For multinational companies, virtual teams operating

across boundaries of time and geography are

necessities of everyday working life. However, research

suggests that typical success rates run at less than 30

percent. Jenny Goodbody, a global change manager

with the BOC Group, and leader of a project team with

members in six continents, considers the critical

success factors for global virtual teams.

Critical success factors for

global virtual teams
Overcoming common obstacles
to improve team performance Identifying success factors
Although the use of virtual teams such as this has
become increasingly common within the
By Jenny Goodbody organization, leadership recently became aware
that some virtual teams have been highly
successful while others have struggled to achieve

P
GS, the engineering division of The BOC
Group, is one of BOC’s three global lines of
business. It is headquartered in Singapore
but its customers and employees are located in
over 60 countries around the world. Like most
PGS is the
global organizations, PGS uses virtual teams
engineering
division of the extensively in many areas of its business. It’s a
BOC Group, a highly matrixed organization with teams that
worldwide cross functions, business units and geographies,
industrial gases, tasked with carrying out everyday business
vacuum
processes and unique projects.
technologies and
distribution My team, for example, is tasked with managing
services company. the organizational change aspects of implementing
BOC serves two a global asset maintenance management system in
million customers 35 countries. Our job is to ensure users know
in more than 50
why, how and when the system will be
countries,
employs over implemented, how the related business processes
43,000 people and will change, and what it will mean to them in
had annual sales their various roles. But since the team is
of over US$8.3 comprised of individuals based all over the world,
billion in 2004.
they’ve never actually met face to face.
objectives. A year ago, we decided to investigate
this issue by seeking answers to the question:
What are the factors critical to the success of
virtual teams? Identification of these issues would
enable the organization to develop business
processes and personal development programs to
help teams achieve their goals.
Through research of current literature on the
topic, and interviews with team leaders and
members throughout PGS, we identified factors
that determine the success or failure of virtual
teams in three key categories:
1. Team formation
2. Trust and collaboration
3. Team communication
1. Team formation
Many authors writing about teams, both co-
located and virtual, agree that this is the most
important stage in the life of the team. Without
successful team formation, the goals and

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18 Volume 9, Issue 2 February/March 2005

