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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
Europe 10 million teleworkers (Source: ITAC)
Asia-Pac 3.3 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 Extender—95% of employees
Part-Time—85% of employees
Full-Time—300 employees
• Mutual benefits
Increases productivity 20–40%
Improves job satisfaction
Improves long-term commitment
ROI 300%
101010© 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
121212© 2002, Cisco Systems, Inc. All rights reserved.5573_06_2002_c1
Cisco Culture
Quality TeamQuality TeamNo Technology
Religion(Open Standards)
No Technology Religion
(Open Standards)Stretch GoalsStretch Goals
EmpowermentEmpowerment Trust/Fair/IntegrityTrust/Fair/IntegrityTeamworkTeamwork
FrugalityFrugality MarketTransitions
MarketTransitions
DriveChangeDrive
ChangeOpen
CommunicationOpen
Communication
Customer SuccessCustomer Success
131313© 2002, Cisco Systems, Inc. All rights reserved.5573_06_2002_c1
Technology
Business Process CultureCulture
Teleworking SuccessTeleworking Success
Technology Standards
• All culture and business processes embrace technology
• Cisco provides all its employees with e-mail, configured laptops, cellular phone service and pagers
141414© 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
151515© 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
• Cisco’s Softracker: Anytime, anywhere access to software downloads and upgrades
161616© 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
171717© 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 place—Focus shift to best work practices
181818© 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
191919© 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
202020© 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
212121© 2002, Cisco Systems, Inc. All rights reserved.5573_06_2002_c1
Best PracticesSummary
• 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
222222© 2002, Cisco Systems, Inc. All rights reserved.5573_06_2002_c1
Next Steps
• Use Cisco’s 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 that’s right for your company
232323© 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
252525© 2002, Cisco Systems, Inc. All rights reserved.5573_06_2002_c1
Teleworking Options
TeleworkerSatellite
Wireless
DSLCable
DSL Cable Satellite
and Wireless
Dumb CPE
Internet or SP Network
DSL, Cable, ISDN, FrameRelay 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
262626© 2002, Cisco Systems, Inc. All rights reserved.5573_06_2002_c1
Home Office Technologies and Products
PC LaptopPC 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 Video Conferencing
IP TelephonyIP Telephony
Collaboration Software Collaboration Software
Wireless LAN Wireless LAN
Office EquipmentOffice Equipment
Office SupplyServicesOffice SupplyServices
PC PeripheralsPC Peripherals
WAN ACCESS TECHNOLOGIES
Home Office Equipment,
Software and Services
Home Office Equipment,
Software and Services
272727© 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
282828© 2002, Cisco Systems, Inc. All rights reserved.5573_06_2002_c1
Cisco Vital Adjuncts
Policies
Training
Technology
Evaluations
292929© 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
292929© 2002, Cisco Systems, Inc. All rights reserved.5573_06_2002_c1
303030© 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
313131© 2002, Cisco Systems, Inc. All rights reserved.5573_06_2002_c1
Employee Testimonials
“My work-from-home arrangement began in 1994 as Corporate Marketing’s first telecommuter. That was as a casual teleworker of 1–2 days a week…Since then I’ve 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
323232© 2002, Cisco Systems, Inc. All rights reserved.5573_06_2002_c1
Employee Testimonials
“Practically speaking, I live in two countries—France 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 Park2) The Cisco office in London City3) My flat in Covent Garden4) The Cisco office in Sophia Antipolis5) 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 NowakIBSG PS Project Manager UK—Multi-Zone Part-Time Teleworker, 3 Months
333333© 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
343434© 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”
353535© 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
Cisco’s part
Voice over IP
Video collaboration
Mobile wireless
363636© 2002, Cisco Systems, Inc. All rights reserved.5573_06_2002_c1