A virtual team (also known as a geographically dispersed team or GDT) is a group of individuals who work across time, space and organizational boundaries with links strengthened by webs of communication technology. Members of virtual teams communicate electronically and may never meet face-to-face. Virtual teams are made possible by a proliferation of fiber optic technology that has significantly increased the scope of off-site communication. Virtual teams allow companies to procure the best talent without geographical restrictions.
According to Hambley, O’Neil, & Kline (2007), "virtual teams require new ways of working across boundaries through systems, processes, technology, and people, which require effective leadership...despite the widespread increase in virtual teamwork, there has been relatively little focus on the role of virtual team leaders".
There are three main aspects to a virtual team - purpose, people and links. While purpose is an important aspect for all organizations, it's the most critical aspect for virtual teams; purpose is what holds a virtual team together. Virtual teams do not have hierarchy or any other common structures because they may not be from same organization, and purpose here brings and holds the team together. Purpose is generally translated into certain action steps for people to work on with a defined structure consisting of common goals, individual tasks and results
Advantages of virtual teams
Ø Increased productivity: Virtual teams often see an increase in productivity because more personal flexibility is achieved, commute time is reduced, and work is not limited by the traditional 9-5 work day schedule. In turn, the company never sees an off hour. The team on the other side of the globe simply picks up where the prior team left off. This approach is commonly referred to as “Follow the Sun Approach”. This advantage can translate to a much faster time to market for new products and technology.
Ø Extended market opportunity: This is a major benefit of geographically dispersed teams due to direct access to different market opportunities. With work teams located in different parts of the globe, organizations are able to establish their presence with customers worldwide. This also gives small business owners the ability to compete on a global scale as well without being limited to a particular customer base.
Ø Knowledge transfer: This is one of the most important benefits of a virtual team; utilizing people with different types of knowledge spread out across the globe can be very beneficial to any organization. Online meetings, remote computer access, wireless technology, and conferencing systems offer a way for participants to join a complex discussion from anywhere in the world. This benefit can enable most companies to compete on a global scale.
Disadvantages of virtual teams
Ø Communication deficiency: The biggest disadvantage that any virtual team can suffer from is the lack of efficiency in communication, partly due to constraints in virtual communication mediums. This is also primarily due to the fact that humans communicate better when they are able to communicate with their body language. Inevitably, virtual teams may face obstacles due to restrictions of the Internet which in turn may lead to incorrect assumptions if a message is not laid out clearly. Failure to properly communicate and clearly address messages or emails could to lead to frustration and eventually failure
Ø Poor leadership and management: Poor leadership can result in the failure of any team, whether virtual or not; however, it becomes a much more prominent problem in virtual teams. Messages must be sent across accurately and clearly. Inability to effectively communicate to members of the team can all greatly affect a project.
Ø Incompetent team members: Virtual teams should only consist of competent and experienced team members due to the distance factor which can overtly affect the timing and completion date of a project. Projects are more likely to fail if the team consists of individuals who are lazy or lack sufficient knowledge to complete their assigned tasks. It only takes one incompetent team member to have a negative effect on the rest of the team.
