Cisco Connected Workplace

Transformational Workspace

Head, Capital Program Mgmt APJ September, 2014

Lisa Ng

Global Headcount*

84,424 persons housed ( 3435 in Q1)

68,865 FTE PH (3061 in Q1, 73,203 all employees)

37% Engineering 20% Sales 19% Services 24% all others

Global Portfolio*

23.5 million sq. ft. (44% owned)

62% Americas 16% EMEAR

22% APJCI

93 countries 290 metros

489 buildings

San Jose Headcount

21,685 persons housed (-439 in Q1)

15,741 FTE PH (-611 in Q1, 15,839 all employees)

41% Engineering

4% Sales 11% Services 44% all others

San Jose Portfolio

7.3 million sq. ft.

(74% owned)

54 buildings

*Includes NDS, Meraki and LR impacts

As of 10-16-13

Real Estate Transactions

Workplace Solutions

Capital Program Mgmt

Facility Mgmt and Services

Customer Relationship Mgmt

Sales Support - EBCs

WPR

Strategic Planning

Functional Responsibilities

Why CCW?

Work Styles Have Evolved Work anytime, from anywhere

103.0

84.4

49.6

100%

82%

48%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

10

20

30

40

50

60

70

80

90

100

Seats in Portfolio Seats 'Assigned' (PH) Average Seats Utilized

Se

ats

(000s

) Global Office Space Utilization

Unused

Total

Capacity

Unused

“Assigned”

Capacity

Cisco Work Styles

1. Highly Mobile 2. Campus Mobile 3. Remote/Distant

Collaborator 4. Neighborhood

Collaborator 5. Workstation

Anchored

Highly mobile; Travels

extensively to customer

and partner locations;

frequently interacts with

customers

Internally mobile;

Interacts cross-

functionally in face-to-

face scheduled

meetings; Often in

leadership roles

Non-mobile employee

who works frequently

with remote colleagues,

and frequently works

from home

Neighborhood-based

employee who is mobile

within the group area;

interacts with,

coordinates and

manages teams

Desk-bound, non-

mobile employee who

performs highly focused

individual work; some

team interaction

22

4

44

6 4 4

58

19

8

4

19

16

8

4

11

14

9

28

10

16

29

31 50 32

10

19

24

33

15

38

33

33 39

13

28

18

49

5 12

24

13 14

5

25

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CA_AdvancedServices(n=1301)

CDO Consol(n=2478)

Cisco Services(n=249)

CorporateComms(n=182)

Finance, WPR& Admin(n=334)

Legal (n=52) Operations(n=1184)

WW Sales(n=1567)

GlobalPopulation(n=7612)

1. Highly Mobile 2. Campus Mobile 3. Remote/ Distant Collaborator 4. Neighborhood Collaborator 5. Workstation Anchored

Work Styles by Organization (2012 WPS)

Mobile vs. Remote vs. Fixed Work Styles (2012 WPS)

53

41

78

60%

45

37

54

85

56

28

10

16

29

31 50

32

10

19

18

49

5 12

24

13 14

5

25

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CA_AdvancedServices (n=1301)

CDO Consol(n=2478)

Cisco Services(n=249)

Corporate Comms(n=182)

Finance, WPR &Admin (n=334)

Legal (n=52) Operations(n=1184)

WW Sales(n=1567)

Global Population(n=7612)

Mobile Remote/Distance Collaborator Fixed

We are only

5 years away

from the Net Gen

entering the

workforce.

Traditionalist Boomer Generation X

1928–1945 1946–1964 1965–1980 1980–2000 2000–20??

Net Generation

Millennials

Cisco Work Culture

41%

52%

50%

89%

47%

6%

collaborate with people in different time zones

telecommute at least once a week

classified mobile workers

work in a fully remote manner

work in a different location than their manager

of our employees work outside the U.S.

Source: Cisco Work Profile Survey, 2012

2010 Cisco Connected World Report

Source: The 2010 Cisco Connected World Report

Participants preferred jobs with workplace flexibility and remote

access at lower salary to less-flexible jobs at higher salary.

Nearly half with remote access worked up to three extra hours

a day; a quarter worked four or more hours.

Three of every five employees (60 percent) believed it was

unnecessary to be in the office to be productive. This was

especially true in Asia and Latin America.

Two of every three employees (66 percent) expected IT to

allow the use of any device -- personal or company issued - to

access corporate data anywhere, at any time.

Click here for further information.............

What is CCW?

