Cisco IT Case Study

Connected Workplace

How Cisco Designed the Collaborative Connected

Workplace Environment
Optimized workplace reduces real estate costs and boosts employee
productivity and satisfaction.
Cisco IT Case Study / Real Estate / Cisco Connected Workplace: This case study describes Cisco IT’s
internal use of Cisco wireless and Cisco IP Communications technologies in conjunction with an innovative
workplace design to create a more effective workplace for Cisco employees. Goals were to raise productivity,
enhance collaboration, increase employee satisfaction, and reduce real estate and technology costs. The
Cisco global network is a leading-edge enterprise environment that is one of the largest and most complex in
the world. Cisco customers can draw on Cisco IT's real-world experience in this area to help support similar
enterprise needs.

BUSINESS CHALLENGE
“Nobody would consider building a
Cisco Systems® employees work differently than they did as
manufacturing facility that they
recently as a few years ago. An increasingly global workforce
intended to use just one-third of the
and customer base makes it more likely that employees need
time. And yet that’s what we routinely to work at nontraditional hours, such as 6:00 a.m. or 10:00
do with work space. We realized that p.m., leaving their offices vacant at other times. More complex
assigning resources based on business and technology issues increase the need for
utilization would significantly reduce collaboration with team members in the same building or at
Cisco real estate costs.” various sites worldwide. Employees are often away from their
– Mark Golan, Vice President, Worldwide Real Estate desks, in meetings or workgroup discussions. “Even Cisco
and Workplace Resources, Cisco Systems
employees who work on site are likely to be mobile within the
building,” says Christine Ross, manager in the Workplace
Effectiveness Team for Cisco Workplace Resources (WPR),
the Cisco® group in charge of real estate.

Like most companies, however, Cisco designed its office space under the traditional assumption that employees
would work in their own cubicles during regular work hours and would need assigned work spaces with their own
desks, PCs, and phones. The result was that meeting rooms were often in short supply, while offices and cubicles
remained vacant 65 percent of the time on average. Most employees had cubicles; only those managers with eight or
more employees (direct reports) have private offices. “The work environment we’ve been building is not necessarily
what employees need,” says Ross.

“Nobody would consider building a manufacturing facility that they intended to use just one-third of the time,” says
Mark Golan, Cisco vice president for WPR. “And yet that’s what we routinely do with workspace. We realized that
assigning resources based on utilization would significantly reduce Cisco real estate costs.”

Cisco WPR resolved to build a work environment based not on titles, but rather on the needs of individuals, by giving
all employees a broad choice of workspaces and technology tools to do their jobs. “In college, a professor doesn’t
say, ‘Complete this project from 9:00 a.m. to 5:00 p.m. in the library,’” says Dolly Woo, Cisco workplace strategist.
“Rather, you’re given a task and a deadline, and how you complete that task is up to you. We had the same vision for
Cisco. Employees would have the freedom to choose their environment based on the requirements of their current

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 Cisco IT Case Study
Connected Workplace

task.” By creating a “connected workplace,” as the team dubbed the project, WPR hoped to achieve measurable
business benefits such as reducing real estate costs, in addition to increased productivity and employee satisfaction.

EARLIER SUCCESS WITH SHARED WORKSPACE

Cisco had previous success with the concept of shared workspace: “During our rapid growth periods we had no
choice but to share workspace because we couldn’t acquire new space fast enough,” says Ross. In the Stockley
Park, London location, for example, the ratio of employees to workstations was six to one. And in most of its sales
offices worldwide, Cisco IT retained the same physical cubicles but did not assign them to specific employees. In any
cubicle employees could log on to an IP phone as their own using the Extension Mobility feature of Cisco
CallManager servers.

Buoyed by the success of shared workspace in Cisco sales offices, WPR wanted to extend it to other Cisco facilities.
The goals were to increase the number of employees in the office without increasing real estate costs, and to create a
more productive and pleasant environment than that afforded by traditional cubicles. WPR decided to create a proof
of concept in San Jose’s Building 14.

