Mastering the Art of a Flexible Culture

How the Working Mother 100 Best Companies Create a Flexible Culture

Sponsored by:

In collaboration with:

Report Author: Sandy Burud, Ph.D., Chief Strategy Officer, FlexPaths, LLC October 2009

Introduction Flexible work practices are at a turning point a change reflected in the 2009 Working Mother 100 Best Companies application. Recognizing that its one thing to allow flexible work and quite another to create a culture and climate that legitimizes and encourages it, the 2009 application featured a new emphasis: In addition to asking what types of flexibility were offered and their use patterns, the application asked how companies build flexibility into their cultures a much harder thing to accomplish, but indispensable. The application also asked: Are flexible work practices in their corporate DNA? And how had that happened? In addition to reporting the new survey data, this report spotlights the case studies of seven companies that have institutionalized flexibility to demonstrate how that can be accomplished over time. These companies share their approach to the challenge, what they have learned in by integrating flexibility into the fabric of their organizations and a sample of the results they have achieved.

Mastering the Art of a Flexible Culture: Key Findings*

At the Working Mother 100 Best Companies, flexible work is officially part of the cultural DNA. It is the new normal. Indeed, 95% of 100 Best Companies say it is their standard way of doing business. The 100 Best see flexible work practices as more than formal flexible work arrangements, but also also occasional (informal) flex, career flex, and a culture and climate that encourage and legitimize flexible work. The stories of The Procter & Gamble Company, CISCO Systems, IBM, American Express, At the 100 Best flexible work practices are in full Citi, Ernst & Young and Deloitte reveal common view: threads in how flex became part of the culture. At 98 companies, leaders promote or use flex Their lessons learned and secrets to success inthemselves and future leaders are drawn from clude: a pool that includes people who work flexibly 1. Align with other internal players whose inter 87% feature flex in corporate objectives, misests are allied. sion, and vision and value statements. 2. Leverage technology in all its forms. Flex is an explicit part of the employment 3. Establish the connection to measurable busibrand (externally 95%; internally 91%). ness goals. 4. Experiment, be bold and make it your organiFlexible work is a strategic business imperative: zations own. 94% say it is essential to the business strategy 5. Communicate. Communicate. Communi(more than an accommodation benefiting emcate. ployees). Flex is connected to other business objectives This behind-the-scenes glimpse at seven 100 Best to organizational change (94%), sustainabil- Companies finds that the bar has just been raised. ity/ environmental strategies (86%), disaster As of 2009, a great employment brand requires planning (75%), and facilities planning (74%). meeting a new standard. It is not enough to offer Flex is included in such business processes as flex; flex must be integral to how business is done, hiring leaders (98%), diversity and inclusion as it has become an essential route to results. (91%), leadership development (90%), and training (87%). Next Up Still, there are tools and techniques whose full potential is unrealized. Emerging practices that can take it to the next level include: ManagerRewards/Accountability. Holding managers accountable for making flexible work a success is not yet common practice. Less than half of the 100 Best (48%) now evaluate/ reward/select managers based on their ability to support flexible work; less than one quarter (23%) include whether managers promote flex in their compensation. Technology. New technology tools are not yet fully leveraged. 53% of the winning companies

use technology to handle flex requests track its use (55%) and less than three-fourths (72%) report having systems whose goal is to ensure consistent and fair application of flex. Impact Metrics. Although nearly all winning companies consider flex essential to their strategy, only 50% measure the impact of flexible work practices on business performance. More, but still less than three-fourths (72%), measure the impact on talent goals.

How the Working Mother 100 Best Companies Create a Flexible Culture
*Self-report data from 2009 Working Mother 100 Best Companies award application.

Mastering the Art of a Flexible Culture

PART I: TRANSFORMING FLEXIBLE WORK OFFERINGS TO CULTURAL DNA What do the Working Mother 100 Best Companies do to embrace flexibility and ensure that their cultures and systems support and optimize it? HOW DO THE 100 BEST COMPANIES DEFINE FLEXIBILITY NOW? Formal Flex + Informal Flex + Flex Culture + Career Flex Flexible work was once equated with formal, prearranged changes in when or where you worked. In 2009 nearly all 100 Best Companies also included in their definition occasional informal flexible and a culture/climate that makes flexible work legitimate. Career flex (non-linear pathsie: the ability to leave and return or slow the pace of advancement without a disproportionate penalty) is quickly becoming a core element, with 84% including it as well in their definition of a flexible workplace. HOW INTEGRATED IS FLEXIBILITY ACROSS THE ORGANIZATION? Not only do the 100 Best offer flexibility, they integrate it throughout their people practices and systems, making a point of including it in: Hiring Practices 98% announce the opportunity to work flexibly in their recruiting process and employment messages 96% train recruiters and hiring managers on how to effectively present the company and specific jobs to candidates for whom working flexibly is important Diversity & Inclusion Efforts

91% have a diversity strategy that promotes and facilitates flexible ways of working and creation of a flexible workplace 99% recognize career and life differences as an aspect of diversity and inclusion Employment Brand 91% have incorporated flexible work and their flexible culture in its internal employment brand 95% have incorporated flexible work and their flexible culture in their external employment brand Talent Management Processes 90% have incorporated flexible work in their leadership development processes 99% make flexible careers viable and possible (i.e. enable an employee take time out and return without penalty, slow the pace of advancement proportionally or step down from management responsibility and remain on a strong career path) 100% of companies include employees who choose a flexible career path in mentoring programs and give them opportunities to stay connected and maintain relationships while they are working less or not working 87% offer training to managers on implementing and managing employee flexible work arrangements; 37% have trained managers in the past year 97% encourage managers and employees to experiment with flexible work and pilot new ways of working to pursue continuous improvement 48% evaluate, reward, and select managers based on their ability to support flexible ways of working

23% of companies say manager or supervisor compensation is impacted by employee utilization of alternative work arrangements Operational Systems 98% have the technology systems/tools in place to facilitate flexible work and eliminate barriers to success 92% have work/distribution systems and planning processes in place to create greater predictability about what work will need to be done and when

measures such as customer retention, overhead cost reduction and shareholder value 90% benchmark their flexibility practices against peer companies Business Strategy 94% consider flexible work practices as essential to the business strategy rather than primarily an accommodation or benefit to employees 98% identify flexible ways of working as part of a human capital approach that treats people as assets, rather than costs

89% have accounting systems that support How do the 100 Best put flexibility to work? flexible work (e.g., use FTEs instead of headcount for budgeting) 94% include it in organizational change - cultural transformation to include new ways of 72% have systems for monitoring whether opworking portunities to work flexibly are implemented consistently and fairly 86% include it in sustainability and environmental impact - via telecommuting, com53% have an intranet or extranet site to allow pressed work schedules, etc employees to request a flexible work option and be notified of approval or denial of their 87 % include it in strategic planning, e.g. inrequest corporating new ways to work into workforce planning 55% have a technology-based mechanism for tracking the use of flex 75% include it in emergency/disaster preMeasurement paredness (e.g. training and equipping teams to work remotely) 88% have assessed whether there are any roadblocks to attracting, hiring or retaining 74% include it in facilities planning - reducing employees who value the ability to work flexfacilities costs by enabling more mobile/viribly tual/flexible work 72% measure the impact of their flexible culture and practices on talent goals (e.g., achievement of diversity goals, employee engagement and resilience, success at promoting and retaining candidates/employees who work flexibly) 50% measure the impact of their flexible culture and practices on business performance CULTURE CHANGE: HOW ARE THE 100 BEST EVOLVING THEIR FLEXIBLE CULTURES? These include the environmental assumptions and conditions in which flexible work happens. 95% consider flexible ways of working a standard way of doing business, rather than excep-

tion take it to the next level include: 100% grant requests to working flexibly on Manager Rewards/Accountability. Holding mana reason-neutral basis (decisions are based agers accountable for making flexible work a solely on whether work goals can be met) success is not yet common practice. Less than half (48%) now evaluate/reward/select man100% give equal access to advancement, and agers based on their ability to support flexquality of assignments to employees who reible work; less than one quarter (23%) include quest to work flexibly or who already work whether managers promote flex in their comflexibly pensation. Technology. New technology tools are not yet 86% have a process for continuous improvefully leveraged. Only half use technology to ment of their flexible work practices (e.g., rehandle flex requests (53% do), track its use evaluating jobs or work units where flexible (55%) and less than three-fourths (72%) reopportunities could be made available in new port having systems whose goal is to ensure forms) consistent and fair application of flex. Impact Metrics. Although nearly all consider 87% feature their commitment to flexible flex essential to their strategy, only 50% meawork in organizational communications about sure the impact of flexible work practices on the culture - in corporate objectives, mission, business performance. More, but still less vision and value statements than three-fourths (72%) measure the impact on talent goals. 98% report that top management demonstrates a commitment to flexible work (e.g. in In short, for the 100 Best Companies, flexibility executive statements or by utilizing flexible has become part of the fabric of their business, inschedules or practices) tegral to processes and performance and a key factor in business success. Still, there is room to 98% choose and develop leaders from a pool take advantage of new techniques and technolothat includes employees who work flexibly gies and use flexibility in how, when and where work is done to achieve even better business reEMERGING TRENDS AND OPPORTUNITIES sults. FOR CONTINUOUS IMPROVEMENT Note: These are self-report data from the 2009 WorkCreating a flexible culture clearly goes way be- ing Mother Working Mother 100 Best Companies apyond simply issuing a set of policies or guidelines. plication, completed in Spring 2009. As flexibility has matured, it is a complex undertaking to do it right as illustrated by the companies who are best at it. Commonalities among the 100 Best are as follows: Define flexibility broadly Integrate it across organizational stakeholders Connect it to the business strategy Recognize and emphasize the cultural context and systems that are part of it Next Up Still, there are tools and techniques whose full potential is unrealized. Emerging practices that can

PART II: CASE STUDIES Stories of How Flexible Cultures Are Created There is no doubt that flexible work is now part of the organizational DNA at all 100 Best Companies. But how did it get to be that way? How do they make it work? We asked seven companies to describe their experience, so others can benefit from it. We asked:

What were the biggest challenges you faced? What were the most significant practical issues and how did you resolve them? What did you learn along the way that can help others? How do they know if they were successful? With the benefit of the long view, how have your perspectives changed? These stories allow us to look behind the scenes of highly evolved companies practices at the culWe invited these companies to tell their stories in tural underpinnings that make it all work. Even their own words. Just as each company is unique, though each company is unique, their stories reso is each ones approach to the challenge of creat- veal common threads about what it takes to build ing a flexible culture. a culture of flexibility: Procter & Gambles story is about how Success Tips a global region spanning Central Europe, 1. Align with internal partners. Join forces the Middle East and Africa created a comwith other internal functions that benefit mon guideline for flexible work and leverfrom remote/flexible work (e.g. facilities aged a new web-based communications planning, IT). These partnerships can be platform to accelerate flex across the a powerful catalyst for boosting the flexcompany. ibility agenda. Ernst & Young, which now holds flexibili2. Leverage technology. Use technology in ty as a core operating principle, offers sage new ways to facilitate flexible work, to advice: Start with flex for everyone; pay communicate flexibility policies and emattention to the tone from the middle; ployment opportunities, to equip internal give guidance to managers; and communistakeholders (recruiters, talent managers, cate, communicate, communicate. etc.) to integrate flexibly into their role, Ciscos story highlights how it uses its and to build employees and managers own sophisticated technology products skills at working and managing flexibly. to support its highly flexible workforce 3. Experiment to make it your own. Evolve tools that are the very expression of how your own unique brand of flexibility over technology intersects with virtual and time, adding new approaches based on flexible work. your core business, culture, and language. IBM recounts a path sparked by a series of Be bold. You may even devise a new prodtipping points, peppered throughout with uct or service that others will buy. data, and the involvement of other inter4. Measure the connections. Think datanal partners (e.g. facilities) leading to driven. Establish a foundation of meateams that increasingly collaborate seamsurement systems and data to show flexi-

lessly across offices, countries and continents. American Express flex evolution was informed by a statistical technique familiar to market researchers that identified obstacles to the proliferation of flexible work. Citi has both HR-driven and real-estatedriven flex efforts and an online portal that delivers information on flexible work. One in five employees works on a flex schedule. Deloitte has offered 69 different kinds of flexibility and 9 in 10 employees work flexibly. Deloitte took customized work patterns to a new level by creating a flexible career model with options to dial careers up or down or to move laterally.

