Some companies have worked with virtual teams for decades. Software development and tech are among the industries most widely known for established (and efficient) cross functional teams that may be primarily not co-located. The idea behind this established industry standard is simple: companies have the ability to create the best teams from the best talent, without geographic constraint. This can often act as a cost-saving measure, too; without considerable office space to maintain or the obligation for employees to constantly be onsite, costs are reduced for the business and employee. If the increase of remote work technology has helped to establish virtual teams as necessary and highly accessible for many different work sectors, then the introduction of a global pandemic sent virtual teams into the stratosphere. Why does any of this matter, and what does it have to do with leadership?
Our corporate and social worlds have become increasingly virtual, often operating without the benefit of face-to-face interaction and more heavily reliant on quick forms of communication. Instant messages replace quick chats in the coffee room and slack (chat) rooms serve as the new office space. This more efficient, but less personal, form of interaction can create higher productivity but also a feeling of anonymity that does not positively contribute to company culture nor the ability of leaders to exert influence. According to Leader-Member Exchange (LMX) theory as originally posited by Graen & Uhl-Bien (1991, 1995), the dyadic relationship is co-created between leaders with each follower (Northouse, 2018). The dyadic relationship is vertical in LMX (Northouse, 20189, 142) and emphasizes the need for individual connection in order to influence followers.
How then, should leaders start the relationship building process in virtual environments? Working virtually presents unique challenges that, thanks to a global pandemic, many more people and companies are experiencing in 2021, which presents unique opportunities to leverage LMX for better quality within organizations. Within a distributed team, LMX theory could be applied by leaders to create smaller teams with shared leadership (Northouse, 2018, p. 372). As shown in Hoch & Kozlowski (2014), Muethel et al (2012), and Wang, Waldman, & Zang (2014), virtual teams thrive in shared leadership situations (Northouse, 2018, p. 385). LMX theory could influence how these smaller groups are formed, based on existing dyadic relationships that have already reached phase 2 (tested roles, mixed influence, interest of self and others established) (Northouse, 2018, p. 144) which would enable those identified employees to enter into the subsequent phase, phase 3, where partnership with leadership is apparent.
These cohorts would be trusted and beneficial peer-to-peer leaders in smaller group settings that could enable greater team effectiveness. Each small team would then have a better opportunity to co-create the vertical dyads central to LMX theory and move through the interaction phases in a positive way. For example, a small group team leader may have 3 or 4 direct reports, may hold the same title within the business with a few years more experience, and may already be in a position of advisement to teammates. This can help focus the team on task and relational needs, building the team cohort more efficiently, thereby engaging the trust and rapport more commonly developed in face-to-face interactions (Northouse, 2018, p. 382). Virtual team leading challenges leadership even more so than co-located teams according to Dyer, Dyer, & Dyer (2007) which amplifies the need for smaller teams that can necessarily be more personal.
Whereas the team leadership model “focuses on effectiveness” (Northouse, 2018, p. 387) and therefore the overall success of the company, the coordination with LMX theory for virtually based teams is paramount to the success of either. An individualized work relationship between follower and leader is paramount to LMX and helps to determine success (as much as people’s individual personalities and skills) which is just more difficult to establish through a screen-based relationship (Northouse, 2018). The joined leadership practices of LMX and the Team Leadership model work together to break through the virtual clutter and engage employees effectively. This would create more employees and leaders engaging in the mature partnerships with mutual trust that propels both individuals forward as well as the organization. In a world of increasing virtual meetings, the adaptations of leadership theories can provide firm resources for establishing teams that are not co-located.
REFERENCE
Northouse, P. G. (2018) Leadership: Theory and practice (8th Edition). SAGE Publications, Inc. (US).