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© M.B. Watson-Manheim, May 2008
Global Virtual Teams
Mary Beth Watson-ManheimAssociate Professor
Information & Decision SciencesUniversity of Illinois, Chicago
© M.B. Watson-Manheim, May 2008
Agenda
Framework for Documenting Virtuality and Effects on PerformanceBoundariesDiscontinuities and Continuities
Virtuality Index at Intel Corporation
Implications for Management and IT
© M.B. Watson-Manheim, May 2008
Work is Changing: Becoming More Virtual
Increase in work in multiple teams distributed over different geographical locations, major time zone differences, internal business units, and national cultures Dependent on extensive use of ICT
Benefits: Access to more expertise, skills regardless of location More flexibility – teams can be formed and disbanded
with little cost Dynamic team membership Reduced costs – people can change jobs without
changing location
© M.B. Watson-Manheim, May 2008
Challenges of VirtualityCommunication often becomes more difficult, performance suffers Loss of face-to-face synergies Lack of trust Greater concern with predictability and reliability Lack of social interaction
But this is not always the case Some teams are very productive, Some relationships thrive
How to get it right?
© M.B. Watson-Manheim, May 2008
What Do We Mean by “Virtual”?Language is imprecise Shorthand for many different situations, e.g.,
telecommuting, globally distributed teams
Difficult to document & measure different conditions Does virtual mean supporting ability to work at home – an
HR concern? Does virtual mean supporting an interorganizational
alliance for new product development – a more strategic concern?
Difficult to understand effects of virtuality on performance and how to manage
© M.B. Watson-Manheim, May 2008
Virtual = Spanning Boundaries
Virtual is work that spans one or more boundaries
Examples of boundaries Geographic Work Location (most common) Time Zone Work Group Membership Organizational Affiliation Functional Area, e.g., marketing, finance, etc. National/Cultural Backgrounds
Distributed organizational team may involve members spread across US while inter-organizational alliance may cross many boundaries
© M.B. Watson-Manheim, May 2008
Role of ICT
Both facilitates and creates new challengesVirtual teams dependent on use for ICTHowever, use of ICT provides platform for teams to span more boundaries Access to more expertise, additional flexibility But also new challenges – stretched thin?
ICT enables connections but the nature of these connections is changing ICT solutions may not provide adequate support
© M.B. Watson-Manheim, May 2008
Virtuality and PerformanceThere is often increased effort to accomplish work at the boundary Adding a distant colleague to work group –
increases cost of scheduling meeting If distant colleague is from different nationality –
scheduling meeting is even more difficult + misunderstandings more likely
Team performance may suffer
But spanning boundaries does not always lead to performance difficulties
© M.B. Watson-Manheim, May 2008
DiscontinuityDiscontinuity is “jump in the marginal costs of physical flows of products and information across space” where the jump indicates existence of a
border
© M.B. Watson-Manheim, May 2008
DiscontinuitiesA boundary can be objectively noted as being present Such as individuals cross a boundary of time when
they work in different time zones
Discontinuities are elements of virtual environment that create a break or gap in the work context, or create lack of continuity A discontinuity exists when the boundary is an
impediment to information and communication flows or reduces performance
© M.B. Watson-Manheim, May 2008
Continuity
Continuities: methods to compensate for or mitigate effort – reducing difficulties spanning boundaries
© M.B. Watson-Manheim, May 2008
Example of Continuities
Adding a distant colleague to work group – increases cost of scheduling meetingIf distant colleague is from different nationality – scheduling meeting is even more difficult + misunderstandings more likely To avoid communication problems – team members often
talk more slowly avoid colloquialisms To avoid continual scheduling problems – team members
may agree on regularly scheduled meetings
Team performance can increase Cost of work at boundary is reduced
© M.B. Watson-Manheim, May 2008
Virtuality at Intel
Large global corporation with multiple US and international sitesStrategic dependence on virtual work Employees not required to change location if job
responsibilities change Sharp reduction in travel budgets Remote reporting relationships common (13%
overall, much higher in some areas)
IT planners question efficacy of current collaboration tools for this environment
© M.B. Watson-Manheim, May 2008
Data Collection
Web-based survey of 2100 employees 700 from each of 3 regions – Americas, Greater
Asia (GAR), Greater Europe (GER) All job categories represented (including factory
floor)
1269 responses (62%) Reflected overall regional and job stratification
Except: 1) manuf floor under-represented - 37% population, 21% of sample; 2) mgt over-represented, <1% population, 3% of sample
© M.B. Watson-Manheim, May 2008
Development of Virtuality Index
Eighteen questions on frequency of aspects of virtuality (boundaries) found in collaboration Each of the aspects can be credibly measured and
reported, i.e., employees can reliably say whether they work with people at a physical distance, across organizations or national cultures, and how often they experience the boundary
Frequency measured on 6-point scale Never, yearly, quarterly, monthly, weekly, daily
Performance metrics based on “Intel values” Known to all employees through performance reviews
© M.B. Watson-Manheim, May 2008
Components of VirtualityDimensions of Virtuality different than expectedTeam distribution Degree to which people work on teams with people
distributed over different geographies and time zones, relying upon Intel’s basic collaboration technologies
Workplace mobility Degree to which employees work in environments other
than regular offices.
