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Successfully Transitioning to a Virtual Organization: Challenges, Impact and

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FIRST QUARTER–2010 Successfully Transitioning to a Virtual Organization: Challenges, Impact and Technology

Abstract With an emphasis on a solutions-based approach, this article explores key factors to successfully transition to a virtual organization and includes real-life scenarios to illustrate both effective and ineffective approaches, with a focus on leadership styles, the effectiveness of virtual working teams, , technology, virtual meetings and management, and global virtual teams.

Introduction to replace, no matter the technol- companies are doing to effec- In today’s world, organizations ogy or organizational skills of tively transition to virtual work, increasingly conduct business in a those involved. A major challenge the Society for Human Resource virtual workspace, whether their for the human resource profes- Management (SHRM) interviewed employees are located in different sional will be to instill within the HR professionals and research- countries, cities or venues in the virtual office the nuances felt only ers in U.S.-based and global same city. The virtual workspace with real human interaction.” organizations. With an emphasis can be defined as an environment on a solutions-based approach, where employees work away from The very nature of virtual work this article explores key factors to company premises and communi- requires planning and thought- successfully transition to a virtual cate with their respective work- ful design. The development and organization and includes real-life places via telephone or computer evaluation of virtual teams present scenarios to illustrate both effec- devices. The virtual organiza- a unique opportunity for HR to tive and ineffective approaches, tion has different and/or greater partner with many different ele- with a focus on leadership styles, challenges than the traditional ments of the business. The benefits the effectiveness of virtual working face-to-face workplace environ- to the business stakeholders of a teams, communication, technology, ment, with lines of work cross- successful virtual work program virtual meetings and management, ing over geographies, markets, can be significant, yet difficult to and global virtual teams. HR and countries and cultures, alliances, achieve without a strong strate- organizational leaders will find this partnerships, and supplier net- gic HR function. Further, with article of value to better understand works. “The virtual office is the increasing dependence on tech- the challenges of the virtual work- office of the future,” says John R. nology for communication in the place, discover ways to address these Wilson, J.D., Esq., president and workplace, the role of leadership is challenges and implement solutions CEO of GoffWilson, P.A., and changing. The glue to the virtual that will promote business success.

Leadership Styles The very nature of virtual work requires Effective leadership is the number planning and thoughtful design. one factor that influences success in a virtual organization. Maintaining cultural identity, employment brand a member of the SHRM Global organization is leadership, the and employee/manager satisfac- Special Expertise Panel. “As tech- right competencies and attributes, tion requires consistent and regular nology advances and ‘live’ video trust and rapport, and manage- communication. Leadership skills becomes high definition, the need ment of virtual workers and teams. are even more essential for virtual and expense of brick and mortar work. They include a strong focus offices diminishes. However, we Organizations can learn from on relationships, emotional intel- lose some of the human factor, experiences of others in the ligence, a track record of results and which is unsettling and difficult virtual workspace. To learn what innovation, a focus on process and

