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br.pepperdine.edu/2010/08/knowledge-is-power/

Knowledge is Power

But knowledge management requires organizationalchange.

ByLINDSLEY G. BOINEY, PHD

1999 Volume 2 Issue 2

How could your organization more effectively warehouse and mine its information?

Information systems have traditionally assisted managers and decision-makers by providing better data,

quicker access, better models, or more optimal solutions. Information systems have been used to help us

do tasks more quickly and cost-effectively, and have been most helpful to managers in information

gathering and decision-making. This is no longer enough, however. Todays information systems must

truly add value to the organization through the creation, capture, distribution, application, and leveragingof knowledge orknowledge management.

The role of information technology is being transformed in four major ways

1. The traditional emphasis on fast access to data, gathered in functional departments, is shifting

toward more centralized access to integratedand coordinateddata to support decision-making.

2. Information systems are focusing less on summarizing data in reports, and more on sifting through

huge volumes of data for potential problems or opportunities, hidden patterns, and meanings.

3. There is increased need for technologies that support effective communication, document sharing,

knowledge sharing, and decision-making among groups particularly those separated by time and

distance.

4. Systems are connected to the outside world via the Internet to facilitate communications,

relationship building, and sharing of information and experiences with customers, clients, and

industry partners.

The globalization of the worlds industrial economies is one reason for the changing role of knowledge

management. Globalization greatly enhances the value of information to the firm and presents new

challenges and complexities in communicating, controlling, and coordinating information and operations

across the far-flung corporation. More tasks are now done in a distributedenvironment by people

scattered across different countries, cultures, and time zones. The relatively recent explosion of electronic

commerce has further increased the pace of business transactions and made it even easier for customersto quickly identify and make comparisons of price and quality among global competitors.

A second force changing the business environment is the transformation of major industrial economies

into information-based service economies in which knowledge and information become the key

ingredients in creating wealth. Knowledge and information work currently account for some 60 percent of

the American gross national product, and nearly 55 percent of the labor force. The growing importance of

knowledge management is evident in the changing roles of information systems in organizations.
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Changing Roles of Information Systems

Traditional Roles Emerging Roles

1. Fast access to functional information. Centralized access to integrated, coordinated information.

2. Summarize data in reports. Sift through data for patterns and relationships

3. Support centralized, individual decision-

making.

Support decentralized & group decision-making,

information sharing.

4. Internal communication. Broad-based communication, external relationship

building.

Information is a Critical Strategic Resource

Information and information technology have become critical strategic resources for businesses. In order

to bring all the necessary information and expertise to bear on a task or decision, work must increasingly

be done cross-functionally, and by teams rather than individuals. The greater availability and importance

of information is resulting in more decentralized decision-making and information sharing.

Technologies that gather, integrate, and facilitate centralized access to data are the foundation of many

knowledge management activities. A relatively new and rapidly growing technology is an Enterprise

Resource Planning (ERP) system. An ERP is a business management system that integrates all facets of

the organization including inventory planning, manufacturing, sales, payroll, and finance so that they canbecome more coordinated through information sharing. This integration is critical because it means that,

as a transaction is processed in one area, such as receipt of an order, its impact is immediately reflected

in all related areas such as accounting, production scheduling, and purchasing.

The second crucial characteristic of an ERP system is that the modules are designed to reflect a

particular way of doing business based on a value chain view in which functional departments coordinate

their work. Many businesses are finding this coordinated approach far preferable to the old way of doing

business (by separate functional departments) because it greatly facilitates data gathering, integration,

information sharing, and decision-making.

A data warehouse is another technology that supports centralized access to integrated information. Data

warehousing is the creation and maintenance of a large special-purpose database containing current and

unified data from all functional units, as well as easy-to-use query, analysis, and reporting tools. It pulls

data from the various departmental systems, and sometimes from external sources as well, and puts

them into a separate warehouse so that users can access and analyze the information without

endangering the original systems.

This centralization of data about a companys business, products, and customers eliminates

redundancies and errors. It also allows employees to draw upon a wide range of information without


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having to make multiple requests of different departments. The fact that one standardized set of

analytical, query, and reporting tools can now be used across the board greatly facilitates the

transformation of data into useful information.

Data Analysis Separates Gold from Dross

As the amount of available data increases, managers must find ways to turn all that data into useful

information. Data miningis an advanced analytical technique for uncovering small nuggets of information

within vast quantities of data. Data mining actually involves using a variety of analytical techniques to

identify patterns, correlations, or trends in massive amounts of data.

Data mining has many valuable applications such as market segmentation (identifying the common

characteristics of customers who buy the same products from your company); customer churn (predicting

which of your customers are likely to defect to a competitor); fraud detection (identifying which

transactions are most likely to be fraudulent); interactive marketing (predicting what each individual

accessing a Web site most wants to see); and market basket analysis (understanding what products or

services are commonly purchased together, e.g., beer and pretzels).

Artificial intelligence tools can also help draw meaning from data. Many people associate the term

artificial intelligence with expert systems designed to capture the expertise of humans in a rule-based

computer program. Expert systems can help businesses with knowledge management

by capturingandcodifyingknowledge that might otherwise be lost due to the absence, retirement,

resignation, or death of an acknowledged expert.

Neural networks are a different and more flexible form of artificial intelligence useful in knowledge

management. Neural networks attempt to tease out meaningful patterns from vast amounts of data. They

use statistical analysis to recognize relationships and can actually adaptas new information is received

a process called adaptive learning.Neural networks enhance the organizations knowledge base by suggesting solutions to specific problems

that are too massive and complex for efficient analysis by human beings. For example, neural nets are

used by BankAmerica to evaluate commercial loan applications. American Express uses neural nets to

read handwriting on credit card slips while Arco and Texaco use it to locate oil and gas deposits below

the earths surface.

Groupware Links People and Information

Groupware is another application of information technology that has emerged to support the needs of

global organizations and virtual teams. Groupware such as Lotus Notes offers e-mail, calendaring, group

scheduling, Web access, and information management in a relatively easy-to-use and customizable

environment.

Virtual teams working from different locations can set up discussion databases, accessible remotely

over the Internet, that organize such things as e-mail discussion threads, spreadsheet files, and slide

shows around central topics or tasks. In a corporate setting, one discussion database might summarize

daily activities on a client project, another might provide a searchable set of names and contacts, another


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might include company best practices or guidelines, and another might contain client contracts,

specifications, and communications.

In an educational environment, there might be a discussion database established for each individual

course. Students in the course could use their virtual workspace to ask questions, post responses, get

assignments and handouts, and submit work. Student project teams might also have their ownworkspaces, as could faculty committees or research teams who find it difficult to meet face to face.

Databases can be customized to admit or restrict specific users as appropriate.

Another type of groupware is designed specifically to facilitate group meetings. Some researchers have

estimated that middle managers spend 35 percent of their work week in meetings and that top managers

spend 50-80 percent of their time in meetings. Many such meetings are characterized by unclear goals,

unequal participation, and difficulty reaching consensus.

An Electronic Meeting System (EMS) consists of a computer-supported meeting room containing

networked computers for each participant and a large public screen to facilitate common viewing of

information. Participants can provide their input simultaneously and anonymously via computer. This has

been shown to result in greater participation and more complete consideration of topics. The display of

incoming inputs on the public screen during brainstorming also tends to stimulate a larger number of

ideas.

