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How to run a 100% virtual company

By | September 7, 2012, 8:07 AM PDT

Given all the attention on telecommuting and virtual operations, you would think there was now a huge roster of companies running entirely “in the cloud,” if you will. But most, if not all companies, still have a physical, core presence somewhere.  And there’s a reason for that.

Can you run an entire company out of Starbucks? Photo: Marguerite Reardon, CNET.

What it takes to run an entire company out of Starbucks: communication, and lots of it. Photo: Marguerite Reardon, CNET.

The Wall Street Journal’s Rachel Emma Silverman describes the workings of one prototypical 21st-century “completely office-less” company: Web-services company Automattic Inc., which has 123 employees working in 26 countries, 94 cities and 28 U.S. states — all working from home.

“Nobody knows for sure how many completely office-less companies there are or how fast their ranks are growing, but management researchers say such firms are still rare,” Silverman writes. But their ranks are growing.

Still, while virtual workplaces have a lot of pluses, there are still a lot of minuses as well that need to be overcome — both on the management and employee side. Managers often feel they are not in control of things when employees are not within sight. Plus, there may be data security or confidentiality concerns. For employees, there are often feelings of isolation and being left out of the career-advancement loop.

To run an effective all-virtual organization — or partially virtual for that matter — communication is the vital link. Some observations made in the article include the following management tips:

Address the “virtual workstyle” in hiring and orientation: Before making a hire, Automattic assigns applicants to work on a trial project. Plus, once hired, all new employees are required to work in customer service for their first three weeks.

Emphasize “overcommunication”: This is key to heading off misunderstandings. Employees at Automattic, for example, are constantly exchanging messages within an internal blogsite — a virtual water cooler. “When misunderstandings occur with text-based chats, participants are encouraged to pick up the phone,” Silverman writes.

Emphasize teamwork: “If someone misses the mark, the team leader or another staffer will reach out to the employee to figure out what went wrong.”

Organize regular get-togethers or meet-ups: Even in the virtual era, nothing bonds like face-to-face meetings. At one company, not only is there constant chatter between employees via instant messaging and email, but employees are also flown in every year for an annual meeting.

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Joe McKendrick

About Joe McKendrick

Joe McKendrick is a contributing editor for SmartPlanet.

Joe McKendrick

Joe McKendrick

Contributing Editor, Business

Joe McKendrick is an independent analyst who tracks the impact of information technology on management and markets. He is the author of the SOA Manifesto and has written for Forbes, ZDNet and Database Trends & Applications. He holds a degree from Temple University. He is based in Pennsylvania.

Follow him on Twitter.

Joe McKendrick

Joe McKendrick

Joe McKendrick is an independent consultant and editor. Joe has performed project work for the following companies in the IT marketspace: IBM, Systinet/HP, Teradata. He has performed project work for the following organizations in partnership with Unisphere Research (Unisphere Media): IBM, Oracle Corp., International Oracle Users Group, Oracle Applications Users Group, Professional Association for SQL Server, International DB2 Users Group, International Sybase Users Group.

He writes for SmartPlanet and is not an employee of CBS.

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Total transparency...
I would add one more thing to this list...that is make sure your "virtual world" is totally transparent. I use a service called TransparentBusiness.com as it allows those who I contract with to track my progress on any and all tasks that have been assigned to me in real time. This application is seamless and can be used anywhere I go, or the employer in question goes. I also use this for my own team of outsourced employees so I too can keep tabs on them. This is a great way to end the threat of over-billing, which happens regardless of the size or stature of a company.
Posted by colins58
1st Oct
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Virtual office
Virtual office is affordable to run small business and provide more flexibility and convenience than other professional businesses. They have no physical structure and it relies on the telecommunication services with low investment and start up costs.

For a successful virtual business it is essential that each and every work should be done in a proper way. The goal or vision of the business should be specific. Today there are so many companies in the market which provide virtual office services. If you are planning to work in Dublin then you can refer the following company as it provides good services:-
http://www.dublinofficecentre.ie/services/live_call_answering.php
Posted by bellaj78
5th Feb
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