This article is included in our collection of write-ups on decentralised companies.
Since the start of the pandemic, decentralised business structures have gained significant popularity. This strategy has been viewed as a workable solution for tackling the obstacles created by the current environment. Several businesses have adopted this strategy to reap its perks, such as heightened adaptability, availability of a broader range of skilled professionals, increased efficiency, etc.
Although remote or flexible working methodologies could offer substantial benefits, several CEOs still feel hesitant about implementing such modifications. This shift would necessitate considerable changes in the organisation’s operations, systems, and overall ethos. It’s reasonable that some may be unwilling to accept this novel work approach.
It’s not unusual for some people to feel cynical about decentralised businesses, but it’s evident that such entities are here to stay and will soon become the frontrunner in specific sectors. As a result, it’s vital for those who have reservations to educate themselves on this idea to comprehend its significance in the future of work.
What are Decentralised or Distributed businesses?
Above all, businesses that have introduced a hybrid, decentralised mode of conducting their operations are known as decentralised enterprises. It’s helpful to think of such entities as having three distinct elements.
- They have in-house as well as remote staff.
- They don’t have teams based in the same geographic location.
- They have offices located in different cities.
A decentralised business refers to a company that functions with remote teams situated in multiple locations, ranging from the same city to different continents. These entities may not always have all employees present in the office physically. Moreover, they might have a primary office and several branch locations, each having their independent IT departments and communication infrastructure.
At Works, we have a varied team consisting of both internal and remote staff. Our offices are positioned thoughtfully in the United States and Latin America, which enables us to construct a robust organisational system and offer better assistance to our widely dispersed team.
Notably, we have devised our unique approach to work that emphasises team cooperation and company culture, allowing us to develop sturdy teams that feel like a family even while working distantly. This is a critical aspect of managing a decentralised business.
What’s the Significance of Decentralised Businesses?
If there’s one thing that I have been successful in convincing you of so far, it is that distributed businesses are a practical alternative for operating in today’s world. On the other hand, I firmly believe that decentralised entities will be the preferred option for companies in the future. This is related to two concepts that have been in the limelight of late: flexibility and durability.
It is widely acknowledged that flexibility is crucial for achieving success in the corporate world. The capability to modify strategies, personnel, and resources swiftly and effectively permits companies to remain competitive, even in the face of rapidly changing market dynamics or unforeseen circumstances. This ability to make quick changes to operations helps companies to survive despite the severity of any crisis.
Finally, I wish to quote a remark from Nacho De Marco, CEO of Works, who succinctly captures the significance of developing resilience in today’s world:
Resilience denotes the capability to manage taxing circumstances and persevere through them. Merely responding to unexpected challenges is insufficient for a company to prosper; survival should not be the primary goal. Hence, it is vital to concentrate on the other aspects of a resilient entity- namely the ability to adjust and transform to stay competitive.
Nacho rightly emphasises that resilience goes beyond just surviving. During the pandemic, numerous people regarded resilience as a mere survival tactic. However, it is much more than that. It is an enduring attribute that impacts the entire business, and not just a method of managing a crisis. Resilience should be considered an ongoing process and not just a one-time occurrence.
As a result of their close association, the concepts of flexibility and resilience are often interchanged. Having adaptable systems and staff enhances the likelihood of success when confronted with uncertainty, without compromising the ability to execute. Adaptability facilitates a new outlook and reassessment of how your company can provide value in a changed setting. Possessing this capability is the core essence of resilience.
When discussing the concept of a decentralised business model, it is essential to remember that it does not necessitate a central physical office or a team of staff. Instead, it is established on a global network of specialists who are connected through nodes scattered throughout the world.
Despite appearing to be limited, a decentralised model can provide an array of benefits to companies. By leveraging distributed teams, businesses can enjoy the perks of both internal and remote teams, along with other advantages.
- Improved efficiency
- Access to a larger pool of potential new team members
- Decreased wasteful spending with improved budgeting
- Increased rates of re-enlistment
- High potential for expansion
Highlighting the benefits of a decentralised strategy is sufficient to convince businesses to adopt this approach. Employees profit from the freedom to work from their preferred location, leading to an enhanced work-life balance and greater job satisfaction. Gartner has identified decentralised enterprises as a top strategic technology trend for 2023, making it an opportune time for companies to adopt this model for staying competitive in the post-pandemic world.
Working in the Digital Transformation Era
At Works, we have been steadfast in our belief that digitalization is the optimal means of ensuring long-term success. Given the extensive reach of this transformation, it is reasonable to infer that it has a pivotal role to play in the move towards a decentralised business structure. This is because digital transformation provides the essential tools to enable such an approach.
In the present times, digital transformation is becoming increasingly imperative, particularly for organisations with a worldwide reach. It enables companies to harness decentralised business solutions such as cloud computing, remote networking and edge computing.
Digital transformation entails more than just employing state-of-the-art technology; it involves redefining the way businesses function. With the rising need for digital transformation, employees must adapt to new work structures and with the desire for a superior work-life balance and increased autonomy, it is unsurprising that geographically dispersed organisations are growing in favour and considered to be the future of commerce.