The Success Strategy for Building High-Performing Virtual Teams

The talk about building high-performing teams is ever-evolving but also ever-present. If you ever come across writings from, say, the early 2000s or even the late 90s, you'll notice that the pursuit of synergy and collective excellence is almost always central to the discourse of organisational success. And it does make a lot of sense even if the ecosystem you're currently in is exceptionally different.

For instance, a classic McKinsey Quarterly article from the year 1992 focuses on how vision is integral to the idea of high performance, and that it must be rational plus emotional — it must "excite and engage and frighten." This idea still holds its merit and will continue to do so across domains.

Or if you go through Gallup's opinion piece from 2009, you'll come across conflict resolution, task prioritization, commitment, diversity, and more as essential ingredients of effective teamwork. For sure, these team building and management principles for ushering in high performance are timeless. They address both the interpersonal dynamics and the practical aspects of working together.

But while the essence and foundation of high-performing teams remain super relevant, the fact that most teams are entailed to operate virtually or in hybrid setups introduces variables and challenges that are, in the truest sense, unprecedented. Prepared for in the past few years but still — unprecedented.

It's a new work mode that requires thought, consideration, planning, time, technology, and high leadership standards.

I'll borrow the definition from a, scholarly article from 2010 because it's excellent, but with a few modifications.

Virtual team is characterized by "small temporary groups of geographically, organizationally and/or time dispersed knowledge workers who coordinate [and accomplish] their work predominantly with electronic information and communication technologies."

Except that virtual teams are no longer "temporary" or "small." The COVID-19 pandemic drastically accelerated the adoption of remote and hybrid work. These teams can now encompass entire departments or even organizations, with members spanning diverse time zones and cultures.

With technological interventions and the rise of cloud-based collaboration platforms, in particular, the shift towards virtual working is a given alternative. Companies can use project management software, employee surveillance solutions, instant messaging apps, shared document repositories, and even virtual reality environments to foster collaboration.

And so, in 2024, virtual teams are not limited to, say, computer science professionals anymore. They encompass various industries and functions, from customer service and sales to marketing and finance. Even traditionally hands-on roles, such as engineering and manufacturing, are increasingly being adapted for virtual collaboration through the use of remote monitoring tools, augmented reality solutions, and digital simulations.

According to the 2023 State of Remote Work report by Buffer, 98% of employees prefer remote work. They would recommend it to friends and fellow workers. Likewise, Robert Half's recent survey reveals that 78% of the employees would prefer flexible work arrangements.

Indeed, the shift towards virtual teams is not just a fleeting trend but a fundamental transformation in how we approach work. That's because the benefits of a well setup, high-performing virtual team are multifaceted and far-reaching. For example:

Yes, one might debate that the traditional office environment fosters collaboration and creativity through in-person interactions. And it does, no doubt about that. But employees in a virtual setup are able to work in environments that are most conducive to their personal productivity—whether that's a quiet home office, a cozy coffee shop, or any space free from the usual office distractions.

As a matter of fact, data backs this up. For example, a Future Forum report outlines that workers in virtual teams report 29% higher productivity. They also report 53% greater ability to focus.

Cuing back to the Buffer report, 71% of the surveyed respondents claimed that setting work boundaries is critical. And 45% mentioned that it's easier to do that when they're working in a virtual setup. They can craft their day in a way that best suits their personal and professional needs. This autonomy allows them to manage their time more effectively and they can attend to personal commitments, whether it's spending time with family, pursuing hobbies, or even just taking a moment to recharge.

Such flexibility is, in fact, a strategic advantage for businesses as it can lead to a more satisfied, productive, and resilient workforce. And companies realise that Robert Half's analysis of the job ecosystem in the US highlights that there has been a 14% growth in hybrid job postings across different states between Q1 2023 and Q1 2024.

By transitioning to a virtual model, companies can substantially cut operational expenses. For instance, eliminating the need for a physical office means companies can save on rent, which is often one of the largest overheads for businesses. Additionally, there are savings on utilities such as electricity, water, and internet services, which no longer need to be provided on a large scale for an entire office.

