This www.shrm.org article content was sent to you by: Denise M. Montoya SPHR Teams Series Part III: Global Virtual Teams 8/1/2004 Fast Fact By 2010, 70% of the U.S. population will spend 10 times longer per day interacting virtually. Source: From “Virtual team interaction” by R. Emelo and L. M. Francis, October 2002, T & D, 56, 10, pp. 17-20. Definition Global virtual team—a team that spans boundaries of time, geography, culture and nationality, uses various information and communication technologies, and brings to its work distributed expertise. Introduction to Global Virtual Teams Between a growing global economy and the shift from production orientation to a knowledge and service orientation, organizations increasingly seek avenues that offer greater flexibility to remain competitive. One of the most commonly quoted advantages of global virtual teams is the ability of an organization to leverage competencies and skills from all parts of the world. As a result of this great diversity of experience and skills, these teams are often considered to have the capability to solve very complex problems and open up possibilities for substantial process creativity and innovative solutions. Global virtual teams typically are assigned to projects that are aligned with an organization’s strategic goals and may be short-term (less than 12 months) or long-term in their expected timeframe for completion (see Figure 1). By using virtual teams, companies can take advantage of competitive synergies that teamwork offers along with the advancements in information and communication technologies. Figure 1: Benefits of Global Virtual Teams Short-term company benefits • Brings the best and brightest talent to address a particular problem Local responsiveness • Demonstrates interest in local views • Improves understanding of local perspectives Long-term company benefits • Organizational learning and leadership development • Promotes knowledge transfer and innovation • Helps form social capital networks • Provides training ground for future leaders Source: Adapted from Global Organizational Effectiveness & Employee Development, by Society for Human Resource Management, 2003. Characteristics of Global Virtual Teams Global virtual teams have a number of characteristics in common. Typically, team members are located in different countries and often speak different languages. Culturally, they may differ as well—from different regions, nationalities and ethnic groups to differing organizational cultures. They may work for the same organization or represent a group of organizations. They have a shared mission and vision and are held accountable to accomplish their goal. Individual team members bring a diverse mix of experience, competencies and skills to the group. They communicate via various forms of technology, and their project may be long- or short-term, often defined by the relationship to the organization’s strategic objective. Advantages of Global Virtual Teams From the organization’s viewpoint, global virtual teams offer organizations additional options over traditional teams to remain competitive in this fast-moving global economy, such as accessing talent across the globe, using synergies, costs savings (e.g., travel) and access to low-wage resources through globalization. As with traditional teams, global virtual teams bring together people with diverse backgrounds, thus increasing the potential of innovative ideas and solutions. Through the use of technology, organizations can use global virtual teams to enhance knowledge transfer. From the employee viewpoint, global virtual teams offer employees options for work/life balance by offering various work schedules. Challenges of Global Virtual Teams Global virtual teams face a number of unique challenges: • Establishing Trust: In contrast to traditional teams, the members of global virtual teams have a significant challenge to establish trust due in great part to the lack of face time, working in different locations and time zones, speaking different languages and coming from different cultures. There are three stages of trust—or the evolution of belonging— for global teams: 1) members participate because of duty; 2) members interact based on shared knowledge and concepts (knowledgebased trust); and 3) members engage based on empathy and shared values (the third stage is characteristic of the trust level of successful global teams). • Time: Virtual teams may work synchronously or in “real time” (at the same scheduled time) or asynchronously (accessed any time from stored information, such as e-mail). • Culture: There may be significant cultural diversity among the team members, including differences in regional, national and organizational cultures. • Language: For virtual teams that are multicultural, language can be a significant issue, particularly when for some members English is their second or third language. Consequently, these team members may not feel as comfortable making contributions. There may be cultural contexts of communication that change the meaning of messages or translation issues in written documents. • Humor: As humor is not universal (and does not translate well in e-mails), it is perhaps best to avoid online humor. Challenges for the Global Virtual Team Leader Team leaders of global virtual teams deal with different team dynamics than those of a traditional team—from time zones and different work styles/work etiquette to different languages and different cultural viewpoints (see Figure 2). Their challenge is mixed: to create a sense of shared vision and knowledge, the feeling of trust, belonging and rapport among team members, as well as shared space (having access to the same information around the world). To ensure the team operates as a group regarding different technologies, team leaders need to make certain that all members understand how to use the various technologies utilized by the group, as people tend to not use technology that they do not understand. In the virtual environment, team managers must also