EMS software contains tools designed to support activities such as team idea generation, organizing

ideas, prioritizing ideas (voting, ranking), and policy development such as stakeholder identification. Each

computer-based activity is followed by facilitated discussion. More recent versions of these tools can be

used in a different time, different place environment with members participating remotely with the help of

videoconferencing systems and the web.

Information Technology Used in Supply Chain

Management

Businesses recognize the growing importance of communicating and forming alliances with customers

and suppliers so they can adapt quickly to the ever-changing environment. Information technology is

increasingly being used strategically forsupply chain managementwhich refers to the integration of

supplier, distributor, and customer logistics requirements into one cohesive process. To manage the

supply chain, a company tries to eliminate delays and cut the amount of resources tied up along the way,

ideally creating more efficient customer response systems as well.

Wal-Marts continuous inventory replenishment system captures sales data via point-of-sales terminals

at the checkout counter and immediately transmits electronic restocking orders directly to its suppliers.

This system allows them to keep prices low, shelves well-stocked, and overhead costs at only 15 percent

of sales revenue. Enterprise resource planning (ERP) systems may also be extended outside the firm to

increase coordination with supply chain partners.


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The supply chain can go global as well. Adaptec Inc, a Silicon Valley-based computer chip company that

obtains many of its products in East Asia, is using the Internet to give its suppliers access to purchase

orders and factory-status updates. The company says this has made it more responsive, cutting the

manufacturing cycle from 12 weeks to eight and saving millions in inventory costs.

Dell Computer is linking its entire supply chain via the Web. Chryslers Supplier Partner InformationNetwork (SPIN) allows 3500 of Chryslers 12,000 suppliers selective access to portions of its intranet

where they can access current data on design changes, parts shortages, packaging information, and

invoice tracking. SPIN can even automatically notify suppliers of critical parts shortages. Chrysler believes

SPIN has reduced the time to complete various business processes by 25 to 50 percent.

Knowledge Management Requires Organizational Change

While the capabilities and roles of information technology are changing to address new business

challenges, technology alone is insufficient for meeting the demands of the global and information-based

economy. Knowledge management technologies necessitate fundamental changes in the organization

itself in order to effectively integrate, communicate, and distribute information. The potential benefits of

these information technologies can be realized only if their implementation goes hand in hand with

changes in organizational structure and culture.

About the Author(s)

Lindsley G. Boiney, PhD

http://gbr.pepperdine.edu/2010/08/virtual-insourcing/

The Power of Sharing in an UncertainWorld

Virtual Insourcing Can Reduce Costs, Increase

Collaboration

ByDONALD M. ATWATER, PHD,PETE KNOXandROSS ATWATER

2009 Volume 12 Issue 4As global economies rise, managers are reassessing the benefits and costs of different business service

models. In the past, inefficiencies in corporate business units and high costs led organizations to choose

shared service or outsourced alternatives. Other choices emerged with the advent of Web 2.0

technologies and global service options. Today, virtual insourcing is becoming a viable option because it

showcases the efficiencies of corporate business units and maintains costs near or below those of shared

services.
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A case study of a corporate business unit at Nestl in the United States demonstrates the potential of

virtual insourcing. While the benefits of sharing information and services will vary across organizations,

the authors believe virtual insourcing deserves to be added to the list of service models being assessed.

Podcast:Play in new window|Download

Image: Konstantin

In an effort to increase efficiency and cut costs, current business service models for credit and collections,product manufacturing, and even research and development are being compared with offshored,

outsourced, and shared-service alternatives. This article identifies an emerging business service model

that increases worker efficiency and reduces costs even below shared-service levels. This model, which

uses Internet technologies to showcase the contributions and cost reductions provided by employees who

share information andservices, is referred to as virtual insourcing.

Sharing information is a maturing process. In the last decade, Web 2.0 technologies have emerged to

support business models that connect internal business units with external, organizational entities and

customers in order to achieve common goals in communities.[1]For example, Procter & Gamble has a

website and program called Connect + Develop that allows consumers and external partners to submit

ideas directly to their product development group; if an idea is used, the submitter is compensated.[2]

This article introduces virtual insourcing as a viable business service model and explains why managers

should consider it as an option for the volatile and uncertain times ahead.

What is Virtual Insourcing?

Figure 1 is a visual representation of how virtual insourcing options works: Basically, an Internet

communication platform stores information in a single place (Data Center #1) where geographically

dispersed employees in a business unit can access the files and programs they need to perform their

daily work. It allows employees to be in different corporate offices or work from home because they have

the same level of access to their work files and programs regardless of their location.
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Figure 1

Ideally, digital copies of paper files, working files from desktops, emails, enterprise resource planning

(ERP) data, dashboards, and third-party information should all be available over the communication

platform. Daily work activities (services) are performed using calendars, assignment and workflow tools,

message boards, and chat rooms. Communication paths, which connect users to the information they

need to perform their tasks, can also be customized.

The people paths feature allows users to share both information and services (such as new customer

applications, financial analyses, risk ratings, approvals, and decisions) while corporate auditors and

executives can view outcomes and findings. In addition, employees from other business units can be

invited to participate in select two-way communications.

Sharing both information and services across an organization can generate cost reductions and efficiency

improvements and even support wealth creation. With virtual insourcing, knowledge is created and stored

digitally and transparently; the high visibility of user contributions encourages learning and facilitates

sharing. Examples of off-the-shelf virtual insourcing solutions include Google Apps and Microsoft

SharePoint; however, they may not offer the security or customizations that a particular organization may

need.

Strengths and Weaknesses

Organizations with strong local-market customers, suppliers, and business connections are often subject

to scrutiny with respect to costs and inefficiencies. Inefficiencies often occur when managers make

decisions based on incomplete information.[3]Searching for paper files and connecting information

across emails, paper files, desktop files, and telephone conversations only increases labor costs.

Management consulting firm McKinsey refers to these costs as interaction costs and has reported that

they can account for half of total labor costs.[4]Over the past two decades, Fortune 100 companies that
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managed and reduced their interaction costs created $30,000 more wealth per employee than their

competitors, according to McKinsey.

Sharing information and services can be viewed as a hybrid approach that combines the strengths of

other organizational options while minimizing known weaknesses, such as high interaction costs.[5]The

following table summarizes the key strengths and weaknesses of the three core organizational options:

Strengths Weaknesses

Status Quo Local Connections High Infrastructure Costs

Outsourcing Low Corporate Cost High Interaction Costs

Shared Services Low Interaction Costs Loss of Local Decision-Making

In this situation, status quo refers to a group of employees within a business unit who work with other

business units within the organization. They form a local team with strong ties to the market and use anassortment of paper files, desktop files, emails, voice messages to do their work. As they are often

located in key metropolitan markets, employee labor costs are high.

Outsourcing is often seen as a cost-saving option as labor costs are low compared to employee costs.

However, the interaction costs for dealing with external vendors must be included in the total cost of

outsourcing, and they can significantly close the cost gap between this option and others .[6]

In an outsourcing situation, customer and supplier relationships are often more complex and require

additional checks and balances to manage. One company recently noted that invoices submitted by

suppliers had to go through local offices to a national scanning and coding center in the United States,

then to an outsourced accounts payable systems center in Puerto Rico, and then to a control center inEurope before finally arriving at a local bank for payment. In addition, local office staff was required to

spend a significant amount of time checking that the scans and codes were done properly, confirming that

system notices, such as blocks and denials, were not being encountered, and answering vendor

questions regarding payments.

