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Flexible Work Practices as a
Competitive Advantage
@ Cisco



© 2010 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential   1
© 2010 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential   2
Changing the way
we work, live, play                                           50% collaborate with
    and learn                                                colleagues in a different
                                                                   Workforce
                                                                    time zone
                                                                     Changes
                                                              52% work in a different
                                                            location than their manager


                     Cisco technology Telepresence this journey…
                               Mobility
                                          started
                                        Cisco                    Unified
                                                                Technology
                                                              Communications
                                                                                         70,000 Global
                                          Energy demands            Security               Employees
                                           CO2 emissions
                                            Real Estate                                  Environmental
                                                                                         21.5Mft2 Global
                                                                                            Footprint




 © 2010 Cisco and/or its affiliates. All rights reserved.                                                  Cisco Confidential   3
© 2010 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential   4
PCs & Macs                         Android & iOS Tablets   Smart Phones




© 2010 Cisco and/or its affiliates. All rights reserved.                                   Cisco Confidential   5
1.3 Billion = Estimated world’s mobile worker
                                        population by 2015*                  *IDS estimate

© 2010 Cisco and/or its affiliates. All rights reserved.                  Cisco Confidential   6
The urban or
                                                           Virtual              regional Hub
                                                           Corporate
                                                           Colleagues             Leveraging
      Virtual                                                                     technology to give
      Freelancers                                                                 virtual workers a
                                                             Extension of         feeling of being in a
                                                             freedom to           shared
                                                             corporate            environment
               Independent virtual                           employees – work
               workers using                                 anywhere,
               nascent e-mail                                                     Leveraging non-
                                                             anytime…             company owned
               networks
                                                                                  shared workspaces




© 2010 Cisco and/or its affiliates. All rights reserved.                                      Cisco Confidential   7
© 2010 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential   8
41%                                 of our employees work outside the U.S.


38%                                  work in a different location than their manager


47%                                  collaborate with people in different time zones



89%                                 telecommute at least once a week


                                    classified mobile workers, though 43% work
32%                                 that way


  6%                                work in a fully remote manner

Source: Cisco Work Profile Survey, 2010

© 2010 Cisco and/or its affiliates. All rights reserved.                               Cisco Confidential   9
© 2010 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential   10
Leveraging Cisco innovation that enables
                     employees to focus on the work they do…not
                             where they do the work…
                                        Enabling flexibility in where employees work
                                          Enabling flexibility in how employees work




                                 Competitive advantage for Cisco
© 2010 Cisco and/or its affiliates. All rights reserved.                               Cisco Confidential   11
FWP as a
                                                                                        Competitive
                                                           Flexibility for              Advantage
                                                           Employee
                                                           Well-Being                     Leverage FWP
       Common                                                                             best practices as a
                                                                                          means of attracting
       Experience                                             Leverage workplace          and retaining top
                                                              flexibility and             talent, continuing
                                                              collaboration tools to      to drive productivity
                 Consistent manager                           identify different ways     and showcase
                 practices and                                of working that             Cisco industry best
                 employee access to                           improve employee            practice.
                 FWP                                          well being (i.e. work
                                                              life balance)


       Collaboration with Partners (Community of Practice)

© 2010 Cisco and/or its affiliates. All rights reserved.                                             Cisco Confidential   12
3. Remote/Distant       4. Neighborhood          5. Workstation
              1. Highly Mobile                              2. Campus Mobile              Collaborator            Collaborator             Anchored


         Highly mobile; Travels                              Internally mobile;       Non-mobile employee     Neighborhood-based       Desk-bound, non-
             extensively to                                   Interacts cross-        who works frequently      employee who is       mobile employee who
         customer and partner                              functionally in face-to-        with remote          mobile within the        performs highly
          locations; frequently                                face scheduled            colleagues, and      group area; interacts    focused individual
             interacts with                                  meetings; Often in       frequently works from   with, coordinates and     work; some team
               customers                                      leadership roles                home               manages teams             interaction




© 2010 Cisco and/or its affiliates. All rights reserved.                                                                                    Cisco Confidential   13
Part Time           Employee works less than full-time hours




                                  Telecommute              Work performed outside of a Cisco office



                                       Off / On            Employees pauses work at Cisco for a 1-2-year period
                                        Ramp




                                     Flex Time             Variation in when work is completed




© 2010 Cisco and/or its affiliates. All rights reserved.                                               Cisco Confidential   14
•   Global Consistency
                                                                                       •   Expectations for Participation

                                                                           Policies




•     Manager Capability
                                                               Practices        Technology    •   Cisco Virtual Office
•     Team Effectiveness                                                                          (Routing, Mobility,
•     Performance Mgmt                                                                            Security, Collaboration)
                                                                                              •   WebEx Meeting Center




