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Page 1: 111 © 2002, Cisco Systems, Inc. All rights reserved. 5573_06_2002_c1

111© 2002, Cisco Systems, Inc. All rights reserved.5573_06_2002_c1

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2© 2002, Cisco Systems, Inc. All rights reserved.5573_06_2002_c1

The Cisco Telework Story

Workforce Optimization

May 2001

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Why Teleworking? Why Now?

• Drivers

New technology

New culture

Tight labor market

Resource prioritization

Government regulation

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Factoids

• 2000:

U.S. 24 million teleworkers

Europe 10 million teleworkers (Source: ITAC)

Asia-Pac 3.3 million (2/3 in Japan) (Source: JALA International)

5.6% projected annual growth rate for teleworkers

• Teleworker “churn” continues to be high, with one fifth teleworking for under a year (Source: IDC)

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Cisco Story

• Challenge

• Solution

• Today

• Best practices

• Next steps

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Challenge

• 1992

Product development required the hiring of more and more engineers

Labor market shortage

Remote location workers

Rising bay area real estate costs

Need to scale workplace infrastructure

*Maintain always-on customer satisfaction and coverage

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Solution

• 1993

Cisco Systems becomes one of the first companies in Silicon Valley to develop telecommuting guidelines and agreement for both employees and managers

How did Cisco do this?

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Steps to Success

• 2002

Engineers served as pilot group

HR drove collaborative effort (Facilities, IT, Finance)

Guidelines addressed individual variabilities:Manager discretion

Partnership with IT critical for security and standardization

• Measures of success

Adoption rate

Ease of use

Output focus

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Today

• Close to 100% of all US Cisco employees have some form of secure remote access to the home

Day Extender—95% of employees

Part-Time—85% of employees

Full-Time—300 employees

• Mutual benefits

Increases productivity 20–40%

Improves job satisfaction

Improves long-term commitment

ROI 300%

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Remote Access Options

1. User Managed Service (VPN)

2. Vendor Managed Service

Cisco Managed Service* (ISDN, Dial)

• Policy: Company pays for only one broadband service per employee

• Emphasis on broadband

• Global program

*By Exception

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Best Practices: Company-Wide Deployment

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Cisco Culture

Quality TeamQuality TeamNo Technology

Religion(Open Standards)

No Technology Religion

(Open Standards)Stretch GoalsStretch Goals

EmpowermentEmpowerment Trust/Fair/IntegrityTrust/Fair/IntegrityTeamworkTeamwork

FrugalityFrugality MarketTransitions

MarketTransitions

DriveChangeDrive

ChangeOpen

CommunicationOpen

Communication

Customer SuccessCustomer Success

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Technology

Business Process CultureCulture

Teleworking SuccessTeleworking Success

Technology Standards

• All culture and business processes embrace technology

• Cisco provides all its employees with e-mail, configured laptops, cellular phone service and pagers

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Remote Access for All

• Available to all

• Straightforward, automated process

• Cisco provides employees a one-stop shop: Remote Access Services Dashboard

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Software Maintenance

• Always-on delivery of both standard and non-standard apps

• Push Technology

• Straightforward, automated process

• Cisco’s Softracker: Anytime, anywhere access to software downloads and upgrades

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Cross-Functional Collaboration

• Top-down commitment

• Team effort from HR, IT, facilities and finance

• Cisco 1995: New World Workplace

• “Work Anywhere, Anytime”

Scale growth

Productive work space

Technology

Cost-effective solutions

Innovation

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Guidelines, not Rules

• Scalable, official employee-sponsored program

• Posted and easily available to all

• Technology standards in place—Focus shift to best work practices

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Training

• Remote Work Guidelines available to managers and employees

• Workplace Specialists work with both parties to develop self-audits

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Virtual Team Guidelines

• Number of V-teams increasing

• Collaboration through advanced technologies

Focus on building trust

Make extra efforts to ask questions and listen carefully

Define and agree on the decision-making process

Accelerate collaboration

Communicate, communicate, communicate

Invest time

Use technology to facilitate but not to replace human interaction

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Positive Environmental Impact

• Decreases air and noise pollution, energy consumption

• 1994 Cisco was a leading participant in the Smart Valley Telecommuting Initiative:

Accelerate the deployment of telecommuting throughout Silicon Valley as a standard business practice and enhance the competitiveness and quality of life

• *Reduced air pollution and traffic congestion

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Best PracticesSummary

• Leadership sets and communicates vision

• Manager and employee guidelines are widely available, straightforward and enforced

• Technologies and support services are methodically assessed

• Facilities adapt to new world workplace

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Next Steps

• Use Cisco’s ROI tool to help understand your current telework program and how you can realize additional cost savings

• Evaluate your total cost of ownership and the benefits of outsourcing your telework deployment

• Assess your telework remote access bandwidth needs to understand the advantages of rolling out a broadband solution

• Engage a Cisco ecosystem partner to design a formal telework program that’s right for your company