trust that individuals are working without direct face-to-face supervision. Solid experience in conflict resolution is recommended to successfully manage and address the complex dynamics of a global virtual team. Figure 2: Guidelines to Improve Global Teams • Select the right people for the global team—with the right skills, complementary roles and motivation to participate. • Ensure that personal time is spent on establishing trust and building the team relationship. • Establish clear direction and project goals. • Keep communication constant and current. • Balance the needs of the global team members with other jobs responsibilities when setting schedules and determining assignments. • Recognize member contributions. • Reinforce the social capital networks developed through teamwork. • Periodically bring the global team together in different locations throughout the project. Source: Adapted from Global Organizational Effectiveness & Employee Development, by Society for Human Resource Management, 2003. Virtual Technology It can be a daunting task for employees who never see and/or meet each other to effectively communicate and share information on an ongoing basis. The expansion of virtual technology provides many communication tools for global virtual teams. Virtual communication and information sharing can be accomplished using a number of vehicles, such as e-mail, intranets and the Internet, video conferencing, teleconferencing, webcasts, shared electronic whiteboards and groupware (e.g., Lotus Notes). Team Roles Extensive research regarding team roles reveals that effective teams display a balance among the team members, specifically regarding the strengths and characteristics of each individual. 1 According to this research, there are nine team roles, each offering both unique contributions along with limitations. For example, the team role “plant” is someone who is creative, imaginative, unorthodox and can solve difficult problems. However, this individual may also ignore incidentals and be too preoccupied with his or her own concerns to communicate effectively. In contrast, an example of another team role is the “implementer” who is disciplined and reliable with conservative habits, but may be inflexible and slow to respond to new possibilities. The diversity of the different team roles exemplifies the nature of global virtual teams (and teams in general), whereby each individual brings both strengths and weaknesses to the group. Evaluation of Global Virtual Teams Typically, virtual teams are evaluated once or twice a year. Teams may be evaluated during their project or at the completion of the project. Team members may be evaluated in three different ways: 1) self- evaluation—assessing their own work based on criteria set by management or by the team; 2) peer evaluation—each team member examines the other members based on established criteria (these evaluations may be used by management to reward individual work); and 3) management evaluation—assessing the team as a whole. Management evaluations may include the following criteria: • Regular attendance at team meetings. • Quality and timeliness of individual work. • Percentage of effort in completing the project. • Attitude toward team members and the project. • Ability to plan project and help keep team on track. • Willingness to help other team members. • Creating an enjoyable work environment. Literature and Research • Global Virtual Teams: What Impacts Their Design and Performance? 2 Based on a review of the state-of-the-art research on the relatively new organizational phenomenon known as global virtual teams, as well as the literature of traditional teams, the authors identified strategic objectives, work characteristics and situational constraints on team structure and their relationship to global virtual team performance (see below). Their work contributes to the literature of theory building regarding global virtual teams, which is in its infancy. Dimensions of Strategic Objectives • Leverage competencies and skills Dimensions of Work Characteristics • Workflow and task uncertainty • Innovation • Task complexity and difficulty • Flexibility • Cost saving Dimensions of Performance Measures of Situational Constraints • Traditional measures • Tolerance for cost variance • Knowledge creation • Tolerance for schedule variance • Employee satisfaction • Tolerance for errors • Tolerance for increased effort • Getting It Together: Temporal Coordination and Conflict Management in Global Virtual Teams 3 With greater competitive pressure on organizations today, firms are increasing their use of global virtual teams. The key question is how to create virtual teams that work effectively. Virtual teams cannot rely on traditional social cues and mechanisms used by traditional teams that help establish rapport and trust in teams (e.g., information communication— coffee breaks, lunch with colleagues, meetings after office hours). Past research has suggested that team members may withhold information because of evaluation apprehension or conformity to majority pressures. In this study, one of the hypotheses was that the use of a temporal coordination mechanism could improve the performance of virtual project teams by alleviating the negative effect of avoidance conflict management behavior. Researchers conducted an experiment with 175 graduate students living in the United States and Japan. The team members were organized in five-person teams in four research sites in the two countries. They communicated using an asynchronous (carried out in different times) communication technology (that is, Lotus Notes, which assists with asynchronous work by organizing entries into main topics and responses, time stamping each message and identifying the author). The study results showed that the way virtual teams manage internal conflict is a crucial factor to their success. In this case, temporal coordination appeared to counteract tendencies to watch and wait because Lotus Notes identified individual contributions and thus helped moderate the impact of avoidance conflict management behavior on team performance. • Situational Leadership: Managing the Virtual Project Team 4 One of the results of conflicting and diverse demands on virtual project leaders is the apparent increase of the situational approach regarding the relationship of specific circumstances and project leadership. This research considered the following questions regarding possible situational control by project managers: 1) What are the implications of project changeability (e.g., team member changes) on the manager’s perception of control? 