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The purpose of this paper is to investigate the use of an integrated approach for performance improvement of virtual teams (VTs) in third-party logistics (3PL) through the integration of performance management (PM), visual management (VM) and continuous improvement (CI) initiatives into one coherent system. The paper will also propose a methodological framework to establish such a system. The intended integrated system is called as integrated visual management (IVM) throughout this paper.

This research is based on a case study that took place in a 3PL context with 19 VTs of different sizes spread across Australia. Many major 3PL companies provide their services either internationally or nationwide and therefore use VTs on a regular basis. The selected company does the same. This case was picked as representative of the many complexities which VTs face in 3PL settings, e.g. geographical and temporal separations; different skill levels within the team and between different team bases; multi-teaming system; high staff turnover; recurring performance problems and firefighting approach to problem-solving; and highly demanding performance requirements from clients. Further, this case study, being of a newly established contract and team, enabled the observation of the team dynamic and complexities from the earliest stages. In addition, as the main author of the paper was part of the managerial layer of the studied VT, this provided it a unique opportunity to escape the usual bureaucracy and rather focus on the research. This study also includes a literature review on VTs along with PM, VM and CI, which comprises IVM.

It was found that an integrated approach to PM, VM and CI was effective in systematically improving the VT performance. The framework for implementing IVM was productive and enabled to successfully plan and deploy the improvement intentions. Even though the team was highly virtual and encompassed a range of situational challenges, including different skill levels, a multi-teaming system and a high staff turnover, nevertheless, through IVM, the results met and exceeded performance targets on a sustainable base. Inventory record accuracy, dispatch on time, delivery in full on time and dock to stock were improved by 45, 62, 22 and 25 per cent on average, respectively.

The originality of the paper comes from its methodological approach to performance improvement for VTs in 3PL contexts through integrating PM, VM and CI systems into one coherent system, IVM.

The purpose of the paper is to study the interconnections between visual management, performance management and continuous improvement programmes and to suggest a practical framework to establish an effective visual management programme in association with performance management and continuous improvement systems. For the sake of simplicity, this paper refers to such a programme as integrated visual management (IVM) throughout this paper.

The following research included proposals and discussion, which were based on a case study which took place at a quality assurance (QA) department in PACCAR Australia, a global premium truck manufacturer, as well as authors’ own findings and experience, in addition to a literature-based review on visual management, performance management and continuous improvement. A systematic approach was followed to establish an effective IVM system. This paper is composed of two sections. Some of the most important literatures on visual management, performance management and continuous improvement are reviewed in the first section. Then the findings, as well as some other author findings, on why visual management works are summarised. The second section is dedicated to the case study.

Visual management can provide a simple and yet effective solution to enhance information flow in organisations. However, for visual management to yield its full benefit, it needs be part of a bigger plan. It has to be linked to a performance management programme, which provides input into visual management, and a continuous improvement initiative, which receives inputs from visual management. This paper proposes a practical framework to establish an IVM programme and provides a detailed description of its phases. The paper also presents the results achieved, during our case study, and views on the integration benefits, as well as on how to successfully implement an IVM programme. A systematic approach to establish an effective IVM system was followed. It laid a solid foundation to facilitate an effective flow of information in QA in its respective areas. This programme not only improved an understanding of the processes and raised awareness about the performance and associated issues, it also boosted transparency, discipline, shared ownership, team involvement and scientific mindset. It assisted in achieving significant and concrete process improvements. It helped in establishing a productive continuous improvement programme. It was observed that while visual management, performance management and team or company continuous improvement programmes each served a benefit individually, when they were linked together, as a whole, their synergy allowed for more significant achievements.

The scope of this research is limited to use of visual management to manage performance and to lead continuous improvement initiatives. The research was performed in a manufacturing environment. Even though it is believed that the suggested framework for IVM and the findings are applicable to other business environments as well, further research in this direction is required. Also, the interconnection between visual management, continuous improvement and performance management based on a case study was investigated. More quantitative researches, on bigger scales, are required to better understand the mentioned interactions and to enhance our knowledge of these tools in a holistic manner.

The originality of the papers comes from its holistic approach to visual management, performance management and continuous improvement programmes and the suggested framework to establish an IVM programme.