Archive for October, 2006

After a distance of greater than 50 ft, our chance of communicating and co-operating more than once a week is less than 10%.

Monday, October 16th, 2006

According to Tom Allen from MIT, after a distance of greater than 50 ft, our chance of communicating and co-operating more than once a week is less than 10%. Something most of us probably see with the teams that we currently work with everyday. Ian Fleming reminds us of this fact with a pocket book on Virtual teams published this year in the U.K. Over the last few years I have looked at several books on managing and working with virtual teams, but what can you expect from a hundred page pocket book, I wanted to find out. Certainly a book of this size is not going to give you a lot of actual how to’s, but rather will be organized around lists, and this book is no exception.

The book starts out with dangerous assumptions people often make about virtual teams, some of the better assumptions are: Don’t make the mistake of simply transferring what you know about teams to these new virtual situations a lot more is involved. Good to list this as a dangerous assumption, BUT he doesn’t tell us what those differences actually are, but some of this can be pulled out from the rest of the book. Another good assumption is: Don’t assume Virtual teams are all about technology. Cooperation and working together are key; with less emphasis on technology. I would have to agree with this one. Perhaps coming from Silicon Valley where everything must be solved with technology, this is something I do not often read, many writers seem afraid to say that technology doesn’t solve everything.

A good suggestion from the book that you usually don’t see, since everyone thinks you should be able to work in a virtual team, is to think hard about whether or not it is for you. To be honest with yourself about whether or not you prefer to know your colleagues very well or you prefer to discuss things face to face, if you do, you will not like being on a virtual team. Whether or not making this choice will help your career may be the long-term question however?

There is heavy emphasis in this book that the Big Challenge in a virtual team is building trust between people who do not know each other and rarely meet. I would whole heartedly agree. Trust means people do what they say they are going to do. The author suggests that an initial meeting face to face gives you the chance to start building relationships and trust. I would agree with this but would say not to make it a stumbling block to getting started; there are other ways to start building trust long distance which the author does not go in to. For example, depending on what type of work is being done; having some type of daily deliverable for the first several days is a good idea, even if it is a schedule or some part of the work plan that is delivered every day. Daily communications, not just by email by instant message or phone also starts to build trust if nothing else just a couple of minutes to see if there are any questions, or check in and review what was done for the day. It starts to build that trust of delivery, x was due today and they delivered, y is due today and they delivered, etc., and so on and so on. 

Mr. Fleming also introduces us to the concept of Swift Trust which is defined as something specific for temporary virtual teams. Those virtual teams brought together for a short time for a specific purpose. Members must move quickly to set goals and operate as if trust was already in place. It seems many virtual teams can operate under the Swift Trust concept if they are put together for a very specific short term goal, and other virtual teams can operate under the concept that trust must be earned and built over time and can be easily lost.

This book on Virtual teams is the first book in a long time which actually recommends that it may be faster to pick up the phone to get something accomplished. In this day and age, most people do not like to pick up the phone and talk in real time; it is more difficult, so this comment is refreshing. I would argue on one point that Mr. Fleming does make. He categorizes email as real time communications. I would argue that email is not real-time, but asynch communications. You have to wait for someone to answer you; you are at their mercy and on their time to provide you an answer to your questions, you also have to hope they understand what they are asking. Many times it takes way too much time; you have to explain everything you already know and define I only need an answer to this narrow item. Many times it can just be faster to pick up the phone and it usually doesn’t cost all that much with the proliferation of VoIP services.

The checklists in this book are good, it is a quick read, and the emphasis on building trust and looking outside technology to accomplish tasks in a virtual team are all good. It can give a new virtual team member or team leader some aspects to virtual teams to think about. However, one of the major downfalls of the books I find, is the type of book that it is; a pocketbook. I do not really see a large number of virtual team leaders picking up this type of book and reading it as a serious book on the subject. A better format choice I believe would be an ebook, something that can be highlighted and text copied and carried with you. This may be my thinking because I am buried in technology though; someone must be reading all of these hundreds of pocketbooks that are getting published!

Virtual Teams Pocketbook
© Ian Fleming 2006
Published by: Management Pocketbooks Ltd. Laurel House, Station Approach, Alresford, Hants S024 9JH, U.K.

Boeing – Possibly more cooperation with Ukraine

Saturday, October 14th, 2006

Showing the strength and interest in Ukraine’s engineers a delegation from Boeing was recently in Ukraine taking a closer look at Ukraine’s aircraft manufacturers. Boeing already cooperates with Ukraine’s Yuzhnoye rocket company as part of the Sea Launch project.

Interfax (http://www.interfax.kiev.ua/eng/go.cgi?6,120) recently reported that Boeing representatives visited the Kharkiv State Aviation Production Plant and the Kyiv State Aviation Plant, Aviant, where they studied the production of several of the Antonov planes: An-74, An-140, An-148, etc., with thoughts towards possible cooperation between Boeing and Ukrainian aircraft manufacturers.

This could be additional great news for Ukraine and its engineers and would, I hope, lead to additional cooperation with Ukraine perhaps including software development facilities. Boeing has cooperated with Luxoft, a top Russia outsourcing firm, for several years and now has its own facilities in Russia. Work in Russia started out for more political reasons related to cooperation Boeing needed due to its then new 777 routes, but now hopefully Boeing can find beneficial business reasons to cooperate more closely with Ukraine as well.

The good and the not so good changes for those Outsourcing to Ukraine

Wednesday, October 11th, 2006

If you are outsourcing to Ukraine, or have your own development center in Ukraine or thinking about having your own center there, why might the fees charged to you go up, or why may your costs be going up?

Recently the Ukrainian government announced an increase in the personal income tax rate from 13% to 15%. At first glance this may not seem like a big change, and it may not seem to be important since it is the personal income tax rate and not employer taxes. But for companies working in Ukraine, including outsourcing firms, it is a big deal since personal taxes are typically paid by the employer in Ukraine. The increase brings the total tax burden on employers to 53%, a hefty burden. If you are experiencing an increase in the fees you are paying for your Ukrainian team, an increase in salaries, coupled with tax increases could be a reason why.

More not so good news for the Ukrainian outsourcing market overall: It is not looking good for WTO ascension again this year according to President Yushenko. While not a deal breaker for most companies outsourcing to Ukraine, most will go ahead without this, it is expected that ascension to WTO will bring added foreign investment in to the market and also the final changes to be signed in to law for WTO will bring added enforcement in the areas of intellectual property.

What has been going very well for developing the outsourcing industry in Ukraine: Telecoms costs continue to come down, namely data connectivity costs which can now be used for both data and voice communications. This is occuring not only in the capital but also in the regional centers. While rates are not as low as in the US, an unlimited 512MB adsl connection can be obtained for around $350 or so. Again not the speeds that we are used to in the US, but higher speeds can be obtained, with also unlimited traffic. All of it is a move in the right direction to further develop this industry.