bilitys connection to established goals (to customer satisfaction, facilities savings, employee engagement, corporate awards, etc.). Continue to measure flexibilitys contribution and adjust accordingly. 5. Communicate. Communicate. Communicate. Use every device at your disposal, including new ones like social networking, to get the message out and to keep it fresh. At these 100 Best Companies, their change efforts have transformed large, complex businesses in significant ways over a relatively short period of time. The vision, skill, and tenacity with which they have been executed and the demonstrable positive results (for people and the business) have resulted in entrenched and irreversible changes. While there is perhaps more to be done, that is an accomplishment worth celebrating.

Procter & Gamble For nearly 172 years, P&G has been providing trusted brands that make every day a little better for the worlds consumers. P&G has the largest lineup of leading brands in its industry, with 23 brands with more than $1 billion in annual sales, and another 20 brands generating about $500 million or more in annual sales. P&G serves about four billion people in the world today. P&G people work to make sure the companys brands live up to their promise to make everyday just a little bit better, now and for generations to come. P&G people are the companys most important asset and source of competitive advantage. Our success depends entirely on the strength of our talent pipeline, which we build from within and manage with a disciplined process led by the CEO and the senior leadership team. This is an essential element of how P&G is designed to lead.

articulated as discrete objectives. Yet ultimately, the recognition of simplification, energy and flexibility as highly interconnected attributes of our culture will create the greatest opportunity. The impact of each is unique to the individual, determined by a combination of work, personal and cultural factors, among others. The drivers analysis provides a road map for workforce initiatives, illustrating the value of each factor while making it clear that all are necessary. Expanding Flexibility Across the Globe

Our case study highlights how Procter & Gamble translated data on flexibility into action in a large and complex international region in order to develop, articulate, and expand flexibility throughout the region. The journey has been complex and challenging given the variation in countries within the Central and Eastern Europe, Middle East and Africa Region (CEEMEA) region. The business case comes from the depth and strength of the internal survey data. But the sustainability of flexibility lies in how we tie flex to energy and Building Global Flexibility: Central and Eastern simplicity, along with other more typical issues Europe, Middle East and Africa Region such as retention and generational needs. I have sufficient flexibility to manage my work and personal life. Over the last two years this statement, measured annually on Procter & Gambles employee survey, has fueled concentrated activity across the globe. The goal is creating a true culture of flexibility. Regional Background Procter & Gambles CEEMEA Region represents 16,000 employees in more than 20 countries.

Guiding Principles and Lessons Learned In the course of the effort, we followed certain guiding principles and made some discoveries Flexibility is not a stand-alone objective, how- along the way. ever. It has been identified as one of three drivers of Work-Life Effectiveness at Procter & Gamble, The strategy is regional the action is local. along with energy and work demands. Our internal research over the last 5 years consistently vali- While the company has st arategic, global HR obdates the ability of these three areas to promote jectives, like many companies, Procter & Gamble Personal Well-Being, one of three drivers of per- drives action locally. Each of our global regions sonal business performance. The research is con- has an HR leader responsible for driving flexibilisistent across the globe - simplification, increased ty by collaborating with regional business leaders energy and flexibility will improve employees and local HR business partners. perception of their own work-life effectiveness and thus have a valuable impact on performance Weve gained good insights over the past several and the ability of the company to remain an emyears as to what drives productive, happy and satployer of choice. isfied employees. For example, we know that flexAs a practical matter, the strategies for each of the ibility leads to significant advantages across key three drivers of work-life effectiveness must be aspects of an employees experience which, in turn,

influence our ability to be an Employer of Choice in Availability. This was the critical first stage in the CEEMEA region. Jamal Berradia, P&G HR which the outcome was a set of regional guidelines agreed to by all countries in the CEEMEA region. Leader, CEEMEA We categorized arrangements, identified com The challenge is complexity and scope - the monalities, determined standard definitions and solution is clear, energetic central project established a minimum floor of policies that all countries should have in place. During this phase ownership and management. we also posted this information on our compreThe biggest challenge the CEEMEA regional lead- hensive flexibility intranet that contains compaers faced in moving flexibility forward in the re- ny-wide policies and other tools and resources on gion was inertia. A great deal of centralized initial flexibility for HR, managers and employees. planning and strategy work was necessary to get the countries over the inertia barrier. Hands-on Awareness: Communication strategies were leadership by the Diversity Practice leader for owned by each local entity starting with engaging P&G CEEMEA was required to do much of initial senior managers in setting the stage and providwork for the countries (e.g. taking inventory of ing leadership direction. Individual campaigns policies and practices, collecting and/or identify- were designed to increase awareness followed. ing policy definitions, and recommending a mini- The region leveraged two P&G global work-life tools at that showcased region-specific content mum floor for guidelines). and success stores. In Phases l and ll, the regional While time consuming on the front end, this leader for flexibility focused on driving the ownproved to be a significant facilitator and allowed ership and implementation of flexibility through the regional leader to simply present to the team HR. Finally, a considerable amount of guidance and get their buy-in. Mapping out strategy se- was provided to encourage the most important quence and next steps for them was helpful along factor of all manager and employee dialogue. with some friendly reminders along the way from the Diversity Practice Leader to keep the ball roll- Utilization: Across P&G, we are determining the most important objectives and the most efing. fective strategies for tracking and understanding Once the countries were coached and encouraged utilization of flexibility. What information do we through this process, the work fell into place much need and why? Which FWAs are being used the like a domino effect and the remaining steps came most? The least? Why? Are there any barriers to using one type of FWA vs. the other? What are the along more easily. demographics of people using FWAs? How do we Resolve the significant issues through smart leverage the value and minimize the challenges in managing flexibility? And above all, what imchoices and a good strategic framework. pact does flexibility truly have on key cultural and The most significant practical issue the region business factors that are important to our busifaced was in making the most effective and mean- ness and employees? We will be making it much ingful choices on the scope of the regional effort. easier for our functions and business units to unThere are many types of flexible work arrange- derstand and address these factors through our ments across the region, as well as leaves of ab- annual employee survey analysis. sence. Once a definition was attached to each one, we were better able to differentiate between the Supportive Culture: We expect flexibility and various types of arrangements and subsequently the availability, awareness, utilization and behavto decide on a short-list or minimum floor ap- iors around flexibility to be fully integrated into proach to use across the region. We kept the team each business units corporate culture. The critifocused through a four-phase strategy to manage cal work ahead involves ensuring that employees the work and ensure that we establish a sustain- are not discouraged from using FWAs out of fear that it may negatively impact their career, perforable approach. Briefly, the four phases are:

mance ratings, etc. The immediate manager has the pivotal role to play in creating this supportive culture. Tools and coaching through HR will be put in place; performance management systems and our Work-Life tools will be leveraged in order to create an environment that is dynamic and confident about flexibility.

in our 2009 results for our CEEMEA region. Our favorable responses increased by 12 points versus from 2008 results where +2 points is considered statistically significant.

The results were based on 6 months of invested effort (3 months for Phase I + 3 months for Phase II). We believe we can expect an even greater inWork life balance is not measured in hours - work life crease in the 2010 Survey when we have had a full balance in harmony simply means that you are fully year of activity on driving flexibility throughout engaged and happy at work and fully engaged and CEEMEA. happy at home. There is no one-size fits all solution for everyone, but there are some clear drivers that influ- 2,500+ employees (57% of survey respondents) ence the overall feeling creating a supportive culture report using some form of FWA. This includes being one of them. Stassi Anastassov, VP Paper, P&G (in order of highest use): Flexible Hours (flexible CEEMEA start and start time), Work from Home (occasional use or set schedule), Personal Leave of Absence, Flexibility is contagious! Less Than Full Time. Even in a region of widely varied countries and practices, flexibility resonates. A compelling business case (e.g. linking flexibility to productivity, retention and employer of choice aspects), clarification of policies and intent, plus a handful of very good success stories pave the road to success. Its all about building momentum from the grassroots up. Flexibility communications generated from a senior leader was an important show of senior leadership support and served as a nice push as well to both the diversity practice leaders and HR to pursue their own leadership in this work. Employees participating in one of these arrangements report higher work-life effectiveness scores (personal well-being and work simplification) as well as Employer of Choice survey scores. Build a Solid Infrastructure and make it easy to accelerate flexibility.

This global opportunity was sparked by a powerful new online infrastructure we rolled out in 2007 our flexible work web platform. P&G has supported flexible work policies for many years, but like other companies, we recognized that to truly legitimize and leverage the business value of flexible work, a much more proactive approach Power Lies in Measurement. was required. Our web-based Flex Management System has been a powerful way to accomplish Our ultimate measurement is having happier, that goal. healthier, more productive employees. P&Gs annual Employer of Choice survey measures flex- The Flex Management System uniquely and effecibility in both qualitative and quantitative ways. tively equips stakeholders line managers, emWe use survey results in our education to employ- ployees and HR - to apply flexibility specifically to ees so that they not only know whats available to their role. It educates each stakeholder about the them, but also the broader implications of flex- importance, implications and execution of flexibility and work-life effectiveness. Flexibility is ibility. linked to our some of our key business drivers in the survey such as intent to leave, giving best per- It helps: formance, and others. Employees choose the flex option that fits their The survey question is: I have sufficient flexibil- unique circumstances, negotiate for it, and then ity to effectively manage my work and personal work effectively flexibly. life. We have seen clear success with our work

A manager handle requests and teaches them how to manage flexible teams. HR and business leaders from multiple perspectives realize the value of flexibility, integrate their efforts and incorporate the relevance of flexibility into their messaging, whether talent and leadership development managers, employee relations and risk managers, or legal counsel. The Flex Management System is our central location for all P&G-specific flex information, housing P&G flex work policies, forms, philosophy, toolkits, success stories, etc. Each region has its own section; CEEMEA region policies are posted, along with other regions policies and practices. It will enable online dialogues within a global region or across the company, so that teams can share successes with other teams or units. We expect that the ability to share challenges and lessons learned will continue the expansion of flexibility within P&G -- answering practical questions and changing mindsets that flexibility is the new normal way of working and managing. The Flex Management System was built for us and is maintained by recognized flexibility thought leaders -- FlexPaths, and it also contains all of the latest expert-written tools, research and information. It minimizes our time and effort required to source this material from outside flexibility researchers and practitioners -- keeping everyone in our company up to date. We believe this web-based system is vital for moving flexibility from a role of accommodation to a recognized business tool across the company. Dont wait to start the journey.

encourages long-term careers, so we need to create sustainable systems that support employees throughout their tenure with the company. For flexibility, the journey will continue to: Partner with organization leaders to make sure the flexibility policies and tools are broadly deployed across their organizations (Availability). Set expectations with line leaders and managers regarding their role and participation in the communication campaign (Awareness). Build on this with greater education with employees so they not only know whats available to them, but also how to utilize them (Utilization). Internalize and role model behaviors that address the flexibility needs of our employees and inspire and instill these new attitudes in leaders and in managers (Culture). There is no magic bullet solution to work-life effectiveness for everyone. We believe that this combination of local policies and regional guidelines, tools, resources and communications will help significantly improve flexibility in our organizations. By creating a more holistic perception of flexibility through integration with simplification and heath and wellness efforts, we expect to more profoundly support our employees sense of work-life effectiveness. By the end of the fiscal year, P&Gs CEEMEA region expects to see a positive, measurable impact on the corporate culture through the strategy of availability, awareness, utilization and supportive cultural behaviors around flexibility.

