Global Flexible Thinking in relation to working practices

What is the business case? Being a global organisation GSK operates 24/7 and has a diverse array of employees, customers and patients. In order to meet the needs of the business going forward we need to draw on the differing knowledge, perspectives, experiences and working styles that exist in our global community. We need to trust and empower employees so that they feel motivated to work at their optimum level and to ensure that we attract and retain the best to create a sustainable succession of leaders with the skills and expertise to support our strategy, values and behaviours. Flexibility is embedded in the Spirit of GSK (link to Spirit). It can help reinforce some of the GSK Values and Behaviours to achieve far reaching benefits and is linked to the Strategy through encouraging a culture of Individual Empowerment and Building Trust. Our values underpin decision making at GSK and the way our employees are expected to work. In particular, related to flexibility are the values of Respect for People; Transparency; and Integrity. In our values-based company, we seek people who have high integrity and will make good, honest decisions with patients in mind. With regards to the GSK Behaviours those that are particularly relevant to Flexibility include, of course, Flexible Thinking but also relevant are Customer Driven and Developing People.

Why the focus on flexibility now? Flexibility in relation to working practices exists now, but the benefits of introducing greater flexibility and acceptance within our working culture are far reaching including: Creating a more trusting and empowered workforce Improving productivity through the discretionary effort put in by fully engaged, resilient employees Helping us retain and attract the best talent, and helping us become the employer of choice Generating cost savings that will benefit us all, for example in freeing up space, cutting down on employee travel and reducing absenteeism Creating an environmentally friendly and people friendly workplace, helping us build a legacy for our future growth, health and sustainability Maximizing productivity and innovation through creatively thinking about and implementing more efficient ways of working

For GSK to be a leading global player in a 24/7 highly competitive environment, flexibility is a must especially when seen as a business solution and imperative rather than purely as a soft employee benefit for working parents. Put simply it will enable the business to deliver more for less. This is the future of work.

Global Guiding Principles

Enabling us to deliver our strategic business objectives through maximising productivity and innovation by focusing on where, when, and how we work.

Productivity not Presenteeism

it's outputs that are the currency not time

Its good for our health

its good for the business, for employees & for our customers

It's for everyone as long as there is no business detriment

Its informal as well as formal

Good managers empower high performers & manage poor performers

Flexibility does not limit career progression

Flexibility gives some control back to the individual

to deliver their outcomes on their terms

Managers define the challenges & the team deliver the results

Flexibility requires clear, active communication

1. Productivity (engagement) not Presenteeism

What does this mean?

Its about the effectiveness of the individual Having fully engaged employees Work being an activity not a place Willingness of the employee to give discretionary effort Its about the quality of the outputs Its not about just being seen in the office Exploring possibilities, creating options, evaluating different courses of action Breaking free from habitual thinking ("I know best how to do this")

Quotes

"I work in projects. There is no such things as a 4/5s of a project to do in my four days. I probably work harder and smarter than I was when doing five days a week but I am pleasantly surprised that it is possible to do it in 4 days"

"My clients are based in APJEM and so there is no point me working 9-5 from GSK House - I usually work late at night"

Stories
Internal: GSK Costa Rica supports working from home one day per week. Due to a country-wide greenhouse emissions initiative that only allows cars to travel on the roads 4 days per workweek, e.g. certain auto licenses are not allowed to drive on one day per week. Without work-from-home, some people would not be able to get to work and/or they would have had to come up with an elaborate carpooling scheme that would have resulted in some employees being in the bus for hours of unproductive time. Contact Kattia Gonzalez-Chacon, HR Director in CR External: At Microsoft people are now getting used to the output management culture and are becoming far more accountable for their results than they have ever been. When people first started working from home they would be logged in to the system all day because they still had a presenteeism attitude to work. Now as long as they keep their Outlook calendar up to date managers are not worried about where and when people are working. In fact they can probably find someone more quickly now through the technology than they ever could if they were working somewhere in the building.