REQUIREMENTS FOR A CONNECTED WORKPLACE SOLUTION

Cisco employees are increasingly mobile—and less and less working at a particular desk. Therefore, WPR’s vision
was to support the new mobility of employees with technologies such as wireless and the mobility features of Cisco IP
Communications technology. The new environment would enable them to choose any workspace for as long as they
needed it, less than an hour or all day. For its proof of concept, WPR drafted the following requirements:

Figure 1. Movable Furniture Makes Collaboration Easier

● Encouraging collaboration. The floor plan would provide spaces for both planned and spontaneous meetings
(see Figure 1) and for small and large groups. Technologies that encourage collaboration over distance
include Cisco VT Advantage for video telephony, Cisco Meeting Place for audio- and videoconferencing,
interactive white boards, instant messaging, e-mail, and voice mail. Other technologies that encourage

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 Cisco IT Case Study
Connected Workplace

collaboration within an onsite meeting room include portable or mobile videoconferencing units.
● Reducing real estate costs. By designing a space without assigned seating, two-thirds of which is vacant at
any given time, Cisco could comfortably assign more people to the same size building. The building used for
the proof of concept could accommodate 140 employees compared to the 88 who would be assigned to the
same space in a traditional Cisco building. Real estate costs would drop by 37 percent.
● Reducing infrastructure costs. A wireless environment requires less cabling, one of the most expensive
infrastructure components, and fewer wall jacks, which cost $200 each. In addition, the resulting reduction in
the number of switch ports would free up space for other switch resources, such as blades for security, content
serving, or additional infrastructure applications.
● Accommodating different work styles. WPR would design a workspace with a variety of seating options instead
of a single assigned seat for each employee. Throughout the day, employees would select an appropriate
environment to accomplish the task at hand: meeting in a group, participating in a conference call, or working
alone on a spreadsheet or project plan. Enabling technologies for the various workspaces include wireless
LAN and Cisco IP Communications (most notably Extension Mobility), Cisco IP Communicator, and Cisco
Unity® voice mail (see Figure 2).

Figure 2. Using Bluetooth Headsets, Cisco IP Communicator, and Wireless LAN Connectivity to Attend a Conference Call from
the Break Room

WORKPLACE EFFECTIVENESS PROOF OF CONCEPT

Preplanning
WPR created the Workspace Effectiveness project with the assumption that each of four categories of workers at
Cisco—engineering, sales, call center, and general administration—has a distinct set of needs for space, services,
technology, support, and policies and procedures. WPR supported its assumption with studies by Cisco and other
technology companies concluding that collaborative groups accomplish more than individuals.

Specifically, WPR designed the proof of concept to test the hypothesis that a flexible, collaborative workspace could
improve productivity and increase employee satisfaction while reducing real estate space and costs by increasing
user density. WPR assembled a team of specialists not only in IT, human resources (HR), and workplace resources,

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but also cultural anthropology, architecture, design, psychology, and sociology. Metrics for success would include cost
savings, improved productivity, and increased employee satisfaction. Cisco IT’s role would be to provide the tools to
enable mobility and enhance collaboration among global teams.

Cisco and WPR regarded the proof of concept as an experiment to determine the environments that work best for
different employees under different circumstances. The plan was for continual improvement as the team learned
more.

Volunteer Recruitment
WPR began by recruiting general administration workgroups to volunteer to relocate to the proof-of-concept building,
Cisco’s Building 14. Volunteers included the WPR group itself, the Cisco on Cisco IT infrastructure team, part of the
Cisco Internet Business Services Group (IBSG), and the HR Creative Learning Studio. Total participants numbered
140 and included individual contributors as well as vice presidents, directors, and managers.

Planning
To assess employee workspace needs, WPR conducted focus groups, employee interviews, surveys, and
observations. “We worked through representatives from each workgroup that we identified as technology change
leaders,” says Lyle Rochon, Cisco IT manager. “They brainstormed requirements from their respective teams and
brought them into our focus groups.” A frequently mentioned need was for quiet areas to be used for short periods
during the day. Another was personal lockers for belongings like purses or lunches, and larger filing cabinets for
employees whose jobs required them to store forms or records (see Figure 3). Employees also helped formulate the
etiquette associated with each type of workspace. For example, focus group participants agreed that if they had to
meet with just one other person about a nonprivate matter, they could do it in an open area instead of an enclosed
conference room.

Figure 3. Storage in Large Filing Cabinets (Left) and Personal Lockers (Right)

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Design
A central design principle for the general administration workgroups was a completely wireless environment, to enable
mobility. IT added wired jacks, as well—although 60 percent fewer than in a typical Cisco building—for high-speed
communications needs such as PC backups and video streaming. Only administrative assistants were assigned a
permanent workspace, so that their teams would know where to find them without using the location tools they would
use to locate others.

The Connected Workspace floor plan was inspired by a university theme, with open spaces called quads, plazas
where employees can meet informally, a commons area for breaks, and enclosed offices called colleges (see Figure
4). The absence of cubicle walls lets in more natural light and creates a more open and spacious atmosphere.

