Making Virtual Teams Work Virtual Teams Project Team Chris Parker Parsons Energy & Chemicals Group Chris: As we focus on the business strategies for 2001 and beyond, we continue to look to technology to provide the competitive edge. But technology will only provide part of the answer. Our industry is still about people and how they work together. People represent the greatest resource of our companies. We should never confuse information with experience. To receive information at ever increasing rates is inevitable, but to handle the information in a productive way is not. There are new and exciting technology breakthroughs everyday, but to apply and leverage them to gain a competitive advantage, we must understand the soft issues, those issues that are the true fabric of execution, those issues that will allow our project teams to seize the opportunities, those issues that will provide the foundation for a revolution in work processes and project execution methods. Failure to properly do this will result in ever increasing expenditures on technology without a commensurate gain in productivity. If there is any one common theme in today’s business world, it might well be “doing more with less”. I am sure everyone here today is faced with finding ways to improve efficiency, reduce schedules, work with stretched resources and meet more and more demanding project requirements. I am also sure that everyone here has been faced with a deadline that is suddenly upon you and you have to make something happen immediately. Well that is pretty much the case for me and this presentation. Time has just gotten away and now I have to “make something happen”. I am going to call on my team and in a virtual setting, using a simulated Latitude Meeting Place environment, attempt to finalize this presentation and be prepared for the implementation session.

Making Virtual Teams Work Virtual Teams Project Team Chris Parker Parsons Energy & Chemicals Group Chris: You can hear some of the team is already connected, so in just a few seconds we should be ready to go and see if everyone is there.

Start as soon as quite Chris: Ok everyone, we’ve discussed the basic framework and everyone should be prepared. Let’s be focused and efficient. Could I please have a roll call.

Discovering and responding to Research Mandate Discovering and responding to the issues and challenges associated with the implementation and execution of virtual teams in the EPC industry. Chris: When we kicked the team off in Austin, the first thing we did was focus on what our mission was, what is was we wanted to ascertain about virtual teaming. Chris: Paul, I believe the best place to start would be by summarizing the research mandate.

Discovering and responding to Research Mandate Discovering and responding to the issues and challenges associated with the implementation and execution of virtual teams in the EPC industry. Paul: Right, if we look in eroom we can see the original project proposal. We can summarize this as “discovering and responding to the issues and challenges associated with the implementation and execution of virtual teams in the EPC industry.

Basic Research Questions What is VT? Management Issues? A Successful Environment? Technology Issues? Chris: We will see that there are really four essential elements of the research question. What is a virtual team. What are the management issues. What are the technology issues that may or may not be barriers to successful implementation. And finally, how do we create an environment for successful implementation.

Basic Research Questions What is VT? Management Issues? A Successful Environment? Technology Issues? Paul: And let’s not forget how we use the findings from other industries and how we might apply them to traditional EPC projects.

What is Virtual Teaming? A virtual team is a group of people with complementary competencies executing simultaneous, collaborative work processes through electronic media without regard to geographic location. Chris: One of the more important elements of our research was defining what a virtual team is and the fact that it is not simple work sharing. A true virtual team that represents the kind of potential impact we are talking about focuses on complementary competencies, simultaneous execution and collaborative work processes. This is not what we see common place in our industry. Allen Tharpe: I agree, and it also highlights the fact that technology is an enabler that let’s us not worry about geographical location. Recall how Boeing had design teams working within common data sets from several locations.

Management Issues in VT Expectations And Outcome Sense of “Team” Trust Continuous Training Rapid Conflict Resolution Chris: Ok so we know what we mean by virtual team, let’s talk about some of the key management issues? Allen you had some thoughts on this. Allen: First off, you have to be clear on the goals and objectives and you have to have trust and confidence in the team members to work towards that end. Chris: And you have to be able to spot trouble areas quickly and reach resolution. Problems are amplified in this setting. Paula: I would add as a key issue training and team building. People working in a virtual environment have to have confidence in the tools, systems and the team. These don’t come without continuous training and re-enforcement.

Cultural and Social Issues Communication, collaboration are impacted by: how individual preferences influence work and collaboration how these differences impact team dynamics and productivity how these differences affect trusting relationships People do not recognize the impact of removing social interaction from the team environment. Paula: And let’s not forget that training goes beyond traditional team building. We are talking about working in an environment where the normal social interactions have been removed. Virtual teams must deal with cultural, social and technical issues. There must be face to face sessions and managers must be involved , sometimes to a greater extent than with traditional work teams. Chris: Then the message here is that management must recognize the differences between virtual and local teams and aggressively deal with all issues.

