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  • 2010RW3LLCAllrightsreserved.

    The Challenges of Working in Virtual Teams

    VIRTUAL TEAMS SURVEY REPORT - 2010

    55 Fifth Ave., New York, NY 10003

    Tel. +1.212.691.8900 RW-3.com [email protected]

  • 2 TableofContents|

    CONTENTSExecutiveSummaryandAnalysis..................................................................................................................................3

    KeyFindings...............................................................................................................................................................3

    KeyRecommendations..............................................................................................................................................3

    Background....................................................................................................................................................................5

    AboutRW3CultureWizard.........................................................................................................................................5

    SurveyPurpose..........................................................................................................................................................5

    RespondentProfile........................................................................................................................................................6

    LocationofRespondents...........................................................................................................................................6

    PercentageofVirtualTeamLocatedOutsidetheHomeCountry.............................................................................6

    SizeofRespondingOrganizations..............................................................................................................................7

    SurveyParticipationbyIndustrySector....................................................................................................................7

    DefinitionofVirtualTeam.........................................................................................................................................8

    SurveyResponseData...................................................................................................................................................9

    VirtualTeamSuccess.................................................................................................................................................9

    DifferencesBetweenVirtualandFacetoFaceTeams............................................................................................10

    RatingGeneralChallengesFacedbyVirtualTeams.................................................................................................11

    ChallengesYouFacePersonallybyWorkingVirtually.............................................................................................12

    MeetingVirtualTeamMembersinPerson..............................................................................................................13

    ChallengesYouFaceDuringaVirtualTeammeeting..............................................................................................14

    CharacteristicsofaGoodVirtualTeammate...........................................................................................................16

    OpenEndedComments..............................................................................................................................................17

    GeneralComments..................................................................................................................................................17

    OtherImportantDifferencesBetweenVirtualandFacetoFaceTeams................................................................19

    ExperiencewithVirtualTeamsOutperformingCoLocatedTeams.........................................................................23

    MakingVirtualTeamsMoreSuccessful...................................................................................................................28

    Conclusion...................................................................................................................................................................31

  • 2010RW3LLCAllrightsreserved.

    EXECUTIVESUMMARYANDANALYSISInApril2010,RW3CultureWizardsentout30,000surveyformstorandomlyselectedemployeesofmultinationalcorporations.Wereceived600completedsurveys,andthefullresultshavebeenanalyzedintheattachedreport.

    Overall,participantsinthesurveyconfirmedthatvirtualteamspresentuniquechallengesthatareculturallybasedand can be counterproductive unlessmanaged effectively.While the hurdles that virtual teams face are notsurprising,wewerestruckby thedepthandbreadthofthechallenges.Sincevirtual teamsareanevergrowingcomponent of global business, it behooves global organizations to institutionalize some global virtual teamstructureandtrainingtoovercomethesepotentialhazards.

    Wealsofoundthatvirtualteamsfacemanyofthesamechallengesthatallteamsface,but languagedifficulties,timeanddistancechallenges, theabsenceof facetofacecontact,andaboveall, thebarriersposedbyculturaldifferences andpersonal communication stylesmake virtualwork farmore complex. Fortunately,ourbusinessexperienceshowsthatallofthesechallengesarenotinsurmountable,andonceagroupismadeawareofthem,effectivetrainingandorganizationalstructuringcanamelioratemostofthem.

    KEYFINDINGS

    80%ofrespondentsreportedthattheywerepartofateamwithpeoplebasedindifferentlocations. 63%ofrespondentsindicatedthatnearlyhalfoftheirteamswerelocatedoutsidethehomecountry. 64%consideredtheirteamtobeanexampleofavirtualteam. 60%reportedthattheirvirtualteamsweresuccessfulorverysuccessful,and40%believedtheirvirtual

    teamsweresomewhatsuccessfulornotsuccessful.

