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AIM STRATEGIES ®
                VIRTUAL TEAMS
               TRENDS REPORT :

CHALLENGES OF VIRTUAL TEAMS




   Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
Table of Contents




         •       Report Background
         •       Key Findings
         •       Demographics
         •       Future of Virtual Teams
         •       Upcoming Events
         •       About AIM Strategies                                       ®




Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
Report Background

The lessons learned from past clients inspired us to
submit a book proposal in August of 2009 regarding
difficulties and techniques in managing a virtual
team. A month later the proposal was accepted
and we began interviewing virtual team members
and leaders to collect their stories for the book.

The interviews were conducted to enhance our
knowledge of virtual teams and the challenges that
they face in preparation for writing our upcoming
book A Manager’s Guide to Virtual Teams.

At the completion of the interviews we began an
analysis of the trends summarized in this report.
Their stories confirmed our experiences and our
findings from our past client work. However, we
also learned some surprising new trends around
how virtual teams communicate and the conflicts
and challenges they face.


                 Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
Report Background
               Data Gathering                                                                             Data Analysis

• Use qualitative data as it provides a                                        • Label the 150 interviews with a set
 richer amount of information
                                                                                of common key words and concepts
                                                                                such as “misunderstanding”, in an
• Each interview was approximately
                                                                                electronic format
    1 hour, and limited to 2 hours
                                                                               • Use a custom computer program
•   19 open-ended questions were                                                developed onsite utilizing Extensible
                                                                                Markup Language (XML) to
    asked in a semi-structured format that
                                                                                automatically categorize the data
    allowed for a natural flow of
    conversation
                                                                               • Calculate statistics regarding how
                                                                                many interviewees mentioned a
• Interview topics include:
                                                                                particular issue or concept
 communication, conflict, trust,
 accountability, cross-cultural
 communication, team set up, lessons
 learned, and the future of virtual teams


                   Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
Key Findings
                              Trend 1
Top Challenges – Communicating when every time zone is your time zone

                   With teammates located worldwide, members observed fewer
                   established time boundaries and often worked around the clock
                   (52%). Coordinating across time zones caused communication
                   problems (44%) while another obstacle was excessive multitasking
                   (18%) during conversations.


                             Trend 2
      Building a Human Connection while replacing hallway chats

                   Even in the virtual environment, occasional face-to-face
                   communication was found to be vital for certain aspects of team
                   interaction, such as team set-up (24%) and conflict resolution (27%).
                   On the other hand, one aspect of building relationships, through
                   trust, did not require face to face communication as trust was
                   reportedly enhanced through regular contact with other team
                   members (63%), among other techniques discussed.

           Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
Key Findings
                                    Trend 3
 Conflict – When conflict arises, VT members do not hide behind their screen

The sources of conflicts differ from on-site teams, as the lack of visual
cues cause an increase in miscommunication (33%) or inconsistent
expectations (21%). Virtual team members used a variety of resolution
 styles such as using the phone (40%) and mediation (18%).
As easy as it is to hide behind a screen and ignore phone calls and emails
when a conflict arises, only 7% of respondents used avoidance techniques.


                                    Trend 4
                Cross Cultural Communication – Lost in Translation

Cross cultural elements play a role in the effectiveness of virtual teams.
The most common communication barrier found stemmed from
misunderstandings related to the use of English (47%) which included
both varying interpretations of the same words in different cultures
as well as differences in overall competency levels.


                  Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
Key Findings
                                Trend 5
Speed of virtual team delivery – slow and steady does not win the race

                           The speed of communication and timelines of deliverables vary
                           significantly as compared to on-site teams. Virtual teams
                           experience shorter deadlines (17%) often on a weekly or even
                           daily basis, as well as more frequent checkpoints in between
                           deadlines. Ninety percent (90%) of teams met “all hands” once
                           per week, while some met team-wide three or more times per
                           week (8%).




          Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
Future of Virtual Teams
Looking toward the future, the global economy is fundamentally transforming the way
business is conducted. According to 70% of respondents, virtual teams will increase in
prevalence and will be considered the norm (9%) in conducting business.
This trend will be experienced in part due to increased cost effectiveness
and the pressure of globalization. As this shift occurs, new technologies
will improve the performance of virtual teams (47%).
In addition, new techniques will be developed to overcome the unique
challenges encountered by virtual teams (11%), as more business
leaders become exposed to this type of environment.

                                              The Future of Virtual Teams

               Increasingly Prevelant                                                                   70%
                           Technology                                                 47%
                               Improving                 11%
                               Flexibility              9%
              Increasingly Important                  6%
                           Outsourcing              4%
                  Decreased Quality               2%

                                             0%             20%             40%             60%            80%            100%


                  Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
Upcoming Events

Book Campaign             Date, Location, NY




 Presentation             Date, Location, NY




Book Publishing           Date, Location, NY




                Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
Stay Connected
VT Book this August                       www.amazon.com/Managers-Guide-Virtual-Teams



VT Trends Report                   www.aim-strategies.com/AIMVTTrendsReport.pdf



AIM Company Website                          www.aim-strategies.com



                             Email: yael@aim-strategies.com
                             Linked In: www.linkedin.com/in/yaelzofi
                             Facebook: www.facebook.com/yael.zofi
                             www.facebook.com/AIMStrategies
                             Twitter: http://twitter.com/#!/yaelzofi



          Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
About AIM Strategies®

AIM Strategies® Applied Innovative Management® is a results-driven Human Capital
Consulting firm specializing in the areas of: Virtual Team Training, Cross Cultural
Coaching, Team Building Facilitation, Global Leadership Development, and general
Transformational Change Services. Known for an innovative approach, which clearly links
with the client’s business strategy, AIM Strategies® can help you to develop global leaders
with the skills necessary for business success in the 21st Century. We are confident that
the solutions we develop fit your needs and culture. Please visit www.aim-strategies.com
to learn more about how our services unlock the people potential of your organization.