Technology Issues in VT Appropriate Technologies Compatibility & Standards Security Concerns Plenty of time on this slide Chris: Obviously there are critical management issues, but there are also technology issues. Chris: The technology issues can be summarized into three areas. First, industry must select the appropriate technology from the wide array available. Each has its own strength and weaknesses and must be evaluated for the specific purpose. Secondly, while everyone is justifiably concerned about security, there are solutions readily available. And finally, and probably most important is the need to establish compatibility for information exchange. Emerging standards are beginning to deal with this issue. So we can conclude that technology is not a barrier to successful implementation of virtual teams.

Immediate Impact and Opportunity Efficiency of project execution Removal of boundaries Integration and optimization of competencies New partnerships Chris: We have identified a number of critical management and technology issues that have to dealt with. But why would an organization want to undertake the effort required to handle them? Allen, I recall you talking about the EPC environment today. Allen: First off, the EPC is more competitive than ever and our companies must find ways to improve execution efficiencies, this offers a way to do it. It not only can improve efficiencies, but allows for better optimization of resources, leveraging of competencies and removal of traditional project boundaries. Chris: Good points Allen, but virtual teams also allow us to look at new partnerships and project teams in a more integrated and effective way. For instance, you can work with equipment suppliers and commence design work rather than waiting for certified drawings. Also, collaboration activities allow real time problem solving so production can resume more quickly than if a service representative had to travel to the site.

Appendix – Survey Data 31 CII companies participated. 20 owners, 11 contractors Paul: But you know the survey data suggests that our industry is not realizing the full potential of the concepts. We surveyed 31 CII companies on their use of virtual teaming technologies.

Appendix – Survey Data Findings Only five companies use virtual teams as integral to all projects – eight not using at all. Pre-design and design are primary uses of virtual teams. Security as primary concern for not using virtual teams – 65% of survey. Virtual teams will increase significantly or be standard practice in five years – 93% of survey. Paul: Unfortunately only 16% of the companies are using virtual teams as an integral part of all projects. And in fact 8 are not using virtual teaming at all. This means there is a long way to go for our industry. Chris: Absolutely Paul, and as the data indicates many companies continue to sight reasons such as security as a primary barrier. However, it also appears most companies see the need to make progress in the use of virtual teams.

Appendix – Survey Data Findings (continued) More difficult to engage people in achieving objectives – 73% of survey. More management visits to remote team. More time spent on e-communications. Majority has not studied impact of virtual teams on management issues, but realize this is central concern for success of virtual teams. Chris: Overall, the findings clearly indicate an absence of the use of virtual teams in our industry. This is the reason we had to look outside of the traditional EPC projects to observe virtual teams in the context we have defined.

Case Study International Space Station (ISS) Program Objectives Assess virtual teaming issues. Evaluate critical factors for success. Identify analogies to other industries. Joe: I recall the presentation by NASA on the International Space Station Program. Talk about a challenge in virtual teams.

Case Study (continued) Background ISS is largest and most complex scientific project in NASA history. Sixteen nations involved. Success based on international cooperation. Joe: But you know, they really confirmed that their biggest challenges were issues associated with cultural differences and maintaining relationships for collaboration. When you consider the fat that they had 16 nations involved you can understand why the cultural issues and relationships were critical.

Case Study Key Findings Cultural issues, not technology issues, dominate. Relationships are critical. Control of information was identified as a key success factor. There is no substitute for face-to-face meetings. Joe: Language is a barrier to which everyone can relate, however, it goes much deeper that that. Combine these issues with the control of technical information between cultures and nations and you get a feel for how difficult this effort really is.

Case Study Collaborative engineering for F-18 Tactical Fighter Objective Assess elements of virtual teaming. Determine factors for success. Evaluate level of technology and significance of soft issues. Chris: And what about Boeing? They really seemed to meet our definition of virtual teaming and were really pushing the limits of technology and modifying work processes along with organizational structure. Remember they designed a fighter jet using subassemblies designed by virtual teams. It was assembled and if fit together perfectly. Boeing achieved significant business benefits by completing the aircraft faster and at a lesser cost than their competition.

