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Transforming the Workplace at
                   SCAN Health

       Presented by: Diane Coles

                                      Charlie Grantham
                                      Jim Ware




    Three Business Imperatives*


                          Reducing Fixed
                         Operational Costs




Closing the                                                                        Institutionalizing
Talent Gap                                                                            Innovation

 * Corporate Agility, by Charles Grantham, James Ware, and Cory Williamson, AMACOM Press, 2007


                                               © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                                                      -2-
Today’s Agenda

Goal:
                                                                                                              Agen
•   A conversation about the benefits of making                                                         • impo    da
                                                                                                              rt
    flexible work “work” – and how to do it                                                              mobil ance of
                                                                                                              e w   ork
                                                                                                       • chall
Some Topics for Discussion:                                                                           • a re
                                                                                                               enge
                                                                                                                al-
                                                                                                                   s
                                                                                                         awar world,
•   Why is remote/mobile work so important ?                                                                   d
                                                                                                        exam -winning
                                                                                                               ple
•   What are the challenges of implementing a                                                        • guide
                                                                                                             li
                                                                                                      succe nes for
    flexible work program?                                                                                   ss
                                                                                                   • lookin
•   What kind of business impact does flexible                                                      ahea
                                                                                                          d
                                                                                                            g wa
                                                                                                                  y
    work produce?
•   What are the important “lessons learned”
    from the SCAN Health Plan experience?
•   What is the future of flexible work?


                          © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                                 -3-




                          © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                                 -4-
What’s Really Going On?
   Most of the institutions and business operations that
   supported industrial work styles are crumbling—rapidly!




                        © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                               -5-




Work Evolves

• What “work” is changes: from
 agriculture to manufacturing to
 information

• How “work” gets done changes: from
 shovels to machines to computers

• Where “work” gets done changes:                                       from
 open land to cities and villages to
 anywhere and everywhere

• What workers do changes:                      from brute
 force to brain force




                        © Copyright 2009 by The Work Design Collaborative. All rights reserved   -6-


                                               -6-
Two-Thirds of Knowledge Work Today Is
Done Outside Corporate Facilities




    Corporate
                                           In Between                                          At Home
    Facilities
                                              35%                                                35%
      30%
                                        “3rd place”                                           “2nd place”
   “1st place”
                 Opportunity in next five years:




                     © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                            -7-




Indiana Jones—circa 2500 AD




                     © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                            -8-
© Copyright 2009 by The Work Design Collaborative. All rights reserved




                                                             -9-




   SCAN Health Plan*


  • A not-for-profit Medicare
     Advantage HMO

  • Based in Long Beach,
     California, with operations in
     Phoenix, AZ

  • Approximately 850 employees
  • Focusing on both cost reduction
     and growth at same time

   www.scanhealthplan.com
* SCAN = Senior Care Action Network

                                      © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                                            - 10 -
Redefining SCAN’s Workplace
Strategy
    In 2006:                                                         New Direction:
    Enabling face-to-face                                                 More distributed/virtual
    management                                                            workforce
    Inefficient space                                                     Less space but better space,
                                                                          and more effectively used
    Traditional “grid” workplace                                          More exciting, creative space
    design                                                                that fosters teamwork (NO
                                                                          SILOS)
    Space, technology, and services                                       Integrated solutions of space,
    were silos                                                            technology, and services
    Focus on place                                                        Focus on work
    Cost focus                                                            Cost focus – with benchmarking
    No attention to Green                                                 Go Green

                            © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                                  - 11 -




The AWESOME Project
Alternate Workplaces Engaging Staff and Office
Management Efficiencies

                            IT                                                  HR

                                          Facilities

                     Marketing                                                             Legal

                        Risk Mgt.                                  PM Office


Project Activities:
•   ROI Business Case Dev’t                                  •     Business Unit Readiness
•   Policy development                                       •     Training & Change Management
•   Space Planning/Construction                              •     Communications
•   Technology Planning                                      •     Implementation


                            © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                                  - 12 -
Three Dimensions of Success

    • Efficiency – making the most of the space
      –   density of occupancy
      –   cost of occupancy
      –   cost of change (moves, adds, changes)
      –   ROI

    • Effectiveness – making the most of the people
      – attraction/retention of employees
      – interaction among support groups (IT/HR/CRE)
      – departmental productivity

    • Expression – making the most of the mission
      – employee engagement
      – job satisfaction/flexibility




                             © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                                   - 13 -