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Add-Ins

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Teleworking Options

TeleworkerSatellite

Wireless

DSLCable

DSL Cable Satellite

and Wireless

Dumb CPE

Internet or SP Network

DSL, Cable, ISDN, FrameRelay Router with Point to Point

or VPN Access

Dual Ethernet Router with

Security Software

PIX FW or VPN HW

Client

VPN Client Software

VPN Access Concentrator

PIX Firewall with VPN Termination

Router/VPN Tunnel Server

Corporate Headquarters

ISDN or Frame Relay Network

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Home Office Technologies and Products

PC LaptopPC Laptop

DSL Router (Private Line)

Cable Router and VPN

DSL/Cable and VPN Client

DSL Router and VPN

DSL/Cable and VPN/Security Appliance

ISDN Router

DSL/Cable and Dual Ethernet Router

Video Conferencing Video Conferencing

IP TelephonyIP Telephony

Collaboration Software Collaboration Software

Wireless LAN Wireless LAN

Office EquipmentOffice Equipment

Office SupplyServicesOffice SupplyServices

PC PeripheralsPC Peripherals

WAN ACCESS TECHNOLOGIES

Home Office Equipment,

Software and Services

Home Office Equipment,

Software and Services

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Benefits of Cisco Router-Based Teleworking Solutions

• One-box solution

• Broadband access (DSL or Cable)

• Business class security with Cisco IOS software (stateful inspection firewall and IPSec 3DES)

• QoS features for voice, video, and application aware networking

• Simplified management:One operating system

No need to configure client software

Remote troubleshooting

Remote security policy updates

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Cisco Vital Adjuncts

Policies

Training

Technology

Evaluations

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Quality of Life

• Teleworkers have higher job satisfaction

• Work/life balance

• Reinforces culture of empowerment—More control over schedule

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Employee Testimonials

“With my laptop and DSL, my PC is always on, so when I get up, I can immediately see if there are any “fires” that need to be put out right away. I can do that without having to waste commute time. I put the fire out and then walk to my kitchen and grab a cup of coffee…The largest benefit to Cisco, in my opinion, for teleworking is increased productivity (Cisco is getting more from me than before, due to my increased availability). The biggest benefit for me is that I can spend more time with my children. I used to be a Big 5 consultant traveling 5–6 days a week. I have never been happier because I now am able to become involved with my kids’ lives, and especially (which is my favorite time of all) read to my children and put them to bed every night.”

Bob Frazier,Vertical IBSG Manager, Manufacturing—Full-Time Teleworker, 1 Year

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Employee Testimonials

“My work-from-home arrangement began in 1994 as Corporate Marketing’s first telecommuter. That was as a casual teleworker of 1–2 days a week…Since then I’ve moved on to full-time. The full-time teleworker must be a completely loyal and dedicated professional and have a desire to “make better” an already great situation… My present, and long-standing office technology consists of my laptop and docking station. I have personally purchased my own color and b/w printers, fax, external storage drive, and scanner. These I purchased, including my office furniture, without hesitation or asking for assistance from my BU. I feel it a privilege to telework and am willing to go that extra distance in support of my teleworking arrangement.”

Gary Stewart, Technical Illustrator/Corporate Icons Corporate Publications—Full-Time Teleworker, 3 Years

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Employee Testimonials

“Practically speaking, I live in two countries—France and the UK. I go from France to the UK pretty much every week, as part of the flexible arrangement I worked out with Cisco during the recruiting process.  The net result of this is that I spend, on average three-four days per week working for Cisco in the UK, and one-two days per week working for Cisco in France. As it turns out, Cisco has an office in Sophia Antipolis, which is 13km from my house in France.  In the UK, Cisco has an office in Stockley Park, which is right beside Heathrow airport. Cisco has another office right smack in the centre of the bank district in London, which is only three tube stops from my flat in Covent Garden.

The net result of all this is that I have the flexibility to work from five different places if I want:

1) The Cisco office in Stockley Park2) The Cisco office in London City3) My flat in Covent Garden4) The Cisco office in Sophia Antipolis5) My house in Cannes

This is worth gold to me. I think it is safe to say that, if I didn't have this type of flexibility, I wouldn't have accepted the job with Cisco.”

Robert NowakIBSG PS Project Manager UK—Multi-Zone Part-Time Teleworker, 3 Months

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IDC Study

• May 2001

The big picture

Most teleworking arrangements are informal, with formalization of policies varying considerably by industry

Most companies have a culture that supports teleworking

Level of centralized management for teleworking varies by industry

Teleworking expected to become more widespread

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IDC Study

• Conclusions

Teleworking is here to stay

Corporations continue to support telework because they recognize the importance of offering flexible working styles for valuable employees who need to balance work/life issues

Typical comment: “I think employees want to balance work and family, and to minimize commuting. I think employees are more productive when they telework…Teleworking also reinforces employees’ commitment to the organization”

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Future

• IDC predicts day extenders to increase 4.8% from 25 million (1999) to 31.6 million households by 2004

Cisco’s part

Voice over IP

Video collaboration

Mobile wireless

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