Flexible working based on IT

Flexible Working based on IT[Table of Contents]1. What is Flexible Working?2. Today’s Flexible Working introduction cases3. KSF of Flexible Working4. AppendicesApril 8, 2010Seon Yeo Mi, Kim Hak Kyun

Contents What is Flexible Working?1. Introduction of Flexible Working2. Concept and definition3. Types of Flexible Working KSF of Flexible Working1. KSF of Flexible Working2. Successful implementation models3. Extraction of key factorsToday’s Flexible Working introduction cases 1. Foreign introduction case (1) US2. Foreign introduction case (2) Japan3. Cases in Korea4. Obstacles5. Related policies in progress6. Related systems and incentives7. Flexible Working and Green Life Practice Strategy Appendices1. Development of IT-based Flexible Working2. Changes after successful introduction3. Flexible Working introduction cases

With the environmental changes resulting from developments in IT field and spread of set of values which focus on quality of life, the change to flexible Working-Life Style is highly being promoted, and Flexible Working is standing out as a representative issueⅠ. What is Flexible Working? 1. Introduction of Flexible WorkingBackground of Flexible WorkingChanges in perception of work- Increased importance on welfare, health and cultureAppearance of IT-friendly workers Diversification of employment formPossible to use telecommunication services anytime and anywhere(Ubiquitous)"Government plans to introduce and actively promote 'Flexible Working' system"[Press release of the Ministry of Public Administration and Security, Feb 16, 2010]The Ministry(MOPAS) plans to introduce nine types of Flexible Working system in five fields (the system will be implemented in the whole administration in the second half of the year)Changes intelecommunicationenvironmentChanges insocial environment Changes inperception ofwork"Metropolitan Rapid Transit Corp. (SMRT) established 'Smart Office'"[Economic effect of mobile office establishment from Metropolitan RapidTransit Corporation case analysis, KT Center for Economic and Management Research, Feb, 2010]The operation cost 28.4 billion won was reduced for five years and 110 billion won-worth future innovation value was created Work Style ChangeFlexible Working-Life StyleLocally dispersed cooperation environmentGreen Life Practice StrategyInternational cooperation in business "Korea to be the "global green leader" in Copenhagen Accord" - Reducing carbon emission by 30%, establishing a green research center, and hosting climate change conference in 2012 were suggested- To achieve green ITTo reduce carbon emission Movements of companies and public offices to local area- Outsourcing of various tasksIncrease of foreign market entries and of workloads in foreign country* U-Working standard reference model preparation and phased introduction project, National Information Society Agency(NIA)3

Ⅰ. What is Flexible Working? 2. Concept and definitionFlexible Working has been defined differently in many countries and organizations, but considering its characteristics, it can be defined as 'flexible working arrangements without restrictions of time and place based on IT' Concept of Flexible Working in Korea, US and Japan Press release of MOPAS in Feb 16, 2010“Flexible Working system allows employees to freethemselves from stereotyped working arrangementsand flexibilizestheir commute times, work places, andworking arrangements”Definition of Flexible Working by BTTo work at home, on the road or other appointedplaces through internet and teleworking equipments* refer to BT.comTelecommuting, Telework and Remote Workis . . . at work place which reduces or removes commuting burden on a regular basis US Public Law [106-346] Japan [the Ministry of Internal Affairs and Communications]which removes restrictions in time and place through IT Korea [National Intelligence Service]outside one's office through telecommunicationnetworkto conduct all one’s job or part of itIT Time Placeflexible working arrangementsFlexible Working means flexible working arrangements which removes restrictions of time and place through IT4