2. Its good for our health

What does this mean? Business perspective:
Helps us attract and retain key talent in the business and supports GSK to become an employer of choice Creates a more trusted and empowered workforce Research shows likely to improve productivity through discretionary effort put from fully engaged, resilient employees Reduces dead-time staff choose to work when required to met business needs Generates cost savings such as freeing up space, cutting down on employee travel and reducing absenteeism

Customer/patient perspective:
Company is more responsive to their needs Creative thinking drives innovation therefore delivering more value to the customer/patient

Employee perspective:
Gives the employee some degree of control of their whole life and thereby reduces stress and leads to greater resilience Helps build trust which in turn leads to employees with improved motivation and energy for performance Empowers and engages employees

Quotes
"Flexible working can cut churn rates for employers, allowing them to retain the best talent, maximise their productivity and ensure a motivated workforce as we come out of recession. Andrew Milliard Director of e commerce for EMEA at Citrix "I can spend 3 hours a day in traffic or the 3 extra hours at my laptop. I can see the clear benefits in avoiding a lengthy commute everyday and I am so less stressed"

Stories

Key talent are choosing which company they want to work for by how flexible that companys ways of working are. Feedback from GSK Spain is that when recruiting staff are as interested in the flexible working options as the benefits package. If GSK is not seen to be flexible then we may lose key talent or not attract them in the first place.

The BT Workstyle project is believed to be one the largest flexible working projects in Europe. It involved 70,000 BT employees. Cost savings included 725 million euros per annum through reductions in office estate, and the 11,66 homeworkers saved the company 104 million euros a year in accommodation costs and are on average 20% more productive than their office based colleagues. For customers this means that their issues are dealt with more immediately.

A few words on trust. Trust is the smallest word that makes the biggest difference. "It underpins and affects the quality of every relationship, communication, project and effort. Organisation's that maintain imrpoved levels of trust experience greater business performance" says William Johnson, of The Great Place to Work Institiute. Also Cary Cooper Professor of Ogansiational psychology and health at Lancaster Universty says " If there is trust it means workers can be relied upon to get the job done to a high standard wherever they are - whether that is at home, in the office or at the airport"

3. It's for everyone as long as there is no business detriment

What does this mean? Can be considered for all levels / grades of staff Variety of options to be considered Creative thinking may be required for some groups eg production line It does not need a reason it may be a life choice Costs may increase to provide technology? As long as there is no business detriment in terms of productivity, safety or cost It is NOT an entitlement though this is something that is agreed between an individual and their manager and an individual and their team when it is appropriate With flexibility come responsibilities to ensure that business needs are covered This isnt limitless on the side of the employer or employee and this needs to be recognised

Quotes
"Because I have team members coming in early and finishing early I can have the office covered from 7am until 7pm

"Challenge the perception that jobs cannot be done in a flexible way"

Stories
"At GSK remote working featured heavily in our contingency planning for SARs and Bird Flu and many staff were given the tools to work remotely in case the plans had to be put in place. Then when the snow hit earlier this year in both USA and UK as well as the Ash Cloud we found that having teams geared up to remote working meant that it was close to business as usual for us in most places across the globe"

In an administation role - when we moved from Greenford to GSK House my manager initially allowed me to work at home at the beginning and end of the day to avoid the rush hour and to help facilitate my move to GSK House. It has worked so well that we have continued the arrangement as I am happy to be much more flexible with hours and work when required in my own time as I feel valued and trusted In L&OD Dan is employed 3 days per week by GSK and he flexs those days so doesn't work the same 3 days each week. He works for GSK when he will be most productive and when GSK need him . Then on the other 2 days a week he runs his own business. He finds the flexibilty empowering and it allows him to do so much more. Also GSK get more from him. For example if a meeting gets cancelled he may decide to go home rather than just try and fill that time and then he'll make sure that the folllowing week he puts in more time when he can be most productive.

