I
agree with Laurence Prusak and Don Cohen ("How to Invest in Social Capital,"
June 2001)
that social capital has a direct, positive impact on the performance
of individuals, teams, and organizations. However, I wholeheartedly
disagree with their negative characterization of the virtual workplace.
Virtuality need not be the enemy of social capital. Indeed, when used
appropriately, remote and mobile work strategies promote strong global
networks that contribute significantly to the bottom line. Investing
in the virtual workplace is now the best way for business leaders to
strengthen social capital.
Prusak
and Cohen have fallen into the same traps as many business leaders when
it comes to misperceptions about the virtual workplace. Let me address
three of these outdated ideas.
Traditional
thinking: Face-to-face interaction for 40 hours a week is the best
way to build social capital and encourage high performance. Virtual
workplace mind-set: The virtual workplace levels the playing field,
emphasizing performance rather than attendance or appearance. Consistently
meeting colleagues’ expectations by delivering creative results on schedule
is a better way to build trust and social capital than just sitting
in a neighboring cubicle. A recent survey by researchers at the Center
for Gender in Organizations at the Simmons College Graduate School of
Management found that women believe their ideas are heard and valued
more when presented through on-line communication rather than face-to-face
interaction. In addition, over dependence on collocation and conformity
to a 9-to-5 schedule ignores the advantage of technology: to allow individuals
to work where and when they are most effective.
Traditional
thinking: In the virtual workplace, face-to-face collaboration never
happens.
Virtual workplace mind-set: Remote and mobile workers are skilled
in the art of strategic face-to-face interaction, using this scarce
resource wisely to build and maintain relationships while minimizing
time and money on business trips and commuting. In traditional companies,
too much time is spent in meetings with unclear or hidden agendas and
in water cooler conversations that are often nothing more than gossip;
this can be very harmful to social capital. In virtual organizations,
people use their own time and their colleagues’ more effectively.
Traditional
thinking: Relationships between collocated colleagues or managers
and subordinates have the greatest impact on company performance. Virtual
workplace mind-set: All workers have unique, global networks of
relationships to maintain through face-to-face and electronic interaction,
and the value of these relationships to the bottom line changes over
time. Mobile work tools let employees devote more time to customer and
supplier visits while getting input through e-mail from colleagues around
the world at any time. Technology allows people to stay connected to
coworkers while spending more time with family, friends, and others
in one’s community—these relationships are an essential part of social
capital, too.
Finally,
consider the message sent by business leaders when they trust employees
to make important decisions about how to use the financial resources
of the company but do not trust them to make smart choices about where
and when to work. Imagine how damaging it is to social capital to equip
workers with mobile technology but then mandate that they return to
the office as soon as client meetings end. Employers want more entrepreneurial
thinking; employees want more autonomy. Why not get both by letting
people make decisions about the best time and place for their solo work
and face-to-face collaboration? My research shows that more than 50
companies based in the United States are leveraging the power of the
virtual workplace and experiencing higher morale, commitment, and performance
as a result. I invite Prusak and Cohen to evaluate the social capital
in these organizations.
Cynthia C. Froggatt
Principal Froggatt Consulting
New York
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