Telework is an integral part of an evolution of the modern workplace that is having a significant impact on the way the Federal Government carries out its business. Major advances in information technology and computer capabilities have opened the door for expanding telework throughout the federal workforce.

Evidence that telework helps to increase productivity and enhance organizational performance continues to mount. At the same time, there has been a change in societal and workplace values that has motivated many workers to seek flexible work arrangements. With a significant proportion of the federal work force eligible to retire in the immediate future, telework offers a potent tool for recruiting and retaining employees.

OPM also recognizes that one of the most pressing environmental problems in major metropolitan areas is traffic congestion and the resulting air pollution. One way to reduce traffic congestion and improve air quality is to encourage telecommuting. In the Washington D.C. metropolitan area alone, long-term construction projects and explosive population growth are straining local road and mass transit systems, adding further impetus for expanding telework within the Federal Government. Annual national studies consistently place the area among the nation's worst regions in terms of traffic congestion and the amount of time individuals spend in traffic jams.

In the aftermath of September 11, telework has become an option of necessity for many employees. Displaced workers in the New York area and at the Pentagon were left without offices. Road closings and increased security precautions exacerbated already severe traffic congestion. The emergency highlighted the importance of a decentralized structure to assure continuity in the face of major disasters. Telework supports the kind of decentralized and flexible organizational structure crucial for maintaining operations in emergency circumstances.

For all these reasons, the timing is right for increasing the Federal Government's role in telecommuting. Government leaders recognize the need for a more flexible, efficient, productive and resilient workforce, along with the need to reduce traffic congestion. Telecommuting is a proven method to meet these needs.

Overall, agencies are exhibiting strong motivation to implement or expand telework programs. The sizable increase in the percentage of federal teleworkers from April through October is an important indicator of a stronger agency commitment to expanding telework opportunities. However, the still low overall telework rates confirm that much work remains. Traditionally, work was linked to a physical location. Employees' habits, practices and even patterns of self-identification are frequently tied to the physical location of the workplace, and identities are sometimes associated with where a person works. Conversely, managers are accustomed to interacting with employees face-to-face. Changing the way managers and employees work and helping them understand the concept of work as independent of location, requires a long-term process of cultural change.

The philosophy expressed in the phrase "work is not a place" must be integrated into agencies' operations, and this will take time. Telework programs are multi-faceted in their impact and operation, and no matter how beneficial for the organization's culture, change is always very difficult at the beginning. We will continue to work with agencies as outlined in this report to help them make the transition. We will also continue to monitor governmentwide progress, making adjustments in our plans accordingly, to ensure full implementation of the telework mandate encompassed in P.L. 106-346.

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