Table of Content

Overview------------------------------------------------------------------------------------ 3

Why have VPM?---------------------------------------------------------------------------- 3

Challenges of VPM----------------------------------------------------------------------------------4

Virtual Project Management Tools----------------------------------------------------------------7

Overview

Project management is concerned with managing the resources and overall planning and coordination of a project from beginning to completion that meets the client’s requirements and ensuring completion on time, within budget and to required quality standards. “One of the more effective methods of organizing and tracking work is management by walking around” (Benett, n.d). Benette also gave an example of the simplest way is to walk into a team member’s office and ask “Hey, how’s it going?” However, “as a result of global competition, the computer age, and excessive travel expenses, many people now work in ‘virtual teams’ that transcend distance, time zones, and organizational boundaries” (Cantu, 2005). A virtual team is a collection of individuals operating from many different geographic locations or different organizations or work at different duration or length of time, all of whom are working to accomplish a common goal (Cantu 2005). The resolution to managing projects done by virtual teams is to visit project resources virtually rather than physically. It is called “management by flying around – except that travel takes place in cyberspace” (Benett, n.d). Simply put, “virtual project management (VPM) is the Information Age equivalent of management by walking around” (Benett, n.d).

Why have VPM?

“Because the WWW now contemporaneously places billions of pieces of potentially useful information at everyone’s fingertips, the need for business people to ‘physically’ be together in order to work no longer exists in many cases” (Managing and Leading Virtual Team Work, n.d). Virtual teams have changed the way to make working across continents and countries to be an easy, practical way to achieve superior results. People no longer need to be co-located, or in the same place in order to work together. Any business today that wishes to remain competitive tomorrow should be thinking about utilizing virtual teams. Virtual teams let you flexibly use the intellectual and skill resources of just about anyone, anywhere while minimizing the need for costly travel, hosting and meeting expenses. These modes of work share a need for project management tools that enable communication and coordination at a distance. “Virtual project management is the system by which virtual teams collaborate for a finite period of time towards a specific goal” (Rolfes, n.d).

Nowadays, many virtual project management software are available for purchase. Project Management software adds value by facilitating the administrative tasks associated with teamwork, from schedule production and cost estimation to critical path analysis (Benette, n.d). It is a tool that gives you “complete control over every aspect of a project” (Virtual Project Manager). It helps to link, manage, and organize. It can link staff and projects to organizations and also link staff to projects. It manages project resources, tasks, bugs, releases and basic reporting. It organizes all projects into different areas, and ensures projects are completed on time (Project Management Software, n.d).

Later in this paper, the challenges and benefits of virtual project management will be discussed. In addition, the communication tools and techniques for virtual project management and finally the management tips will also be addressed.

Challenges of VPM

As companies expand and grow, they are faced with challenges of managing teams that are distributed throughout the country and the world. Virtual teams are becoming more popular, but as the use of virtually distributed teams increase, the management of these teams becomes more difficult. Some examples of challenges management face in leading virtual teams include the lack of accountability, absenteeism, low individual commitment and increased slacking. By not having the team together, it makes it easier for some to not participate or carry their share of the work. As a result the project may not get done on time or within budget and ultimately the employees could lose their motivation.

One of the most common challenges associated with virtual project management is communication. Managers of virtual teams, as well as the employees themselves have to determine the best form communication that works best. This can be one of the biggest challenges in a virtual project management environment. Some may respond better communicating over the phone while others prefer email. Managers will have to determine how to communicate with each of their team members in order to achieve the most productivity.

In an article recently published in Computer World, results of a survey performed by The Concours Group and VitalSmarts IT were discussed. The survey was designed to identify the causes of IT project failure. According to the article, the study was distributed globally and involved more than 1,000 executives and project management professionals. “The research suggests that over 85% of project failures is silence” (Scott, 2007). “Initiatives are derailed when people are unwilling or unable to have conversations about the problems they see” (Scott, 2007). This survey was not geared towards virtual project managers, but it can easily be determined that these conversations which the article refers to are much more difficult to have in a virtual team environment.

Additionally, the lack of understanding due to the forms of communication may create challenges in virtual teams. Because most communicating is done through email, chat rooms, or web discussion groups, the perception of the messages may be perceived differently by different individuals. As a result, project may take longer because more time is spent clarify misunderstandings that are caused through communication barriers.

