For businesses today that still have a firm bricks and mortar base the challenge is how far and how fast should they move towards becoming virtual. Retaining competitive edge demands a close match of resources to output, fast response to change and an inexhaustible capacity to innovate. Achieving those things while retaining control of organisational output and a reliable return to shareholders - or, more widely, stakeholders - argues against a blind leap into a virtual existence. But what business can afford to neglect the obvious advantages of reducing the cost and in-built inertia of a traditional organisation structure?
Since establishing, monitoring and maintaining a network of partners requires disciplines and skills related to the management of third party relationships, the natural place to which the Board should turn for implementation is Procurement. Nevertheless the importance of handling people-based interactions within the network raises HR related issues almost equally strongly.
A virtual company solution cannot be bolted on to an existing organisational structure like a new technical support contract or an outsourced contact centre. To be successful it requires a completely new approach to the selection, initial introduction and subsequent management of your chosen allies. Less rigid (but equally robust) contractual arrangements, sharing knowledge, building in flexibility and determining success measurements that are relevant to all parties are essential components of the virtual organisation, and senior procurement professionals should be leading the development of these approaches. Yet the importance of individuals has also been stressed and HR managers must recognise that their remit extends well beyond the dwindling number of long-term, directly employed staff.
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