Wednesday, November 20, 2019
Amazons plan to have 2 headquarters could lead to these 3 pitfalls
Amazon's plan to have 2 headquarters could lead to these 3 pitfalls Amazon's plan to have 2 headquarters could lead to these 3 pitfalls Amazon announced today that it will be building a second headquarters in North America, conveniently deemed Amazon HQ2, which could add up to 50,000 âhigh-payingâ positions. But thereâs a chance that this may pose certain challenges.With all the structural changes that are bound to come the companyâs way, itâs worth looking into the issues it could potentially run into by having more than one headquarters.What is Amazon HQ2 is all aboutAmazon reportedly expects to spend more than $5 billion on construction and running its second headquarters - which is âexpected to create tens of thousands of additional jobs and tens of billions of dollars in additional investment in the surrounding community.âJeff Bezos, Amazon founder and CEO, commented in a statement: âWe expect HQ2 to be a full equal to our Seattle headquarters⦠Amazon HQ2 will bring billions of dollars in up-front and ongoing investments, and tens of thousands of high-paying jobs. Weâre excited to find a second home.âBut Amazon isnât going it alone when it comes to deciding on a location - instead, itâs calling on interested people who ârepresent a city or regional economic development organization in North Americaâ to get in touch with them and respond to a Request for Proposalâ or RFP.So what will it take for the corporate giant to break ground for this project in your city?âWe are looking for a location with strong local and regional talent- particularly in software development and related fields- as well as a stable and business-friendly environment to continue hiring and innovating on behalf of our customer,â the company noted, and detailed the exact criteria further in a press release.Amazonâs current headquarters in Seattle is reportedly made up of 33 buildings, a workforce of more than 40,000, and 8.1 million square feet.Here are some challenges Amazon might face in having multiple headquarters.Two headquarters, two frames of mind - and too little timeA mazonâs press release indicated that while HQ2 will add new employees and leaders, current top executives will have the option to have their employees in either of the headquarters - or even both of them.But having teams spread across headquarters in different locations could make it challenging to rally the team and have them operate as a unit.An Inc. article on having various business locations speaks to âlack of team cohesiveness,â where having workers who havenât met can create an ââus-versus-themâ mentality.â It also mentions âout-of-site-out-of-mind syndrome,â where managers who are juggling a lot at a main location arenât able to devote time to workers at other ones.Thereâs a chance that both of these factors could be difficult for managers and employees to work through.What if thereâs a huge drive to relocate to HQ2?Amazon employees will reportedly have a say in where they work - the release notes further that HQ1 employees can either stay at th at location, âor they could have an opportunity to move if they would prefer to be located in HQ2.âSo executives may not be the only ones saying they want all or some of their teams in the new building. Giving employees the option to speak up as well gives them a chance to be heard, but also runs the risk of having a flood of parties interested in hopping to HQ2.Employees will still need to be able to communicate effectivelyAn article from NewGround on âsplit-operations,â defined as âthe practice of dividing an organizationâs headquarters across multiple buildings in the same cityâ (which often happens thereâs no remaining space for growth), shed light on the nature of this process, what to think about before starting it, and how to aid the process.Although Amazon doesnât seem to be limited to Seattle for its second headquarters, the third tip provided seems to apply, since employees will still need to be able to work well together - no matter where they are locat ed.âOpen up the lines of communication between offices using technology. Blogs, intranets, and online collaboration tools can help employees connect through the virtual channels,â it says.Whichever city wins Amazon HQ2âs heart, it is bound to witness how the company operates and changes.
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