Benefits of co-locating

Over the past 5 months, I have been working a large global project to create a step-change improvement in profit forecasting work process and computer systems. Our team is large and spread out around the globe. Team members hail from four different companies and six countries: U.S., Canada, India, U.K., Venezuela, and the Philippines. Last week, team members gathered in Toronto for a design review. What I found so striking was how effective co-location can really be – even if it’s only temporary. Our team was able share knowledge and experience much more quickly than normal; each one of us picking up on each other’s more subtle cues and body language. The big issues were put on the table immediately, and we were able to drill to the heart of matter. We were then able to put plans in place to tackle these issues in a few hours rather than a few days. The experience was motivating for the whole team.

We often hear about the rise of off-shoring, specifically in India, and the cost benefits that it brings. However, we shouldn’t forget the hidden time, co-ordination, and motivation costs that separating a team can have. I think this is especially relevant in system development and business process optimization (BPO) work where iterative/agile development and team cross-training are so important. Also see Embedding Design Into Business (bottom of link - Rotman Magazine).

But how does this relate to smaller businesses where off-shoring may not even be an option? Off-shoring is clearly not the only way a team can be separated. Flexible work arrangements, outsourcing, and sub-contracting can separate a team even if all the work happens in the same city. There are many good reasons to build a team that is not naturally co-located (by no means am I saying that teams should only be co-located), but the benefits of co-location are also real and significant.

Jutta Eckstein has some good suggestions on what can be done when your team is not naturally co-located in Aglie Software Development in the Large: Face to Face Conversation. Though written from the perspective of large developments, the suggestions are generally applicable. There are several things that you can do ensure your dispersed team is communicating effectively, but is the responsibility solely yours? What about the companies, such as Trioro, that provide development, sub-contracting, and BPO services? Shouldn’t they be enabling effective communication and making co-location easy for you … the client?

I will leave you with that, as I am sure you can guess my opinion.