Research Article |
Corresponding author: Olga A. Zolotina ( zolotina.o@gmail.com ) Corresponding author: Hergen Frerichs ( hergen.frerichs20@gmail.com ) © 2023 Olga A. Zolotina, Tatiana O. Razumova, Yaroslav A. Sotnikov, Anton V. Nastavnyuk, Hergen Frerichs.
This is an open access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Citation:
Zolotina O, Razumova T, Sotnikov Ya, Nastavnyuk A, Frerichs H (2023) Digital transformation of high-performing teams. Population and Economics 7(2): 60-93. https://doi.org/10.3897/popecon.7.e98911
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The paper studies the impact of the covid-19 pandemic and shift to remote work on team productivity. The purpose of the article is to analyze changes in agile team performance in a virtual format of work and to analyze risks and opportunities for management solutions to maintain or improve their work productivity. The study provides a literature review and empirical analysis of high-performing teams in the Russian companies. In the empirical part, the authors first conduct interviews with heads of HR-departments to collect general information on high-performing teams and risks, appeared after transition to remote work, and then study opinions of high-performing teams’ members to assess their own attitude to changes in work productivity in 2019-2021. In the result section the authors show changes in the management views and recognition of the hybrid and virtual team capabilities and demonstrate that recent agile team concepts are based more on partially-remote work and focus on individual rather than collaborative work and face-to-face work periods for innovative activities and team-building of agile project members as the way to maintain their high productivity.
high-performing teams, project management, digital transformation, HR management, agile teams
Determinants of team performance have been the research subject for many decades. While the co-located team work has remained the ruling paradigm, the digital transformation of the business world has led to an increase of virtual and hybrid teams all over the world. In parallel to that development, for the last twenty years, agile management methodologies have spread from the software development industry to many other industries around the globe. Until the onset of the Covid-19 pandemic, agile teams mostly worked in a co-located format and were regarded as a prime example of high-performing teams.
The Covid-19 pandemic has forced transition of all kinds of teams all over the world from a co-located into a virtual format. Later, when the acute phase of the pandemic was over, many teams switched to a hybrid format, and continue to work in a virtual or hybrid format today. Companies have differently treated the question of whether and when teams need to return to the pre-crisis co-located format. Some companies have embraced the new formats, changed their company policies, and used their new positioning to attract employees that prefer working from home, while saving costs on office space. Other companies urged their employees to return to the office, but faced resistance of the employees that were reluctant to go along with that demand. They commonly reacted with delaying their return-to-office plans, in order not to lose good employees in a tight labor market.
One might say that the Covid-19 pandemic worked as a sort of accelerator of digital transformation of teams into hybrid and virtual formats. Companies suddenly and acutely have been faced with the question how team performance is affected by the digital transformation into different work formats, in order to take informed decisions on how to structure work in the future. This question is particularly relevant for agile teams as a prime example for high-performing co-located teams. Therefore, the research question of the study is how the work of high-performing agile teams is affected by the digital transformation into hybrid and virtual formats.
Section 2 is devoted to a review of the literature. In section 3, the literature is discussed and conclusions with respect to the research question are drawn. Section 4 presents and discusses results of the empirical analysis performed in Russia. Section 5 lists the overall conclusions.
Team performance is a complex topic. Some recently developed modern management practices, for example agile methodologies, have not been subject to rigorous scientific analysis so far. Since the onset of the Covid-19 pandemic, academics and practitioners have been fast to publish monographs to discuss the consequences of remote work on employee and team performance. These contributions are important as they allow capturing the latest trends in management experience and management thinking that partially may not be accessible to rigorous scientific proof. The publication of academic research papers has also gained momentum, but with a certain time lag, as research projects need to be conceptualized and carried out, and results need to be discussed in the research community, before they are published. The literature review therefore includes monographs of academics and practitioners alike as well as academic research papers.
The literature is chosen with respect to the main components of the research question, that is, the literature ought to allow a better understanding of the terms high-performing, agile, hybrid, and virtual teams, and remote work. Furthermore, the goal of the literature review is to obtain the information necessary to answer the research question based on the current state of research. The literature is divided into the following research areas: 1) Team performance, 2) Agile teams, 3) Hybrid and virtual teams, and 4) Remote work (particularly, against the background of the Covid-19 pandemic).
Yeatts and Hyten define an SMWT as a group of 5-15 employees working on technical tasks regarding a product or service for an internal or external customer (Yeatts and Hyten 1998: xiii). It is characterized by rotation of tasks, self-management, high interdependence, team accountability, and it is brought together not only for a short-term purpose (
Yeatts and Hyten define high performance as high customer satisfaction under the condition of a team’s economic viability. High customer satisfaction is determined in terms of productivity, quality, timeliness and costs of the team’s output. Economic viability means that the team’s output can be sold profitably (
With respect to systems theory, they regard the SWMT approach as providing the best fit of technical and social systems, and with respect to contingency theory, as allowing for optimal quick reactions to employee, technological, and environmental contingencies (
According to
Yeatts and Hyten discuss several models proposed from 1964 to 1994 that explain SMWT performance (
Factors Affecting Self-Managed Work Team Performance. Source: Adapted from (
SMWT performance depends on many factors that interact in a complex way. Yeatts and Hyten identify SMWT success factors on the basis of the literature and ten case studies of high- and low-performing SMWTs (
The team’s work cycle synchronicity and the physical location of team members are seen as part of job design within team design characteristics (“shift work”, and “multiple sites” in Figure
Coordination, cohesion and trust within a team can be reduced if teams in different shifts are perceived to work on different terms. There is a tendency to stick to shift assignments, even if resources are available to take over work of another shift. Team members in different shifts often share information through notes or a third party. Mitigations are to assign specific shift communicators, or to organize face-to-face meetings of teams during the shift transfer (
The physical dispersion of team members can negatively affect communication inside and outside the team. It can also inhibit the development of team cohesion (
The team’s stability represents another team design characteristic. High team turnover negatively affects “high coordination and communication as well as consensus regarding team norms” ((
Schwartz et al. add one interesting notion to the discussion in what they call “superteams”. In superteams, technology is not regarded as a “tool and enabler”, but rather as a “team member and collaborator”. Artificial intelligence has the potential to add to the diversity of a team contributing its own style of “’thinking’” (Schwartz et al. 2020).
