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If done correctly, linking a distributed workforce can save money and increase efficiency. Managers must find the right technology tools–and a way to create the camaraderie of a traditional workplace.
The Art and Science of the Virtual Office
Advances in communication technology and a growing acceptance of the concept have spurred a rapid growth in the number of virtual companies and businesses with a significant percentage of their employees working remotely in virtual offices.
Particularly for small businesses, eliminating the high overhead costs associated with establishing, maintaining and expanding physical office space makes operating virtually an attractive financial decision.
However, running a successful virtual company requires more than just a willingness to work from home; it requires careful planning, the right employees and a strategic mix of technology tools to ensure communication and collaboration aren’t sacrificed in the quest for a lower operating budget.
The concept of virtual offices certainly isn’t new. However, the emergence of hosted telecommunications services and online collaboration tools, the prevalence of high-speed bandwidth – which today is found in nearly 70 percent of U.S. homes and 90 percent of U.S. businesses – and lower prices have created a surge in the number of companies either launching as virtual organizations or adding remote employees to their workforce.
Although not ideal for every type of business, those that can be classified as information service businesses – consulting firms, software developers, travel agents, real estate brokers, accounting firms, non-profit organizations, etc. – are particularly well-suited for virtual operations.
Further, companies with a highly mobile workforce, such as sales organizations, can realize significant benefits from setting up their employees to work virtually. And considering a recent Yankee Group finding that nearly 40 percent of all U.S. workers, or 50 million employees, are mobile, it’s happening more often than many people realize – in large part because technology makes the actual workspace transparent to anyone on the outside.
Telecommunication Tools
Successfully running a virtual company requires a carefully planned strategy that relies heavily on technology to keep employees connected with each other and with customers, regardless of their location.
One of the first – and perhaps most important – decisions to make when establishing a virtual company is which type of communications system to deploy. For any small business, a telecommunication system should present a “big business” feel to clients and prospects through such features as auto attendant, individual extensions, voice mail, conferencing, call forwarding/transfer, etc.
For virtual companies, the telecommunication decision is further complicated by the fact that employees can be scattered across the city or across the country. As such, the ideal system should connect everyone without the added expense of adding phone lines in every remote office.
While many these objectives can achieved with a PBX system, traditional systems are out of financial reach for small businesses, requiring an upfront investment of $5,000-$10,000 or more. Further, a company can quickly outgrow its PBX system, which will require additional investments in equipment upgrades or replacement costs – not to mention the costs incurred should it become necessary to move the system to a new location.
A better alternative is a “virtual” PBX service, which lays on top of existing land, mobile or VoIP lines and provides businesses with all the features of a traditional PBX without the upfront hardware investment or the need to install new phone lines.
These virtual communications services are hosted on the provider’s network and, for a flat monthly fee (typically in the $10-50 per month range), assign a toll-free number and a set number of extensions to each business customer. When a call is placed to that number, the system answers, plays the company’s customized greeting and directs the caller according to the configuration specified by the company.
For example, the caller could be prompted to enter an employee’s extension, and the call will be automatically routed to the appropriate phone number. Phone numbers can be reassigned on the fly to accommodate changes in location via a robust web interface, and extensions can be added as needed with changes taking effect almost instantly.
Extensions can also be set up to provide callers with company information, to take after-hours orders and even to track response from advertising and marketing campaigns.
Other “big business” virtual PBX features include custom on-hold messages; dial by name directory; music on-hold; outbound call blast; question and answer mailbox extension; telephone/pager/SMS notification; virtual calling card; virtual fax; and voice broadcast.
Collaboration Tools
In addition to the right telecommunications system, online collaboration tools also play a significant role in the success of a virtual company. These software tools function as real-time virtual workspaces, providing a central online location for project task management, documents, shared calendars, discussions and other functions that can be accessed by employees via a secure Intranet.
Online collaboration tools range from the relatively simple and inexpensive – private wikis, blogs, listservs and instant messaging – to the more elaborate and sophisticated groupware applications such as Microsoft Live Meeting, which facilitates fully interactive meetings where employees can review, annotate and discuss documents, share applications and collaborate via an electronic whiteboard, and Novell’s GroupWise, which provides integrated email, instant messaging and scheduling, as well as task, contact and document management.
Among all the online collaboration tools, wikis are emerging as an intriguing and highly affordable option for small businesses operating in a virtual environment. In a nutshell, wikis are low-cost, searchable, archivable sites that allow employees to collaborate in real-time on a web page. In fact, Gartner Group predicts that wikis will be the primary collaboration tool in 50 percent of companies by 2009.
The Human Touch
While virtual communications systems and online collaboration tools can keep employees connected in real-time, they can’t completely replace the “human factor” that makes any company – including virtual ones – tick.
Virtual companies face several unique challenges when it comes to employees, the first of which is hiring the right person. Not everyone is well-suited for remote work; the most successful “virtual” employees will be self-motivated, self-directed, comfortable with technology and able to thrive and perform without the reinforcement and support they would receive in a traditional office environment.
However, even the most independent employee needs the opportunity to interact with co-workers and management so they can establish the rapport that’s critical not only for team-building, but also to the company’s overall success. As such, it’s important to establish regular opportunities for remote employees to gather in person, such as social events, on-site meetings, retreats, etc.
While such activities may appear to run counter to the virtual office concept, they are actually critical to the success of virtual organizations. By fostering a sense of camaraderie and commitment among employees, the business will ultimately benefit from increased productivity, enhanced collaboration, reduced turnover and better performance.
Virtual offices are growing in popularity, and for small businesses in particular they offer a wide range of financial and organizational benefits. However, to succeed, businesses must put communication and collaboration – and the technology that makes them possible – at the top of the priority list.
Thanks to advances in technology, including the emergence of affordable, feature-rich hosted telecommunications services and online collaboration software tools, small companies can reap the benefits of the virtual office environment and still convey a “big business” presence on their small business budget.
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