1 consider these factors in struc- Figure 1 | A Model to Enhance Leadership Skills for tured interview processes, provide Success in a Multicultural Virtual Organization examples to learn how candidates would think and act in different Enhancers Derailers virtual situations (e.g., with workers Promote trust and maintain effective Inability to establish the additional levels spread across geographies, cultures working relationships with virtual of trust required with remote workers. workers. and time zones), and have top candidates meet with senior leaders Establish virtual guiding principles Inadequate communication skills required and organization charters to ensure for virtual network effectiveness. who can speak about the challenges the organization is in alignment. and expectations of collaborative Identify and define virtual worker roles, Lack of comfort and expertise with virtual work. Ultimately, leaders responsibilities and accountability. required for success in need to be able to engage every- the virtual organization. one to work toward a common Establish a reward and recognition Inability to address conflict resolution vision, purpose and destiny. process commensurate with the within the work group. virtual organization characteristics while maintaining consistency with “In the virtual organization, the traditional organization structure. role of a leader tends to shift from Demonstrate cultural competency Lack of sensitivity toward different styles one of controller to one of coordi- when interacting globally. of communication. nator or coach. The leader manages Source: SHRM interview with Global Dynamics, Inc. (www.global-dynamics.com) by principle, develops a bias for a cross-functional organization, pro- outcome, and the ability to give Protocols of communication get motes open sharing of positive and constructive feedback. more and more sophisticated. The and empowers the virtual worker,” Also important is the ability to more flexibility I have, the more I says John G. Schieman, vice presi- teach and coach others and provide can connect with my diverse team,” dent of Global Programs and Mar- recognition both formally and points out Elaine Orler, president keting at Global Dynamics, Inc., informally in ways that show appre- of Talent Function Group LLC a leading provider of customized ciation and motivate continued and a member of the SHRM HR solutions to meet the challenges of success. HR should be part of any Technology and Management , virtual environments, and diversity and inclusion in more than 60 countries for over 25 years. Effective leadership is the number one factor The Global Dynamics’ model that influences success in a virtual organization. to enhance leadership skills in a multicultural virtual organization, based on the company’s experience pilot program to help leadership Special Expertise Panel. “To me, in the field, is outlined in Figure 1. understand, anticipate and mitigate digital connection, including voice, “It’s essential for organizations to management problems. When HR can provide enough connection promote trust and effective work- has experience in participating in to co-workers. It is important to ing relationships, with one of the a virtual team, it lends credibility establish a digital rhythm with first steps being the establishment for HR to fully participate and each member of the virtual team. of virtual guiding principles and respond to problems as they arise. I text, versus e-mail, if something organization charters,” Schieman is urgent, use instant messenger points out. Consider the follow- For a virtual team leader, flexibility when we are in meetings, etc. It is ing two scenarios: the first focuses is paramount. “Leaders need to still possible to be very connected on building trust, and the second be more flexible in how and when to members of your team.” At the shows how assumptions and lack of they communicate. Some people same time, it is equally important cultural awareness can lead to unex- connect on instant messenger to position leaders for success. For pected and unwanted surprises. while others prefer text messages. example, HR professionals should

Successfully Transitioning to a Virtual Organization: Challenges, Impact and Technology 2 Best Practice operations. The executive, who upon his return that there were A senior vice president of a resided in the United States, no commitments given. global pharmaceutical company was told that there had been was given responsibility for the relationship and communica- Team Work: Effectiveness Americas. The individual, who tion difficulties between the U.S. and Communication resided in the United States, and Japanese organizations. His Working with and managing a was unfamiliar with the cultures plan was to communicate his virtual team is very different from of Latin America. Initially, he at- U.S. model and request that the managing an on-premise group. tended a course to enhance his Japanese operation conform. “Collaboration tools, goal defini- cultural awareness. Next, as he Initially, he sent an e-mail to all tion and coaching are areas where prepared to communicate criti- Japanese associates indicat- HR can help a manager enable cal electronic messages to his ing he was planning a visit to a virtual team. Managers need new organization, he decided to Japan for one day to introduce help to understand how embrac- translate his message into local his operational plan and obtain ing technology—such as instant languages and confirmed that their commitments. He failed messaging, screen sharing and web each message was culturally to recognize the importance of conferencing—may make them correct. As he planned to visit hierarchy in his communication more flexible and effective. In fact, each cultural region, he sched- by sending the message to ev- developing this set of competen- uled a cultural coaching session eryone. He scheduled a one-day cies is necessary even for managers to assist him in building trust visit, not allowing enough time to of on-premise teams, since these and securing relationships. understand the culture and build technologies are as familiar as the relationships. During his trip, telephone to many new entrants in Critical Incident he misunderstood verbal and the workforce,” points out Kristin A senior executive of a global nonverbal communication, con- Lundin, SPHR, product man- financial services company was cluded that he had Japanese ager at Salary.com and a member given responsibility for Japanese commitments, only to discover of the SHRM Technology and HR Management Special Exper- tise Panel. She emphasizes that PROMOTING INCLUSION “when adopting or even evaluat- “Today’s virtual meetings often involve participants from multiple cultures, ing virtual teams, HR needs to and this requires global leadership skills and culturally appropriate com- lay out the strategy for aligning munication to foster engaged participation that leads to improved collabo- activities done remotely with those ration,” points out Lorelei Carobolante, SCRP, GMS, GPHR, SCRP, CEO/ done at physical company loca- president of G2nd Systems and a member of the SHRM Global Special tions and how they can creatively Expertise Panel. She describes a situation that illustrates an easy but integrate remote employees.” important way to promote trust and inclusion:

