An interesting model: the “virtual” or “distributed” office

I read a good Business Week article a few months back that examines a few companies who

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go completely (or nearly) Remote with their employees.

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Some of the key points the article explores are applicable to the Remote Revolution as a whole, such as:

  • Cost Savings due to accessing global talent: “Cost is also a factor. Virtual companies can save money by leasing smaller offices or foregoing an office entirely. Moreover, they can save on salaries. Instead of paying high Silicon Valley wages, for example, companies can base their pay on the lower costs where remote employees live.”
  • Tools are crucial to making Remote work: “The concept of ‘out-of-sight, out-of-mind’ is a big danger for employees, as is failing to share basic details about strategy, projects, and changes in plans. To avert such problems, most internal discussions at Automattic take place on what’s known as P2, a blog built in house that has specific pages for dozens of teams and topics. Announcements, conversations, and questions are posted to the blogs so that everyone interested can stay up to date. If employees have an inconsequential conversation, they often use Skype or ICQ instant messenger.” AND: “…e-mail traps information that should otherwise be shared,” so instead of using email they prefer to broadcast meetings and publish meeting notes. I like this a lot and have mentioned in previous posts the importance of using Remote tools like Evernote, that allows you to share notes with others smoothly.
  • When Remote working is the norm, it works: The author of the article also makes a subtle yet significant point about companies that embrace Remote: “What is different about distributed companies is the scope. Rather than being an option, working remotely is the norm and central to how the business operates.”

 

We are seeing this now time and time again where companies are able to successfully implement Remote ways of working and by doing so realize tangible benefits. But the article points out, “the distributed model appeals almost exclusively to small businesses, particularly in the technology industry. No one can point yet to a large corporation using a similar model.”

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Maybe not – or, perhaps they are using the model and simply not calling it a “virtual” or “distributed” model. Many large firms embrace staff augmentation, which, although is not work-from-home, is very much based on the fact that work can be done in locations around the world that have talented people who can be hired in a way that makes financial sense. As discussed before, Remote is bigger and wider than telecommuting.

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