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Virtual Office

Government Technology ConferenceMay 29, 2008

Presented byJim Wang, AHCCCS CIOJim.wang@azahcccs.gov

Linda Skinner, AHCCCS Asst Dir DMSLinda.skinner@azahcccs.gov

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What is Virtual Office (VO)?

VO DefinitionFlextime and TelecommuteOrganizational meaning– Culture Change (At all levels)– Metrics based– Employee/employer win-win– Paperless

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Why did we start VO?

Reduce operating costsReduce employee turnoverExpand recruiting opportunitiesGo greenBig boss told us to (Vision)

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Moving from Concept to Implementation

PlanningPolicy & GovernanceVirtual Office ConsiderationsProposals PilotMeasure, Expand, MeasureTechnology and Security

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Planning

Started as a vision from the DirectorPushed vision from the top downPushed proposals from the bottom upGoal of 350 by June 30, 2008Culture change for those engaged in VO & everyone left at the officeBusiness, technical, and policy staff involvedDon’t remember because it went so fast!!

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Policy and Governance

Policy/Guidelines– Takes much longer than one would think– Important to establish firm expectations

Established a Steering Committee– Oversight– Approves proposals and expenditures– Resolve issues– Met weekly/pushed issues through fast– Key staff were engaged from five Divisions

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VO Considerations

Identify potential VO candidatesConsider what tools are needed for the jobBusiness process change opportunitiesHome office environment High speed internet connectivityMetrics

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Proposals

VO from the bottom upContents: – Who is going home (to work)– How do they do their work (flow-wise) from

home– Measurement

Approved by the VO Steering Committee

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Pilot

Choose volunteers (proposal)Make expectations known (no surprises)Train staffUse their equipment in the office firstProvide tools needed (assessment)Prepare to make improvements and work out the kinksHave a support process in place

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Measure, Expand, Measure

Measure, Measure Again!External consultant reviewCannot emphasize measurement enoughAfter pilot, expand for same type of jobs/business areasEmployee Metrics SystemBe prepared for “VO is not for everyone”

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VO Evaluation May 2007

100% of interviewees want VO expandedAHCCCS results are increased productivity, reduced absenteeism and reduced operational costsEmployee results are reduced stress, increased job satisfaction, improved quality of life and they feel respected by leadersState of Arizona results are reduced fuel consumption, reduced pollution and reduced traffic

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Measure, Expand, Measure

Measure, Measure Again!External consultant reviewCannot emphasize measurement enoughAfter pilot, expand for same type of jobs/business areasEmployee Metrics SystemBe prepared for “VO is not for everyone”

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Technology

Leverage existing infrastructureConnectivity– High speed internet– Virtual Private Network

Equipment providedTools– Office productivity– Imaging

Redundant, Geographically Dispersed InfrastructureBusiness Continuity

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Existing IT Infrastructure

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Technology

Leverage existing infrastructureConnectivity– High speed internet– Virtual Private Network

Equipment providedTools– Office productivity– Imaging

Redundant, Geographically Dispersed InfrastructureBusiness Continuity

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Security

VPNNo PrintingTraining (HIPAA P & S)No Local StorageSigned Agreement

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Outcomes

Culture ChangeOperational Savings/CostsExpanded our recruitment poolHoteling spaceIncreased employee retentionEmployee benefitsEnvironmental benefits

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Projected Annual Savings & Cost Avoidance

Closed 3 large facilities: $ 780,000Downsize 4 facilities: $ 300,000Reduce copiers: $ 500,000Eliminate supplies & cars: $ 100,000Reduce FTEs: $1,200,000Total annual savings & cost avoidance: $2,880,000

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Operational Cost Chart

Conservative costs are $2,000/VO workers = $700K for 350 staffHome equipment: Router, Phone, Thin-clientAdditional terminal serversMonthly stipend

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Outcomes

Culture ChangeOperational Savings/CostsExpanded our recruitment poolHotel spaceIncreased employee retentionEmployee benefitsEnvironmental benefits

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AHCCCS Turnover

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Outcomes

Culture ChangeOperational Savings/CostsExpanded our recruitment poolIncreased employee retentionHotel spaceEmployee benefitsEnvironmental benefits

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Annual Environmental Benefits

Reduced fuel use: >250 gal/employeeReduced pollution: >4500 lb/carbon dioxidePublic & environmental savings: >$5200 per employeeOpportunities for people who need to be at homeOpportunities for rural areas of the state

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Lessons Learned

Communication (supervisor and peer) Policy is important– Consider impacts to travel– What happens if you can’t work (system down, no

electricity, ISP down, etc.)Metrics are tricky. Continuous review to make sure goals are really achievedFew VO challenged peopleWe really like VO

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Where do we go from here?

Almost 350 VO workers todayExpand to 450 next fiscal yearObtain feedback from staff and continue to improve (continuous improvement)VO for all levels of management (US)Teaching others about VO/expanding acceptance (share best practices)

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VO Workers

VO Employees

050

100150200

250300350400

Apr-0

6

Jun-

06

Aug-0

6

Oct-

06

Dec-06

Feb-0

7

Apr-0

7

Jun-

07

Aug-0

7

Oct-

07

Dec-07

Feb-0

8

Apr-0

8

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Where do we go from here?

Almost 350 VO workers todayExpand to 450 next fiscal yearObtain feedback from staff and continue to improve (continuous improvement)VO for all levels of management (US)Teaching others about VO/expanding acceptance (share best practices)

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For More Information

This presentation: www.azahcccs.gov/vo

Other references: http://www.teleworkarizona.com/vo/overview.htmhttp://www.teleworkarizona.com/vo/toolkit.htmhttp://www.teleworkarizona.com/vo/implementation.htmhttp://www.teleworkarizona.com/vo/benefits.htm

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QUESTIONS

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