Another challenge of using virtual teams is the reduction in knowledge that individual workers possess and share though personal relationships. When teams are centrally located it becomes such an environment that everyone knows who has knowledge in certain areas and employees are more apt to learn from each other. By being distributed and not working closely together, the knowledge sharing becomes significantly lower.

Finally, one of the biggest challenges of virtual project management is outsourcing. More and more companies are outsourcing IT projects in order to cut costs. However, the difficulties of managing projects in this environment are high. When teams are globally distributed the teams are never working at the same time due to members being located in different time zones. As a result, if an issue arises that needs immediate attention by another team member who is located on the other side of the globe, it inevitably will have to wait until they are at work. Any cultural changes are difficult and in most cases must lead to a change in the "corporate culture" that forms the basis of all employees' work processes and habits. Adapting to these different changes might cost companies huge amounts of hidden costs, which include the cost of selecting a vendor and contracting, the cost of transition after outsourcing, the cost of layoffs, the cost of changing the organizational culture, the cost of ramping up, the cost of managing the effort, and the cost of managing an offshore contract (Mbarika, Sankar & Xue, 2005).

These are just a few of the many challenges that surface with project management and virtual teams. The key challenge is that of communication, if the managers and team can learn and develop communication methods to best suit their needs they will be more productive and successful.

Virtual Project Management Tools :

Virtual Project Management (VPM) is the Information Age equivalent of management by walking around…The rise of the Internet and development of collaborative software have instilled a new dimension into this project management.” (Virtual Project Management, 2004). Effectively managed virtual projects overcome geographic distances, cultural diversities, and time zone disparities to make the new global workplace a competitive advantage instead of a barrier (Goncalves, n.d.). It becomes very critical that the organizations identify the technical tools used in the workflow structure, select the best practices for managing virtual resources and handling uncertainty in virtual project management.

Some of the many industries in which virtual project management is utilized are software development, web design, financial/banking services, marketing, hosting services, health services, IT services, construction companies, communications companies, military etc. VPM tools and techniques are used by the top-level managers, functional managers, supervisors, and team leaders. In VPM environment, employees must be able to work together productively even when they are in different facilities, cities, or continents.

The below figure shows how the project teams get integrated and share reports in the process of delivering final product/service to the customers. (From VPMi – www.vcsonline.com)

Virtual teams require the right tools to share information. In general, organizations use tools like E-mail, Outlook scheduling, Documentum for content management and videoconferencing to keep projects going. But as the number of projects increased, and the number of different organizations go higher, project management software becomes the necessity (Gaspar, 2001). In addition, the increase in outsourcing at a regular pace has certainly made many software available in the market providing VPM solutions. Some of the noteworthy virtual project management software providers are eProject, Tenrox, Virtual Communication Services, ProWorkflow, @view, EasyProject, QuickBase, OpenAir Complete, @task, and WorkZone. Here, eProject, EasyProject and WorkZone need to be installed at the user site, while most of the other software provide hosting solutions.

Taking example of eProject, the software offers enhanced project visibility, optimized resource utilization, alignment of projects with business strategy, forecasting, connecting team members, centralized project requests, and efficiently prioritized projects. eProject provides innovative, web-based project portfolio management solutions to over 600 companies spanning the globe (Company Overview, 2007).

Tenrox-Project Workforce Management has served over 800 organizations in 50 countries. The functionalities that this tool provides mainly are: tracking, managing, and accounting for decentralized teams collaborating on projects in different places. It also supports multiple platforms (Windows, Linux, Mac, Solaris, Unix), multiple databases (Oracle, MS Sql, Mysql), and multiple browsers (IE, Firefox, Safari) making the software an easy to use interface.

Majority of these software focuses on providing team member accountability, productivity gain, centralized documentation, manager visibility (i.e. real time visibility across all projects, tasks, ability to recognize problems early and effectively), and executive insight. While evaluating VPM software for the deployment purpose, aspect of security should be taken very seriously. Secure Sockets Layer protocol should be implemented to encrypt the company data and personal information. The organizations should be able to assign their employees access levels and rights, user id and password, scope control in order to maintain advanced security framework. In addition, the data should be stored on a CD and should be archived at the user sites as well.

