#3 Transforming the Workplace and Strategy at SCAN Health: From

Flexible Work to Corporate Agility Moderator: James M Baker, Deloitte Consulting Panelists: James Ware, The Future of Work…unlimited Diane Coles, SCAN Health Plan

Introductions

2

James M Baker Senior Manager, Strategy & Operations Deloitte Consulting

10 Years Management Consulting experience

Deep experience across CRE, corporate services , & workplace strategy

MBA, Georgetown; MCR, CoreNet; CoreNet Faculty Member

Moderator

Introductions

3

Diane Coles, MCR Director, Workplace Solutions SCAN Health Plan

Over 20 years CRE, FM, and BCP experience

Co-Author Cut it Out: Save for Today Build for Tomorrow

Guest Lecturer, MIT Professional Education Programs

Panelist

Introductions

4

James Ware, PhD Executive Director The Future of Work… unlimited

30+ years experience as a consultant, research, executive educator, author

Co-Author, Corporate Agility

Co-Author, Cut It Out! Save for Today, Build for Tomorrow

Consultant/Advisor to SCAN Health, 2006-2011

Panelist

Now Playing . . .

5

From. . . FLEXIBLE

WORK! FLEXIBLE

FACILITIES! CORPORATE

AGILITY! TO TO

Our Program

6

Preview (Jim)

Feature Act

(Diane)

Q&A (All)

The Reviews

(Jim)

Direct from Long Beach: An AWESOME Story

7

Direct from Long Beach: An AWESOME Story

8

An AWESOME Story

9

On Location

An AWESOME Story

10

On Location The Stage

An AWESOME Story

11

On Location The Stage The Star

The Trailer

12

THE FOLLOWING PREVIEW HAS BEEN APPROVED FOR ALL CRE PROFESSIONAL

AUDIENCES

The Trailer

13

YouTube Video: http://www.youtube.com/watch?v=k1A9AdVd0Ks

The Story Line In Seven Acts

14

Growing Pains

Asking Permission

LearningLessons

Making Friends

Moving to a New

Neighborhood

Selling in a Down

Economy

Reaching Maturity

Act One: Growing Pains

15

Challenges

Act Two: Making Friends

17

Developing the Strategy

HR IT CRE HR IT

CRE

CRE

The AWESOME Project Team Alternate Workplaces Engaging Staff and Office Management Efficiencies

HR IT

Legal

PMO

Marketing Risk

What Did the Future Hold? How Would We Embrace It?

20

Act Three: Asking for Permission

21

- 22 -

The Future of Work ROI Calculator A Decision Support Tool

Scenario One

Scenario Two

Scenario . . .

Scenario . . .

Outputs

Variables: Number of direct workers Workforce profile Revenue per direct worker Annual Productivity improvement (by

workforce type) Workforce turnover HR support staff ratio IT support staff ratio Admin support staff ratio Management span of control Space requirement per worker Occasional workers per touchdown space Team space ratio Common space ratio Facilities cost/square foot Building improvement costs Building operations cost/sq.ft. Office equipment costs Technology equipment costs HR cost per direct workers HR support costs Recruiting/relocation costs Facilities/CRE support cost Admin support cost Management cost

Inputs

© Copyright 2002-2011 by The Future of Work. All rights reserved.

What If? . . .

23

Three Possible Scenarios*

Baseline Scenario Two

Key Assumptions

• “Mobile” Employees

• DW Sharing Ratio

• Total Staff

• Square Feet per Person

• Facilities&FFE Cost/Empl

• IT Support Cost/Empl.

• HR Support Cost/Empl.

• Admin Support Cost/Empl

• CRE Support Cost/Empl.

• Total Support Cost/Empl.

• Conversion Cost/Empl.