The agile movement started in 2001 with Agilemanifesto.org (2001) and can be seen as a specific implementation of self-managed work teams as treated in
In fact, there is a trend to view agile and waterfall approaches as being complementary. The Project Management Institute (PMI), which used to be famous for its waterfall methodology, recently reformed its approach and now defines a continuum of development approaches that range from predictive (i.e. waterfall) via hybrid to adaptive (i.e. agile). According to PMI, the right development approach needs to be selected based on the nature of the product, service, or result, and based on project and organizational variables (PMI 2021: 39ff). Similarly, Bittner et al., who propose a methodology to scale Scrum, state that teams need to follow either a waterfall or a Scrum process, but not both at the same time (
According to
For
Regarding co-location, among the twelve principles behind the Agile Manifesto are the following: “Business people and developers must work together daily throughout the project” and “The most efficient and effective method of conveying information to and within a development team is face-to-face conversation” (Agilemanifesto.org, 2001, principles).
Interestingly,
Ockerman and Reindl also view outsourcing of production support critically: “Sourcing strategies that treat people like exchangeable labor inputs are deeply damaging to creating the kind of accountable, transparent, self-organizing teams that are essential to success.” (
Sobel Lojeski and Reilly (2020) state that today’s virtual teams “are simply not really teams” (Sobel Lojeski and Reilly 2020: 191). They prefer to talk about “virtual ensembles”, that are “temporary group formations” similar to “jazz ensembles”, that get together to innovate, to work out problems, and to produce a final deliverable (Sobel Lojeski and Reilly 2020: 191ff). That is why the authors focus more on virtual work than on virtual teams. They define virtual distance as a psychological distance being composed of physical (location-based), operational (day-to-day), and affinity (relationship-based) distance (Sobel Lojeski and Reilly 2020: 69). From a collection of 1,400 studies from many industries and countries over the previous fifteen years, they derive a vertical distance index that weights operational distance twice as much as physical distance, and affinity distance twice as much as operational and four times as much as physical distance (Sobel Lojeski and Reilly 2020: 46f). In fact, while affinity and operational distance have statistical significance regarding key performance indicators, physical distance does not (Sobel Lojeski and Reilly 2020: 99f). Affinity distance comprises four relationship dynamics: cultural, relationship, social, and interdependence distance (Sobel Lojeski and Reilly, 2020: 87).
Sobel Lojeski and Reilly emphasize that nowadays everyone is virtual and affected by virtual distance to the extent smart digital devices are used (Sobel Lojeski and Reilly 2020: xiii). Therefore, the discussion around performance effects of remote work is wrong-footed, as virtual distance does not necessarily depend on physical remoteness (Sobel Lojeski and Reilly 2020: 11). From their own data, the authors show that remote workers (>75% remote) perform better than co-located employees (<20% remote), except for employee engagement (see table 1). There are no significant differences regarding trust, satisfaction, role and goal clarity, and on-time, on-budget project delivery and customer satisfaction between remote and co-located employees (Sobel Lojeski and Reilly 2020: 12f). Full remote workers usually obtain effective support to organize their work, other than employees with an intermediate share of remote work (21-74%) that consequently perform worse (Sobel Lojeski and Reilly 2020: 14, 16) (see table 1).
% of time worked remotely | Citizenship / Helping behavior | Learning | Employee engagement | Innovation |
Less than 20% (less remote) | 2 | 2 | 1 | 2 |
21-50% | 3 | Tie for 3 | 4 | 4 |
51-75% | 4 | Tie for 3 | 3 | 3 |
More than 75% (more remote) | 1 | 1 | 2 | 1 |
Sobel Lojeski and Reilly propose a virtual distance mapping process that includes the identification of key players, the assignment of virtual distance scores, and the location of critical relationship paths, along which virtual distance can be reduced to achieve better organizational outcomes by way of a virtual distance action plan (Sobel Lojeski and Reilly 2020: 126, 150, 174ff).
In the wake of the Covid-19 pandemic that started in March 2020 many books and articles on remote work have been published.
Neeley concludes that agile principles can actually be served better by remote than by co-located teams (
Neeley sees problems in a future hybrid setting with co-located, and remote team members. Subgroup formation easily emerges according to geographic locations of team members. More centralized co-located team members tend to ignore the needs and contributions of other remote team members. Minority subgroups show lower identification with the overall team, and are associated with lower expert knowledge. Teams with single remote workers (“geographic isolates”) lead to feelings of exclusion (
Dyer and Shepherd compare on-site work culture with water polo, and remote work culture with competitive swimming: “Remote work is similar to on-site work, but it’s also different, in the same way that water polo is similar to but different from competitive swimming. … In water polo, teamwork is essential. Players need to know the team strategies and their responsibilities within the strategies. They need to know where their teammates are at all times, and understand what any teammate is likely to do next. They need to be of one mind. In contrast, competitive swimming is a more individualized sport. The swim team practises together, helping and encouraging one another, but when the 50-metre freestyle race starts, it all comes down to individual performance. Your remote team should become like competitive swimmers. There should be collaboration, but an effective remote team depends on solid individual performance” (
Dyer and Shepherd view Scrum as a useful tool for remote work (
Belling discusses concerns that remote work negatively affects innovation. He acknowledges that intensive teamwork on new ideas and on ways to deliver a project, any collaboration that requires tactile experience like prototyping technology hardware, unplanned or spontaneous passive collaboration, casual and unplanned conversations, and the building of mentoring relationships, that co-located teams naturally engage in, cannot be simply transferred to a remote environment. The remote environment lacks spontaneity, which impacts creativity and innovation (
HBR (2021) gives practical advice regarding twenty-eight remote work topics. One section is dedicated to solving problems on a remote team with chapters: “How to Collaborate Effectively If Your Team Is Remote: You need a range of behaviors and skills”, “Managing a Team Across 5 Time Zones: Everyone should share the scheduling burden”, “How to Raise Sensitive Issues with Your Remote Team: Make people feel safe”, and “Ideas for Helping Remote Colleagues Bond: From book clubs to video games” (HBR 2021, section 6). Sber University (2022) represents a comparable resource targeting the Russian market.
