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Handbook of Business Strategy

Managing virtual project teams: how to maximize performance


Palitha Kuruppuarachchi
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Palitha Kuruppuarachchi, (2006),"Managing virtual project teams: how to maximize performance", Handbook of Business
Strategy, Vol. 7 Iss 1 pp. 71 - 78
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(2006),"The challenges of managing cross-cultural virtual project teams", Team Performance Management: An International
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Managing virtual project teams: how to
maximize performance
Palitha Kuruppuarachchi

Dr Palitha Kuruppuarachchi is currently The New South Wales Police (NSW Police), Australia commenced a project entitled
working as a Project Manager in the New
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Country Capital Works Program (CCWP) in July 2002. The project cost was over
South Wales Police, Sydney, Australia. He
A$20.5 million: A$5.7 million, A$6.6 million and A$8.2 million respectively in the rst,
can be reached at
kuru1pal@police.nsw.gov.au second and third years.

The CCWP aimed at ongoing development and support of the country radio systems
outside of Greater Sydney. The scopes and objectives of the project was summed up
under seven ey areas: radio black spot reduction, communication center
development, system development, improvements to logistic support, replacement
of obsolete equipment and facilities, improvements to operational support, and
replacement or purchasing of additional radio terminals.

The NSW Police entrusted the author of this article to manage the CCWP using the
Many organizations need to deliver existing human resources in a virtual team environment. I managed the project
time-critical projects, geographically according to the most widely distributed available knowledge guides, the Project
spread across diverse locations, using Management Body of Knowledge (PMBOK). It is a collection of ve process groups:
limited resources. Virtual project teams initiating, planning, executing, controlling and closing, and nine knowledge areas:
are more difcult to manage than integration, scope, time, cost, quality, human resources, communication, risk, and
traditional co-located project teams,
procurement. As an internationally recognized standard (ANSI/PMI 99-001-1999,
however, if managed rightly, teams take
and IEEE 1490-1998) it provides fundamentals of project management irrespective of
ownership and commit to achieve
the type of project, and thus applicable to the CCWP.
agreed goals. The article rst
comments on the functions undertaken I reviewed the project following its completion; I sought ideas and views from all team
in one particular entity, the CCWP, and members and analyzed them. The ndings are presented in this article; rst, I present
thereafter summarizes possible the functions undertaken in the CCWP with some useful comments, thereafter I
strategies for maximizing performance present possible strategies for maximizing performance of virtual project teams.
of virtual project teams.
A decision for a virtual team
The author is grateful to Assistant
Commissioner Reg Mahoney, Chief
In country NSW, ve communications centers: Tamworth, Wagga Wagga,
Superintendent Michael Carboy and Chief Newcastle, Warilla (Wollongong), and Penrith provide radio dispatch services to
Inspector Dave Meurant for spending their police in regional cities, suburbs, townships, and along highways and main roads.
limited time for reviewing the article and
Country Radio Communications Systems are centered and linked to these centers. A
providing valuable suggestions. The support
from the Project Team of the CCWP in this center manager manages each center, with support from maintenance centers
study is also acknowledged. named Radio Network Services (RNS).

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HANDBOOK OF BUSINESS STRATEGY 2006, pp. 71-78, # Emerald Group Publishing Limited, ISSN 0894-4318, DOI 10.1108/10775730610618648 PAGE 71
The distance from Sydney to the country centers and distance Country Teams were responsible for the implementation of the
from country centers to remote radio sites made it difcult for a project. The Technical Support Teams reviewed specications,
co-located project team to manage the entire program within request for tenders/quotations, and selection of vendors, while
the limited time and resources without major involvement of nance support administered nancial matters such as
remote project teams. Further, it would not be practical to processing orders and payments.
regularly travel to meet face to face with remote teams (see
At the beginning of the project, I conducted several workshops
Figure 1). As such, a virtual project team was established to
and developed several guidelines aiming to:
undertake the CCWP for necessity.
J explain to teams what they are doing on an individual basis
Human resources
and how their works t into the overall project;
The virtual project team undertook the CCWP, while they were
J facilitate building ties and relationships among team
primarily responsible for maintaining the existing radio networks.
members; and
On average, seven project team members from each center and
the center manager had participated in the project. In addition J identify project communications and information systems
six members participated in the project as technical and nance requirements.
support. The total number of project team members thus
Whenever I recognized lack of skills of a member and/or a poor
exceeded 45, but they were not on a full time basis.
performing process, necessary advice and information was
The project management structure used in the CCWP is depicted provided to individuals as well as to all members of the team,
in Figure 2. Project relationships are shown in the diagram, but and rened the ill process.
not the functional relationships. The project manager was the
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Throughout the program, I maintained excellent working


