It has been almost impossible in the past year to avoid the media hype about virtual worlds and virtual teams. Virtual worlds such as Second Life have received a lot of press claiming that their existence will revolutionize the way we interact and do business. A number of high-ranked universities, including Harvard, have set up campuses and are conducting classes in Second Life. Large multinational corporations such as IBM are creating their own virtual worlds for meeting and training purposes. And yet there are detractors who doubt the potential of virtual worlds. So let’s take a step back and think about whether team collaboration in virtual worlds can work, and what influence leaders have on team outcomes.

In a previous blog post, we made reference to a Seriosity report about the leadership skills learned by dedicated players in World of Warcraft, a Massive Multiplayer Online Game. Some people believe the game’s tasks, which require collaboration, teach leadership skills that are transferable to the “real” work world. But can anybody learn or work in a virtual world?

I believe this is largely a matter of “self-fulfilling prophecy” – if people believe they can work effectively using a virtual world for collaboration, the chances of success vastly increase. We can understand this using Bandura’s model of how self-efficacy beliefs affect performance outcomes. Self-efficacy refers to a person’s beliefs about whether they can accomplish something specific. In this case, the focus is on whether people believe they can work effectively in a virtual world. Bandura argues that believing “yes I can do it” leads to a set of productive behaviors such as persevering, creative problem solving, goal commitment, and managing the situation; these behaviors in turn have a positive effect on performance. In contrast, believing “no I can’t do it” leads to a set of counterproductive behaviors such as giving up, weak commitment, becoming easily discouraged from setbacks, and worrying; these behaviors in turn have a negative effect on performance.

We have strong evidence from management research that this holds true for use of technology as well. We know that when organizations adopt new technology, the success of implementation is largely determined by the willingness of organizational members to use it. That is, when organizational members accept the new technology, success is much more likely than when organizational members reject the new technology, regardless of the inherent usefulness of the technology. There is likely some of Bandura’s self-fulfilling prophecy going on – those who accept the new system approach it with a set of productive behaviors, while those who reject the new system defeat it with a set of counterproductive behaviors. So too for collaboration utilizing virtual world technology.

For virtual team leaders, this means that if virtual world collaboration is to be successful (particularly when new to a work group), it is vital for team members to buy in to this way of doing work. How can leaders help make this happen? First, improve team members’ self-efficacy perceptions about using virtual worlds by making sure they have sufficient training using them. For many workers, navigating an avatar around an electronic world may be an entirely new experience. Give them time to practice with their avatar. Make sure they understand the range of possibilities with the virtual world you are using – it may include not only graphics, but some combination of text chat and voice chat. Our experience is that training is often overlooked for a variety of reasons by virtual team leaders, yet it is crucial for team member buy-in.

Another common tip for enhancing team member buy in is to demonstrate early successes in the new process or system, and yet this is also overlooked by many virtual team leaders. Be sure at the outset of the project to chart milestones and goals (using a team compact is a good way to do this). Then, starting early in the collaboration process, focus on even small milestones as team successes. In a virtual setting this may take a little more effort to communicate to team members, but is worth the time it takes. Providing positive feedback and encouragement for achievements can have a positive influence on self-efficacy beliefs of team members. By doing this, you are making team members consciously aware of achievements and successes, boosting their self-efficacy for using virtual world technology. According to Bandura’s model, this should create a positive spiral effect.

Also, make sure the scene is set for high commitment to using the technology by considering whether the organization’s reward system supports the adoption of virtual world collaboration. It is surprising how often organizations ask something of their employees that is incongruent with the reward system. In a dispersed virtual team, with different rewards structures and different full-time supervisors, this can be especially pronounced. As team leader, you are responsible for making sure team members are not penalized by the system when trying something new at the request of the organization. Even if team members won’t benefit directly from participating in a virtual world work group, make sure to find ways to get the word back to decision makers when progress is achieved. It may also help to remind team members that they are learning cutting edge skills that could be valuable to them in the future. Where organizational rewards are concerned, focus attention on the positive consequences and reduce negative consequences to a minimum.

Initial research into virtual world collaboration also suggests that you can boost commitment to the technology and the group task by considering how workers identify with avatars. In a recent experiment by the Leading Virtually team investigating virtual team collaboration, the data suggests that the more a participant reported a resemblance to their avatar, the higher their satisfaction and perceptions of group efficacy, presence in the group meeting, and group cohesion. This provides one early finding that may help virtual team leaders increase team member commitment to virtual world technology. There may be a benefit gained from allowing team members leeway in designing the appearance of their avatar.

Proponents of virtual worlds are surely right that this technology represents a new and intriguing way of interacting. For organizations, this may or may not revolutionize the way business is conducted. But when people work together, leadership is still an important part of the social interaction. You as a virtual team leader may be using a new technology, but you will find that many of the same leadership principles apply. Don’t underestimate the effect that a leader can have on self-efficacy perceptions and commitment in a virtual team – your success might depend upon it!