Virtual Distance is defined as the perceived distance between two or more individuals, groups, or organizations that is brought on by the use of electronic versus face-to-face communications. The greater the Virtual Distance among the members of a team, the more problems team members will experience. Among them: miscommunication, lack of clearly defined roles, and even personal and cultural conflicts. It does not matter whether team members are widely distributed or collocated; every team is potentially subject to the risks of Virtual Distance.

Organizations that have managed virtual distances well report:

• Innovation behavior increase by 93%
• Trust improves by 83%
• Job satisfaction is better by 80%
• Role and goal clarity rise by 62%
• On-time, on-budget performance is better by 50%
• Helping behaviors go up by almost 50%

Source: Uniting the Virtual Workforce