AMC Connection, June 2010
By: Thomas C. Osina
Many associations headquartered in the Washington, DC-area closed for days this winter when a snowstorm hit the region. Some nonprofits were unable to provide service to their members around the country, but one organization didn't experience any problems. Find out why in this feature on the virtual office.
However, association clients of Management Options, Inc., headquartered in Alexandria, Virginia, had no problems. Telephones were answered by live people, meeting registrations were processed, memberships were renewed, and information was provided so that members of these clients didn't realize that two massive storms had hit the area.
How was this accomplished? Management Options, Inc. had all its employees at work taking care of member business because it uses a virtual office setup to conduct business. Instead of having a storefront setup like many AMCs use, MOI has its employees work in home office environments.
History of the Virtual Office
When MOI was set up in 1994, only sales personnel and others who spent time on the road had home offices. Some businesses allowed employees to work from home if they had been ill or just delivered a child, but the expectation at the time was that work was done in an office. After all, how would you know if an employee was really working if he was allowed to work at home?MOI adopted the virtual office model because it heard from many nonprofits that there were limited funds and would rather have money invested into programs and services to their members than to rent or mortgage for a building. At the same time, technology was becoming more personal. Personal computers were common. Competition in telecommunications was growing, resulting in lower fees and more choices. Fax machines decreased in cost and size, and internet service providers moved to unlimited usage for one set fee per month.
At the same time, companies that served the stand-alone office were finding the home office market. Staples and Office Depot were making it easier for people to buy office equipment and supplies. Kinko's decided it wanted more than college students using their copiers, printers, and office services. Pitney Bowes made smaller postage machines that could be used in virtual offices. And UPS and FedEx offered pickups from residential addresses.
What is A Virtual Office?
A virtual office is an environment that provides services as any traditional office would, except that it is located in an employee's home. A mailing address is rented from a mailing business to provide a central location for incoming mail. This allows for the receipt of packages and parcels, freeing staff from having to be available to accept them. A telephone number is set up for the business at the primary home office.Benefits of a virtual office. For an AMC, it broadens the universe of potential employees because it doesn't have to choose employees within its geographical backyard. With the recession, there is much more talent around the country willing to work and work hard. In return, virtual office employees have no commute to an office that creates unproductive time. They can handle family emergencies as needed and still make up the work, and they have a less stressful day than many of their contemporaries. The bottom line is that such a setup builds valuable employee loyalty.
For client organizations, a virtual office AMC helps their finances because they are not subsidizing a brick and mortar office that they may not ever visit or use. They are not subject to weather or other natural emergencies, like a weeklong snowstorm. Nonprofits that use virtual office AMCs can devote more of their members' dues dollars to programs and services. As a side note, this usually means greater opportunities for growth to the AMC to provide those services.
Things to keep in mind. I am often asked how I know that an employee is really working when I cannot see her clock in or out. That kind of question is predicated on the idea that those who work in a virtual office situation must be constantly monitored for productivity. Simply put, any person who will only work if frequently or constantly monitored does not do well working in a virtual office.
MOI has approached this situation by hiring for talent. While orientation to our business procedures is provided, our goal is to select motivated self-starters for whom our business model mirrors their work expectations. Those who need frequent water cooler conversations or who cannot turn off outside distractions at their home will not do well. Self-discipline, attention to detail, and getting work done regardless of whether it's from nine to five are the key attributes for those who work successfully in this kind of situation.
Converting to a virtual office. The biggest obstacle to embracing a virtual office comes from management. Owners used to seeing employees in their offices physically working will not necessarily like this setup. A virtual office requires a different mindset when recruiting and managing employees. If you cannot trust your employees to do the necessary work required and even go that extra mile, then you do not have the kind of workers who will make a virtual office successful.
I have found that those who work for themselves or in an independent environment are good candidates to interview as long as they have the talents and experience you are seeking. While there will be a certain amount of mentoring and training involved with any new hire, this is the case even in a traditional office setup situation.
A virtual office AMC is truly able to stay open for business at any time, hire talented employees from a much larger pool of employees, enjoy greater worker loyalty and productivity with less stress, and give its client nonprofits more return on investment which leads to greater profit opportunities for the AMC . And that's a win-win situation for all.
Thomas C. Osina, CAE, is president and chief executive officer at Management Options Inc. in Alexandria, Virginia and a member of the Association Management Company Section Council. Email: managementoption@aol.com
| |  |
Great article on the benefits of a virtual office. As the owner/operator of Intelligent Office of Alexandria (VA), a virtual office, I would add that a state-of-the-art phone system is essential. For example, our clients update us daily on their location and instructions - where they are working, which calls they want sent to them vs. directly to voicemail, important calls they expect, when they do not wish to be disturbed, etc. We log that information into the system and any receptionist who answers has it readily available, and the caller never knows that the staff is not sitting in the same office. The biggest challenge to going virtual is putting into place metrics to monitor the work, but when you think about it, the metrics should be the same whether the workers are in the office, at home, or working from their vacation homes on the beach.
Matt Whitaker
Intelligent Office of Alexandria
703-224-8800
mwhitaker@intelligentoffice.com
As an AMC operating as a virtual office for over ten years, I can testify as to how efficient and effective this arrangement is. Our clients don't even realize that the 7 employees and 5 contractors aren't all in the same building -- we're so well-connected by technology. And my overhead stays low, making me more competitive.
Pat Heuser, The Heuser Group