The authors foresee a rise in FWP due to benefits from digital technologies and associated cost savings, but they also see that the “amplification of FWP benefits overlooks its pitfalls”, that “the growing adoption of FWP masks the more long-term negative effects on individuals and groups, and that FWP “creates systemic vulnerabilities” (
Papers not covered by the literature review of Soga et. al, include
Yang et al. (2021) analyze e-mails, calendars, instant messages, video and audio calls, and working hours of more than 60,000 U.S. Microsoft employees from December 2019 before the start of the Covid-19 pandemic to June 2020 within the Covid-19 pandemic (Yang et al. 2021: 44). Before the Covid-19 pandemic eighteen percent of the employees worked remotely, as from March/April 2020 virtually all employees had to work remotely (Yang et al. 2021). Results of a causal network analysis are that employees intensified communication within their units, but communicated less with other units. The collaboration network of employees became more static as they added and deleted less connections. Synchronous connections were replaced by asynchronous connections. The means of communication became less rich, that is, there were not only less live meetings, but also less video conferences, and more instant messages, and e-mails. Yang et al. infer that these changes negatively affect transfer and processing of new and complex knowledge, and workers’ output quality. They conclude that, in the long term, productivity and innovation could be impacted (Yang et al. 2021: 649f).
To sum up, the literature review comprises both material from business/management monographs and material from academic research. This is necessary to capture the complex topic of team performance under different management paradigms (traditional and agile) and in different environments (co-located, hybrid, virtual). The material has been categorized under the headers 1) Team performance, 2) Agile teams, 3) Hybrid and virtual teams, and 4) Remote work.
Before moving to the discussion of the literature with respect to the research question in the next section, we would like to touch on the related research stream of peer production, which has developed in parallel to methodologies of agile and virtual teamwork over the last twenty years. Our study focuses on teamwork within companies, whose goal is to produce products and services for customers, in order to make a profit, and where team members have a contractual relationship with the company to be compensated for their work. Peer production in its original form “describes a vast array of self-organized collaborative ventures and distributed work arrangements” and peer producers are “people who create and manage common-pool resources together” primarily in the “digital commons” (O’Neil et al. 2020: 3). Wikipedia and open source software like Linux, Apache, MySQL, Perl/PHP/Python are classical examples of peer production (O’Neil et al. 2020: 3f). O’Neil et al. claim that nowadays “the most technologically advanced forms of peer production have hybridized with the market” (O’Neil et al. 2020: 5). For example, for-profit companies employ open licenses in software development to allow for peer production, while at the same time selling commercial products (O’Neil et al. 2020: 10ff). Another widespread example are social networks, where the peer production of contents is monetized by selling targeted advertisements. Regarding our research question, peer production can be seen 1) as a better alternative to high-performing within-company teams, 2) as a complement to high-performing within-company teams, which provides work effort, creativity and innovation at low cost, and which needs to be integrated into a team’s work, or 3) as a phenomenon, which may be disregarded for the narrower discussion of high-performing within-company teams. In this study, we are not going to discuss peer production any further, but we note for future research that the way peer production deals with self-organized distributed collaboration may have significant effects on the future way of working.
The research question of this study is how the work of high-performing agile teams is affected by the digital transformation into hybrid and virtual formats. In this section, based on the literature review conducted in the previous section, the authors clarify the meaning of the components of the research question - concepts of “high-performing team” and “Agile team” in order to relate the above studies with each other and substantiate a further author’s research on the impact of remote format of work on the team performance.
Yeats and Hyten (1998) show the complex setup of interacting factors that influence team performance (see Figure
The high-performing agile teams that
To sum up, high-performing teams are a well-studied research topic, although further research is needed regarding particular team-related work design decisions on performance measures. In the literature on high-performing teams until the 1990s, co-location represents an important job design characteristic, and its absence is associated with negative effects on team performance. High-performing agile teams can be seen as a specific implementation of high-performing teams as defined by
Sobel Lojeski and Reilly (2020) go one step further by claiming that today’s virtual teams should not be called teams any more, but “ensembles” pointing to the fleetingness of team creation for a certain purpose and team dissolution when the purpose is reached. In a similar vein, for
In this strand of literature, virtualization of team work is seen as a business requirement. This starkly differs from the views in preceding sections, where distance and time were simple team design characteristics, and technology a mere factor in the external environment (
The problems of identification at a distance, collaboration across time zones, and of training needs for ever-advancing collaboration technologies are aggravated, rather than ameliorated by cultural differences in global teams, and by challenges to develop trust, and to implement leadership at a distance in an environment mediated by digital technologies (
The temporary character of virtual teams (to an extent that they might not be called teams any more) emphasized by Sobel Lojeski and Reilly (2020) and observed by
High performance of virtual teams obviously is difficult to reach. In fact, all the factors affecting team performance described by
As authors use different terms to describe hybrid and virtual work formats, it is necessary to define these terms.