A senior manager, who resides in the United States, was leading an engi- Research shows that to con- neering team that relied on multi-site expertise to develop a new product nect human beings, it is essential for a global semiconductor manufacturing company. In his experience, to thoughtfully select the most managing meetings with a combination of virtual and in-person venues was appropriate technology. For exam- much more difficult than either one or the other, because participants in the ple, e-mail is not the best medium conference room would unintentionally dominate the discussions without to communicate an inspirational including the rest of the team. Remote participants felt irrelevant and un- message. Particularly in the early able to significantly contribute. To leverage the expertise of all, the manager stages of establishing a virtual sent Starbucks cards to all remote participants (coffee and tea were avail- team, it is important to consider able for the in-person group) in advance of the meeting to establish a feel- technology that allows individuals ing of inclusion from the beginning. Throughout the meeting, the manager to see and hear expressions, since made a conscientious effort to ask the remote participants to provide their nonverbal cues are key to trust and perspective first, helping the group achieve its objectives. rapport. Virtual team members

3 may also have conflicting com- is achieved during those weeks have broadband access either mitments, such as being involved than during the rest of the year.” off-premise or at home,” points in multiple projects and multiple out Lundin. “Even in retail or teams. To balance time and work In companies where a significant manufacturing, some roles are not commitments, the leader needs to amount of the work is either dependent on the physical plant carefully consider other responsi- knowledge-based or involves to be productive. In some loca- bilities of team members when set- producing technology that is tions in the United States and ting goals. Since in many instances easily transferred, virtual teams other developed nations, even virtual team members may never present a unique opportunity to wireless broadband has become meet each other, the virtual team build a win-win situation between ubiquitous. This provides the ability for an employee to have a work experience that is produc- “Collaboration tools, goal definition and tive and very similar, regardless of the employee’s physical location.” coaching are areas where HR can help a manager enable a virtual team.” Yet, productivity in the virtual workplace can be challenging. Oli- Kristin Lundin, SPHR, product manager, Salary.com vas-Luján notes, “I recall a couple of research projects in which the cultural diversity of the team leader’s role is essential to help employers and employees by participants made it almost impos- develop confidence among team offering an attractive work/life sible to get things done on time. members to create a team identity. balance for employees while also In contrast, another effort that reducing facilities and infrastruc- gathered responses from employ- When team members identify with ture costs for employers. “Tech- ees in about 22 countries turned their team, they are more likely nology has developed to a level out results much faster because to be engaged and energized to where many knowledge workers the leader set up a structure that fulfill the team’s goals. Miguel R. Olivas-Luján, Ph.D., a professor Figure 2 | In what ways does your HR department currently of management at Clarion Uni- support your organization’s virtual workforce? versity of Pennsylvania and Tec de Monterrey, Mexico, and a SHRM Global Special Expertise Panel Establish policy and procedures 76% Ensure IT support for questions member, points out that where 66% about hardware and possible, it is still important to Provide e-learning courses for 37% meet face to face, especially at the your virtual workforce Work with IT to ensure training 35% start of the project: “This is more on technology* relevant to tasks that are not cen- Establish work/life balance 35% tral to the teams’ main job, such guidelines Provide training on leadership 26% as temporary task forces, virtual styles** teams formed with a particular Establish rewards and 20% purpose where participants are not recognition options Provide cultural sensitivity train- 8% discharged of their main duties to ing for leaders working globally accomplish the goal. Through the Other 5% years, I have noticed that virtual n = 256 work groups have a flurry of activ- ity and interaction just before and * e.g., web conferencing software, webinars for working virtually, social networking tools, e-learning programs. ** styles that promote trust and maintain effective working relationships with virtual workers. a few weeks after every face-to- Note: Asked only of respondents who said their organizations offered virtual work options. Percentages face meeting. Often, much more do not total 100% as respondents were allowed multiple choices. Source: SHRM Poll: Transitioning to a Virtual Organization (2010)

