The term virtual team denotes an organizational team whose members rarely meet face to face but who nevertheless perform interdependent tasks in pursuit of collective goals. This article identifies the unique aspects of virtual teams that generate major barriers to their effectiveness, and suggests ways in which these may be either overcome or mitigated. A process-oriented model of virtual team effectiveness is presented, identifying issues associated with the development of transactive memory systems, work engagement, and collective efficacy as major challenges to virtual team effectiveness. These issues are illustrated with reference to the experience of virtual teams within a minerals processing firm. Finally, the authors discuss aspects of virtual team leadership and team climate that may help overcome some of the potential process losses associated with virtual teamwork. C 2008 Wiley Periodicals, Inc.