2) In what way(s) do the criteria for performance (e.g., time, performance quality, budget) relate to leader personality and the degree to which the situation allows the leader to exercise control and influence? 3) Can a manager change his or her style to match the situation This research considered various situational elements, such technology, internal and external partnerships, time and geographical dispersions, and project objective complexities with the project manager’s natural leadership inclinations. These questions were tested in a pilot survey and in interviews with more than 200 project managers employed in the United States and Europe in clinical research organizations. The author points out that team changes require the project manager to alter the equilibrium of the leader-member relationship and positional power and to assess the implications of inter-group dynamics as well as variations of individual task structure. Further, environmental shifts have an impact on well-planned projects, thus raising the stakes to simply keep on top of unanticipated changes. The results indicate that variables such as choice of project and team, team changes within the organization, project duration and team size can exert significant influences on the project leader’s perception of control. This perception, in turn, may likely affect the project leader’s view of apparent difficulty regarding project objectives. For example, task-motivated leadership for short projects (less than 12 months) may be effective in regard to team performance. The study suggests that there are ramifications for maintaining balance between the project manager and other project stakeholders. The observations drawn are exploratory, and more research is required to determine the extent of the virtual platform and group dynamics on the project manager and the project itself. In Brief Clearly, the use of global virtual teams will continue to increase as organizations seek alternatives to create competitive advantage. The primary challenge for global virtual teams is not which technologies to use but rather how to get people from different parts of the globe to work together in harmony, share a common vision and successfully accomplish their goal. As the research shows, the team leader is the key to motivating the global virtual team and effectively bringing together this diverse multicultural workforce. By expanding the training of current and potential global virtual team leaders, HR can contribute to the success of global virtual teams. Resources American Society for Training & Development (ASTD): www.astd.org Duarte, Deborah L., & Tennant Snyder, Nancy. Mastering Virtual Teams (Second Edition): www.josseybass.com/WileyCDA/WileyTitle/productCd-0787958581.html Gibson, Christina B., & Cohen, Susan G. (Eds.). Virtual Teams That Work: Creating Conditions for Virtual Team Effectiveness: www.josseybass.com/WileyCDA/WileyTitle/productCd-0787961620.html Nerimo, Jill. Creativity in Virtual Teams: Key Components for Success: www.josseybass.com/WileyCDA/WileyTitle/productCd-0787971146.html Virtual Teams Bibliography, John Hopkins University: www.jhu.edu/~hr1/humanserv/virtualteams.html Sources Adler, N. J. (2002). International Dimensions of Organizational Behavior (4 th edition) . Cincinnatti, OH: South-Western College Publishing. Anderson, F. F., & Shane, H. M. (2002). The impact of netcentricity on virtual teams: The new performance challenge. Team Performance Management, 8, ½, 5-13. Belblin, R. (1981). Management teams: Why they succeed or fail. London: Heineman. Britt Roebuck, D., & Clarence Britt, A. (2002, Fall). Virtual teaming has come to stay—Guidelines and strategies for success. Southern Business Review, 28, 1, 29-40. Emelo, R., & Francis, L. M. (2002, October). Virtual team interaction. T & D, 56, 10, 17-20. Fulton, M. L. (2002, April). Working virtuality. Searcher, 10, 4, 50-55. Society for Human Resource Management. (2003). Global Organizational Effectiveness & Employee Development. Alexandria, VA: Society for Human Resource Management. Lee-Kelley, L. (2002). Situational leadership: Managing the virtual project team. The Journal of Management Development, 21, 5/6, 461-477. Marmer Solomon, C. (2001, June). Managing virtual teams. Workforce, 80, 6, 60-65. Marquardt., M. J., & Horvath, L. Global Teams. Palo Alto, CA: DaviesBlack Publishing. Montoya-Weiss, M., Massey, A. P., & Song, M. (2001, December). Getting it together: Temporal coordination and conflict management in global virtual teams. Academy of Management Journal, 44, 6, 12511263. Prasad, K., & Akhilesh, K. B. (2002). Global virtual teams: What impacts their design and performance? Team Performance Management, 8, 5/6, 102-113. Also in this Series: Teams Part I: Teams—Just the Basics Part II: High-Performance Teams Endnotes 1 Belblin, R. (1981). Management teams: Why they succeed or fail. London: Heineman. 2 Prasad, K., & Akhilesh, K. B. (2002). Global virtual teams: What impacts their design and performance? Team Performance Management, 8, 5/6, 102-113. 3 Montoya-Weiss, M., Massey, A. P., & Song, M. (2001, December). Getting it together: Temporal coordination and conflict management in global virtual teams. Academy of Management Journal, 44, 6, 12511263. 4 Lee-Kelley, L. (2002). Situational leadership: Managing the virtual project team. The Journal of Management Development, 21, 5/6, 461477. Author: Nancy R. Lockwood, MA, SPHR, GPHR, SHRM Research Department