The above chart shows how the Delivery Process Status of the particular Project.

The above chart shows how the reports are generated.

In researching the best advice gained from real-world experience relating to the management of virtual team many key ideas are highlighted. The following tips have been aggregated to help managers optimize the management of their teams:

· Create a Presence

· Establish Rules

· Trust is Key

· Respect Culture

· Promote Continuity

· Leverage Technology

· Embrace Routine

Presence relates to creating to simulating the benefits that are normally gained through face-to-face interaction. These benefits are quick turn around to questions, the ability to brainstorm interactively and effective communication. In a distributed setting these interactions are difficult. It is highly recommended that different forms of communication be used to replicate these such as instant messenger, video conferencing whiteboards, and remote desktops in addition to email and phone calls.

The second tip is to set ground rules right at the beginning of a project. It is necessary to establish these rules explicitly because unlike a face-to-face environment the informal clarification is not possible. It is necessary to clearly define the direction and roles of all members.

The idea of trust is very important in virtual teams. Because of this experts recommend video conferencing to establish a bond among the team. Most recommend an in-person meeting at the beginning of the project and say that it is good to budget for this right off the bat. This is also important so team members feel engaged and have less a tendency to “disappear”.

Because of the geographical difference, it is clear that cultural differences will arise as well. It is a good idea to use the time and resources that would normally go into traveling to researching the cultural differences of the members involved and how that will affect the team. A hierarchal culture versus a more individualist one will have very different ways of doing business.

Continuity is key when working with multiple people regardless of location. It is especially important when working in virtual teams. An easy way of dealing with this is using software to track changes and that allows for versions to be created. This enables everyone to be on the same page throughout the life of a project.

As has been mentioned several times it is important to use technology. It is important that the right technology is used correctly. In respect to virtual project management focus on standardized portable devices that integrate well.

The final tip to managing effect virtual teams is to instill routine. It is important teammates feel involved in engaged in the project. Make it a priority to schedule regular meetings to keep the team engaged. Because time zones may differ between employees rotate the meeting times so the burden is shared equally.

References:

Benett, Gordon, (n.d), “Working Together, Apart”, retrieved on April 27^th, 2007 from

http://www.intranetjournal.com/features/idm0398-pm1.shtml

Cantu, Cynthia, (n.d), “Virtual Team”, retrieved on April 28^th, 2007 from

http://www.workteams.unt.edu/literature/paper-ccantu.html

Managing and Leading Virtual Team Work, (n.d), Retrieved on April 28^th, 2007 from

http://www.virtualhrcenter.com/SkillDesc/SkillSoft/series_team_220.htm

Rolfes, Mike, (n.d), “Virtual Project Management”, Retrieved on April 28^th, 2007 from

http://www.umsl.edu/~sauter/analysis/488_f01_papers/rolfes.htm#Abs

Virtual Project Manager, (n.d), Retrieved on April 27^th, 2007 from http://www.virtual-

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Project Management Software, (n.d), Retrieved on April 27^th, 2007 from

http://www.vp.net.nz/

Essential tips for managing a virtual team. Retrieved on May 1, 2007 from http://www.microsoft.com/canada/midsizebusiness/businessvalue/local/virtualteams.mspx

How to Start Your Remote Project Team Off on the Right Foot. Retrieved on May 1, 2007 from http://webworkerdaily.com/2007/04/06/how-to-start-your-remote-project-team-off-on-the-right-foot/

MIT team reports tips for successful virtual collaborations. Retrieved on May 1, 2007 from http://web.mit.edu/newsoffice/2001/vcollaboration.html

Kaser, D. Vituality. Information Today. 24 (3), 14.

Mbarika, V., Sankar, C. & Xue, Y. (2004/2005). Information Technology Outsourcing and Virtual Team. The Journal of Computer Information Systems. 45 (2), 9-16.

Scott, R. (2007). Silence Is Deadly. Computerworld. 41 (6), 28

Smith, T. Keeping Distributed Teams Connected. Machine Design 78 (16), 50.

http://www.eproject.com/customers/index.htm

http://www.pmi.org.tw/bkstore/bk_a17.asp