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111 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1
2 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 The Cisco Telework Story Workforce Optimization May 2001
333 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Why Teleworking? Why Now? Drivers New technology New culture Tight labor market Resource prioritization Government regulation
444 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Factoids 2000: U.S.24 million teleworkers Europe10 million teleworkers (Source: ITAC) Asia-Pac3.3 million (2/3 in Japan) (Source: JALA International) 5.6% projected annual growth rate for teleworkers Teleworker churn continues to be high, with one fifth teleworking for under a year (Source: IDC)
555 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Cisco Story Challenge Solution Today Best practices Next steps
666 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Challenge 1992 Product development required the hiring of more and more engineers Labor market shortage Remote location workers Rising bay area real estate costs Need to scale workplace infrastructure *Maintain always-on customer satisfaction and coverage
777 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Solution 1993 Cisco Systems becomes one of the first companies in Silicon Valley to develop telecommuting guidelines and agreement for both employees and managers How did Cisco do this?
888 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Steps to Success 2002 Engineers served as pilot group HR drove collaborative effort (Facilities, IT, Finance) Guidelines addressed individual variabilities: Manager discretion Partnership with IT critical for security and standardization Measures of success Adoption rate Ease of use Output focus
999 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Today Close to 100% of all US Cisco employees have some form of secure remote access to the home Day Extender95% of employees Part-Time85% of employees Full-Time300 employees Mutual benefits Increases productivity 20–40% Improves job satisfaction Improves long-term commitment ROI 300%
10 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Remote Access Options 1.User Managed Service (VPN) 2.Vendor Managed Service Cisco Managed Service* (ISDN, Dial) Policy: Company pays for only one broadband service per employee Emphasis on broadband Global program *By Exception
11 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Best Practices: Company-Wide Deployment
12 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Cisco Culture Quality Team No Technology Religion (Open Standards) Stretch Goals Empowerment Trust/Fair/Integrity Teamwork Frugality Market Transitions Drive Change Open Communication Customer Success
13 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Technology Business Process Culture Teleworking Success Technology Standards All culture and business processes embrace technology Cisco provides all its employees with , configured laptops, cellular phone service and pagers
14 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Remote Access for All Available to all Straightforward, automated process Cisco provides employees a one-stop shop: Remote Access Services Dashboard
15 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Software Maintenance Always-on delivery of both standard and non- standard apps Push Technology Straightforward, automated process Ciscos Softracker: Anytime, anywhere access to software downloads and upgrades
16 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Cross-Functional Collaboration Top-down commitment Team effort from HR, IT, facilities and finance Cisco 1995: New World Workplace Work Anywhere, Anytime Scale growth Productive work space Technology Cost-effective solutions Innovation
17 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Guidelines, not Rules Scalable, official employee-sponsored program Posted and easily available to all Technology standards in placeFocus shift to best work practices
18 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Training Remote Work Guidelines available to managers and employees Workplace Specialists work with both parties to develop self-audits
19 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Virtual Team Guidelines Number of V-teams increasing Collaboration through advanced technologies Focus on building trust Make extra efforts to ask questions and listen carefully Define and agree on the decision-making process Accelerate collaboration Communicate, communicate, communicate Invest time Use technology to facilitate but not to replace human interaction
20 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Positive Environmental Impact Decreases air and noise pollution, energy consumption 1994 Cisco was a leading participant in the Smart Valley Telecommuting Initiative: Accelerate the deployment of telecommuting throughout Silicon Valley as a standard business practice and enhance the competitiveness and quality of life *Reduced air pollution and traffic congestion
21 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Best Practices Summary Leadership sets and communicates vision Manager and employee guidelines are widely available, straightforward and enforced Technologies and support services are methodically assessed Facilities adapt to new world workplace
22 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Next Steps Use Ciscos ROI tool to help understand your current telework program and how you can realize additional cost savings Evaluate your total cost of ownership and the benefits of outsourcing your telework deployment Assess your telework remote access bandwidth needs to understand the advantages of rolling out a broadband solution Engage a Cisco ecosystem partner to design a formal telework program thats right for your company
23 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1
24 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Add-Ins