According to Hanan Heikal, Diversity Practice leader for P&Gs CEEMEA region, There is no better time than today to get started on creating Flexibility. The longer an organization waits, the harder it will become to implement, because this is a journey; a cultural change that takes time, particularly because it is impacted by so many other organizational and internal cultural issues. P&G is a company that builds from within and

Ernst & Young How we see it Ernst & Young can proudly point to more than a decade of commitment to workplace flexibility. What started as a retention strategy for experienced female professionals has evolved into a core operating principle that touches all of our people. Flexibility at its root is respect for the needs and values of others. It is an important theme in our organizations global commitment to inclusiveness. We see inclusiveness as harnessing the incredible range of experiences and perspectives our people have to bring value to our people and our clients. Diversity of thought may come from differences in gender, ethnicity or generations. It might come from sexual orientation, abilities or attributes like being the first generation of a family to complete college. Our global leadership has designated the goal of building a truly inclusive culture as a transformational priority. But here we stand, just steps short of the economic abyss that would have plunged our global economy into a depression. Indicators suggest, but dont promise, that the worst may be behind us. Even if we are on the road to economic recovery, the healing process will likely continue to inflict pain through high unemployment rates, lower consumer spending and a continued focus on cost cutting by businesses.

ical moment. At least thats how we see it. On myths and realities Our experience tells us you simply cant get to an inclusive culture without flexibility. Everyone needs flexibility to succeed personally and professionally. Organizations that still stand on the sidelines or question the value of workplace flexibility may be operating under some common misperceptions. Here are five myths, and our realities. Myth #1. Flexibility only matters to working mothers.

The desire to work flexibly to run out for a doctors appointment or cut out early to coach a little league game is blind to gender and parental status. We find that all of our people appreciate, and take, the opportunity to work flexibly. It happens every day and in all time zones at Ernst & Young. Our people also understand that it works both ways. For example, East Coast team members may need to hold a global call at 6:00 a.m. Most are willing and ready to schedule that call. They know that working flexibly is a two-way street.

Whats impressive about Ernst & Young is not how you get treated when things are going well but how you are treated when you go through a tough personal time. You cannot find a more accommodating leaderWhere can organizations find room amid this eco- ship group. -Scott H., Cleveland nomic uncertainty to remain committed to flexibility and inclusiveness? At Ernst & Young, we Formal Flexible Work Arrangements (FWAs) have found room right in the center of the storm. come in when a person has a regular need for flexWeve already committed tremendous time, ef- ibility. While they dont favor a particular career fort and resources to flexibility and inclusiveness. track or job level at Ernst & Young, we do see more The economic downturn motivated us to raise FWAs at certain levels. For example, more than a our game even higher. Our efforts to date have po- quarter of women senior managers (the pipesitioned us to leverage what weve created, in or- line to partner or principal) are on formal FWAs. der to emerge from the downturn better than be- Overall, 15% of our people on FWAs are men. Most fore. Its indisputable that diverse teams produce say they use the arrangements to assist in their better results. We believe our diversity of thought parenting roles. Other reasons include schooling, will help us rise out of the old economy and lead in travel, illness, elder care and community involvethe new one. ment. Organizations that turn away from flexibility and A newly minted partner, San Franciscos Susan inclusiveness at this critical moment do so at the Saltgaver, established her FWA years ago so she expense of being well-positioned for the next crit- could devote time to community service. Among

her efforts, Susan has helped provide medical exams to children in Vietnam, build houses in Romania and raise scholarship funds for impoverished girls in Southeast Asia. Susan and more than 150 of her colleagues have proven that the sky is the limit here while working on a reduced schedule, regardless of the reason.

mitted to their careers. In un-flexible cultures, employers and employees alike may hold to the notion that its simply not possible for people on FWAs to advance their careers. Our people havent found FWAs to be a hindrance. And we get the benefit of retaining experienced professionals who might otherwise leave us or the workforce entirely.

Myth #2. If your people are out of sight, they I have progressed from a manager to a senior manarent producing. ager on a reduced schedule and feel that my career is in Our experience has been the exact opposite. We my hands, with the full resources of the firm available find our people have more energy and enthusiasm to me. Sheva L., Cleveland for getting work done in our flexible culture. Our increasingly global economy has brought with Over the years, weve seen a marked increase in it virtual teams that connect across time zones those who achieve executive positions while on and date lines. So, even without a flexible culture, FWAs. This year alone, we promoted 13 people on many of our teams work together without ever FWAs to partner, principal, executive director or meeting in person. Being out of sight is simply director. Overall, we have promoted more than 160 people on FWAs to these senior levels. Our a non-issue. flexible culture has helped boost our retention rate of women at all levels. It is now equivalent to Myth #3. Adopting flexibility is costly. our retention rate of men. It literally costs nothing for people to manage their schedules in order to work flexibly. And the Myth #5. Its impossible to manage teams when team members need flexibility. payback is considerable: satisfied people, eager to do more than their share to support the organizaAt Ernst & Young, we use a team structure to tion. Cost enters the equation when organizations put serve our clients. Because of this, effective teamin place the infrastructure to support flexibility. ing is a critical success factor in all we do. If allowTechnology is the main component of that cost, ing teams to work flexibly hindered our ability to but its really a leverage of the current cost of do- serve our clients, it simply couldnt exist in our ing business. For example, all of our people have organization. But flexibility does exist and it allaptops and 24/7 access to tech support, and this lows our people and our teams to thrive. And it increases their mobility. We also provide a month- provides our clients with engaged and motivated ly dollar allowance to cover costs associated with professionals. BlackBerry, mobile broadband or cell phone services. Our people choose the technology that best Teaming is so important that we developed a supports their circumstances, within a budget we process for teams to explore whats important to them. Team Acceleration encourages teams to set. Ernst and Young provides all the tools necessary for examine how they work together. Team members new employees to meet their full potential. Our culture complete a survey to assess the teams perforprovides a comfortable environment to grow and de- mance in nine areas. Facilitators use a summary of the surveys to launch a conversation about team velop as a professional.Christopher C., Atlanta strengths and challenges. The team then creates an action plan to help move them toward greater cohesion and efficiency. Myth #4. Reduced schedules shrink the pool of rising employees who may achieve executive roles because they are less com-

Lessons from the school of hard knocks Its been more than a decade since we began our journey toward flexibility and inclusiveness. The first steps out of the starting gate were slow, and some were painful. But weve learned from the bumps and bruises, and have the following insights to share: Start with flexibility for everyone first. Ten plus years ago, we launched our formal FWA program across the firm. (We had been experimenting in local offices for more than 25 years.) Our focus was on retaining mid-career women. We struggled (putting it mildly) to build understanding and trust in the program. It took a while before our people stopped being dubious, fearing that an FWA would harm their careers. It also took a while for some of our partners across the country to understand the true value of FWAs to our business.

line, they wont incur out of pocket childcare costs for putting in the extra hours. To add flexibility to vacation and holiday leave, we now provide an Additional Days Off program. Through it, our people can buy up to 10 days off in addition to the paid vacation, holidays and personal days Ernst & Young already provides. To support FWAs, we now offer full-time benefits to anyone who works at least 20 hours a week.

The tone from the middle is as important as the tone from the top.

Weve long recognized and embraced the importance of the tone from the top with respect to flexibility and inclusiveness. We came to realize, though, that this wasnt enough without the same tone from the middle. Weve put a lot of effort into building middle tier support, confidence and If we had it to do over again, we would start by visible leadership for flexibility and inclusiveness. establishing an overall culture of flexibility for When the tone from the middle is inconsistent everyone. Our global offices and many clients are with the tone from the top, then the experiences in the early phases of their inclusiveness journey. your people have are inconsistent. Theyve asked for our advice, and we counsel them to start by giving all of their people the opportu- Tips on making it all work nity to work flexibly to manage life demands. The Communicate, communicate, communicate. time to introduce formal FWAs is concurrently, For flexibility to work, people need to keep one or once theyve established a flexible culture. We another informed. In addition to sharing inforbelieve that trust and support for FWAs can hap- mation at the individual and team levels, your orpen a lot faster if everyone has the opportunity to ganization can help build awareness and support work flexibly. for flexibility by communicating across the organization. Make sure benefits programs support flexibility. Over the years, we came to recognize ways in We find its useful to have forums for successfully which some of our benefits didnt align with our flexing teams and individuals to share informastated commitment to flexibility. Here are some tion and lessons learned. For example, weve hostexamples of how weve sought to address the ed panel discussions, where senior managers and gaps: partners on reduced schedule FWAs talk about getting promoted, challenges theyve encoun Ernst & Young offers a backup child and adult tered and best practices on how theyve managed care program. When a regular provider isnt their careers. available, our people can schedule in-home or center-based care through the program. But Make it a point to educate your managers about what happens when a need is immediate and making flexibility work for their teams. One way theres no time to schedule care? We now offer we do this is through a series of educational broa $400 annual subsidy for babysitting to cover chures. Topics include the types of flexibility, it. So when our people find they need to work managing FWAs and using technology to work late or on a weekend to meet a clients dead- flexibly. Weve included samples from the bro-

chure series in this summary. Your technology investment doesnt have to come all at once. Ernst & Young continues to make a substantial investment in technology that supports flexibility. Its what makes sense for us. Dont be daunted by it. Your organization may be able to make a much smaller investment and still meet your needs and goals. Start with making sure your people at a minimum have ready and secure access to your network from places other than the office. Provide managers with resources and guidance on managing virtual teams. Virtual teams are fast becoming the rule rather than the exception here. In addition to the standard office tools and other technologies, we provide our team leaders with guidance to help them manage virtual teams most effectively. (Our Americas Inclusiveness Officer, Billie Williamson, penned an interesting article on managing at a distance for BusinessWeek.) Here are some tips for effectively managing virtual teams: Let your teams know what you expect of them. And create opportunities to discuss everyones flexibility needs. Define when face-to-face interaction adds value and how you will handle virtual supervision. Discuss protocols for communication as well as for scheduling meetings and handling unexpected client requests. Encourage members to explore questions that matter, including questions about how they are working together. From those who flex, to those who flex. Weve rounded up some tips from our people on how they make flexibility work for themselves, their teams and their clients: Build trust by meeting the performance commitments youve made to yourself, your clients, your leaders and your colleagues.

