ACCA Strategic Professional · Strategic Business Leader · Enabling success: organising
Lumora Ltd, a software firm, plans to adopt a 'hot-desking' and remote model, with staff working from home most days and fewer fixed offices. The board's primary aim is to retain skilled staff and cut property costs, but it is concerned about learning and knowledge sharing. Which response best reflects the strategic implication of this model?
Lumora should create deliberate mechanisms for learning and collaboration, such as virtual communities and planned in-person sessions, and manage by outputs and trust. Remote working reduces informal tacit knowledge transfer, while heavy monitoring or hierarchy would undermine retention and flexibility.
- ARely on staff's existing explicit knowledge, since remote work removes the need to share tacit knowledge
- BIntroduce deliberate mechanisms such as virtual communities, scheduled in-person collaboration and trust-based performance management by outputCorrect
- CIncrease direct supervision through monitoring of hours worked to compensate for lack of presence
- DMove to a strictly hierarchical structure to maintain control over dispersed staff
Explanation
Dispersed working reduces informal interaction, the main route for tacit knowledge transfer, so the firm must replace it with deliberate collaboration and manage by outputs and trust. Heavy monitoring or hierarchy undermines the retention aim and flexibility benefits. Ignoring tacit knowledge is incorrect since it remains important.
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