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

1. #3 Transforming the Workplace and
Strategy at SCAN Health: From
Flexible Work to Corporate Agility
Moderator: James M Baker, Deloitte Consulting
Panelists: James Ware, The Future of Work…unlimited
Diane Coles, SCAN Health Plan

2. Introductions
Moderator
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
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3. Introductions
Panelist
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
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4. Introductions
Panelist
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
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5. Now Playing . . .
From. . .
FLEXIBLE FLEXIBLE CORPORATE
TO TO
WORK! FACILITIES! AGILITY!
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6. Our Program
Preview Feature The Q&A
(Jim) Act Reviews (All)
(Diane) (Jim)
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7. Direct from Long Beach:
An AWESOME Story
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8. Direct from Long Beach:
An AWESOME Story
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9. An AWESOME Story
On Location
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10. An AWESOME Story
On Location
The Stage
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11. An AWESOME Story
On Location
The Star
The Stage
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12. The Trailer
THE FOLLOWING PREVIEW
HAS BEEN APPROVED FOR
ALL CRE PROFESSIONAL
AUDIENCES
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13. The Trailer
YouTube Video: http://www.youtube.com/watch?v=k1A9AdVd0Ks
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14. The Story Line
In Seven Acts
Moving to a Selling in
Growing Making Asking Learning Reaching
Permission
New a Down
Pains Friends Lessons Neighborhood Maturity
Economy
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15. Act One: Growing Pains
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16. Challenges

17. Act Two: Making Friends
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18. Developing the Strategy
HR IT
HR CRE IT
CRE

19. The AWESOME Project Team
Alternate Workplaces Engaging Staff and Office Management
Efficiencies
IT
HR
PMO
CRE
Legal
Marketing
Risk

20. What Did the Future Hold?
How Would We Embrace It?
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21. Act Three: Asking for Permission
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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. 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 parameters
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24. Skipping to the Happy Ending
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25. Three Dimensions of Success
EFFICIENCY – 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. 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
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27. Act Four: Learning Lessons
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28. Home Office Provisioning

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?’”
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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.”
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31. Act Five: Moving to a New
Neighborhood
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32. The New Space Concept
The Neighborhood
– Townhouse
– Single Occupant
– Collaboration Parks
– Phone Booths
– Café
– Library
– Mail Box Etc. / Copy
Center
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33. New Collaboration Spaces
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34. New Collaboration Spaces
-
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35. The Call Center Solution
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36. Touchdown Spaces
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37. The Townhouse
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38. The Townhouse
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39. Self-Service Space Planning
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40. Breaking Down Silos
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41. Act Six: Selling a Townhouse
in a Down Economy
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42. Cost to Reconfigure Space
Remain As Is
2,500,000
Furniture
Construction
2,000,000 A/E
Electrical
Cabling
1,500,000 Total
Cost
1,000,000
500,000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
-500,000
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43. Cost to Reconfigure Space
Change to New Concept
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44. Density of Occupation
Total Number of Employees Divided by Total Usable Square Feet
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45. Workplace Policy in Pictures
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46. Act Six: Reaching Maturity
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47. AWESOME Impacts
Business Continuity
Records Management Mail
Planning
Paperless Strategy Customer Outreach
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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
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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
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50. Making SCAN More Agile
The Organizational Assessment SystemSM
© 2002-2010 by Work Design Collaborative, LLC. All rights reserved.
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51. AWESOME Mentions
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52. And the Reviews are In. . .
Light
Many Fires
1
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53. And the Reviews are In. . .
Design
From Data
2
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54. And the Reviews are In. . .
Get Moving
&
3
Stay Moving
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55. And the Reviews are In. . .
Don’t Be a
Lone
4 Ranger
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56. And the Reviews are In. . .
Measure and
Manage
Results
5
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57. And the Reviews are In. . .
Live
the
6 Change
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58. But Never Forget. . .
It’s a Marathon
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59. Q&A Time
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