Managing a virtual workplace

Executive Overview Virtual workplaces, in which employees operate remotely from each other and from managers, are a reality, and will become even more common in the future. There are sound business reasons for establishing virtual workplaces, but their advantages may be offset by such factors as setup and maintenance costs, loss of cost efficiencies, cultural clashes, isolation, and lack of trust. Virtual teams and telework are examples of such arrangements, but they are not appropriate for all jobs, all employees, or all managers. To be most effective in these environments, managers need to do two things well: Shift from a focus on time to a focus on results; and recognize that virtual workplaces, instead of needing fewer managers, require better supervisory skills among existing managers. Taking these steps can lead to stunning improvements in productivity, profits, and customer service.