Understand that peoples needs for flexibility may be different from your own. Model behavior that supports a life outside of work. Be transparent about your own flexibility. Develop and use a team calendar. Post deadlines along with staff needs for flexibility. Treat yourself like a client schedule personal time the way you would a client meeting.

In the end The Wall Street Journal quoted our Global Chairman and CEO, Jim Turley, earlier this year. He said, True success will occur when organizations understand that the best strategy is one reached after including a broad variety of views and perspectives from men and women, young and old, those who have wildly different interests, academic backgrounds or speak different languages. You simply cant get to this outcome without flexibility. At least thats how we see it.

Cisco Introduction Ciscos vision is to change the way we work, live, play, and learn. At the heart of that vision is a culture where employees work in an environment that integrates all aspects of life and provides flexibility supported by technology. Being a flexible workplace is continuously evolving along with our technology to meet the needs of employees. An Informal Culture of Empowerment and Trust Flexibility, trust, and empowerment are the hallmarks of the employee-employer relationship at Cisco. Ciscos culture is based on a foundation of trust through all levelstrust of company leaders in managers and trust of managers in employees. In addition, Ciscos culture has historically been very informal, instilling decision making at the management level, as opposed to building strict policies. As the company grew, employees worked toward stretch goals with drive and innovation.

tion between flexibility and productivity, low attrition, and a workforce equipped to meet the demands of a 24-hour global business environment. Our culture, values, rewards and recognition programs, benefits, and facilities further supplement work/life integration at Cisco. Ensuring a culture of sustainable high performance is critical to Ciscos success, and managers are encouraged to ensure that employees can successfully integrate work and life. As almost all employees work flexible hours or telecommute, there is no stigma attached to using these benefits to fulfill parenting and other responsibilitiesit is simply part of how Cisco works. Our Chief Technology Officer, Padmasree Warrior, says it best: We no longer go to work. We simply do work, wherever we may be.

Understanding the Employee Experience While the culture of trust and empowerment helped evolve many of our flexibility options, the informal nature creates challenges to providing a level of consistency in the employee experience. In an effort to understand employee values and gain employee feedback, Cisco reaches out for In order to maintain the productivity of employ- employee input in many ways. Each year, Cisco ees, flexible work schedules and telecommuting surveys employees through its annual Pulse surbecame common in our culture. Cisco supported vey, which measures employee engagement and employees with company-provided laptops with assesses employees experience at Cisco. remote VPN capability to maintain productivity wherever an employee chose to work. Because of In addition, during fiscal year 2009, Cisco crethe informal culture, employees were enabled to ated an Employee Engagement team to help untry a variety of work practices to see what would derstand and improve our employees experience work best for individuals, roles, teams and func- at the company. Key focus areas for this team tions. Cisco rapidly became a culture focused on are improving the work experience, accelerating results, not time spent in the office. career development, improving our managers skill sets, and enhancing inclusion and diversity. Now, with even more technology solutions avail- To understand employees experience and what able, Cisco makes it possible for employees to drives engagement, this team conducted 65 global easily work from home, access real-time business focus groups focused on the six pillars of Eminformation, and collaborate with colleagues and ployee Engagement: The Culture, The Company, customers at any time and in any place. Combined The People, The Opportunity, The Rewards, and with flexible work schedules and a deep culture of The Environment. Reports of the Employment trust and empowerment, technology gives em- Engagement teams efforts go directly to Brian ployees more control over their work and person- Schipper, SVP, Human Resources, and help form al lives. For parents, it provides the opportunity HR policies for all employees. to fully realize a challenging career and a fulfilling The results of these focus groups indicate that the home life. For the children of aging parents, it of- top three things employees care about are flexibilfers the ability to care for their parents and fulfil ity, empowerment, and collaboration. Other factheir career goals. Cisco sees a positive correla- tors that are important are colleagues and lead-

ers, the rewards Cisco offers, and opportunities to grow and develop. Through this work, employees also indicated a particularly high level of satisfaction with the company, our culture, and the meaningfulness of the work they perform at Cisco. Providing Structure to our Flexible Work Practices These cultural values are not surprising, as Cisco has invested substantial time and energy in building groundbreaking technologies that are changing when, how, and where employees work. Taking the results from the Pulse survey and focus groups, the Employee Engagement group conducted flexibility pilot programs with three teams from the U.S., UK, and Spain. The pilot programs included offering a variety of more formalized flexible work arrangements such as remote work, part-time telecommuting, and part-time work. Now that the pilots are complete, Cisco is utilizing the lessons learned to document and formalize flexible workforce practices that have been largely informal until now. The effort is centered on supporting and maintaining our informal culture, while providing more clarity, transparency, and streamlined processes into our telecommuting, remote work, and part-time policies. As part of the the Flexible Work Practices, Cisco employees will also have the opportunity to participate in an On/Off Ramp program to pause their work at Cisco for 1-2 years. This offering helps avoid employee burnout, assist those who want to stay home with family, assist those who may be considering retirement, and allow time for employees who want to focus on completing a degree full-time.

rected communications, long-term support and manager training to educate and help managers make good decisions. Some roles, such as those in our Technical Assistance Center (TAC) for customers, and our Customer Briefing Centers, may not be able to be performed remotely. However, most managers are willing to allow employees to work remote, part-time, or telecommute knowing that Ciscos flexible workers are likely to have higher performance ratings, report greater productivity out of the office, have a smaller carbon footprint, be less expensive for the team, be more engaged and be less likely to leave. Providing the Technology to Support Flexibility To truly change the way we work, live, play and learn, Cisco believes in the value of investing in the tools and technology that create flexibility and enable collaboration for our entire workforce. By using our own communications technology, Cisco has become a recognized leader for how technology can be the foundation of a work environment that increases innovation through collaboration, improves productivity, and helps employees balance work, family, and other personal responsibilities.

In October 2008, Cisco conducted a Teleworker Survey, an in-depth study of almost 2,000 company employees to evaluate the social, economic and environmental impacts associated with telecommuting at Cisco. The study revealed that a majority of respondents experienced a significant increase in work-life flexibility, productivity, and overall satisfaction because of their ability to work in a variety of locations, including their homes. As the modern workforce continues to Our aim in the effort to build more structure evolve and globalize, a telecommuting strategy around our flexible work practices is to provide will help save costs, lower carbon emissions, and increased transparency and better understand- retain top talent. ing through communication. As with any change, there is always some apprehension within the Cisco is achieving new levels of efficiency and efmanagement ranks. True to our culture, manag- fectiveness by enabling people to work together ers still have decision-making ability for their em- no matter where they are located. In fact, our ployees practices. As the flexible work practices Internet Business Solutions Group showed that are offered, some managers have concerns about Cisco has generated an estimated annual savings employee performance/productivity, job com- of $277 million in productivity by allowing empatibility, employee readiness, employee acces- ployees to telecommute and telework. Currently, sibility and impact to customers & teams. These the average Cisco employee telecommutes two concerns are addressed and alleviated through di- days per week, with 60 percent of the time saved

by telecommuting spent working and 40 percent spent as personal time. Of the almost 2,000 employees surveyed approximately 69 percent cited higher productivity when working remote, 75 percent said the timeliness of their work improved, and 67 percent said their overall work quality improved when telecommuting.

employee subscribers in more than 70 countries.

Utilizing technology solutions, flexibility through telecommuting can also lead to higher employee retention, as more than 91 percent of respondents say telecommuting is somewhat or very important to their overall satisfaction. An improved quality of life through telecommuting was cited Supported by the steady adoption of enterprise- by 80 percent of survey respondents. class remote connectivity solutions like Cisco Virtual Office, the recently announced Cisco Offi- Carina Reyes, manager, Operations, at Cisco said, ceExtend, employees are able to communicate and As a working mother of three children, I know collaborate virtually at unprecedented levels. In a firsthand the benefits of Cisco Virtual Office. globally-dispersed employee base, with approxi- Through high-quality voice and video, I remain mately 40 percent of Cisco employees located in engaged and able to lead global teams and proa different city as their manager, this capability is grams with ease and avoid back and forth trips to critical. Cisco employees spend about 63 percent the office. The seamless transition from work to of their time communicating and collaborating. the home has given me the flexibility to choose By telecommuting, 83 percent of employees said the schedule that best fits my work and my home. their ability to communicate and collaborate with Juggling early-morning Europe calls, midday docco-workers was the same as, if not better than, it tors appointments and evening Asia meetings, was when working on-site. I move with ease from one place to another. My family and I feel fortunate that I work for one of As Rami Mazid, vice president, Global Client Ser- the best companies today that enables true workvices and Operations, Cisco said, In the age of a life navigation. global market, time and distance separates people and workspaces. Cisco has long recognized that Telecommuting and remote working also help telecommuting and collaborative technologies the company in its environmental efforts. The are effective in breaking down separation barri- average distance for round-trip commutes varers and enabling the transition to the borderless ied among global regions: employees in U.S. and enterprise. In addition, as demonstrated by our Canada reported on average a 30-mile round-trip recent study, a properly executed program for commute; Asia Pacific employees cited a distance telecommuting can be extremely effective at un- of about 14 miles; Japanese employees cited a 26locking employee potential by increasing work- mile commute; employees in emerging markets life balance, productivity and overall satisfac- commute an average of 16 miles; and European tion. employees reported a 46-mile commute. In 2008, Cisco telecommuters prevented approximately Virtual office solutions from Cisco boost flexibil- 47,320 metric tons of greenhouse gas emissions ity and productivity and extend the enterprise by from being released into the environment due delivering secure, rich, and manageable network to avoided travel. Employees also reported a fuel services to teleworkers and employees working cost savings of $10.3 million per year due to teleoutside the traditional office environment. The commuting. Cisco Virtual Office solution provides IP phone, wireless, data, and video services, ensuring a Collaboration in a Flexible Work Environment smooth, office-caliber experience to employees, For the first time, four generations are coexistwherever they may be located. In addition, it ing in the workplace with very different needs provides Cisco with improved security, reduced and priorities. To meet customer expectations, costs, and a means for workforce continuity dur- Cisco employees are encouraged to collaborate ing natural disasters or pandemics. As of June in new and unprecedented ways to drive speed, 2009, there were over 16,000 Cisco Virtual Office scale, and alignment. True collaboration extends

beyond structure, boundaries, and roles and focuses on what is possible through open sharing of resources. Collaboration flattens hierarchies and does away with traditional roles and relationships in favor of capitalizing upon diversity and leveraging different perspectives.

