Virtual teams poorly managed, say 1 in 3 execs in Economist study

Looks like some quite solid research from the Economist Intelligence Unit, "Managing virtual teams: Taking a more strategic approach." In the study, conducted in Fall 2009, a third of those executives surveyed said that their virtual teams were not well managed, yet most endorsed using them nonetheless. The major findings (go to link to download the study):

• Executives are generally positive about working in virtual teams. More than two out ofthree survey respondents believe that the advantages of working in a virtual team outweigh the disadvantages. Three out of every four respondents also state that they travel less as a result of working virtually.

• The single most common challenge, selected by 56% of executives polled, relates to the misunderstandings that emerge as a result of cultural and language differences from teams operating globally. Just one in 20 executives say they have never experienced any difficulty in managing a virtual team.

• More than one-half of executives say that their virtual teams use video conferencing on a regular basis. This rises to about two-thirds (64%) for the largest firms (those with annual revenue in excess of US$10bn), prompted in part by significant cutbacks in corporate travel budgets over the past two years. But visual communication does not always equate to better communication. Both cultural and gender-based differences need to be taken into account when choosing methods of communication. Research suggests that that men find eye contact threatening, while East Asians are more comfortable using other approaches, such as instant messaging (my bolding not theirs).

• One in three companies has set up virtual working so that they can tap into the global talent pool. One of the most significant benefits of being able to use technology to collaborate globally is the ability to draw on a much deeper pool of skills, without being constrained by geographical location. Yet the majority of survey respondents say that virtual team members are recruited by local managers (58%), suggesting that most companies only recruit in locations where they have an office, thereby severely curtailing the size of the talent pool on which they can draw. Also, relatively few managers embrace the actual technologies they use to communicate in their virtual teams as the method for meeting and interviewing new prospects.

Comments

[jessica lipnack]

From Facebook:

Ruth says: Thanks Jessica. I agree that this is the next "frontier" in developing management techniques and skills. It also has implications for executive/management coaching. New approaches need to be developed for that arena as well.

My reply: Ruth, have you spotted any great examples of virtual exec/mgmt coaching? Of people who've been coached this way and are better for it?

Ruth writes: This is something I am presently working on with a few clients. And, naturally, I think they're better off for it! Seriously tho, The person who manages a US virtual team interestingly has to be more stringent about outcomes, and less tied to motivation than in the more traditional settings. An international manager has to invent new, culturally appropriate methods (as indicated in the study) to hold the workers accountable for deliverables. It's more complicated than this of course, but there's only so much I can put in this space!

[jessica lipnack]

More from Facebook:

Sujatha says: Interesting. I think each local team needs to have its own management layer that is customized to handle the local culture/language environment. This layer in turn, interacts with the management layer that is responsible for the broader virtual team.
15 hours ago ·

My reply: Sort of boundary managers, Suji?

Ruth sasys: It is certainly a viable way to deal with the issues of culture. One of the dangers however is that you end up creating a cumbersome system and precisely because the teams are "virtual, it can be a management nightmare. The trick is to be able to empower the mid-layer while still having a relationship with the workers. Not a simple thing.