Virtual Team Virtues (Post 1 of 5)

Virtual-Teams“A 2005 Deloitte study of IT projects outsourced to virtual work groups found that 66 percent failed to satisfy the clients’ requirements,” reports Keith Ferrazzi in the Harvard Business Review (12/14) article “Getting Virtual Teams Right.”

Ferrazzi, a principal with the California-based business consulting firm Ferrazzi Greenlight and author of Never Eat Alone, also cites a 2009 study of 80 global software teams that found that “well managed dispersed teams can actually outperform those that share office space,” as well as an Aon Consulting report that noted “using virtual teams can improve employee productivity, with some organizations seeing gains of up to 43 percent.”

I’m a strong advocate of virtual work groups, and believe the discrepancy behind these vastly different study results can be traced to those two little words “well managed.” Getting it right when working remotely requires strong management and other elements—the right team, the right leadership, the right touchpoints and the right technology—which Ferrazzi’s HBR article details. I will share the highlights with you in my next four posts.

Today, though, I would like to touch on the myriad customer and employee advantages of virtual teams, which we use extensively. When Intertech IT consultants work remotely (typically from their homes), customers benefit from:

  • Access to talent and skill sets that may not be currently available in their market, particularly if the customer is located in rural locations.
  • A deep bench. While the client may be hiring a specific team, a firm like Intertech has many other resources at its disposal beyond a specific team. Our consultants can (and do) bounce ideas off each other throughout our firm, relying on the same communications technology that tethers them to clients, without any added cost for customers.
  • Demonstration of best practices. It’s common that our clients don’t have strong development or agile practices. Using one of our virtual teams gives them an infusion of best practices that may be difficult to create locally on the client site.  We know this is powerful because clients, after experiencing how we deliver projects remotely, have adopted our processes or asked that we help them implement those processes internally.
  • Free technology and “workspaces.” Computers, software, workstations all represent significant costs. A typical professional laptop costs $2,000 and potentially $1,000’s in software cost.  When we work remotely, those costs don’t exist for customers.
  • Community goodwill. Some of our clients are located in remote areas with limited local IT resources. Due to their remote locations it’s hard to recruit employees, which can result in “talent poaching” from the few local businesses that may employ IT professionals. This can cause a fair amount of embarrassment, uncomfortable moments or even hostility in small towns where people know each other and frequently are in similar social or civic circles.

For employees, the benefits are simple and enormous: working remotely gives them the ability to manage their work and personal lives more flexibly. The advantages of a flexible work life should not be minimized, especially when your workforce includes a large percentage of millennials.

In case you’ve been sleeping, you probably already know that millennials soon will outnumber baby boomers in the United States and are on the cusp of representing the majority of the workforce. As was noted by Sarah Sladek, CEO and founder of XYZ University and author of the book, Knowing Y: Engage the Next Generation Now, “Organizations are doomed to fail if they cling to old-guard ideas that motivated baby boomers.”

Clinging to the notion that employees must be located in an office where they can be observed like babies in a maternity ward is as antiquated as the tradition of proud fathers puffing cigars in the hospital waiting room. Remote or virtual work teams are not the future, they are the present, and my next post will share Ferrazzi’s thoughts—and my own—on the importance of having the right people in place for an effective virtual team.

My Upcoming Talk at Breakfast with Values Champions

One-DreamOn April 21st, I’ve been asked to speak at the “Breakfast with Values Champions.”

Held at the College of St. Catherine in St. Paul, it’s “a learning community for forwardthinking leaders and organizations interested in expanding their capacity to  “be who they say they are.” You can expect to engage with other leaders committed to aligning their values and purpose with all areas of how they do business: developing your executive team, strategy that is broadly owned, leading change, employee engagement, measures and metrics, engagement, onboarding and more.