To encourage and enable collaboration among employees, Cisco Workplace Resources and Cisco IT joined forces to design a flexible work environment that would make employee collaboration and communication easier and heighten productivity both on-site and remotely. Many floors of our San Jose campus buildings have or are moving toward the Connected Workplace environment. Instead of assigned cubicles, the Cisco Connected Workplace features an open, flexible layout, functional furniture, and a variety of workstations. With comfortable couches and chairs, televisions, kitchens with cappuccino makers, and enclosed meeting spaces accommodating individuals as well as big groups, the space encourages camaraderie and collaboration. The spaces are set up with quiet zones and meeting areas completely enabled by Cisco products and technologies, including IP telephony, Cisco Unified IP Phone Extension Mobility, Cisco IP Communicator, and wireless LAN mobility. The new design not only Communication Helps Maintain Alignment improved employee satisfaction, but also reduced Cisco has a culture of open communication where real estate and equipment costs. leaders share company strategy and direction with employees. Both positive and challenging inWorking collaboratively toward shared goals re- formation is shared transparently and in a timely quires that employees communicate and collabo- fashion. rate seamlessly in a virtual environment as well. Cisco WebEx is a solution that makes it easy to Cisco is using collaboration technologies to deshare ideas with anyone, anywhere. It combines liver candid messages in an impactful, personal, real-time desktop sharing with phone conferenc- and timely way, while providing employees with ing, allowing everyone to get on the same page greater flexibility. Executive videos help to get easily without the need to travel. In addition, We- key messages out quickly, which leads better unbEx Connect offers collaborative workspaces, derstanding for the employees, and faster adopdesktop sharing, file sharing, instant messaging, tion of business change. Through the use of Cisco and voice and video calls between PCs. Brought technology such as Cisco Unified Video Advantogether with Cisco Unified Video Advantage tage (CUVA), and the Pure Digital Technologies (CUVA) video cameras, teams of all sizes and lo- Flip video camera, executives record video mescations can meet virtually, and work on projects sages from desktop cameras. The videos are then in real-time. either featured on our Intranet site Cisco Employee Connection, emailed to specific audiences For a more personalized virtual experience, Cisco or posted to C-Vision, a content-sharing applicaTelePresence is a sophisticated technology that tion for videos, photos, and audio messages.

delivers a high-quality collaborative experience without the need for travel. Cisco TelePresence uses the power of a global IP network and unified communications to enable collaboration between users as never before, with video and audio technology allowing users to communicate as naturally as they would in person. Every expression, gesture, and nuance is clearly visible across town or across time zones. This in-room experience reduces the need for travel for many executives and teams, improving productivity and providing more flexibility in their schedules. In addition to reduced travel costs, Cisco TelePresence has increased employee interaction and knowledge sharing, faster decision-making, improved employee productivity, improved ability to interact with customers, and better business continuity. As of August 16, 2009, 596 production TelePresence rooms have been deployed in 165 major cities across 45 countries globally (with 355 in the United States and Canada). To date, 365,343 TelePresence meetings have been scheduled since TelePresence launched in September 2006, and 71,631 meetings avoided travel. It is estimated that $287 million in travel cost was saved based on estimates of four participants per meeting.

In addition to video messages, most executive presentations and meetings are videotaped giving remote viewers the ability to watch live via Cisco TV or log on to view it later whenever it is most convenient. All quarterly company and manager meetings, bi-monthly birthday chats, and functional all-hands meetings are done over Cisco TV.

new solutions.

Our commitment to inclusion and diversity makes Cisco a better company, a better global competitor, and a better corporate citizen. By fully embracing and supporting the needs of the human network in all its multiplicity, we foster innovation and talent in the workplace and engage More recently, executives and employees have more effectively with our customers and partners been embracing Web 2.0 and social networking in the worldwide marketplace. As Cisco changes technology to communicate. Several leaders at the way we work, live, play and learn, employees Cisco have blogs or video blogs on their functional and managers are defining the terms for how they Website and regularly post commentary on topics can be most productive, making the definitions of of special interest to them and their employees. flexibility as broad as the needs of our employees. Employees are encouraged to engage in discussions by contributing to these blogs or sending feedback. In addition, Cisco has an official external blogging site, The Platform at: http://blogs. cisco.com/news. Executives also distribute key messages via podcasts and broadcasts that can be accessed on employees laptops or transferred to iPods for listening anywhere. Employees and customers can sign up for an RSS feed for the latest BizWise TV Podcasts with updates from Cisco managers and executives. This flow of information, with the option to view or listen at the convenience of the employee, helps keep all employees informed and aligned whether they are remote workers, telecommuting or part-time. Flexible Work Practices Support our Inclusion and Diversity Efforts Working flexibly is consistent with our culture and supports our Inclusion & Diversity efforts, the changing demographics of our workforce and the personalization of Web 2.0 technology, in work and life. At Cisco, working collaboratively and offering flexibility helps to bring in the best talent from a global diverse marketplace. Cisco employees do not just come from different countries; we have different educational and technical backgrounds, genders, ages, ethnicities, orientations, abilities, and we have experienced different economies, political histories, and cultural sensibilities. What makes Cisco unique, however, is not just our diversity but the inclusive way we come together to innovate, collaborate, and find

IBM At IBM, we recognize that the global economy is a talent economy. Our programs are primarily designed to attract and retain the skills we need to meet our client demands. Much of our workforce models flexible work practices. Over 40% of our employees work away from the traditional office environment. 73% of our teams include remote workers. Given the realities of our global teams and differing time zones, the traditional workday no longer exists. IBMers will often find themselves on global team calls early and late in the day in order to collaborate with colleagues. New tools have been developed which help teams pin point ideal times to schedule calls, show where participants are located geographically and organizationally and avoid the pain points that often accompany these calls. Increasingly, the focus is on getting the work done the priority on meeting client needs while allowing employees to effectively meet the needs of their work and personal lives. Achieving this status quo has been a journey . . . the result of factors both internal and external, intentional and unexpected. The 1980s IBM has a long history of commitment to establishing an environment that allows employees to effectively manage their work and personal lives. This commitment goes back to the 1950s when leaves of absence programs were first introduced. However, it was the 1980s when perhaps the most important steps were taken: Flexible work schedules were first introduced initially allowing employees to vary their start/stop times by 30 minutes from the normal location work schedule. This was later expanded to a full hour and provided for a two-hour lunch break. Our menu of flexible work options as since grown to include the Compressed Work Week, Part Time Employment (including a Job Share feature), Mobile work and Work at Home. 55 IBM countries provide three or more of these options to their workforce.

IBMs flex work, work at home, and other related work policies are among the best I have every seen in the industry. Thank you for providing such programs. IBM pioneered dependent care for employees when it introduced the Child Care Resource & Referral program in the US. Today, we have the Global Work Life Fund a $50M multi-year commitment which aims to increase the supply and improve the quality of dependent care where our employees live and work. Resource and referral programs are now offered in 38 additional countries.

With the support IBM has given to child care initiatives and the quality of my childs care center, I have been able to significantly increase my quality of work/ home life. As a result, I have increased my productivity at work and have chosen to stay and work at IBM over other opportunities that have been offered me. The first of nine Work Life Issues Surveys was conducted in the US in 1986. This was followed by two additional surveys in the US (1991 and 1996) and three geographyspecific surveys in Latin America (1998), Europe (1998), and Asia Pacific (1999). IBM global surveys were conducted in 2001, 2004, and 2007. The 2007 results represent the viewpoints of approximately 24,000 IBM employees from 75 countries in 10 languages on 88 core questions and approximately 50 optional questions. For many questions, 21 years of trending information is available. In addition, participants wrote 52,000 comments in response to 10 writein opportunities. Our next Global Work Life Survey is planned for 2010.

Just an encouragement to make good use of the results, regardless of what they are. The survey seems to be asking meaningful questions that can be put to good use. These programs provide the underpinnings of our flexible work culture in that they express the companys commitment and provide employees with a concrete framework for beginning the discussion about flexible work with their managers. However, as many have learned, the programs

themselves are not enough. We at IBM have found they must be combined with visible support from managers and senior leaders to be viewed most positively and be used as the tools to more effective work and personal pursuits that they can be. One of the reasons people come to work for IBM is because we take workplace flexibility seriously. On any given day, worldwide, one third of our people are not at an IBM location - they are working onsite with customers, are telecommuting or are mobile. Today, we must reconsider our traditional concept of work and how it gets done... Samuel J. Palmisano, IBM Chairman of the Board and Chief Executive Officer The 1990s

family life, higher morale, greater loyalty, use what we sell Company: Substantial real estate savings, increased employee retention, enhanced productivity, lower absenteeism, increased revenue

Management and employee education were crucial is this time of change. Classroom as well as just-in-time learning modules and simulations were developed to provide a detailed understanding of the changing work environments and expectations of managers and employees. The 2000s

We soon recognized the need to be able to quantify and track employee work environments. The The next tipping point came in the 1990s when Work Place Indicator Codes were developed for we first experienced the need to reduce real estate global implementation: costs. Mobility centers were created providing Traditional Office shared workspace where dedicated space was not Traditional Non Office needed and tools which allowed these employees Client Location to work productively from hotels, airports, client Mobile locations, homes, as well as IBM locations. Clear Work at Home ly, those considering efforts of this type should involve their IT, Real Estate, Occupational Health, Managers are responsible for ensuring codes are as well as HR stakeholders. applied correctly. This information has proved invaluable in determining real estate and IT reThese changeswhile motivated by the need to quirements and even pandemic planning. It is reduce real estate costsachieved a number of used in our employee provisioning process to deother benefits: termine eligibility for connectivity tools. Real Estate: Mobility centers saved 2 million square feet , 7,500 workspaces, savings Many IBMers are experiencing a very fluid work and/or cost avoidance of approximately environment. In one region of the US, as few $100 million each year as 23% worked in IBM offices resulting in the Client: Increased customer satisfaction, awareness that the traditional walls of IBM no better accessibility to IBM team, more longer exist. The workforce is largely mobile, face time with IBMers, more productiv- dedicated to client locations, or work-at-home. ity at customer site, faster response to in- Teams are not longer co-located but rather quiries dispersed across multiple locations. This theme Environmental: Eases traffic congestion is echoed in Europe where employees are even on freeways, more efficient energy use, more accustomed to working with remote teams cleaner air (1990 federal clean air act) that cross country boundaries and in Latin Amer Employee: Productivity improvement, ica and Asia where, while most employees still remore face time with clients, improved port to the traditional office, it is recognized that customer satisfaction, more accessible the expectations for growth will bring dramatic and responsive, shorter commutes, work changes to the work environment. longer hours with less impact on personal/ Our leadership recognized this evolution of our

workplaces This combined with our matrixed or- The benefit of working primarily from home ganization which led many to feel they had mulenables employees to work an extra half day tiple masters and may have never met or are a week before it becomes difficult to manage unsure of who their boss is. Popular opinion, the demands of work and personal/family life. which once said IBM stood for Ive Been Moved The break point for work at home employees had evolved to Im By Myself. Understanding with schedule flexibility is 57 hours/week this evolution came as a wake up call, since as a compared to 38 hours/week for those without company, we had relied so much on the employeethis flexibility. manager relationship to deliver messages about company programs, policies and practices. It is the very same flexible work options that provide our employees with tools to meet the chalPartnering with IT, Real Estate, Well Being, Cor- lenges of the current economic environment porate Community Relations, etc., we began an whether it be the high cost (or even availability) effort tagged Making IBM Feel Small Again. We of gasoline or a spouse who is unemployed. spoke to nearly 1100 employees, in nine countries, 33 locations large and small. We focused discus- Our employees are also challenged by continued sions around The Four Cs (Client Capability, high levels of workload. In response, weve creCareer, Connections and Community) gathered ated a website with tips, tools, and best practices information about the types of information and to address a variety of symptoms of work overactivities that would combat the feelings of dislo- load. And a discussion guide aimed and reducing cation and isolation many were experiencing. In- unnecessary work at the team level is in developformational sessions combined with networking ment. opportunities are now held. Our IBM Club was reinvigorated to provide global opportunities to As we move to the future, we see The Global IBbring employees, retirees and their families to- Mer who works seamlessly as part of a global gether outside of work to participate in activities and culturally diverse team. The Country Navithat are social, cultural or recreational. Career gator is a web-based tool that provides valufairs and office renovations were among the other able insight on how to successfully interact with actions taken. Results showed employees were people from different cultures providing the more satisfied with IBM, their jobs, and their abil- deeper cross-cultural understanding needed to ity to balance work and personal life needs. move overseas, do business across borders or lead a global team. Employees are now using social networking tools such as instant messaging, Beehive, virtual Our recently announced Global Work Life Counworlds, online communities, etc. to connect with cil represents our global senior leadership team distant colleagues and overcome the isolation re- and will be the visible face of work life internally mote workers often report. as well as externally. They have been asked to develop priorities and initiatives to address work Outlook for the Future life issues going forward. While committed to flexibility, we must continue to assess whats right As a globally integrated enterprise, todays work for our business. This is a partnership between is 24/7/365. While the enterprise is always operat- the work/life staff and our line leaders. There will ing, we cannot have the same expectation for any continue to be, as there has been in the past, busione of our employees. Autonomy over where and ness conditions that require co-location, such as when our employees work provides them with a key projects, a unique client deliverable and/ or tool to meet the demanding schedules our global knowledge transfer. The key to flexibility is flexiteams face. A recent detailed analysis of our 2007 bility itself -- knowing when it makes sense for the Global Work Life Issues Survey by Brigham Young business and when it doesnt. We will continue to University found: look for ways for IBMers to collaborate seamlessly -- across offices, countries and continents and help our employees better integrate their work and personal lives.

