CIGNA provides worker benefits in the United States and select international markets. Its products include healthcare coverage; retirement services; investment management; and life insurance. The company places considerable emphasis on the satisfaction of its employees, advocating a productive yet healthy balance of work and personal life.

"Talented and committed employees are our true competitive advantage," says Joe Dougherty, CIGNA's director of real estate strategy and client relationships. "The primary focus of E*Work is to support our overall corporate mission of attracting and retaining a highly talented and diverse workforce."

To achieve this aim, CIGNA's real estate department (CRE) works in partnership with the company's operating divisions to integrate people, space, and technology in a way that demonstrably improves fiscal results. The E*Work initiative does not work without effective partnerships.

"The real estate department was originally viewed as a service provider but, over the years, we've evolved into an entity that functions more as a partner with our operating divisions," says Dougherty. "There's a lot of responsibility that comes with the new role because when you are viewed as a partner, more is expected from you."

Yesterday, Today and Tomorrow

Operating expenses are a critical factor in today's marketplace. By leveraging a variety of technology-driven strategies, CIGNA's E*Work program reduces company operating costs while simultaneously increasing worker satisfaction.

In prior years, CRE focused primarily on measuring performance against industry-standard metrics: cost per square foot, number of square feet per employee, and total cost of portfolio. Today, CRE focuses on its role as a strategic partner with the operating divisions.

"Now we spend more time collaborating, helping with budgeting, and doing financial analysis," says Dougherty.

CRE's vision for the future is to increase the company's productivity by creating environments that enable people to work in more efficient ways. A significant component of this strategy is the company's award-winning E*Work program. The initiative enables employees to work remotely from anywhere by establishing clear procedures, and supplying workers with technology, safety, and security equal to those used by CIGNA's in-office employees.

"What we're trying to do is embed E*Work into the corporate culture as just another way of doing business," says Dougherty.

Driving a Digital Desk

Initially, E*Work started as part of CIGNA's total Integrated Workscape Strategy, an initiative aimed at maximizing CIGNA productivity. E*Work pilot programs were implemented in Phoenix, Chicago, and three New England sites, each comprised of mixed CIGNA healthcare job functions— including case managers, medical managers, sales, operations, and finance.

To be considered for the program, employees must be proven strong performers. They must also have a dedicated work area and appropriate technology available in the home. Qualified E*Workers are provided with the equipment necessary to perform their jobs effectively. Computer equipment is always provided. Telephone, fax/printer/copier, and furniture are provided based on specific job requirements and needs. An outside vendor handles the installation of network cabling and connectivity.

CRE also partners extensively with CIGNA's Human Resources and Information Technology divisions to provide consistent support for remote workers.

"As a full partner, if an E*Worker has a human resources or technology issue, we have established arrangements with our HR and IT teams to take care of any problems that arise," says Dougherty.

Of course, one of the most significant concerns when creating a network-based work environment is security. CIGNA uses a combination of Virtual Private Network (VPN), firewall software, and single port routers to securely meet its connectivity needs.

By the end of 2002, CIGNA had 3,000 employees enrolled in the E*Work program.

"We have a lot more employees waiting to join. Our main challenge is getting them all enrolled properly. In addition to installing the necessary technology infrastructure, a lot of other activity goes on behind the scenes including training managers and co-workers on how to maximize E*Work effectiveness," says Dougherty.

One of the main obstacles that CRE had to confront when implementing E*Work was shifting the corporate mindsets at the middle management level.

"The previous perspective was that you need to have employees in front of you and mange them very tightly," he says. "E*Work, on the other hand, is more goal oriented. You give employees an objective and manage their ability to achieve results, as opposed to overseeing every single thing they do."

Dougherty explains that employees have also had to adapt to implementing new, more efficient ways of working.

"People who were previously unfamiliar with these tools have had to adapt in order to perform their job. So they're becoming more technologically proficient and therefore more productive," he says.

Staying Connected

An essential element of the E*Work program is known as Touchdown space—a shared flexible office strategy that allows virtual workers to check into a corporate office and stay connected. Touchdown spaces are designed for individual or team work, and are divided between first come-first serve and reserved workstations.

"Our job is to provide space that enables people to work anytime, anywhere and still have the ability to come back to the office periodically and meet with their managers and peers."

Touchdown space serves a variety of needs. Wheeled furniture encourages flexible collaboration. Desks are equipped with network connections for workers with laptops; often there is a shared computer available on site, a phone/work zone, and a small meeting area. E*Workers can use the company's Microsoft Outlook program to check availability and reserve space in advance of their arrival.

Leveraging Technology for Global Success

By all accounts, E*Work is a major success. In addition to winning the Global Innovator's award, the program recently received a commendation from the state of Arizona for improving the environment by reducing the number of employees who commute daily to its Phoenix site.

Undoubtedly, the program will continue to have a significant impact on CIGNA's culture in the coming years. It has already helped the company reduce spending by $2.6 million and reduce turnover cost by about $8 million. Improvements in productivity have been measured between six and 15 percent.

Turnover-related expenses at CIGNA run in the neighborhood of $250 million a year. Though the program is still in its initial stages, figures indicate that E*Worker turnover is six percent less than office employee turnover, resulting in significant cost savings. In addition, CIGNA estimates that the return on E*Work investment exceeds 75 percent.

"The reason we get such a high return on investment is because we're eliminating big chunks of rent. We review our properties on a lease-by-lease basis and, when the lease expires, we decide if there are some E*Work opportunities at that location that will allow us to reduce the amount of space we need," says Dougherty.

In addition to minimizing rent costs, E*Work supports rapid growth and integration by allowing CIGNA to take on more skilled employees over a greater geographic range, with less expense.

"By giving employees the ability to work from anywhere, our businesses become a lot more flexible and diverse. We can retain a highly skilled geographically diverse workforce, which is essential to achieving our growth goals in the global market," say Dougherty.

By Johnathon Allen

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