© Melcrum Publishing Ltd. 2005. For more information, go to www.melcrum.com or e-mail info@melcrum.com
 objectives are unlikely to be attained, or at best,
will be partially reached through the efforts of
individuals, removing the advantages inherent in
teamwork. The following factors all contribute to
developing a strong virtual team.
Clear sponsorship
Team members need to know who their sponsor
is; the person they can go to when problems
arise, with whom they can discuss progress and
issues and celebrate success. The sponsor should
be present at the team kick-off meeting – this
provides an early opportunity to define
expectations – and should maintain a sufficient
level of interaction with the team throughout the
life of the project.
Within the change management team, we’ve
created a standard list of the characteristics that
we expect of a good sponsor, and we use this as a
basis for discussion around team expectations.
The list reflects issues important to change
management projects, such as understanding the
impact of a project on end users, showing public
and private support, openness to feedback, active
tracking of project progress, and ensuring
necessary resources are available.
As the project progresses, the sponsor or
sponsors should be actively involved in the
project steering team. In a global project like
ours, with multiple reporting structures, there
may well be multiple sponsors, but the same rules
of sponsorship still apply.
Agreed goals
Where possible, team members should have input
into goal definition, so they can take personal
ownership of those goals. In some cases this isn’t
possible, particularly where the goals are strategic
in nature and set by senior leaders. In these
instances, members should play an active role in
setting short-term goals and success measurements.
In our change team, for example, we’ve been given
the overall project goals and schedule, but we
“own” the project implementation plan and are
measured on its success and sustainability. The
more dispersed the team, the clearer the purpose
or goal must be since the team leader cannot be on
hand to direct members all the time.
Recruiting the right team members
The advantage of virtual teams is that
membership is not restricted to a specific
location. However, large virtual teams are
difficult to manage and as a result can be
inefficient. The team leader needs to ensure the
required knowledge and skills are provided, with
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February/March 2005 Volume 9, Issue 2
© Melcrum Publishing Ltd. 2005. For more information, go to www.melcrum.com or e-mail info@melcrum.com
Jenny Goodbody is a global change manager with the BOC Group.
Currently, she heads up a team responsible for the organizational change aspects of
implementing a global asset maintenance management system. Goodbody holds a master
of engineering degree and an MBA (Project Management). She has worked for BOC for
over 10 years in various engineering and business roles in the UK and US.
the smallest number of people.
My immediate team comprises six people but
each is from a different functional background,
bringing a unique strength to the team. This
means we can learn from each other and work
together to solve problems.
Linking performance measures to priorities
Individual and team performance measures must
be aligned with the priorities of the overall
organization, as well as the specific project. If a
project is given low priority, resources will not be
made available and team members will become
demotivated when they’re unable to achieve goals.
On the change team, we’ve used formal role
profiles for team members – i.e. job descriptions –
to define responsibilities, development
requirements, and key performance indicators for
both individuals and the team as a whole.
The kick-off meeting
A kick-off meeting, whether held virtually or face
to face, sets the foundation for good working
relationships between team members. The goals
of the meeting are to formally initiate the team,
secure understanding and agreement on the
mission, agree on sub-team or task requirements,
provide opportunity for feedback, and review
team members’ roles, expertise and
accountabilities. It’s important for all members to
understand what each brings to the team.
Face-to-face meetings will naturally provide an
easier forum for this, particularly where there is
the opportunity for social as well as professional
interaction. Where this isn’t possible, team
leaders should take proactive steps to help
members form these relationships. This might
include encouraging members to share
information about their country, culture or
personal background, or ask pairs or small q
! KEY POINTS:
• A year ago, the BOC Group set out to investigate the critical factors
that influence the effectiveness of global virtual teams.
• They identified factors within three key categories: team formation,
trust and collaboration, and team communication.
• Attention to factors listed within each category is helping BOC’s
project teams perform more effectively and achieve objectives.
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 Critical success factors for global virtual teams
Figure One: Cultural influences on global teams
Variable Implication for multi-cultural team
Individualism vs. • Individualistic team members will voice their opinions more
collectivism readily, challenging the direction of the team. The opposite is
true of collectivists. Collectivists will also want to consult
colleagues more than individualists before making decisions.
• Collectivists don’t need specific job descriptions or roles but
will do what is needed for the team, ideally together with other
team members. Individualists will take responsibility for tasks
and may need reminding that they’re part of the team.
• Individual-oriented team members will want direct,
constructive feedback on their performance and rewards tied
closely to their individual performance. Collectivists, however,
might feel embarrassed if singled out for particular praise or an
individual incentive award.
• Collectivists prefer face-to-face meetings over virtual.
Power distance • Team members from cultures that value equality (i.e. low
power distance) expect to use consultation to make key
decisions. From the viewpoint of a team member from a higher
power distance culture, however, a team leader exercising a
more collaborative style might be seen as weak and indecisive.
• Members from high power distance cultures will be very
uncomfortable communicating directly with people higher in
the organization.
Uncertainty • In a culture where risk taking is the norm or valued, team
avoidance members tend to be comfortable taking action or holding
meetings without much structure or formality. Members who
are more risk averse need a clearer, prepared meeting structure,
perhaps with formal presentations by all members of the team.
They’re unlikely to take an active part in brainstorming sessions.
• Members from lower uncertainly avoidance cultures will not
respond well to “micro management.” They may also be more
willing to use new technologies.
Task/relationship • Team members from relationship-oriented cultures want to
spend extra social time together, building trust, and may have
orientation
problems interacting smoothly with short-term members.
t groups of members to complete short-term tasks
together, reporting back to the whole team.
Awareness of cultural influences
There are several aspects for team leaders and
members to consider when working within a
multicultural team. Figure One (above) captures
some of the potential issues that may arise.
The right competencies and skills
Just because someone has been successful
working as part of a co-located team, does not
mean they will work well within a virtual team.
Competencies or characteristics required for a
successful virtual team member include
communication or networking skills, comfort
with use of technology, and the ability to self
manage. Some competencies can be taught or
developed over a relatively short space of time,
for example, ability to use technology. Others,
such as adaptability, flexibility and self-
management are more complicated to develop.
Developing a team identity
The creation of a team identity or brand can help
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© Melcrum Publishing Ltd. 2005. For more information, go to www.melcrum.com or e-mail info@melcrum.com
in team formation, as it gives members a sense of
unity and is useful when communicating progress
and success to the wider organization. Where
team membership changes over time – through
natural turnover or changes in membership –
team branding can help new members identify
key goals and objectives, and take their place in
the team more quickly.
2. Trust and collaboration
In conventional co-located teams, trust is
developed over time through informal social
interaction and sharing of information. For
virtual teams, social interaction is usually limited
– some members may never meet. However,
development of trust is still dependent on
interaction and information exchange. Team
leaders should consider the following factors to
help develop an atmosphere of trust and
collaboration.
Ensure consistency
It’s essential that team members “walk the talk.”
If they agree an action, they must follow it
through. In a virtual team, members must be self-
starters, able to manage their own time and
priorities without too much overseeing.
Many experts recommend the formal
development of meeting and behavioral norms,
for example, a “team charter” to help build trust
between members. Team formation should ideally
include this process, allowing members to discuss,
agree and document appropriate behaviors
regarding aspects such as communication channel
selection, response times, document storage,
meeting frequency, conflict resolution and
decision-making processes.
Creating a charter will also encourage team
members to discuss issues such as technical and
language restrictions, cultural norms, and the
expectations they have of other team members.
Encourage collaboration
A culture of collaboration should be proactively
encouraged within a team, rather than assumed.
It will follow naturally when team members learn
to trust each other. A supportive climate
encourages members to share information freely,
whereas a defensive environment promotes
conflict and suppression of ideas.
In the change team’s weekly teleconferences, we
try to ensure that some portion of the meeting is
spent chatting about non-work related topics.
This has helped foster a relaxed, collaborative
team style. Another way to help build this kind of
climate is to publicly acknowledge particular
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Volume 9, Issue 2 February/March 2005

