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  1. DISTRIBUTED WORK PROGRAM SPACE IN PARTNERSHIP WITH MIT/CAMBRIDGE UNIVERSITY

  2. AGENDA

  3. SPACE IN PARTNERSHIP WITH MIT/CAMBRIDGE UNIVERSITY DISTRIBUTED WORK PROGRAM AGENDA DAY 1: Tuesday, October 12, 2004 11:00 Meeting room open; lunch   12:00 AGENDA / INTRODUCTIONS 12:30 SHARED CONTEXT Case studies: HP, Accenture, Sprint, Gartner, and Capital One Group discussion Consistencies and Themes  3:00 FRAMEWORK FOR PROJECT Multiple business profiles to set foundation for group problem solving    3:30 Break Out 1:APPROACH: PLAN THE PLAN Engaging, triggering and embracing a distributed work plan 4:30 Group presentations/discussion 5:30 Close  6:30-7:00 Group Dinner

  4. SPACE IN PARTNERSHIP WITH MIT/CAMBRIDGE UNIVERSITY DISTRIBUTED WORK PROGRAM AGENDA DAY 2: Wednesday, October 13, 2004 8:00 Continental Breakfast  8:30 AGENDA   8:45 Break Out 2: DISTRIBUTION SYSTEMS Systems and links Geographies, Cultures, Functions, Organization 10: 00 Group presentations/discussion  11:00 Break Out 3: TOOL DEVELOPMENT Tools that enable an effective Distributed Work Solution; Real estate, Technology, Human Resources, Customer services, Finance 11:30 Lunch 12:00 Group presentations/discussion All Team Session:SUMMATION Comprehensive strategies and approach 3:15 Logistics discussion for next session 4:00 Adjourn

  5. PARTICIPANTS

  6. PARTICIPANTS

  7. PARTICIPANTS FUTURE PARTICIPANTS

  8. OVERVIEW

  9. 1 OVERVIEW • CHALLENGE • Rapid evolution of multi team, multi place, multi purpose work; ie distributed work • Impacts are enormous in a company; technology, management, process, support, services, identity, finance to enable work   • Solutions are not nor will not be adequately addressed via small, incremental change • Distributed Work Solutions do require a backbone of concepts to enable, unify, link, structure (work and the work process) that is fundamentally different than the pre-distributed work era • Mind shifting is required, that of more designed versus engineered, organic versus linear, understanding, approach and solution creation • Performance is at risk, at the business, group and individual levels

  10. 1 OVERVIEW • PARTICIPANTS • A group of carefully selected colleagues • Responsible as complex problem solvers and contributors • All share a common base;work in and or are in process of building a distributed work program in their respective organizations • FORMAT • 3 intensive workshops to invent the future  • 1 Building Networks Capital One Richmond, VA • 2 Enabling Resources MIT Cambridge, MA • 3 Landing Places tbd tbd

  11. 1 OVERVIEW • PROCESS • Use of real life situations and conditions  • Concentrated creativetime • Sequential problem solving, discovery/issues, concepts/options, solutions/components, logistics/implementation  • Creating an experience and knowledge network and base • GOALS  • Focus collective knowledge • Attack opportunities • Stretch understanding of problems and opportunities • Deliver results of value • Expand knowledge • Strengthen the ability to act

  12. CONTEXT

  13. CONTEXT • Purpose:Defining current state to reach a base of understanding   • Case studies from participants to • Represent the range of experiences of the group • Reflect current base line • Presentation • Dan Johnson: Accenture • Chris Hood: Hewlett Packard • Dan Boutross: Sprint • Dorwin Culver: Gartner • Joel Ratekin: Capital One

  14. CONTEXT • Shared Agenda • Business Context: Problem definition in the respective organizations • Business and functional units engaged and why • Solution(s) • Support Resources engaged: RE, IT, HR, Leadership • Interest, acceptance, cultural impact • Successes • Obstacles • Next steps