Sobel Lojeski and Reilly (2020) take the position that being virtual does not depend on physical location, but on the use of smart digital devices. In their analyses, they make a difference between remote and in-person workers, and measure remoteness on a percentage scale from “less than 20%” to “more than 75%”. These percentages pertain to employees, and not to teams (in line with the authors’ view that virtual teams are actually virtual ensembles). While this way of defining virtual is intriguing, for this study a virtual format means a format that does not allow face-to-face contact, because team members are not the same physical location.
From the proprietary data of Sobel Lojeski and Reilly (2020) shown in Table
The virtual team maturity model of
To sum up, digital transformation and other trends lead companies to explore the virtualization of teams to reap perceived business benefits. The objective of high team performance is put under the additional condition of teams being virtual, a condition that is absent in earlier research. This condition is in contradiction with agile approaches that see increased co-location as a way to increase team performance. The observation that virtual teams are less stable is also problematic from an agile point of view, as agile approaches view team stability as another factor of high team performance. Overall, high performance of virtual teams seems to be difficult to achieve. Nevertheless, the potential high return from the use of virtual teams may justify their creation. Hybrid teams differ from virtual teams in the fact that in a hybrid teams some team members work in a co-located format, while in a virtual team no team member works in a co-located format. Consequently, hybrid teams benefit from more face-to-face contact than virtual teams, but they are subject to location-dependent subgroup formation that undermines team collaboration. While
The Covid-19 pandemic has forced all kinds of teams all over the world from a co-located into a virtual format in 2020. This has led to an increased research interest in the functioning of virtual teams as opposed to hybrid and co-located teams. The broader research, that encompasses workers and teams, runs under the key words “remote work” and “work from home” (WFH).
While Sobel Lojeski and Reilly (2020) see a transformation from co-located teams to virtual ensembles,
To sum up, the Covid-19 pandemic forced all teams into a virtual format on short notice and for an extended period of time. This caused a new research interest in remote work / work from home of individuals and teams.
This concludes the discussion of the literature with respect to the research question. In the discussion, the components of the research question are clarified. The development of thought by academics as well as by subject matter experts is studied over time from classical works on high-performing teams via agile methodologies and hybrid/virtual teams to the post-Covid-19 world of remote work. Commonalities and differences in modeling high-performing teams are described and analyzed. A particular focus is put on comparing virtual teams, and remote work representing full virtualization on the one hand, with agile teams representing co-location on the other hand, as there seems to be a significant difference between these approaches.
The goal of the empirical analysis is to gain first insights into how the Russian companies view the digital transformation of high-performing teams into hybrid and virtual formats and manage them. For this purpose, a set of hypotheses is formulated based on the analysis of the literature, and two empirical studies are carried out.
Following
Hypothesis 1 (H1): It is more difficult to build a new high-performing team in a hybrid or virtual format than in an on-site format.
This hypothesis is motivated by the conjecture that going through the group development sequence of
Hypothesis 2 (H2): The effectiveness of high-performing teams decreases as the work mode changes from an on-site format to a hybrid or virtual format as neither team leaders nor other team members master the collaboration tools needed for virtual team work, or the collaboration tools have deficiencies.
Hypothesis 3 (H3): The creativity and ability for innovation of high-performing teams decreases as the work mode changes from an on-site format to a hybrid or virtual format as personal exchange and close cooperation between team members is very important for innovation.
Hypothesis 4 (H4): The social cohesion of high-performing teams decreases as the work mode changes from an on-site format to a hybrid or virtual format as social relationships can only be maintained to a limited extent in virtual space.
Hypothesis 5 (H5): The cooperation of high-performing teams becomes more conflict-ridden as the work mode changes from an on-site format to a hybrid as there is a fundamental asymmetry between employees on site and employees in virtual space.
The potential for conflicts due to subgroup formation in hybrid teams is discussed in (
The first part of our empirical survey is an interview of HR-heads of the Russian companies. The objective is to obtain information on the existence of high-performing teams, on basic characteristics of high-performing teams, and general risks perceived as being associated with the on-site, and the remote work format, respectively.
The survey was conducted at an HR conference that took place at Lomonosov Moscow State University in June 2022. Out of 113 conference participants, mostly heads of HR-departments of their respective companies, 51 were willing to answer the questionnaire. 32 completed questionnaires were returned, which equals a participation rate of 28%. The industry sector distribution, which is available for a subsample of 15 companies, shows 40% in trade, 27% in transport, 13% each in financial and in general services, and 7% in the extractive industry. Companies present at the conference were not representative of all companies in Russia, but biased towards larger companies with advanced management techniques. For the exploratory nature of our study this potential bias is not a problem because it is of significant interest how this particular sample of companies deal with the subject.
Table
About half of the teams use modern technologies in task management, apply a creative approach, and have a high level of coordination. Interestingly, only a quarter of the teams apply a formulated decision-making methodology, and only a minority (less than 18%) achieves a high level of innovation.
More than half of the respondents declared their willingness for further discussion, and eleven companies participated in the second survey discussed in section 5.3.
In Table
In the subsample of mostly high-performing teams, teams are much more often characterized by clear goals, roles, and responsibilities, and a high level of innovation than teams in the subsample with a share of high-performing teams lower than 50%. On the other hand, teams in the subsample of mostly high-performing teams are less often seen to apply a creative approach than teams in the subsample with a share of high-performing teams lower than half. Differences between the subsamples regarding the other characters are less pronounced.
To conclude the discussion of the quantitative survey results, the most notable observations are as follows: 1) On average, Heads of HR characterize most teams in their companies as high-performing; 2) Heads of HR see most teams as having clear goals, roles, and responsibilities (and even more so if a large share of teams is high-performing); 3) Heads of HR consider few teams as applying a formulated decision-making methodology and having a high level of innovation (and the teams are even less innovative if a low share of teams is high-performing; 4) Counter intuitively, heads of HR do not see a higher share of teams applying a creative approach in companies where the share of high-performing teams is high.
