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February 19, 2008. Virtual Office Toolkit Training. A Collaborative Effort The Office of Efficiency Review, Governor Janet Napolitano The Arizona Health Care Cost Containment System (AHCCCS) The Arizona Department of Economic Security (ADES) The Arizona Department of Administration (ADOA).

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Virtual Office Toolkit Training

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    1. February 19, 2008 Virtual Office Toolkit Training A Collaborative Effort The Office of Efficiency Review, Governor Janet Napolitano The Arizona Health Care Cost Containment System (AHCCCS) The Arizona Department of Economic Security (ADES) The Arizona Department of Administration (ADOA)

    2. Virtual Office Toolkit Training Agenda ItemPresenter Introduction of Virtual Office Diane Shook, AHCCCS Virtual Office Toolkit Overview Melissa Brickey, ER Implementation Steps Diane Shook, AHCCCS Testimonial Linda Skinner, AHCCCS Resources Melissa Brickey, ER

    3. Introduction of Virtual Office Diane Shook on behalf of Tony Rodgers, Director The Arizona Health Care Cost Containment System (AHCCCS)

    4. Introduction of Virtual Office Virtual Office Concept Virtual Office (VO) is a telecommunication and electronically distributed work environment that enables employees to be fully functional by connecting them to their work via a secure web communication infrastructure that allows the work process to be performed in home or at a remote worksite, which ever is the most advantageous setting.

    5. Introduction of Virtual Office, Cont… Questions Facing AHCCCS Management • How can we address increasing workloads with reduced resources? • How can we improve retention of our “knowledge workers” and key contributors? • How can we make our job more attractive and competitive? • How can we reduce the daily stressors of the workplace and improve employee work life balance?

    6. Introduction of Virtual Office, Cont… We Must Think Differently About Employee Workspace • Recruiting and retaining generation Y and generation X (Millennials are coming into the workforce). • Multi-generational workforce is creating conflicting work cultures and work expectations. • Private sector is increasingly offering greater work flexibility. • Work life balance to generation X and Y is more than a “buzz word” it is an expectation. • Technology has enabled employers to create “virtual office or workspace” as more than just a telecommuting day or flex work schedule.

    7. Introduction of Virtual Office, Cont… • An Aging Workforce: The average age of State employees is 45.7 years and half of the larger state agencies are expected to have over 25% of their active workforce eligible to retire in the next five years. • Absenteeism and Turnover: The State of Arizona experiences higher rates of absenteeism and turnover than the private sector and other state governments. The State’s turnover rate in SFY 2007 was over 17% and the cost is estimated at $57.7 million. • Compensation: State operations and programs continue to expand within the context of budget constraints that limit full-time positions and salaries and challenge recruitment and retention efforts. • Changes in Job Complexity: As technology replaces routine work, a shift toward higher-skilled “knowledge worker” jobs is occurring. The Workforce Issue The population of the State of Arizona continues to grow at record-breaking rates, which will continue to contribute to significant growth of the pressures on State operations to do “more with less.” Some key issues related to the State’s workforce include:

    8. Introduction of Virtual Office, Cont… • Savings resulting from: • No Gasoline expenses related to commuting • No unnecessary wear and tear on personal vehicles • No need for costly business attire • No need for after school care for children • No unnecessary time tax • Other benefits: • Increased morale due to trust, flexibility, comfort, less stress and improved work life balance

    9. Introduction of Virtual Office, Cont… Previous Goal Achieved In May 2007, AHCCCS achieved the goal of having 160 virtual office workers, eight months earlier than the projected date of December 2007. AHCCCS now has over 300 virtual office workers, which is more than 24% of its workforce.

    10. Initial Pilots Introduction of Virtual Office, Cont… Setting the Bar Higher AHCCCS plans to have approximately 350 virtual office workers by June 2008, over 27% of its total workforce.

    11. Virtual OfficeToolkit Overview Melissa Brickey, Deputy Director The Office of Efficiency Review, Governor Janet Napolitano

    12. Virtual Office Toolkit Overview The Virtual Office Toolkit was designed to provide all state agencies information about virtual office concepts and to provide the tools necessary to implement it in a flexible way, without each agency having to “reinvent the wheel.” The Virtual Office Toolkit was prepared by the Office of Efficiency Review, Governor Janet Napolitano, in conjunction AHCCCS, ADES, and ADOA.