American Express Founded in 1850, American Express is a leading global payments and travel company with a deep and rich history of service that drives everything we do. Our diverse and talented people bring a wealth of experiences and perspectives that strengthen our vision of becoming the worlds most respected service brand.

than the exception.

Over the past several years, we have created stronger cross-functional alliances between human resources, real estate and technologies to allow us to change our culture of flexibility. And last year, we undertook a study using conjoint analysis, an advanced market research technique that helped us to better understand the dynamics between individual workstyles (how and where work is done), Promoting a culture of inclusiveness and diversi- human resource practices, the physical work enty throughout the company starts at the top with vironment and the use of technologies. our most senior executives, including our CEO, and is driven throughout the organization on a What is conjoint analysis? global scale. We seek to create an environment Conjoint analysis is a statistical technique used that will not only ensure employee engagement in market research to determine what people rebut also inspire people of all backgrounds to feel ally value in products and services. Specifically, they can succeed and grow. conjoint analysis estimates the psychological tradeoffs that people make when evaluating several attributes together, measures preferences at Flexibility at American Express: Current State the individual level and uncovers real or hidden drivers which may not be apparent to even to the At American Express, 24% of our global workforce individual. works flexibly, up 60% from 2003. In part, this is because we have created and implemented inno- For example, when consumers decide to buy a vative programs, policies and benefits to help sup- home, there are many variables such as purchase port our employees growth as leaders, integrate price, size of the home, quality of kitchens and their work and life, and develop strong career bath rooms and proximity to schools that they paths. The following are highlights of the pro- consider. In most cases, consumers weight the grams that we offer: importance of each of these attributes and make tradeoffs to help in their final buying decision. -Project Resource Team (PRT) is an internal consulting pool that provides flexibility for employees who need to step back from full-time work for Applying conjoint analysis to the workplace a defined period of time, without having to step Applying the concept of tradeoffs through conaway from American Express. joint analysis, we looked at four major areas, including workplace attributes, demograph-Womens Interest Network (WIN) is an employics, custom question analysis and relationship ee network that builds a community to supports analysis. For purposes of this discussion, well all women in the workplace through idea sharing focus on the nine workplace attributes that and networking. were analyzed, including social networking, monetary stipend, flexibility, seating certain-Flexible work arrangements at American Express ty, colleague adjacency, environmental rerange from telecommuting programs, flextime, sponsibility, access to privacy, real estate cost job sharing and compressed workweeks. savings and technology. Each attribute had three or four associated value statements. While we have made tremendous progress in our efforts to promote a more flexible work environment, we understand that we have more work to Flexibility do to ensure that flexibility is the norm rather I have less control over when and where I

work. ers most highly valued included: I have the same control over when and where Networking and collaborating with co-workI work. ers. I have complete control over when and where An annual monetary stipend provision, which I work. is the dollar value placed on having greater flexibility. Social Networking More control over when and where they I do not have the opportunity to network or work. collaborate with co-workers outside of my immediate team. I have limited opportunity to network or collaborate with co-workers outside of my immediate team. I have unlimited opportunity to network or collaborate with co-workers outside of my immediate team. While we found that flexibility was among one of To illustrate how this works, in an online survey, the most highly valued attribute there was an unemployees were asked to choose between two dif- derlying reluctance to pursue it. Among employferent packages of attributes. ees, the importance of face time and impact on No annual monetary stipend career progression were the top cited reasons. I have complete control over when and where Leaders, on the other hand, expressed some hesiI work tancy with flexible work arrangements, and wor The people I work with on a daily basis work ried the most about employees not being properly on a different floor. included in the culture of the organization if they My carbon footprint is the same because there were to work remotely. is no change in my commute. An annual monetary stipend of $1,000 One of the most surprising findings we learned I have the same control over when and where was employees placed a greater value on working I work with co-workers who worked remotely than those The people I work with on a daily basis work who worked on different floors. (Those of us who directly adjacent to my workplace. work in large office buildings can appreciate eleva My carbon footprint is minimal because I am tor traffic and the time it takes to get from meetcommuting more infrequently. ing to meeting. Good old telephony is much more expedient). As they traded away less important attributes in favor of more important ones, statements were Cluster Analysis: From Pioneers to Traditionadapted to the respondents previous answers by alists. introducing different attributes into the packag- We did further cluster analysis (a common staes. Conjoint analysis is better than a simple force tistical analysis used for pattern recognition) to rank because people often under- and overesti- classify the respondents with similar values into mate what they prefer. By asking enough trade- different groups. The five groups that emerged off questions, conjoint analysis stress tests and were Pioneers, Early Adopters, Early Majority, identifies the true utility (the value created and Late Majority and Traditionalists. destroyed by each attribute) respondents place on attributes. Pioneers and Early Adopters are very similar and place the highest value on flexibility, monSelective Findings etary stipend, environmental responsibility The top three attributes that employees and leadand real estate cost savings. These combined

groups represent about 23% of the survey re- Lessons Learned spondents and are those who either work virtually or telecommute regularly. What you have seen in this case study is a small slice of findings that are most directly related to The Early Majority (32%) places the high- flexibility. On a larger scale, the information we est value on flexibility and the monetary sti- gathered has helped us more fully understand the pend. People in this group are just beginning culture of flexibility at American Express. And as to understand the business case for flexibility we all know there is no silver bullet for success. and will seek flexible work arrangements or become more supportive of flexibility for the teams they lead. We now understand the inter-relationships between: The Late Majority (28%) and Traditionalists (17%) most highly value seating certainty and Tenure colleague adjacency. In addition, social net- How much time employees spend commutworking is a highly valued attribute with Traing; ditionalists. These combined groups are less Where people are actually working (dedicated likely to seek flexible work arrangements or space, shared space, home office, etc.); become supporters of flexibility for the teams The amount of time spent in face-to-face colthey lead. laboration; The amount of time spend out of the office; The chart below gives us insight into reasons why and employees in each of these groups may be reluc- How people are connecting with each other tant to choose a flexible work arrangement. (e.g. telephone, WebEx, face-to-face meetings, etc.)

Reason The importance of face time The impact on career progression Impact on team dynamic Unsupportive leadership A job task/function which prevents flexible work arrangements Personal preference The lack of technology and tools available The lack of flexible work options which meet my needs The lack of technology support Other Overall 57% 55% 41% 34% 31% 29% 22% 13% 13% 6% Pioneers 25% 45% 22% 60% 43% 22% 24% 25% 24% 9% Early Adopters 48% 54% 33% 49% 36% 15% 28% 16% 17% 4%

Profile Early Majority 58% 59% 41% 36% 29% 24% 21% 14% 10% 6% Late Majority 61% 54% 46% 25% 29% 36% 21% 11% 12% 7% Traditionalists 62% 52% 48% 20% 28% 43% 20% 10% 11% 6%

0%

Top 2 Drivers

0%

Bottom 2 Drivers

This provides us with a platform to change how workspace is designed, how flexibility can become more integrated into redesigning jobs, and the ability to provide customized optimal flexibility programs based on individual business needs. To reiterate an earlier point, while we have made tremendous progress in our efforts to promote a more flexible work environment, we have more work to do to ensure that flexibility is the norm rather than the exception.

Citi Citis award-winning Flexible Work Strategies (FWS) program was born of our commitment to our employeesa commitment that requires listening to our team members and responding to their needs. Through our yearly Voice of the Employee (VOE) survey, we learned of a strong desire for a flexible work program that delivered greater work-life balance. So in 2005, a team of senior Citi HR professionals from across our business units and operating regions began developing our Flexible Work Strategies program. Four years later, 9,000 Citi employees in forty-eight countries have registered their flexible agreement online. Whats even more compelling is that culturally, flexible work is clearly becoming more socialized; as of our last VOE, 60,000 employees stated they are currently working in an ongoing flexible work schedule. Thus, one in five of our 300,000 employees say they are currently working flexibly to some degree. The success of the FWS program goes beyond simply providing a way for our employees to consider working from home. For starters, we dont require employees applying for FWS to provide a reason; rather we focus on how the work will be accomplished. We also took a holistic approach to the FWS by developing and implementing technologies that make the home-office connection seamless, augment productivity and ensure the FWS program achieves its mission of providing our employees with work-life balance while maintaining their value to the company. Perhaps our strongest asset is the proprietary web portal launched shortly after the programs inception that is a single source for all information related to the FWS initiative. The Citi Work Strategies site provides employees with all they need to know about their options, and gives managers the tools they need to implement the program. The site provides training that focuses on overcoming obstacles, the cultural aspects of allowing for flexible work and of course the technicalities of the program. Combined with the commitment of Citis senior executives, the program has quickly transformed our corporate culture, and made our company an even better place to work.

Harnessing Technology to Implement the FWS Program Citis FWS program would not be as successful without the web portal that provides a singlesource for critical information for our employees. The site is regularly enhanced and updated to reflect the latest technologies and company policies. The last significant enhancement in system functionality, report writing and overall ease of use from an end-user perspective came in February 2009 with the launch of another company wide program, the Alternative Workplace Strategies (AWS) initiative. The AWS program is focused on reducing Citis overall real estate portfolio, and is closely aligned to the FWS program. Given the need to build an online web-based tool to support the AWS initiative, the global project team turned to the FWS team, and it was agreed to use the same system for both programs. The end result is a new intuitive tool that guides employees through the process of applying for a flexible work strategy and registering for an AWS work arrangement. In addition to the rebuild of the website, the Information Technology team invested in new tools that provided better access to internal systems for employees working remotely. Ben Smith, a CitiMortgage sales consultant from Iowa, points out that since the enhancements to technology were put into place, working from home is equally as productive as working in an office space. In fact, having a designated help desk and a remote access specialist for remote workers made the transition to remote work smoother. Ana Cecillia M. Gonzalez, a business analyst within Business Operations from Mexico writes: Technologies such as the VPN remote office tool and net meetings have made it possible for the team to work in different places at different times. In addition to internet, phone line, and a laptop with remote access tools, a blackberry has proved very helpful, especially while traveling. Additionally, Jeff Fraser, a CitiMortgage sales consultant from Michigan, says that Microsoft Communicator has helped their sales floor tremendously. I can send instant messages to other managers in the absence of my manager. Working from home has in no way slowed me down on my work assignments.

