This document discusses the shifting nature of work away from traditional offices to more distributed environments. It notes that currently 35% of corporate work is done at home and 30% is done in third places outside of traditional offices. There are business benefits to distributed work such as reduced real estate and support costs. However, distributed work also faces challenges such as distractions and lack of professional environments. The document proposes local workspace centers as a solution that provide professional environments for distributed workers near their homes with amenities and services catering to mobile work needs. Case studies and costs analyses suggest both individual workers and employers can realize savings through the use of such distributed workspaces.

1. The Facilities Frontier
Glenn Dirks, Teletrips February 24, 2010
Jim Ware, Work Design Collaborative Juniper Networks
Sunnyvale
Barbara Sprenger, Satellite Work Centers
Diane Coles, SCAN Health Plan

2. Two-Thirds of Knowledge Work Today Is Done
Outside Organizational Facilities
Corporate In Between – At Home—
Facilities–35% 30% 35%
“First Place” “Third Place” “Second Place”
© Copyright 2010 by The Work Design Collaborative. All rights reserved
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3. The Business Case for Distributed Work
Support Cost Per Worker*
$30,000
HR/Admin
$25,000
IT
$20,000
CRE/Facilities
$15,000
$10,000
$5,000
$- Traditio
nal Off
Environ ice 80% of Wo
Hypothetical data, calculated using ment rkforce
Flexible/Mo
the WDC ROI Calculator bile
© Copyright 2010 by The Work Design Collaborative. All rights reserved
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4. Shifting to a Third Place for Workforce Support*
Traditional Office Third Place
Environment Costs
HR/Admin
$30,000
IT
$25,000
CRE/Facilities
$20,000
$15,000
$10,000
$5,000
$-
Source: WDC proprietary financial models
© Copyright 2010 by The Work Design Collaborative. All rights reserved -3-

5. A New Kind of Workplace is Emerging
We call it a “Business Community Center™”
© Copyright 2010 by The Work Design Collaborative. All rights reserved
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6. A Case Example
Prescott, Arizona
Publicly Advanced
Funded Video “Concierge”
Conferencing Services
Focused on
Workforce
Development Aimed at
Entrepreneurs
© Copyright 2010 by The Work Design Collaborative. All rights reserved
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7. The Prescott BCC
Important Lessons
Membership
20% People Need
Resources Word of
30%
Mouth Works
50 %
Micro Businesses Offer a Variety It Can Become
of Spaces Self-Sustaining
Corporate Employees
Self-Employed
© Copyright 2010 by The Work Design Collaborative. All rights reserved -6-

8. 1

9. Desk Phone! Post!
Cell Phone! Email!
Smart Phone! IM!
Management ! Remote !
Work! Price of Oil!
Acceptance!
Laptop! VPN @ !
15Mbs/sec!
PC! Broadband!
Mainframe! Carbon !
Savings! Dial-Up!

10. The Challenges
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11. 2006 Telework Survey
42% prefer working near home, not in home
44% DistracDons
43% Business‐Quality Equip
29% Professional Environment
21% High‐speed Broadband
16% Onsite tech support
11%
Keep home/work separate
11%
IsolaDon
0% 10% 20% 30% 40% 50%
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12. The SoluDon:
Local Workspace Centers
• Small, neighborhood‐based
• Near commuters’ homes
• Cater to use of tech tools
• 24/7 access, tracking
• Staffed
• Flexible space
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13. The Satellite
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14. What’s Important
• AestheDcs – comfortable workspace vital!
• LocaDon – walk to coffee, lunch & drinks (and shops and parks
and gym)
• Instant ready‐to‐work
• Membership‐based ‐‐ Needs vary, plans vary
• “Hoteling” ‐‐ Flexible scheduling, flexible workspaces
• 24/7 access
• Balance of automaDon and personal service
• Community center concept
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15. Costs and Savings
Per Per
Commuter Month Employer Month
Satellite Membership, 3d/wk $285 Satellite Membership, 3d/wk $285
Save 25 miles each way, 3 x/ ($330) Savings: 51%*
week @ $.55/mi. HR/Admin
Office space tax savings ($97) Facility space costs
@ 34% fed and state Office equip purch & mtce
TransportaDon tax savings ($75)
(to corporate HQ)
Total MONTHLY SAVINGS ($217) *from Future of Work
aker 7.5% of AGI
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16. Enhanced Quality
Community/ of
Local Business Life
Reduced
Increased
Carbon
Productivity
Footprint
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17.  The saddest aspect of life right now is that
science gathers knowledge faster than
society gathers wisdom…Isaac Asimov
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18. Aligning Strategy with Real
Estate Challenges
■ Real Estate Challenges
– Changes in federal regulations
– Rapid growth
– Expansion
– Attracting and retaining talent
– Corporate facility at some risk
– Space did not meet 2012 vision and
culture
– High workforce support costs
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19. Redefining Our Workplace
In 2007 New Direction
 Enabling face-to-face  More distributed/virtual workforce
management  Less space but better space, and
 Inefficient space more effectively used
 Traditional “grid” workplace  More exciting, creative space that
design fosters teamwork & innovatio (NO
 Hierarchical SILOS)
 Space, technology, and services  Less hierarchy
were silos  Integrated solutions of space,
 Focus on place technology, and services
 Cost focus  Focus on work
 No attention to Green  Cost focus – with benchmarking
 Go Green
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20. Embracing the Future of Work
■ Charter to re-align the real estate
portfolio to reduce cost and handle
growth
■ Moved several hundred employees
to flexible work
■ In 2008 went from 185 sf/person to
155 sf/person at corporate
headquarters
■ Achieving an ROI of 40%
■ Redesigned the workplace planning
process, saving 38% in cost and
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time

21. The New Space Concept
■ The Neighborhood
– Townhouse
– Single Occupant
– Phone Booth
– Café
– Library
– Mail Box Etc. / Copy
Center
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22. New Collaboration Spaces
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23. New Collaboration Spaces
6

24. The Townhouse
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25. The Townhouse
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26. The Call Center Solution
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27. Cost to Reconfigure Space
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28. Cost to Reconfigure Space
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29. Making SCAN more Flexible/Agile
12 © Copyright 2002-2010 Work Design Collaborative LLC. All rights reserved.

30. The Youtube Video
http://www.youtube.com/watch?v=k1A9AdVd0Ks
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31. For Further Information
Diane Coles, MCR Barbara Sprenger
Director, Workplace Services http://www.thesatelliteinc.com
SCAN Health bsprenger@thesatelliteinc.com
dcoles@scanhealthplan.com +1 831 222 2100 voice
+1 562 989 8327 voice +1 831 345 6529
Glenn Dirks Dr. James Ware
http://www.teletrips.com http://www.thefutureofwork.net
gdirks@teletrips.com jim@thefutureofwork.net
+1 650 948 5899 voice +1 510 558 1434 voice
+1 650 867 4242 mobile +1 510 206 8147 mobile
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