With the dawn of the Information Age, cyber-terminology rules the day, and sensational headlines perpetuate myth over reality.

This is often the case in discussions about virtual companies, virtual teams and telecommuting programs. Some business publications, such as Fast Company, present these trends as if they're commonplace, with everyone working from home or mobile offices. A world on the run. Brick-and-mortar a thing of the past. Unfortunately, this often serves only to confuse the issue and obscure the truth.

What is the truth about virtual and telework, and what are the pros and cons of such approaches? Understanding the terminology and the reality a bit better allows us to more intelligently make use of the options in our workplaces.

What's virtual? The answer is in the eye of the beholder.

What constitutes a virtual company, and who's classified as a telecommuter? The former term, virtual company, has been used in reference to decidedly brick-and-mortar-centered companies who advocate a "paperless workplace", thus relying heavily on e-mail and an intranet; as well as more seemingly accurate references to often-smallish companies whose partners and employees all work out of home or independent offices, connect and collaborate electronically, and meet periodically at a "hub" or one of the participant's home office.

The term virtual team is often used to apply to a group of employees working on a project from different company locations, again relying on e-mail, video conferencing and other technological means of communication.

References to telecommuting programs include those in which a very small percentage of a very large company experiment with working anywhere from one to several days per month from home. In some cases, these pilot programs focus on sales persons, who frequently work away from the office anyway. Other workers to whom "telecommuter" is applied are professionals who live in one geographic region but work electronically, with periodic trips to the company headquarters.

Potential problems with virtual work options

The benefits of an effective, efficient full or partial virtual work arrangement are significant, so why isn't everyone doing it? As you might guess, it's neither for all people nor all companies. Anticipating potential issues can help you determine when — and if — a virtual solution is an option for your workplace.

What issues might you consider before going virtual? Here are a few that crop up when real people implement virtual work options:

Isolation—
Many people aren't suited to working alone, and underestimate the degree to which they rely upon interaction with or even just the presence of other people.
Discipline—
Problems and reactions may arise due to lack of structure. Some virtual workers find they're ill-equipped to drive the process, take responsibility for ensuring thorough communication and on-target expectations, and feel uncomfortable and unproductive without the parameters reinforced by the presence of their employer.
Mission—
Some telecommuters don’t feel like they’re a part of a mission, an organization, when they work from home or even a small satellite office.
Liability—
Liability issues, perhaps affecting issues such as worker’s compensation claims from ergonometrically problematic home office space or liability from accidents that occur at the home while a worker is telecommuting (home office insurance coverage would seem a necessary component).
Miscommunication—
New work arrangements create interpersonal and management challenges, as you might expect, ranging from problematic e-mail etiquette to perception/expectation mismatches and other communication-related issues.
Transition—
Transition issues, particularly when unanticipated. Many people don’t think it’ll be any big deal, so don't anticipate problems.
Jealousy—
Telecommuting or other virtual arrangements might not be appropriate for many positions, which may lead to intra-office jealousy.
Disconnection—
If not accommodated for in advance, you could lose the ideas, comeraderie, etc. that results from impromptu, unplanned interaction (e.g. watercooler gossip, spur-of-the-moment lunch discussions).
Expense—
Companies might find technology & infrastructure investment prohibitive (equipment, furniture, alternate staffing).
Control—
Some supervisors and leaders may find it difficult to cede control, including decision-making and independent judgment, to the employees who work remotely. This will probably be less an issue when the worker only telecommutes one day per week or month than when the worker is permanently located in his home or mobile office.
Perception—
For virtual organizations, there may be a perception that "virtual" means non-existent or frivolous, particularly among purchasers in larger corporate environments where the common understanding or experience center around brick-and-mortar facilities provided by the parent-employer.
Planning—
Your situation is unique, and the most effective plan must be tailored to meet the needs and culture of your company. A good plan can help make the difference between a highly beneficial virtual work initiative and one that shakes your organization to its core, so don't hesitate to seek counsel from communication and process experts.

According to multiple sources, options ranging from virtual companies to geographically disperse teams to telecommuting can offer the following benefits to employers:

Telecommuting offers
the possibility of:

decreased sick time,
improved job satisfaction,
enhances quality of life by decreasing traffic/travel commuting time
increased comeraderie
enhanced focus & productivity
improved internal communication
increased computer literacy
improved customer service
decreased overhead
is considered by many to be socially responsible (environmentally friendly, decreased contribution to smog and freeway congestion, family-friendly)

Virtual organizations
offer the potential for:

Some, if not all, above-mentioned benefit
Significantly lower overhead
Ultimate flexibility and adaptability—more fluid than brick-and-mortar attachment allows
Partner networks allow the virtual organization to compete for and service larger accounts or projects without incurring the inflexibility, the overhead of larger, brick-and-mortar companies.

Benefits in practice:

— Typically, the two highest costs for a company are facilities (office space, etc.) and payroll. Some percentage of virtuality or telecommuting allows a decrease in the former, and perhaps through increased efficiency, the latter.
— "A British Telecom Study reported by the Gartner Group indicated that the average telecommuter works 11% more hours than an office counterpart. They also found that reduced costs for office space and other overhead items save employers an additional amount equal to 17% of annual salary costs."
— Less stymied by external factors that might otherwise reduce productivity, such as inclimate weather (blizzards, etc.), urban traffic, personal illness or responsibilities
— "Bell Atlantic Corporation cited that 25 hours spent working at home are the equivalent of 40 office hours."

(Reference: "Selling Your Telecommuting Decision, International Telecommuting Association-ITAC")

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Fortunately, there are quite a few resources to help employers determine when virtual arrangements might be beneficial. Here are a few web sites that feature such information:

International Telework Association & Council

Howard Rheingold's Virtual Community site

Telework experts, Gil Gordon Associates

Is everyone right for telecommuting?

Telecommute America: California Style

Ivy Sea Online articles to help ease communication issues

Want to avoid the messy communication issues that often come with new work arrangements? Start with these Ivy Sea articles to help clarify expectations and establish groundrules:

What communication vehicles work best, and when?

How does your vision grow?

Goals, roles and performance

Tired of miscommunication?

When people avoid the issues

Organizational & time management tips

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