Flexible Working can be classified, according to flexibility of time and place, into four typeswhich are Flex time, At-home work, Telework center, and Mobile work1)Types of Flexible WorkingDifferent Time1. Flex time- Staggered Shifts- Alternative work schedule- Compressed work- Discretion work- Core time- Part-time work- etcSame Location Different Locationtraditional workingarrangementsSame TimeⅠ. What is Flexible Working? 3. Types of Flexible Working 1. Flex time• The office is designated, but employees work according to their life patterns without restriction of time4. Mobile work- Using mobile devices3. At-home work 2. Telework center• Employees work at a communal center with no designated personal seat or at public work center located near their homes - Mobile office of IBM Korea3. At-home work• Employees work at home using telecommunication network, which is a traditional telework form- Introduced by KOIS/KOID, Korea IBM and Korean Intellectual Property Office(KIPO)2. Telework center- Satellite office- Smart office- Spot office4. Mobile Work• Employees work without restrictions of time and place using remote work equipments as needed - NTT Communications established web connect support center1) The MOPAS classifies Flexible Working into five fields and nine types according to place, time, method, dress code and complexion. (Press release, Feb, 2010)5

Ⅱ. Today’s Flexible Working introduction cases 1. Foreign introduction case (1) USThe US introduced Flexible Working in public sector first, with federal support. The US also implemented supporting policies such as establishing telework centers and education programs to promote Flexible Working in private sector as wellPublic sector's Flexible Working introduction in the US Spread of Flexible Working in private sector in the US• Establishing teleworkcenter GSA established fifteen teleworkcenters in Washing DC in 2009

Charging $40~62 fee per day to private companies• The Federal Government introduced Flexible Working through co-operative homeworking pilot project for the whole administration In the beginning of the project, the main factors of spread were popularization of internet, increase of transportation cost, and people wanting better work-life balanceThe number of workers benefitted from Flexible Working program was 94,643 in 2007, which was less than 110,592 in 2006. However, the number of Flexible Working program increased in federal offices except for the Department of DefenseAmong Flexible Working workers, 38% of them use the program at least once a week in Nov. 2008. The target is to increase participation rate to more than 50% of staffs in GSA by 2010- GSA and the Ministry of Personnel Management published reports about current state of Flexible Working program within Federal Government and reported it to the Congress annually since 20011)< Change of the number of remote workers in the Federal Government of the United States (unit: person)>• Support and publicity channelGSA and the Ministry of Personnel Management have offered official Flexible Working website, database, manager and worker education programs since 2008-The number of workers who participates in Flexible Working program in the US was 34 million at the end of 2009, which increased by 17% compared with 2006. The number is expected to become 63 million(43% of total workers in the US) in 2016 SectionAdult Population in the US(unit: million persons) Full time(5days/week)Regular(1~4days/week)Temporary(Less than 1day/wek)Total Ratio(%)TheNumberofAt-home Worker 1) Green SW technology and market trend_virtualoffice field, Korea Venture Business Association Corp., Dec, 20096

Japan implemented many incentive policies such as tax cuts and guidelines which were based on public sector's Flexible Working introduction cases to spread Flexible Working system into private sectorⅡ. Today’s Flexible Working introduction cases 2. Foreign introduction case (2) JapanPublic sector's Flexible Working introduction in Japan Spread of Flexible Working in private sector in Japan• Plans for telework dissemination- Establishing telework counseling center and support channel Developing telework security guideline

Setting up telework utilization program for pregnant or parenting women, the elderly and the disabled Introducing tax breaks for companies to adopt telework system, which reduces fixed assets tax on telework equipments to two-third for five years (extended from Apr. 2009 to Mar. 2011)2)Promoting the system in private sector through telework centers of the Ministry of Lands, Infrastructure and Transportation (MLIT)• In 2007 Japan introduced telework system into the whole government body first and spread it to private sector with IT and Telco as the central figures- Japan's goal in this project was to solve decreasing working population problem caused by low birth rate and aging society. Japan established action plans to double their telework population in 2007Double teleworker ratio by 2010 compared to 2005(20% among the working population)• Establish telecommunication system - thin client system test, tax breaks to teleworking companies•Create system and environment for Flexible Working - Private sector: At-home work guideline development - Public sector: Shortened work- Pilot introduction to the whole administration in 2007 Implementing shortened work and telework among the officialsImplementing shortened work system in local governments

providing information such as telework practice or policiesTargetRequirement andInfrastructureintroduction plan inpublic sector TargetJapanese Ministry of Health, Labor and Welfare suggested guideline for applying Labor Standard Laws, Industrial Safety and Health Law, and Accident Compensation Insurance Law to protect teleworkers' rights and interests1) Re-illumination of telework based on IT and policy issues.Vol.7 (Aug, 2009), National Information Society Agency (NIA)Source: Research on telework population in 2008, Apr, 2009, MLITNote : Teleworkerratio: The number of teleworkers / Workers ages 15 and above2) http://japan.cnet.com7