Table
The risks seen in the remote work format mostly concern task coordination, control, and assessment, and social aspects. Other risks addressed by the hypotheses of this study regarding new team creation, use of collaboration tools, innovation, and conflicts in hybrid formats are not mentioned. The risks seen in the on-site work format are partly known from the literature such as “discussion of issues not relevant for work”, “loss of time when travelling”, and “duration of meetings”. Other risks reflect comparative advantages of remote work like “restriction of access to latest technologies”, “lack of flexibility in hiring employees”, and “unclear definition of employee tasks”. Less clear is the risk of “overstaffing”. In agile thinking, the “solution of issues in small talk” would rather be seen as an advantage of the on-site work format than a risk. Interestingly, an “increase in conflicts between employees” is associated with the on-site work format, and not – as in the literature – with the hybrid work format. An overall observation is that the answers regarding a remote work format are more spread out, and do not repeat each other, while there is more consensus among the respondents regarding the on-site work format.
Questions for Heads of HR | Choice of Answers | Result |
1. Does your company employ teams as a form of organization? In case you answer “No”, you do not need to answer further questions. Thank you for your time! |
Yes / No | Valid: 32, Yes: 28, No: 4 |
2. Teams in your organization in their work (select one or several choices): | - use modern technologies in task management | Valid: 28, Yes: 13 |
- are predominantly engaged in the same type of work | Valid: 28, Yes: 1 | |
- apply a creative approach | Valid: 28, Yes: 13 | |
- have a high level of innovation | Valid: 28, Yes: 5 | |
- have clear goals, roles, and responsibilities | Valid: 28, Yes: 18 | |
- have a high level of coordination | Valid: 28, Yes: 12 | |
- apply a formulated decision-making methodology | Valid: 28, Yes: 7 | |
3. Which risks do you see in managing high-performing teams when moving to: | - a remote work format - an on-site work format |
Constructed response (see Table |
4. Approximately what percentage of your organization’s teams do you consider high-performing? | Percentage | Valid: 25, Mean: 56% Min-Median-Max: 15%-60%-100% |
5. Do you feel like further discussing the factors that affect performance of high-performing teams (in the form of an interview or an extended questionnaire)? If you are ready for further cooperation, please leave your contact details. | - Yes + constructed response / No | Valid: 28, Yes: 16 |
Companies that | All | High-Performing Teams | |
>50% | <=50% | ||
- use modern technologies in task management | 54% | 46% | 58% |
- are predominantly engaged in the same type of work | 4% | 8% | 0% |
- apply a creative approach | 50% | 38% | 67% |
- have a high level of innovation | 21% | 31% | 8% |
- have clear goals, roles, and responsibilities | 75% | 85% | 58% |
- have a high level of coordination | 43% | 46% | 50% |
- apply a formulated decision-making methodology | 25% | 23% | 33% |
Remote work format: | On-site work format: |
Control of active working time | Increase in conflicts between the employees |
Potential loss of community spirit | Restriction of access to latest technologies |
Less communication | Discussion of issues not relevant to work |
Lack of balance in the absence of clear tasks | Loss of time when travelling |
The employee getting distracted from work to household chores | Duration of meetings |
Employee coordination | Solution of issues in small talk |
Productivity assessment | Overstaffing |
Loss of connection with the team | Lack of flexibility in hiring employees |
Reduced control over task execution | Unclear definition of employee tasks |
Discipline | |
Lack of information about task execution | |
Loss of management control | |
Cyber responsibilities | |
New cooperation format | |
Disunity of actions |
The second part of the empirical survey is an interview of the members of high-performing teams of the Russian companies. The objective of the survey is to obtain information on high-performing team characteristics in 2019 and in 2021, changes in the work of high-performing teams from 2019 to 2021, and testing the five hypotheses presented in section 4.1.
The survey was performed from April to July 2022. For the purpose of the survey, the authors communicated with high-performing teams at the three companies: “Yandex”, “Gazprombank”, and “Russian Railways”. 32 questionnaires were sent out by means of an electronic platform, and 19 completed questionnaires were returned. In addition, four questionnaires were returned from companies that participated in the first exploratory survey described in section 4.2. The participation rate equals to 53%.
Overall, the survey consists of 8 sections and 49 questions. The sections cover: basic data, the five hypotheses (new team, collaboration tools, innovation, social interaction, and conflicts), and sections on high-performing team characteristics, and on changes from 2019 to 2021. All questions and results are given in Appendix 1.
Table
The Team … | 2019 | 2021 | Trend |
… was highly effective (answer choices: 4 and 5) | 78% | 74% | Down |
… was agile | 74% | 74% | Unchanged |
… followed the Scrum rules | 70% | 65% | Down |
… was of ideal size (5-11 employees) | 70% | 44% | Down |
… was self-organizing | 17% | 17% | Unchanged |
… was cross-functional | 74% | 83% | Up |
… showed results higher or much higher than the sum of the results of individual team members | 67% | 64% | Down |
Table
Table
The overall result is that the first hypothesis that it is more difficult to build a new high-performing team in a remote format (H1), and the second hypothesis that the need of high-performing teams to get accustomed to the (possibly, deficient) collaboration tools in a remote format reduces team effectiveness (H2) are confirmed. The other three hypotheses, that creativity and the ability for innovation of high-performing teams decreases (H3), that social cohesion of high-performing teams decreases (H4), and that the cooperation of high-performing teams becomes more conflict-ridden (H5) in a remote format are rejected.