Figure 4. Cisco Connected Workplace Floor Plan

The designers included different types of work spaces to accommodate different work styles and business needs.

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Figure 5. Workstation with Docking Station, IP Phone, Keyboard, and Screen

● Individual workstations, equipped with:

◦ Docking station, which enables quick connection to desktop accessories such as flat-screen monitors,
keyboard, and mouse (see Figure 5)
◦ Cisco IP 7960 Phone, which employees personalize with their phone number and preferences with a login,
using Extension Mobility or
◦ Cisco IP Communicator, a software IP phone that runs on a laptop and sends voice over the wireless
network. Employees use either wired headphones or a wireless Bluetooth headset to turn their laptops into
high-quality IP phones. Employees who use hardware IP phones tend to retrieve their Cisco Unity voice mail
by phone while those using Cisco IP Communicator on their laptops tend to more often use their laptop
browser to review, listen to, and manage voice mail.
◦ Liquid crystal display monitors at some workstations

● Collaboration spaces, both formal and informal. Formal meeting spaces have closed doors for privacy. They
also have tables, speakerphones, and some IP videoconferencing stations. Two of the largest meeting rooms
can be quickly reconfigured into smaller rooms using a movable wall. Informal spaces have soft seating on
wheels, mobile tables, and movable privacy screens, enabling participants to spontaneously create a
collaborative meeting space (see Figure 6).

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Figure 6. Informal and Formal Meeting Areas

● A quiet space, “the library,” where employees can work without distractions (see Figure 7).
● A lab area to support both IT product testing and new product deployments in the Cisco Connected Workplace
test area.
Employees often move to different areas throughout the day. When Woo was interviewed for this story, for example,
she was seated in a small conference room, which she had chosen for privacy and so that her phone conversation
would not disturb others. After the interview she planned to move to an individual workstation, the library, or a soft-
seating area for individual work.

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Figure 7. “Library” Area Within the Connected Workplace Building

Technology Selection
After WPR developed the workspace requirements, the group brought its requirements to Cisco IT. “Cisco IT was a
full partner with WPR to develop processes that would reduce operational expense,” says Rochon. “We looked at
Cisco technology roadmaps to see what’s on the horizon for IP telephony, specifically to enhance mobility and the
user experience. Some of our recommendations cut costs. For example, in the shared workspace we realized we
could allocate two wired jacks per workspace instead of six, which is the standard at Cisco. At a cost per jack of $200
per line, we’re saving $800 per employee, or $160,000.”

Rochon and his team selected the following technologies:

● Cisco IP Communicator, a software-based application that delivers enhanced telephony support through PCs
with wired or wireless headsets (see Figure 8)
● Extension Mobility, a feature of Cisco CallManager that enables employees to log on within seconds to any
Cisco IP phone to personalize it with their own telephone number and options
● Cisco VT Advantage, for videoconferencing
● Cisco Web Meeting, for audio and Web conferencing
● Third-party tools that enable employees to quickly locate each other in different areas throughout the building
● Video conferencing units inside conference rooms, including interactive white boards and plasma displays, to
enable collaboration with remote participants; many of these units are on wheels so they can be used
throughout the space

Cisco selected the technology at the end of February 2004 and began the pilot in July 2004.

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Figure 8. People Use Wired and Wireless IP Telephony to Stay in Touch

Employee Communications
During construction, WPR conducted workshops with pilot participants to prepare them for what to expect. “The
connected workplace is a big change for Cisco employees,” says Woo. “People are accustomed to working in the
same cube or office every day. Now, nothing belongs to them except their personal locker. Therefore, we realized that
change management would be essential to the success of this project.”

To ease the transition, Woo and the project team communicated regularly with employees to prepare them for the
change and to hear their concerns. “Before the pilot even began we wanted the participants to know what workspace
would look like, how they could work in it, and details about the technology tools,” she says. During design,
construction, and for two weeks before and one month after the move, e-mail or in-person communications occurred
daily. Now the team sends a newsletter when needed, about once a week.