Ⅱ. Today’s Flexible Working introduction cases 3. Cases in KoreaAlthough Korea has world first class IT infrastructure, domestic Flexible Working introduction rate is no more than 0.8% Introduction of Flexible Working in Korea- In terms of industry, Flexible Working is applied in the order of publishing, media business and information service(4.4%), wholesaling and retailing(3.1%), and electricity and gas industry(2.9%). Most of flexible workers are estimated to be freelancers, professionals and part-timers• Introduction of Flexible Working in KoreaA few companies tried introducing Flexible Working since late 1980s, but it has not yet been activated due to expenses, technical problems, face-to-face communication culture and lack of promotion Flexible Working in Korea is still in the beginning stage, although Korea has world first class IT infrastructure and 77.2% of Korean are internet users. Also Korea is holding the second rank in UN e- participation index 1)Ministry of Information and Communication(MIC) recognized u- Working as a key service in Broadband Convergence Network(BcN) and tried to introduce it into public sector and subsequently into private sector, but failed to generalize Flexible Working company has increased by 0.2% to 0.8% in Apr. 1st 2009 from 0.6% of NIA research in Dec. 2008, but still Flexible Working has not been diffused in KoreaManufacturingFinanceConstructionpublishing, media business and information serviceElectricity, gas and watersupply servicewholesaling and retailing※ 6 major industries among 17 industry fields The number of Flexible Working companies has showed slight rise since 2008Introduction time of Flexible Working 3)(unit: company, %)Section Total Before 2006 2006 2007 2008 2009Introduction of Flexible Working in Korea 2)TotalAt-home Mobile Total number of companies IntroductionrateSection Flexible Working companies Total1) Homeworking activation plan for the seriously disabled, Research report of Korea Employment Agency for the Disabled(KEAD), 20062) Research on teleworking in companies and factors affecting its results, Lee Sung Ki, PhD of SoongsilUniv, 20093) Seven companies which implementing at-home work and mobile work simultaneously are overlapping.8

Ⅱ. Today’s Flexible Working introduction cases 4. ObstaclesThe obstacles in dissemination of Flexible Working in Korea include initial cost burden, negative perception within organizations and institutional inertia initial cost burden Technical problems Negative perception Institutional inertiaObstacles in introduction of Flexible Working • initial cost burden of F/W introductionBT invested 650 pounds on internet access, mail forwarding equipments and office supplies per flexible worker Upgrading equipments, purchasing laptop computers and mobile devices costed IBM Korea 10 billion won• Concerns for F/W introduction index was suggested in order of cost, technological problems, negative perception, institutional inertia (NIA research)cost 4.11, technological problems 3.73, negative perception 3.38, institutional inertia 3.25 (out of 5 points) • Threats to business security from external access- NTT Data rented separate 'Thin Client PC'CostTechnologicalProblemsNegativeperceptionInstitutionalinertia • Corporate cultures in Korea Samsung Electronics introduced Flex time, but it only resulted in heavier work burden due to the perception 'overtime work = diligence‘ Ministry of Environment introduced voluntary participation, but no one participated• Lack of detailed regulations to promote F/WArt. 58 of the Labor Standard Act includes regulation on discretion work, but there are no standards for protection of privacy, security, and industrial disaster※ Japanese Ministry of Health, Labor and Welfare provides guideline about Labor Standard Laws, Industrial Safety and Health Law, and Accident Compensation Insurance Law through Labor Standards Bureau. 9

