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The Death of the Virtual Office

June 1st, 2009 @ 6:54 am

9 Comments

Categories: Management

Tags: Davenport Co., Virtual Office, Worker, Telecommuting, Collaboration, Human Resources, Workforce Management, Sean Silverthorne

In a global economy, workers can’t be tethered to their desks. Organizations must be designed to provide staffers with maximum freedom to work where they are most productive. And telecommuting must be encouraged to promote family balance and a healthier environment.

Yes, the virtual office seemed very much a hot trend this decade. But maybe no more.

Tom Davenport sees signs that companies are heading back to consolidating employees, especially top officers, at central headquarters. He points to Eclypsis, an Atlanta software developer, that recently dismissed its Silicon Valley-based CEO after he refused to move to Georgia.

Co-location makes sense in certain situations, writes Davenport on Harvard Business Publishing:

“Senior managers, in particular, are a group that benefits from high-bandwidth interpersonal contact. Henry Mintzberg and other researchers have shown that their jobs typically consist of a variety of short, and frequently unplanned, interactions. It’s much easier to accomplish these when you are all in the same vicinity.”

Are remote workers becoming more rare in your organization? Is “face time” a more valuable commodity as the recession rolls along? Take our poll.

Is the virtual office losing support in your company?

View Results

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(Image by DDFic, CC 2.0)

 
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  •  
    1

    tom_blumer

    06/02/09 | Report as spam

    RE: The Death of the Virtual Office

    I was just wondering about the calculation of the poll. At the time of my vote, the No votes represented 61% while the Yes votes represented 43%.... interesting calculation happy

    Nevertheless, this is definitely a hot topic.

  •  
    2

    edfenech

    06/02/09 | Report as spam

    RE: The Death of the Virtual Office

    The VO, like all things in business, needs to factor in the specific needs of the business. There are many roles in a company that lend themselves to a VO arrangement and there are others that would be highly detrimental to the company.

    Reading this article I can fully appreciate that senior management operating remotely would in fact negate about 30%-40% of their effectiveness; such as being seen to lead, being able to see first hand the dynamics of the organisation etc. But then again with some of the stories coming out relating to corporate mismanagement, perhaps the issue isn't the VO but more the VCEO.

  •  
    3

    ndlicht1

    06/02/09 | Report as spam

    RE: The Death of the Virtual Office

    I know of a company that is completely virtual. With on line video conferencing, webinars, easy internet, Its easy to have and hold meetings, even log on and be connected in multi live ways as if everyone was in the room.

    Its surely a matter of how the particular company has established its method for discussion, decision making and leadership.

    A purely virtual company, by definition, would not require Senior management to be resident at HQ because there is no HQ.

  •  
    4

    rawhite1969

    06/03/09 | Report as spam

    RE: The Death of the Virtual Office

    it is all about the culture and how it is managed. VO works if the company sees value in it and is committed to making it work. Not everyone is cut out to VO either. VO is loosing favor where I work because too many in the VO environment have lost touch and now aren't as effective as they once were in that environment.

  •  
    5

    scribbler60

    06/03/09 | Report as spam

    RE: The Death of the Virtual Office

    I think the death of the virtual office or work-from-home initiatives can be directly tied to the economic slowdown, the rising unemployment rate and the re-emergence of "old style" management.

    Old style management is more about control and less about productivity.

    When times were relatively good, management initiatives were developed to encourage their employees to work happier, healthier and smarter. Some of those initiatives included results-only-work-environments (the electronics giant Best Buy saw amazing increases in productivity using this initiative) and work-from-home plans.

    But since the economy soured, there's been a re-emergence of "management by time control." That is, it doesn't matter how productive an employee is - what matters is that they're at their desk on time, they're chained there for 8 hours, and "working from home" initiatives are only pushed by those who aren't truly committed to their organization.

    Effectiveness and productivity takes a back seat to control.

    Repeated studies have shown that employees who are happier are more productive and tend to be more committed to their organizations than unhappy employees. No surprise there. And what makes employees happy? One big factor is having the option to work from home if they so choose (or if they need to, if, for instance, they're caring for young children or managing an elderly parent).

    But old style "time control" management disregards these findings and, sadly, is more interested in keeping employees at their desks even if they're not terribly productive there.

  •  
    6

    R. B.

    06/03/09 | Report as spam

    RE: The Death of the Virtual Office

    VO has not been widely accepted at my place of employment, mainly because some managers feel they can't "control" their employee if they can't look over their shoulder. To me, this is a huge misconception and is rather short-sighted and close-minded. I think it can also severely limit innovation, creativity and productivity. While some jobs do require a person to be on-sight, there are many that don't and could easily and effectively be handled by a remotely placed employee. I think it takes more communication and organizational skill to manage an employee who isn't in the office and this is probably part of the reason why it's not as popular with some. You have to be committed to keep that employee involved and they have to have a good work ethic. With the right people in jobs that lend themselves to a VO environment, it can be a very effective business strategy.

  •  
    7

    scribbler60

    06/03/09 | Report as spam

    RE: The Death of the Virtual Office

    R. B. wrote: I think it takes more communication and organizational skill to manage an employee who isn't in the office and this is probably part of the reason why it's not as popular with some.
    --------------------
    Exactly.

    It's the lazy manager's way of maintaining control. It actually takes some effort and skill to manage the work of people being done off-site. It's much easier - and takes virtually no management acumen at all - to insist that employees stay chained to their desk.

  •  
    8

    BACJim

    06/03/09 | Report as spam

    RE: The Death of the Virtual Office

    The death of the virtual office has been greatly exaggerated. I work for a Fortune 10 company with 300,000 employees worldwide. Significant numbers of our administrative support and management people work remotely, with the number growing all the time, and our management team members are not all located in the same office (or even the same state). The virtual office is anything but dead.

  •  
    9

    Summerdog

    06/08/09 | Report as spam

    RE: The Death of the Virtual Office

    I work in a VO and it is a godsend. I am able to schedule my customer contacts without having to "touch base" with a brick and mortar location that would waste time that could be used to fulfill my daily duties and enhance our customer focus. Woe to those firms that don't take advantage of the VO!

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