4. Its informal as well as formal

What does this mean? Formally policies and working practices operate in many countries Managers / individuals can make decisions informally without any formal changes to terms and conditions Business needs are to be considered Can flex over time dependent upon business and employee needs its about being adaptable and this can change with changing business circumstances Quotes

"Managers need to be empowered to make the decisions - HR policies are there for guidance in many circumstances and should not override the rights of the manager and team to make the decisions - formally or informally if that is right for the team and the business - except where there are legal requirements"

Stories "Senior people here do work flexibly but many staff would not see them as flexible workers. They are often out of the office but no one questions whether they are working from home or in a meeting "

In Ireland there is a flexible hours in place which defines the core hours that must be worked and can be flexed around - staff need to be availalbe between 10-12 and 2-4 outside of that they can flex there hours - this can be done either in the office or at home

In a number of the business in GSK Spain employees formally have the choice to start work between 8.00am-9.30am and leave between 5.30-7.00 and finish at 3.00pm on Friday - in Summer months employees can start at 7.00am and leave at 4.30pm if they wish. In addition to this there are many many examples of informal flexible working practices in place

5. Good managers empower high performers & manage poor performers

What does this mean? Leadership capability is key Leaders must be visible in changing their own ways of working Clear PDP process is key to ensure that objectives are delivered against and ideally should become a real working document which is discussed regularly at 1:1s and not a once/twice a year process Clarity of expectations and ways of working Clear and honest feedback Managers know how to get the best from individuals by understanding what motivates them Regular communications Managers need to make tough decisions and manage poor performance May mean changing decisions on flexibility if its not working or the pattern is not right for the individual or team

Quotes

"Once I saw my manager working more flexibly I thought I would try it and I feel so much more enlightened for doing so. I feel more able to think outside the box"

"Managers need to manage not command and control"

"Poor performers and flexible working are two separate issues - people dont work poorly because of flexible working - it would happen anyway and needs to be managed"

"in a manufacturing environment, presenteeism is inextricably linked to productivity. In this context, innovative approaches to team flexibile"

"Overcoming managment mindset that employees won't be productive if not visible is key"

Stories

More than 40% of Commercial IT staff at GSK work remotely from their manager so it is key that the PDP process is robust. It's outputs that people are assessed on when you don't see your boss face to face - Sophie Jackson IT HR

When I worked in Malaysia my staff and I had to interact with managers who manage staff in the IT centre who are based in UK/Europe and USA - I adjusted my working activities depending on the needs - some days I started work in the afternoon as was on calls until late at night - some days I took the afternoon off to persue personal activiites and logged back on in the evening when UK/US are on line - I adjusted my personal life and work life to met the needs and enjoy the degree of flexibility it gave to me and also encourged my team to do the same.

6. Flexibility does not limit career progression

What does this mean? Individuals will be included in talent reviews Individuals will be considered for development opportunities Quotes

"Take the time to network - it can be done remotely as well as face to face"

Stories

7. Flexibility gives some control back to the individual

What does this mean? This is about choices an individual has in delivering the outputs within the boundaries of the needs of the business choices in how they deliver their work and how they structure their time Feeling less stressed eg. Logging in first thing to let the traffic die down then coming into the office later on having achieved a great deal at home and feeling much happier and productive when in. This is about respect respect for the individual and respect for everyone else and allow people to make their own choices Drives engagement and motivation QuotesStories
"I stayed at home working until the washing machine repair person had been and then drove into the office - It made so much sense"

"I am training for a marathon and recently started training during the day - I find this boosts my engery levels and when I return to my work late afternoon I am so much more productive than had I sat at my computer without taking the exercise - I am now encouraging everyone that they should take some exercise during the working day"

Semler: At Semco the HQ was disbanded to 4 hubs across town where people booked themselves into dependent upon where they lived, who they were meeting that day or which restaurant they were going to that evening. The control moved to the individual to decide and it also eliminated the insecurity of the boss who controlled through glancing, glaring and gloating.

In the 7 day weekend Ricardo Semler talks about a shipping and receiving clerk who once thanked him for the new flexible working hours available on the shop floor. This individuals group had decided to start work well before the morning rush hour to avoid traffic and at the other end of the day they left for home much earlier. For the first time in his life he was able to pick his grandchildren up from school. He had never been able to pick his own children up and that period of their lives had been lost forever. He was more moved by the unexpected freedom to be at the school than he was about beating the rush hour.