    © 2010 Cisco and/or its affiliates. All rights reserved.                                                Cisco Confidential   15
Corporate Practices                           Workforce Impact
  • Consistent, global options and                         • Mobile Workers grew from
    policies aligned to Cisco’s                              16,690 to 22,422 (34%
    strategy and culture,                                    increase)

  • Implemented broadly but                                • Remote Workers grew from
    customized to reflect country-                           881 to 1,060 (20% increase)
    specific laws and entitlement
    requirements                                           • Part time workers from 133
                                                             to 248 (86% increase)
  • Support resources & best
    practice sharing
                                                           • Increased technology-
  • Manager and employee training                            enabled flexibility for all
                                                             employees


© 2010 Cisco and/or its affiliates. All rights reserved.                             Cisco Confidential   16
Mobile, Social, Visual, Virtual




© 2010 Cisco and/or its affiliates. All rights reserved.                         Cisco Confidential   17
Customer Collaboration       Employee Collaboration




© 2010 Cisco and/or its affiliates. All rights reserved.                            Cisco Confidential   18
Cisco Provides:                               Employee Provides:
             • Laptop – PC or Mac, carry bag,              • BYOD Mobile Phone (Cisco pays bill) –
               lock, docking station                         iPhone, Blackberry, Android
             • Cisco Virtual Office (CVO):                 • BYOD Tablet – iPad, Blackberry, Android
                 • Router for home extends                 • BYOA Mobile Internet for Tablet
                    corporate wi-fi to home                • Home Internet Connection
             • IP Video Phone                              • Home office and utilities
             • Personal TelePresence end-point
               (EX60 or EX90)
             • Precision HD USB Camera




© 2010 Cisco and/or its affiliates. All rights reserved.                                 Cisco Confidential   19
© 2010 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential   20
© 2010 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential   21
Incremental productivity gained by aligning with
                                                           employee work preferences
                                                               Average 79 hours/employee each year in commute
                                                               avoidance, 5.5 million hours/year across Cisco

                                                           Incremental productivity from using collaboration
                                                           technology to avoid travel time while at work (i.e. between
                                                           buildings
                                                               4.5 million hours/year, 65 hours/year per employee

                                                           Real estate reduction over 2.5 years
                                                              $22,000/year per employee

                                                           Percent of saved commute time our employees use
                                                           for work

© 2010 Cisco and/or its affiliates. All rights reserved.                                                   Cisco Confidential   22
70%
                                                            Important to                    80% Very
                                                              continue                     Important to
                                                             working at                     Employee
                                                               Cisco                       Satisfaction


                                                  50%                                                49% No
                                         Productivity
                                                                                2000              management or
                                          increases                         Teleworkers         technology barriers
                                         working from                       Surveyed **          to telecommuting
                                            home



                                                            97% would                     49% saves
                                                            recommend                     on commute
                                                           teleworking to                     time
                                                             their peers

                                                                                                       s/week
 * January, 2012 Survey                                                                                         * Q1FY12 Survey


© 2010 Cisco and/or its affiliates. All rights reserved.                                                              Cisco Confidential   23
4.6                                                           Traditional      Mobile   Remote

4.4

4.2

4.0

3.8

3.6

3.4

3.2

3.0
                         Engagement                        Likely to Stay at       Likely to     Self-Reported
                                                                Cisco          Recommend Cisco    Productivity
Source: Pulse Survey, 2010, WPR Work Profile Survey, 2010


© 2010 Cisco and/or its affiliates. All rights reserved.                                                Cisco Confidential   24
• Cisco Mobile and Remote employees have voluntary turnover rates
           29% to 34% less than those in Traditional arrangements
                 As a result of flexible work practices, Cisco saves an estimated 560
                 voluntarily terminations each year




                                                                 $75M+
                                                                  cost
                                                                savings




      Source: Cisco voluntary attrition data – Global Results

© 2010 Cisco and/or its affiliates. All rights reserved.                                            25
                                                                                        Cisco Confidential   25
Thank you.




© 2010 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential   26

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CISCO Flexible Work / Telework Presentation for RDASI

