Virtual Office Toolkit Training

A Collaborative EffortThe Office of Efficiency Review, Governor Janet Napolitano

The Arizona Health Care Cost Containment System (AHCCCS)

The Arizona Department of Economic Security (ADES)

The Arizona Department of Administration (ADOA)

February 19, 2008

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Virtual Office Toolkit Training

Agenda Item Presenter

Introduction of Virtual Office Diane Shook, AHCCCS

Virtual Office Toolkit Overview Melissa Brickey, ER

Implementation Steps Diane Shook, AHCCCS

Testimonial Linda Skinner, AHCCCS

Resources Melissa Brickey, ER

Introduction of Virtual Office

Diane Shook on behalf of Tony Rodgers, DirectorThe Arizona Health Care Cost Containment System (AHCCCS)

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Introduction of Virtual Office

Virtual Office Concept

Virtual Office (VO) is a telecommunication and

electronically distributed work environment that enables

employees to be fully functional by connecting them to

their work via a secure web communication

infrastructure that allows the work process to be

performed in home or at a remote worksite, which ever

is the most advantageous setting.

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Questions Facing AHCCCS Management How can we address increasing workloads with reduced

resources?

How can we improve retention of our “knowledge workers” and key contributors?

How can we make our job more attractive and competitive?

How can we reduce the daily stressors of the workplace and improve employee work life balance?

Introduction of Virtual Office, Cont…

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We Must Think Differently About Employee Workspace Recruiting and retaining generation Y and generation X

(Millennials are coming into the workforce). Multi-generational workforce is creating conflicting work cultures

and work expectations. Private sector is increasingly offering greater work flexibility. Work life balance to generation X and Y is more than a “buzz

word” it is an expectation. Technology has enabled employers to create “virtual office or

workspace” as more than just a telecommuting day or flex work schedule.

Introduction of Virtual Office, Cont…

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Introduction of Virtual Office, Cont…

An Aging Workforce: The average age of State employees is 45.7 years and half of the larger state agencies are expected to have over 25% of their active workforce eligible to retire in the next five years.

Absenteeism and Turnover: The State of Arizona experiences higher rates of absenteeism and turnover than the private sector and other state governments. The State’s turnover rate in SFY 2007 was over 17% and the cost is estimated at $57.7 million.

Compensation: State operations and programs continue to expand within the context of budget constraints that limit full-time positions and salaries and challenge recruitment and retention efforts.

Changes in Job Complexity: As technology replaces routine work, a shift toward higher-skilled “knowledge worker” jobs is occurring.

The Workforce IssueThe population of the State of Arizona continues to grow at record-breaking rates, which will continue to contribute to significant growth of the pressures on State operations to do “more with less.” Some key issues related to the State’s workforce include:

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Introduction of Virtual Office, Cont…

Savings resulting from: No Gasoline expenses related to commuting No unnecessary wear and tear on personal vehicles No need for costly business attire No need for after school care for children No unnecessary time tax

Other benefits: Increased morale due to trust, flexibility, comfort, less stress and

improved work life balance

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Previous Goal AchievedIn May 2007, AHCCCS achieved the goal of having 160 virtual office workers, eight months earlier than the projected date of December 2007.

Introduction of Virtual Office, Cont…

AHCCCS now has over 300 virtual office workers, which is more than 24% of its workforce.

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Setting the Bar HigherAHCCCS plans to have approximately 350 virtual office workers by June 2008, over 27% of its total workforce.

Introduction of Virtual Office, Cont…

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194

350

050

100150200250300350

FY 2006 FY 2007 FY 2008

Initial Pilots

Virtual OfficeToolkit Overview

Melissa Brickey, Deputy DirectorThe Office of Efficiency Review, Governor Janet Napolitano

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Virtual Office Toolkit Overview

The Virtual Office Toolkit was designed to provide all state agencies information about virtual office concepts and to provide the tools necessary to implement it in a flexible way, without each

agency having to “reinvent the wheel.”