If we are to compare my team in 2021 and 2019 … (before and after) | Worse | Better | Trend |
… team performance … | 14% | 18% | Up |
… share of individual performance in the team … | 18% | 18% | Unchanged |
… integration of new team members … | 36% | 32% | Down |
… communication within the team … | 27% | 27% | Unchanged |
… creativity and ability to innovate … | 23% | 23% | Unchanged |
… social interaction … | 46% | 9% | Down |
… the frequency of conflicts … | 5% | 27% | Up |
Hypothesis | Assessment of Questions | Overall Judgment |
H1 (New Team) | Q7: Confirmed, Q8: Weakly confirmed, Q9: Weakly confirmed, Q10: Rejected | Confirmed |
H2 (Collaboration Tools) | Q11: Inconclusive, Q12: Inconclusive, Q13: Confirmed, Q14: Confirmed, Q15: Rejected | Confirmed |
H3 (Innovation) | Q16: Rejected, Q17: Confirmed, Q18: Neutral, Q19: Rejected | Rejected |
H4 (Social Interaction) | Q20: Rejected, Q21: Rejected, Q22: Rejected, Q23: Rejected | Rejected |
H5 (Conflicts) | Q24: Rejected, Q25: Rejected, Q26: Weakly rejected, Q27: Rejected, Q28: Inconclusive | Rejected |
Beyond the confirmation or rejection of a hypothesis, a few interesting moments can be pointed out:
To sum up, taking the literature as a basis, hypotheses have been formulated for an empirical analysis of high-performing teams in the Russian companies. With these hypotheses in mind, two surveys have been developed, one targeting heads of HR departments of the Russian companies, and one targeting employees in high-performing teams of the Russian companies. The HR heads see a relatively high share (>50%) of high-performing teams in their companies. In companies where most teams are regarded as high-performing, this is related to a high level of innovation, and a set of clear goals, roles, and responsibilities, but not with a high level of application of creative approaches. Heads of HR are aware of a number of risks in both remote and office formats, although the risks mentioned only partially cover the scope of the formulated hypotheses. Employees in high-performing teams identify only a small deterioration of high-performing team characteristics from 2019 to 2021, i.e. over the time period that most teams were forced to move into a remote format. Most notably, they identify a deterioration of social interactions, but also a reduction in conflicts in the remote format. Other factors remain balanced. Of the five hypotheses, the two regarding new teams, and collaboration tools can be confirmed, while the three regarding innovation, social interaction, and conflicts are rejected. Overall, the results are mixed, and mostly inconclusive. One reason for this may be a relatively low number of the respondents in the two surveys (32 in the HR Heads survey =, and 23 in the survey of high-performing team members). For further research, it would be necessary to increase the number of companies and respondents that work in hybrid and virtual formats.
This study seeks to answer the research question of how the work of high-performing agile teams is affected by the digital transformation into hybrid and virtual formats.
The motivation for this research question is based on the following three observations: 1) In the business world, there is a general impression that agile teams belong to the highest-performing teams; 2) Agile methodologies view co-location of agile teams as an important determinant of high performance; and 3) The Covid-19 pandemic has forced all teams into remote work for an extended period of time, and may have effected a change in team work from a co-located to a hybrid/virtual format.
This study consists of an extended literature review, discussion of the literature with respect to the research question, empirical analysis exploring the situation in the Russian companies, and this conclusion, which outlines the answer to the research question. The literature review is divided into the research areas: 1) Team performance, 2) Agile teams, 3) Hybrid and virtual teams, and 4) Remote work. While the literature review represents those ideas and thoughts from the selected literature that are relevant to the research question, discussion of the literature clarifies the meaning of the components of the research question, relates the different strands of research with each other, and collects insights regarding the research question. The empirical analysis starts from a set of hypotheses regarding potential downsides of high-performing team work in hybrid and virtual formats. The hypotheses concern the setup of new teams, use of collaboration tools, creativity and ability for innovation, social cohesion, and intra-team conflicts. The hypotheses form the background for the two surveys at the Russian companies. One targets heads of HR with the objective of collecting general information on high-performing teams, their characteristics, and risks associated with office and remote work formats. The other targets members of high-performing teams with the objective of obtaining specific information about their work in an office in 2019 before the Covid-19 pandemic, and in a remote format in 2021 during the Covid-19 pandemic.
The main conclusions of our study are as follows:
There is a long-standing tradition of academic view on teams and team performance, factors influencing team performance are well-studied with future research needs being defined. Over time, researchers and practitioners have developed numerous tools to improve team performance.
Since their inception at the beginning of the 2000s, agile teams have become a synonym for high-performing teams in the business world. From software development in the U.S. they have spread to many industries and to many countries all over the world. Before the Covid-19-pandemic, for most agile teams, co-location represented an important condition for high performance. Only for globally distributed agile teams, the co-location requirement was weakened, and tailored to the circumstances, likely at the cost of reduced team performance.
In parallel to the development of agile methodologies, the digital transformation and other trends have led to the increase in the number of hybrid and virtual teams over the past twenty years. In general, it is difficult to achieve and sustain high performance of virtual teams, but extraordinary returns of their use may justify their formation. Many tools have been proposed that can be used to improve performance of hybrid and virtual teams.
Before the Covid-19-pandemic, virtual and agile teams were mostly seen as incompatible, because virtual teams are not co-located, while agile teams usually are, and because virtual teams are often of a temporary nature, while agile teams are based on stability.
The Covid-19 pandemic has impressively shown the capabilities of hybrid and virtual teams in a large-scale world-wide real-life experiment. Many academics and practitioners alike were surprised by these factual capabilities, and started to adjust their concepts of high-performing team work, basing them on the assumption of remote work. These new conceptions put more weight on individual, rather than collaborative work, and include face-to-face work periods for innovative activities, team-building, or specific activities like pair programming. Digital agile tools are deemed to be useful in these conceptions to increase team performance. These new ideas mean that the conceptions of agile and virtual teams are no longer juxtaposed, but united.
The current discussion in business does not revolve around the question agile versus virtual, but around the question, whether a hybrid or a virtual format is preferable. The hybrid format is characterized by more face-to-face contact, but also by location-dependent subgroup formation, and by larger infrastructure costs, while the virtual format treats all team members equally, independent of physical location, and is more cost-effective, but is characterized by less face-to-face contact.