Variety of practices degree to which employees experience cultural and work
process diversity in collaboration
© M.B. Watson-Manheim, May 2008
How Virtual is Intel:Team distribution
61
69
70
71
0 20 40 60 80 100
Work via Internet-basedconferencing tools
Collaborate with people indifferent time zones
Collaborate without meetingface-to-face
Collaborate with people whospeak different languages
Chudoba, Wynn, Lu, Watson-Manheim, M.B., “How Virtual Are We? Measuring Virtuality and Understanding Its Impact in a Global Organization,” Information Systems Journal,Vol. 15 (4), 279-306, 2005
© M.B. Watson-Manheim, May 2008
How Virtual is Intel:Variety of Practices
44
55
64
0 20 40 60 80 100
Work on projects that have changingteam members
Work with people that use differenttechnologies
Work with teams that have differentways to track their work
Chudoba, Wynn, Lu, Watson-Manheim, M.B., “How Virtual Are We? Measuring Virtuality and Understanding Its Impact in a Global Organization,” Information Systems Journal,Vol. 15 (4), 279-306, 2005
© M.B. Watson-Manheim, May 2008
How Virtual is Intel:Workplace mobility
16
17
38
49
55
0 20 40 60 80 100
Work at different Intel sites
Work while traveling, forexample, at airports or hotels
Have professional interactionswith people outside Intel
Work at home during normalbusiness days
Work with mobile devices
Chudoba, Wynn, Lu, Watson-Manheim, M.B., “How Virtual Are We? Measuring Virtuality and Understanding Its Impact in a Global Organization,” Information Systems Journal,Vol. 15 (4), 279-306, 2005
© M.B. Watson-Manheim, May 2008
Multi-teaming64% on 3+ teams , half of those on 5+ teams
36 33
156 2
5
0
20
40
60
80
100P
erce
nt
1-2 3-4 5-6 7-8 9-10 > 10
Number of current teams
Chudoba, Wynn, Lu, Watson-Manheim, M.B., “How Virtual Are We? Measuring Virtuality and Understanding Its Impact in a Global Organization,” Information Systems Journal,Vol. 15 (4), 279-306, 2005
© M.B. Watson-Manheim, May 2008
Findings: Virtuality IndexTeam Distribution does not have negative effect on performanceNew Discontinuities - Variety of work practices and Mobile work do have negative effect on performanceMulti-teaming seems to be new discontinuity Many formed opportunistically rather than by
assignment Increase in multi-tasking during meetings
© M.B. Watson-Manheim, May 2008
Implications
New Discontinuity - Multi-TeamingMost prior work assumes one intact teamOrganizing principle for current tools is
‘within-group,’ membership in more than one group means
multiples sites, repositories, etc. Difficult to have unified view of work Changing teams leads to increased transactions
cost, e.g., different norms of communication, use of technologies within teams, etc.
© M.B. Watson-Manheim, May 2008
ImplicationsDiscontinuity - Variety of Practices Rate at which multi-teaming occurs and the number of
differences that people face contribute to lack of cohesion Increased cultural and work process diversity Working with different tools and processes has the most
negative impactPeople with established and predictable procedures and processes have better perceptions of team performance Management policies could introduce continuities, e.g.,
consistent usage of tools within the organization, establishment of repeatable processes
Develop team etiquette for virtual work
© M.B. Watson-Manheim, May 2008
Implications
Discontinuity - Mobile Work Describes how much employees move
around from home, to different offices, and travel locations
Many employees face challenges commonly associated with sales and marketing
Tool Design Tools will need to provide a form of
continuity that parallels that of workers who stay at one desktop (home or office.)
© M.B. Watson-Manheim, May 2008
IT Solution AreasTools need expressivity to accommodate sociability & cultural differences Sociability relates positively to productivity Cultural differences have some negative impact
Add level of consistency to platform For example, reduce overhead of shifting documents
from one team repository to another, maintaining versions, and rolling up three to five team milestones into a single individual timeline
BUT also need for increased expressivity (flexibility in expression)
People combining media to get increased expressivity
Multi-teaming suggests new organizational model for designers IT tools designed to address network not hierarchy Web 2.0, social networking tools may be appropriate
© M.B. Watson-Manheim, May 2008
ConclusionDiscontinuity/Continuity Framework Helps identify problematic areas and ways to reduce
problems Gives insight into process of working virtually In addition to individual and team strategies, other higher
level continuities include professional culture, organizational culture and norms
Use of Virtuality Index Quantify aspects of virtuality in the organization or work unit
and link to performance Identify problematic areas, management and IT solutions Organizational culture and existing processes likely to
influence results (Intel)