chapter 1

Growth in Popularity of Virtual Teams

“More and more … work is becoming something you do, not a place you go.” The workplace Woody Leonhard described in his 1995 book, The Underground Guide to Telecommuting, is quickly becoming the norm.1 Leaders worldwide agree that virtual collaboration is critical for success in today’s global business environment, and the likelihood that you will participate as part of a virtual team is almost certain. From 2005 to 2012, the incidence of telecommuting grew by nearly 80 percent, and nearly half of all U.S. companies currently use virtual teams. Of the more than 5,000 information workers surveyed in a recent study, 66 percent work remotely at least once per month and nearly one-half are involved at least weekly in virtual work.2 Virtual work completed “anytime, anywhere” included that done by people who worked from home on a scheduled basis, those who worked on the road, and those who worked from home occasionally.3

Virtual teams, as defined by the Society for Human Resource Management, are groups of people who work across time, space, and organizational boundaries and who interact primarily through electronic communications. Not surprisingly, organizations with multinational operations are more than twice as likely to use virtual teams as compared with those having U.S.-based operations.4 Virtual teamwork is critical to the success of organizations that establish and maintain strategic operations across the globe and that face a rapidly changing competitive environment. The implementation of virtual teams can minimize the inconvenience of bringing team members to a single location, cut costs, and attract scarce talent. As a result, many organizations are emptying their cubicles in favor of a virtual workplace that is radically different from that of just a few years ago. The following significant facts summarize the current trend toward the virtual workplace:5

• Of managers above the position of first-level supervisor, 70 percent now have at least one team member who is not colocated with them.
• In Fortune 100 companies, it is estimated that 70 percent of managers do not colocate with the majority of their teams.
• According to the Project Management Institute, the number of projects run by virtual teams has doubled since 2001, now accounting for over 80 percent of projects.

In today’s complex organizations, having 50 percent or more of employees working on virtual teams is not uncommon. Currently, workers spend more than 80 percent of their time working collaboratively, often across 10 or more virtual teams.6

The power of information technology and the speed and reliability of communications networks have made it easier for organizations to organize, motivate, and manage remotely located employees. Managers report that the greatest successes that emerge from team interaction include brainstorming solutions for problems and issues, setting goals for team activity, and developing plans for team initiatives and projects. Various technologies are used to assist team members in sharing their wealth of knowledge and expertise and communicating with one another to find solutions.

Teams differ in their degree of “virtuality.” Most face-to-face teams communicate virtually at times, and many virtual teams are not 100 ­percent virtual. Rather than involving a single type of interaction, virtual team communication can be achieved in several ways that generally fall into one of four categories:7

• Same time, same place interactions. These situations are similar to in-person interactions except that technology rather than face-to-face exchange is used to facilitate communication. An example is workers in the same office using chat or instant messaging to exchange ideas.
• Same time, different place interactions. Same time virtual interactions are known as synchronous communications. An example of a same time, different location interaction is the use of texting between a worker in the home office and a colleague in a business meeting in another town.
• Different time, same place interactions. Various situations, such as different work schedules or lack of common time frames, can make it impossible or impractical for colleagues to communicate in real time. The time disparity can be overcome by communication methods such as a company blog that allows employees to share posts at their convenience.
• Different time, different place interactions. Different time interactions are referred to as asynchronous exchanges. These situations represent true distance communications. One method that works in such situations is the use of e-mail for communication between globally distributed colleagues.

Not so many years ago, the common view was that effective teams rarely had more than 20 members. However, a recent study of virtual team behavior at 15 multinational companies revealed that many complex tasks involve teams of 100 or more members. Research has also shown, however, that as the size of a team increases beyond about 20 members, the tendency to collaborate typically decreases.8 As the number and size of teams increase, companies will clearly benefit from investing in virtual team development and training.

Advantages of Virtual Teams

Virtual teams have been made possible by advancing technologies. In today’s global environment, work team members may never meet in person. Such teams are made up of people who are geographically dispersed to varying degrees and who communicate with the aid of technology. As international business activity increases, more and more work is done by virtual teams with culturally diverse members. Virtual teams offer definite benefits:

