Lucy M. Chan, Director, Growth Markets Business Development, IBM Corporation May 7, 2011

Work/Life Integration at IBM

© 2011 IBM Corporation

IBM Work/Life Program Heritage 1956 – to Date

2009 2011 2010 4 th Global Work Life Survey Work Life Zone 1999 2001 Global Work Life Fund FWO’s in 11 LA countries 1997 Regular Part-Time 1986 1992 FWLOA extended to 5 years 1980’s Individualized Work Schedules First Work Life Survey 1983 Child Care Resource & Referral 1966 Special Care for Children 1956 Leaves of Absence

© 2011 IBM Corporation 2

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The Changing World of Work …

Transforming “Work/Life Balance” to “Work/Life Integration” Increased global contacts result in the disappearance of “9 to 5” and fixed continuous schedules Evolving family and social structures drive employee needs, perceptions and expectations Ubiquitous low cost technology enables and generates work 24x7x365 from any location

Enabling the Global Enterprise

© 2011 IBM Corporation

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IBM Corporation

Executive Quote "One of the reasons people come to work for IBM is because we take workplace flexibility seriously. On any given day, worldwide, one third of our people are not at an IBM location - they are working onsite with customers, are telecommuting or are mobile. Today, we must reconsider our traditional concept of work and how it gets done..." Samuel J. Palmisano, IBM Chairman of the Board and Chief Executive Officer © 2011 IBM Corporation

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Mobility is a continuous journey

IBM began its mobility program in the early 1990’s and now supports over 160,000 employees worldwide Mobility Objectives Increase customer satisfaction Improve employee productivity Generate significant cost savings Improve attraction and retention of talent 1995: 10,000 employees in the US 1998 – 2000: Global implementation 2010: 160,000 formally identified remote workers 2011: Workplace of the Future; enable full mobility Target Workforce Segments Sales Client Services & Support Increasingly, more jobs can be performed remotely © 2011 IBM Corporation

The Changing Work Environment in IBM

M (mobile) 10.6% H (home) 0.4% 1998 C (customer) 1.4% N (non-office) 13.1% S (office) 74.5

% 2010 T (m ulti office) 1.0% C (custom er ) 3.0% H (hom e) 8.0% Unknown 4.0% M (m obile) 21.0% N (non office) 2.0%

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S (office) 61.0%

© 2011 IBM Corporation

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Flexibility Principles

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The Enterprise never stops Balancing of needs

Trust and personal responsibility Range of options Understanding differences Focus on results

© 2011 IBM Corporation

IBMers Have Options on How,

When

Flexible Work Options (FWOs) & Where to Work:

8  Compressed Flexible Work Week  Individualized Work Schedule  Leave of Absence  Part-time Reduced Work Schedule  Job Share  Mobile  Work –at–Home © 2011 IBM Corporation

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Work Life Tools

© 2011 IBM Corporation

IBM Global Work/Life Fund:

$50M Multi-Year Fund

Primary Goals:

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Enhance IBM’s position as THE global work/life leader

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Contribute to the recruitment and retention of top talent

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Mission:

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Increase supply and improve quality of dependent care where our employees live and work by providing attainable and desirable dependent care options to employees … locally recognized as high quality, desirably priced, convenient

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Provide support with consideration given to local culture, norms and standards and international values

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Provide support along the career life cycle to key talent

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Recognize and respond to emerging markets and changing workforce demographics and needs (e.g., mobile, frequent traveler, aging, young)

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Provide tools/supports for managers and employees to better take advantage of flexibility

© 2011 IBM Corporation

Resource & Referral Programs

Work/Life Resource and Referral (R&R) is a service developed to help employees manage work and personal responsibilities by providing information on topics and services that are important to them : R&R in the United States R&R Globally Provided

– Launched in 2005 as the first ever Global R&R – Available in 31 countries and 8 languages with enhancements and expansions into more countries planned: • Argentina, Australia, Brazil, Chile, China, Colombia, Czech Republic, Ecuador, Hong Kong, Hungary, India, Indonesia, Ireland, Northern Ireland, Mexico, New Zealand, Peru, Philippines, Poland, Russia, Scotland & Wales, Singapore, Slovakia, South Africa, Spain, Taiwan, Thailand, UK England, Uruguay, Venezuela

Unique R&Rs in different countries

: • Australia, Brazil, Canada, France, Germany, Japan, Switzerland © 2011 IBM Corporation 11

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IBM achieved cost savings and improved client & employee satisfaction through mobility

(hidden)

Company Benefits

    

Substantial real estate savings

Increased employee retention Enhanced productivity Lower absenteeism

Increased revenue Customer Benefits

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Increased customer satisfaction

Better accessibility to IBM team More “face time" with IBMers More productive at customer site Faster response to inquiries (hidden)

Real Estate Savings

  Mobility centers saved 2 million square feet and 7,500 workspaces

Savings and/or cost avoidance of approximately $100 million each year

   Eases traffic congestion on freeways More efficient energy use Cleaner air - 1990 federal clean air act (hidden)

Employee Benefits

        Productivity improvement

More “face time" with clients

Improved customer satisfaction More accessible and responsive Work longer hours with less impact on personal / family life Higher morale Greater loyalty Use what we sell © 2011 IBM Corporation

Mobility @ IBM : Summary

Then and Now

 IBM began to formalize mobility as a program in 1995  Today more than 40% of IBM’s workforce works remotely

Benefits

 Significant Real Estate cost reduction  Supports Green initiatives  Enhances workforce productivity & morale  Supports global integration and business continuity 13

Critical Success Factors

 Holistic approach and cross-functional program support

Getting There

 Define objectives and align to business strategy  Clear mobility policies – HR, technology, expense, procurement, etc  Technology as an enabler  Identify program champion and owner  Formalize the program Governance Processes Policies Education Technology Metrics  Pilot and adjust  Executive Champion  Continuously improve © 2011 IBM Corporation

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Workplace of the Future

What we know about people and work . . .

 Work used to be a “place”, now it's any place  Growing mobile/OTTO (Other Than Traditional Office) workforce  Need to work across time zones and geographies (peer-to-peer video)  The proliferation of devices... work doesn't have to be done on a laptop anymore  Technology enabling a different kind of work and culture  Entrance of Gen Y ... the social media generation © 2011 IBM Corporation

Workplace of the Future recognizes and supports generational diversity

Experienced workers (Age 50 +) Mid- career (Age 35 – 50) New generation (born after 1980)

growing as % of workforce shrinking as % of workforce growing as % of workforce 15 wisdom and intellectual capital of the organization essential professionals and middle managers critical to long-term viability and innovation

email instant messaging social networking

© 2011 IBM Corporation

Roadmap

16  Formalize the enterprise objectives for mobility  Identify Executive champion(s)  Engage stakeholders  Align the mobility program to the business strategy and objectives  Formalize the mobility program • Governance • Processes and Controls • Policies • Education • Enablers • Metrics

Thank-you!

 Conduct a trial, refine the program, expand  Assign program ownership

Lucy M. Chan, IBM [email protected]

 Continuously assess and update © 2011 IBM Corporation