MIT Sloan Management Review

Human Resource Management and Industrial Relations

Two Cheers for the Virtual Office

By Thomas H. Davenport and Keri Pearlson

July 15, 1998

Successful virtual offices require radical new approaches to evaluating, educating, organizing, and informing workers.

What’s happening to the office? Technology has made it possible to redefine where work is done. The traditional notion of an office as the place where someone goes to work seems to be going the way of the buggy whip, the eight-track tape, and the stenographer.

Companies such as Procter & Gamble, IBM, Hewlett-Packard, AT&T, and Compaq have partially or fully eliminated traditional offices for field sales and customer service. Other companies have eliminated offices for workers including researchers, real estate managers, and accountants. For these businesses, work is becoming something you do, not a place where you go.

They are successfully replacing offices with technology; portable computers, cellular phones, and fax machines all enable remote or mobile work.

The “virtual” office appeals to many different corporate stakeholders. Mobile or remote workers value the freedom and autonomy that it provides.1 Senior managers like the reduction in real estate costs. As one Bell Atlantic manager noted, “This is not a perk for employees if you can cut half a billion off the bottom line.” Senior managers also value the opportunities that new technologies make possible for increased interaction between sales-people and customers.

However, some managers, particularly middle managers, are troubled by the virtual office. They may find it difficult to do their jobs because the employees they supervise... To read the complete article, login or sign-up using the form below.

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