment” market Order-of-magnitude increases in energy costs “ Green” credits become part of contracts “ Free agents” form guilds Private equity invests in “talent”

Vertical integration of the “work environment” market

Order-of-magnitude increases in energy costs

“ Green” credits become part of contracts

“ Free agents” form guilds

Private equity invests in “talent”

Something to Think About as You Plan Order and innovation go hand-in-hand You have to remove wasted time, energy, and effort to gain resources for innovation and creativity Which activities should we start ? Which activities should we increase ? Which activities should we maintain ? Which activities should we decrease ? Which activities should we stop ?

Order and innovation go hand-in-hand

You have to remove wasted time, energy, and effort to gain resources for innovation and creativity

Nine Strategies for Achieving Corporate Agility Close the Talent Gap Reduce Operational Costs Institutionalize Innovation Real Estate & Facilities Human Resources Information Technology Build distributed locations Find new talent pools Build collaborative platforms Shrink the footprint Outsource non-core activities Build web-based applications Design creative spaces Recruit diversity; reward creativity Install anywhere, anyplace tools Need Focus