    Personal Perspectives
    Drawn from Focus Groups

Employees                                                                Managers
•   “I would rather find another job                                     •     “We should have manager training
    than come back in the office.”                                             prior to selecting ‘remote
•   “My production went up slightly                                            workers.’”
    at home, but my accuracy went                                        •     “I’m surprised how quickly they
    way up!”                                                                   separated themselves from the
•   “We feel we are more of a team                                             office. They don’t want to come
    now than when we were in the                                               back.”
    office.”                                                             •     “The home-based workers are
•   “We can talk to each faster than                                           telling me about things that I
    someone in the office – when you                                           don’t even know are happening
    call the office you get voicemail.”                                        here at SCAN.”
•   “I’m calling my manager asking, ‘Is                                  •     “I’m concerned about keeping the
    there anything else you want me                                            AWESOME employees connected
    to do?’”                                                                   with the company.”

                             © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                                   - 14 -
The Numbers


• Provisioning cost                                                         38%

• Provisioning time                                                         12 weeks to 3 days

• Space requirements                                                        22%

• Return on investment                                                      40%+

• Employee productivity                                                     18%

• Employee engagement                                             No change


                      © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                            - 15 -




New Collaboration Spaces




                      © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                            - 16 -
New Collaboration Spaces, continued




              © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                    - 17 -




New Collaboration Spaces, continued




              © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                    - 18 -
The Next Step
A Flexible Office for Flexible Work




                © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                      - 19 -




Participatory Design
Using an Interactive “Smartboard®”




                © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                      - 20 -
Workplace Policy – in Pictures




                   © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                         - 21 -




Lessons Learned

• Home office setup
• Productivity
• Communication
• Space planning
• Managing remote workers
• Unexpected
 marketing/recruiting benefit

                   © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                         - 22 -
For Further Information
Diane Coles
Long Beach, California
+1 562 989 8327 office
+1 562 427 7346
+1 928 449 8998 mobile
dcoles@scanhealthplan.com

Dr. Charles Grantham                                                       Dr. James Ware
Prescott, Arizona                                                          Berkeley, California
+1 928 771 9138 office                                                     +1 510 558 1434 voice
+1 928 771 9138 fax                                                        +1 510 558 1431 fax
+1 928 533 9149 mobile                                                     +1 510 206 8147 mobile
charlie@thefutureofwork.net                                                jim@thefutureofwork.net


Website:       http://www.thefutureofwork.net

Book:          Corporate Agility ( http://www.corporateagilitybook.com )

Blog:          http://www.thefutureofwork.net/blog

Twitter:       http://www.twitter.com/thefutureofwork


                              © Copyright 2009 by The Work Design Collaborative. All rights reserved




                                                    - 23 -

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Transforming The Workplace At Scan Health.Ifma Wwp.10 8 09

