Home/Library/Virtual Company

How a Virtual Company Creates Cohesiveness and Commitment
By Jo Ellen Roe

From At Work: Creating a more enlightened world of business & work July/August 1998 (Volume 7, Number 4)

In 1995, Dannemiller Tyson Associates became a virtual company - an organization where people are linked in space instead of place. Company members have embraced the challenge of creating an engaged and cohesive working group and, at the same time, have been able to address other problems that they had been struggling with for some time. Here's a report on their progress so far.

DANNEMILLER TYSON ASSOCIATES (DTA), which is based in Ann Arbor, Michigan, is a consulting firm with thirteen partners who live in and work from locations scattered across the United States. Computers and telephone lines provide communication links, and the partners have developed ground rules that work long distance as well as face- to-face. They share contractual agreements and legal arrangements-in this case, a limited liability corporate structure- that allow them to transcend the constraints more traditionally organized enterprises often face.

Prior to becoming virtual, DTA wrestled with the same problems that many of its client companies faced. A hierarchical structure gave some partners more clout than others. Connections between partners were difficult to maintain. Each consulting partner was paying a sizable portion of his or her income into the company to cover operating expenses, which included the support of new members not yet adequately trained or well enough known to be able to get work. Essentially, partners wanted an equal distribution of power and lower overhead.

To achieve these goals, company members are now engaged in ongoing efforts to create a democratic organization that supports individual and team performance, facilitates company cohesiveness, and mirrors their shared values and philosophy. Here are some of the approaches that have worked for DTA so far:

An Organizational Structure That Reflects the Values of the Company. The organizational structure of the company is flat. Each consultant has a full voice in all company decisions and an identical partnership role, each pays an identical amount of money into the company each month, and each has equal liability for company debts and taxes. In all other respects, however, each partner manages his or her own business interests individually. Since company shares have no equity, there is no buy-in fee for new partners.

The thirteen partners manage the company as a team. They take turns being responsible for certain tasks. For example, each consultant assumes the role of "Administrator of the Week" on a rotating alphabetical basis. When appropriate, the Administrator will use the shared phone line to initiate discussions about a matter at hand, and then make a decision based on the combined thoughts of the group.

To handle periodic decision making concerning finances, computers, the course the group teaches, the audio and video tapes the company produces, human resource issues, and marketing strategies, DTA came up with the idea of the "gyroscope group." In this arrangement, each consultant assumes one of six areas of responsibility for a quarter, on a volunteer basis. The constant change of leadership prevents any one person from getting too attached to a particular role and thus upsetting the balance of power in the organization. The "Beanie of the Quarter" keeps an eye on income; determines how much the company can spend on education, expenses, and equipment; and keeps everyone informed. The "Propeller-Head of the Quarter" explores options for needed computer-related decisions and makes recommendations to the whole group. The "Yoda of the Quarter" watches over the results and the general quality of the courses the company offers and keeps the group aware of issues it needs to address. The "HR Specialist of the Quarter" keeps the partners cognizant of decisions they need to make on such things as office salaries, performance appraisals, and bonuses. The "While You Sleep" consultant oversees the production of tapes and videos. Finally, the "Universe Disturber" leads the effort to drum up global business for the company and spread the word about DTA and its work. >Like the Administrator of the Week, each decision-maker ultimately decides what to do based on the joint thinking of the partners.

Interactive Communication Systems. DTA's partners communicate with one another constantly, and in several ways. The group schedules regular face-to-face meetings, at which they work on projects together, continue discussions begun on the Internet, and make decisions-all the while freely expressing their views. Each consultant has access to a common database - and to the other partners - through the office network of computers. This network enables partners to exchange designs and notes and continually improve both products and methodology.

Everyone has a voicemail box in which others can leave messages. In addition, a 900 phone number serves, like the Internet, as a "meeting place" for discussions, which are often contentious. The partners have agreed that anyone with a problem or concern will address it immediately with the person(s) involved, whether face-to-face, over the phone, or through electronic means.

Joint Learning Opportunities. DTA teaches a class in Whole Scale[trademark] methodology (the foundation of the company's work) once each quarter in various domestic and overseas locations. Every partner makes an effort to be there in order to both teach and learn from course participants as well as one another. The money participants pay for the course underwrites each partner's presence. When the course brings in additional revenue, the group may use the unallocated funds to finance special retreats that help members broaden their perspectives and gain new information. The consultants also collaborate on writing books, articles, and other materials.

Central Administrative Center with a Flexible Infrastructure. A staff of two persons, operating as a self-managing work team, runs the DTA office. They distribute marketing materials, prepare course packets, provide a single contact point for clients, maintain the company's computer and communication systems, send out invoices, receive money, and channel it to the appropriate partners. The money each consultant contributes to the company each month supports all office functions.

When a prospective client calls the office for information or a proposal and does not ask for someone by name, the administrators refer the person to the consultant at the top of a revolving, alphabetical list.

Balance Between Independence and Interdependence. Each consultant has the opportunity to be flexible and adaptable in terms of the kind and amount of work he or she chooses to do. Typically, partners obtain work using the DTA logo and methodology, and then partner with the person(s) in the group who can best support the work. Often this means that a more experienced consultant partners with a less experienced one. Each supports and strengthens the other, both learn from the experiences, and together they raise the level of shared knowledge in the company.

The connections among partners that DTA's organizational framework encourages are a key factor in helping the company to be one unit rather than thirteen separate entities. In fact, the firm's partners say they never work alone. Even if they are physically alone, they rely on the thoughts and ideas they and their partners have generated and are constantly generating together. The synergy they experience is reflected in DTA's motto: "One brain, one heart."

Jo Ellen Roe is an independent consultant and freelance writer who can be reached at 734-426-5872 or jeroe@compuserve.com. For more information on At Work, contact Alis Valencia, Editor, 7026 Saroni Drive, Oakland, CA 94611, tel 510-339-6700, fax 510-339-6722, e-mail AtWorkNews@aol.com.

 
 
Copyright Dannemiller Tyson Associates 2000-2008 - All Rights Reserved




Web Design