Manager's Guide to Virtual Teams

Chapter 11Teaching Finance Fundamentals to Virtual Teams

A business that makes nothing but money is a poor business.

—Henry Ford

Companies are in business for more reasons than making money. But it is a naive virtual team manager who ignores the importance of profitability. Even though virtual team members are often more highly educated than their collocated counterparts, the methods for tracking profit and determining how to make good business investment decisions are often like a foreign language to them. A basic understanding of a few key financial concepts can serve as another substitution for hierarchy (in addition to the business basics discussed in the last chapter).

For example, when virtual team members understand their team budget, ...