Communications address three types of change:

● Setting. At the beginning, Woo educated the employees about their choices of work setting, including a
workstation, open collaborative space, or closed collaborative space. Employees have the option to work at
home some of the time but are encouraged to come to the office. “Within the Cisco culture, teamwork is
important,” says Woo. “A face-to-face collaborative environment creates an energy that helps people be more
productive. Therefore, we designed an inviting environment so employees would want to come into the office.”
● Personal work style. A choice of work setting gives employees the opportunity to be more productive based on
their choices. Employees can choose the area most conducive to their work, from a variety of meeting rooms
and areas to an even wider variety of individual workspaces. People can work together or independently,
among people or alone—always in a large, expansive, well-lit environment with many windows. “The
workplace is open and comfortable, and I’ve grown to appreciate my ability to select my workplace rather than
being required to work in the same cubicle every day,” says participant Rich Gore, a member of the Cisco on
Cisco IT infrastructure team. Shefali Budhraja, interactive designer with the HR Creative Learning Studio,
agrees: “I wouldn’t want to work in the old cubicles environment any more.”
● Organizational behavior. Employees in the pilot project helped craft etiquette guidelines, such as when it is
appropriate to occupy a conference room. “The very short-term view is that by sitting in a conference room all
day with the door closed, an employee can be productive,” says Woo. “However, if the employee leaves the

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room when privacy is no longer needed, they regain the collaboration and informal interaction that’s key to
organizational success, and also release a resource that others might need. That’s the big-picture view we try
to encourage.”

Figure 9. Employees Requested Flexible Work Station Heights that Can Be Customized for Different Needs

Employees are invited to provide input through the group’s Website. “During the first month or two, employees
submitted many questions and comments, ranging from etiquette suggestions to requests for monitor stands with
height adjustment,” says Woo. WPR acknowledged all comments and addressed them as appropriate (see Figure 9).

Designing a WLAN for Dense Populations

Because the Connected Workplace proof of concept encourages mobility and has the capacity for 200 employees
instead of the 88 that would ordinarily occupy a space of the same size, Cisco IT needed to build a wireless
infrastructure that could support a denser-than-usual user population. “In regular buildings, Cisco IT provides wireless
data connectivity at a density of about 25 employees per access point,” says Dave Castaneda, member of the
technical staff in Cisco IT. Each quarter of a typical building, therefore, has 2 or 3 wireless access points, whereas the
proof of concept building has 10. Reasons for needing more access points include:

● More than twice as many employees can work in the proof-of-concept building than in a typical Cisco building.
● Employees are encouraged to cluster in small areas, further increasing density.
● Cisco IP Communicator uses the same wireless connection used for data, adding to wireless bandwidth
requirements.
Cisco IT continually monitors wireless usage to ensure that the infrastructure delivers the needed performance. In
general, Cisco IT tries to ensure that no more than six to eight employees associate with a given access point at one
time. “We achieve this ratio manually by taking ‘snapshots’ of the number of associations on each access point,” says
Castaneda. For example, when employees in the pilot began congregating in a particularly sunny area near the
windows, Cisco IT discovered that more than 25 laptops were associated with a single access point and responded by
adding an access point in that area. In the future, Cisco IT plans to install the CiscoWorks Wireless LAN Solution
Engine (WLSE) to track the number of associations and ensure that no single access point is overloaded.

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Supporting voice over a wireless LAN requires special design attention. “Wired networks set up for voice can provide
a measure of call admission control, but wireless access points currently can’t differentiate between a voice and data
stream,” says Castaneda. Employees who place wireless voice calls from Cisco IP Communicator receive the needed
voice quality when the wireless access point has sufficient capacity. Some employees use the wireless Cisco IP
Phone 7920, which provides a form of call admission control called the Quality-of-Service Basic Service Set (QBSS).
Castaneda explains, “The Cisco IP Phone 7920 uses the Received Signal Strength Indicator (RSSI) to identify the
access point with the best signal strength, and also uses the QBSS to determine how many voice channels that
access point is currently supporting. If the strongest access point is already supporting the maximum number of voice
calls it can support with good quality, the wireless IP phone roams to the next strongest access point signal with an
acceptable QBSS voice channel utilization. This ensures that wireless IP phones make a call only if the wireless
network has the capacity to carry the call with sufficient bandwidth.”

RESULTS
Cisco WPR is evaluating the success of the proof of concept in terms of effectiveness and efficiency. Effectiveness is
the increase in productivity and participant satisfaction resulting from the integrated workplace design and IT
solutions. Efficiency is the improvement in key metrics such as space utilization and cost and portfolio optimization.
Greater Employee Satisfaction

WPR performs periodic interviews with each organization and plans to administer a survey. “Common feedback is
that most employees like the choice of work environments, cutting-edge technologies, light, openness, and the
opportunity for interorganizational collaboration,” says Ross. Some employees and workgroups found it more
challenging to make the transition to a mobile environment—typically the ones that spend most of their day at desks
or need to work with paper documents. Even these employees indicated that they like the variety of spaces and
technologies available to them. “In the end, the most important question is, ‘Would you go back to the old
environment?’” says Ross. “To date, most participants say no.”

