Recently the Leading Virtually team came across an article by several academic researchers that broadly discusses whether virtual teams have potential for organizations. Their discussion was based on a research study they conducted. The authors found that virtual teams of short duration have lower performance, lower satisfaction, and a lower results-to-effort ratio. Meanwhile, one can find new articles each week highlighting organizations who utilize virtual teams and derive benefits from them. For example, an article about Nissan talks about the success of a “cross-company, cross-national” design team. The car they designed, the GT-R, recently clocked 0 to 60 in 3.2 seconds, apparently just faster than the Porsche GT3.

So who is correct? Are virtual teams productive and efficient for organizations, or detrimental to desired outcomes? An article written in part by Leading Virtually team members recently argues that there is no simple answer to this question. In fact, it seems to be the wrong question. Organizations are complex systems with lots of factors influencing satisfaction, performance, and other variables of interest. While we would like to offer generalizable recommendations, it seems unlikely that we can do so on this simple a level. There are some features of the organization or situation that should also be taken into account before judging whether the use of virtual teams is destined for failure or glory.

These determining features make up the main topics of most of our blog postings – for example, motivation, trust, and leadership have an impact on the success of virtual teamwork. But according to the basics of strategic planning, there are both internal and external factors that impact the implementation and use of virtual teams. In this blog entry, I would like to talk about some major factors that are external to the team and its processes, and yet often have a great deal of impact on the success of virtual teams. This discussion is intended to be useful for managers who are about to embark upon virtual teamwork (or are considering whether to employ virtual teamwork), but can also be helpful to managers who are waist-deep in virtual team projects and worrying about their success.

Resources

Almost no project can be successful without the necessary resources to support it – most managers realize this well before they become managers. However, it’s easy to get caught up in the hype of technology and virtual teams and forget to really think about the finer details of your project. People talk about electronic collaboration in the abstract – it exists, but requires installation and support nonetheless. Virtual teams rely very heavily on electronic collaboration. What tools are in place for your team? Is there support for team members who need help or training on new technologies? Are these tools temporarily or indefinitely?

The other crucial resource to consider is time. Again, when people talk abstractly about using technology to collaborate, they seldom mention that virtual teamwork can still be time-consuming. This is especially the case when team members are new to virtual teamwork and require some practice time to adjust to a new way of doing work. It is often still the case among workers who have experience collaborating virtually, but who are coming together as a new team. In the Nissan article, we learn that the organization was willing to dedicate enough resources to hold a worldwide design competiton between 80 designers. Whatever the situation at your organization, be sure not to discount the startup costs (money, technology, and time) required by a virtual team, and consider how long resources will remain available.

Support

This could be considered another resource, but is so critical that I want it to have its own category. When launching a virtual team, a manager must seriously consider the kind of support available in the organization. Yes, this is a political consideration. It may have almost nothing to do with the task or the project itself, and yet external support can determine a project’s fate. Are decision makers in the organization supportive of the project? Consider whether your team’s support is merely verbal or whether you have an external champion for the project (or of utilizing virtual teamwork). You will need at least one champion with clout in order to get your project or the use of virtual teamwork off the ground. The more supporters you have with decision making latitude and resources, the better. In the Nissan article we see some pieces of evidence that there was strong organizational support for the development of the GT-R. First, a high-ranking engineer named Kazutoshi Mizuno was put in charge of the project, with decision making power to choose whomever he wanted for the project team. Second, the CEO himself was a member of the steering committee directing the global project team. Third, the organization was willing to dedicate 100 of its top employees to be on the project team.

Remember too that a virtual team leader must be monitoring for support throughout the life of the project. It behooves you to stay in touch with your champions or supporters throughout the project. Provide them with regular updates before they have the chance to realize they haven’t heard from you and ask how things are going. In most cases, those updates can include setbacks without dire consequences – you must feel this out in your own organization. Whenever you are able, have quantifiable progress towards a quantifiable goal. A team compact and After Action Reviews are invaluable for this – they not only help the team meet its goals, they help others understand how the team is progressing. In the Nissan article, Mizuno reports that he did something like this when he gathered and reported early data on how development of the car was progressing.

Organizational Goals

Lastly, organizational goals should have a strong impact on your project. Yet, the onus is on you as a virtual team leader to communicate to others in the organization how your team is meeting those goals. Whenever you speak to your supporters or skeptics with decision making power, demonstrate how the team’s progress fulfills larger organizational goals. Remind your supporters why the organization took on the project or decided to try virtual collaboration. The Nissan article tells us that major components of the GT-R were also viable options for the design of several other lines of cars. Creating value that is applicable beyond your team project (like those mechanical components) is a great way to show external constituencies that your work ties to broader goals.

It’s important not to lose focus of these organizational goals. Your project doesn’t exist in a vacuum, so remember not to let your thinking or your focus exist in a vacuum. Keeping sight of a larger vision, beyond the simple task requirements, will help to keep project decision making on track.

There’s no simple answer to the question of whether virtual teams are beneficial or detrimental for an organization. While we have focused on the dynamics and factors within virtual teams that lead to success, external factors such as resources, support, and organizational goals can also impact team effectiveness. In the spirit of strategic management, virtual team leaders must not only lead and develop the team, but also stay in touch with constituencies outside the team.