I know that the distributed model feels very strange to business people who are used to the traditional, centralized way of running a company. But I’m here to tell you that it works. It might even work a lot better than the traditional model for certain types of businesses. After all, distributed systems tend to work well in general (the internet itself being a prime example). If you try this model yourself, I think you will see clear benefits in employee happiness and hiring, and I recommend these core strategies that have worked for us: Have frequent company and team meetups to address the social challenges, use co-working and event spaces instead of traditional offices, and fully embrace new real-time, activity stream inspired communications tools like P2.

via 5 reasons why your company should be distributed « toni.org.