CHAPTER 1

Setting the Stage

Hierarchy has dominated human society and culture since the dawn of time. Hierarchal structures often afford those in leadership great power and influence, and in some cases, such as in the military, such otherwise objectionable power may be necessary. However, in other situations, the pursuit of absolute leadership control can lead to potentially disastrous consequences. In business, historic models often necessitated the institutional platform of uninhibited hierarchal levels, leaving little room for those in the lower ranks to challenge given ideas or tasks. Of course, the word historic in this context could be considered irrelevant, or even conjectural, when one considers that even today, many companies still follow this traditional method of leadership.

In recent years, however, certain new developments in management have challenged the notion of uninhibited authoritative power. Among these are the proliferation of new leadership models and research, international diversity, the growing trend of employee empowerment, and the diffusion of communication technology. Technology has been the catalyst for new opportunities in both domestic and international business and has provided the opportunity for organizations to expand their search for talent and diversity in markets that were previously beyond their reach.

This global expansion has resulted in novel approaches to how people do business and even in how humans interact in modern society. The continuous development of communications technology has resulted in a shifting paradigm where individuals no longer need to be seated right across one another in an office. Now cross-functional teams can work together, even while members are in different buildings, cities, or continents. Working through electronic communications allows business leadership to manage virtual teams (VTs) that are geographically separate, but still easily accessible. It is quite possible that for some global teams, moving members to corporate headquarters could be quite cost-prohibitive and inefficient. Furthermore, technology has changed the way business people share knowledge, collaborate, and work together and has created a new skill set requirement in the global working landscape (Schwartz, Bersin, and Pelster 2014).

Certainly, there are clear advantages and benefits when working on a team where global and cultural diversities abound. However, there are also considerable challenges when operating in this manner. Increased global competition, the influence of technology, and the immediate access to global resources have driven massive changes in the way companies develop products, search for talent, and engage customers. Businesses operate in a dynamic, competitive, and ever-changing environment. An organization that resolves to avoid change and remain stagnant over time must accept the risk that it could very well become irrelevant, as other firms grow through change and the disruption of older methods. VTs provide businesses the opportunity to harvest unlimited, unique employee talents and dynamic, specific skills without limitations and across the ends of the earth.

Given the relative newness of VTs, research in this area of leadership spans only a few decades. Both managers and academics alike are still striving to understand the best ways to work through the many difficulties people face when working in separated environments. There are, however, certain areas of research that may support more effective leadership in virtual work. One example is the psychological contract, which has been demonstrated to be an important behavioral driver in traditional business teams. Furthermore, there are other factors, such as trust, culture, role clarity, issues related to geographic and time zone factors, and the manner and frequency of communications technology usage, that have also been shown to be important to those in VTs.

Given all of these potential complications, any tools that will help leaders of remote teams improve their effectiveness and increase their ability to lead in this environment can be helpful. This book is meant to serve as a practical guide to help leaders succeed and survive the minefield of VT management. To help elaborate each point, the book will follow the story of Mr. Ben Jonas, a fictional vice president of marketing, who has taken on a new job leading a global VT. While Ben is a fictional character, the problems he faces are very real. Each chapter will present a new issue for Ben and will provide a contextual view of each topic presented, interwoven with current academic and practical research findings, while providing helpful tips for today’s virtual leaders. The book will illustrate through the case study how Ben makes mistakes in his leadership, so that real-world leaders and readers won’t repeat them when it really matters.