Cost Savings
The shared workspace generates significant cost savings for Cisco, as shown in Table 1.

Table 1. Cost Savings from the Shared Workspace

Cost Category Percent Savings

Real estate rent: Accommodating more people in the same amount of space 37%
Construction: Building a smaller space than typically required for 140 employees 42%
Workplace services: Reducing utilities and maintenance costs, and nearly eliminating the 37%
costs of moves, adds, and changes for workspaces through the use of flexible furniture
settings
Furniture: Purchasing less (and slightly less expensive) furniture than typically used in 50%
cubicles
IT capital spend: Spending less on switches and switch ports 40%
Cabling: Reducing the number of wired IP cables required per workspace 60%
Equipment room space: Racking fewer switches because of wireless infrastructure 50%

The total cost of the space is $117 per square foot, allocated as follows:

● Construction: 51%
● Technology: 18%

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● Furniture: 15%
● Design and visual communication: 10%
● Change management: 6%

LESSONS LEARNED
The most challenging aspect of the project for IT was support, according to Rochon. “Because this was a proof of
concept, we had to negotiate with the Cisco IT support team to provide resources to answer questions about Cisco IP
Communicator and other newly introduced technologies. The lesson learned was to engage the support team early
and provide them with support information in the form of FAQs right away so they could become familiar with issues
that are unique to the shared workspace.”

Another lesson learned was the importance of providing power outlets at most of the workplaces. Cautious about the
limits of their laptop battery life, employees need to stay connected to the wired power network at least part of the
day, and seats near power outlets proved popular. WPR tried providing uninterruptible power supplies in various parts
of the building, but the units began beeping after about an hour to signal low power, disrupting nearby employees.
Currently, WPR is addressing the need by providing more power drops and laptop charges at more locations. An
option under evaluation is to provide shared battery recharging stations where employees can exchange their
exhausted laptop batteries for fully charged ones.

At the beginning of the proof of concept, the organizers returned furniture and collaboration tools to their “home”
locations at the end of each week. “We encourage people to reconfigure the furniture to suit their work needs,” says
Woo. “We realized at one point that if a particular piece of furniture or tool is always moved to a certain location or
arranged in a certain way, perhaps the new location should become the designated home.”

NEXT STEPS
Designing the optimum work environments for different types of workers requires an in-depth understanding of the
movement of people within these environments. Cisco IT plans to monitor employee movement using radio-frequency
ID (RFID), WiFi, and ultra-wideband tracking. To avoid introducing privacy concerns, Cisco IT will not associate the
tracking with a particular individual. Instead, it might track a badge that employees are asked to grab out of a bin
when they arrive at work, for instance.

To enhance safety and security, IT is investigating the use of optical tools to monitor the number of people who enter
and leave the building. For example, when a person with a Cisco badge enters a building, another person without a
badge might come in directly after. “It’s important for Cisco Security to be able to monitor this activity and track people
coming in the building,” says Castaneda. “Similarly, it’s important to be able to track the number of people in a
building in the event of an emergency to ensure that nobody is trapped and unaccounted for.”

Yet another future plan is installing a “virtual building receptionist,” an interactive screen in the lobby that can answer
basic questions, page employees to come out and meet their visitors, provide temporary badges to visitors, and
connect visitors to a live receptionist in another building when needed.

Cisco has completed another proof of concept for the sales environment in Charlotte, North Carolina, and is planning
yet another for a call center outside the United States. “After the final results of the proof of concept are in, we’ll
evaluate whether and how we need to modify the Connected Workplace to roll it out in other Cisco offices around the
world,” says Ross. “Several Cisco companies tour the environment every week to investigate how we’re integrating
people, process, and technologies to support our business objectives. For Cisco as well as our customers, the most
compelling benefits include real estate cost savings, an enhanced ability to collaborate, and increased employee
satisfaction.”

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FOR MORE INFORMATION

To read the entire case study or for additional Cisco IT case studies on a variety of business solutions, visit Cisco on
Cisco: Inside Cisco IT www.cisco.com/go/ciscoit

NOTE
This publication describes how Cisco has benefited from the deployment of its own products. Many factors may have
contributed to the results and benefits described; Cisco does not guarantee comparable results elsewhere.

CISCO PROVIDES THIS PUBLICATION AS IS WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR
IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
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