Cisco Connected Cisco Connected Cisco Connected Cisco Connected WorkplaceWorkplaceWorkplaceWorkplace

Transformational Transformational Transformational Transformational WorkplaceWorkplaceWorkplaceWorkplace

Lisa NgLisa NgLisa NgLisa NgHead, Capital Program Head, Capital Program Head, Capital Program Head, Capital Program Management, APJManagement, APJManagement, APJManagement, APJ

Global Headcount*

84,424 persons housed( 3435 in Q1)

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

37% Engineering

20% Sales19% Services

24% all others

Global Portfolio*

23.5 million sq. ft.(44% owned)

62% Americas16% EMEAR

22% APJCI

93 countries290 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% Engineering4% Sales11% 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 ResponsibilitiesFunctional ResponsibilitiesFunctional ResponsibilitiesFunctional Responsibilities

Why CCW?Why CCW?Why CCW?Why CCW?

Work Styles Have EvolvedWork Styles Have EvolvedWork Styles Have EvolvedWork Styles Have EvolvedWork anytime, from anywhereWork anytime, from anywhereWork anytime, from anywhereWork 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

(0

00

s)

Global Office Space UtilizationGlobal Office Space UtilizationGlobal Office Space UtilizationGlobal Office Space Utilization

Unused Total

Capacity

Unused “Assigned”

Capacity

Cisco Work StylesCisco Work StylesCisco Work StylesCisco 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 5032

10

19

24

33

15

38

33

3339

13

28

18

49

512

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 Work Styles by Organization (2012 Work Styles by Organization (2012 Work Styles by Organization (2012 WPSWPSWPSWPS))))

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

53

41

78

60%

45

37

54

85

56

28

10

16

29

31 50

32

10

19

18

49

512

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 CultureCisco Work CultureCisco Work CultureCisco 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 Report2010 Cisco Connected World Report2010 Cisco Connected World Report2010 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 CCWWhat is CCWWhat is CCWWhat is CCW????

Workplace Design StrategyWorkplace Design StrategyWorkplace Design StrategyWorkplace 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 Combined3 Concepts Combined3 Concepts Combined3 Concepts Combined

TechnologyTechnology

Cisco Connected WorkplaceCisco Connected Workplace

PolicyPolicy

EnvironmentEnvironment

Flexible Work PracticesFlexible Work PracticesFlexible Work PracticesFlexible 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 PolicyGlobal Space PolicyGlobal Space PolicyGlobal Space Policy

Space Policy Space Policy Space Policy Space Policy

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

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

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

Enabling Messaging and Enabling Messaging and Enabling Messaging and Enabling Messaging and MobilityMobilityMobilityMobilityAnywhere on Anywhere on Anywhere on Anywhere on any deviceany deviceany deviceany 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 DevicesExplosion of Mobile DevicesExplosion of Mobile DevicesExplosion of Mobile Devices

Total Adoption to Date – 23.8kAccounts

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 SocialThe Enterprise Becomes SocialThe Enterprise Becomes SocialThe Enterprise Becomes Social

Employee CollaborationCustomer Collaboration

Any Time, Any Place

Video Becomes Pervasive...

Across All Devices

The New Collaborative The New Collaborative The New Collaborative The New Collaborative WorkspaceWorkspaceWorkspaceWorkspace

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 ConceptProof of ConceptProof of ConceptProof of Concept

PeoplePeoplePeoplePeople

� 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

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 CiscoSustainable Workplace at CiscoSustainable Workplace at CiscoSustainable Workplace at Cisco

Estimated Energy EfficiencyGains with Connected Workplace

Number of Employees

TraditionalOffice

300

Cisco ConnectedWorkspace

PercentChange

40033%

Increase

Connected Electrical Load(watts/square footage)

2.6 1.736%

Reduction

Connected Electrical Load(watts/employee)

432.9 178.758%

Reduction

Total Connected Electrical Load(watts)

127,169 71,47644%

Reduction

Total Cooling Loads (BTUs) 433.646 243,73344%

Reduction

Total Cooling Provision Tonnage 36 2044%

Reduction

How do we implement CCW?How do we implement CCW?How do we implement CCW?How do we implement CCW?

Solution DevelopmentSolution DevelopmentSolution DevelopmentSolution 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 ResistanceUnderstanding ResistanceUnderstanding ResistanceUnderstanding Resistance

Th

at’

s Y

ou

r Jo

b!

I’m an

Engineer!

WHAT ABOUT MY EQUIPMENT?WHAT ABOUT MY EQUIPMENT?WHAT ABOUT MY EQUIPMENT?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

Bu

t I’m

at m

y d

esk

eve

ry d

ay!

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

ect

wit

ho

ut

my

ow

n o

ffic

e

Change Management CurveChange Management CurveChange Management CurveChange Management Curve

Support

for

Change

Time

Sponsors Consumers

No Commitment

Let it Happen

Passively Helping

Actively Helping

Making it Happen

Institutionalize

UnawareUnderstanding

Self Concern

Hands on Trial

Acceptance

Internalization

Change ManagementChange ManagementChange ManagementChange Management

HighHighHighHigh----Level Strategy Timeline and ActivitiesLevel Strategy Timeline and ActivitiesLevel Strategy Timeline and ActivitiesLevel 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

Closing ThoughtsClosing ThoughtsClosing ThoughtsClosing Thoughts

33

� Cloud computing, any device, any where…..

Closing ThoughtsClosing ThoughtsClosing ThoughtsClosing Thoughts

34

� Cloud computing, any device, any where…..

Thank youThank youThank youThank you