Shared services comprises of a centralized business unit in a low-cost labor area that performs a

business function across several local business markets, dramatically reducing the costs of repetitive

services or transactions.[7]Some centers are offshored while others are located in rural communities; the

information they use is available and stored on corporate ERP systems. The downside is that when

automated corporate controls are implemented, talent chains are disconnected and frequent

communications with suppliers and buyers are eliminated, which can cause relationships to suffer.

Another key disadvantage is that business units lose their autonomy in decision making and their

flexibility to do things differently from other units.

Virtual insourcing emerges as the best option as it retains valuable local-market connections and

relationships by keeping employees in one business unit in the same space as employees from other

units. This solution can also help encourage business units to adopt best practices (through high

transparency and audit standards), reduce interaction costs, and recognize employee contributions.
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But these are simply the promises of virtual insourcingcan its potential be realized in the real world?

The following section attempts to answer this question by documenting a successful case of virtual

insourcing implementation.

The Problem

In an uncertain world characterized by volatile markets, innovation is critical. Executives in successful,

global companies stress that they want their managers to propose new ideas, even if there is a chance

that they will fail. At Nestl, innovation includes discovering new business service models. This case

study focuses on a virtual insourcing model implemented within the companys credit and collection units.

In 2004, the credit and collections groups at Nestl companies across the United States knew they were

facing some significant challenges. There were five separate credit and collections unitsNestl USA,

Dreyers, Alcon Labs, Purina Pet Care and Nestl Waters, and so, customers and suppliers often

addressed and resolved issues in different ways with different units.

The director of Nestl USAs credit and collections reviewed their current operations and reported that

account paperwork and information were scattered, which made files hard to find. Phone call messages,

emails, attachments, desktop and laptop working files, credit files, and other materials were located in

multiple places, making it difficult for employees and the company as a whole to move quickly in response

to market changes. While the necessary outcomes were achieved, the process of achieving them was

time-intensive and uncertain. Clearly, the monthly phone call to discuss high-risk and high-value accounts

was not going to be enough going forward.

At the time, Nestl USA was launching its new ERP program in the United States, and all IT resources

were being directed to its rollout. Discussions were also under way with the chief financial officer

regarding shared-service options, with a central location serving all five U.S. credit and collections units.

There was a dire need to quickly discover what other options existed beyond the status quo and shared

services.

The Solution

An outside advisor with experience in shared services was brought in to discuss alternatives. He told

them that the best option in terms of cost would be shared services but the best option in terms of service

would be one that shared information as well as services.

The virtual insourcing business service model would create a single place where information could be

shared and services, such as financial analyses, could be stored. This would mean that only one

application and one financial analysis would need to be performed for each account, minimizing

duplication of efforts. A primary difference between the virtual insourcing and shared-services options

was that using virtual insourcing allowed professionals to remain with their companies and retain valuable

connections with customers, sales, and other units.


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A set of analytics was prepared to compare the costs related to subscriptions, duplicated services,

staffing, and working capital. The results showed that virtual insourcing held the potential to reduce costs

to near the level of the shared-service cost model. In fact, consolidating subscription fees into a single,

shared fee and eliminating duplicate services generated savings large enough to cover the basic costs of

putting the solution in place.

The related technology, interface, and user risks were also assessed. Of these, the user risks namely,

user adoptionwere determined to be the most significant. A recent corporate-wide sharing solution had

only seven logins across the entire global company in six months.

A team was formed to meet for two hours, once per week, for eight weeks to work out the details. Four

people paths were set up for ongoing credit, unauthorized deductions, red flags, and invoice collection

discussions. Documents, email programs, subscriber notes, news, references, and working desktop files

were all moved to the virtual insourcing solution. Chat rooms were opened to share information on

services.

The Results

Once communication lines opened among the five units, customers began to view them as one entity,

rather than as separate organizations. Junior analysts learned from seasoned professionals. Employees

shared customer contacts and job opportunities opened up for those who could now be recognized as

strong contributors. Performance reviews now included sharing activities and survey responses indicated

what was working well and what needed to be improved, such as the timeliness of responses to

information requests. User activity was tracked and rose steadily.

Over the next three years, credit and collections activities rose, but headcounts remained stable;

however, in some cases, open positions caused by normal turnover and voluntary retirements did not

have to be filled. Each unit shared in the cost of the sharing solution; once the value of the sharing

solution was shown, the path to a shared-cost formula was easy to establish.

In retrospect, the risks taken to implement an innovative sharing solution for credit and collections across

Nestl in the United States were manageable, the outcomes exceeded expectations, and the big question

became why had it not been done sooner.

Keys to a Successful Sharing Solution

As part of a well-orchestrated campaign, significant benefits and value can be created by implementing

virtual insourcing within an organization. Below is a summary of key findings to stimulate discussion.


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Image: Ayzek

Successful sharing solutions can:

Pay for themselves by eliminating duplicate costs (such as multiple subscriptions to third-party

publications like Dun & Bradstreet), reducing redundant work, and decreasing working capital and

days-to-order results.

Open the door to having employees work at home, thus reducing office rental and utility costs as

well as employee expenses, such as parking and travel costs.

Improve the daily work activities of all users. Benefits include reducing time lost due to duplicate

work, email, telephone tag, and file or document searches.

Allow users to go from usage (seeing what is being shared) to participation (taking part in

discussions) to contribution (posting information, analyses, and recommended actions), all of which

serve as steps along the path to self-engagement.

Support users with various access and security privileges. Not all users need to be equal. Some

can be restricted to discussions with selected accounts so that confidentiality is maintained in

accordance with privacy agreements.

Provide clear audit trails. Notification is automatic and one click should take a user to a new

message or document when it is posted for an important account. Documents, discussions, and

actions are stored in one place. Search engines make it easy to find and access accounts,

documents, and messages.

Facilitate continuous learning as more information and expertise is centrally and transparently

collected.

It is important to note that value must be established before implementing cost-sharing formulas. Ideally,

an organization should treat first-year efforts as a corporate investment to discover the benefits of sharing

both information and services and to verify that the expected benefits are recognized by business units.

Only afterwards should discussions and implementation of cost sharing begin taking place. Also

paramount to success is having a clear leader who recognizes the risks and value from sharing solutions

and is willing to spend time tracking and managing activities.


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other Internet applications. Usage risk, that is, getting employees to engage in sharing information and

services, remains the most difficult hurdle to overcome. The proportion of successful virtual insourcing

solutions remains around 15 percentconsistent with

Conclusion

Business service models are only as good as the costs they reduce and the benefits they provide. Virtual

insourcing is an emerging alternative that uses Internet technologies to enhance the contributions and

value of employees. In todays uncertain economy, and with the great need to create competitive

advantages, virtual insourcing offers managers a viable new cost-saving and wealth-creating option.[8]

[1]Daniel Tapscott and Anthony Williams, Wikinomics How Mass Collaboration Changes Everything,

Portfolio, (New York: Penguin Group, 2007).

[2]Procter & Gamble,https://www.pgconnectdevelop.com/.

[3]Larry Goldman, Driving Toward Action: The Action Stage,DM Review, 15, no. 5 (May 2005).

