SCAN Health: From Flexible Work to Corporate Agility

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This presentation was delivered by Diane Coles and James Ware at the Corenet Global Summit in Chicago, Illinois, on May 2, 2011

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SCAN Health: From Flexible Work to Corporate Agility

  1. 1. #3 Transforming the Workplace and Strategy at SCAN Health: From Flexible Work to Corporate AgilityModerator: James M Baker, Deloitte ConsultingPanelists: James Ware, The Future of Work…unlimited Diane Coles, SCAN Health Plan
  2. 2. IntroductionsModerator James M Baker Senior Manager, Strategy & Operations Deloitte Consulting  10 Years Management Consulting experience  Deep experience across CRE, corporate services , & workplace strategy  MBA, Georgetown; MCR, CoreNet; CoreNet Faculty Member 2
  3. 3. IntroductionsPanelist Diane Coles, MCR Director, Workplace Solutions SCAN Health Plan Over 20 years CRE, FM, and BCP experience Co-Author Cut it Out: Save for Today Build for Tomorrow Guest Lecturer, MIT Professional Education Programs 3
  4. 4. IntroductionsPanelist James Ware, PhD Executive Director The Future of Work… unlimited  30+ years experience as a consultant, research, executive educator, author  Co-Author, Corporate Agility  Co-Author, Cut It Out! Save for Today, Build for Tomorrow  Consultant/Advisor to SCAN Health, 2006-2011 4
  5. 5. Now Playing . . . From. . . FLEXIBLE FLEXIBLE CORPORATE TO TO WORK! FACILITIES! AGILITY! 5
  6. 6. Our ProgramPreview Feature The Q&A (Jim) Act Reviews (All) (Diane) (Jim) 6
  7. 7. Direct from Long Beach:An AWESOME Story 7
  8. 8. Direct from Long Beach:An AWESOME Story 8
  9. 9. An AWESOME Story On Location 9
  10. 10. An AWESOME Story On Location The Stage 10
  11. 11. An AWESOME Story On Location The Star The Stage 11
  12. 12. The Trailer THE FOLLOWING PREVIEW HAS BEEN APPROVED FOR ALL CRE PROFESSIONAL AUDIENCES 12
  13. 13. The Trailer YouTube Video: http://www.youtube.com/watch?v=k1A9AdVd0Ks 13
  14. 14. The Story Line In Seven Acts Moving to a Selling inGrowing Making Asking Learning Reaching Permission New a Down Pains Friends Lessons Neighborhood Maturity Economy 14
  15. 15. Act One: Growing Pains 15
  16. 16. Challenges
  17. 17. Act Two: Making Friends 17
  18. 18. Developing the Strategy HR ITHR CRE IT CRE
  19. 19. The AWESOME Project TeamAlternate Workplaces Engaging Staff and Office ManagementEfficiencies IT HR PMO CRE Legal Marketing Risk
  20. 20. What Did the Future Hold?How Would We Embrace It? 20
  21. 21. Act Three: Asking for Permission 21
  22. 22. The Future of Work ROI Calculator A Decision Support Tool Variables: What If? . . .  Number of direct workers  Workforce profile  Revenue per direct worker  Annual Productivity improvement (by Scenario One workforce type)  Workforce turnover  HR support staff ratio  IT support staff ratio Scenario Two  Admin support staff ratio  Management span of control  Space requirement per worker Inputs Outputs  Occasional workers per touchdown space  Team space ratio Scenario . . .  Common space ratio  Facilities cost/square foot  Building improvement costs  Building operations cost/sq.ft.  Office equipment costs Scenario . . .  Technology equipment costs  HR cost per direct workers  HR support costs  Recruiting/relocation costs  Facilities/CRE support cost  Admin support cost  Management cost© Copyright 2002-2011 by The Future of Work. All rights reserved. - 22 -
  23. 23. Three Possible Scenarios* Key Scenario Scenario Scenario Baseline One Two Three Assumptions • “Mobile” Employees • 249 • 356 • 399 • 554 • DW Sharing Ratio • 3.50 • 3.50 • 4.37 • 3.85 • Total Staff • 865 • 838 • 820 • 827 Selected Outcomes • Square Feet per Person • 164 • 143 • 134 • 97 • Facilities&FFE Cost/Empl • $7,847 • $7,432 • $6,824 • $5,860 • IT Support Cost/Empl. • $10,109 • $10,857 • $10,806 • $10,862 • HR Support Cost/Empl. • $3,585 • $2,368 • $2,145 • $2,314 • Admin Support Cost/Empl • $8,033 • $7,467 • $6,370 • $6,832 • CRE Support Cost/Empl. • $1,118 •$ 955 •$ 973 •$ 963 • Total Support Cost/Empl. • $42,435 • $38,742 • $37,010 • $36,623 • Conversion Cost/Empl. • -- • $30,011 • $29,948 • $29,808 • Internal Rate of Return • -- • 23.4% • 40.3% • 70.1% *For the year 2010, assuming no change in basic business parameters23