• Cost savings. Virtual teams offer flexibility and the ability to overcome geographic distance. Organizational expenses can be reduced when physical meetings are eliminated. Aside from the cost of airfare, accommodations, food, and car rentals, a significant cost of face-to-face meetings is associated with the time involvement of each expert. Travel time to meetings removes participants from productive activities they could otherwise be pursuing.
• Labor pool enhancement. People who could not participate in traditional settings can be part of the labor pool. Parents of young children, caregivers, and persons with various disabilities can be effective members of virtual teams. Virtual team participation also encourages appreciation of diversity through increased exposure to workers from various backgrounds and locations.
• Facility and environmental benefits. The need for office facilities and parking spaces is reduced when some workers are able to work from remote locations. Air pollution and traffic congestion are also reduced when fewer workers commute daily.
• Employer efficiencies. Virtual teams can increase efficiency by eliminating layers of management and valuable time lost to bureaucratic processes. Such teams also enable organizations to combine the specific talents of employees located in various places.
• Employee efficiencies. Worker satisfaction is increased due to greater flexibility in balancing work and personal life. Participation in virtual teams can raise worker satisfaction by helping people feel participative in shaping their own jobs.
• Better decision making. Virtual teams allow organizations to draw on a wide pool of talent distributed through the workforce. Teams offer a depth of expertise unavailable at the individual level and the opportunity for synergy of ideas.

Virtual Team Challenges

Despite all the inherent advantages, teams face real challenges that organizations must address if they are to succeed at going virtual. While technology can present its own set of problems, the commonly held view of experts is that virtual team success is due 10 percent to technology and 90 percent to people. Some challenges can be anticipated and mitigated before they occur, while others must be dealt with as they arise.

Lack of Nonverbal Cues

An obvious challenge inherent in some virtual communication methods is the lack of nonverbal cues such as facial expressions, gestures, and voice intonation. This void can complicate and confuse team member interactions. The use of audio and video technologies, such as webcams and Skype, can enrich the impersonal environment associated with text-only exchange. While synchronous exchange more closely mimics the face-to-face process of communicating, asynchronous methods allow participants to avoid interruptions and think more carefully about their responses.

Isolation

While some people enjoy the freedom of working in their pajamas, others experience loneliness and disconnection when working remotely. These workers can feel “socially unemployed” without others in close proximity to provide support and development and to manage their performance.9 Camaraderie and meaningful relationships are harder to develop without in-person social exchanges that typically occur over shared meals, in informal hallway conversations, and in face-to-face meetings.

Lack of Cohesion

Virtual teams can lack cohesion, as relationships are harder to form in the sterile environment of cyberspace. The absence of actual physical contact makes interpersonal communication challenging, and the lack of nonverbal communication forces more dependence on words. The obvious objective of both face-to-face and virtual teams is to achieve their task goal—that is, successful attainment of their assigned outcome or challenge. However, to experience high performance and task achievement, teams must succeed in its maintenance goal—that is, the ability to get along and sustain long-term interaction. While not always recognized and articulated by the participants, the maintenance goal is critical to team survival. Team members must be able to maintain sufficient relationships with one another so they can work together effectively. If the maintenance goal is not achieved, the team will fall short of its task goal as well.

Cultural Complications

Cultural understanding is an obvious requirement for global collaboration. Culture affects the way people approach work, demonstrate commitment and collegiality, and establish expectations for effective teamwork. Obviously, the challenges of time zones and language are issues for virtual teams, as are varying views on leadership and business protocol. We will consider ways to deal with diversity challenges in more detail in Chapter 2.

Absence of Essential Behaviors

High-performing teams, regardless of their purpose, task, and mode of operation, exhibit common behaviors, which can be identified as the four Cs:10

• Commitment. Team members are committed to the mission, values, goals, and expectations of the team and the organization.
• Cooperation. Team members have a shared sense of purpose, mutual gain, and team processes and are willing to work together for the good of the team.
• Communication. Team members are able to communicate well with one another and with management. They are willing to confront problems and seek to resolve them in productive ways.
• Contribution. The work of the team is fairly distributed among members, with each contributing according to his or her expertise and experience.

The lack of any one of the four Cs will almost certainly spell failure for a team or, at the minimum, result in a less-than-optimal performance level. Research and reported experiences both indicate that the establishment of the four Cs is often more difficult in virtual teams than in face-to-face interactions. One reason is that virtual team members tend to share less information with one another initially, though disclosure typically does tend to expand over time.

Lack of Coordination

Coordination of work is more challenging in virtual teams, as team roles do not emerge as easily as in face-to-face situations. Needed task roles will vary with the assignment. Maintenance roles are also needed, such as members who serve as harmonizers when tension mounts, those who record and report, and those who help facilitate discussions and meeting progress. Effective leadership and efficient planning and communication are essential if a virtual team is to succeed.

Ineffective Leadership

Virtual teams require exceptional leadership. An effective virtual team leader must be able to skillfully leverage team talent, include all members, provide the team with clear work goals and other necessary information, promote trust, encourage healthy discussions and human interaction, and manage conflict. Successful teams frequently are characterized by distributed leadership, relying on various team members to take on leadership responsibility proactively as required.

You will explore these challenges and consider ways to deal with them as you progress through this book.