[4]Lowell L. Bryan and Claudia I. Joyce, Mobilizing Minds, (McGraw-Hill, 2007).

[5]Shelly Heiden, Centralization Versus Decentralization: A Closer Look at How to Blend Both,Chief

Learning Officer, 6, no. 12, (December 2007). (hyperlink no longer accessible).

[6]Sameer Kumar and Krisoffer Kopitzke, A Practitioners Decision Model for the Total Cost of

Outsourcing and Application to China, Mexico and the United States,Journal of Business Logistics, 29,

no. 2, (2008).

[7]JP Morgan Chase, Moving Towards Global Shared Service Centers, white paper,JP Morgan Chase,

May 24, 2004 [registration required]. (hyperlink no longer accessible).

[8]Antonio Verd-Jover, Jose-Maria Gmez-Gras, and Francisco Liorns-Montex, Exploring Managerial

Flexibility: Determinants and Performance Implications,Industrial Management and Data Systems, 108,

no. 1, (2008).

About the Author(s)

Donald M. Atwater, PhD, is a practitioner faculty of economics at the Graziadio School of Business and

Management. Previously, he served as chief executive for a southern California technology company, the

chief financial officer of an international, value-added software company, a principal in the human

resources and compensation practice at William M. Mercer, and a director and co-founder of several

start-up companies. He has created decision-support technologies and implemented them in a number of

Fortune 100 companies, including AT&T, Intel, Dell Computer, Apple Computer, and Nestle USA. Dr.

Atwater has also worked with many public organizations, including the U.S. Navy, the General Accounting

Office, the state of California, and both the county and city of Los Angeles. His work has been published

in the Monthly Labor Review and he has co-authored numerous papers. Today he owns and operates a

company dedicated to building goal-driven communities.
http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_edn8http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_edn8http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_edn8http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref1http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref1http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref2http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref2https://www.pgconnectdevelop.com/https://www.pgconnectdevelop.com/https://www.pgconnectdevelop.com/http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref3http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref3http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref4http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref4http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref5http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref5http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref6http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref6http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref7http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref7http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref8http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref8http://gbr.pepperdine.edu/index.php/author/atwater_d/http://gbr.pepperdine.edu/index.php/author/atwater_d/http://gbr.pepperdine.edu/index.php/author/atwater_d/http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref8http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref7http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref6http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref5http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref4http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref3https://www.pgconnectdevelop.com/http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref2http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_ednref1http://gbr.pepperdine.edu/2010/08/virtual-insourcing/#_edn8


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Pete Knox, is the head of credit and accounts receivable administration for Nestl USA. He has been in

the credit field for 25 years. Knox has a B.S. in business administration from Ashland University and an

MBA from the University of Akron.

Ross Atwater, is Division Manager of the Accounts Management Group for the Satorian Group, LLC, in

Charlotte, North Carolina, where he is responsible for marketing and sales for the group throughout the

United States. His primary role is to deal with customers and showcase their contributions. Ross regularly

works with Fortune 100 companies that utilize web insourcing solutions to help them achieve cost

savings. He has also provided voiceover for interactive, online demonstrations and co-authored a

macroeconomic analysis textbook. Ross has a degree in economics from the University of California-

Davis and has worked for Micronomics, Inc., and DMA, Inc. in southern California.

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Issue:2009 Volume 12 Issue 4

Topic:Information Management

Tags:collaboration,communications,globalization,information technology,insourcing

Leave a Reply

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/the-

challenge/collaborating-with-a-far-flung-team/article2305605/

THE CHALLENGE

Collaborating with a far-flungteam

BRYAN BORZYKOWSKIFrom Wednesday's Globe and Mail

Published Wednesday, Jan. 18, 2012 6:00AM EST

Last updated Wednesday, Jan. 18, 2012 1:29PM EST

Needless to say, working as a virtual team presents incredible challenges.Because everyone lives so far from each other, every instruction needs to be documented. He finds hiscurrent software isnt robust enough to do that.

And while Skype lets him talk to his developers or his business partners face-to-face, it doesnt allowhim to brainstorm ideas the way hed like.