Workplace Design Strategy

Quadrant 1

Effectiveness

Work performance and productivity

Quadrant 2

Engagement

Employee engagement /

retention

Quadrant 3

Efficiency

Portfolio utilization and services improvement

Quadrant 4

Environment

Reductions in energy demands

and CO2 emissions

Cisco

on

Cisco

3 Concepts Combined

Technology

Cisco Connected Workplace

Policy

Environment

Flexible Work Practices

Part Time Employee works less than full-time hours

Telecommute Work performed outside of a Cisco office

Off / On

Ramp Employees pauses work at Cisco for a 1-2-year period

Flex Time Variation in when work is completed

Global Space Policy

Space Policy

Global Space Policy transforms Cisco’s workplace occupancy model from individual to group assignment.

A group assigned workplace provides flexibility and choice to the business while increasing the utilization of our assets.

Global Space Policy aligns with current work practices and does not require a change in current flexible work practices.

Enabling Messaging and Mobility Anywhere on any device

Single voice mailbox across all phone numbers

Simultaneous ring on all phones

Seamlessly move calls between mobile and

desktop phones

Extend your office phone

Place mobile calls through Cisco UCM

PCs & Macs Android & iOS Tablets Smart Phones

Explosion of Mobile Devices

Total Adoption to Date – 23.8k

Accounts

3,1

47

5,8

81

9,1

79

11,6

51

13,8

65

15,3

02

16,1

56

16,4

80

16,8

33

17,4

88

18,0

67

19,1

95

20,6

19

22,0

66

23,5

28

23,9

86

-

5,000

10,000

15,000

20,000

25,000

30,000

CVO Service Adoption History

Rapid adoption of (CVO) Cisco Virtual Office capabilities.

The Enterprise Becomes Social

Employee Collaboration Customer Collaboration

Any Time, Any Place

Video Becomes Pervasive...

Across All Devices

The New Collaborative Workspace

Mobile, Social, Visual, Virtual

SUSTAINABLE MANAGEMENT TEAMS

“SMT’s’ are local governance structures established to assure

the ongoing success in group assignments as determined by the

Global Space Policy. SMTs are comprised of an Office Council

of local business representatives and the WPR & HR teams that

support them.”

Proof of Concept

People

Prefer environment: + 77%

Improved communications: + 82%

Workforce satisfaction: + 82%

Ease of finding quiet space: + 62%

Ease of finding meeting room: + 80%

Financials

CAPEX Cable and IT Infrastructure - 50%

CAPEX for furniture - 55%

Space reduction for headcount - 30%

Return on Investment < 3 yrs

Cisco FY13–FY17 Environmental Goals

Goal Area Description

GHG Emissions

• Reduce Cisco’s scope 1 and 2 emissions 40% by 2017 with 2007

baseline

• Reduce Cisco’s Scope 3 air travel emissions 40% through 2017

with 2007 baseline

• Reduce electricity emission factor 50% below IEA World Average

by 2017

Energy Intensity • Reduce total operational energy use per revenue 15% by 2017

with 2007 baseline

Renewable

Energy

• Consume at least 25% of total electricity from renewable sources

each year through 2017

Extended Ops

(Supply Chain)

CDP Reporting

• Manufacturing, Tier 1 partner: 100% of spend report (Goal = 100%)

• Components, Tier 2 partner: 80% of spend report (Goal = 80%)

• Global transportation, Tier 1 partner: 93% of spend report (Goal =

90%)

Combining collaborative and networking technologies with an open floor plan and an emphasis on mobility — reconciling productive working patterns with environmental responsibility.

Sustainable Workplace at Cisco

Estimated Energy Efficiency Gains with Connected Workplace

Number of Employees

Traditional Office

300

Cisco Connected Workspace

Percent Change

400 33%

Increase

Connected Electrical Load (watts/square footage)

2.6 1.7 36%

Reduction

Connected Electrical Load (watts/employee)

432.9 178.7 58%

Reduction

Total Connected Electrical Load (watts)

127,169 71,476 44%

Reduction

Total Cooling Loads (BTUs) 433.646 243,733 44%

Reduction

Total Cooling Provision Tonnage 36 20 44%

Reduction

How do we implement CCW?

Solution Development

Heat maps provide building historical usage data

Data is used to populate the CCW Programming Template which provides breakdown and ratio’s of all space types

Universal Planning Guide provides high level performance specifications

Understanding Resistance

Tha

t’s Y

our J

ob!

I’m an

Engineer!

What about my equipment?

I’m a

Dire

cto

r!

…but I can’t

work in that Environment!

Everything I do is confidential!

That might be

fine for Sales but

it won’t work for me

But I’m

at m

y d

esk

every

day!

This isn’t fair!

I don’t care what the policy says,

just give me what I want.

This is just one more

thing that Cisco is taking

away from its employees

Give me my own

desk or I’ll

quit!

No! I’m going to just

work from home and

never go to the office

again!