"At a sombre teleconference one of the participants suddenly cheered "welldone" on the line...transpires he was sitting in his car partaking in the teleconference but watching his daughter play an important hockey match and she had just scored a goal! He didn't want to miss either and so made sure he had the right technology to be able to do this"

8. The manager defines the outcomes and the team deliver the results
What does this mean? The manager communicates clear objectives The team contracts on how the work gets done with input from the manager Team discuss ways of working and review and adjust as necessary Team trust each others individual contributions Team need to be able to air concerns and have honest conversations Team needs to be willing to adapt and flex as required to support business and individual needs There may well be different patterns within the team Quotes

"Consider working practices in the context of the whole team. It is Team performance that is key"

"As a team we took the time out of the office to brainstorm and review our working practices - went to a team members house and spent day in garden brainstorming and thinking about what to change- this enabled us to fully focus with no distractions - we would never have been as creative or focussed in the work environment and it was fun"

Stories Flexible working arrangements are typically negotiated between manager and the individual. Managers need to consider working practices in the context of the whole team and facilitate a discussion with the whole team about how, when and where work needs to be done. Discussion as a team promotes transparency and fairness and promotes a view of flexible working as a tool for achieving business objectives rather than a benefit for working mothers.

Dispersed teams at GSK are already doing this - the manager defines the goals and aspirations and shares these at a face to face meeting with the team and then the team agree how best to achieve those goals. They divide into sub-groups and hold monthly VTCs and/or TCs.

9. Flexibility requires clear, active communication

What does this mean? Regular 1:1s Agreeing Ways of Working Forming and communicating with manager, team, customers, stakeholders own personal communications rules Employees staying up to date with company / team communications Depending on the communication considering the most appropriate communications channels eg) face to face, teleconference, video conference, Communicator , email etc Quotes

"Setting personal 'rules' are key"

Stories

At Microsoft people are using instant text messaging as a way of chatting informally. When you see that someone else is available you may send them a sort note in the same way you would have done when meeting them in the corridor. This is providing a lot of short snappy communications between people.

At GSK Biologicals in Belguim as people were working all hours it has been agreed that emails are NOT sent at the weekend so that people don't feel under pressure to respond back over the weekend.

We have many different working practices that operate across our team - however as a team everyone must work at minimum in the office on a Tuesday and Thursday and this time is used to ensure the team connects and have face to face interactions.

Additional information
Case Studies
BT Workstyle project (add link here). The BT Workstyle project has enabled the company and its people to become more flexible (they term flexible working as Agile working)and efficient, in order to meet increasingly demanding and varied customer expectations in a 24/7 market. BTs Transformation Bringing it together; Agile Working (link) This presentation from BT shows the journey they have ben on, the benefits theyve seen as a result of Agile working; some barriers and challenges as well as some key facts. Deloitte Drivers for Change of mindset (link) Generation X /Y. The Workforce has changed but the workplace has not.

Surveys
Research shows the difference in output performance between engaged and unengaged employees (Link). Surveys from around the different regions showing differing working patterns in place and explaining some of the barriers - Outputs from Flexagility project 2009 (Link). Changing work to meet the future UK Equal Opportunities Commission report sees flexibility as the way to go (link). Out of Office II: Building teams for an agile future (link). A survey by Opportunity Now, an organisation that works with employers to accelerate change for women in the workplace, surveyed 1500 managers and team members to understand their attitudes to flexible working (agile working). The research showed a clear link between agile working and employee engagement but also a career penalty for agile workers (Link). CHPD study on GSK behaviours (link) CHPD finding that Flexible Thinking is GSKs weakest behaviour CLC research: Driving Performance and Retention through Employee engagement (link)

Books
Maverick by Ricardo Semler The Seven Day weekend by Ricardo Semler The Future of Work by Richard Donkin When Cultures collide by Richard D Lewis

Glossary
Presenteeism = being seen. Being visible in the office but not being very effective. Just because you are in the office doesnt mean that you are working. Discretionary effort = effort over and above. The employee decides how far open to turn the valve. The employee decides how much effort they are going to give to each task and to everyday of their employment says Bob Rosen author of The Healthy Company. If you create an environment that motivates employees to turn the valve to full throttle, you can outperform any competitor any day of the week. Because its the creativity, the ingenuity, the longevity, the loyalty of the employee base that makes it all happen. Agile working = working flexibly Hot desking = no dedicated desk in office ability to work from any desk/location SMART working = thinking creatively about way of working/space/location to drive best results Teleconference = facility to have multiple people on a call have interactive meetings via telephone technology EVP= Employee Value Proposition