only full time position in this structure, and that position was at the
relationships with other professional teams, specically with
same level as the Country Project Team Members.
engineering, nance, and human resource management
The project sponsor was responsible for acting as the including occupational health and safety ofcers.
corporate champion, and chairing the Steering Committee
Project integration, scope and cost management
that was responsible for providing overall direction and
approval of key milestones and deliverables. The Steering I developed a plan guiding the project execution, monitoring,
Committee considered the deliverables from the program, kept and control. It was named Project Execution Plan (PEP)
the program scope in conformity with corporate direction, and according to the NSWP terminology. I rened the PEP based
conrmed that the program remains on track. on reviews and feedback from other team members.
The project manager was responsible for project planning, We decided to undertake the CCWP as a series of many small
coordination and monitoring and nancial control, while the sub-projects. In order to dene constituent sub-projects, I
provided a guideline to team members and a template, which
Figure 1 Location of country centers included a format to capture written statements on: title,
objectives, benets, scope, resource assignment, work
breakdowns, schedules, cost estimates, risks, and delivery
methods for individual sub-projects. This established the basis
for project decisions and cost baselines (budgets) for
measuring project performance.

We decided to engage Country Teams for capturing user


requirements and formulating sub-projects, because they had
close relationships with operational police and had a better
knowledge of user needs. The Steering Committee formally
accepted the scopes of sub-projects, and approved a set of sub
projects within the allocated budget and time constraints. This
involved a process of reviewing sub-projects against corporate
requirements. The project comprised of over 230 sub-projects.

We undertook the CCWP in an environment characterized by


changes in: technology, the Government's radio strategy, and
policing requirements. As such, while implementing the project,
few scope change requests occurred in the common forms:

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PAGE 72 HANDBOOK OF BUSINESS STRATEGY 2006
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Figure 2 Project management structure
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oral or written, direct or indirect, externally or internally initiated. J Sub-project were commenced having sufcient details, but
Benecial scope changes were initiated. As I experienced, without waiting for full details.
when virtual teams are empowered and informal J Acquisition of radio infrastructure equipment were
communications are encouraged, there is a tendency that
commenced when quantities were fairly known.
team members may overlook the agreed procedures to
formalize scope changes. Thus project-monitoring J Progress of sub-projects as well as completion of
mechanisms should be capable of detecting non-reported associated works were reviewed for making necessary
scope changes for assessing and minimizing possible impacts amendments to minimize project risks.
and formalizing such changes. I will further discuss this area The milestones of the CCWP at the macro level were different
under Communications Management. to traditional delivery-based milestones. Delivery times were
uncertain for the majority of activities, but we could identify a
Time management
possible time range for an activity instead of a particular delivery
I derived milestones for the CCWP at the macro-level and time. In the initial phases of each year of the program, I used
presented in the PEP, after carefully analyzing all the milestones to monitor the commencements of critical activities
constituent sub-projects. at the correct time, while towards the end of each nancial year
I designed the project schedules and milestones specically to I used milestones to monitor the completion of works. Some
facilitate undertaking constituent sub-projects concurrently activities had middle monitoring points to review the progress.
In the absence of delivery-based milestones, I monitored the
while empowering Country Teams, in order to nish the
progress of sub-projects activities during the assigned time
program within a critical time period. At the macro level, the
periods in order to initiate desirable corrective actions.
traditional project phases: planning, designing, acquisition of
Information gathered in many forms: monthly reports,
equipment and/or resources, construction of systems and
informal communications, reviews of purchase requisitions,
commissioning was indistinct, even though traditional phases
state of site development applications etc provided accurate
were visible at the sub-project level.
pictures of the state of an activity.
The project schedules and milestones of the third year of the
The project schedules and milestones at macro level guided
CCWP, for example is presented in Figure 3:
the Country Teams scheduling sub-project activities. Further, it
J The initial project review process continued for two months, synchronizes project activities across Country Teams. Team
but certain time critical activities were initiated in the middle members took ownership of the work and planned and
of the review. implemented their sub-projects with minimal control. In