Successfully Transitioning to a Virtual Organization: Challenges, Impact and Technology 4 could be considered autocratic, yet and infrastructure. For employees such as e-mail, intranets and the was highly efficient. She provided who never see and/or meet each , video conferencing, standard instructions, offered other, it can be a daunting effort teleconferencing, webcasts, shared advice and made sure each country to establish trust and rapport, electronic whiteboards and group- co-author knew exactly what to effectively communicate and ware (e.g., Lotus Notes). Every expect. This experience is also share information on an ongoing organization, as it expands to work consistent with the research that basis. Obviously, technology is at a virtual pace, will encounter suggests that diverse teams often a large component of managing challenges when working virtually.” take longer to reach the ‘perform- and enabling a virtual team. HR ing’ phase and become more professionals should be closely Yet, as Olivas-Luján points out, productive than homogeneous aware of what technologies are “Familiarity trumps sophistica- teams. The outcomes are more being offered and used by remote tion. As my colleagues and I have moved from e-mail to synchronic discussion groups (chat rooms) Virtual teams are highly dependent on and now to social networking- collaboration technology and infrastructure. based , I used to try to get my colleagues to employ the newest technology (instant messenger, Skype, etc.). creative and effective than those of workers so that they can help However, some were too busy homogeneous teams if the leader managers transition to managing to learn, others needed more is able to manage the diversity.” virtual teams. “HR leaders need to hand-holding, and it was just guide their teams to evaluate and not productive. I now try to use A recent SHRM poll on HR’s become familiar with all of the the lowest common denomina- involvement in the virtual work- various technology that the virtual tor (e-mail with attachments or force reveals a variety of key transi- team will be using,” says Lundin, shared documents in some cases) tion factors (see Figure 2). This of Salary.com. “Understanding and don’t push the ‘newest and research found that within the and using these technologies will the latest.’ Ultimately, the expecta- next 12 months, 22% of organiza- enable HR professionals to coach tions and needs of companies to tions expect the percentage of their managers and leaders on the needs use technology appropriately will employees who work virtually to of the virtual employee and to drive change in the workplace.” increase, 76% expect it to remain understand how to best support the same, and 3% will decrease the those managers and employees.” The following examples show how percentage of virtual employees. organizations are being proactive The poll shows the various ways in The expansion of virtual teaming to connect with their workforce which HR is working to support technology provides a variety of by using technology as a strategic the organization’s virtual work- communication tools for virtual tool to ensure seamless work and force. In addition, according to a teams. “Technology should be a stronger communication despite a SHRM survey report Workplace strong conduit for virtual team lack of face-to-face interaction with Flexibility in the 21st Century: success. That technology is not key stakeholders in the company. Meeting the Needs of the Changing solely based on corporate infra- Workplace, 43% of HR profes- structure, but rather is an exten- Performance Management sionals say that in the next five sion of that infrastructure to create A medical testing organiza- years, a larger proportion of their and bond the team as a commu- tion is creatively using virtual workforce will be telecommuting. nity of peers,” emphasizes Orler, teaming technology to con- of Talent Function Group LLC. nect managers and their direct Virtual Teaming Technology “Virtual communication and reports in the performance Virtual teams are highly depen- information sharing can be accom- management process. A group dent on collaboration technology plished using a number of vehicles, of sales managers has direct