I want to be able to stand up around the white board, chat together and discuss the problem, hesays. Nothing allows us to be as productive as people who are in one room.
http://gbr.pepperdine.edu/index.php/author/knox_p/http://gbr.pepperdine.edu/index.php/author/knox_p/http://gbr.pepperdine.edu/index.php/author/atwater_r/http://gbr.pepperdine.edu/index.php/author/atwater_r/http://www.addthis.com/bookmark.php?v=250&username=http://gbr.pepperdine.edu/2010/08/virtual-insourcing/http://gbr.pepperdine.edu/2010/08/virtual-insourcing/http://www.addthis.com/bookmark.php?v=250&winname=addthis&pub=unknown&source=tbx-250,wpp-250&lng=en&s=linkedin&url=http%3A%2F%2Fgbr.pepperdine.edu%2F2010%2F08%2Fvirtual-insourcing%2F&title=Graziadio%20Business%20Review%20%7C%20Graziadio%20School%20of%20Business%20and%20Management%20%7C%20Pepperdine%20University&ate=AT-unknown/-/-/4fbbe178abbf3b31/1&frommenu=1&uid=4fbbe178c094e9ce&ct=1&pre=http%3A%2F%2Fgbr.pepperdine.edu%2Fcategory%2Finformation-management%2F&tt=0http://www.addthis.com/bookmark.php?v=250&winname=addthis&pub=unknown&source=tbx-250,wpp-250&lng=en&s=linkedin&url=http%3A%2F%2Fgbr.pepperdine.edu%2F2010%2F08%2Fvirtual-insourcing%2F&title=Graziadio%20Business%20Review%20%7C%20Graziadio%20School%20of%20Business%20and%20Management%20%7C%20Pepperdine%20University&ate=AT-unknown/-/-/4fbbe178abbf3b31/1&frommenu=1&uid=4fbbe178c094e9ce&ct=1&pre=http%3A%2F%2Fgbr.pepperdine.edu%2Fcategory%2Finformation-management%2F&tt=0http://www.addthis.com/bookmark.php?v=250&winname=addthis&pub=unknown&source=tbx-250,wpp-250&lng=en&s=reddit&url=http%3A%2F%2Fgbr.pepperdine.edu%2F2010%2F08%2Fvirtual-insourcing%2F&title=Graziadio%20Business%20Review%20%7C%20Graziadio%20School%20of%20Business%20and%20Management%20%7C%20Pepperdine%20University&ate=AT-unknown/-/-/4fbbe178abbf3b31/2&frommenu=1&uid=4fbbe1780f3ded23&ct=1&pre=http%3A%2F%2Fgbr.pepperdine.edu%2Fcategory%2Finformation-management%2F&tt=0http://www.addthis.com/bookmark.php?v=250&winname=addthis&pub=unknown&source=tbx-250,wpp-250&lng=en&s=delicious&url=http%3A%2F%2Fgbr.pepperdine.edu%2F2010%2F08%2Fvirtual-insourcing%2F&title=Graziadio%20Business%20Review%20%7C%20Graziadio%20School%20of%20Business%20and%20Management%20%7C%20Pepperdine%20University&ate=AT-unknown/-/-/4fbbe178abbf3b31/4&frommenu=1&uid=4fbbe17867071f89&ct=1&pre=http%3A%2F%2Fgbr.pepperdine.edu%2Fcategory%2Finformation-management%2F&tt=0http://www.addthis.com/bookmark.php?v=250&winname=addthis&pub=unknown&source=tbx-250,wpp-250&lng=en&s=delicious&url=http%3A%2F%2Fgbr.pepperdine.edu%2F2010%2F08%2Fvirtual-insourcing%2F&title=Graziadio%20Business%20Review%20%7C%20Graziadio%20School%20of%20Business%20and%20Management%20%7C%20Pepperdine%20University&ate=AT-unknown/-/-/4fbbe178abbf3b31/4&frommenu=1&uid=4fbbe17867071f89&ct=1&pre=http%3A%2F%2Fgbr.pepperdine.edu%2Fcategory%2Finformation-management%2F&tt=0http://gbr.pepperdine.edu/index.php/issues/?issue=2009%20Volume%2012%20Issue%204http://gbr.pepperdine.edu/index.php/issues/?issue=2009%20Volume%2012%20Issue%204http://gbr.pepperdine.edu/index.php/issues/?issue=2009%20Volume%2012%20Issue%204http://gbr.pepperdine.edu/category/information-management/http://gbr.pepperdine.edu/category/information-management/http://gbr.pepperdine.edu/category/information-management/http://gbr.pepperdine.edu/tag/collaboration/http://gbr.pepperdine.edu/tag/collaboration/http://gbr.pepperdine.edu/tag/collaboration/http://gbr.pepperdine.edu/tag/communications/http://gbr.pepperdine.edu/tag/communications/http://gbr.pepperdine.edu/tag/communications/http://gbr.pepperdine.edu/tag/globalization/http://gbr.pepperdine.edu/tag/globalization/http://gbr.pepperdine.edu/tag/globalization/http://gbr.pepperdine.edu/tag/information-technology/http://gbr.pepperdine.edu/tag/information-technology/http://gbr.pepperdine.edu/tag/information-technology/http://gbr.pepperdine.edu/tag/insourcing/http://gbr.pepperdine.edu/tag/insourcing/http://gbr.pepperdine.edu/tag/insourcing/http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/the-challenge/collaborating-with-a-far-flung-team/article2305605/http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/the-challenge/collaborating-with-a-far-flung-team/article2305605/http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/the-challenge/collaborating-with-a-far-flung-team/article2305605/http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/the-challenge/collaborating-with-a-far-flung-team/article2305605/http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/the-challenge/collaborating-with-a-far-flung-team/article2305605/http://gbr.pepperdine.edu/tag/insourcing/http://gbr.pepperdine.edu/tag/information-technology/http://gbr.pepperdine.edu/tag/globalization/http://gbr.pepperdine.edu/tag/communications/http://gbr.pepperdine.edu/tag/collaboration/http://gbr.pepperdine.edu/category/information-management/http://gbr.pepperdine.edu/index.php/issues/?issue=2009%20Volume%2012%20Issue%204http://www.addthis.com/bookmark.php?v=250&winname=addthis&pub=unknown&source=tbx-250,wpp-250&lng=en&s=delicious&url=http%3A%2F%2Fgbr.pepperdin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14/29

Mr. Saltykov started his business last March, but to expand it, hell need to find better ways to workwith his overseas colleagues, he believes.

We do try and talk every day, he says. But we need to be more efficient.

The Challenge: How can InsureEye improve the collaboration among its far-away staff?

THE EXPERTS WEIGH INMitchell Potter, Principal with Minneapolis-basedMercerLLC

I think he should actually do away with the Skype or other tools that provide a visual of the otherpeople. Those are useful for personal conversations, but they dont add value in most business groupor brainstorming conversations. In fact, they can be distracting. They are not a good substitute for

real body language, but you keep trying to make the visual image work as well as the real thing.

Better to be voice-only. Voice-only also relieves everyone of having to dress for the call. One of thegreat advantages of telecommuting is that you can focus on what you are doing and not on how youlook or how the way you look may affect others.

Supplement your conversations with some form of interactive discussion software. There are many,good brainstorming tools he can buy, likeJive,Moxie, [and]Telligent. Many of these paid tools have

(elements) specifically designed for brainstorming.Ann-Marie Urquhart, Toronto-based associate director of global IT services atErnst & YoungFor brainstorming, on-line meeting software, such asGoToMeeting, is one way for all participants to

see, in real time, slides and documented discussions during the meeting. Participants, at any time, canshare their screens content to the entire team.He might want to consider engaging a project manager to create a projects plan and manage all thetasks rather than doing it himself or relying only on software. This might help enable the CEO tofocus more on strategy.

Finally, the actual time of the meeting should also be taken into consideration, respecting the differenttime zones and country-specific holidays. If every team member is expected to attend the call, thenthe meetings should be rotated so the pain is shared equally.

Simon Bell, Cardiff-based co-founder and chief operating officer of Toronto-basedLOGiQ3. His business partner is based

in TorontoWeve tried Skype, but it wasnt great for the quick conversation. Instead, we useEpik Networks,a

company that offers voice over Internet protocol (VOIP). Whether were in Toronto or Cardiff, we havea phone thats connected to the Internet that I just pick it up and it connects one office to the other.

We dont incur any long- distance charges.Weve also spent years testing differing desktop-sharing tools. We needed to be able to see the samedocument at the same time and make a single set of changes. We found that in Join Me, which is a

simple, secure way to instantly get someone elses input wherever they are. Its free too.Use BlackBerry Messenger for keeping in touch in quick messages. Its secure, free and you can tellwhen the other person has received and read the message. [iPhones new iMessage program operatesin a similar way.]

THREE THINGS INSUREYE SHOULD DO NOWUse the phone more

Video conferencing is often distracting and the visuals can take away from accomplishing tasks. Makeconference calls, or get a VOIP phone thats only for calling team members.

Hire a project managerHire someone to manage the multitude of tasks. The CEO can then think more about strategy thaninputting every detail of a conversation into a software program.Rotate time zones

Change the times of conference calls every day or week, so people share the pain of having to getup early or go to bed late.
http://www.mercer.com/http://www.mercer.com/http://www.jivesoftware.com/http://www.jivesoftware.com/http://www.jivesoftware.com/http://www.moxiesoft.com/http://www.moxiesoft.com/http://www.moxiesoft.com/http://www.telligent.com/http://www.telligent.com/http://www.telligent.com/http://www.ey.com/http://www.ey.com/http://www.ey.com/http://www.gotomeeting.com/http://www.gotomeeting.com/http://www.gotomeeting.com/http://www.logiq3.com/http://www.logiq3.com/http://www.logiq3.com/http://www.epiknetworks.com/http://www.epiknetworks.com/http://www.epiknetworks.com/https://join.me/https://join.me/https://join.me/http://www.epiknetworks.com/http://www.logiq3.com/http://www.gotomeeting.com/http://www.ey.com/http://www.telligent.com/http://www.moxiesoft.com/http://www.jivesoftware.com/http://www.mercer.com/


15/29

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/the-

challenge/collaborating-with-a-far-flung-team/article2305605/comments/

An interesting challenge, and a common one! As teams become more virtual for good reasons, it creates a

productivity and collaboration challenge, as Mr. Saltykov has discovered.

have aptly pointed out that software tools (such as document sharing, project management, virtual meeting

and desktop sharing tools) can be part of the solution if used properly, and if the tool addresses the unique

need.