The Government announced a plan for Flexible Working introduction, which provides proper environment in public sector and subsequently spreads Flexible Working in private sector with a new councilⅡ. Today’s Flexible Working introduction cases 5. Related policies in progressFlexible Working introduction in public sector and providing proper environment for the participation of private sectorPresident's Council on InformatizationStrategies• President's Council on Informatization Strategies announced Smart Office project for establishing IT-based, low-carbon working environment in Jan. 20101. Establishing Smart OfficePlanning to establish Smart Offices until 2010, 22 until 2013 in the major cities with funds raised from traffic impact mitigation fees2. Flexible Working spread plan Establishing Government-wide Smart Office policy council and working group• MOPAS plans to introduce 9 types of Flexible Working system in public offices in 5 fields (Feb. 2010)1. Work style changes in the GovernmentIntroduction and revitalization of flexible work arrangements according to the characteristics of worker/task/organizationClassification of Flexible Working into nine types, such as at-home work, telework, part-time work, etc.2. Flexible Working spread planPlanning to implement Flexible Working system in the whole administration and local governments from the second half of 2010• NIA suggested social and economic effect in its Green Life Strategy_Telework Based on IT ReportNIA re-illuminated Flexible Working, published research report and also held forums on keynote of Green Life Practice during the last two years ※ National Intelligence Service(NIS) was opposed to Flexible Working introduction due to security concerns.MOPASNIAGreen IT Project DepartmentGreen IT Project 2020 Task Force 1) Smart Office: IT-based office which allows employees work at remote place without going to the main office. Also known as Smart Work Center or Telework Center.10

According to its plan, the Government is planning to enact detailed regulations and promote spread of Flexible Working in private sector, achieving general consensus on the issueⅡ. Today’s Flexible Working introduction cases 6. Related systems and incentivesSpread plan of Flexible WorkingInstitutional baseIncentive• Green Life Practice Strategy and utilization plans for the spread of Flexible WorkThe Government needs to actively deal with the recent expansion of carbon emissions regulationKorea is ranked 10th carbon emission country in the world and is being suggested 30% reduction target compared to expected emission levels in 2020Incentive plan for Flexible Working companies is in progress to reduce carbon emission levels of companies and buildings by 10% until 2012Carbon emissions are going to be set as a new standard for incentive and penalty in budgetary allocations for local governments• There are comprehensive legal basis for Flexible Working in current laws, but no detailed guidelinesDetailed guidelines on different issues including protection of privacy, security, and industrial disaster are required which can be supplemented by the labor lawsFor revitalization in public sector, concrete guidelines are required in Electronic Government Act and its Enforcement Ordinance, and the Public Service RegulationsTax breaks and incentives are required for the promotion of Flexible Working Positive national consensus about Flexible Working introduction and its relativity with low-carbon society development are required11

The Government announced 'Greenhouse Gas Reduction Master Plan' which is a strong energy saving policy, and is going to reduce greenhouse gases with concrete and practical actionsⅡ. Today’s Flexible Working introduction cases 7. Flexible Working and Green Life Practice StrategyGreenhouse gas reduction measure 2010 for achieving carbon emissions reduction target• Flexible Work is a core plan to achieve energy saving target, which is the key factor in Green Policy 2010Strong energy saving policy Greenhouse gas reduction target1. Expanding energy-greenhouse gas target levelsSuggesting reduction target and time period by industries

New target level for business areas using energy over 500 thousand TOE from the next year, and business areas using energy over 50 thousand TOE from 20112. Financial support and tax breaks for greenhouse gas reduction investmentIntensifying support for carbon emissions reduction of SMB3. Institutional support for greenhouse gas reduction- Using video conference system- Smart Office1. Improving energy price systemInterlocking electricity price based on price fluctuations of raw materials from 2011Interlocking city gas price with price fluctuations of raw materials from 20102. Energy management system Pilot test in ten industries including the steel and cement industry Implementing building/business area energy target management12

