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  1. 1. Techniques, Practices, and Policies Paul Gray CIO Breakfast Round Table April 9, 2009
  2. 2. Definitions (by Jack Nilles) <ul><li>Telecommuting: </li></ul><ul><ul><li>Moving the work to the workers instead of moving the workers to work </li></ul></ul><ul><ul><li>Periodic work out of the central office </li></ul></ul><ul><ul><li>Working 1 day a week or more at home or in a telework center </li></ul></ul><ul><li>Teleworking </li></ul><ul><ul><li>ANY form of substitution of information technologies for work related travel </li></ul></ul>
  3. 3. History <ul><li>Early studies at USC, Boeing, UK, Sweden (1969-75) </li></ul><ul><li>Book: Telecommunications-Transportation Tradeoffs: Options for Tomorrow by Nilles, Carlson, Gray, and Hanneman (late 1974) </li></ul><ul><li>Early approaches were relocating people to multiple locations close to their homes. “Satellite offices” </li></ul><ul><ul><li>Examples: UK, Sweden </li></ul></ul><ul><li>It was clear that individuals could also work from their homes even in the technology of the mid-1970’s through telephone modems, paper based printouts (e.g. FAA job) </li></ul>
  4. 4. The Last 35 Years <ul><li>Mixed Success and Failure </li></ul><ul><li>Conferences (e.g. 1995), studies (San Bernardino), experiments, trials, implementations </li></ul><ul><li>Have learned some things that work and some that don’t </li></ul>
  5. 5. Things We Learned <ul><li>It’s easy to get telecommuting wrong (will talk more about that later) </li></ul><ul><li>Requires careful planning from management and cooperation of all employees </li></ul>
  6. 6. Things We Learned-Productivity <ul><li>Telecommuting can increase employee productivity </li></ul><ul><ul><li>Research shows that telecommuters who are supposed to work at home really DO work (not lounge in PJ’s)often more than their office counterparts </li></ul></ul><ul><ul><li>Example: American Express found teleworkers produce >40% more business from work at home than workers in office </li></ul></ul><ul><ul><li>Example:Productivity at British Telecom increased 31% in 9000 workers at home out of 80,000 total employees </li></ul></ul><ul><ul><li>Example:Caregroup Health Systems found teleworkers are more amenable to overtime than workers in the office </li></ul></ul>
  7. 7. Things We Learned: Unusual Teleworkers <ul><li>Concierge at Hyatt-Regency Santa Clara </li></ul><ul><li>Works from home for last five years to be close to children, avoid 1.5 hour commute </li></ul><ul><li>Set up webcam on her home computer, TI line from office to home. Webcam on 42-Inch Plasma TV in lobby with webcam </li></ul><ul><li>Guests see her, she sees guests </li></ul><ul><li>She sets up restaurants and local attractions online, remotely prints out directions </li></ul>
  8. 8. Things We Learned: Saves Money <ul><li>Telecommuting programs save companies money </li></ul><ul><ul><li>Reduced expenses on real estate, electricity, office supplies </li></ul></ul><ul><ul><li>Annual savings of $5000/employee claimed. Mostly from consolidating offices and not expanding office space. At IBM 320,000 (25% of total) workers telecommute, saving $570 M in real estate costs </li></ul></ul><ul><ul><li>Reduced absenteeism. Pays for itself in 3.5 days of work not missed in 1 st year, 1.5 days thereafter </li></ul></ul><ul><ul><li>Reduces traffic congestion, which reduces travel costs for worker of $1,160/year. </li></ul></ul>
  9. 9. Things We Learned: Environment <ul><li>Great way to get credit for helping the environment </li></ul><ul><ul><li>At least 3.9 M worked from home at least 1 day/week. Implies 2M cars off roads. If all 40-53M who could tele-commute did, equivalent to taking ~25M cars off road. </li></ul></ul><ul><ul><li>Another estimate is 6 M teleworkers currently, half of whom are self-employed. </li></ul></ul>
  10. 10. Things We Learned:An Incentive <ul><li>Attracts and retains workers (not true for all workers) </li></ul><ul><ul><li>Saves money, car repairs, and commuting headaches </li></ul></ul><ul><ul><li>A way of rewarding employees without giving raise </li></ul></ul><ul><ul><li>Way to recruit without adding salary – Robert Half survey of CFO’s: 30% said telecommuting is top benefit, 46% said it is second to money </li></ul></ul>
  11. 11. Hoteling <ul><li>Since teleworkers do come into the office, provide them an office when they are there. </li></ul><ul><li>Concept is called hoteling: In a hotel most rooms are alike. Assign a cubicle with a computer when they arrive. It can be different each time they show up. Have them store their work related materials in a locker. Even provide pictures of the family on their desk when they show up. </li></ul>
