Here's a nice article about managing telecommuters from the CareerJournal (hat tip to George's Employment blawg).
The article offers some good nuts and bolts practices. It also misses the boat with regard to an essential elements that will help make virtual teams great teams.
Connection.
Sure they talk about weekly meetings and VOIP and logistics.
I mean connection.
The interviewer asked what the managers did to ensure that telecommuters don't abuse their situation. The response was superficial - something about requiring a dedicated office. And she mentioned incentives - more extrinsic motivators.
Yes, yes, this is important. People need to have dedicated space and few coins jingling in their pockets. But is that what's most important in ensuring the remote relationship works for both parties?
I believe that the KEY - the key - to telecommuting situations is connection, engagement, and relationship. An invested employee works hard and is more likely to exercise good judgment.
Also, I think we need to shift our mindsets when we have people working from home. The goal ought not be to ensure control. Sure, some structure is required (structure and control are different). But let's face it - we don't control people in the office and we are even less able to control people who are working in their PJs while petting their cat and reading their daily fix of Management Craft :-).
Our only hope to get value from this arrangement is connection and engagement - true partnership and collaboration. Treat these people more like you would a trusted and valued contractor.
All that said, if you and your company are not engaging your in-office employees, you are not likely ready to employ telecommuters. Get the engagement right first, then the opportunities are endless.

Great post and right on. Not only do I work from a home office in my practice, my paralegal works from her home too.
Posted by: Grant D. Griffiths | September 13, 2007 at 02:44 PM
Another boat that may have been missed in this one is setting clear goals for the work and reviewing progress on a weekly basis. As long as the work is getting done tot he standard demanded - who cares if they blag the off half hour to walk the dog or vacuum the stairs?
So I would add better contracting around outputs to the better connection piece.
Posted by: mike chitty | September 13, 2007 at 11:52 PM
Another issue that may have been missed in this one is setting clear goals for the work and reviewing progress on a weekly basis. As long as the work is getting done to the standard demanded - who cares if they blag the odd half hour to walk the dog or vacuum the stairs?
So I would add better contracting around outputs to the better connection piece.
Posted by: mike chitty | September 13, 2007 at 11:53 PM
Mike - I agree about the contracting and clarity. And you know, many managers don't get this right with people located in the office.
Posted by: Lisa Haneberg | September 14, 2007 at 08:35 AM
One more thing - although for salaried positions I agree, who cares if you get the job done then walk the dog. But for hourly positions, employers are required to track actual hours and this makes be human and flexible a bit more challenging.
Posted by: Lisa Haneberg | September 14, 2007 at 08:37 AM
You have been tagged for The Personal Development List. I would love for you to participate.
Posted by: Priscilla Palmer | September 16, 2007 at 11:06 AM