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PGS, the engineering division of The BOCGroup, is one of BOC’s three global lines ofbusiness. It is headquartered in Singapore

but its customers and employees are located inover 60 countries around the world. Like mostglobal organizations, PGS uses virtual teamsextensively in many areas of its business. It’s ahighly matrixed organization with teams thatcross functions, business units and geographies,tasked with carrying out everyday businessprocesses and unique projects.

My team, for example, is tasked with managingthe organizational change aspects of implementinga global asset maintenance management system in35 countries. Our job is to ensure users knowwhy, how and when the system will beimplemented, how the related business processeswill change, and what it will mean to them intheir various roles. But since the team iscomprised of individuals based all over the world,they’ve never actually met face to face.

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.

Overcoming common obstacles

to improve team performance

Critical success factors for global virtual teams

By Jenny Goodbody

Identifying success factorsAlthough the use of virtual teams such as this hasbecome increasingly common within theorganization, leadership recently became awarethat some virtual teams have been highlysuccessful while others have struggled to achieveobjectives. A year ago, we decided to investigatethis issue by seeking answers to the question:What are the factors critical to the success ofvirtual teams? Identification of these issues wouldenable the organization to develop businessprocesses and personal development programs tohelp teams achieve their goals.

Through research of current literature on thetopic, and interviews with team leaders andmembers throughout PGS, we identified factorsthat determine the success or failure of virtualteams in three key categories:1. Team formation2. Trust and collaboration3. Team communication

1. Team formationMany authors writing about teams, both co-located and virtual, agree that this is the mostimportant stage in the life of the team. Withoutsuccessful team formation, the goals and

PGS is theengineeringdivision of theBOC Group, aworldwideindustrial gases,vacuumtechnologies anddistributionservices company.BOC serves twomillion customersin more than 50countries,employs over43,000 people andhad annual salesof over US$8.3billion in 2004.

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objectives are unlikely to be attained, or at best,will be partially reached through the efforts ofindividuals, removing the advantages inherent inteamwork. The following factors all contribute todeveloping a strong virtual team.

Clear sponsorshipTeam members need to know who their sponsoris; the person they can go to when problemsarise, with whom they can discuss progress andissues and celebrate success. The sponsor shouldbe present at the team kick-off meeting – thisprovides an early opportunity to defineexpectations – and should maintain a sufficientlevel of interaction with the team throughout thelife of the project.

Within the change management team, we’vecreated a standard list of the characteristics thatwe expect of a good sponsor, and we use this as abasis for discussion around team expectations.The list reflects issues important to changemanagement projects, such as understanding theimpact of a project on end users, showing publicand private support, openness to feedback, activetracking of project progress, and ensuringnecessary resources are available.

As the project progresses, the sponsor orsponsors should be actively involved in theproject steering team. In a global project likeours, with multiple reporting structures, theremay well be multiple sponsors, but the same rulesof sponsorship still apply.

Agreed goalsWhere possible, team members should have inputinto goal definition, so they can take personalownership of those goals. In some cases this isn’tpossible, particularly where the goals are strategicin nature and set by senior leaders. In theseinstances, members should play an active role insetting short-term goals and success measurements.In our change team, for example, we’ve been giventhe overall project goals and schedule, but we“own” the project implementation plan and aremeasured on its success and sustainability. Themore dispersed the team, the clearer the purposeor goal must be since the team leader cannot be onhand to direct members all the time.

Recruiting the right team membersThe advantage of virtual teams is thatmembership is not restricted to a specificlocation. However, large virtual teams aredifficult to manage and as a result can beinefficient. The team leader needs to ensure therequired knowledge and skills are provided, with

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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. Thismeans we can learn from each other and worktogether to solve problems.

Linking performance measures to prioritiesIndividual and team performance measures mustbe aligned with the priorities of the overallorganization, as well as the specific project. If aproject is given low priority, resources will not bemade available and team members will becomedemotivated when they’re unable to achieve goals.

On the change team, we’ve used formal roleprofiles for team members – i.e. job descriptions –to define responsibilities, developmentrequirements, and key performance indicators forboth individuals and the team as a whole.