  15. KEY ISSUES AND CONSISTENCIES

  16. KEY ISSUES AND CONSISTENCIES • Purpose: Summary discussion on to frame themes and learnings to carry forward, considering at • least: • The Problem • Business Drivers • Process and Approach • Participation • Organizational Impacts and Adoption • Culture Preparedness • Technology • HR Participation • Social Impacts • Finance • Defining Success

  17. WORKING CASE STUDIES

  18. WORKING CASE STUDIES • All companies have: • A portfolio of 50M SF • Population in excess of 25,000 • Global operations • Business language is English • Portfolio of real estate is diverse • Multiple business units, each separate profit centers • Publicly ownership • Competitive pressures, intensified by new competitors • Keen focus on talent retention and attraction • RE reporting to CFO, IT to CIO, and HR to COO • Outsourced non core functions, off shored customer service functions • Procurement group driving toward business partnerships to reduce costs • Conservative profits • Unpredictable futures • Severe limits on capital

  19. TEAM “CONCEPTION”: GETTING STARTED • Company: Major Manufacturer • Company does not have a formal “hoteling” effort • Some folks work from home on an adhoc basis • Managers do not want the bother of managing people that they can’t see or know where they are • Expansion includes new geographies for new customers and to access alternate labor sources • Business unit and local area leaders determine their respective needs and are generally protective of their respective areas • HR is launching a new program to strengthen a one-company vision • Outsourcing has been the most recent focus of business to reduce operating costs • The leadership profile is older, mature with extensive experience in the industry • There is no “steam” to move change forward • The offices are quiet and often near empty • There are apparent opportunities to do things differently and save serious money in operating expenses

  20. TEAM “ADOLESCENT”: READY FOR THE NEXT STEPS, BUT HOW? • Company: Financial Services • The company has experimented with hoteling and realized some success; select IT teams; finance and HR functions work from home • Headquarters has built several “dedicated touch down work areas” in and or adjacent to lobby areas which tend to remain empty • In each country of operations, there is a country headquarters plus support administrative and operations functions • Call center operations have been located in India, Philippines, Guadalajara, Southern US, Beirut, and Warsaw • The pressure to grow the business and grow profitability has intensified and there are increased investments in advertising, new product and service development, and geographic expansion • The pressure on performance is mounting, with apparent increased stress levels among the employees • Everyone has “signed onto the idea” to reduce real estate expenses as a way to reduce operating expenses

  21. TEAM “MID LIFE CRISIS”: WE’RE MOBILE, BUT ARE WE HAPPY? • Company: Professional Services • Everybody shares, everybody reserves, and everyone is mobile • Employee surveys indicate a moral problem • Several new consulting businesses have started and their growth has been rapid • The market perception of the firm is that the creative edge may be missing • Traditional customer base is shrinking due to consolidations and global recession • Energy among team members is low; corporate culture is non-existent • Recent transition to a publicly traded company has escalate the pressure on profitability • Leadership is changing, with senior, tenured staff taking early retirement and new leaders being hired from outside the company • Clients are interested in outsourced relationships in which more and more of the team will move on site for extended periods of time • Other, more profitable assignments are increasingly more complex; requiring global team members more interface with senior leadership of the client team • The care of the client is now much more complicated, with need for relationship management, in addition to the project assignment teams which is eroding profitability • The competition is gaining momentum with a reduced fee structure

  22. DETAILED PROBLEM SITE • Leases are expiring, with opportunities to reduce space abundant. • An immediate opportunity • Major metropolitan area; limited public transportation, road system totally congested • 8 locations in an 80 miles area totaling 175,000 SF • Administrative, sales, customer service, marketing functions • One of the eight properties is owned, a data center, now unused, located in the city, in a fringe neighborhood, old warehouse area, no windows; 50,000 SF • 7 remaining sites are leased; 6 months to 4 years remaining • The lease to expire in 6 months and the one in 1 year are the most expensive and the most desirable, each approximately 15-25,000 SF (plans available) • Each of remaining 5 sites is approximately 15,000 SF