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HANDBOOK OF BUSINESS STRATEGY 2006 PAGE 73
Figure 3 Project schedule and milestones of CCWP03-04
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PAGE 74 HANDBOOK OF BUSINESS STRATEGY 2006
addition, Country Teams had good relationships with local Quality and risk management are more difcult in virtual project
councils and Government agencies. This helped to accelerate teams compared to co-located teams. Thus, we should have
the required approvals in certain site developments. well-developed quality management and risk management
systems for virtual teams.
To monitor budget of the CCWP against time, I used simple
means such as Microsoft Excel worksheets and graphs Communication management
showing cumulative values. I developed Excel worksheets
We established a virtual team for the CCWP, having reliable
instead of using project management tools, because all team
e-mail and telephone facilities for all members of the NSW
members were well familiarized with Excel. The centralized
Police. In managing the project, Country Teams primarily
budget control was found to be extremely efcient and useful.
interacted electronically.
Quality and risk management
I used the telephone mainly to discuss project matters with
I undertook quality planning of the CCWP while developing the individual members, and e-mail mainly for the distribution of
PEP, and included quality standards relevant to the project and information and conrmation of telephone conversations. To
means to satisfy them in the PEP. However, quality assurance deal with interdependent tasks and resolving critical issues, I
and control were found to be difcult in virtual teams. used synchronous communication means, telephone and
video conferencing and even when possible face-to-face
It was difcult for a quality inspector to visit individual centers
meetings.
and diverse radio sites throughout NSW. As such, quality
inspection using centralized resources was not a viable option. Two key reporting aspects occurred in the CCWP: collection
Nevertheless the following quality activities were effective in the and dissemination of information such as status reporting,
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CCWP: progress measurements etc to various stakeholders, and


project specic reporting within the project team. I used the
J Necessary skills for the installation and maintenance of the
existing systems, structures and guidelines of the NSW Police
radio network, was provided to in-house resources through
predominantly to satisfy the information and communications
appropriate training programs.
needs of stakeholders.
J Specications, request for tender/quotations, and
Within the project team, informal communications was
evaluation methodologies developed by Country Teams
supported and project implementation was reliant on trust,
were reviewed prior to their release.
cooperation and teamwork. This helped efcient execution of
J Product quality and relevant national/international the project. However, I had to develop procedures for gathering
standards and accepted safety practices applicable to information in a timely manner on request and/or on need basis
the project was presented to teams. from Country Teams ensuring needed information available to
project stakeholders. I developed procedures and rened
J Quality management experience was considered a major
several times with the progression of the project. I collected
factor in selecting contractors.
formal progress reports monthly.
Similar to quality plans, while developing the PEP, I undertook
In Country Teams, often all members were well aware of the
risk identication, quantication and response development
status of their sub-projects, but in certain situations, only key
based on the information provided by Country Teams at the
members held the required information. As such availability of
time of dening sub-projects.
people and actually catch them up was found to be important.
However, responding to changes in risk over the course of the When seeking information, I used to dene that the response
project and updating the risk management plan was found to should reach me by close of business in a certain date. I
be difcult in virtual teams environment in the paucity of provided information to Country Teams on a regular basis and
centralized control on team activities. Nevertheless, pre-planed on requirement basis using e-mail. Text-based messages were
responses worked effectively in the program as follows: often augmented with visual information such as graphs,
histograms, etc.
J The program was undertaken as a series of small locally
managed sub-projects allowing terminating incurable We reviewed the project at the beginning, mid-year and at the
sub-projects in isolation with minimal effect to the overall end. In these reviews, we used face-to-face communications.
project. Either, the Country Teams visited Sydney or personnel from
Sydney visited country centers. Further, we used video
J Certain site development works such as installation of
conferencing facilities as needed.
towers, huts, and provision of main power were not
combined across sub-projects to minimize ties between As observed in the CCWP, monitoring and reporting
sub-projects. mechanisms in virtual teams should consider the following:

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HANDBOOK OF BUSINESS STRATEGY 2006 PAGE 75
J At the start up, project activities, milestones, and other I did not experience problems with team members, as a result
relevant information to be reviewed and agreed with team of my position in the organization hierarchy. Teams recognized
members in face-to-face meetings. my skills in project management and accepted my leadership
J Mechanisms, formats, frequency of reporting, etc. for for the project. Finally, teams commented that excellent project
monitoring of time line and budget to be agreed with management was a factor for the project success. I praised the
team members. work of well performing teams when providing feedback. I
provided progress reports to all teams so that they can
J In progress reviews, team members to be consulted as
compare their works with others. This strategy worked quite
required, and summary reports and feedback to be provided.
well and everybody tried to achieve the best result.
J In daily basis, issues, problems, risks, scope changes or
Procurement management
activity changes of the project to be identied, and
corrective actions to be initiated, if required. I included procurement guidelines in the PEP, helping Country
Teams for undertaking purchase and acquisitions activities,
J Project documentation maintained at the Central Ofce to
from determining what to procure through to completion and
be comprehensive enough for auditing purposes.
settlement of contracts. In addition, I provided necessary
I worked hard to introduce a project management framework advice to them throughout the project whenever it was
and to monitor the progress of the project at the beginning. required.
Early stages were characterized by a certain amount of
uncertainty, confusion and unplanned decision-making. In the scope denitions, we used work breakdown structures at
However, as the team became familiarized with the sub project levels to dene a cluster of activities for each sub-
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framework, they adhered to the required processes and project. Country Centers identied project delivery methods
became more efcient. and requested procurements, but the Central Project Ofce
undertook procurement functions centrally to ensure value for
I recognized the following key limitations in the virtual project
money using the bargaining power of the agency and looking
team of the CCWP:
for possible quantity discounts. This also facilitated budget
J As the project manager had little authority over the remote control and cash ow management of the project.
team members, the project manager needed support from
NSW Government agencies should undertake all purchasing
the sponsor to implement certain procedures and to resolve
activities adhering to NSW Government purchasing and
some problems.
policies guidelines. We used Periodic Supply Contracts to
J As a result of using the existing resources, the project was procure standard radio equipment and services required for the
undertaken accepting the project management skills of project from competitive quotation processes, as such
assigned members. contracts were in place. Agreements with suppliers helped to
J As team members were not fully assigned for the project, procure equipment as needed with possible discounts
resource limitations were experienced in critical times. because several sub-projects were running concurrently but
having different procurement requirements.
J As a result of informal communications, resolution of certain
problems did not follow the documented path. The number of suppliers who could provide goods and services
for the radio development works was limited in the industry.
J As a result of teams mainly interested in completing the
During the CCWP, we experienced certain delivery delays
work, it was required to follow up teams to document the
because the suppliers were overloaded with demand.
decisions taken at remote centers and the results
generated. Benet management
Virtual teams for projects may be established using the existing The CCWP had improved the radio communications systems
personnel of an organization as a necessity, even though of the NSW Police by ensuring a healthy technological position
project specic activities often require skills above the skills and hence contributed to high police responsiveness.
required to undertake day-to-day activities. Further, team
members should have well developed self-discipline in taking We developed a document named Benet Management Plan
critical decisions in virtual teams. As such, skill development of (BMP) to provide a structured process for the project team to
employees should be considered in organizational context demonstrate the achievements of the benets. As part of
rather than project basis, for example, employees should have developing the BMP, we conducted a series of workshops, and
skills in quality reviews, issue/risk management, maintenance documented business processes associated with the seven
of documents, etc prior to assignment for project tasks. key programs of the CCWP.

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PAGE 76 HANDBOOK OF BUSINESS STRATEGY 2006
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We measured, recorded and veried the benets of the project J Good relationships of remote teams with local agencies
according to the BMP. This process highlighted the important facilitate the required approvals and sharing cost of certain
of the following elements: project activities.
J The importance of developing the BMP at the beginning of J Remote team members facilitate the selling of project
a project detailing all requirements of the benet benets to local users.
management process.
Establishing virtual teams
J All team members as well as business managers to
participate in the above process. As recognized in the study, the following undertakings are
suggested at the start-up of a virtual project team:
J Simple but illustrative method such as business process
diagrams, graphs, etc. to be produced to illustrate baseline J Ensure that the organization is adhering to well proven
indicators and processes of the benet management. project management practices prior to establishing virtual
Similar to the project implementation, Country Centers project teams.
undertook the benet management process. The team J Provide Central Project Ofce with sufcient resources to
members needed skills for gathering data or deriving manage the project including handling procurement and
necessary data from existing information, validating data, and
budget control.
documenting data as baseline measures, prior to commencing
measuring benets. They further required liaising with local J Allow sufcient time for detailed planning of the project
business managers and other relevant stakeholders to giving attention to all functions of the project.
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determine the realized benets. Tacit knowledge of the local


J Make clear the purpose and performance goals, and
staff found to be very useful in this process.
establish Central Project Ofce and virtual teams role and
Auditing the project responsibilities, to avoid confusion.
The Internal Audit Team of the NSW Police audited the J Identify interdependency among team members and
program. The audit report clearly focused on identied establish methods on how the team works together to
omissions or discrepancies based on the documentation
achieve the goal.
reviewed by the audit team. Specic ndings relating to
project planning, implementation, execution and nancial J Initiate the project carefully, start up workshops with team
aspects were presented. It was highlighted the importance of: members not only provide an opportunity to meet each
J other, but also align members in terms of goals, agreed
undertaking a comprehensive risk assessment throughout
the program; processes, available tools and the skills they possess.