  • 1. Flexible Work Practices as a Competitive Advantage @ Cisco © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1
  • 2. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
  • 3. Changing the way we work, live, play 50% collaborate with and learn colleagues in a different Workforce time zone Changes 52% work in a different location than their manager Cisco technology Telepresence this journey… Mobility started Cisco Unified Technology Communications 70,000 Global Energy demands Security Employees CO2 emissions Real Estate Environmental 21.5Mft2 Global Footprint © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
  • 4. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4
  • 5. PCs & Macs Android & iOS Tablets Smart Phones © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
  • 6. 1.3 Billion = Estimated world’s mobile worker population by 2015* *IDS estimate © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6
  • 7. The urban or Virtual regional Hub Corporate Colleagues Leveraging Virtual technology to give Freelancers virtual workers a Extension of feeling of being in a freedom to shared corporate environment Independent virtual employees – work workers using anywhere, nascent e-mail Leveraging non- anytime… company owned networks shared workspaces © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
  • 8. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
  • 9. 41% of our employees work outside the U.S. 38% work in a different location than their manager 47% collaborate with people in different time zones 89% telecommute at least once a week classified mobile workers, though 43% work 32% that way 6% work in a fully remote manner Source: Cisco Work Profile Survey, 2010 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9
  • 10. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
  • 11. Leveraging Cisco innovation that enables employees to focus on the work they do…not where they do the work… Enabling flexibility in where employees work Enabling flexibility in how employees work Competitive advantage for Cisco © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
  • 12. FWP as a Competitive Flexibility for Advantage Employee Well-Being Leverage FWP Common best practices as a means of attracting Experience Leverage workplace and retaining top flexibility and talent, continuing collaboration tools to to drive productivity Consistent manager identify different ways and showcase practices and of working that Cisco industry best employee access to improve employee practice. FWP well being (i.e. work life balance) Collaboration with Partners (Community of Practice) © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
  • 13. 3. Remote/Distant 4. Neighborhood 5. Workstation 1. Highly Mobile 2. Campus Mobile Collaborator Collaborator Anchored Highly mobile; Travels Internally mobile; Non-mobile employee Neighborhood-based Desk-bound, non- extensively to Interacts cross- who works frequently employee who is mobile employee who customer and partner functionally in face-to- with remote mobile within the performs highly locations; frequently face scheduled colleagues, and group area; interacts focused individual interacts with meetings; Often in frequently works from with, coordinates and work; some team customers leadership roles home manages teams interaction © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13
  • 14. Part Time Employee works less than full-time hours Telecommute Work performed outside of a Cisco office Off / On Employees pauses work at Cisco for a 1-2-year period Ramp Flex Time Variation in when work is completed © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14
  • 15. Global Consistency • Expectations for Participation Policies • Manager Capability Practices Technology • Cisco Virtual Office • Team Effectiveness (Routing, Mobility, • Performance Mgmt Security, Collaboration) • WebEx Meeting Center © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15
  • 16. Corporate Practices Workforce Impact • Consistent, global options and • Mobile Workers grew from policies aligned to Cisco’s 16,690 to 22,422 (34% strategy and culture, increase) • Implemented broadly but • Remote Workers grew from customized to reflect country- 881 to 1,060 (20% increase) specific laws and entitlement requirements • Part time workers from 133 to 248 (86% increase) • Support resources & best practice sharing • Increased technology- • Manager and employee training enabled flexibility for all employees © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16
  • 17. Mobile, Social, Visual, Virtual © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17
  • 18. Customer Collaboration Employee Collaboration © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18
  • 19. Cisco Provides: Employee Provides: • Laptop – PC or Mac, carry bag, • BYOD Mobile Phone (Cisco pays bill) – lock, docking station iPhone, Blackberry, Android • Cisco Virtual Office (CVO): • BYOD Tablet – iPad, Blackberry, Android • Router for home extends • BYOA Mobile Internet for Tablet corporate wi-fi to home • Home Internet Connection • IP Video Phone • Home office and utilities • Personal TelePresence end-point (EX60 or EX90) • Precision HD USB Camera © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19
  • 20. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20
  • 21. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21
  • 22. Incremental productivity gained by aligning with employee work preferences Average 79 hours/employee each year in commute avoidance, 5.5 million hours/year across Cisco Incremental productivity from using collaboration technology to avoid travel time while at work (i.e. between buildings 4.5 million hours/year, 65 hours/year per employee Real estate reduction over 2.5 years $22,000/year per employee Percent of saved commute time our employees use for work © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22
  • 23. 70% Important to 80% Very continue Important to working at Employee Cisco Satisfaction 50% 49% No Productivity 2000 management or increases Teleworkers technology barriers working from Surveyed ** to telecommuting home 97% would 49% saves recommend on commute teleworking to time their peers s/week * January, 2012 Survey * Q1FY12 Survey © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23
  • 24. 4.6 Traditional Mobile Remote 4.4 4.2 4.0 3.8 3.6 3.4 3.2 3.0 Engagement Likely to Stay at Likely to Self-Reported Cisco Recommend Cisco Productivity Source: Pulse Survey, 2010, WPR Work Profile Survey, 2010 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24
  • 25. • Cisco Mobile and Remote employees have voluntary turnover rates 29% to 34% less than those in Traditional arrangements As a result of flexible work practices, Cisco saves an estimated 560 voluntarily terminations each year $75M+ cost savings Source: Cisco voluntary attrition data – Global Results © 2010 Cisco and/or its affiliates. All rights reserved. 25 Cisco Confidential 25
  • 26. Thank you. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 26