Managing the life cycle of virtual teams

In the fast-paced, technology-driven 21(st) century, virtual project teams represent a growing response to the need for high-quality. low-cost, rapid solutions to complex organizational problems. Virtual project teams enable organizations to pool the talents and expertise of employees (and non-employees) by eliminating time and space barriers. Yet, there is growing evidence that virtual teams fail more often than they succeed. To understand the factors that contribute to virtual team effectiveness, we tracked six virtual project teams from a large food distribution company from inception to project delivery. We identified factors at each stage of the virtual-team life cycle that affected team performance. These results provide specific examples of what managers can do, at various points in time, to increase a virtual team's chances to fully develop and contribute to firm performance.