In this case, Mr. Saltykov's primary need seems to be re-creating the boardroom, where they can "stand up

around the whiteboard, chat together and discuss the problem". Many collaboration tools allow people to

work together on a project, but only once the project has been defined. The first step, though, is to get the

smart people in the company together to discuss an issue, understand the issue and get to a good,

collaborative decision, before a specific project is defined. It sounds like this is what Mr. Saltykov needs

most.

By way of disclosure, I need to mention that I am advising a company called Powernoodle on marketing

strategies. When I read this article, their (our) solution came immediately to mind because what the

Powernoodle tool does best is recreate the boardroom - complete with flipcharts and sticky notes - virtually.

Employees across the globe can create ideas, comment on ideas, vote on ideas, prioritize ideas, combine

ideas, and create an action plan! Then, the other tools (like project management or document sharing) can

be used supplementally for additional productivity and collaboration gains.

It is also a unique tool for other reasons: Because it allows for anonymous contribution, people that have

good ideas but are too shy or too intimidated to contribute in-person, can have their voice heard. Also, since

sessions remain 'open', people from different time zones can contribute to the process asynchronously, at

their convenience.

Again, the experts have all contributed sound advice. My intention with this comment is to 1) assure Mr.

Saltykov that his challenge is not unique, 2) concur with the experts about the power of productivity

software, and 3) highlight the congruence of Mr. Saltykov's challenge and a solution called Powernoodle

(powernoodle.com).

Glenn Cressman

shareofmarketing.com

Collaborate?

All one does it float around in cyberspace with blind commonality being correct.

In the olden days "global chatter" made one there believe that experts were at hand.

In reality.. "we don't know what we are doing!"

The rules, beside blind commonality... mentoring is extinct, it is commonality is... don't tell me how you are

going to do it.... we get the same thing.

Direction is impossible to commit a criminal offence is good, BENCHMARK the not obvious, histograms could

be good executables, the lab, the field &....
http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/the-challenge/collaborating-with-a-far-flung-team/article2305605/comments/http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/the-challenge/collaborating-with-a-far-flung-team/article2305605/comments/http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/the-challenge/collaborating-with-a-far-flung-team/article2305605/comments/http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/the-challenge/collaborating-with-a-far-flung-team/article2305605/comments/http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/the-challenge/collaborating-with-a-far-flung-team/article2305605/comments/


16/29

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/going-global/how-to-

keep-far-flung-staff-engaged/article2070581/

http://www.theglobeandmail.com/news/technology/shaping-the-future/to-bolivia-and-beyond-how-to-

collaborate-abroad/article2345236/

Virtual teams may not be a novel idea, but new technologies are helping these groups to work moreeffectively.

I think virtual teams are here to stay, says Claire Sookman, principal of Toronto-based consultancyVirtual Team Builders. Ms. Sookman notes that according to Statistics Canada, 1.4-million Canadianemployees work from home at least part-time. Were seeing more companies transition toward avirtual environment, but its also not an all-or-nothing concept.

Either way, going virtual can deliver financial and other benefits. In a 2011 survey of Canadian andU.S. businesses by Houstonbased Chronos Consulting, almost a quarter of respondents said they

were deploying virtual teams to save money. Among the other reasons companies gave for using orconsidering virtual teams: access to global talent.

But when it comes to the virtual working environment, theres plenty of room to improve on existingtechnology. Virtual teams function really well when theyre allowed to communicate easily, saysAndrew Gaudes, an associate professor of business at the University of New Brunswick. When westart looking into the future, its going to be about how we can make communication among teammembers more free and easy so that the interaction is more natural, adds Dr. Gaudes, who has

worked with organizations to build virtual teams.

Noting that Skype and other video services are growing in popularity, Dr. Gaudes expects to see touchscreens that allow team members in different locations to work on the same document together. Healso predicts that organizations will increasingly turn to social media. We have a greater comfort zonewith communicating with people without being in the same room because of sites like Twitter andFacebook, Dr. Gaudes says.

As it turns out, Minigroup originally launched last year as a private social network. But when thecompany noticed that many business customers with remote employees were using the product, itswitched focus.

Good collaboration isnt just about doing tasks, says cofounder Chris Nieckar. Its really theconversations and the communication that lead to the task and lead to accomplishing the work thatneeds to get done.

ADVANCED IT: VIRTUAL TEAMS

To Bolivia and beyond: how to

collaborate abroadNICK ROCKELSpecial to Globe and Mail Update

Published Wednesday, Feb. 22, 2012 5:00AM ESTLast updated Monday, Feb. 27, 2012 10:36AM EST

http://www.theglobeandmail.com/news/technology/shaping-the-future/how-to-make-the-most-of-

virtual-teams/article2346314/
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Virtual teams may not be a novel idea, but new technologies are making it easier than every tocollaborate with people scattered across the globe.

In a 2011 survey of Canadian and U.S. businesses by Houstonbased Chronos Consulting, almost aquarter of respondents said they were deploying virtual teams to save money. Companies also foundit easier to connect with global talent.

But when it comes to the virtual working environment, theres plenty of room to improve on existingtechnology.

Virtual teams function really well when theyre allowed to communicate easily, says Andrew Gaudes,an associate professor of business at the University of New Brunswick. When we start looking into thefuture, its going to be about how we can make communication among team members more free andeasy so that the interaction is more natural, adds Dr. Gaudes, who has worked with organizations tobuild virtual teams.

Noting that Skype and other video services are growing in popularity, Dr. Gaudes expects to see touchscreens that allow team members in different locations to work on the same document together. Healso predicts that organizations will increasingly turn to social media. We have a greater comfort zone

with communicating with people without being in the same room because of sites like Twitter andFacebook, Dr. Gaudes says.

Dr. Gaudes joined us earlier to talk about the new far-flung workplace.

11:50Dave M., Globe and Mail: Hello everyone.

The discussion will begin in a few moments. Feel free to punch in your questions below, right now.

12:02

Dave M., Globe and Mail: Hi Andrew. Are you there, and ready?

12:04

Comment From Andrew Gaudes: Yes I am.

12:06

Dave M., Globe and Mail: Andrew, let's start with some basics. More companies are using virtualteams, taking advantage of the best new software.

12:06Dave M., Globe and Mail: How does social media work hand-in-hand with this concept?

12:07Comment From Andrew Gaudes: Hi Dave. Thanks for asking. Virtual teams are really a part ofeveryday business for many organizations today.

Social media has been great for people feeling more comfortable with exchanges that cross time anddistance.

12:10Andrew Gaudes: People in work and in social exchanges are feeling more comfortable with brief burstsof information that are part of social media exchanges, rather than very long constructed messages tosend and receive. Of course there are tradeoffs


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Not everything sent has been carefully constructed (content wise).

12:11

Andrew Gaudes: The benefit is that people are getting the pulse of what is going on aroundthem...due to free communication.

12:12Dave M., Globe and Mail: What are some of the problems people have with communicating as a teamover long distances?

12:12

Andrew Gaudes: Often you find difficulty in expressing thoughts/ideas that have universal meaning.

Team members have to be sensitive, using language that is not misconstrued by other teammembers. Sarcasm does not work well in a text-based environment!