The kick-off meetingA kick-off meeting, whether held virtually or faceto face, sets the foundation for good workingrelationships between team members. The goalsof the meeting are to formally initiate the team,secure understanding and agreement on themission, agree on sub-team or task requirements,provide opportunity for feedback, and reviewteam members’ roles, expertise andaccountabilities. It’s important for all members tounderstand what each brings to the team.

Face-to-face meetings will naturally provide aneasier forum for this, particularly where there isthe opportunity for social as well as professionalinteraction. Where this isn’t possible, teamleaders should take proactive steps to helpmembers form these relationships. This mightinclude encouraging members to shareinformation about their country, culture orpersonal background, or ask pairs or small q

• A year ago, the BOC Group set out to investigate the critical factorsthat 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’sproject teams perform more effectively and achieve objectives.

KEY POINTS:!

Jenny Goodbody is a global change manager with the BOC Group.Currently, she heads up a team responsible for the organizational change aspects ofimplementing a global asset maintenance management system. Goodbody holds a masterof engineering degree and an MBA (Project Management). She has worked for BOC forover 10 years in various engineering and business roles in the UK and US.

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groups of members to complete short-term taskstogether, reporting back to the whole team.

Awareness of cultural influencesThere are several aspects for team leaders andmembers to consider when working within amulticultural team. Figure One (above) capturessome of the potential issues that may arise.

The right competencies and skillsJust because someone has been successfulworking as part of a co-located team, does notmean they will work well within a virtual team.Competencies or characteristics required for asuccessful virtual team member includecommunication or networking skills, comfortwith use of technology, and the ability to selfmanage. Some competencies can be taught ordeveloped 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 identityThe creation of a team identity or brand can help

in team formation, as it gives members a sense ofunity and is useful when communicating progressand success to the wider organization. Whereteam membership changes over time – throughnatural turnover or changes in membership –team branding can help new members identifykey goals and objectives, and take their place inthe team more quickly.

2. Trust and collaborationIn conventional co-located teams, trust isdeveloped over time through informal socialinteraction and sharing of information. Forvirtual teams, social interaction is usually limited– some members may never meet. However,development of trust is still dependent oninteraction and information exchange. Teamleaders should consider the following factors tohelp develop an atmosphere of trust andcollaboration.

Ensure consistencyIt’s essential that team members “walk the talk.”If they agree an action, they must follow itthrough. In a virtual team, members must be self-starters, able to manage their own time andpriorities without too much overseeing.

Many experts recommend the formaldevelopment of meeting and behavioral norms,for example, a “team charter” to help build trustbetween members. Team formation should ideallyinclude this process, allowing members to discuss,agree and document appropriate behaviorsregarding aspects such as communication channelselection, response times, document storage,meeting frequency, conflict resolution anddecision-making processes.

Creating a charter will also encourage teammembers to discuss issues such as technical andlanguage restrictions, cultural norms, and theexpectations they have of other team members.

Encourage collaborationA culture of collaboration should be proactivelyencouraged within a team, rather than assumed.It will follow naturally when team members learnto trust each other. A supportive climateencourages members to share information freely,whereas a defensive environment promotesconflict and suppression of ideas.

In the change team’s weekly teleconferences, wetry to ensure that some portion of the meeting isspent chatting about non-work related topics.This has helped foster a relaxed, collaborativeteam style. Another way to help build this kind ofclimate is to publicly acknowledge particular

t

Critical success factors for global virtual teams

Figure One: Cultural influences on global teams

Individualism vs.collectivism

Power distance

Variable Implication for multi-cultural team

Uncertaintyavoidance

Task/relationshiporientation

• Individualistic team members will voice their opinions morereadily, challenging the direction of the team. The opposite istrue of collectivists. Collectivists will also want to consultcolleagues more than individualists before making decisions.• Collectivists don’t need specific job descriptions or roles butwill do what is needed for the team, ideally together with otherteam members. Individualists will take responsibility for tasksand may need reminding that they’re part of the team.• Individual-oriented team members will want direct,constructive feedback on their performance and rewards tiedclosely to their individual performance. Collectivists, however,might feel embarrassed if singled out for particular praise or anindividual incentive award.• Collectivists prefer face-to-face meetings over virtual.

