© 2011 IBM Corporation Work/Life Integration at IBM Lucy M. Chan, Director, Growth Markets Business Development, IBM Corporation May 7, 2011

© 2011 IBM Corporation2 IBM Work/Life Program Heritage 1956 – to Date ’s Individualized Work Schedules 1992 FWLOA extended to 5 years 1997 Regular Part-Time Leaves of Absence 1999 FWO’s in 11 LA countries Work Life Zone 2009 Special Care for Children First Work Life Survey 1983 Child Care Resource & Referral 2001 Global Work Life Fund th Global Work Life Survey 2011

© 2011 IBM Corporation3 The Changing World of Work … Transforming “Work/Life Balance” to “Work/Life Integration” Evolving family and social structures drive employee needs, perceptions and expectations Increased global contacts result in the disappearance of “9 to 5” and fixed continuous schedules Ubiquitous low cost technology enables and generates work 24x7x365 from any location Enabling the Global Enterprise

© 2011 IBM Corporation4

5 IBM began its mobility program in the early 1990’s and now supports over 160,000 employees worldwide Mobility Objectives Increase customer satisfaction Improve employee productivity Generate significant cost savings Improve attraction and retention of talent Target Workforce Segments Sales Client Services & Support Increasingly, more jobs can be performed remotely Mobility is a continuous journey 1995: 10,000 employees in the US 1998 – 2000: Global implementation 2010: 160,000 formally identified remote workers 2011: Workplace of the Future; enable full mobility

© 2011 IBM Corporation6 The Changing Work Environment in IBM C (customer) 1.4% S (office) 74.5% H (home) 0.4% M (mobile) 10.6% N (non-office) 13.1%

© 2011 IBM Corporation7 Flexibility Principles 1.The Enterprise never stops 2.Balancing of needs 3.Trust and personal responsibility 4.Range of options 5.Understanding differences 6.Focus on results

© 2011 IBM Corporation8 Compressed Flexible Work Week Individualized Work Schedule Leave of Absence Part-time Reduced Work Schedule Job Share Mobile Work–at–Home IBMers Have Options on How, When & Where to Work: Flexible Work Options (FWOs)

© 2011 IBM Corporation9 Work Life Tools

© 2011 IBM Corporation10 IBM Global Work/Life Fund: $50M Multi-Year Fund Primary Goals: Enhance IBM’s position as THE global work/life leader Contribute to the recruitment and retention of top talent Mission: Increase supply and improve quality of dependent care where our employees live and work by providing attainable and desirable dependent care options to employees … locally recognized as high quality, desirably priced, convenient Provide support with consideration given to local culture, norms and standards and international values Provide support along the career life cycle to key talent Recognize and respond to emerging markets and changing workforce demographics and needs (e.g., mobile, frequent traveler, aging, young) Provide tools/supports for managers and employees to better take advantage of flexibility

© 2011 IBM Corporation11 Resource & Referral Programs Work/Life Resource and Referral (R&R) is a service developed to help employees manage work and personal responsibilities by providing information on topics and services that are important to them : R&R in the United States R&R Globally Provided –Launched in 2005 as the first ever Global R&R –Available in 31 countries and 8 languages with enhancements and expansions into more countries planned: Argentina, Australia, Brazil, Chile, China, Colombia, Czech Republic, Ecuador, Hong Kong, Hungary, India, Indonesia, Ireland, Northern Ireland, Mexico, New Zealand, Peru, Philippines, Poland, Russia, Scotland & Wales, Singapore, Slovakia, South Africa, Spain, Taiwan, Thailand, UK England, Uruguay, Venezuela Unique R&Rs in different countries: Australia, Brazil, Canada, France, Germany, Japan, Switzerland

© 2011 IBM Corporation12 Increased customer satisfaction Better accessibility to IBM team More “face time" with IBMers More productive at customer site Faster response to inquiries Increased customer satisfaction Better accessibility to IBM team More “face time" with IBMers More productive at customer site Faster response to inquiries Customer Benefits IBM achieved cost savings and improved client & employee satisfaction through mobility (hidden) Mobility centers saved 2 million square feet and 7,500 workspaces Savings and/or cost avoidance of approximately $100 million each year (hidden) Mobility centers saved 2 million square feet and 7,500 workspaces Savings and/or cost avoidance of approximately $100 million each year Real Estate Savings (hidden) Eases traffic congestion on freeways More efficient energy use Cleaner air federal clean air act (hidden) Eases traffic congestion on freeways More efficient energy use Cleaner air federal clean air act Environmental Benefits (hidden) Productivity improvement More “face time" with clients Improved customer satisfaction More accessible and responsive Work longer hours with less impact on personal / family life Higher morale Greater loyalty Use what we sell (hidden) Productivity improvement More “face time" with clients Improved customer satisfaction More accessible and responsive Work longer hours with less impact on personal / family life Higher morale Greater loyalty Use what we sell Employee Benefits (hidden) Substantial real estate savings Increased employee retention Enhanced productivity Lower absenteeism Increased revenue Company Benefits

© 2011 IBM Corporation13 IBM : Summary Then and Now Benefits Getting ThereCritical Success Factors  IBM began to formalize mobility as a program in 1995  Today more than 40% of IBM’s workforce works remotely  Significant Real Estate cost reduction  Supports Green initiatives  Enhances workforce productivity & morale  Supports global integration and business continuity  Holistic approach and cross-functional program support  Clear mobility policies – HR, technology, expense, procurement, etc  Technology as an enabler  Executive Champion  Define objectives and align to business strategy  Identify program champion and owner  Formalize the program  Pilot and adjust  Continuously improve Governance Processes Policies Education Technology Metrics

© 2011 IBM Corporation14 Workplace of the Future What we know about people and work...  Work used to be a “place”, now it's any place  Growing mobile/OTTO (Other Than Traditional Office) workforce  Need to work across time zones and geographies (peer-to-peer video)  The proliferation of devices... work doesn't have to be done on a laptop anymore  Technology enabling a different kind of work and culture  Entrance of Gen Y... the social media generation

© 2011 IBM Corporation15 Workplace of the Future recognizes and supports generational diversity New generation (born after 1980) Mid- career (Age 35 – 50) Experienced workers (Age 50 +) social networking instant messaging growing as % of workforce shrinking as % of workforcegrowing as % of workforce wisdom and intellectual capital of the organization essential professionals and middle managers critical to long-term viability and innovation

© 2011 IBM Corporation16  Align the mobility program to the business strategy and objectives  Formalize the mobility program Governance Processes and Controls Policies  Conduct a trial, refine the program, expand  Assign program ownership  Continuously assess and update Roadmap  Formalize the enterprise objectives for mobility  Identify Executive champion(s)  Engage stakeholders Education Enablers Metrics Thank-you! Lucy M. Chan, IBM