The recent studies show mixed results regarding the new propositions.
The empirical survey of the authors shows mixed results as well. The survey of heads of HR reveals that many teams are seen as high-performing, which is related to having clear goals, roles, and responsibilities, and a high level of innovation. The risks that heads of HR-departments identify in the remote work format mostly concern task coordination, control, assessment, and social aspects.
The survey of high-performing teams in the Russian companies provide support for two of the five hypotheses. Building new high-performing teams is more difficult in a remote format compared to the co-location mode. Collaboration tools still show weaknesses and their use requires dedicated training. The other three hypotheses regarding innovation, social interaction, and conflicts cannot be confirmed, although respondents report a clear deterioration of social interaction from 2019 to 2021. In both surveys, we observe a decrease in conflicts in remote work formats, which contradicts to our fifth hypothesis stating that conflicts in a hybrid format are more likely than in the co-location mode.
Overall, we conclude that high performance of teams generally is difficult to achieve and difficult to sustain. From our analysis, we believe that collaboration in teams is more difficult to achieve and sustain in a virtual format rather than in the co-located one. Yet, the objective of the team can justify either the additional investments to reach the needed level of collaboration, or being satisfied with a lower level of collaboration. For example, a global business project may have such high returns that it is worth making high investments to improve the collaboration of the assigned globally distributed project team, or it may have high returns even though the collaboration of the assigned project team is less than optimal. For another example, a product development project may rely so much on creative and innovative collaboration, that it can only be done in a co-located manner, as compromises on collaboration are not acceptable, and investments are prohibitive to reach the needed level of collaboration in a virtual format. For a final example, if the team members live in the same city, a co-located or a hybrid format are likely to lead to higher team performance than a virtual format.
The digital transformation has expanded the possibilities of high-performing agile team work in hybrid and virtual formats. Yet, this does not mean that all agile teams ought to work in hybrid and virtual formats. Companies will have to decide for each of their agile teams, whether a co-located, a hybrid, or a virtual format is optimal given the team’s specific objective.
Sber University (2022) Management of Remote Teams and Employees. https://courses.sberuniversity.ru/leadingremoteteams
Agilemanifesto.org: Manifesto for Agile Software Development https://agilemanifesto.org/.
HBR (Harvard Business Review) (2021) HBR guide to remote work. Harvard Business Review Press: Boston. URL: https://www.oreilly.com/library/view/hbr-guide-to/9781647820534/
Mullenweg M (2020) Distributed Work’s Five Levels of Autonomy. https://ma.tt/2020/04/five-levels-of-autonomy/.
PMI (Project Management Institute) (2021) The standard for project management and a guide to the project management body of knowledge (PMBOK guide). 7th edition. PMI Inc., Chicago. URL: https://ibimone.com/PMBOK%207th%20Edition%20(iBIMOne.com).pdf
Schwartz J, Eaton K, Mallon D et al. (2020) Diving deeper: Five workforce trends to watch in 2021. URL: https://www2.deloitte.com/us/en/insights/focus/human-capital-trends/2021/workforce-trends-2020.html
1. Enter your age | up to 30 years old: 34.8%, <br/> 30-39 years old: 47.8%, <br/> 41-50 years old: 8.7%, <br/> 51-60 years old: 4.3%, <br/> 61 and older: 4.3% |
2. Your gender | male: 60.9%<br/> female: 39.1% |
3. How many years have you been working in the company? | less than 1 year: 21.7%<br/> 1-3 years: 34.8%<br/> 3-5 years: 13%<br/> 5-10 years: 13%<br/> over 10 years: 17.4% |
4. Current position | employee with no subordinates: 47.8%<br/> middle manager: 34.8%<br/> top manager: 17.4% |
5. What percentage of your work time over the past year did spend in the office? | no more than 25%: 34.8%<br/> 25-50%: 17.4%<br/> 50-75%: 21.7%<br/> 75-90%: 4.3%<br/> 90-100%: 21.7% |
6. What mode is your division currently operating in | face-to-face: 34.8%<br/> remote: 17.4%<br/> mixed: 47.8% |
7. Which of your colleagues do you trust the most? (Colleagues with whom you work together in the office: 47.8%, colleagues with whom you work as part of a hybrid team: 13%, equally: 39.1%), 8. Suppose a project team has been created in a hybrid work environment. In your opinion, in what case will work be carried out more efficiently? (if you distribute voluminous individual tasks between the group members and at the end combine the results at the manager level: 39.1%, if you regularly sum up the results in the subgroups of the project and involve more employees in one subtask: 56.5%, other: 4.3%), 9. How is it preferable to organize the work of a newly hired “hybrid” employee during the probationary period? (mainly in the office, and after he adapts, transfer to a hybrid format of work: 47.8%; immediately adapt in a hybrid, that is, partially remote format: 52.2%), 10. In your opinion, can employees, who originally worked full-time at the company, fully adapt to work after a hybrid transformation? (yes: 91.3%, no: 4.3%, other: 4.3%) (23 answers)