    13. Virtual Office Toolkit Overview Summary of Contents Virtual Office Overview Virtual Office Policy Analysis for the State of Arizona Virtual Office Implementation Implementation Checklist Other Tools for Implementation Business Case Example Virtual Office Policy Template The Toolkit is available on Arizona’s Telework Website at

    14. Implementation Steps Diane Shook, Assistant Director The Arizona Health Care Cost Containment System (AHCCCS) Human Resources and Development

    15. Implementation Steps • Determine Management Readiness • Assess Technology Requirements • Complete an Operational Review • Develop Metrics • Consider the Educational Component • Create Pilot Proposals • Implement, Evaluate, and Adjust Page 13 of the Toolkit includes an Implementation Checklist for agencies to use as they move through the Implementation Steps.

    16. Implementation Steps, Cont… Implementation Checklist (Page 13)

    17. Implementation Steps, Cont… • Determine Management Readiness • Workplace Flexibility (Page 14) - What level of flexibility does my agency currently have? • Organizational Readiness Questionnaire (Page 15) • This questionnaire prompts thinking about multiple topic areas including workflow, policy, communication, etc.

    18. Implementation Steps, Cont… Assess Technology Requirements (Page 17)

    19. Implementation Steps, Cont… • Complete an Operational Review • Review Agency Policies • Job Analysis Checklist (Page 20) What jobs are better suited to become virtual? • Contact with the Public • Office Hours • Nature of Duties • Productivity Measurements • Equipment to Perform Work • Sensitive Documents

    20. Implementation Steps, Cont… • Develop Metrics • Standard Measurements Guide (Page 21) ADOA’s Telework Program Office highlighted the following four standard measurements that should be addressed by each agency that implements virtual office: • Turnover • Sick Leave • Productivity • Space Reductions • Other measurements include reductions in pollution, fuel cost savings, and commute time savings.

    21. Implementation Steps, Cont… • Educational Component • The Arizona Government University (AZGU) is working to ensure that E-Learning is available for all mandatory classes and is willing to work with agencies to establish agency specific on-line training classes. • AHCCCS has developed training materials for VO workers. - VO Supervisor and Worker Training Materials (Page 24)

    22. Implementation Steps, Cont… • Pilot Proposal • Each position or group of positions should be proposed as a pilot before full implementation to ensure the possibility of success. A proposal will help address any challenges or needs that may need to be worked out before hand and create a formal decision process for executive staff to approve Virtual Office Efforts. • AHCCCS Pilot Proposal Example • Pilot Action Plan Guidelines

    23. Implementation Steps, Cont… • Implement, Evaluate, and Adjust • Implement the VO pilots approved by management. • Survey VO participants and non-participants - Each position transitioned into Virtual Office should be evaluated after an adequate amount of time (1-3 months) as to the effectiveness of making the transition permanent. • Make Adjustments (i.e., technological changes, additional training for employees, new measurements, etc.), if needed, can be made during this evaluation.

    24. Virtual Office Testimonial Linda Skinner, Assistant Director The Arizona Health Care Cost Containment System (AHCCCS) Division of Member Services

    25. Testimonial • Initially Managers and Supervisors are Hesitant to Take on VO • Switching from visual performance cues to managing through data. • Some employees don’t see their work as measurable. It is! • Developing electronic communication skills.

    26. Testimonial, Cont…

    27. Testimonial, Cont… Tips for Implementation • Create a Steering Committee with motivated executive level managers to meet regularly for the purposes of controlling all aspects. • Start with jobs that have easily identifiable productivity measurements. • Consider the training and travel components. • Validate benefits with an external review. • Establish policies and procedures for all aspects.

    28. Where to Find the Virtual Office Toolkit The Virtual Office Toolkit is located on Arizona’s Telework Website at, along with additional information on VO and telecommuting.

    29. Visit Virtual Office Contacts Diane Shook, Assistant Director Human Resources, AHCCCS Telephone Number: (602) 417-4457 E-Mail Address: Kayelen Rolfe, Travel Reduction Programs Manager, ADOA Telephone Number: (602) 542-3638 E-Mail Address: Melissa Brickey, Deputy Director, Efficiency Review Telephone Number: (602) 542-7564 E-Mail Address:

    30. Thank you for your participation