KSF standard need to be established so that variances in Flexible Working introduction including individual, work, organization and environmental circumstances can result in successful outcomes for the entire society KSFKey Success FactorⅢ. KSF of Flexible Working 1. KSF of Flexible WorkingResults of Flexible Working F/W Creates bigger synergy effect differentiated from performances of normal companies Individual factors Environmental factorsWork/task factors Organization factorsWork & Life balance Productivity improvement Job creationLow-carbon green growth-Work attitudes-Self-control-Professionalism-Individualism-Commuting distance-Independent workplace-Commuting convenience-Family responsibility-Autonomy-Specialty of task-Importance of task-Task concentrativeness-Face-to-face contact with client-Group work-Performance evaluation-Communication-Trust-Education and training-Institutionalized Flexible Working-Frequency of Flexible Working implementation-Technical support-Flexible Working place-Improved autonomy and satisfaction at work-Decreased working hours/cost/stress-Reduced Office maintenance cost-Increased productivity-Reduced Employment and training cost -Guarantees high quality work force-Flexible work force management-Offers chance to women,the elderly and the disabled-Energy saving-Reduced environmental pollutionVoluntary choice ofFlexible Work arrangementsVariables in Flexible Work1) Individual/organizational/environmental factors can influence implementation of Flexible Work as variables1) Research on teleworking in companies and factors affecting its results, Lee Sung Ki, PhD of SoongsilUniv, Dec. 200913

KSF of Flexible Working is defined, as 1) IT infrastructure, 2) positive organizational/cultural perception, 3) work processization, and 4) job restructuring, based on domestic and foreign cases such as that of BT and IBMⅢ. KSF of Flexible Working 2. Successful implementation modelsIT infrastructure: Wired and wireless telecommunication services and security service as the institutional basisOrganizational/cultural change: Education program to change perceptions and based on incentives performanceProcessized work form: Work management process by task or project based on clear role assignmentJob restructuring: Improving work efficiency and specialty through task classification by characteristics of the tasks Major features of F/W in BT• BT established BT Working Style as a successful business model on the foundation of technical/experiential know-howHome-based telework groupPerformance managementPersonnel management and service CSR F/W framework of IBM• IBM developed the Smart Flexible Working model which connects and combines organization/individual/culture, technology infrastructure and work process organically Organization/ individual/ cultureProcess & System Technology & SecurityAssets• Support system which enabled Working Anywhere• Numerical targets assigned to each project• Objective performance assessment • Authorization for project manager to assess performances• Industrial disaster insurance for homeworking• Stronger CSR by green management reference• Making solution as a business model14

To make coherent organization and improve work efficiency, the members of the organization should be able to communicate and work regardless of time and placeⅢ. KSF of Flexible Working 3-1. Extraction of key factors – IT InfrastructureKey factors• Seamless wired and wireless network for ensuring real-time working- BT provides MobileXpress software- IBM offers VPN service at home• Enterprise portal which provides UC-connected information sharing and collaborative work solutions- IBM provides a groupware(Lotus Notes) Samsung group provides intranet "mysingle" which supports various web and mobile devices- NTT Data has collaborative work solution "Nexti" Seoul Metropolitan Rapid Transit Corp.(SMRT) provides smartphone-based "UTIMS"※ UC(Unified Communication) market is expected to grow by 33.7% from 555.1 billion won in 2006 to 742.2 billion won in 2010 1)• PC and mobile devices which enable fast and immediate work SMRT, Korea Meteorological Administration(KMA), Ulsan National Institute of Science and Technology(UNIST), Kolon etc. are planning to expand FMC terminal adoption 1. IT Infrastructure• Check Point-Well-developed communication network, communication costs, and development of collaborative work tools1) Recent u-work trend, National IT Industry Promotion Agency, Sep. 200915

Key factors• Horizontal organization structure to minimize reporting procedureIBM Korea established horizontal organization structure with People Manager system • Education program regarding Flexible Working and regularized freediscussion on problems and effectsIBM is planning on continuous education to encourage the employers and managers to accept Flexible Working system• Expanded online channel based on collaborative work solutions including e-mail, BBS, video conference, etc.NTT Data converted to online reporting system, through which each day's work plan and results are submittedBT reduced 859,784 meetings a year thanks to video conference system• Flexible selection and operation required according to the organization cultureof voluntary selection and coerced action- NTT Data introduced F/W owing to employees' proposalIBM, NEC and MS Japan designated the minimum days ofhomeworking in a top-down way• Clear performance management system with quantified performance estimation of each employee.BT set KPI based on individual role and responsibility and has offered reasonable incentives IBM makes action plan with quantified individual targets in the beginning of each year2.Organizational/Cultural ChangeⅢ. KSF of Flexible Working3-2. Extraction of key factors – Organizational/Cultural ChangeEducation program to change perception, motivation based on clear incentive system and flexible work force management are the most essential elements, especially in Korean business environment in which face-to-face communication culture is predominant• Check PointHuman resources management system, including personnel, compensation, welfare, centered around internal workersFace-to-face communication culture and controlling attitudes in organizations16