efforts, either within the team or
organizationwide as appropriate. Team leaders
should also send encouraging messages to
mitigate the isolation that virtual team members
often feel.
Celebrate achievements
In a virtual team – as in any team – it’s important
to celebrate milestones reached or improvements
made, and recognize and reward team members
for achievements. In a virtual team, this also
helps build relationships and provides an
opportunity to communicate successes to the
wider organization.
As it’s unlikely the virtual team can get together
for frequent celebrations, the team leader will
probably need to find other ways to acknowledge
success or achievements. In the PGS change team,
we try to ensure sponsors and managers are
aware of individual efforts, and have used the
company intranet and internal publications to
broadcast achievements.
3. Team communication
Given that the right people have been selected to
join a virtual team, and their goals and objectives
are clear, communication is the final element that
will ensure the continued success of the team.
Here are success factors critical to maintaining
effective communication within virtual teams.
Select appropriate technology
Try to keep the selection of technology as simple
as possible. Select communication channels and
technologies that are appropriate both for the
task being undertaken, and the level of
infrastructure available to all members. Pure
information sharing obviously requires a much
lower complexity of technology.
My team uses weekly teleconferences, e-mail,
ad hoc telephone calls, and a central document
repository, all very simple and widely available.
Share information proactively
This is particularly important for teams where
members don’t all speak the same first language.
Team members must develop a mutual
understanding of what knowledge or information
to share and when, to enable the team to make
decisions or draw conclusions.
Of course the transfer of information is only
the first step. Members must be sure that
communication has been successful, in that the
message has been understood. This is particularly
important within multicultural teams.
There is also a balance to be found between
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February/March 2005 Volume 9, Issue 2
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Critical success factors for global virtual teams
ensuring that everyone has enough information
to complete the work required, and inundating
people with irrelevant e-mails. This is something
the team leader should monitor and manage.
Facilitate team meetings
Team meetings are effectively facilitated when all
objectives are met, and all members can
contribute. However, after speaking with team
leaders and members throughout PGS, it’s clear
that this can be a challenge. Without facilitation,
meetings can be dominated by one or two
individuals, particularly in multicultural teams or
“Communication is the final
element that will ensure
the success of the team.”
teams where members are not all speaking in
their first language.
My team has found that sharing information
prior to a meeting is invaluable. Each member
prepares a 6-10 bullet-point overview of
progress, issues and action plans to be circulated
24 hours before meetings. This enables the group
to concentrate on the important issues in the
actual meeting. As team leader, my job is to make
sure no one dominates the discussion, and
everyone plays an active role.
There is a strong tendency in virtual teams for
everyone to be included in decision-making
meetings, whether appropriate or not.
Clarification of which tasks need input from the
whole team, and which do not, is a critical step
to avoid this problem.
Mixed success
PGS has had mixed success with virtual teams in
the past, often throwing teams in at the deep end
and assuming they will survive and perform well.
Paying attention to the factors listed in this
article is starting to help some teams, including
mine, to perform more effectively. This improved
performance makes it far more likely we will
achieve, or exceed, our goals. scm
CONTACT
Jenny Goodbody
BOC Group
e-mail: Jenny.Goodbody@boc.com
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