• Team members from cultures that value equality (i.e. lowpower distance) expect to use consultation to make keydecisions. From the viewpoint of a team member from a higherpower distance culture, however, a team leader exercising amore collaborative style might be seen as weak and indecisive.• Members from high power distance cultures will be veryuncomfortable communicating directly with people higher inthe organization.

• In a culture where risk taking is the norm or valued, teammembers tend to be comfortable taking action or holdingmeetings without much structure or formality. Members whoare 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 notrespond well to “micro management.” They may also be morewilling to use new technologies.

• Team members from relationship-oriented cultures want tospend extra social time together, building trust, and may haveproblems interacting smoothly with short-term members.

ensuring that everyone has enough informationto complete the work required, and inundatingpeople with irrelevant e-mails. This is somethingthe team leader should monitor and manage.

Facilitate team meetingsTeam meetings are effectively facilitated when allobjectives are met, and all members cancontribute. However, after speaking with teamleaders and members throughout PGS, it’s clearthat this can be a challenge. Without facilitation,meetings can be dominated by one or twoindividuals, particularly in multicultural teams or

teams where members are not all speaking intheir first language.

My team has found that sharing informationprior to a meeting is invaluable. Each memberprepares a 6-10 bullet-point overview ofprogress, issues and action plans to be circulated24 hours before meetings. This enables the groupto concentrate on the important issues in theactual meeting. As team leader, my job is to makesure no one dominates the discussion, andeveryone plays an active role.

There is a strong tendency in virtual teams foreveryone to be included in decision-makingmeetings, whether appropriate or not.Clarification of which tasks need input from thewhole team, and which do not, is a critical stepto avoid this problem.

Mixed successPGS has had mixed success with virtual teams inthe past, often throwing teams in at the deep endand assuming they will survive and perform well.Paying attention to the factors listed in thisarticle is starting to help some teams, includingmine, to perform more effectively. This improvedperformance makes it far more likely we willachieve, or exceed, our goals.

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efforts, either within the team ororganizationwide as appropriate. Team leadersshould also send encouraging messages tomitigate the isolation that virtual team membersoften feel.

Celebrate achievementsIn a virtual team – as in any team – it’s importantto celebrate milestones reached or improvementsmade, and recognize and reward team membersfor achievements. In a virtual team, this alsohelps build relationships and provides anopportunity to communicate successes to thewider organization.

As it’s unlikely the virtual team can get togetherfor frequent celebrations, the team leader willprobably need to find other ways to acknowledgesuccess or achievements. In the PGS change team,we try to ensure sponsors and managers areaware of individual efforts, and have used thecompany intranet and internal publications tobroadcast achievements.

3. Team communicationGiven that the right people have been selected tojoin a virtual team, and their goals and objectivesare clear, communication is the final element thatwill ensure the continued success of the team.Here are success factors critical to maintainingeffective communication within virtual teams.

Select appropriate technologyTry to keep the selection of technology as simpleas possible. Select communication channels andtechnologies that are appropriate both for thetask being undertaken, and the level ofinfrastructure available to all members. Pureinformation sharing obviously requires a muchlower complexity of technology.

My team uses weekly teleconferences, e-mail,ad hoc telephone calls, and a central documentrepository, all very simple and widely available.

Share information proactivelyThis is particularly important for teams wheremembers don’t all speak the same first language.Team members must develop a mutualunderstanding of what knowledge or informationto share and when, to enable the team to makedecisions or draw conclusions.

Of course the transfer of information is onlythe first step. Members must be sure thatcommunication has been successful, in that themessage has been understood. This is particularlyimportant within multicultural teams.

There is also a balance to be found between

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Critical success factors for global virtual teams

CONTACT Jenny Goodbody

BOC Group

Jenny.Goodbody@boc.come-mail:

“Communication is the finalelement that will ensurethe success of the team.”