Task management, responsibility and authority assignment, employee qualification etc. need to be processized to ensure completion and productivity at work, regardless of time and place3. Work ProcessizationⅢ. KSF of Flexible Working 3-3. Extraction of key factors – Work ProcessKey factors• Work processization is required for task completenessIBM Korea specialized designated tasks by position and project-BT codified all projects so that they can be more connected to individual tasks• Qualified personnel search process for suitability and continuity for work-IBM Korea supports qualified personnel search system through "Find Expert" program• Clarifying authority and responsibility so that they can be transferred flexibly among the personnel using"authority-responsibility system"-POSCO creates authorities and responsibilities table for each project• Check PointUnclear authority and responsibility, which hinder task completionWork by personal experience and customs rather than by qualified personnel17

Differentiated forms of Flexible Working according to characteristics of the work is required to improve commitment and productivity and to provide flexibility in organization structureⅢ. KSF of Flexible Working 3-4. Extraction of key factors – Job RestructuringKey factors• Selection of work groups which can achieve the target ofFlexible WorkingKois/Koid have 230 and 400 homeworkers in call center services respectively Samsung Anycar reinforced mobile office education for sales staffsMinistry of Environment failed to maintain Flexible Working due to the compulsory participation regardless of job positions • Differentiated Flexible Working type by job characteristicsAbout 400 patent examiners(70%) working for Korean Intellectual Property Office(KIPO) work at home two or three times a weekBT provides work arrangement options including homeworking, partial homeworking, telework center, flexible work timeIn IBM Korea, sales staffs can choose among telework center, mobile office, or flexible work time. Consultants can choose betweenhomeworking or mobile office, and internal workers can choose between partial homeworking and flexible work time• Plan to make transfer of responsibilities and authorities flexibleWoongjin introduced coordinator system for flexible authority and responsibility at work• Internal job posting for improving job selection and specialty- IBM Korea posts 10% of its jobs internally every year4. Job Restructuring• Check PointPerception that Flexible Working is just related to IT infrastructure establishment and have nothing to do with work position -Complexity of job management caused by Flexible WorkingVariables include each employee's ability to use IT and control Flexible Working, motivation for Flexible Working, home-based telework environment, etc. 18

As the economic structure and working environment change due to the development of IT, traditional homeworking system also developed into the mixture of homeworking and teleworkcenter, which combines homeworking, telework center, and mobile telework[Appendix 1] Development of IT-based Flexible Working[Change of IT environment and development of Flexible Working development]IT popularization"Enjoy IT“Mobile Communication "Live by IT“*Digital convergence*Broadband network*Internet information appliancesIT paradigmUsage patternTechnology developmentUbiquitousNetwork*Solutionization *Customizing *Smart phone IT advancement “Do IT" *Wireless InternetReconstituted from Discussion on Preconditions for Spread of Telework,The Korean Association for Regional Information Society Journal, Vol. 9 No. 2PCHome workingTelework centerMobile telework(combined)CustomizedCombined withother management patternsDiversified working patternExpansionWorking placeUse of telecommunication1)Personnel management patternSignificanceTraditional homeworkingSimpleTemporary/part-time/alternative work scheduleOnly workplace changed IntroductionHomeworkingTeleworkcenterIntegratedTemporary/part-time/alternative work scheduleDiversified workplaceDissemination1) Teleworkers show higher adoption rate of IT devices such as network, computing technology and smartphones than common workers_refer to US Telecommuting Forecast, 2009 to 2016, Forrester, Mar. 200919