5 reports whose job duties keep vide real-time collaboration as was noted as a key element of them in the field. This group’s well as a record of discussions the change process. The blog efforts are vital to the organi- and decisions for team mem- tool has since been used by zation’s success, and weekly bers who could not make the other virtual teams throughout field reports are an inherent live conversations. Team mem- the organization. part of the performance review bers learned to use the blog process. Managers use an on- as the central repository for Seamless Service line system to record their field all planning and implementa- A major outsourcing firm lever- reports on a daily basis. This tion tools. It was the most ac- ages teams in Europe, North Internet-based system is avail- cessed site on a daily basis, America and Asia to success- able via their wireless PCs and even if no synchronous com- fully deliver client projects. accessible anytime. Consoli- munication was required be- While some work efforts can dated online reports are also tween members. The change be completed around the clock available to senior manage- team’s success using the blog and take advantage of time ment and allow real-time moni- for virtual team collaboration zone differences to speed up toring of the organization’s sales efforts to support imme- diate oversight of their revenue VIRTUAL MEETINGS AND MANAGEMENT growth strategic goal. 1. Shared project/program management tools ensure that documen- tation is consistent and relevant across the team and enable real-time A Change Initiative updates and changes (e.g., SharePoint by Microsoft, Connect Pro by An office services firm was Adobe, and eRoom by EMC2, off-the-shelf products (some free) such implementing major benefits as Jive, Basecamp and Google Docs). changes for its U.S. employ- 2. Instant messaging, text messaging. Mobile devices are the number ees. Part of the benefits strat- one most common tool used around the world (see www.mocom2020. egy change was a shift away com/2009/03/41-billion-mobile-phone-subscribers-worldwide). With from a paternalistic approach company plans, text messaging globally for simple status checks is less to more employee responsi- expensive than phone calls, and in many countries, it is a more effective bility. The company knew this way to reach someone. Text messaging is not limited to just a mobile represented a major change device; it can be integrated into e-mail notifications and various other management opportunity. It standard desktop tools. wanted to have its best change 3. Voice over IP and video chat can create a sense of community management team lead efforts among a virtual team and are a low-cost alternative to international call- to announce, engage and man- ing plans, from high-tech innovative virtual conference rooms offered by age change efforts but with- Cisco Systems to mainstream readily available products such as Skype out letting advance word leak or GoogleTalk. out. The change management team was scattered across the 4. World clock. The greatest obstacle to a global virtual workforce is find- United States, but had to work ing the time to meet without forcing anyone to work unrealistic hours to closely together for several participate. Several free programs offer the ability to review time zones months to effect the desired and check availability, and this simple consideration can foster unity in change results. To work as a the team and a sense of equal sacrifice and commitment. virtual team, a secure blog was 5. Dynamic project planning tools. Microsoft Project continues to be created for the change man- the traditional tool for project management, but the market is moving to agement team members. Only real-time dynamic project support tools. The new web 2.0 features word team members had access to clouds, mind maps and context-based search, with options to share ongoing discussions and draft information by timeline, dependency, owner or goal. Applications such change documents. The blog as MindJet and solutions by Matchware are easy to use and intuitive, was a convenient way to pro- leading to increased productivity.

Successfully Transitioning to a Virtual Organization: Challenges, Impact and Technology 6 processes, team members had recently moved into a vir- videoconferencing as tools to must also work together in real tual organization environment. better motivate company teams time. A variety of virtual team- The manager was finding it dif- (sales included) and create ing technologies are used to ficult to offer praise and recog- better real-time opportunities facilitate their interaction and nition in a public forum, where for recognition. collaboration. Web confer- salespeople tend to thrive. Pri- encing technology is used for or to the company transitioning Virtual Training Can Be synchronous and asynchro- these employees to home of- Effective and Fun nous communications. Team fices, the manager had brought The Inspection Division of members who cannot make the sales team together on a Manheim, the world’s leading a conference call can listen regular basis, where they could provider of vehicle remarket- to and view a recording of an stand up and be recognized for ing services, recently won the earlier session when they are their accomplishments. While bronze award from Brandon available. Team members can the sales goals were moni- Hall Research Excellence in also track problems online and tored on a monthly basis, the Learning for its use of simula- address issues while working manager was finding it more tion/gaming in a learning pro- in their respective time zones. difficult to maintain momen- gram. The division launched a This technology helps span tum without the face-to-face state-of-the-art online training time zones and allows seam- monthly meetings, despite program for its 1,300 highly less work efforts. energy-producing events such technical vehicle inspectors, as the team signing a company who were accustomed to in- Virtual Meetings, for a significant contract or a person/hands-on training. Due Management and new product being launched in to its significant growth, the Team Building the marketplace. The manager company had to shift to virtual Motivation and engagement are went to the HR director to ask learning, and the change was among the top challenges for for recommendations. As a re- initially met with apprehension. virtual teams. Building the sense sult, the company chose to in- As it turned out, the combina- of team makes all the differ- vest in web-conferencing and tion of interactive games, video ence to establish rapport and trust, encourage creativity and EIGHT IDEAS TO CELEBRATE FROM A DISTANCE innovation, and accomplish the mission and goals of the team. 1. Celebrate both individual and team accomplishments. Managers need to find ways to 2. Celebrate the mileposts, not just getting to the goal. provide public forums for rec- 3. Hold an annual or semiannual achievement review event. ognition, avenues to share ideas, take advantage of training and 4. Respect team member preferences on how to celebrate. development opportunities to 5. Acknowledge personal milestones, such as birthdays, weddings, strengthen the team, and celebrate birth of children, anniversaries of tenure in the company, educational the achievements of both indi- accomplishments, community service, etc. viduals and the team. The follow- 6. Present e-gift certificates to the team. Leaders can bring these ing three real-life stories portray to on-site visits. examples of solutions to motiva- 7. Invest in “portable parties”—send party kits (such as party hats, tion and engagement challenges. horns, party favors, confetti) to each member and celebrate via tele- or video-conferencing. Recognition2 A senior manager at a high- 8. Create a location on the company intranet to post best practices tech company was discour- and learnings.

aged to provide recognition for Source: Adapted from Fisher, K., & Fisher, D. (2001). The distance manager: A hands-on guide to man- his distance sales group, which aging off-site employees and virtual teams. New York: McGraw-Hill.