Communications Any organization considering remote work arrangements as part of their flexible work program offerings needs to be cognizant of how important it is for employees to maintain their connectivity to their manager, their team, their department and the company. There are many Citi success stories from around the globe that demonstrate our approach to helping folks out of the office feel like theyre in the office. Karen Ghazal, an Operation Control Specialist, working in Barcelonas Sales and Service Center (BSSC), began to work from home last August. Her experience working remotely changed her perspective on reduced communication: People do ask me if I feel lonely working at home, but I really dont. With the new technologies, you can talk with your colleagues wherever you want and the days that you go in to the office, you are up to date on everything. Culture and Job Performance One of the biggest barriers to implementing a successful flexible work program is maintaining a connection to the corporate culture away from the office. To help preserve that link, our web portal and training programs provide HR representatives and managers with the tools they need to make the experience seamless. Ana Cecillia M. Gonzalez shares how the support and leadership of her manager helped her during this cultural transition. She states, My managers support has been a critical to help change attitudes and traditional ways of thinking that emerge when I started working on a remote office program. She (my manager) believes in this alternative way of working and is confident that it does not negatively affect productivity or efficiency. Being very professional, result- oriented and reachable while delivering results on time has contributed to change some of the negative attitudes around the plan. Within Citis flexible environment, all HR practices and business policies, including job performance, remain intact. Managers monitor performance and are expected to comply with all productivity and quality standards that are applicable in the office.

Metrics of Success Assessing the value of diversity initiatives has been a priority of at Citi. Citis flexible work strategies program defines success not only by focusing on cost-savings, but through improved employee and work-life satisfaction, employee retention rates, quality and productivity levels and reduced work stress. The Citi Shared Service Center in Hungary was ranked the best workplace for women in 2008 by the Hungarian Womens Career Developing Association, recognizing Citis Maternity Program in Hungry and the Flexible Work Strategies (FWS) program. Citis Barcelona Sales & Service Center (BSSC), with 1000 employees from 50 countries (who speak 16 languages), is a model for Citis Flexible Work program and cost-efficiency. BSSC Director Jorge Ferreiro writes: In addition to increasing employee satisfaction, it is also producing cost efficiencies. For each of the 33 employees who currently work from home Citi saves more than 2,000 euros. Ferreiro brings attention to the goals of the program and pinpoints that, our goals with remote work are to improve the quality of life of our employees and reduce costs and contribute towards conserving the environment by using less gasoline. This initiative helps us to attract and retain the best employees, improve quality and productivity levels and reinforce employee satisfactions. BSSC staff member, Karen Ghazal, who usually works from home four days every week, said: This has been a very positive experience. I live outside Barcelona, and I save at least 90 minutes of traveling each day. Im getting more work done with less stress. Apart from improving the work-life balance of BSSC employees, for which this program was recognized by Barcelonas mayor, FWS has contributed heavily towards higher employee retention and excellent Voice of the Employee satisfaction survey scores worldwide. The findings of Citis 2008 VOE survey showed that employees with a

flexible work strategy were consistently happier to ensure that all employees and their managers than those who dont have one, but want one. Also, are aware of Citis approach to flexibility and the the overall satisfaction and intent to stay was sig- value it brings to achieving our business goals. nificantly higher for employees on flexible work strategies versus those that would like one. In addition to FWS, Citis real-estate driven Alternative Workplace Strategies program also helps support Citis green initiatives while continuing to support flexibility and mobility for employees. Sylvia Ann Hewlett, economist and founding president of the Center for Work-Life Policy, mentioned Citis Work strategies in her article in the Forbes magazines May, 2009 issue, pointing out that as of February 2009, Citis Alternative Strategies are complementing the push to provide a greener workplace through office-sharing and remote work. Citi hopes these programs will reduce the companys need for office space by 15% over the next several years. Conclusion Citis key to success in this initiative was consistent and strong support from top management. Collaborative efforts between Information Technology, Real Estate, Human Resources and Corporate Communications teams across the organization made a smooth and cost-effective transition possible. Companies planning to move onto this track must get buy-in from the top management and strategically use the resource available within the organization. This huge change initiative would have been impossible in the absence of such support and coordination. From the inception to the implementation of the Flexible Work Strategies program, great strides were taken to ensure acceptance of flexible work was embedded into the corporate culture. Citi has been successful in doing so as reflected in the Voice of the Employee survey results. Flex reports produced every quarter show the adoption of flexible work plans is increasing. Ana Duarte-McCarthy, Chief Diversity Officer responsible for the FWS, has seen the program grow from its inception. Reflecting on the past, present and future of the initiative, she writes: Since 2006, we have clearly made progress with our employees. At the same time, we still have work to do

Deloitte

At one point, there were more than 69 different types of FWAs at Deloitte. While benefits were The Challenge achieved with these programs, the lack of flexDeloitte is one of the nations leading profession- ibility continued to remain a top issue with those al services organizations in the areas of audit, tax, women and men who left the organization volunconsulting, and financial advisory services, with tarily, accounting for more than 40% of voluntary roughly 45,000 people in the U.S. and India. The terminations. Something was missing with the organizations senior management emphasizes one-off approach of the former FWAs. that its competitive advantage relies heavily on its ability to engage and retain high-caliber talent in In addition, Deloitte saw that the business world the delivery of exceptional client service. was moving away from the corporate ladder, a linear, rigid model of career progression, to a The ability to meet the needs of Deloittes talent corporate lattice whereby professionals can take is getting increasingly more challenging. The or- numerous paths upward in their organization. ganization has doubled in size from 1996 to 2006, Within the corporate lattice, people can fast-track making it difficult to maintain the Deloitte hall- their way up the organizational chart as they dial mark collegial culture and set of shared values. In up; they can also move laterally or develop a nonaddition, the corporate workplace is changing at management, specialist role; and they can dial a structural level. The relatively staid norms and down and later resume an upward climb, or not. expectations of yesterdays workplace need to realign to meet the ever changing needs and expec- Deloitte set out to crack the code on workplace tations of todays heterogeneous workforce. and career flexibility, to understand the underlying issues and then craft a sustainable, structural Several trends are driving this transformation. solution that would address the way employees The percentage of women within the talent pools built their careers and fit their career into their from which professional services organizations life and their life into their career. recruit continues to increase. In fact, women currently make up 60% of accounting students and Deloittes Solution about of Deloittes employees. According to Deloitte research there is a dramatic difference Deloitte realized that its workplace was not in attitudes and aspirations between generations. aligned with the changed and changing workforce, Generations X and Y, which currently comprise particularly on the issue of what we call career65% of Deloittes workforce consider growth op- life fit. To respond to the rise in the diverse needs portunities a top priority, but dont necessarily de- of employees and to move decisively toward a corfine that growth as becoming a partner. There is porate lattice structure, Deloitte created a more a rise in non-traditional families, with the number customized workplaceone that acknowledges of dual-career families doubling to 42% between and values individual differences. 1950 and 2008. These changes are converging, giving birth to a workforce that is diverse in terms Deloitte pioneered this major workplace culture of its backgrounds, personal circumstances, and shift with the introduction of mass career cusaspirations. The nontraditional workforce is now tomization (MCC) in 2004 and subsequent first the new traditional. phase roll-out in 2007. MCC is a new approach that focuses on options, choices, and trade-offs In response to these and other related challenges, to deliver greater career flexibility for each indiDeloitte has developed and executed a number vidual at every stage of his or her career. MCC has of innovations. One of the first was the launch of been rolled out to 35,000 of Deloitte employees, the Deloittes Initiative for the Retention and Ad- with superlative results. The remainder of the vancement of Women (WIN) in 1993. Through workforce will be brought into the MCC model by WIN, Deloitte expanded workplace flexibility 2010. through the implementation of many formal and informal Flexible Work Arrangements (FWAs).

The MCC framework provides a structured approach for identifying options, making choices, and agreeing on trade-offs over time so that value is created for individuals and for the organization. MCC articulates a definite, not infinite, set of options along four interrelated dimensions of a careerPace, Workload, Location/Schedule, and Roleeach of which is a continuum of defined levels. Figure 1 shows a common profile at Deloitte. These dimensions are explored in more detail in Mass Career Customization (Harvard Business School Press, 2007).

MCC in Practice The experiences of three Deloitte employees show MCC in action: Natasha, a senior manager and the mother of three young boys and is someone with a common profile. She and her counselor used the MCC framework to explore her options, but for now, she chose the common profile, because that meets her needs and the needs of the organization. MCC is a huge benefit and a comfort for me as things evolve in my life, she says.

Jia, a manager, offers a successful dial-up story. She had a strong track record, as well as the capacity and desire to dial up. She and her counselor agreed that one goal was to develop sales competencies, and so she sought out several client-proposal opportunities. Jia also took Figure 1 the initiative to work with her manager and client to create a stretch role for herself on the project. At the heart of MCC is a robust career conver- We all drive our own careers, so if youre going sation between the employee and the manager to drive really fast one year, its up to you to find about options, as well as the benefits and trade- those opportunities, she says. offs associated with the choice to dial up, have a common profile, or dial down. These conversaChristina, a manager, is curtions emphasize three principles honesty, rerently dialed down. After the spect, and shared responsibility and can help birth of her first child, she women and men access information about career was worried about her abilexpectations and opportunities that they might ity to balance motherhood not otherwise receive. In this way, MCC addressand the full-time travel that es one of the most persistent perceived barriers to her consulting job required. advancement: lack of access to informal networks After a conversation with and mentors, through which career information her counselor and lead prinand opportunities often flow. cipal, they jointly defined a dial-down profile that included continuing to work full-time, but on local projects to minimize travel. Christina no longer thinks of leaving Deloitte for a more workable career, and she has become a role model for other working mothers in her region. In fact, she was recently promoted. She now tells people to not be afraid to have a career-life conversation that addresses what they need.

Deloittes Sabbatical Program Deloitte recently expanded the dial-down options available to its people. The organization implemented a sabbatical program for those who need an extended break, but still desire to return to Deloitte. This program provides even more options for Deloitte employees to achieve their personal and professional goals. Gerardo, a manager, is a sabbatical success story. He took three months off to train for an arduous climb up Mount Everest, joining an elite group of only about 1,800 individuals in the world who have successfully accomplished this goal. I am very thankful for Deloittes support, and that is the reason I carried a Deloitte banner to the top of Everest, Gerardo says. Now back to work a little more than a month after his climb, he plans to share his experiences and inspire others to follow their dreams. Results Only one year after MCCs pilot and first roll-out in 2007, Deloitte had already generated strong results from the initial implementation to 7,500 employees across five businesses. The result included significant bottom-line business improvements.

