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The purpose of this article is to provide guidelines to help leaders understand and lead virtual teams.

This paper discusses the importance and implementation of effective leadership for virtual teams. It begins with a review of conventional versus virtual teams, and then describes the two primary leadership functions in virtual teams – performance management and team development. Following the discussion of the development and function of new teams, the article then provides a detailed guide for the leadership of virtual teams over the life of a project. These guidelines follow the four stages of a project timeline: Pre‐Project, Project Initiation, Midstream, and Wrap‐Up.

Following guidelines and understanding the differences between conventional and virtual leadership will enable managers to become effective virtual team leaders.

The paper shows how, in the context of increasing globalization and technology, leaders can manage the challenges of leading virtual teams.