Despite the initial obstacles, Flexible Working has created immediate effects such as cost saving, higher productivity, job creation, higher satisfaction of work and life, and society-wide green IT effect[Appendix 2] Changes after successful introduction• The most important value in work is work-life balance (Samsung Economic Research Institute)France and Sweden has invested about 3% of GDP into supporting the compatibility of family and workFlexible work arrangements enabled more time for self-development and leisure • Operating cost reduction-BT Working Style: saved 0.95 billion dollars annually(1993-2006) as workspace has been reducedIBM Korea Mobile Office: reduced workspace by 50% and saved 2.2 billion won annually• Higher productivityCompanies such as BT and BestBuy exceeded their targets by F/WWork-life balanceCost saving &higher productivityJob creation• Alternative low-carbon working environment through commuting traffic reduction-Sun Microsystems: reduced 29,000 tons of CO₂ emissions -BT: reduced 927,369 tons of CO₂ emissions per year•Job opportunities for disadvantaged people including parenting women, the elderly and the disabled The Japanese Government establishedteleworking system due to low birth rate and aging of population United States Patent and Trademark Office (USTPO) employed 1,200 new patent examiners in 2006 and 200720

Draw selective condition of each task for successfulintroduction of Flexible Working through cases of government institutions: Success of Korean Patent Office and failure of the Ministry of Environment [Appendix 3] Cases of Korean Intellectual Property Office(KIPO) and the Ministry of Environment KIPO Ministry of Environment(Introduced in 2006 -> Continuing operation as of 2010)• To utilize idle manpower and improve concentration at work• Homeworking department : applied to the entire personnel• Scale of operation : 41 homeworkers with one in each department in 2008 -> when converted to voluntary participation in 2009, no one participated• Application requirements : Headquarter officials of 5th grade or below regardless of positions, depending on job characteristics and circumstances. Recommendation from the head of the department (2 days per week)• No appraisal tools contrary to KIPO• Check attendance at the beginning and the end of work• Utilization of idle manpower including the disabled and the housewives• Energy saving at the time of high oil price and greenhouse gas reduction• Compulsory allocation which excluded job restructuring• Disregarded introduction of management process(Introduced in 2008 -> Failed to maintain as of 2010)• To save workspace, attract outstanding workforce and improve welfare• Homeworking department : limited topatentexamination staffs• Scale of operation : About 90 examiners are working at home out of 810 (10% of the whole personnel in KIPO) • Application requirements : No limits of job positions, but considers the distinct characteristics of the public service. Two or more years of work experience as an examiner is required to be an applicant (The applicant can choose to work at home 2-4 days a week)• Performance basically appraised by the result of patent examination • Commuter check at 9 AM and 6 PM• Saved some workspace(cost numerically not estimated)• Attracted outstanding workforce and improved efficiency/concentration of examiners• Saved social costs such as commuting costs and pollution• Negative perception about homeworking of public officials• Frequent policy changes by superiorsReasons for introduction Operation Taskmanagement EffectsProblemsReasons for introduction Operation Taskmanagement Expected effectsProblems21

Koid/Kois and SMRT are both Flexible Working companies in Korea. The former is operated based on the distinctive characteristics of call center service, and the latter recently established Smart Office for maintenance work[Appendix 4] Cases of Koid/Kois and SMRTKoid/Kois SMRT(Introduced in 2006 -> Continuing operation as of 2010)(Established Smart Office in Jan. 2010)•Initially : to increase job opportunities for the disabled Now : for employee welfare•Cost saving, higher productivity, more social benefits•Mobile work department : entire personnel•Scale of operation : entire personnel (6,500 employees)•Operation : Established mobile office with UTIMS(Urban Transit Infrastructure Maintenance System) forsmartphones and improved work process(real-time task management, more accurate information processing, and support for multitasking of the entire personnel). Free calls within the company, direct commute to and from the field•Fast decision making by real-time task management and analysis of results (to be implemented)•Reduced work time by real-time task management (1 hour -> 28 mins)•Saved total 28.4 billion won of direct operating costs for five years•Created 110 billion won's worth of future innovation value•net return on investment : 128.2 billion won (13 times the investment )•Cost 10.2 billion won(2.4 billion won a year) for installments of mobile devices and data chargesReasons for introduction Operation Taskmanagement EffectsProblemsReasons for introduction Operation Taskmanagement EffectsProblems•Homeworking department : 114 call center(only the night shift in Kois and both the day and night shift inKoid)•Scale of operation : about 230 representatives in Kois (17%) and 400 representatives in Koid(22%)•Application requirements : considers employee's ability to work alone and past performance evaluation. Over six months - one year of work experience •Support: VPN equipments for system access•Assess employees by call processing statistics and complaints frequency•Assessments of homeworkers and workers in call center were separated•Job satisfaction survey of homeworkers showed 90 points(out of 100)•The child-care problem has been improved and family satisfaction increased.•Inefficiency caused by excess costs for the establishment ofhomeworking environment •Communication problems due to delayed information sharing in the company22