MCC resulted in a 25 percent increase in satisfaction with career-life fit, and a 28 percent increase in confidence in future career-life fit. And it generated an even greater improvement in employees responding that my counselor/manager offers me useful career/life advice and my counselor/ manager describes the trade-offs associated with my choices. Overall, 88 percent of Deloitte employees had at least one career-life conversation with their manager, and they said that the quality of these conversations was better after MCC rolled out by a ratio of four to one. MCC has directly impacted retention. Survey findings confirmed that participants who were satisfied with career-life fit were more than 1.5 times as likely as those who were dissatisfied to say said they intended to stay for six years or more. MCC has also positively affected employee impressions around flexibility and career development. A recent MCC survey of Deloitte talent confirmed that flexibility is pervasive across Deloitte. 90% of Deloitte employees reported having flexibility around when they worked and 93% reported flexibility around where they worked. These significant results testify to two fundamental benefits that MCC has delivered: (1) option valuethe comfort of knowing there is a process and structure in place that allows each employee to customize his/her career and level of contribution to the organization as priorities change over time; and (2) participation valuethe ability to have a say in the way each employees career unfolds, regardless of what choices are made. Lessons Learned Deloittes MCC initiative has been a clear success, and it has also produced important insights for others. A few lessons learned along the transformation journey include:

Figure 2

Integration is essential. MCCs power comes from acting as the connective tissue for programs and activities that the organization already has in place, reinforcing the cultural change that is de sired and seeing that these efforts are organized to deliver value. MCC must be integrated into the

annual talent cycle that, for most companies, includes goal setting, career development, learning plans, feedback, and performance management. It cant simply be a stand-alone effort disconnected from mainstream talent processes. Leadership support is critical. The MCC Steering Committee, composed of Deloitte senior leadership, is charged with engaging the hearts and minds of the general leadership and management in the organization. In addition, a partner/ principal champion team supports each of the roll-out sites, and includes line partners/principals along with talent organization leaders, as well as the project teams charged with executing MCC and integrating it with existing talent management processes. Deloittes leaders have also shared how they have dialed up and dialed down over time, and this level of honesty has created trust and demonstrated the viability of MCC in a compelling way. MCC is about enabling, not entitling. A common misperception is that MCC is an entitlement program in which individuals can set their own rules. To the contrary: MCC is a career enabler. It opens up new possibilities about how careers are created and sustained, makes transparent both choices and trade-offs, and retains talent by cultivating a sense of loyalty and connection. While the business is responsible for outlining the options available to individuals, collaboration and compromise are necessary to develop options that work in any given situation. Leaders can head off an entitlement-oriented, anything-goes attitude among some workers with messages to emphasize that MCC does not change the responsibility of individuals to take the initiative and to own their careers and choices. Decisions must work for both the individual and the business for MCC to work over the long-term. MCC does not open the floodgates to either dialing down or dialing up. Ninety percent of individuals at Deloitte have chosen the common profile. Of the 10 percent who dialed up or down, dial-ups outnumbered dial-downs by two to one. However, 40 percent of participants explored the dial-up and dial-down options, resulting in a high degree of information exchanged about how careers are built, including the options and trade-offs associated with choices.

The Long View Since Deloitte embarked on its journey toward greater flexibility and customization, it has learned that there is no silver-bullet program. The organizations diverse set of workplace programs must be integrated into a multidimensional approach. True flexibility also requires a shift in the organizations mindset. Whats important is that mass career customization gives people options that may not have been so obvious before, says Sharon Allen, chairman of Deloitte LLP. It enables a continuous dialogue that supports a culture of flexibility. As used in this document, Deloitte means Deloitte LLP and its subsidiaries. Please see www. deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

Part III: OBSERVATIONS AND PREDICTIONS Stepping back, what do these data and stories tell us?

A New Standard. First, this behind-the-scenes glimpse at the 100 Best says that the bar has just been raised. When virtually every company in this group asserts that flexible work is simply the way business is done, that is a significant marker. A tipping point to celebrate, it signifies that a new standard has been set for companies that want to Disaster planners are an interesting example. One be employers of choice. in five US businesses suffers a disaster that causes it to cease operations for a time. Roughly twoIt also means that even the 100 Best Companies, thirds of the companies that go through a severe who compete inside and outside their peer groups, crisis fail within two years. In addition to severe must make sure that whats behind their yes an- crises, business interruptions occur regularly due swers is real. When they say they have the systems to a range of causes from a flu outbreak or mass that enable people to work flexibly, do they have transit shut down to a flooded building. If the all the essential ones? How earnestly do they in- workforce is already equipped, trained and profivestigate remaining barriers? Besides measuring cient at working from home or an alternate workhow many people work flexibly, do they consider place, it can literally save the business. And so diwhether everyone is able to work when, where saster planners have begun to require that teams and how they work best? Do they look beyond the (individuals, managers, and executives) are set up existing workforce, at the talent that never ap- to work flexibly and in fact practice working flexplied or turned down their offer about the role ibly on a regular basis. Otherwise, the reasoning flexible work or flexible career choices played? Do goes, people will not remember the access codes, employees agree that if they work flexibly they know how to share documents or reach others will have equal access to advancement, develop- all the things critical to functioning smoothly in ment and quality assignments? Do managers have an emergency. When the disaster planning team the attitude, competencies and wherewithal to says, you will do this, it resonates differently. manage dispersed and flexible talent well? Facilities planners are another catalyst. As flexIts time for honest self-examination because ible office space designs receive more visibility, the driving force behind flex has changed, as the this trend will grow. These designs consolidate data and stories illustrate. The new reality -- and space and reduce the office footprint, by replacthis is no small matter -- is that companies are no ing dedicated offices for individuals with shared longer allowing flexible work because it helps em- and flexible space configurations that benefit ployees, but are promoting it for business reasons from increasing remote work. Besides the direct that may be even more urgent or powerful from a savings in facilities and other costs when space is financial perspective. These reasons include the reduced, there will no doubt be increased incenneed to reduce their facilities footprint or be able tives for green business practices and perhaps to continue operations at full speed during an in- penalties for offenders, fueled by environmental terruption or disaster (and therefore not go out of concerns. business), to name only two. With this shift to a business necessity, it becomes essential that the Medical costs may be another impetus. Given the organization eliminate anything holding employ- attention on health care reform and the health isees back from working flexibly or teams from do- sues facing aging Boomers in particular, the mediing it successfully. cal cost savings from the reduced stress associat-

Powerful New Catalysts a Shift in Momentum. These new internal players (disaster planners, facilities and others) may very well shift the momentum and whos pushing the flex action. HR now partners with IT, risk management, facilities and others on the execution and facilitation of flex. No longer, perhaps, will HR be inviting these players into the conversation as much as coordinating with them as equal partners. They may even lead the charge. Certainly they are an increasingly powerful force driving the agenda.

ed with flexible work are expected to be a driving force for change. Medical science shows that a sense of control reduces stress and reduced stress lowers medical costs. Flexible work is a documented stress reducer because it gives employees a greater sense of control. The link between flexible work, employee wellness and reduced medical costs can be a significant force for change. A Glimpse Ahead. The transformation.

ample, it can force teams to plan ahead more, establish better objective measures of results, and be clearer in their communications. These changes can also improve the experience of employees along with their health and well being and so generate enormous value back to the business. For businesses that sell knowledge or service -- most businesses today -- the state of their people is directly related to earnings and growth. Ideas and personalized service are their differentiator. But innovative ideas come from the minds of people -- more readily from rested, clearheaded people. Attentive service is given by people who genuinely care more readily from people who feel respected and valued. These are the hallmarks of a flexible work environment that recognizes both the businesses and individuals needs.

The transformation from work done at the same time in the same place to anytime, anywhere work is no small change, especially in a context of employment laws created for that former centralized, synchronized, standardized workplace. As anytime anywhere work becomes the norm, all kinds of legal issues arise that will need to be sorted out and regulated differently. The legal issues already surfacing range from where an out- Conclusion. The strength. of-state virtual workers taxes are assessed to how records are fully retrieved when his/her employ- The strength of the flexible cultures revealed by ment is terminated. They are only the beginning. this study is remarkable. It establishes that as of 2009, having a great employment brand requires New discrimination issues will require a much meeting a new standard. It is no longer enough to closer eye on the fair and consistent application simply offer flexible ways of working, innovative of flex. While about three-fourths of the 100 Best as that once was. Flexible work must be enveloped say they have systems to monitor the fair and con- in a climate and culture that recognizes that worksistent application of flex, this is quite a challeng- ing flexibly is the new normal and is supported by ing thing to facilitate, let alone ensure. Look for the structures in which it can thrive. much more systemic ways of coaching, tracking, educating and documenting that this is in fact the The fact that flexible work has found its place sets case. the stage for a more sophisticated dialogue, set of issues, and opportunities. It also will open up new The next few years will see greater attention to challenges and no doubt, new controversies. these and other issues associated with shifting to this entirely new work paradigm. For any organi- It will be fascinating to watch what happens next. zation, regardless of its size, this in-between stage is the trickiest moving from discreet flex policies for what are considered non-traditional employees, to a systemic and pervasive change in how work is done, performance measured, and teams communicate affecting the majority. These are not small things. On the upside, the transformation to flexible, dispersed and asynchronous work (i.e. working in different places at different times) can force teams to reinvent how they function and ultimately improve processes and output dramatically. For ex-

Project Sponsors

For nearly 172 years, P&G has been providing trusted brands that make every day a little better for the worlds consumers. P&G has the largest lineup of leading brands in its industry, with 23 brands with over $1 billion in annual sales, and another 20 brands generating about $500million or more in annual sales.

P&G serves about four billion people in the world today. Our leaders have a clear purpose for the future - improve the lives of even more consumers, in more parts of the world, more completely. The innovation, talent and vision of our diverse workforce are the source of the companys competitive advantage. Our success depends entirely on the strength of our talent pipeline and the systems designed to support and develop our workforce. We build from within and develop our talent with a disciplined process led by the CEO and the senior leadership team. This is essential to building Report Author: Sandy Burud, Ph.D., Chief Strategy Officer, leadership excellence and helps ensure that P&G FlexPaths, LLC brands live up to a promise of making everyday just a little bit better; a promise for now and gen- October 2009 erations to come. Dowload an electronic copy of the full report or its executive summary at http://www.workingmothermediainc.com/?service=vpage/4718 Celebrating 30 years, Working Mother magazine reaches 2 million readers and is the only national magazine for career-committed mothers while workingmother.com brings to the Web a broad range of insight and solutions served to working mothers every day. Working Mothers 24-year signature research initiative, Working Mother 100 Best Companies, is the most important benchmark for work-life practices in corporate America. With offices in New York and Washington, D.C., Working Mother Media, a division of Bonnier Corp., includes the National Association for Female Executives, Diversity Best Practices, the WorkLife Congress and the Multicultural Womens Conference and Town Halls. Working Mother Medias mission is to champion cultural change.
Working Mother Media 2009 and FlexPaths 2009

FlexPaths helps organizations respond to the changing workforce and workplace landscape by delivering innovative software solutions and services that initiate, advance, and accelerate their flexible cultures. These solutions -- the Flex Management System, Flex Tracking System, and Flex Talent Acquisition System -- are used by Fortune 500 companies to embed flexible work practices and communicate them across the enterprise, engage critical stakeholders, align the actions of managers, promote their flexible employment brand and acquire diverse talent. The success of our solutions (www.flexemployer.com) is the result of industry-leading partnerships and client collaboration.