  24. 24. Skipping to the Happy Ending 24
  25. 25. Three Dimensions of SuccessEFFICIENCY – making the most of the space  density of occupancy  cost of occupancy  cost of churn  AWESOME ROI EFFECTIVENESS – making the most out of people  employee attraction/retention  department productivity EXPRESSION – making the most of the mission  employee engagement  job satisfaction/flexibility
  26. 26. The Numbers• Provisioning cost  38%• Provisioning time  12 weeks to 3 days• Space requirements  25%• Return on investment  40%+• Employee productivity  18%• Employee engagement No change 26
  27. 27. Act Four: Learning Lessons 27
  28. 28. Home Office Provisioning
  29. 29. Perspectives: Employees“I would rather find another job than come back in the office.”“My production went up slightly at home, but my accuracy went way up!”“We feel we are more of a team now than when we were in the office.”“We can talk to each other faster than someone in the office – when you call the office you get voicemail.”“I’m calling my manager asking, ‘Is there anything else you want me to do?’” 29
  30. 30. Perspectives: Managers“We should have manager training prior to selecting ‘remote workers.’”“I’m surprised how quickly they separated themselves from the office. They don’t want to come back.”“The home-based workers are telling me about things that I don’t even know are happening here at SCAN.”“I’m concerned about keeping the AWESOME employees connected with the company.” 30
  31. 31. Act Five: Moving to a New Neighborhood 31
  32. 32. The New Space Concept The Neighborhood – Townhouse – Single Occupant – Collaboration Parks – Phone Booths – Café – Library – Mail Box Etc. / Copy Center32 32
  33. 33. New Collaboration Spaces 33
  34. 34. New Collaboration Spaces - 34
  35. 35. The Call Center Solution 35
  36. 36. Touchdown Spaces 36
  37. 37. The Townhouse 37
  38. 38. The Townhouse 38
  39. 39. Self-Service Space Planning 39
  40. 40. Breaking Down Silos 40
  41. 41. Act Six: Selling a Townhouse in a Down Economy 41
  42. 42. Cost to Reconfigure Space Remain As Is 2,500,000 Furniture Construction 2,000,000 A/E Electrical Cabling 1,500,000 TotalCost 1,000,000 500,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 -500,000 42
  43. 43. Cost to Reconfigure Space Change to New Concept 43
  44. 44. Density of Occupation Total Number of Employees Divided by Total Usable Square Feet 44
  45. 45. Workplace Policy in Pictures 45
  46. 46. Act Six: Reaching Maturity 46
  47. 47. AWESOME Impacts Business Continuity Records Management Mail Planning Paperless Strategy Customer Outreach 47
  48. 48. Triple Bottom Line Results 18% productivity gain 450,000 fewer miles $7 million savings“0” home worker comp Reduced GGE 40% ROI Attract and retain 22 tons less paper 25% less CRE staff 48
  49. 49. Corporate Agility“A Roadmap for Quick Expansion into New Territories” “AWESOME has fundamentally changed the way that SCAN looks at its business model” Hank Osowski, SVP, Business Development. Business Development Workforce Workplace Planning Strategy Marketing IT Operations Sales Strategy 49
  50. 50. Making SCAN More Agile The Organizational Assessment SystemSM© 2002-2010 by Work Design Collaborative, LLC. All rights reserved. 50
  51. 51. AWESOME Mentions 51
  52. 52. And the Reviews are In. . . Light Many Fires 1 52
  53. 53. And the Reviews are In. . . Design From Data 2 53
  54. 54. And the Reviews are In. . . Get Moving & 3 Stay Moving 54
  55. 55. And the Reviews are In. . . Don’t Be a Lone 4 Ranger 55
  56. 56. And the Reviews are In. . . Measure and Manage Results 5 56
  57. 57. And the Reviews are In. . . Live the 6 Change 57
  58. 58. But Never Forget. . . It’s a Marathon 58
  59. 59. Q&A Time 59

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