7 SHRM’s Future Insights report Figure 3 | Tips for Effective Virtual Meetings and Management identifies a number of key trends in today’s workplace. One trend Prepare and distribute agendas in advance; ensure agendas reflect input requested from participants. points to working virtually: The need for global organizations to Initiate meetings with “roll call” of all participants; review agenda, meeting objectives and timeframe. work virtually across functions and geographies increases and Identify the key roles of facilitator and scribe. intensifies, with implications for Position participants in locations “free” of distractions or background noise. intercultural communication, business ethics and organization- Promote climate of collaboration and inclusion; encourage every attendee to partici- pate and express his or her view. al effectiveness. A new approach is needed to develop global Encourage participants to effectively use available technology. workforce cultures, with better Conduct meeting evaluation at the close of the session. understanding of transnational teams, online collaboration, glo- Establish expectation for distribution of the meeting minutes. balization and business process Establish “next steps” and make follow-up assignments. transformation.

Source: SHRM interview with Global Dynamics, Inc. (www.global-dynamics.com) Leaders of global virtual teams deal and commentary were very concept, with networked office with different dynamics than those well received. The company’s space available on a first come, of a traditional team, including national trainers reached out first served basis. This change different styles/work etiquette and to the inspectors for their feed- allowed for monthly face-to- different cultural viewpoints. Time back, answered their questions face meetings, promoted an in- can be a challenge (working either and made it as easy as possi- creased sense of team and was synchronously/“real time” or asyn- ble. Personal follow-up took the cost-effective for other teams chronously/accessed any time, such fear out of the new approach, as well, as additional employee as e-mail), as can culture and lan- and now inspectors throughout groups began to work virtually. guage (English may be the second the organization routinely use or third language for some mem- this award-winning program. Global Virtual Teams bers, with cultural context commu- A commonly quoted advantage of nication in meaning or translation The Virtual Office and global virtual teams is the ability of of documents), and humor (best Employee Engagement3 an organization to leverage compe- to avoid online humor, as it does At the company headquarters, tencies and skills from all parts of not translate well in e-mail).5 there was a growing need to the world. These teams are seen as consolidate office space to having the capability to solve very Working with clients in the save costs. As a pilot, one of complex problems and open up transition to a virtual organi- the regional teams began to possibilities for substantial process zation, Schieman, of Global work from home offices. Al- creativity and innovative solutions. Dynamics, Inc., has found that a though the real estate savings Global virtual teams are typically model for effective multicultural from eliminating office space assigned to projects aligned with an virtual team should demonstrate were significant, the team’s organization’s strategic goals and the following characteristics: manager found that team en- may be short term (less than 12 1) successful team performance gagement levels decreased, as months) or long term. They offer exceeds the sum of the individual did productivity, due to the lack additional advantages to remain performance and contribution; of informal interaction, essen- competitive, such using synergies, 2) team style is established by all tial for sharing and generating providing costs savings (e.g., travel), team members and leverages the ideas. The company ended up enhancing knowledge transfer cultural diversity of the group; 3) putting back some of the of- and enabling access to low-wage accountability exists at both the fice space, using a “hotelling” resources through globalization.4 individual and entire team level;