Case Study (continued) Background Collaborative engineering has been a tool for many years. Recent focus on virtual teams working in dispersed locations. Chris: They achieved this by modifying their work processes and organizational structures to de-emphasize the task mentality and focus on the end result.

Case Study Key Findings Modification of work processes, organizational structures to facilitate collaboration. Heavy utilization of immersive models and data sharing. Early identification of people/team issues is critical. De-emphasize idea of tasks; amplify importance of “big picture.” Enable teams to make business-driven decisions. Virtual teams essential to competitiveness. Joe: Right, and when you look at these two highly technical efforts, you can see that the multinational aspects of the international space station force more focus to be on culture and relationships, where Boeing is more focused on the technology and work process issues associated with a highly competitive product development and manufacturing environment. Paul: These are great case studies. This correlates to all of the virtual team research we analyzed. In every case, the research emphasizes that organizations must focus on cultural and management issues. Boeing and NASA are perfect examples of this – they studied their organizations and implemented processes that met project requirements.

Primary Research Findings Technology is not the issue! Team Initial face-to-face is a must. Clear team objectives Technology Does not ensure success, but it can lead to VT failure. Planning and standards Chris: Ok, I think we’ve got it. So let’s try summarize the key points. Paul? Paul: Clearly technology is not the issue and issues such as face to face meetings, relationships and management are critical elements of a successful implementation. Chris: And we can also say that while technology does not guarantee success, it can lead to failure if not handled properly.

Primary Research Findings Training All members in all applications Cultural training for international VT Competencies, not geographies or organizations Information overload Measures to gauge success. Was it worth the effort? Management Paula: Don’t underestimate the need for training. This has to be both technical and social. Even though we are in a virtual environment, it is still people working with people. Chris: Organizations have to begin to think in terms of competencies not geographies. Allen: Beware of too much information, technology can overwhelm if not managed correctly. Technology will increase the velocity of information, it has to be directed and controlled. Chris: And I would add the need for metrics. Is is worth the effort? Are you getting where you thought you could be? Are you achieving continuous improvement? Chris: Great job team. Let’s be prepared to discuss each of these items in more detail during the implementation sessions. Thanks again for your help.

Team Deliverables Making Virtual Teams Work Presentation Source Book – Research Guide Summary Report Presentation Simulated virtual team collaboration. Collaboration is the presentation. (Team says goodbye.) Chris: I hope that this presentation has communicated some of the essential elements of successful virtual team implementation.

Virtual Teams Project Team Members Stephen Barakis BP Paul Chinowsky Georgia Tech Pat Finefield Washington Group Paula Hansen Texaco Bill Johnston Day & Zimmermann Frank Palazzolo LTV Steel Chris Parker Parsons Bob Pinson BE&K Stephen Reuwer FPL Energy Eddy Rojas State University of New York at Buffalo Joseph Sprys General Motors Allen Tharpe Jacobs Chris: I would like to thank the PT-170 team members. Their outstanding commitment, vision and contributions enabled us to complete this research project in twelve months and produce a product that should prove to be valuable to any organization who recognizes the need to go virtual.

Summary on Virtual Teams Change is essential. Successful change requires vision. Reevaluate work processes. Rethink organizational structures. Discover new business methods. Chris: We work in an environment today that is never static. Change is a given and has become a pre-requisit for success. But successful change requires vision. It has been said that those that can see the invisible, can do the impossible. So when you begin to look at implementing virtual teaming into your organizations, you must realize that change is essential. Work processes must be re-evaluated, organizational structures must be questioned, discover new ways to do business. These changes won’t come easy, but the benefits are real and they could mean the difference between success and failure. Thank you.

San Francisco, California CII Annual Conference 2001 San Francisco, California

Wednesday Afternoon Implementation Sessions Small Project Execution Salons 4-6 Virtual Teams Salons 1-3 Breakthrough 2001 Salons 10-12 Benchmarking/ISC Salons 7-8

Wednesday Evening Mixer Assemble for Bus 5:15 - 5:30 Bus to Ferry 5:30 - 5:45 Ferry to USS Hornet 5:45 - 6:20 Welcome Mixer 6:20 - 9:30 Return Transportation 8:00 - 10:05

San Francisco, California CII Annual Conference 2001 San Francisco, California