• Internal Rate of Return

• 249

• 3.50

• 865

• 164

• $7,847

• $10,109

• $3,585

• $8,033

• $1,118

• $42,435

• --

• --

Scenario One

Scenario Three

• 356

• 3.50

• 838

• 143

• $7,432

• $10,857

• $2,368

• $7,467

• $ 955

• $38,742

• $30,011

• 23.4%

• 399

• 4.37

• 820

• 134

• $6,824

• $10,806

• $2,145

• $6,370

• $ 973

• $37,010

• $29,948

• 40.3%

Selected Outcomes

*For the year 2010, assuming no change in basic business parameters

• 554

• 3.85

• 827

• 97

• $5,860

• $10,862

• $2,314

• $6,832

• $ 963

• $36,623

• $29,808

• 70.1%

Skipping to the Happy Ending

24

Three Dimensions of Success

EFFECTIVENESS – making the most out of people

EFFICIENCY – making the most of the space

EXPRESSION – making the most of the mission

employee attraction/retention department productivity

employee engagement job satisfaction/flexibility

density of occupancy cost of churn

cost of occupancy AWESOME ROI

The Numbers

26

• Provisioning cost

• Provisioning time

• Space requirements

• Return on investment

• Employee productivity

• Employee engagement

38%

12 weeks to 3 days

25%

40%+

18%

No change

Act Four: Learning Lessons

27

Home Office Provisioning

Perspectives: Employees

29

“I would rather find another job than come back in the office.”

“My production went up slightly at home, but my accuracy went way up!”

“We feel we are more of a team now than when we were in the office.”

“We can talk to each other faster than someone in the office – when you call the office you get voicemail.”

“I’m calling my manager asking, ‘Is there anything else you want me to do?’”

Perspectives: Managers

30

“We should have manager training prior to selecting ‘remote workers.’”

“I’m surprised how quickly they separated themselves from the office. They don’t want to come back.”

“The home-based workers are telling me about things that I don’t even know are happening here at SCAN.”

“I’m concerned about keeping the AWESOME employees connected with the company.”

Act Five: Moving to a New Neighborhood

31

The New Space Concept

The Neighborhood – Townhouse – Single Occupant – Collaboration Parks – Phone Booths – Café – Library – Mail Box Etc. / Copy

Center

32 32

New Collaboration Spaces

33

34 -

New Collaboration Spaces

The Call Center Solution

35

Touchdown Spaces

36

The Townhouse

37

The Townhouse

38

Self-Service Space Planning

39

Breaking Down Silos

40

Act Six: Selling a Townhouse in a Down Economy

41

Cost to Reconfigure Space

42

-500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Cos

t

Furniture

Construction

A/E

Electrical

Cabling

Total

Remain As Is

Cost to Reconfigure Space

43

Change to New Concept

Density of Occupation

44

Total Number of Employees Divided by Total Usable Square Feet

Workplace Policy in Pictures

45

Act Six: Reaching Maturity

46

AWESOME Impacts

47

Records Management Mail Business Continuity Planning

Paperless Strategy Customer Outreach

Triple Bottom Line Results

48

18% productivity gain “0” home worker comp

Attract and retain

450,000 fewer miles Reduced GGE

22 tons less paper

$7 million savings 40% ROI

25% less CRE staff

Corporate Agility “A Roadmap for Quick Expansion into New Territories”

49

Workplace Strategy

IT Strategy

Marketing Sales

Workforce Planning

Operations

Business Development

“AWESOME has fundamentally changed the way that SCAN looks at its business model”

Hank Osowski, SVP, Business Development.

Making SCAN More Agile The Organizational Assessment SystemSM

50

© 2002-2010 by Work Design Collaborative, LLC. All rights reserved.

AWESOME Mentions

51

And the Reviews are In. . .

52

Light Many Fires

1

And the Reviews are In. . .

53

Design From Data

2

And the Reviews are In. . .

54

Get Moving &

Stay Moving 3

And the Reviews are In. . .

55

Don’t Be a Lone

Ranger 4

And the Reviews are In. . .

56

5

Measure and Manage Results

And the Reviews are In. . .

57

Live the

Change 6

But Never Forget. . .

58

It’s a Marathon

Q&A Time

59