English version: The virtual dimension of corporate culture

As we approach the dawn of the 21st century, the corporate culture of many companies is increasingly being influenced by the Internet. It almost seems as if companies are at drift because of the Internet:

• World-wide, a new communication language, the so-called screen language, is being used for, among other things, camcorders, CD-ROMs, computer programmes, and teleconferences.
• Managers meet to discuss such issues as web-sites, search engines, and internet recruitment
• New jobs have been created: webmaster, content engineer, and e-lancer (instead of free-lancer). Often, the tasks are not well defined. One needs creativity and a strategic sense for e-commerce
• Office meetings take place through the computer network. The mobile office is becoming the common standard. Colleagues are called on a mobile phone and, if needed, an internal camera may help to develop a product. A convertible screen and folding mouse provide easy access to the Internet
• New market opportunities are available to virtually active companies. Contact with the client is changing, and contact with other clients and companies it becoming more intensive
• Virtual training is becoming part of everyday practice.

Can we still speak about corporate culture if people mainly work together in a virtual office? In the traditional definition, corporate culture includes the norms and behaviour which determine how people collaborate, and which affect their willingness to put energy into their work. Will the virtual corporate culture change these traditional norms and behaviour? We will take a closer look at some industrial branches where the Internet is used rather intensively, and where in no time at all new jobs and behavioural codes being developed.

Large companies

Large companies usually have an internal electronic communication system, the Intranet. Personal relationships have changed fundamentally. Authority is no longer taken for granted. The organisation has a flatter and more democratic nature. The dissemination of information is faster. Middle managers in particular, have fewer information advantages than they had in the past and their power is decreasing. Moreover, the organisation has become less bureaucratic. The director types his own letters; the secretary only takes care of the layout of a letter. Misunderstandings may occur sooner, but they are solved earlier. Large companies with overseas locations can take direct advantage of the virtual communication opportunities. Time and distance play only a marginal role. New positions are created, such as the virtual organisation leader. He/she assembles teams of experts from around the world to achieve specific goals. When the task is completed, the leader disbands the team and moves on to the next problem. The work is generally co-ordinated online, where the manager can oversee results and cut back on international calling expenses to boot. In addition, large companies more often appoint ethical hackers to break into its network. By simulating attacks from the Net or from an internal source, ethical hackers locate weak spots in a company’s network. They then work with clients to prioritise the most serious threats and suggest solutions.

Banking

The corporate culture in banking is changing very rapidly. In the past, the bank had a clearing monopoly on financial transactions. In the near future, e-commerce will take over this role. Paying through the Internet PC or mobile phone is not 100% safe yet, but within a short time, it will be completely reliable.

In banking, certain new jobs will emerge and other will disappear. Clients preferring digital share trade no longer need a chic gentlemen to safeguard their money. These clients prefer to do the transactions themselves. It is no longer a stock exchange adviser who looks after the client’s interests, but an intelligent database. This e-butler remembers the client’s orders and learns through the choices of the client. The e-butler knows what kind of stock exchange news the client is interested in. In addition to the electronic stock exchange adviser, the stock exchange floor itself will change rapidly too. Van Eerden, chairmen of the Governing Board of IMG Holland in Amsterdam, is convinced that the physical stock exchange floor will disappear soon: "All these little men with their phones and their funny jackets, it is in fact nonsense." The Postbank NV also changed its HRM organisation as a result of the investment activities of clients on the Internet. Some of the current personnel will disappear. New positions include IT employees for technical support, employees who make sure that the orders through all communication lines of the Postbank are synchronised (Internet, girophone, receipts, etc.), and employees who reply to questions by phone and e-mail.

Small and medium-size enterprises

Apparently, small and medium-size enterprises (SMEs) an operate more efficiently in the market by using the Internet. As soon as an Internet PC or a mobile phone with an Internet connection is purchased, the owner is a global company. In the retail trade and service industries, the Internet is already playing an important role.
Often, SMEs are not yet familiar with the use of the Internet. New e-techniques are rapidly being introduced. SMEs lack the financial means to make heavy investments. Sometimes hasty decisions are being taken on electronic changes with the idea, "Everybody is doing it, so I cannot lag behind."

In the retail trade, it is often rather difficult to uphold the same quality standards towards the client and, at the same time, benefit as much as possible from electronic opportunities. In the men’s fashion trade, for example, the profit margin was usually gained at the payment desk, after the client had chosen his suit. At the desk, the client bought accessories such as a neck tie, suspenders, and socks. Subsequently, on the Internet, the men’s fashion shop has to offer more than just the tailor-made suit, but should also provide a membership card and other extras.

In the HRM organisation of (small) multimedia companies, various new jobs have appeared. The metrics analyst digs beneath the surface of traffic reports to create a detailed picture of what’s really happening on a web-site. He/she spots patterns in user behaviour data, such as visit frequency, visit length, and who’s shopping at certain times, and what they’re buying. The new metrics analyst helps Web companies formulate advertising rates, identify cross-selling opportunities, reduce churn, and develop new market strategies. This job requires a strong business instinct.

Training institutions

Universities and companies are increasingly offering virtual courses. Virtual universities such as Europace in Belgium (1998), The International Multimedia University in Italy (1998) and Eurocampus Online in The Netherlands (1999) have been founded. International companies such as KPN, IBM and ING have also established their corporate virtual business school.

Multimedia systems, such as the Internet, ISDN videoconferencing, interactive satellite tv, and CD ROMs are being used in addition or in place of traditional learning materials. Through the application of multimedia systems, it is possible, to participate, from your home base location, in an online course or seminar where experts from around the world present their lectures. The local educational culture is however often neglected if the same virtual course is disseminated world-wide. Thus, for example, in a multi-media USA-Dutch collaborative project it happened that the Dutch students were considered to be acting too flexibly in the opinion of the American students. The Dutch students found the American students too strict in their learning style and too indifferent to deadlines and appointments. After an intensive information session with the lecturers and the students concerning the cultural differences, the communication and team interaction improved.

There is a great danger that training institutions are becoming too dependent on the Internet and, at the same time, their body of knowledge is becoming dependent on marketeers. The student, on the other hand, is more interested in intelligent courseware, on its own level, without commercial noise.

Final remarks

We return to the introductory question. Will the Internet change the traditional corporate culture? We have seen that the Internet has changed companies fundamentally. In the boardroom, the keywords strategy and technology are often mentioned in one breath. At the grassroots level, virtual project teams work together. In virtual collaborative work, the issue of trust is becoming more and more important. Global virtual teams operate in the absence of authority, social context, and personal relations.
This can result in great insecurity among the team members. At such as point, it is important that the team member can identify with the corporate culture of the (home) company. Nevertheless, to many e-workers, the Internet is already their home base. If the management of a company is able to recognise and acknowledge this phenomenon, most of the insecurity can be eliminated and, strong co-operative behaviour can originate.

Dr Sylvia G.M. van de Bunt-Kokhuis is senior consultant of Adviesbureau Dr P.A.E. van de Bunt bv in Bloemendaal. She published thirty international articles and three books on management, education and culture.