25 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Teleworking Options Teleworker Satellite Wireless DSL Cable DSL Cable Satellite and Wireless Dumb CPE Internet or SP Network DSL, Cable, ISDN, Frame Relay Router with Point to Point or VPN Access Dual Ethernet Router with Security Software PIX FW or VPN HW Client VPN Client Software VPN Access Concentrator PIX Firewall with VPN Termination Router/VPN Tunnel Server Corporate Headquarters ISDN or Frame Relay Network
26 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Home Office Technologies and Products PC Laptop DSL Router (Private Line) Cable Router and VPN DSL/Cable and VPN Client DSL Router and VPN DSL/Cable and VPN/Security Appliance ISDN Router DSL/Cable and Dual Ethernet Router Video Conferencing IP Telephony Collaboration Software Wireless LAN Office Equipment Office Supply Services PC Peripherals WAN ACCESS TECHNOLOGIES Home Office Equipment, Software and Services
27 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Benefits of Cisco Router-Based Teleworking Solutions One-box solution Broadband access (DSL or Cable) Business class security with Cisco IOS software (stateful inspection firewall and IPSec 3DES) QoS features for voice, video, and application aware networking Simplified management: One operating system No need to configure client software Remote troubleshooting Remote security policy updates
28 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Cisco Vital Adjuncts Policies Training Technology Evaluations
29 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Quality of Life Teleworkers have higher job satisfaction Work/life balance Reinforces culture of empowerment More control over schedule 29 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1
30 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Employee Testimonials With my laptop and DSL, my PC is always on, so when I get up, I can immediately see if there are any fires that need to be put out right away. I can do that without having to waste commute time. I put the fire out and then walk to my kitchen and grab a cup of coffee…The largest benefit to Cisco, in my opinion, for teleworking is increased productivity (Cisco is getting more from me than before, due to my increased availability). The biggest benefit for me is that I can spend more time with my children. I used to be a Big 5 consultant traveling 5–6 days a week. I have never been happier because I now am able to become involved with my kids lives, and especially (which is my favorite time of all) read to my children and put them to bed every night. Bob Frazier, Vertical IBSG Manager, Manufacturing Full-Time Teleworker, 1 Year
31 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Employee Testimonials My work-from-home arrangement began in 1994 as Corporate Marketings first telecommuter. That was as a casual teleworker of 1–2 days a week…Since then Ive moved on to full-time. The full-time teleworker must be a completely loyal and dedicated professional and have a desire to make better an already great situation… My present, and long-standing office technology consists of my laptop and docking station. I have personally purchased my own color and b/w printers, fax, external storage drive, and scanner. These I purchased, including my office furniture, without hesitation or asking for assistance from my BU. I feel it a privilege to telework and am willing to go that extra distance in support of my teleworking arrangement. Gary Stewart, Technical Illustrator/ Corporate Icons Corporate Publications Full-Time Teleworker, 3 Years
32 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Employee Testimonials Practically speaking, I live in two countriesFrance and the UK. I go from France to the UK pretty much every week, as part of the flexible arrangement I worked out with Cisco during the recruiting process. The net result of this is that I spend, on average three-four days per week working for Cisco in the UK, and one-two days per week working for Cisco in France. As it turns out, Cisco has an office in Sophia Antipolis, which is 13km from my house in France. In the UK, Cisco has an office in Stockley Park, which is right beside Heathrow airport. Cisco has another office right smack in the centre of the bank district in London, which is only three tube stops from my flat in Covent Garden. The net result of all this is that I have the flexibility to work from five different places if I want: 1) The Cisco office in Stockley Park 2) The Cisco office in London City 3) My flat in Covent Garden 4) The Cisco office in Sophia Antipolis 5) My house in Cannes This is worth gold to me. I think it is safe to say that, if I didn't have this type of flexibility, I wouldn't have accepted the job with Cisco. Robert Nowak IBSG PS Project Manager UK Multi-Zone Part-Time Teleworker, 3 Months
33 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 IDC Study May 2001 The big picture Most teleworking arrangements are informal, with formalization of policies varying considerably by industry Most companies have a culture that supports teleworking Level of centralized management for teleworking varies by industry Teleworking expected to become more widespread
34 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 IDC Study Conclusions Teleworking is here to stay Corporations continue to support telework because they recognize the importance of offering flexible working styles for valuable employees who need to balance work/life issues Typical comment: I think employees want to balance work and family, and to minimize commuting. I think employees are more productive when they telework…Teleworking also reinforces employees commitment to the organization
35 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1 Future IDC predicts day extenders to increase 4.8% from 25 million (1999) to 31.6 million households by 2004 Ciscos part Voice over IP Video collaboration Mobile wireless
36 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1
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