Friday, September 4, 2009

'Locals,' 'Cosmopolitans' and Other Keys to Creating Successful Global Teams

Global teams are like oceans: Depending on how they are navigated, they can link the world together or split it apart. When global teams work, they tap into a company's top talent, exploit local expertise, unite far-flung groups and ramp up worldwide production. When they don't, they are divisive, spark massive miscommunication and drive global projects into the ground.

"In any team, there are lots of barriers to effectively working together, and there are ways to make teams more effective through selection, through design, through leadership," says Wharton management professor Nancy Rothbard. "The challenges are really exacerbated in global teams where you have even greater potential barriers, especially when there are different cultural norms."

Working across international, cultural and organizational boundaries poses daunting challenges on a variety of levels. Time zone differences can make meetings difficult. Language and cultural differences sometimes lead to communication problems. And a variety of less obvious differences trip up global team members in ways they rarely expect.

Despite such difficulties, global teams -- in all forms -- are here to stay. Whether it's a small task force within a single company, a cross-border partnership or a multinational coalition of leaders spanning several organizations, global teams have become an essential element of modern business. "They're often a necessity," says Rothbard. "You may need those diverse cultural perspectives to solve a cultural problem.... We need to find ways to make these teams work effectively. We need them to get the work done as the world becomes a more global place."

When done right, global teams can be an asset, unlocking tremendous value for companies that use them. "Global teams are able to take advantage of people not being in the same place at the same time, in order to get the work done," says Batia Weisenfeld, a management professor at NYU's Stern School of Business. "Projects can be progressing 24 hours a day. You'll be doing software development in Silicon Valley and then the software testing is being done in India while those people [in California] are sleeping."

Global teams can also ratchet up creativity and innovation by tapping into unique skill sets and multiple points of view. Weisenfeld points to one New York advertising firm as an example. The firm's New York office developed what was supposed to be a worldwide advertising campaign. But the campaign probably wouldn't sit well culturally for Asian consumers, the company's Asia office advised. So team members in Asia tweaked the campaign to accommodate local tastes. In the process, they improved the campaign so much that headquarters ultimately replaced the original campaign with the Asian version.

Unlocking Value

Despite such potential, global teams pose challenges that must first be overcome.


One of the most common issues is time. When team members are scattered across several time zones, simply scheduling a meeting can be difficult.

Consultant Ana Reyes is a partner of New Worlds Enterprise LLP, lecturer in the Penn Organizational Dynamics Program and academic director for a program offered by Wharton's Aresty Institute for Executive Education called, "Leading Virtual Global Teams." Reyes once experienced a timing and communication snafu when working as a consultant for a large multinational corporation. The company, which had offices in several U.S., European and Asian locations, usually held global teleconferences in the morning New York time. Since team members in Asia attended the meetings in the evening, they usually used their personal phones at home. When it came to scheduling a meeting via videoconference, however, things became very complicated. Asian team members didn't have videoconferencing equipment at home, and discovered -- weeks, unfortunately, after their meeting was scheduled and the agenda was set -- that they couldn't use the video equipment in their office building because it was locked at night. "To get the video conferencing, they had to hire technology support and security for the building," Reyes says. In the end, the company decided it would be easier to just fly people to New York.

Organizations often assume that global team members are willing to meet when it's convenient for headquarters, says Catherine Mercer Bing, CEO of ITAP International, a Newtown, Pa.-based consulting firm that "works at the intersection of business and cultural issues." The unfortunate result for some team members: Every meeting takes place in the middle of the night or at the crack of dawn.


"It becomes [demotivating] for those team members who always have to be available at 4 a.m. or some other off-work hours," Bing says. Her suggestion: Start global conference calls by asking what time it is for everyone involved, to make everyone aware of other team members' situations. Also, change meeting times frequently so that everybody has a chance to attend a meeting during the day. "Rotate," she suggests. "It makes it fair. It makes team members feel more equitable."


Tackling cultural differences can be much more of a challenge. When global teams include more than one culture, team members carry unspoken assumptions that can lead to inadvertent misunderstandings. After all, the type of information people share and how they share it is culturally based, says Rothbard. "Hesitation in voice in one culture might signal discomfort with what is being shared. In another culture, it might just [mean they're] being deliberative. What people mean, and how [others] interpret what they mean, is very subtle. The speaker might have no idea that their words are being interpreted in a certain way."

Depending on a person's cultural background, fellow team members might seem to be speaking too loudly or softly, interrupting too much or being too reticent, demanding a ridiculous amount of information or being oddly ambiguous.


"Everybody is programmed by the cultures they grew up with," says Reyes. Studies have shown that people from Latin American, Middle Eastern and Mediterranean countries speak several decibels louder than other cultures. In many of these countries, interrupting is considered an acceptable way to exchange turns in conversation. "These communication patterns ... become annoyances that people can't figure out, so people often ignore [them]. And best practice is to talk about them."

Cultural differences also impact the way global teams communicate information to others outside of the team -- another possible source of conflict. Bing once worked with a global team with members in the U.S. and Spain. Consistently throughout the project, the Spanish team members would copy their superiors in emails about what the team was doing. Members of the U.S. team misinterpreted the move as attempts to undermine team efforts. "The U.S. [team members] were saying, 'You guys are trying to get us in trouble,'" Bing recalls. "But part of who gets copied is a cultural decision." The misperception ultimately caused so much conflict between members that the team missed a project deadline.

Cultural differences even creep into the technologies companies use, creating additional challenges for interaction, Reyes says. "Culture is really pattern-based ways of organizing space, time, human activity and the material environment. So technology -- any kind of technology, whether it's a robot or a technology system -- [involves] human practices that have been disembodied and put into a machine."

So what can managers and companies do to make global teams work better? Our experts offer a few ideas and suggestions:
  1. Try to meet at least once face-to-face
  2. Choose team members carefully
  3. Keep the team small if possible
  4. Consider cross-cultural training
  5. Be explicit upfront about how the team will operate
  6. Be conscious of time
  7. Consider how the team is organized
  8. Don't overload team members
  9. Give the team autonomy

Some ideas for companies that want to tap talent and utilize their expertise to advance product, services, and infrastructure. For the complete story go to http://knowledge.wharton.upenn.edu/article.cfm?articleid=2328