  23. BREAK OUT 1: APPROACH

  24. BREAK OUT 1: APPROACH Work occurs in response to organizational change Problems have become increasingly complex The interjection of technologies alter the way work is done The organization has evolved from local to global World resources are limited Capital is restricted  The Distributed Work Project is a way of to: View the planning for, And the design of The infrastructure That enables effective work In response to current and evolutionary business, people and technology dynamics

  25. BREAK OUT 1: APPROACH • THE CHALLENGE • Plan the Approach, Communication, Financial, Marketing and Implementation Plan • There is a need to stop the continuous piecemeal approach to the issues and view the operations of the business holistically, develop an overall strategy as to how to best provide the infrastructure in support of the working teams. • There is an intuitive view that the integration of RE-IT-HR and Finance in this effort would yield more positive results that any one group could accomplish alone. • The mission – step 1 - is to develop the approach to the development of a distributed work program... plan the plan… and then communicate that plan, gaining the support and commitment of those the plan will serve: • The Audience • Company leadership • Employee representative council  

  26. BREAK OUT 1: APPROACH • The approach should consider and include as appropriate:  • Definition of the problem • The drivers of this effort • The triggers that create a need to do something different • Organization; who needs to be engaged and why • Key Process Steps • Key Deliverables • Schedule • End state – what is it • Measures of success • Hindrances to success • Risks to business in going forward or in not going forward • Communication plan • Real estate potential impacts • Technology/connectivity/communications potential impacts • Working and the work process potential impacts • Management and the potential impacts • Other issues

  27. BREAK OUT 2: DISTRIBUTION SYSTEM

  28. BREAK OUT SESSION 2: DISTRIBUTION SYSTEM • Work flows from one point to the next yielding results of varied success. The Distribution System is a reference to the ability to distribute work across a network or networks. This is the workflow of an organization that results in work output, the quality of which can be linked directly to business success. • The network of a business has generally grown incrementally and as in any organically grown system, there may be times to prune, replant, fertilize and or start fresh. • The objective of this session is to gain an understanding of how work effectively flows along the distribution system, and to consider the key components of the system, and how those components need to link or not to create an overall system that is operating at peak performance in support of work. The session is to consider and define the distribution system considering multiple • Geographies • Cultures • Functions • Organizational/group boundaries

  29. BREAK OUT SESSION 2: DISTRIBUTION SYSTEM • THE CHALLENGE • Develop an Ideal Distribution System • Included in the design should be the following elements • Identification of the issues to assure the success of the Distribution System • Identification of barriers to success • Documentation of the current distribution system • Identification of issues that limit the performance of the current network • Identification of what can be done to improve and enhance the current network performance

  30. BREAK OUT 3: DEVELOPING TOOLS

  31. BREAK OUT SESSION 3: DEVELOPING TOOLS • The implementation of a Distributed Work Program requires targeted tool development. This • session purpose is to focus on actual tool development and to craft solutions and or how to move • to gain solutions. • THE CHALLENGE • Prepare outline specifications for essential tools • Consider the tools of the distributed work project and build the options and concepts for the • operation of those tools; prepare diagrams, and outline specifications for the respective key tool • areas: • Real estate • Technology • Human Resources • Finance/Money • Corporate Services • Other areas

  32. SUMMARY

  33. SUMMARY: ALL GROUP SUMMARY WORK SESSION • Clarifying a robust definition of Distributed Work • Definition of distributed work • Categories of activities that go on within distributed work • Different demands of each category • Engaging in the process of developing a Distributed Work Program • Thinking of work in terms of processes, tasks and communication functions • Strains and potential breakdowns that exist in any work situation • Areas of multiple interfaces • Communication in a distributed environment • Distribution exacerbation of problems

  34. SUMMARY: ALL GROUP SUMMARY WORK SESSION • Foundations and principles in a long lasting Distributed Work Solutions • Essential distribution network • Core of infrastructure • Patterns of work imagined, but not supported • New technologies with implications that have not yet been realized • Beta sites for reference • Good examples and what makes it good • Success definition • Exposure to the new ideas to facilitate further advances

  35. DISTRIBUTED WORK PROGRAM SPACE IN PARTNERSHIP WITH MIT/CAMBRIDGE UNIVERSITY