Successfully Transitioning to a Virtual Organization: Challenges, Impact and Technology 8 and 4) reward and recognition are of her team, participated in Research Quarterly “Selected based on the success of the entire a cross-cultural awareness Cross-Cultural Factors in Human team, consistent with cultural training program. She decided, Resource Management”). norms. The following examples similar to the first team leader, illustrate some of these points. that prototyping was a good In Closing approach. She met with her Whether in a domestic or global Understanding Cultural team members, discussed her virtual work environment, today’s Differences thoughts and asked for feed- virtual workplace is rapidly Two high-level information back and suggestions. The changing as new technologies are technology virtual teams were Japanese and Indian team introduced. HR should take a formed, each with members members stated they would leadership role to support its orga- from the United States, India, be more comfortable with final nization to remain competitive Japan, Brazil and Germany. specifications. The U.S. team in an increasingly virtual market- Both team leaders were Amer- members volunteered to do the place. No doubt, within months ican. Each team was tasked prototyping. The Japanese and of the publication of this report, with the design and develop- Indian members agreed to de- there will be new technologies to ment of a web-based busi- velop the final product based on support the virtual worker and ness application, which had to the completed prototype. The offer better opportunities for col- be available for use within six Brazilian member volunteered laboration and productivity. HR months. The first team leader to evaluate the “ease of use” and team leaders need to ensure created a team charter without capabilities of the design. The that all staff understand the vari- any understanding of cultural team leader asked each person ous technologies that will make values and without involving to provide his or her milestones, the most effective use of time team members in the creation time schedules and interdepen- and resources but will also sup- of the charter. The leader de- dencies with one another. She port people, communication and cided that iterative, prototype and the German team member achievement of the business goals. development would be the agreed that he would create best approach and that he and manage the final project Endnotes would empower all team mem- plan. This team leader devel- 1 O’Neill, T. A., Lewis, R. J., & Hambley, L. A. (2008). Leading virtual teams – potential problems Motivation and engagement are among and simple solutions. In J. Nemiro, M. Beyerlein, L. Bradley, & S. Bey- the top challenges for virtual teams. erlein (Eds.), The handbook of high- performance virtual teams: A toolkit for collaborating across boundaries (pp. 59-83). San Francisco: Jossey- bers. He assigned that func- oped an understanding of the Bass. tion to team members from strengths each individual and 2 Japan and India. Establishing culture contributed to the team Fisher, K., & Fisher, D. (2001). The distance manager: A hands-on guide milestones and maintaining and leveraged those character- to managing off-site employees and schedules was critical on the istics while creating an inclusive virtual teams. New York: McGraw- project since the development working environment. The proj- Hill. life cycle was only six months. ect was delivered on time, within 3 Ibid. This project experienced nu- budget and was well received. merous false starts and delays 4 Lockwood, N. R. (2004, August). and failed to deliver on time. Finally, solid experience in SHRM Briefly Stated: Team series part III: Global virtual teams. conflict resolution is recom- Retrieved from www.shrm.org. The second team leader, rec- mended to successfully manage 5 ognizing that she did not fully and address the complex dynam- Ibid. understand cultural differences ics of a global virtual team. (For as they related to the strength further reading, see the SHRM

9 PROJECT TEAM Project leader: Nancy R. Lockwood, M.A., SPHR, GPHR, manager, HR Content Program, SHRM Research

Project contributors: Lorelei Carobolante, SCRP, GMS, GPHR SCRP, CEO/president, G2nd Systems Shawn Fegley, survey analyst, SHRM Research Kristin Lundin, SPHR, product manager, Salary.com Miguel R. Olivas-Luján, Ph.D., Clarion University of Pennsylvania and Tec de Monterrey, Mexico Elaine Orler, president, Talent Function Group LLC John G. Schieman, vice president, Global Programs and Marketing, Global Dynamics, Inc. Debra Sieloff, MSE IPT, member, SHRM Technology & HR Management Special Expertise Panel Tabetha Taylor, director, training and partnership alliances, Manheim Inspections Randy Tyson, director, Buck Consultants, Inc. Steve Williams, Ph.D., SPHR, director, SHRM Research

External reviewers: SHRM Technology & HR Management Special Expertise Panel: Paul L. Belliveau, MBA, SPHR; Gerald T. Crispin, SPHR; Elaine Orler SHRM Global Special Expertise Panel: Manjushree M. Badlani, M.A., SPHR; Miguel R. Olivas- Luján, Ph.D.; Lucinda B. Smith, GBA, GPHR; John R. Wilson, JD, Esq.

ABOUT SHRM The Society for Human Resource Management (SHRM) is the world’s largest association devoted to human resource management. Representing more than 250,000 members in over 140 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession. Founded in 1948, SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China and India. Visit SHRM Online at www.shrm.org.

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ISBN: 978-1-586-44194-4 I SHRMStore#: 62.37009

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