    Respondents foundvirtual teamsmorechallenging than facetoface teams inmanagingconflict (73%),makingdecisions (69%),andexpressingopinions (64%).Theyalso stated thatdeliveringqualityoutput(48%)andgeneratinginnovativeideas(47%)weremorechallenginginavirtualenvironment.

    Time zones (81%)presented thegreatestgeneralhurdle tovirtual teams, followedby language (64%);holidays,locallaws,andcustoms(59%);andtechnology(43%).

    Thegreatestpersonalchallengesrespondentsfacedwereinabilitytoreadnonverbalcues(94%),absenceof collegiality (85%),difficulty establishing rapport and trust (81%),difficulty seeing thewholepicture(77%),relianceonemailandtelephone(68%),andasenseofisolation(66%).

    46%ofrespondentsnevermetothervirtualteammembersfacetoface,and30%metonlyonceayear. The top fivechallenges facedduringvirtual teammeetingswere insufficient time tobuild relationships

    (90%), speed of decisionmaking (80%), different leadership styles (77%),method of decisionmaking(76%),andcolleagueswhodonotparticipate(75%).

    When respondents ranked themost importantcharacteristicsofagoodvirtual teammate, they rankedwillingness to share information as first, being proactively engaged second, and the ability to becollaborativeasthird.

    KEYRECOMMENDATIONSThesurveyclearlyconfirmsthegrowingimportanceofglobalcollaboration,whichtranslatesintovirtualwork,anditgoeson topointout thekeyareas inwhichvirtual teams representuniquechallenges to theproductivityoforganizations and individuals. The findings and our experience validate the need to recognize that virtual

  • 4 ExecutiveSummaryandAnalysis|RW3 LLC

    teamworkisdifferentandrequiresspecifictraining,tactics,andsupport.Furthermore,todaysleadershipneedstoinclude specific competencies to structure and manage virtual teams that invariably comprise people fromdifferentculturesandworkstylesandwhocometogethertomeetatdifferenttimesofthe24hourworkcycle.

    Virtual teamsneed toestablishspecificworkrules (i.e.,rules forrespectful interaction) thatareassumed incolocatedteams.Theyalsoneedtopaygreaterattentiontoteamstructurethancolocatedteamsdo. Inaddition,virtual teamsmust carefullymonitorandadhere to thework rules theyhave created.Finally, theyneed tobeawareoftheinfluenceofcultureonworkstylesandtodevelopprocedurestoassureinterculturaleffectiveness.

  • RW3LLC| 5

    BACKGROUND

    ABOUTRW3CULTUREWIZARDRW3 CultureWizard is an intercultural training consultancy that specializes in creating online and eLearningfacilities for itsclientorganizations. In2001, the foundersof thecompany recognized thatcultural trainingwasneededbytheentirecorporatepopulation,not justthepeoplewhoweretravelingand living internationally. Inresponsetothatrecognizedneed,wecreatedCultureWizard.comtoserveasaculturaleUniversityandprovidetailored learning platforms to our client companies. As a result of the interests of our clients and generalrecognitionofthegrowingimportanceandcomplexityofvirtualwork,wesetabouttocreateanumberofculturallearning tools.These tools facilitateglobal collaborationandacknowledge the impactof culture invirtualworksettings.

    SURVEYPURPOSEThe rapidpaceof technological change and growingnumberof collaborative softwareoptionshave facilitatedvirtualwork to the pointwhere it is now commonplace for teams of people from around theworld toworktogether,sometimeswithoutevermeeting face to face.Theobviousefficiencyof thesevirtualwork teamshasincreased dramatically in recent years.More recently, the reduction in business travel brought about by theeconomicdownturnhasmadevirtualteamsmoreusefulthanever.

    Whileweallrecognizethebenefitsofaccessingtheintellectualpowerofaglobalworkforce,therehasbeenlittlefocuson thechallenges thatcomewithworkingacross timezonesandcultures.Nonetheless, therehasbeenagrowingawarenessoftheneedforeffectivecommunicationskillsamongvirtualteammembers.Thisconcernhasbeenvoicedbyourclientsandcolleagues. Inresponse,RW3