Samsung SDS’s introduction of mobile office starting from June 2009, is expected to be an opportunity for cost saving for the company and voluntary increase in productivity for the employees[Appendix 5] Case of Samsung SDS Operation• Samsung SDS provided its employees with smartphones with Mobile Desk installed (June. 2009)• Reasons for introduction of Mobile Desk : higher productivity through using intranet of Samsung group(mySingle) with smartphonesDeveloped for working at all times without restrictions of time and place, cost saving and higher productivity• After pilot testing in the aspects of stability and usefulness, Mobile Desk was introduced to 2,800 general employeesSo for, CEOs of the branch, executives of Samsung Electronics, team leaders and above Samsung SDS, were trying out the Mobile DeskSupport : the employees purchase the smartphones(with partial support) and the company pays for the data charge from Mobile Desk usageSamsung SDS, which developed the program, first began to spread the Mobile Desk to general employees -Security issue : No need to worry about confidential data leakage, as telecommunication services work just as routes and the company administrates the server. Password is required to access the intranetSamsung SDSConcept map of mobile office Possible functions• E-mail transmissions within the company• E-approval (real-time) • Personnel inquiry• Office messenger• Remote file management• Contact with management issues in the companySmartphone(external)Laptopcomputer(intenal)Company server23

[Appendix6] Case of BTBT made 'BT Workstyle' as a new business model with technical, experiential know-how of introducing Flexible Working Flexible Working in BTEffects of BT Workstyle• Higher productivity, cost saving and welfare• Flexible Working department : limited to sales department and call center service at the initial stage• Now the whole personnel can choose to work flexibly • Scale of operation : about 85% of 92,000 British employees are participating in Workingstyle project (11,600 employees among them are homeworking) • Operation : five options are provided including task sharing, homeworking, partial homeworking, telework center and flex time• Allocates individual targets and assesses the performance objectively • Estimates performance by task unit assignments in a project • Invested ￡650for internet access at home, mail forwarding equipment(PO Box) and office supplies• Converged IP Voice which supports VoIP and BT Fusion wired/wireless telecommunication service• Established hot-desking system for effective workspace utilization and touchdown2 facilities in foreign branches• Built ADSL, ISDN, PSTN, GPRS, 3G and Wi-Fi access through MobileXpress software• Making BT as a reference for the Green Management, and establishing it as a business• Homeworkers returned to the office due to decrease in salesIntroduction of Options 2000 which regularizes homeworkingDeveloped into office environment improvement and propertymanagement consulting businessClients of BT Workstyle include Accenture UK, the Ministry of National Defense(MND), NHS24 Contact Center, Suffolk County Council, etc• BT introduced Flexible Working system called BT Workstyle in 1993Reasons forIntroduction Operation Taskmanagement Work support system Recent issues Benefits Contents• Higher productivity by 20-60% compared to office workers• Homeworking call center representatives helped customers better and showed 20% more responses• Sick leave rate decreased to 63%, 99% of returned to work after maternity leave (the industry average is 47%)• Absence without leave rate of homeworkers is 20% lower• Saved 0.95 billion dollars a year thanks to reduced workspace (1993-2006)• Saved 83% of operating costs per person• (employees working in London ￡18,000vs. homeworkers￡3,000)• Saved 859,784 meetings per year thanks to video conference and reduced 7.5 million kilograms of CO₂ emissionsHigherproductivity Higher job satisfaction Office operating costs savingTravellingexpensessaving24

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