  • 1. Transforming the Workplace at SCAN Health Presented by: Diane Coles Charlie Grantham Jim Ware Three Business Imperatives* Reducing Fixed Operational Costs Closing the Institutionalizing Talent Gap Innovation * Corporate Agility, by Charles Grantham, James Ware, and Cory Williamson, AMACOM Press, 2007 © Copyright 2009 by The Work Design Collaborative. All rights reserved -2-
  • 2. Today’s Agenda Goal: Agen • A conversation about the benefits of making • impo da rt flexible work “work” – and how to do it mobil ance of e w ork • chall Some Topics for Discussion: • a re enge al- s awar world, • Why is remote/mobile work so important ? d exam -winning ple • What are the challenges of implementing a • guide li succe nes for flexible work program? ss • lookin • What kind of business impact does flexible ahea d g wa y work produce? • What are the important “lessons learned” from the SCAN Health Plan experience? • What is the future of flexible work? © Copyright 2009 by The Work Design Collaborative. All rights reserved -3- © Copyright 2009 by The Work Design Collaborative. All rights reserved -4-
  • 3. What’s Really Going On? Most of the institutions and business operations that supported industrial work styles are crumbling—rapidly! © Copyright 2009 by The Work Design Collaborative. All rights reserved -5- Work Evolves • What “work” is changes: from agriculture to manufacturing to information • How “work” gets done changes: from shovels to machines to computers • Where “work” gets done changes: from open land to cities and villages to anywhere and everywhere • What workers do changes: from brute force to brain force © Copyright 2009 by The Work Design Collaborative. All rights reserved -6- -6-
  • 4. Two-Thirds of Knowledge Work Today Is Done Outside Corporate Facilities Corporate In Between At Home Facilities 35% 35% 30% “3rd place” “2nd place” “1st place” Opportunity in next five years: © Copyright 2009 by The Work Design Collaborative. All rights reserved -7- Indiana Jones—circa 2500 AD © Copyright 2009 by The Work Design Collaborative. All rights reserved -8-
  • 5. © Copyright 2009 by The Work Design Collaborative. All rights reserved -9- SCAN Health Plan* • A not-for-profit Medicare Advantage HMO • Based in Long Beach, California, with operations in Phoenix, AZ • Approximately 850 employees • Focusing on both cost reduction and growth at same time www.scanhealthplan.com * SCAN = Senior Care Action Network © Copyright 2009 by The Work Design Collaborative. All rights reserved - 10 -
  • 6. Redefining SCAN’s Workplace Strategy In 2006: New Direction: Enabling face-to-face More distributed/virtual management workforce Inefficient space Less space but better space, and more effectively used Traditional “grid” workplace More exciting, creative space design that fosters teamwork (NO SILOS) Space, technology, and services Integrated solutions of space, were silos technology, and services Focus on place Focus on work Cost focus Cost focus – with benchmarking No attention to Green Go Green © Copyright 2009 by The Work Design Collaborative. All rights reserved - 11 - The AWESOME Project Alternate Workplaces Engaging Staff and Office Management Efficiencies IT HR Facilities Marketing Legal Risk Mgt. PM Office Project Activities: • ROI Business Case Dev’t • Business Unit Readiness • Policy development • Training & Change Management • Space Planning/Construction • Communications • Technology Planning • Implementation © Copyright 2009 by The Work Design Collaborative. All rights reserved - 12 -
  • 7. Three Dimensions of Success • Efficiency – making the most of the space – density of occupancy – cost of occupancy – cost of change (moves, adds, changes) – ROI • Effectiveness – making the most of the people – attraction/retention of employees – interaction among support groups (IT/HR/CRE) – departmental productivity • Expression – making the most of the mission – employee engagement – job satisfaction/flexibility © Copyright 2009 by The Work Design Collaborative. All rights reserved - 13 - Personal Perspectives Drawn from Focus Groups Employees Managers • “I would rather find another job • “We should have manager training than come back in the office.” prior to selecting ‘remote • “My production went up slightly workers.’” at home, but my accuracy went • “I’m surprised how quickly they way up!” separated themselves from the • “We feel we are more of a team office. They don’t want to come now than when we were in the back.” office.” • “The home-based workers are • “We can talk to each faster than telling me about things that I someone in the office – when you don’t even know are happening call the office you get voicemail.” here at SCAN.” • “I’m calling my manager asking, ‘Is • “I’m concerned about keeping the there anything else you want me AWESOME employees connected to do?’” with the company.” © Copyright 2009 by The Work Design Collaborative. All rights reserved - 14 -
  • 8. The Numbers • Provisioning cost 38% • Provisioning time 12 weeks to 3 days • Space requirements 22% • Return on investment 40%+ • Employee productivity 18% • Employee engagement No change © Copyright 2009 by The Work Design Collaborative. All rights reserved - 15 - New Collaboration Spaces © Copyright 2009 by The Work Design Collaborative. All rights reserved - 16 -
  • 9. New Collaboration Spaces, continued © Copyright 2009 by The Work Design Collaborative. All rights reserved - 17 - New Collaboration Spaces, continued © Copyright 2009 by The Work Design Collaborative. All rights reserved - 18 -
  • 10. The Next Step A Flexible Office for Flexible Work © Copyright 2009 by The Work Design Collaborative. All rights reserved - 19 - Participatory Design Using an Interactive “Smartboard®” © Copyright 2009 by The Work Design Collaborative. All rights reserved - 20 -
  • 11. Workplace Policy – in Pictures © Copyright 2009 by The Work Design Collaborative. All rights reserved - 21 - Lessons Learned • Home office setup • Productivity • Communication • Space planning • Managing remote workers • Unexpected marketing/recruiting benefit © Copyright 2009 by The Work Design Collaborative. All rights reserved - 22 -
  • 12. For Further Information Diane Coles Long Beach, California +1 562 989 8327 office +1 562 427 7346 +1 928 449 8998 mobile dcoles@scanhealthplan.com Dr. Charles Grantham Dr. James Ware Prescott, Arizona Berkeley, California +1 928 771 9138 office +1 510 558 1434 voice +1 928 771 9138 fax +1 510 558 1431 fax +1 928 533 9149 mobile +1 510 206 8147 mobile charlie@thefutureofwork.net jim@thefutureofwork.net Website: http://www.thefutureofwork.net Book: Corporate Agility ( http://www.corporateagilitybook.com ) Blog: http://www.thefutureofwork.net/blog Twitter: http://www.twitter.com/thefutureofwork © Copyright 2009 by The Work Design Collaborative. All rights reserved - 23 -