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Co-located or dispersed teams?

There were conversations going on this week about the merits of having dispersed versus co-located team members. We are trying to decide whether to co-locate people. It's a fraught and complex issue not least because it could mean requiring people to move. It also means determining criteria for co-location, for example:

  • Is it to improve the outcomes of working on a specific project? If so, what happens when this is closed? (And how do we know we couldn't get the same outcomes from a dispersed team?)
  • Is it to encourage multi-disciplinary working? If so, how do know what multi-disciplinary mix to co-locate in a continually changing work context?
  • Is it to cluster functional or operational team members together (perhaps creating silos)? If so how will we know that this type of co-location is 'better' than multi-disciplinary?
  • Is it to indicate that we don't approve of remote/dispersed/virtual working? If so how will we explain that as many organizations are now shifting towards virtual working? (Also, does requirement to be on a specific site challenge attracting and retaining people?)
As in many conversations, views are based on emotion, opinion and personal preference with not too much (any?) discussion about actual evidence of the merits of one over the other. I started to look around for empirical research on this topic.

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