Moving the virtual organisation forward.

[check] This checklist is written for managers wishing to gain a grasp of both the theory and practice of making the virtual organisation work.

The concept of the virtual organisation embraces changes to established organisational structures and methods of working. This checklist considers the key factors involved in making a success of the virtual organisation. Some kinds of organisation will find it easier to embrace virtuality, but all managers need to familiarise themselves with what is materialising as an increasingly widespread management model.

Definition

There is no single definition of the virtual organisation. Most writers agree, however, that it embraces the concept of organisational flexibility unconstrained by the traditional barriers of place and time. Essentially it relies on the exploitation of cyberspace--the electronic medium for data exchange brought about by the integration of telecommunications and computer software. It indicates notions of a hidden reality behind the scenes, where results are not achieved in traditional ways. It describes the thought that an organisation, team, individual, service, or even product need not be "physically there" although they appear so. It is a term which brings together initiatives which organisations are exploring to make themselves more responsive to changes in today's marketplace.

"A virtual company is where work is performed outside of the definition of place. There's no factory floor, no retail store, no conference room, no cubicle farm. Virtual work is primarily the manufacture, retail, and distribution of intellectual property." (Jeanne L Allert in Training and Development USA, vol 55 no 3, Mar 2001, pp 55-58.)

Benefits of virtuality

* Distance is no object to the accomplishment of work, meetings, collaborations or conferences.

* Significant productivity improvements.

* Reduction of overhead costs.

* Work can be spread across time zones.

* Organisations can focus on what they are best at.

Requirements for virtuality

The benefits of the virtual organisation cannot be realised unless:

* staff are empowered and trusted

* a reciprocal loyalty is established between employee and employer

* all employees, not just knowledge workers, are involved

* management is prepared to explore new ways of working

Action checklist: Getting the platform right

1. Don't mess with virtual working

It's either to be central to your organisation's planning and development or it's not. You have to either treat virtual workers as key personnel or not. Virtual workers are not by managed by face-time but need to feel part of a collective effort which comes mores from the alignement of shared values than through elaborate forms of co-ordiantion and control. Virtual workers are judged by results and the organisation's / team's recognition and reward system should respond to this.

2. Get the training and support mechanisms right

If virtual workers are to work largely from anywhere, they need the communication, updating and support mechanisms which enable that. Both technical and team support processes need to be fully operational with clear understanding of each member what they may expect from others, or from the Cnetre if there is one. Such processes need to be flexible and adaptable as team members shift with new and evolving projects.

3. Adopt cultural diversity

No longer a choice but a necessity. Team members will emerge from different cultures as well as different organisations and they will expect to be able to do things their way. They will have varied experiences of working in virtual environments, hence the importance of clarifying goals and processes and getting the support mechanisms right..

Action checklist: Getting the people right

1. Make sure the potential for chaos is eliminated

If not eliminated then as much reduced as possible. The tenets of the steps above would appear to remove much of the older-style control mechanisms that have characterised organisational working for many decades. Managing 'virtually' is not so much 'laissezfaire' as ensuring that certain shared values--understood rules and expectations are in place amongst the participants.

2. Ensure team members have a core IT capability.

Distance working which is wholly reliant on communications technologies cannot be expected from people who simply do not have some basic core competencies. There are wide ranging levels of technical know-how, but people need to be comfortable with technology as there will be day-to-day problems to resolve, such as with ISPs, software installation, familiarisation with the vagaries of, and patience required with, help desks.

3. Get the start-up right

When undertaking a virtual project, remember that face-to-face contact is important to building a relationship even if this can only be once at the beginning. Make sure the virtual worker is clear on what is to be expected, not only in terms of results, but in terms of who is to supply what in terms of hardware and consumables. A virtual team leader may need to set upper and lower limits of what is expected, and will need to feel comfortable that team members are motivated from within for the task in hand and that there may not be repeat opportunities for re-assurance. Virtuality speeds up the recruitment process.

4. What makes the virtual team worker tick?

Is it just cash? Or is it being a loner grappling with problems which may be a nightmare for others? If the team worker has qualities that the organisation clearly needs, then it can be a question of unearthing the key driving factors which will help unearth the maximum response or contribution. If the individual comes from a recommended source then the answers should be forthcoming with the recommendation. It could be that the individual's reputation and requirement for further contract work is the driver. Early 'best practice' points to the challenge of the work to the individual as a critical succes factor.

5. Make sure rules are understood but keep them simple.

Individuals need plenty of rope if they are to deliver. Left to their own devices on how they deliver does not mean enough rope to hang themselves, or the project. Virtual working is abouyt intellectual property and many individuals are rightly jealous of it. New kinds of agreed control are needed here defining fair benefit from collective effort--these often take the form of software, access or reuse licences.

Dos and don'ts associated with moving towards the virtual organisation

Do

* Ask yourself where the organisation will be in 5 years' time.

* Look at what competitors are doing.

* Think in terms of genuine trust between colleagues, staff and partners.

* Look at success stories--the case literature is growing

Don't

* Ignore how IT and telecommunications can change the way you do business, and change what business you do

* Underestimate the pitfalls, or the costs, in changing traditional ways of working.

* Think in terms of fixed structures or face-time management control.

* Think that virtual working will go away.

Useful reading

Books Implementing virtual teams: a guide to organizational and human factor, Abigail Edwards and John R Wilson Aldershot: Gower, 2004

Managing in virtual organizations, Malcolm Warner and Morgen Witzel London: Thomson Learning, 2004

Human resource management in virtual organisations, Robert L Heneman and David B Greenberger eds Greenwich Conn: Information Age, 2002

Culture dot com : building corporate culture in the connected workplace Peg C Neuhauser, Ray Bender and Kirk L Stromberg Toronto, Canada: John Wiley, 2000

Virtual working : social and organisational dynamics, Paul Jackson ed London: Routledge, 1999

Journal articles

Going virtual, Phillippa Collins Management Services: Jun vol 47 no 6, 2003, pp8-12

Cutting the wire, Daily Telegraph 6 Oct, 2000 pp23-26

The virtual organization: emerging forms of ICT based work arrangements Martin Atkins and Patrick Dawson

Journal of General Management: vol 26 no 3, Spring 2001, pp41-52

Thought starters

* How do you manage people whom you do not see? (Handy)

* In the future, some organizational functions may exist solely in computer systems (Barnatt)