A 'Virtual' Trend in Business
There's certainly a new trend in business as companies continue to find new ways to reduce cost. The biggest cost factors are benefits and employees. For the first factor, I'm not sure anyone knows how to reduce it. Healthcare costs constantly rise with little to no opposition. So, organizations can reduce coverage on their plans to reduce cost but that's about it. The second factor has more potential for reducing cost. Let's take a closer glimpse.
In a trend that has about 12% of the population, organizations are evolving into what is known as the 'Virtual Organization,' or VO. Experts anticipate that 40% of employees will be in VOs by 2012. Companies say that this arrangement allows them to be more timely and responsive to customers around the world, while keeping costs down.
So, what is this arrangement you say? After coming through the 'downsizing' trend of the 1990's and into a service economy, organizations are using expertise from all over the world to support its operations. They are creating virtual teams, which are geographically dispersed workers connected through communication and information technology, to accomplish tasks closer to the customer and to tap into better expertise. For example, if I make a product in China, I don't need a lot of employees in the US to support the build of the product. I can contract experts in China to support the manufacturing process and keep a small number of employees here in the US to support other functions such as introduction of new technology, obsolescence, etc. Those contracted experts can respond faster to a problem and I don't have to pay their benefits.
VOs also use mobile workers, telecommuters, telecenters, hot desking and hoteling to support its operations. Most of these aid in cost reduction. If most of my workers are traveling or work outisde the home office, then the home office doesn't need to be big enough to support everyone. This reduces cost of my office space.
All of these provide more flexibility to your work schedule and less management oversight. We can't say this will make your workday shorter but it should give you less stress. If you are just seeking a better work-life balance, this is the way to go. If you're seeking to move up the corporate ladder, like in a traditional organization, you've got a whole new list of challenges.
The career implications of VOs aren't so bright, at first. Most of us know that sufficient 'face time' with management can improve your career mobility. But what happens when you work in a company that mobile and you're on the go? When you are off-site and the boss is in the main office tending to issues, how do you impress them? Are you simply "out of site, out of mind." How do you get additional training or tasks to build new skill sets? Is there any career development?
As a growing structure, VOs are still being figured out. One thing is true. Executives see some serious potential savings so they will continue to push for this. As for you and your career, you'll want to become better acquainted with this organizational form and how you can use it to maintain your competitiveness. There are few things that can help you out. I'll present many of these soon in my upcoming book.
Never Climb Alone,
Todd
In a trend that has about 12% of the population, organizations are evolving into what is known as the 'Virtual Organization,' or VO. Experts anticipate that 40% of employees will be in VOs by 2012. Companies say that this arrangement allows them to be more timely and responsive to customers around the world, while keeping costs down.
So, what is this arrangement you say? After coming through the 'downsizing' trend of the 1990's and into a service economy, organizations are using expertise from all over the world to support its operations. They are creating virtual teams, which are geographically dispersed workers connected through communication and information technology, to accomplish tasks closer to the customer and to tap into better expertise. For example, if I make a product in China, I don't need a lot of employees in the US to support the build of the product. I can contract experts in China to support the manufacturing process and keep a small number of employees here in the US to support other functions such as introduction of new technology, obsolescence, etc. Those contracted experts can respond faster to a problem and I don't have to pay their benefits.
VOs also use mobile workers, telecommuters, telecenters, hot desking and hoteling to support its operations. Most of these aid in cost reduction. If most of my workers are traveling or work outisde the home office, then the home office doesn't need to be big enough to support everyone. This reduces cost of my office space.
All of these provide more flexibility to your work schedule and less management oversight. We can't say this will make your workday shorter but it should give you less stress. If you are just seeking a better work-life balance, this is the way to go. If you're seeking to move up the corporate ladder, like in a traditional organization, you've got a whole new list of challenges.
The career implications of VOs aren't so bright, at first. Most of us know that sufficient 'face time' with management can improve your career mobility. But what happens when you work in a company that mobile and you're on the go? When you are off-site and the boss is in the main office tending to issues, how do you impress them? Are you simply "out of site, out of mind." How do you get additional training or tasks to build new skill sets? Is there any career development?
As a growing structure, VOs are still being figured out. One thing is true. Executives see some serious potential savings so they will continue to push for this. As for you and your career, you'll want to become better acquainted with this organizational form and how you can use it to maintain your competitiveness. There are few things that can help you out. I'll present many of these soon in my upcoming book.
Never Climb Alone,
Todd
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