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Any examples of a big company actually doing a gradual move this way? It doesn't seem like it would work. Satellite offices are tough to do right. It's very ha
by alexhutcheson 7y ago
Any examples of a big company actually doing a gradual move this way? It doesn't seem like it would work.
Satellite offices are tough to do right. It's very hard to build trust between individuals at the different offices without regular face-to-face contact. In the absence of this, you end up with negative relationships between teams at different sites: "The team in Springfield doesn't care about quality" vs. "Those Shelbyville engineers are always dragging their feet and never launch anything". Communication bandwidth between sites is also much more limited - you need to minimize how much a team at site A needs to communicate with teams at site B to get their job done.
Another issue is how to get the satellite office going from a cold start. Do you re-assign projects that are already being worked on in your existing office? Most of those employees aren't going to move, and they're going to be upset that their project was yanked away from them. You've also set the project up for failure because everyone on the new team has to ramp up on the necessary domain knowledge from scratch. So you think "Ok, I'll leave existing projects at the current office and start new efforts at the new office." Now you have an office exclusively working on things that were deemed to be either too low-value or too risky to work on before - not a recipe for success.
Leadership is another major issue. If your senior leadership moves to the new office, they're going to be constantly flying to the larger original office to supervise things there. More realistically, they're going to stay in place, because their time is better spent at the bigger office. This creates problems as leaders move up the ranks at the satellite office, because eventually they hit a point where their career stalls unless they move to the "head office". Teams at the "head office" are at a permanent advantage in project selection, etc. due to proximity to senior leadership.
In short, it's not as easy as your list makes it sound, and it's particularly difficult to grow a satellite office to a similar scale as the original office.
- freeAgent 7y agoAlmost every successful medium- or large-sized company has done this. As they grow, they open new offices, which they seed with existing staff who are willing to either permanently or temporarily relocate. Most of the time those offices have specific areas of focus, at least when they're starting out. That way they minimize cross-geographic dependencies. To pick a totally non-random example, Stripe has followed this model. It's evident when one looks at their job listings: https://stripe.com/jobs/search https://stripe.com/jobs/search By growing any one of their regional offices, they could move their headquarters. Toyota recently did this over the course of several years. They announced the relocation in 2014, but didn't officially move the HQ until 2016. The planning and execution spanned years before and after that timeframe as well.
- alexhutcheson 7y agoYeah, I specifically meant the "grow a new satellite office into a new HQ" transition. I know companies open satellite offices all the time, but moving your HQ to one of them is much less common.
- secabeen 7y agoThey did it, and they lost 25% of their of employees doing so: https://jalopnik.com/toyota-loses-25-percent-of-its-american-workforce-in-hq-1796713649 https://jalopnik.com/toyota-loses-25-percent-of-its-american...
- freeAgent 7y agoA sizable portion of that 25% were people who decided to retire (early), but yeah...it was massively expensive. They also offered very, very generous moving packages to everyone who did relocate along with early retirement packages for those who stayed.
- petewailes 7y agoLots in the financial industry over the last 3 years in London, due to Brexit. Soft moves by letting one office shrink due to natural decline from people moving on and not rehiring in that office, but in another elsewhere.