12:14Andrew Gaudes: However, we have come a long way from relying on e-mail content for messagesbeing sent back and forth...

Skype is a great example where we are able to utilize multiple cues (signals) from each other to getgreater meaning in messages.

12:15Andrew Gaudes: Skype allows us to use text, but also audio, and of course video in our messages.

This promotes richer exchange between team members...and in real time.

12:17

Dave M., Globe and Mail: What does the future hold for this trend? What are some of the technologicaladvances coming our way?

12:18Andrew Gaudes: Freer communication...greater ability to work on the same document over distances.For example...

Touch screens that we can manipulate documents together.

12:19Andrew Gaudes: Much like an iPad screen that sees manipulation by several members of the team.This will be a great platform for collaboration that involves more than text-based projects.

Design of spaces, manipulation of audio, graphic design will be great beneficiaries of this technology.

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12:20Dave M., Globe and Mail: How far away is that iPad screen that everyone can use together? Or is therean app for that right now?

12:21

Andrew Gaudes: The basic ingredients are already out there. It really is a matter of seeing themutilized in such a fashion that supports collaboration...
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12:21

Andrew Gaudes: However, it will result in larger screens down the road.

12:21

Comment From Chris: Are there special security concerns about virtual communication?

12:21Andrew Gaudes: Hi Chris...good question...

12:22

Andrew Gaudes: Any communication in a virtual domain poses risk of being scooped by others...

No matter how much encryption we apply, there is always someone out there that has a work-around.

12:23

Andrew Gaudes: We try to balance the risks with the benefits of having the right skilled people towork together from wherever/whenever.

12:24

Andrew Gaudes: We also have to realize that even face-to-face communication and hard-copy posesrisk of security breach.

12:24Dave M., Globe and Mail: Another question from a reader: Are there different personality types whoare more sucessful at working in virutal teams. Introverts vs. extroverts? Are younger people moreadept at doing this? Can the older crowd join in - with a bit of training?

12:25

Andrew Gaudes: Fun question...let me address in several parts.

12:26Andrew Gaudes: Personality types can come into play, but not in the way you would expect. We find

that people that have self-confidence are good in virtual teams...and this can cross the intra/extravertboundaries...

12:27Andrew Gaudes: We find that people with higher professional designations, education, rank, so onhave greater confidence.

12:28

Andrew Gaudes: What we have to do is provide great team leaders that "pull" ideas and rewardcontributors that may feel "less" than others.

To answer your question of young/old...I'm finding that the gap between the two is closing as timepasses. Five years ago I would have said younger is more in tune with the technology that needs to be

applied...

12:30Andrew Gaudes: Today though, the comfort zone with collaborating over time/distance has increasedacross all. For example, the greatest growth in Facebook right now is with middle/late-age females.

12:29

Comment From Catherine: What are some ways you can reproduce the benefits of live interaction(e.g. emotional connection, etc.) in a virtual way?


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12:32

Andrew Gaudes: Hi Catherine...I find from the work I have done with virtual teams has shown thatteams that also socialize virtually have a greater bond for their work.

Using Skype for example for real-time interaction with multiple cues...

12:33Andrew Gaudes: One organization I worked with hosted baby showers and holiday parties virtually. Agreat example where the comfort of collaborating over distance crossed the task-based interaction toinclude relationship building events.

12:33

Comment From Jason: What about doing business in Asia, and specifically China? Have you had anyexperience with that? Has it posed any challenges, like censorship of Internet communications?

12:34Andrew Gaudes: Hi Jason...virtual teams with members in China presents challenges...

12:35

Andrew Gaudes: The challenges are primarily cultural, with differences in expectations, outcomes,procedures in managing a virtual team.

There is benefit in creating a terms of reference for how the team will interact for the duration of theproject.

12:37

Andrew Gaudes: With dialogue in virtual teams, the structure is different...not necessarily hierarchical,which can create surprise when not expected by members of the team.

12:38Comment From Tina

Is there a danger that social-network-like work interaction means work intrudes into every moment ofpeople's lives and there's no "clear-your-mind" time (or less family time)?

12:38

Andrew Gaudes: Great question Tina...The most difficult thing to teach people on virtual teams is howto use the "off" button on the equipment.

For many, being on a virtual team is like having a new toy...people just want to keep using it...

12:40Andrew Gaudes: Balance is critical, for all stakehol;ders, to ensure a successful, long-term virtualteam strategy. Otherwise organizations are prone to members getting burned out and not being ableto sustain the initiative.

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2:40

Comment From Sam: If someone's not working on site, is there the possibility they won't feel asconnected to, or even loyal to, the company?

12:41
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Andrew Gaudes: These are great questions! Hi Sam...yes, that's one of the greatest fears of peoplecollaborating away from the office...

We often call these individuals teleworkers, and they worry about being left out of prime projects,promotions, raises, and so on...

12:43Andrew Gaudes: It's incumbent on the organization to ensure employees are kept in the loop. A greatremedy is to have collaborators that are out of office to come into office periodically...in a teleworkarrangement, 2-3 days a week out of office are optimal...

12:43

Andrew Gaudes: This, of course, gets more challenging when people are on opposite sides of theglobe.

12:44Comment From VancouverScene1: I sometimes have trouble giving my people a sense of teamworkwhen they're not in the office all the time. Any suggestions?

12:44Andrew Gaudes: Hi VS1...context sharing is a great start.

Try to provide all team members with something they can share or identify with. It could beorganizational branding, special virtual team equipment or supplies...when we used mouse pads,having the same mouse pads was just one simple addition to creating a shared context.

12:47

Andrew Gaudes: How you share context is really up to your own creativity (such as the baby shower),but having all members of the team identify as a part of something great creates strong bonds.

12:47Comment From Chris: Do you find there's more or less conflict when teams communicate virtually?

12:48Andrew Gaudes: Hi Chris...the potential for conflict is likely the same, but is generated through

different triggers...

Conflict in the office is often generated by triggers that are not necessarily work-related (we can ALLthink of examples)...

12:50Andrew Gaudes: Conflict in the virtual domain often resides in the content of the work (which actually,is a good place for it to reside, because it leads to greater, richer solutions). We are not preoccupiedwith how people look, dress, sneeze, etc.

12:50Comment From Randy: What techniques work for virtual collaboration, brainstorming, etc.?

12:52Andrew Gaudes: Hi Randy, the question is relevant for both conventional and virtual teams. Start witha shared goal...something you want to achieve as a group.

12:53


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Dave M., Globe and Mail: One more from me -- are there topics or areas where virtual teams shouldnot be used, or aren't optimal?

12:54

Andrew Gaudes: The most obvious (of course) is assembly-line work...

We fail to realize that a large sector of what make industry run are left out of these opportunities fortheir work. Virtual teams are limited largely to the knowledge worker, or people participating oncommittees (that may also participate on an assembly-line)...

12:57Andrew Gaudes: However, anytime we need people to collaborate on projects that involve exchange

of ideas we have opportunity to collaborate across time and distance.

12:58

Dave M., Globe and Mail: Can you think of any examples of companies that are doing a good job withvirtual teams? You can leave out their names if you like.

1:00

Andrew Gaudes: One that quickly comes to mind is a large firm that has changed its intranet platformto emulate a Facebook experience. The firm's employees interact on their intranet much the same wayone would with friends on Facebook, with the ability to have information about themselves and tocirculate correspondence in real-time short bursts...

