It's no secret that agencies are being asked to do more with less. In June, President Obama issued a memorandum ordering agencies to take out $8 billion in real estate costs from their budgets by 2012, while at the same time estimates are that the government needs to hire close to 275,000 people to deliver on its mission. Is there a way to accomplish both of these seemingly incongruent goals at the same time? Yes — but only when work becomes what you do, not where you go.

Our research and experience tells us that:

• In the federal government, the average facility cost per employee is $12,000 to $15,000, yet 30 percent to 40 percent of physical workspaces are vacant at any given moment on a regular business day.

• Reducing real estate costs is one way to end the expense of moving to mobile computing since laptops can cost up to two times more than traditional desktops with much shorter shelf life.

• Traffic costs Americans an estimated 4.2 billion hours of lost time, and the Washington, D.C., area is one of the nation's worst traffic areas.

• Commercial buildings are responsible for 39 percent of all greenhouse gases in the U.S. and commuting represents 10 percent of an individual's carbon footprint.

• Compared with people who commute to the office, people who work from home can put in an average of 19 additional hours per week more before feeling the same level of work-life conflict.

• Studies show that retention improves when people work virtually.

Agencies should consider a coordinated strategy to rethink and redesign how and where work gets done. Organizations that have taken an integrated approach to workplace flexibility have seen benefits from lower costs, more efficient and effective operations, and greater productivity.

The Patent and Trademark Office (PTO) has more than 5,500 workers who telework, which has saved millions of dollars in real estate costs and lowered carbon emissions, while increasing productivity by 10 percent. Before its telework program, PTO was losing one examiner for every two it hired. Today, not only is it retaining its examiners at a higher rate, it is recognized as an employer of choice.

PTO achieved this success by starting with pilots and tracking results, building the case for scaling flexibility. The Office of Personnel Management is taking a similar approach, conducting pilots within three different areas of the agency, measuring results, building the case and communicating success.

A common misperception is that flexibility won't work in a unionized environment, but Frontier Communication's story tells a different tale. As recounted in the forthcoming book by Cathleen Benko and Molly Anderson, "The Corporate Lattice: Achieving High Performance in the Changing World of Work": While consolidating the operations of several call centers, Frontier negotiated with its union a provision that displaced call center workers could work from home.

"We took a ‘let's try it and see' attitude and were very surprised with how well things worked out," says Frontier chairman and CEO Maggie Wilderotter.

Indeed, 30 percent of Frontier's customer service agents now work from home, and, on average, these workers are 25 percent more productive than those who work in call centers. Retention of work-at-home agents is also 100 percent better than retention of agents who work at the center.

The workplace of tomorrow is here. Those agencies that have met the changing world of work in an integrated, rather than piecemeal, way are reaping the benefits.

Seth Siegel is a director in technology strategy and architecture for Deloitte Consulting LLP and author of the report "Why Change Now? Preparing for the Workplace of Tomorrow." Anne Weisberg is a director in talent at Deloitte Services LLP and co-author of "Mass Career Customization."