The Virtual Office Toolkit was prepared by the Office of Efficiency Review, Governor Janet Napolitano, in

conjunction AHCCCS, ADES, and ADOA.

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Virtual Office Toolkit OverviewSummary of Contents

Virtual Office Overview

Virtual Office Policy Analysis for the State of Arizona

Virtual Office ImplementationImplementation Checklist

Other Tools for ImplementationBusiness Case Example Virtual Office Policy Template

The Toolkit is available on Arizona’s Telework Website at www.teleworkarizona.com.

Implementation Steps

Diane Shook, Assistant DirectorThe Arizona Health Care Cost Containment System (AHCCCS)

Human Resources and Development

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Implementation Steps

1. Determine Management Readiness

2. Assess Technology Requirements

3. Complete an Operational Review

4. Develop Metrics

5. Consider the Educational Component

6. Create Pilot Proposals

7. Implement, Evaluate, and Adjust

Page 13 of the Toolkit includes an Implementation Checklist for agencies to use as they move through the Implementation Steps.

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Implementation Steps, Cont…

STEP ACTION DESCRIPTIONSUPPORTING TOOLKIT ITEMS

1 Determine Management Readiness

Managers need to be introduced to and educated on managing employees in a Virtual environment, which is contrary to “line-of-sight” management. It is beneficial to pilot Virtual Office beginning with an innovative manager that is devoted to the effort.

Workplace Flexibility Matrix; Organizational Readiness Questionnaire; Business Case Example.

2 Assess Technology Requirements

Agencies need to assess systems to determine the ability to allow employees access to their work and their customers.

Technology Gap Analysis.

3 Complete an Operational Review

Workflow processes should be assessed along with an analysis of positions or groups of positions to identify Virtual Office opportunities.

Virtual Office Policy Template; Job Analysis Checklist; User Affirmation Statement Form.

4 Develop Metrics Each position transitioned to Virtual Office should have standard metrics. Metrics will allow agencies to measure productivity, quality, retention, etc.

Standard Measurements Guide.

5 Consider the Educational Component

Mandatory training for most State employees can be done on-line rather than requiring travel. The Arizona Government University (AZGU) is working to ensure that E-Learning is available for all mandatory classes and will work with agencies to establish agency specific on-line training classes.

VO Supervisor and Worker Training Materials.

6 Create Pilot Proposals Each position or group of positions should be proposed as a pilot before full implementation to ensure the possibility of success. A proposal will help address any challenges or needs that may need to be worked out before hand and create a formal decision process for executive staff to approve Virtual Office Efforts.

Virtual Office Proposal example; Pilot Action Plan Example.

7 Implement, Evaluate, and Adjust

Each position transitioned into Virtual Office should be evaluated after an adequate amount of time (approximately one to three months) to the effectiveness of making the transition permanent. Adjustments (i.e., technological changes, additional training for employees, new measurements, etc.), if needed, can be made during this evaluation.

End Surveys for Virtual Office Participants and Non-Participants.

Implementation Checklist (Page 13)

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Implementation Steps, Cont…Determine Management Readiness Workplace Flexibility (Page 14)

- What level of flexibility does my agency currently have?

Organizational Readiness Questionnaire (Page 15)

- This questionnaire prompts thinking about multiple topic areas including workflow, policy, communication, etc.

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Implementation Steps, Cont…Assess Technology Requirements (Page 17)

ITEM DESCRIPTION

Standardization Standardize the end user VO hardware configuration and define all costs including ongoing support costs.

High Speed Internet VO participant’s connection should have upload speeds of at least 512Kbps and download speeds of at least 7-10 Mbps.

Agency Server Configuration

Multiple dual-core servers should be used to equally load-balance connections and preferably be geographically dispersed.

Agency VPN A secure VPN tunnel should be used to connect the virtual office worker’s router to the Agency’s network.