Yes, they need to setup online collaboration systems, have tools for project management, collaboration, and employee monitoring in place, but these costs are typically far less than maintaining a physical office space. And not to forget the costs related to commuting allowances, office snacks, and onsite amenities. While companies should reinvest some of these savings into virtual perks — like home office stipends, wellness programs, or online team-building activities — the overall expenditure is generally lower.

There's also this flip side to managing virtual teams that keeps leaders divided.

We're discussing high-performing teams in this article, and so, it's utterly critical to address the productivity drop-off or the perception of leaders around the same. Distractions at home, inconsistent work environments, and the lack of direct supervision can lead to uneven productivity levels among team members.

A 2022 Microsoft study revealed that 85% of leaders are finding it challenging to build confidence around the fact that the employees are being productive in a hybrid setup. In this study:

• 87% of the employees reported that they are productive
• 12% of the leaders had full confidence that employees are productive

So, there's definitely this glaring disconnect and it's a fundamental issue and a roadblock in building high-performing teams.

For roles that have been well-defined and profiles that have super clear systems in place, the transition to a virtual or hybrid work environment can be relatively smooth. However, for many roles, especially those that are more fluid or collaborative by nature, a lack of clarity in expectations, goals, and responsibilities can become a significant barrier to success.

This clarity is tough to nurture. Once nurtured, it bears fruits for sure. For instance, the above-mentioned Microsoft study stresses that "clarity is key." Employees with such clarity are 3.95x likely to stay and 4.5x likely to be happy with their work.

As mentioned right at the start, the virtual work mode requires thought, consideration, planning, time, technology, and high leadership standards.

Assessing the unique needs and dynamics of a virtual team is the first step. Leaders must take into account the diverse backgrounds, work styles, and personal circumstances of their team members.

They must also weigh in on the business requirements. This balancing act requires leaders to be both empathetic and strategic.

In a virtual environment, where spontaneous adjustments are less feasible, meticulous planning becomes even more important.

• For one, leaders must anticipate potential challenges, such as time zone differences, communication delays, and varying levels of team member availability. They must incorporate these considerations into the project timeline.
• Second, the objectives that birth from these considerations should be "intellectual, rational, believable." The roadmap for achieving these objectives must accordingly be "quantified, defined, and measured."

Leaders must ensure that their teams have access to reliable, user-friendly tools that facilitate communication, collaboration, and effective project management.

Real-time collaboration

Tools like Slack, Microsoft Teams, etc., can prove immensely viable for instant company-wide communication, updates, and profound discussions. Slack, for example, allows the creation of groups and channels where discussions can be organised by project or topic. Specific team members can be invited to such groups.

Project management

Tools like Asana, Trello, or Jira are indispensable for keeping track of tasks, deadlines, and overall project progress. Atlassian, the developer of Jira, reported a 3x increase in paid seats in Q3 2024. Their cloud model is incredibly useful for fully remote companies. So is the story of most of the project management-specific solutions.

Productivity monitoring

Monitoring employee activity in a virtual environment can be challenging, but it's essential for maintaining productivity and ensuring that team members are staying on track and not slacking off.

A tool like CleverControl can power comprehensive and successful productivity monitoring by acting as a powerful virtual assistant. For example, it can facilitate:

• Real-time activity tracking, which is made possible by features such as screen recording, webcam monitoring, and more
• Face recognition for greater accountability, reduction in work and time theft
• Comprehensive reporting and analytics, which can relay productivity trends over time and improve performance reviews, workflow optimisations, and bottleneck identification

Building high-performing virtual teams is both an art and a science. Leaders must consider the objective and quantifiable business nuances. But at the same time, they must comprehend the emotional and empathetic facets of managing and supercharging dispersed teams.

For a start, they can focus on getting control over data. Implementing tools and technology that provide real-time access to accurate, actionable insights should be a top priority.