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Why Companies Don't Need Headquarters

Posted June 03, 2010 7:34 AM

From Forbes.com: Technology News:

James Sinclair, head of the hospitality industry turnaround firm OnSite Consulting, says one of the biggest challenges his employees have had adapting to the way he runs his business is answering the question, "But where is your company based?" The answer: Wherever the work needs to be done. "We have 65 people, and we have no office," Sinclair explains. Headquarters is a post office box; he also has an Internet-based phone and unified communications system.

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Guru
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#1

Re: Why Companies Don't Need Headquarters

06/03/2010 8:07 AM

That model may work well for some companies, but many companies rely on other resources besides a laptop and people.

For instance, it is much more expensive to supply every engineer with a full test suite of tools to do their job than it would be when you can pool your resources.

This is one reason many companies have in the past deflated their operations and pulled their operations under one roof. Engineers can be there when a manufacturing issue pops up. Management can be there to work with engineering when proposing a new project. People share resources, heat, AC, tools, and most important, knowledge and camaraderie.

Sure, you might be able to pick up a phone and talk to a colleague, but nothing cements a team better than working elbow to elbow.

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Anonymous Poster
#2

Re: Why Companies Don't Need Headquarters

06/03/2010 8:13 AM

This may work fine for those companies with employees working for only one client or on one project at a time. But how common is that?

Also I wonder a bit how this impacts employee attitude. Humans are social critters, fond of forming group attachments (and even negative entanglements). Without that home-office camaraderie I'm curious if employees would be prone - subconsciously or otherwise - to bond with the employees in their client's company, thus endangering the job's necessary professional detachment.

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#3

Re: Why Companies Don't Need Headquarters

06/03/2010 10:29 AM

KrisDelTM enterprises has branches everywhere.
Del

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#4
In reply to #3

Re: Why Companies Don't Need Headquarters

06/03/2010 12:06 PM

I think you're confusing "having branches" with "going out on limbs".

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Guru
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#6
In reply to #3

Re: Why Companies Don't Need Headquarters

06/04/2010 7:47 AM

it's nothing to be proud of, so does Japanese Knotweed.

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#9
In reply to #6

Re: Why Companies Don't Need Headquarters

06/04/2010 9:14 AM

Oh your thorns, they pierce me to the quick.
It's all Kris' fault...honest.
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#10
In reply to #9

Re: Why Companies Don't Need Headquarters

06/04/2010 4:09 PM

That'll never stand up in Crown Court. I ain't here, so you can't blame me. The Kris are the Skiwibbels wot won't be blamed for nuffink .

Companies doin't need HQ ? What will the CEO and staff do ? For gawds sake, where's the kudos in working from home, or tapping on a laptop in Starbucks. They need large buildings, potted plants, and a multitude of minions. Besides, G8 (or is it G35 yet?) protestors need a focal point for riots. phew, that was close. Nearly got topical, but saved myself with some OT political dross . Wasn't here, you can't prove nuffink

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#5

Re: Why Companies Don't Need Headquarters

06/03/2010 6:27 PM

Where ever I hang my hat that's my home, my nom de plume is also my trading name. Though it may not translate across the written word, if you say it it becomes obvious.

As a "contracting" Radio Technician, and subsequently Commercial Electronics Technician I needed a trading name that would indicate a willingness to travel to the job.

It's from old Norse meaning "to go beyond and return". A reliance on my heritage of course but there you go.

My office is wherever I park my car and have phone reception, and yes I have worked out of my car for clients as well.

As for forming friendships with staff in client companies? Well if you don't then there is little chance of getting a return gig. You don't have to be everybody's bosom buddie, but being genial is way better than being perceived as an A$$hole. Certainly when dealing with firms in Australia the rappore can be more important than the price.

Not having a headquarters office doesn't work for all situations but that's true of all corporate plans. Small (you don't get smaller than a one man band) service companies can get away with it to a point. Entities like IBM, HP, et al, which have manufacturing processes could not do it.

You have to use the right tool to do the job right.

To pronounce my nom de plume; To bug[ge]ry [a]n[d] ba[c]k.

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Anonymous Poster
#7

Re: Why Companies Don't Need Headquarters

06/04/2010 8:10 AM

I don't think any medium to large company can get away without having a headquarters. It is best to have a small HQ but you have to have an HQ of some sort. If clients want to visit you, and in my business they generally do then you can't really meet them at a post office box!

Customers visit our HQ all the time. Its good to get a good rappor with them because if we didn't have the HQ with all the nice customer facing parts then we would have to meet them on the shop floor which isn't nearly as nice and would get in the way of production!

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Anonymous Poster
#8

Re: Why Companies Don't Need Headquarters

06/04/2010 8:29 AM

If you can make that shoe fit for all or part of your company it should work well. I know of am environmental consulting company that works that way. They are quick and responsive. As for meeting on the shop floor, while it isn't convienient it does demonstrate a connection most customer and employees never see. A small company office for record storage, billing, mailing communication point and, a small conference room, will be enough for 60% of the companies out there. You investors should not be paying for oppulance unless oppulance is what you are selling.

The question you must ask yourself is: Can my people work well without looking at each other? If you can't trust them to be productive you must be prepared to replace them. If they need direct supervision to do the job you have the wrong people or you are a poor manager.

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