Agency Backup/Storage All data should be stored on the agency’s defined storage devices and backed up using the agency’s standard backup solution.

Agency Application considerations

All applications used by virtual office workers should be accessed on the server and not the client. Need baseline performance of applications to verify no adverse performance in a server environment.

Security Security, no printing, local storage or copying to local storage should be allowed.

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Implementation Steps, Cont…Complete an Operational Review Review Agency Policies Job Analysis Checklist (Page 20)

What jobs are better suited to become virtual?-Contact with the Public-Office Hours-Nature of Duties-Productivity Measurements-Equipment to Perform Work-Sensitive Documents

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Implementation Steps, Cont…Develop Metrics Standard Measurements Guide (Page 21)

ADOA’s Telework Program Office highlighted the following four standard measurements that should be addressed by each agency that implements virtual office:

- Turnover- Sick Leave- Productivity - Space Reductions

Other measurements include reductions in pollution, fuel cost savings, and commute time savings.

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Implementation Steps, Cont…Educational Component

The Arizona Government University (AZGU) is working to ensure that E-Learning is available for all mandatory classes and is willing to work with agencies to establish agency specific on-line training classes.

AHCCCS has developed training materials for VO workers.

- VO Supervisor and Worker Training Materials (Page 24)

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Implementation Steps, Cont…Pilot ProposalEach position or group of positions should be proposed as a pilot before full implementation to ensure the possibility of success. A proposal will help address any challenges or needs that may need to be worked out before hand and create a formal decision process for executive staff to approve Virtual Office Efforts.

AHCCCS Pilot Proposal Example

Pilot Action Plan Guidelines

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Implementation Steps, Cont…Implement, Evaluate, and Adjust

Implement the VO pilots approved by management.

Survey VO participants and non-participants - Each position transitioned into Virtual Office should be evaluated after an adequate amount of time (1-3 months) as to the effectiveness of making the transition permanent.

Make Adjustments (i.e., technological changes, additional training for employees, new measurements, etc.), if needed, can be made during this evaluation.

Virtual Office Testimonial

Linda Skinner, Assistant DirectorThe Arizona Health Care Cost Containment System (AHCCCS)

Division of Member Services

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TestimonialInitially Managers and Supervisors are Hesitant to Take on VO

Switching from visual performance cues to managing through data.

Some employees don’t see their work as measurable. It is!

Developing electronic communication skills.

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Testimonial, Cont…AHCCCS Annual Turnover

12%

15%

18%

21%

24%

27%

30%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2006

2007

Virtual Office Terms compared to Non VO TermsSince VO Implementation 9/06

0

5

10

15

20

25

30

Sep-06

Oct-06

Nov-06

Dec-06

Jan-07

Feb-07

Mar-07

Apr-07

May-07

Jun-07

Jul-07

Aug-07

Sep-07

Oct-07

Nov-07

Dec-07

Non VO

VO Terms

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Testimonial, Cont…

Tips for Implementation Create a Steering Committee with motivated executive level

managers to meet regularly for the purposes of controlling all aspects.

Start with jobs that have easily identifiable productivity measurements.

Consider the training and travel components. Validate benefits with an external review. Establish policies and procedures for all aspects.

Where to Find the Virtual Office

Toolkit

The Virtual Office Toolkit is located on Arizona’s Telework Website at

www.teleworkarizona.com, along with additional information on VO and telecommuting.

Virtual Office Contacts

Melissa Brickey, Deputy Director, Efficiency ReviewTelephone Number: (602) 542-7564E-Mail Address: mbrickey@az.gov

Diane Shook, Assistant Director Human Resources, AHCCCSTelephone Number: (602) 417-4457

E-Mail Address: diane.shook@azahcccs.gov

Kayelen Rolfe, Travel Reduction Programs Manager, ADOA Telephone Number: (602) 542-3638

E-Mail Address: kayelen.rolfe@azdoa.gov

Visitwww.teleworkarizona.com

Thank you

for your

participation