J creation of a central point for project coordination; J Establish information distribution systems for status
reporting, monitoring and controlling of the project, and
J facilitating external or independent program reviews; and
agree not only on what, when and how information will be
J ensuring quality assurance throughout the program. shared but also on how team members will respond to it.
The recommendations in the audit report were recognised. J Schedule periodic face-to-face meetings throughout the
project at two levels: project level conveyed by the project
Benets of virtual project teams
manager (may be monthly), and sub-project level conveyed
The current competitive, cost cutting environment may by Remote Team Leaders (weekly).
demand organizations to use existing resources for
managing projects in a virtual team environment. The CCWP J Establish procedures and standards to capture and
highlighted the following key benets: document decision-making activities and results of
decisions.
J Establishing project teams using existing resources of the
organization allows use of the total funded dollars for the J Establish procedures for undertaking project activities such
project. as capturing user requirements, undertaking procurement
J Remote teams taking ownership and committing to achieve etc and also for surfacing assumptions and conicts.
goals set for them, lead to efcient execution of the project. J Recognized other professional groups: engineering,
J Provide an opportunity for developing team work skills, and nance, human resource management and build
project management skills of the assigned staff. excellent working relationships.

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HANDBOOK OF BUSINESS STRATEGY 2006 PAGE 77
Running virtual teams
As recognized in the study, the following undertakings are Figure 4
suggested when running virtual project teams:
J Adhere to a Code of Conduct, specically related to request
for information, time limits, and scope changes.
J Keep records of availability of team members including
absences, vacations, travel or leave.
J Develop trust and relationships, run on trust to make it
work, monitor rather than control, cross check information
for accuracy, and get teams on track.
J Use telephone, e-mail, telephone/video conferencing as
appropriate for the situation.
J Inform members to check e-mail frequently and give
indication on forthcoming e-mail.
J Update schedules and provide feedback to team members
using e-mail, organization's intranet, etc.
J Develop business relationships with relevant Government
J Listen to team members carefully and be sensitive to the agencies, power utilities and carriers in order to get their
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feelings of the them, in the absence of face-to-face help at critical times.


communications.
J Establish mechanisms to avoid delays in certain project
J Recognize differences in teams and individuals, respect activities: for example memorandum of understanding with
diversity, and facilitate creating relationships and fostering relevant agencies, early agreements with land owners.
each other.
J Establish planning groups to undertake planning phases of
J Recognize mismatch between corporate and team culture forthcoming projects, specically for time critical projects.
and even between policies and procedures.
J Allow early actions on time critical project activities even
J Maintain documentation, it should be lean but with cross prior to initiating a project considering lengthy procedures
reference to detailed information satisfying corporate and associated long delays.
requirements.
Conclusion
Facilitation functions
Virtual project teams are cost effective, but management of
Following completion of the CCWP, the project team virtual teams requires skills over and above the management of
recognized possible improvements to normal activities of the co-located project teams.
organization in order to facilitate introduction of virtual project
The activities listed for establishing, running and facilitating
teams. The required actions are:
virtual teams presented in this article basically highlight that an
J Enhance technical, project management and contract organization should have high level project management
management skills of staff over what is required for day- expertise and systems prior to establishing virtual project
to-day works. teams. In addition, the most appropriate methods of managing
virtual teams may not be fully complied within the existing
J Develop standards and/or specications for technical
policies and procedures of the organization. Teams should be
products, and guidelines for routine activities as day-to-
empowered to own and commit to the purpose, and shape if it
day functions of the organization, for making them readily
is required. It may demand organizations to relinquish old style
available for time critical-projects.
command and control base management and to provide
J Establish systems to capture current information on user freedom to teams (Figure 4). The team should work as a real
needs and available technologies on continuous basis and virtual team rather than a dispersed fragmented team.
maintain appropriate records.
It is necessary to raise standards of business processes and
J Establish methods to retain the knowledge of experienced skills of employees of the organization, if it thinks of forming
people related to technical problems, products, local high performance virtual project teams using existing
conditions, etc. resources. J

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PAGE 78 HANDBOOK OF BUSINESS STRATEGY 2006
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