Virtual Dynamics in Organizations: The New and the Familiar by Hanna Fogel

Virtual Dynamics in Organizations: The New and the Familiar
by Hanna Fogel

Research confirms that through 2005, 50% of international virtual teams will experience suboptimal performance because of inattention to cultural differences.

This article seeks to examine a correlation between the role of a key player in the global organization, the virtual team, and business performance. It looks at the contribution of a high-functioning virtual team to the achievement of business goals, assuming diversity, and team dispersion.

It is indeed the familiar nature of interpersonal human dynamics to play a key role in the achievement of goals set forth by an individual or a group. The lack of effective interpersonal communication in a dysfunctional system becomes detrimental to goal setting and accomplishment, bearing no immediate relationship to the specific environment, be it the smaller family unit or the larger organization. Not surprisingly then, a direct link has been found between the level of functionality of virtual teams in internationally dispersed organizations and their business performance.

When asked "What do firms do?," we are quick to answer, "They add value." It is important to maintain this perspective all the time, and any talk about the human element in the organization should focus on its value-added contribution or ROI (Return On Investment). Effective advice on the organizational dynamics revolving around "cultural health" will target the business performance regardless of the particular issue it aims to improve. Cultural differences have become a core contributor to business goals and should be treated as such. In today's globally dispersed organization, we do not have the privilege of an oversight of behaviors and actions originating from people's cultures. Such approach would be defined as "inattention to cultural differences" and exert a negative effect on the business performance. Taking insufficient notice of cultural differences may create ongoing and self-perpetuating divisive boundaries in a thriving environment. It becomes a leadership challenge to discover talents and skills in the diversity of cultures and recruit them to success goals.

The Virtual Team: A virtual team is a workgroup of individuals that conducts most of the work of the team physically apart in a synchronous or asynchronous communication medium. Looking closely into several characteristics of the virtual team helps see the relationship between such teams and the general task of the organization. Effective communication naturally is vital in the creation of common goals and the work that follows to achieve them. Geographic, temporal, and organizational dispersion are added to diversity of origins and cultural differences.

Virtual teaming is a powerful structure to leverage knowledge-based work across time, space, cost-effectiveness, and coordination of work processes. It also helps ensure the projects are staffed with the diversity and competencies needed irrespective of geography, enhances innovation, and empowers team members with the authority and processes to work independently. Virtual teaming presents the leadership with a set of challenges, first of which is team formation.

Team formation is a process in and of itself. An effective leader would have to first identify the stakeholders of the projects. These could be the senior executive, the functional manager, suppliers, and finance. Establishing a team purpose is no less important in the formation process. A sense of purpose is critical to bind the group to a committed goal. Then there is the recruitment of the team members and the set up of the team infrastructure and resources, such as email, voice mail, and office space.

A kick-off meeting is of utmost importance. Team members have an opportunity to socialize and familiarize themselves with the new protocols and guidelines which are essential in order to avoid ambiguity. It is recommended to have explicit written communication and specifications to remove assumptions. Regular exchanges should be encouraged, such as weekly status reports for critical points of accountability. It is vital for team members to know that expectations are that the success of a task is the responsibility of all involved. Plans and schedules need to specify that all parties must be involved at some level of effort and availability. And the focus needs to switch from time spent to results. Delegation should include communicating well in advance the evaluation criteria to be used in order to clarify the intended results and outcomes. Expectations set repeatedly, followed by delivery of results that meet or exceed those expectations, help establish trust.

Like in any social unit that thrives on a common goal (reminiscent of the virtual team) and/or common heritage (family), trust becomes the backbone of the relationship. In order to maintain trust, leaders must understand the four pillars of trust: dependability, consistency, congruency (words and actions fit), the mutuality of shared risks and rewards. Research has shown that social interaction based on trust between team members has a significant effect on worker productivity. Teams, like family relationships, provide security that allows risk taking and independent action and will produce positive effects on work outcomes. It is the task of the leader to promote task-related interaction by promoting interdependence and reliance on one another for learning and development.

Research confirms that through 2005, 50% of international virtual teams will experience suboptimal performance because of inattention to cultural differences. It is our goal to help them improve their performance by increasing their awareness to the role their differences play in that important task. Leadership development, project management, and people-handling practices should all pay close attention to the diverse cultural backgrounds "live and kicking" in today's global organization. A shift in focus from differences as detrimental to performance to recruiting them towards performance improvement now becomes a differentiating point for businesses.

The article draws on the writer's experiences in her work in multi-cultural environments and includes sources such as Organizational Dynamics Journal and The Gartner Research Group.

Hanna Fogel is a trained Mediator who is also certified as an organizational consultant by the Philadelphia Institute of Corporate Therapy. She speaks internationally about the importance of cross-cultural communication and its effect on business performance. Ms. Fogel describes herself as "a psychologist that means business." She an be reached at: .