Insight and Innovation | Managing in a Virtual Environment

Are you Ready for Virtual? - Managing in a Virtual Environment

By Alyson G. Getty, Consultant

Maybe nobody asked you yet, but are you ready for virtual? Sure you may have mastered e-mail but are you truly prepared to manage and be managed in the "virtual work environment"?

Today technology is making it possible for organizations of all sizes to completely redefine where and how work gets done. The virtual workplace, in which employees operate remotely from each other and managers, is a reality and will likely become even more common in the future. The right mix and management of this environment can potentially lead to significant organizational improvements. However, as with any change in organizational environment, the silver wand could become a virtual headache. While the case is still being made for the benefits of the virtual workplace, the concept has appealed to a variety of corporate stakeholders.

Contrary to popular belief virtual work arrangements are more than mere perks for employees. In fact, the quantifiable cost savings can be quite substantial. According to a report by IBM, the technology giant saves forty to sixty percent per site by annually eliminating offices for all employees except those who truly need them (Cascio, 2000). Other such savings are the results of increased employee productivity and higher per salesperson revenue for virtual staff.

In addition to cost savings, organizations that are blurring office boundaries have reportedly improved customer services and increased market access. Another noted advantage has been the environmental benefits due to decreases in office consumption and commuting emissions (Cascio, 2000). While the flexibility and increased cost-savings offered by such organizations are real benefits, very few companies have developed management approaches that make virtual work effective.

The Varieties of Virtual

Successful virtual offices require radical new approaches to evaluating, organizing and informing workers (Davenport and Pearlson, 1998). An organization considering a move in this direction must be clear about the needs of the organization and select an appropriate virtual arrangement that is aligned with those needs. Organizations have five types of situations from which virtual workplaces may operate (Davenport and Pearlson, 1998):

	Telecommuting - Workers operate from a fixed office, usually from home. Provides increased flexibility and potential increases in productivity.
	Hoteling - Workers come into the office frequently and reserve a "hotel room" cubicle to receive calls and link up a laptop. Provides flexibility with work from client sites, but may present problems when it is easier for employees to work from home rather than come into the "hotel."
	Tethered - Workers have some mobility but are expected to report to the office daily. Designed to stimulate creativity but demands more private and redesigned space to allow workers to wander.
	Home - Workers have no office at all. Work is performed from a home equipped with furniture, computer equipment, and high-speed phone lines. Benefits include reduced office space costs and commuting avoidance.
	Fully Mobile - Workers do not have a home office. Operate primarily at customer sites at all times during the workday. Allows a worker to spend more time with customers. Communication takes place through portable technologies.

Many organizations may choose to utilize only one or two of these virtual options. The selection of the most appropriate work arrangement should be driven by the organization's objectives for entering into the virtual workplace. As mentioned earlier, these may range from cost savings to flexibility for a sales force. In some cases, choosing to adopt a virtual workplace may be a voluntary option for employees or a mandated organizational necessity. Regardless of the objective, the transition from physical to virtual office requires more than simply adopting technology and sending the workers on their way. It requires special sensitivity to organizational and employee needs, proper alignment of goals and objectives, and an commitment to innovative management.

New Medium, New Management

As with any change, the virtual world requires both employees and managers to adopt new principals and practices in order to work effectively. The skills, which helped to guide the bricks and mortar office environment, are no longer as applicable in the virtual office. Therefore, it is essential that workers and their managers be trained with skills that allow them to cope with the new and in many cases more challenging environment. Among the most critical training issues to address is communication.

According to the Sloan Management Review, when people no longer see one another, everyday socialization or relationship-building communications can be lost. It becomes easy for managers to slip into communication patterns that are almost entirely task-oriented and miss verbal cues indicating that these patterns are demotivating for remote workers. Thus a key skill for managers of these workers is the ability to maintain a balance between task-oriented and relationship building communications (Davenport and Pearlson, 1998).

While there are many barriers that can separate the company and the virtual employee, increasing communication systems and creating new information flows are some methods for transitioning to a virtual workplace. Although technology is helpful in enhancing the flow of information, an effective manager should recognize that even the best medium might have weaknesses. How the manager and employee are trained to provide and consume information can make the difference between an effective virtual environment and a hostile one.

In addition to the adoption of a communication-training program and information execution plan, changes are necessary in the management of business processes. Operating virtually changes the use of administrative processes as well as operational procedures. To ensure a smooth transition to a virtual environment, managers should be prepared to adapt the following:

	Measurement and Evaluation Process -The worker is no longer performing near the supervisor; traditional controls are no longer applicable.
	Control and Administrative Process - Consider new checks and balances for reporting systems and budget controls.
	Objective Setting Process - Set explicit work objectives. Ensure that the worker understands what is expected before the virtual arrangement begins.

Managing process and communication of the virtual work environment prior to launching a virtual work arrangement will help ease the transition and strengthen the working partnership. Not only will this virtual relationship test the performance of the worker, but most importantly the skills of the manager. Selecting the most appropriate form of virtual work can also make the engagement a profitable one for both parties. By embracing the emerging changes in the world of work, proactive managers can champion cutting-edge change, not just react to it (Cascio, 2000).

Alyson Getty specializes in human capital strategy and workforce development initiatives for THE HILL GROUP. She can be reached via phone at 412-343-9393 or email, agetty@hillgroupinc.com.

References:
Cascio, Wayne. "Managing a Virtual Workplace." Academy of Management Executives, 2000, Vol. 14, No. 3.

Davenport, Tom and Pearlson, Keri. "Two Cheers for the Virtual Office." Sloan Management Review, Summer 1998.

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