11. While working remotely, what is your preferred method of communication when a question arises in your current job? (telephone: 26.1%, email: 52.2%, messenger: 78.3%, online meetings: 56.5%), 12. In the office, what is the priority method of communication you will use when a question arises in your current work? (telephone: 39.1%, email: 43.5%, messenger: 65.2%, online meetings: 21.7%), 13. Are you personally more productive when working remotely or in the office? (when working remotely: 26.1%, in the office: 43.5%, hesitant: 30.4%), 14. Is it customary in your organization to discuss work issues in the office in an informal setting, for example, in a canteen, a smoking room, etc.? (yes: 81.8%, no: 13.6%, hesitant: 4.3%), 15. Do household irritants interfere with your work remotely (noise from family members, limited space, etc.)? (yes: 34.8%, no: 56.5%, hesitant: 8.7%) (23 answers, except question 14 with 22 answers)
16. Are you more likely to receive new tasks on your own initiative or at the behest of the management? (only by order of the management: 8.7%, more often at the direction of the management: 60.9%, more often on their own initiative: 17.4%, always on my own initiative: 13%), 17. During remote work, is it more convenient for you to receive tasks from the manager clearly formulated or to agree on them during the course of a discussion with the manager? (always clearly articulated: 30.4%, always in discussion: 47.8%, hesitant: 21.7%), 18. What can prevent you from being creative in solving problems in a remote work format? (management decision: 39.1%, lack of motivation: 60.9%, other: -), 19. Do you think that when working remotely your work has become more formalized? (yes: 4.3%, no: 87%, hesitant: 8.7%) (23 answers)
20. If you have questions about working remotely, who would you rather turn for advice to? (check all that apply: to your leader: 56.5%, to a subordinate: 13%, to an employee of your level: 91.3%, I’ll wait until the issue is resolved by itself or becomes irrelevant: 8.7%), 21. While working in the office, if you have questions, who would you like to turn to the most? (check all that apply: to your leader: 52.2%, to a subordinate: 13%, to an employee of your level: 91.3%, I’ll wait until the issue is resolved by itself or becomes irrelevant: 4.3%), 22. Do you have the opportunity to contact your supervisor with a question? (yes: 91.3%, no: 8.7%), 23. Do you have the opportunity to remotely control the work of your colleagues (subordinates) while working? (yes: 82.6%, no: 17.4%) (23 answers)
24. Will you be able to ask for help and get it from a colleague on an issue that is not part of his/her direct duties? (yes: 65.2%, no: 4.3%, not always: 30.4%), 25. In the event that, due to the oversight of your colleague, the unit could not complete the work on time, who will correct the error and be responsible? (colleague: 21.7%, whole team: 52.2%, supervisor: 26.1%), 26. Do you think your manager devotes enough time and attention to communicating with you? (yes: 65.2%, no: 34.8%), 27. Have you had conflicts while working remotely and, if so, with whom? (yes, with colleagues: 8.7%; yes, with direct guidance: 0%; yes, with top management: 4.3%; no: 91.3%), 28. Describe one of the conflicts and specify, please, how it was resolved? (Nine constructed responses) (23 answers, except question 28 with nine answers)
29. How effective was your team in. 2019 (minimum: 1: 13%, 2: 0%, 3: 8.7%, 4: 39.1%, maximum: 5: 39.1%), 30. In 2021? (minimum: 1: 13%, 2: 0%, 3: 13%, 4: 26.1%, maximum: 5: 47.8%), 31. Was your team an agile team in 2019 (yes: 73.9%, no: 26.1%), 32. In 2021? (yes: 73.9%, no: 26.1%), Did your team follow the Scrum rules 33. in 2019? (yes: 69.6%, no: 30.4%), 34. In 2021? (yes: 65.2%, no: 34.8%), Number of employees on your team 35. in 2019? (less than 5 people: 8.7%, 5-11 people: 69.6%, more than 11 people: 21.7%), 36. In 2021? (less than 5 people: 13%, 5-11 people: 43.5%, more than 11 people: 43.5%), Was your team self-organizing (without formal leadership) 37. In 2019? (yes: 82.6%, no: 17.4%), 38. in 2021? (yes: 82.6%, no: 17.4%), Was the team cross-functional 39. in 2019? (yes: 73.9%, no: 26.1%), 40. in 2021? (yes: 82.6%, no: 17.4%), Results of my team 41. in 2019 (equal to the sum of the results of individual team members: 33.3%, above the sum of the results of individual team members: 52.4%, much higher than the sum of the results of individual team members: 14.3%), 42. in 2021 (equal to the sum of the results of individual team members: 36.4%, above the sum of the results of individual team members: 45.5%, much higher than the sum of the results of individual team members: 18.2%) (23 answers, except question 41 with 21 and question 42 with 22 answers).
If I compare the position of my team in 2021 with the position of my team in 2019, 43. the team performance (decreased: 13.6%, increased: 18.2%, hasn’t changed: 68.2%), 44. the share of individual performance in the team (decreased: 15.2%, increased: 18.2%, hasn’t changed: 63.6%), 45. integration of new team members (has become more difficult: 36.4%, has become easier: 31.8%, hasn’t changed: 31.8%), 46. communication within the team (has become more difficult: 27.3%, has become easier: 27.3%, hasn’t changed: 45.5%), 47. creativity and ability to innovate (decreased: 22.7%, increased: 22.7%, hasn’t changed: 54.5%), 48. social interaction (interaction with other colleagues outside the team) (decreased: 45.5%, increased: 9.1%, hasn’t changed:45.5%), 49. the frequency of conflicts (decreased: 27.3%, increased: 4.5%, hasn’t changed: 68.2%) (22 answers).
Olga A. Zolotina – PhD, Assistant professor of Labour Economics Department, Lomonosov Moscow State University, faculty of economics, Moscow, 119991, Russia. Email: zolotina.o@gmail.com
Tatiana O. Razumova – PhD, Professor, Head of Labour Economics Department, Lomonosov Moscow State University, faculty of economics, Moscow, 119991, Russia. Email: tatiana.razumowa.new@yandex.ru
Yaroslav A. Sotnikov – Deputy dean of Lomonosov Moscow State University, faculty of physics, Moscow, 119991, Russia. Email: e320@bk.ru
Anton V. Nastavnyuk – Head of regional office, Territorial Compulsory Medical Insurance Fund of the Chelyabinsk Region. Chelyabinsk, 454080, Russia. Email: nastavnyuk69@mail.ru
Hergen Frerichs – PhD Finance, Risk & Compliance Manager, Berlin, 10407, Germany. Email: hergen.frerichs@posteo.de