There is much doom and gloom in the Japanese market today. Credit unions have gone under, the economy seems perpetually stalled, and recruitment for new college graduates is shaping up to be even icier than last year. This pall coupled with the demise of the bubble economy, the strengthening of the yen and the accompanying squeeze on exports are just some of the reasons behind a serious management rethink taking place in even the grandest Japanese boardrooms. As existing hiring, pay and work practices come under closer scrutiny some Japanese firms are beginning to dabble in various work option schemes. Naturally, smaller companies are proving the most nimble here, but NEC is one example of a corporate behemoth which has gone further than many in testing the teleworking waters.
NEC's initial experimentation with remote working dates from its integrated network systems (INS) testing at Kichijoji Satellite Office in 1984, but reached a new level of commitment in the late 1980s-early 1990s with its involvement in several joint pilot programs, and the establishment of its own in-house program in 1992. In June 1992, NEC began leasing 33 square metres in the 1,560 square metre Urawa Hologon facility for its Urawa Flex Office. Situated some 60 minutes from the Tokyo head office, the Flex Office is, in effect, a satellite office offering considerable commute savings for workers posted there. The facility has five workstations and access to such shared facilities as reception, OA corner, lounge, relaxation corner and fitness room. Starting with 10 participants in Stage 1 (June-October 1992), the pilot progressed to Stage 2 (November 1992 - April 1993, 13 participants) and Stage 3 (May-September 1993, 20 participants). Currently, the facility is used on a regular basis by some 18 workers, two thirds of whom are female system engineers involved in software development.
Around the same time, NEC also established a drop-in facility in central Osaka to facilitate customer servicing by employees based at their Kansai offices in the Osaka Business Park, approximately 1 hour from downtown Osaka. Use of the 340 square metre facility is extremely high, with a monthly average of 519 workers dropping in to use either individual workstations, meeting rooms or both. While not a satellite office in the strictest sense of the term, this flexible approach to providing employees with diverse kinds of workspace is indicative of NEC's commitment to liberating its workforce from static
locations.
NEC's telework arrangements are not only confined to the company proper, but are also being used by some of its subsidiaries, most notably NEC Computer Systems. This company has a long-standing work-at-home program, professionally managed and with close checks on work conditions and worker satisfaction for its off-site staff, usually drawn from the ranks of ex-NEC employees to obviate training requirements.
NEC Chairman and Vice President of the Keidanren, Tadahiro Sekimoto, places NEC's interest in telework against a backdrop of advances in multi-media and changing workstyles. By making it increasingly possible to work remotely, multi-media is promoting both telework and the virtual office. Secondly, changing workstyles, mainly in the form of discretionary work systems and flex offices, are being driven by diversifying worker mentalities and the need for greater productivity.
According to in-house surveys and work by this author, both the Urawa and Osaka Flex Offices have been successful, although use of the Urawa facility has been hampered somewhat by sudden meetings and other unforeseen developments preventing certain workers from teleworking on their scheduled days. Efficient management of the available space to ensure full occupancy is an issue which remains to be solved, but the productivity gains registered (150-200% reported increases) guarantee the continued existence of these facilities. In an encouraging move, NEC has recently expanded its program by opening a new facility in Machida, a suburb of Tokyo, in May of this year with 8 individual work booths and some 65 employees registered. Partially to overcome the space allocation problems experienced at Urawa, an e-mail space reservation system is currently being tested as a way of improving facility occupancy.
All in all, traditional Japanese management practices are further entrenched than their North American or European counterparts. This has been exacerbated by the slow up-take of information technology in the typical Japanese workplace. NEC's efforts, however, show that it is not impossible to start the telework ball rolling. As in other companies around the globe, the key seems to be a firm commitment on the part of top management and a willingness to experiment with the new.
CONTACT
Wendy Spinks Director, International Flexwork Forume-mail: spinks@apic.or.jp
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