Values Champions includes distinguished leaders of Fortune 500 companies, authentic non-profit leaders and entrepreneurs committed to building organizations that value people as much as profit. They will share how they align values with policies and make tough decisions while staying true to their stated mission, vision and organizational values. ”

To learn more or register, go to:  https://valuesbreakfast.eventbrite.com

U.S. Business in Cuba (Part 2 of 2)

Cuba-Flag

I was interested to learn Cuba has a “surprisingly robust biotechnology industry that makes a number of vaccines not now available in the United States,” along with boasting one of the largest deposits of nickel in the world. Sounds like the potential for importing may be as interesting to explore as any new Cuban exporting opportunities.

One industry sure to get a boost from renewed U.S.-Cuban relations is tourism. Groups that run tours to Cuba under the old restrictions are reportedly being inundated with calls from eager U.S. travelers who want to be among the first to see the country only 90 miles from Florida. About three million people visit Cuba each year; many of them Canadians who are lured by appealing discount tour packages.

The Obama administration has announced plans to create a general travel license that tour operators are hoping will reduce bureaucracy and allow more Americans to visit. Others have begun pushing for complete abolition of all travel restrictions. Conservative estimates from the travel industry predict an increase of up to one million additional U.S. visitors to Cuba next year.

U.S. Business in Cuba (Part 1 of 2)

Cuba-FlagNothing seems to incite a capitalistic feeding frenzy quite as fast as the scent of a potential new market. I’m referring to President Obama’s year-end announcement about restoring full diplomatic relations with Cuba. Since then, the media has been bursting with news about U.S. companies—from Iowa-based Caterpillar to global PepsiCo—that are developing strategies to introduce their products and services to the Cuban market.

While I’m the first to applaud entrepreneurial zeal, a bit of strategic reflection wouldn’t hurt either. I visited Cuba about 15 years ago, as part of a government-approved “cultural learning” group. It was fascinating to see the impeccably maintained mid-century jalopies, to learn about Cuban culture (those highly touted cigars, for example, truly deserve their stellar reputation!) and to see a part of the world so close to us and yet, for most, completely inaccessible.

While American companies are noticeably absent in Cuba, other countries appeared to have established a considerable business bulwark there.  U.S. company leaders who imagine a sleeping Cuban giant, just waiting for American consumer products and services to flood their country, may be in for a rude awakening.

Notes Kirby Jones, founder of Alamar Associates, which has advised companies on doing business in Cuba since 1974, “It’s just not going to be like other regions where you see a McDonald’s on every corner.”

Jones opined in a recent New York Times article on the topic that while there may be robust opportunities for some companies, especially those selling products or goods viewed as enhancing Cuba’s domestic production (good news for Caterpillar!), other companies could get the cold shoulder (Pepsi perhaps?).

Giving the Gift of Health (Post 3 of 3)

Happy-EmployeeBeing innovative to create more four-way wins—integration between your roles at work, home, community and self—involves six elements:

1. Being results focused

2. Resolving conflicts

3. Not being afraid to challenge the status quo.

4. Looking for new ways of doing things.

5. Being creative with change

6. Creating an innovation culture

If that list sounds daunting, Friedman provides tips and exercises to make them manageable. Scenario exercises help to focus on results, for example. They involve identifying a specific goal you want to achieve and then listing three alternative methods for getting there, including the resources you’ll need and the challenges you’ll face. He also recommends experimenting with new patterns of behavior (how and when you do things) and even crowd sourcing as a way to see new ways of doing things.

At Intertech, we’ve woven innovation and new ways of doing things into the very fabric of how we operate. For example, our annual FedEx Day gives employees the freedom to design a new product or process that they believe will benefit the firm as a whole. We also host an annual employee town hall, which provides opportunities for brainstorming and recommending new ways of doing things.

Personally, I spend time away every winter. The time away from the daily routine (and Minnesota winter!) is a chance to more deeply connect with my wife and kids. It’s also important time for me to reflect on every aspect of my life and to consider new ways of doing things or how to stop doing things.

I also advocate reading widely, attending well-chosen leadership development conferences, and participating in leadership networks. All of these activities help me to keep my mind open to new ideas and new ways of doing things.

According to Friedman, “leading the life you want is a craft. As with music, writing, dance or any athletic endeavor, you can always get better at it by practicing.”