                  Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com

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Virtual Teams Report

  • 1. AIM STRATEGIES ® VIRTUAL TEAMS TRENDS REPORT : CHALLENGES OF VIRTUAL TEAMS Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
  • 2. Table of Contents • Report Background • Key Findings • Demographics • Future of Virtual Teams • Upcoming Events • About AIM Strategies ® Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
  • 3. Report Background The lessons learned from past clients inspired us to submit a book proposal in August of 2009 regarding difficulties and techniques in managing a virtual team. A month later the proposal was accepted and we began interviewing virtual team members and leaders to collect their stories for the book. The interviews were conducted to enhance our knowledge of virtual teams and the challenges that they face in preparation for writing our upcoming book A Manager’s Guide to Virtual Teams. At the completion of the interviews we began an analysis of the trends summarized in this report. Their stories confirmed our experiences and our findings from our past client work. However, we also learned some surprising new trends around how virtual teams communicate and the conflicts and challenges they face. Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
  • 4. Report Background Data Gathering Data Analysis • Use qualitative data as it provides a • Label the 150 interviews with a set richer amount of information of common key words and concepts such as “misunderstanding”, in an • Each interview was approximately electronic format 1 hour, and limited to 2 hours • Use a custom computer program • 19 open-ended questions were developed onsite utilizing Extensible Markup Language (XML) to asked in a semi-structured format that automatically categorize the data allowed for a natural flow of conversation • Calculate statistics regarding how many interviewees mentioned a • Interview topics include: particular issue or concept communication, conflict, trust, accountability, cross-cultural communication, team set up, lessons learned, and the future of virtual teams Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
  • 5. Key Findings Trend 1 Top Challenges – Communicating when every time zone is your time zone With teammates located worldwide, members observed fewer established time boundaries and often worked around the clock (52%). Coordinating across time zones caused communication problems (44%) while another obstacle was excessive multitasking (18%) during conversations. Trend 2 Building a Human Connection while replacing hallway chats Even in the virtual environment, occasional face-to-face communication was found to be vital for certain aspects of team interaction, such as team set-up (24%) and conflict resolution (27%). On the other hand, one aspect of building relationships, through trust, did not require face to face communication as trust was reportedly enhanced through regular contact with other team members (63%), among other techniques discussed. Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
  • 6. Key Findings Trend 3 Conflict – When conflict arises, VT members do not hide behind their screen The sources of conflicts differ from on-site teams, as the lack of visual cues cause an increase in miscommunication (33%) or inconsistent expectations (21%). Virtual team members used a variety of resolution styles such as using the phone (40%) and mediation (18%). As easy as it is to hide behind a screen and ignore phone calls and emails when a conflict arises, only 7% of respondents used avoidance techniques. Trend 4 Cross Cultural Communication – Lost in Translation Cross cultural elements play a role in the effectiveness of virtual teams. The most common communication barrier found stemmed from misunderstandings related to the use of English (47%) which included both varying interpretations of the same words in different cultures as well as differences in overall competency levels. Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
  • 7. Key Findings Trend 5 Speed of virtual team delivery – slow and steady does not win the race The speed of communication and timelines of deliverables vary significantly as compared to on-site teams. Virtual teams experience shorter deadlines (17%) often on a weekly or even daily basis, as well as more frequent checkpoints in between deadlines. Ninety percent (90%) of teams met “all hands” once per week, while some met team-wide three or more times per week (8%). Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
  • 8. Future of Virtual Teams Looking toward the future, the global economy is fundamentally transforming the way business is conducted. According to 70% of respondents, virtual teams will increase in prevalence and will be considered the norm (9%) in conducting business. This trend will be experienced in part due to increased cost effectiveness and the pressure of globalization. As this shift occurs, new technologies will improve the performance of virtual teams (47%). In addition, new techniques will be developed to overcome the unique challenges encountered by virtual teams (11%), as more business leaders become exposed to this type of environment. The Future of Virtual Teams Increasingly Prevelant 70% Technology 47% Improving 11% Flexibility 9% Increasingly Important 6% Outsourcing 4% Decreased Quality 2% 0% 20% 40% 60% 80% 100% Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
  • 9. Upcoming Events Book Campaign Date, Location, NY Presentation Date, Location, NY Book Publishing Date, Location, NY Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
  • 10. Stay Connected VT Book this August www.amazon.com/Managers-Guide-Virtual-Teams VT Trends Report www.aim-strategies.com/AIMVTTrendsReport.pdf AIM Company Website www.aim-strategies.com Email: yael@aim-strategies.com Linked In: www.linkedin.com/in/yaelzofi Facebook: www.facebook.com/yael.zofi www.facebook.com/AIMStrategies Twitter: http://twitter.com/#!/yaelzofi Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
  • 11. About AIM Strategies® AIM Strategies® Applied Innovative Management® is a results-driven Human Capital Consulting firm specializing in the areas of: Virtual Team Training, Cross Cultural Coaching, Team Building Facilitation, Global Leadership Development, and general Transformational Change Services. Known for an innovative approach, which clearly links with the client’s business strategy, AIM Strategies® can help you to develop global leaders with the skills necessary for business success in the 21st Century. We are confident that the solutions we develop fit your needs and culture. Please visit www.aim-strategies.com to learn more about how our services unlock the people potential of your organization. Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com
  • 12. Copyright© 2010 AIM Strategies® Applied Innovative Management®. All rights reserved. www.aim-strategies.com