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Leaders of the U.S. government and U.S. organizations continue to seek information to mitigate risk and improve project deliverables in virtual environments. The problem addressed in this study was the rapid growth of technology in virtual workplaces that causes organizational leaders to concentrate on infrastructure and technology. The purpose of the exploratory case study was to understand the challenges virtual leaders encounter in the government environment that affect project delivery. The research questions were designed to examine the challenges virtual team leaders encounter while maintaining their roles and responsibilities to complete a project successfully in a timely manner. The theory of constraints was the framework used to address the problem of virtual leaders who struggle to complete project deliverables. Data were collected from 11 government virtual leaders via an online anonymous questionnaire and were triangulated via a reflective journal and notes from a checklist filled out by the participants who reviewed their own virtual team documents, logs, and recordings that served as firsthand knowledge. Data analysis led to several patterns and themes including communication, trust, and collaboration challenges for virtual leaders. Organizational leaders can use this study's findings to develop efficient and effective ways to engage with virtual leaders to achieve effective project deliverables and impact change in virtual environments in the 21st-century workplace.