This is a great example of utilizing social media approach to collaboration in the workplace.

1:02

Andrew Gaudes: Another very large organization in France made headlines in December because oftheir strategy to eliminate e-mail in the workplace, phasing it out over the next few years, turningmore to IM as a method of internal communication. Showing the e-mail is becoming the new snailmail.

1:04Dave M., Globe and Mail: Andrew, our time is up. Thanks very much for your time today, and forhelping us all learn about this trend.

1:05

Andrew Gaudes: The pleasure is mine...thanks to you and all the viewers for their interest in thisgreat topic!

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http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/going-global/what-to-

do-when-you-get-there/article1600690/

What to do when you get thereTABASSUM SIDDIQUISpecial to The Globe and Mail

Published Friday, Jun. 11, 2010 11:01AM EDTLast updated Wednesday, Aug. 24, 2011 11:16AM EDT
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Like many executives who maximize their time while travelling, Mr. Remedios, who takes trips tofestivals, conferences and meetings one week per month, tries to find a way to mix business withpleasure and has found savvy means of doing so along the way.

While many travellers might turn to the traditional hotel concierge for advice, creative types like Mr.Remedios already have access to a built-in network of peers who have their finger on the pulse oftheir particular urban scene.

Trendy places heat up and cool down, and when you're only in a city a few times a year, it'simpossible to really know about any of that yourself, so I depend on the locals knowledge, Mr.Remedios says. I'll go to a town like Buenos Aires, and even before I go, Ill be in touch with someamazing locals who do similar things to what I do, like artist managers or concert promoters, andthey'll help guide my trip.

like many other busy executives seeking out unique entertainment options, Mr. Remedios also relieson online tools to plan, keeping an eye on Twitter and websites like ASmallWorld.net.

The rise of social media provides a great opportunity for frequent business travellers heading to

unfamiliar destinations; its the online equivalent of having a personal network at their fingertips. All ittakes is a quick Twitter or Facebook post inquiring about the best place to have a beer in a city, andchances are someone on their contact list knows exactly the spot to suggest. Experts note that usingsocial media including such options as LinkedIn, which cater specifically to the business professional

to cultivate an international network of contacts can make business trips that much easier.

Travel-focused social media is becoming increasingly popular with business travellers, with websiteslike Dopplr.com offering creative ways to seek out travel advice and share itineraries from cities

around the world.

Not all business travellers may have the network (or inclination) to look for options on their own, somany still turn to concierge services, which can help with everything from reservations at the busiestrestaurant to tickets to a sold-out show. But the fusty image of the traditional hotel or airlineconcierge has taken on an updated spin to match the quick pace of modern international businesstravel.

Concierges at boutique accommodations such as Torontos Drake Hotel can assist visitors looking for

distinctive ways to interact with clients by tailoring entertainment options that showcase the best ofthe city.

More and more business travellers seem to be looking for a cultural experience it seems like as longas people are being forced to travel, they seem to want to have a whole experience attached to it,says the Drakes head concierge Jonathan LeClaire. We can facilitate meetings here, or plan an entirecurated experience for them and their guests, whether thats a walking tour of the Queen Westneighbourhood or a picnic at the Beaches.


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The hotel is able to keep business travellers in the know thanks to an active staff that meets weekly toshare tips about the latest openings, happenings and trends in town, says Mr. LeClaire, adding thatthe hotels close relationships with area restaurants, bars and entertainment venues means that hisstaff is often able to facilitate even the trickiest request from business travellers hoping to score a

good table at a popular eatery or tickets to a buzzworthy show.

Since most on-the-go execs are glued to their smart phones, another way hotels like the Drake try toanticipate business travellers entertaining needs is by staying connected via technology the Drakesconcierge team has its own Twitter account, and is also partnered with the mConcierge iPhone app. Ithelps us keep our finger on the pulse of what guests are looking for, says Mr. LeClaire.

Long before travellers even reach their destinations, airline concierges are busy fielding requests fromharried business people who need to set up entertaining options for when they get to the other end,

says Deborah-Ann De Souza, director of concierge services at Air Canada.

Time is of the essence for the business traveller they live on the road, so depend on us to assistwith the details, she says.

As such, business travellers are increasingly taking advantage of airline concierge services as an

effortless way to tap into the services they need. Air Canadas premium concierge services areavailable to the 50,000 super elite frequent fliers who travel the required 100,000 qualifying miles

each year, but also to those flying in Executive First class. Most other Canadian and internationalcarriers offer similar programs.

Air Canada, which has 148 concierges in 20 cities worldwide, is an affiliate of the exclusive Les ClefsDOr concierge society, which plugs the airline into a vast network of hotels, restaurants and otherentertainment venues around the world, Ms. De Souza explains.

Concierges can also help tailor entertaining options to a specific budget, Ms. De Souza says, pointingout that companies were beginning to tighten their belts long before the financial crisis hit last year.

Your average business customer is very cost-conscious in how theyre spending their money and how

theyre entertaining. Someone will fly in and want to be able to take their client out to lunchsomeplace nice, and theyll work over lunch, and then the person returns to their home base, Ms. DeSouza says.

So when theres less time to get it right, sometimes it helps to have someone like us jump in andlend a hand.

http://gbr.pepperdine.edu/2010/08/knowledge-is-power/

Knowledge is Power

But knowledge management requires organizationalchange.

ByLINDSLEY G. BOINEY, PHD

1999 Volume 2 Issue 2

How could your organization more effectively warehouse and mine its information?
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Information systems have traditionally assisted managers and decision-makers by providing better data,

quicker access, better models, or more optimal solutions. Information systems have been used to help us

do tasks more quickly and cost-effectively, and have been most helpful to managers in information

gathering and decision-making. This is no longer enough, however. Todays information systems must

truly add value to the organization through the creation, capture, distribution, application, and leveraging

of knowledge orknowledge management.

The role of information technology is being transformed in four major ways

1. The traditional emphasis on fast access to data, gathered in functional departments, is shifting

toward more centralized access to integratedand coordinateddata to support decision-making.

2. Information systems are focusing less on summarizing data in reports, and more on sifting through

huge volumes of data for potential problems or opportunities, hidden patterns, and meanings.

3. There is increased need for technologies that support effective communication, document sharing,

knowledge sharing, and decision-making among groups particularly those separated by time and

distance.

4. Systems are connected to the outside world via the Internet to facilitate communications,

relationship building, and sharing of information and experiences with customers, clients, and

industry partners.

The globalization of the worlds industrial economies is one reason for the changing role of knowledge

management. Globalization greatly enhances the value of information to the firm and presents new

challenges and complexities in communicating, controlling, and coordinating information and operations

across the far-flung corporation. More tasks are now done in a distributedenvironment by people

scattered across different countries, cultures, and time zones. The relatively recent explosion of electronic

commerce has further increased the pace of business transactions and made it even easier for customers

to quickly identify and make comparisons of price and quality among global competitors.

A second force changing the business environment is the transformation of major industrial economies

into information-based service economies in which knowledge and information become the key

ingredients in creating wealth. Knowledge and information work currently account for some 60 percent of

the American gross national product, and nearly 55 percent of the labor force. The growing importance of

knowledge manageme

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