Becoming a distributed company is challenging but highly rewarding, especially if you do it right. For this to happen, you need a suitable strategy, which you can design by following these recommendations.
This article is part of our Distributed Companies series
The distributed approach to work has been gaining a lot of momentum in recent years. In fact, distributed enterprises are now a hot trend that isn't likely to go away. Therefore, it is natural that more and more companies are trying to join the movement. Unfortunately, many of them do this without strategizing about it, which often leads to failed integration.
To prevent this from happening to your company, you need to really understand everything about distributed enterprises. We've already covered what a distributed enterprise is and why you should care. Now, we'll cover an equally important step on your path to adopting the distributed approach: learning how to plan your strategy around it.
The challenges of distributed companies
I believe the best way to start planning a strategy for becoming a distributed company is to consider the challenges that this entails. It's highly likely that if you're reading about the distributed approach, it's either because you're familiar with its benefits or because you've read about how it can better prepare you for the post-pandemic world. But getting there takes time and a clear roadmap to avoid falling prey to the many pitfalls caused by such a change.
That's why I think it's best to start by listing some of the most common problems with the distributed approach, so that you can use them as guides for strategizing. Thus, the most common challenges with distributed approaches include:
- Communication problems. Even when a distributed company has offices spread across different cities, countries or regions, real-time communication and collaboration can quickly become a problem. Without a set of governing principles that include expectations, policies, and tools, any distributed approach is doomed to fail.
- Cybersecurity threats. Given that your distributed teams will be working in multiple locations at the same time, your corporate network will be more exposed to threats. This is especially true if you ask your team members to use your shared devices and connections, which increases your attack surface.
- Operational risks. Anyone moving from traditional in-house work to distributed work should know that operational adjustments will require adjustments ranging from minor to radical. This is because a distributed company works differently from a traditional one, making it impossible to use the same methodologies and processes.
- Company culture. Working with distributed teams often leads to a highly diverse workforce that brings together people from different walks of life. This is an incredible asset to have, but it can also affect your company culture. Furthermore, the lack of a shared space can lead to growing disagreements and a general disconnection from the company as a whole.
- Cultural and linguistic barriers. While many distributed companies often turn to English for their communications, you may run into issues with how each team member uses that English, something closely related to their language proficiency and the mannerisms of their culture. Without due care, you could end up with people who apparently speak the same language, but have trouble getting their point across, which could end up generating discontent or even offending someone.
Putting together a strategy
While the challenges above do not cover the entire spectrum of issues you may encounter when distributing, they are the ones with the greatest disruptive potential. That's why I propose that you start crafting your strategy by determining how you can face these challenges. How you do this will largely depend on who you are and what you do, but there are some general considerations and tips you can follow.
Here are the most important ones.
1. Build your infrastructure
One of the most important things to face the challenges of a distributed company is to have the ideal infrastructure. This means a few things. First, it implies that you have the technical structure to enable your operations. In other words, you need assets to ensure that everyone has what they need to do their job, whether it's their own devices (like laptops and tablets), applications or networks.
And so, it means you need to consider your approach to that infrastructure. Traditionally, companies wanted to keep their data and systems in-house, which led them to develop their own server infrastructure in a closed network. While this can certainly be an option, cloud computing allows you to enjoy the same benefits of a private network but without the hassles of managing it.
When you think about infrastructure and everything that goes with it, you will be addressing some of the questions I mentioned above. The right assets should help you increase your cybersecurity, increase your operational efficiency and bridge communication gaps. While it's not enough, infrastructure is the foundation for everything you do in a distributed environment, so you need to really think about it.
2. Adapt your operations
Infrastructure can provide the foundation, but you won't go anywhere without the right processes to guide your team members. And, as I said above, your current processes may not be ideal for a distributed approach, especially because you don't have the office dynamics to support them.
Therefore, you need to analyze your current processes and define which ones need to be changed, which ones can work as is, and which ones may need to be replaced with an entirely different process. Think about your communication processes, for example. Internal teams often complement their digital communication with in-person communication. The distributed approach doesn't give you this chance, so you need to establish a process to ensure your communication is optimal.
Adapting operations does not end with communication policies. You also need to establish protocols for cybersecurity, reporting, collaboration, data management and storage, and execution , just to name a few of the areas you'll need to review. Truth be told, it's best to take a deep look at your entire organization to see what you need to do differently while working in a distributed way.
3. Redefine your management style
I could have included this in the operations section, but I think it requires its own thing, basically because you won't be able to lead your teams in the same way as you did while working in the office. There are many things to consider here.
First, there is the issue of establishing clear roadmaps and goals for everyone. Then there is the problem of monitoring the progress of all these tasks without getting carried away by micromanagement practices. Finally, you need to lead in a way that people feel connected to the company and share its goals.
Making this change will not be easy. If you come from a traditional company, you will need to abandon the idea of measuring how long each team member works to focus on results. You'll need to ensure enough flexibility so that everyone feels comfortable while working, but without giving too much leeway. You may even have to redefine roles and responsibilities, hire new middle managers and institute new management policies and solutions.
4. Adopt new recruitment strategies
The way you hire people will also change in a distributed company. As you'll be opening your jobs to more people, regardless of where they live, you'll need to interact with them from the beginning to show them who you really are and what the company stands for. This will have you redefining your job postings, the platforms you use to interact with candidates , the questions you have in your questionnaire, and even the onboarding process .
You might argue that you can use the same recruiting process you already use, especially if you were already taking advantage of online recruiting with remote interviews. While this may be true to some extent, I recommend that you review your hiring process. You certainly have some blind spots that need to be aligned with the current wants and needs of the workforce.
This could mean, for example, that you need to adjust your target audience to attract the right talent in other regions. It may also mean that you need to look for this talent in regions you have never seen before. It may even mean that you need to rethink the perks you offer to make a position attractive to candidates, especially if those perks are dependent on getting into the role.
5. Don't plan the strategy alone
When a company makes such a crucial decision, it often happens that executives and top managers are the only ones involved in it. While this is understandable from a certain point of view, the reality is that the process of adopting a work approach as different as the distributed approach will be better if you involve everyone.
By “everyone” I mean people throughout your organization . Hold meetings, ask for feedback on your ideas and open discussion about the future of the company. By doing this, you will ease the transition and prepare your team members for such a drastic change. Additionally, you may come across new ideas and perspectives that can help you make change.
There is an additional step you can take here. If you still feel a little lost or need more help planning the transition, don't hesitate to seek outside help. Strategy consultants, software developers, digital transformation experts, HR professionals, and many others can truly pave the way for a smoother transition to the distributed world.
The way forward
You should know that the 5 suggestions above are just part of the work you will have to do when crafting your own distributed strategy. You will have to define many more details than those listed here and you will certainly encounter some unforeseen events along the way. But don't let any of this discourage you.
Becoming a distributed company is challenging but highly rewarding, especially if you do it right. So, if you are determined to follow this path, here you have a map of the initial steps that will take you closer to your goal.