I was promised an

office when I was hired

I w

on

’t g

et

an

y r

esp

ec

t

wit

ho

ut m

y

ow

n o

ffic

e

Change Management Curve

Support

for

Change

Time

Sponsors Consumers

No Commitment

Let it Happen

Passively Helping

Actively Helping

Making it Happen

Institutionalize

Unaware Understanding

Self Concern

Hands on Trial

Acceptance

Internalization

Change Management

High-Level Strategy Timeline and Activities

Leader Meetings

Orientation Meeting

Town Hall

Steering Committee Kickoff

Project Brief Approval

Steering Committee Meetings

Design Development/ CDs

CM Activities & Project Comms

Change & Readiness Activities

Construction

Steering Committee Meetings

SMT Establishment

Move-In Support

CCW Adoption & Sustainment

SMT Meetings

3-4 months 3-4 months 2-3 months 1-3 months

Business Insight Workshop

CCW Facts

Assessing Workplace Performance

Quadrant 1

Effectiveness

Work performance and productivity

Quadrant 2

Engagement

Employee engagement /

retention

Quadrant 3

Efficiency

Portfolio utilization and services improvement

Quadrant 4

Environment

Reductions in energy demands

and CO2 emissions

Cisco

on

Cisco

Portfolio of data sources (mapping since 2008)

Positive trends in mobile work styles & attrition

Positive trends in mobile work styles & engagement

Positive trends mobile work styles & performance

Global Effectiveness & Engagement

Work Profile Survey (self-reported data)

Employee Engagement

Business Performance Evaluation

Voluntary Attrition

WPS

Pulse

Performance

Attrition

2013 Cisco Client Satisfaction Scores

0.00 1.00 2.00 3.00 4.00 5.00

Traditional

San Jose Campus

CCW Full Solution

CCW Low Cost

Global

2013- CSAT Physical Space

Space for individual work Space for on-site customers

Space for collaboration Choice and flexibility options

0.00 1.00 2.00 3.00 4.00 5.00

Traditional

San Jose Campus

CCW Full Solution

CCW Low Cost

Global

2013 - CSAT - Global Scores

Overall Sat: Services Overall Sat: Workplace Environment

Efficiency Savings

143

175

215

242

269

140

180

222

249

277

302

394

485

546

606

299

391

481

541

602

0 500 1000 1500 2000

Traditional Seat Count(Existing)

CCW Seat Count (Including oneseat per APR)

80% of Programmed Capacity(Based on 65% show up rate

and new seats)

90% of Programmed Capacity(Based on 65% show up rate

and new seats)

100% of Programmed Capacity(Based on 65% show up rate

and new seats)

CCW Loading Options (Typical SJ Footprint w/ 50% labs on floors 1 & 2)

Floor 1 Floor 2 Floor 3 Floor 4

-60% -40% -20% 0%

CCW Seat Count(Including one seat per

APR)

80% of ProgrammedCapacity (Based on 65%

show up rate and newseats)

90% of ProgrammedCapacity (Based on 65%

show up rate and newseats)

100% of ProgrammedCapacity (Based on 65%

show up rate and newseats)

Typical Cost Savings (884 persons housed in a leased building in

SJ vs Traditional)

Annual Rent Variance

Annual Operations Cost Variance

Total Buildout Cost Variance

Combining collaborative and networking technologies with an open floor plan and an emphasis on mobility — reconciling productive working patterns with environmental responsibility.

Environmental Savings

Estimated Energy Efficiency Gains with Connected Workplace

Number of Employees

Traditional Office

300

Cisco Connected Workspace

Percent Change

400 33%

Increase

Connected Electrical Load (watts/square footage)

2.6 1.7 36%

Reduction

Connected Electrical Load (watts/employee)

432.9 178.7 58%

Reduction

Total Connected Electrical Load (watts)

127,169 71,476 44%

Reduction

Total Cooling Loads (BTUs) 433.646 243,733 44%

Reduction

Total Cooling Provision Tonnage 36 20 44%

Reduction

Source: CCW Environment Sustainability Report

Closing Thoughts

40

Cloud computing, any device, any where…..

Thank you

Cisco Connected Workplace

Click image to visit the CCW Interactive

Typical Results

Typical floor in San Jose Legacy Environment Cisco Connected Workplace

Usable Area 49,000 sq. ft. 49,000 sq. ft.

Work Space 70% individual 30% individual

30% collaborative 70% collaborative

Use Pattern Traditional, Assigned Flexible, Unassigned

Seat Capacity 300 375

Enclosed Meeting Spaces 16 72

Usable Area / Capacity* 163 sq. ft. 111 sq. ft.

Chargeback per Employee $5,162 per year $2,596 per year

Persons Housed 255 400-500 *

* Based on 75% Badge-In Rate