  12. 12. Things We Learned: Not Everyday… <ul><li>Max 3 days/week. 1 day per week may not pay for itself (Westfall 1999 Claremont dissertation) </li></ul><ul><li>Telecommuting is not for everybody: Some need the discipline of coming in every day </li></ul><ul><li>You have to manage remote workers. Keep metrics on their productivity. Don’t assume everything is OK </li></ul><ul><li>Big managerial concern: are they working? </li></ul><ul><ul><li>Also true for on-site workers (eg SanBernardino) </li></ul></ul>
  13. 13. Things We Learned: Costs <ul><li>Investment in equipment, supplies approx $5000 </li></ul><ul><li>Need to be concerned about whether teleworkplace is safe and meets standards. Consult your firm’s lawyer! </li></ul>
  14. 14. Things We Learned-Teleworker Challenges <ul><li>Keeping a high enough profile </li></ul><ul><li>Not winding up working 24/7 </li></ul><ul><li>Learning of Opportunities for Tasks, Promotions </li></ul>
  15. 15. Barriers <ul><li>A Steelcase survey of 700 workers found 46% percent allowed to telecommute and 32% do. </li></ul><ul><li>But nearly 2/3 of all respondents feared working from home &quot;will hinder chances at promotion due to lack of contact with the employer,” </li></ul><ul><li>72% of the respondents feel Steelcase prefers them in the office to control the work environment; 71% said the boss wants them around to prevent productivity decline. 62% believe companies prefer them in the office to prevent a lack of communication. </li></ul><ul><li>Myths persist that tarnish telecommuting’s reputation. </li></ul><ul><li>Some individuals struggling with insufficient training or corporate-cultural barriers preventing them from being good telecommuters, working effectively with far-flung peers, or sufficiently managing subordinates who do their jobs from home. </li></ul><ul><li>Source: FUD Tarnishes the Telecommuting Experience. InfoWeek 8-11-08 Ted Samson </li></ul>
  16. 16. A Telecommute Calculator <ul><li>On Website of “Undressed for Success” by Lister and Harnish (Wiley 2009) </li></ul><ul><li>Shows for a particular location, what can be saved with telework </li></ul><ul><li>Handout for Irvine </li></ul><ul><li>Numbers are huge </li></ul>
  17. 17. Example: Rick Blythe - BW 10-17-08
  18. 18. Example: BW Small Business -10-17-08
  19. 19. Technology <ul><li>Technology is now easier with </li></ul><ul><ul><li>Wireless computing </li></ul></ul><ul><ul><li>Collaboration software </li></ul></ul><ul><ul><li>Broadband (including Skype and video) for 2-person or more meetings </li></ul></ul><ul><li>Cisco developed a “remote office in a box” to get teleworkers connected and up and running </li></ul><ul><li>Systems for presenting multiple screens for teleconferencing </li></ul><ul><li>Source: Ted Sampson “In Defense of Telecommuting” April 2, 2009 URL: </li></ul>
  20. 20. Polycom HDX 9000
  21. 21. Security <ul><li>4 Telecommuting (and Road-Warrior)Mistakes: </li></ul><ul><ul><li>Careless use of WiFi and accessing unsecured networks </li></ul></ul><ul><ul><li>Letting family and friends use work-issued devices </li></ul></ul><ul><ul><li>Altering security settings for web sites that have been blocked by the company </li></ul></ul><ul><ul><li>Leaving work-issued devices in an unsecured place </li></ul></ul><ul><ul><li>Source: </li></ul></ul>
  22. 22. 10 Rules for Telecommuting <ul><li>Make sure there are no holes in the save-money calculation </li></ul><ul><li>Get HR involved. They worry about sound home offices, </li></ul><ul><li>Make sure that the telecommuter has a separate home office, help line support, </li></ul><ul><li>Provide a dedicated land-line. Don’t rely on cell phones </li></ul><ul><li>Cover the teleworkers home office costs </li></ul>
  23. 23. 10 Rules for Telecommuting(cont.) <ul><li>Pilot telecommuting with strong workers, not marginal employees </li></ul><ul><li>Involve teleworkers in meetings, even if they have to come in to participate </li></ul><ul><li>Be aware that remote employees are not always available.(e.g., don’t all at 11 PM, respect regular working hours) </li></ul><ul><li>Conduct casual conversations with remote employees as you do with local employees </li></ul><ul><li>Make them first-class not second class citizens. Give them plum assignments, include intangibles in reviews </li></ul><ul><li>Source: Bob Lewis (Note title is “10 Sure fire Ways to Kill Telecommuting”. He gives the inverse of what is successful. </li></ul>
  24. 24.
  25. 25. Books on Telecommuting <ul><li>Nilles, J, Calson F. R., Gray, P. and G.J. Hanneman&quot;The Telecommunications-Transportation Tradeoff: Options for Tomorrow&quot; Wiley, 1973. Reprinted 2007, </li></ul><ul><li>Nilles, J.M. &quot;Making Telecommuting Happen: A Guide for Telemanagers and Telecommuters&quot; Van Nostrand Reinhold, 1994 </li></ul><ul><li>Nilles, J.M. &quot; Managing Telework: Strategies for Managing the Virtual Workforce: Wiley, 1998 </li></ul>