Karen Sobel Lojeski has been on the cutting edge of research on virtual teams for years.  According to her comprehensive analysis, high virtual distance (physical, operational and affinity), equates to a 93% decrease in the virtual team’s innovative behavior (http://sloanreview.mit.edu/files/saleable-pdfs/50412.pdf).  A virtual team that lacks innovation, will be limited with adapting to change, integrating new perspectives and ultimately achieving dynamic goals.  As a result, it is critical that regardless of the level of virtual distance, the virtual team creates an environment where innovation is fostered and nourished on a consistent basis.  A solution to the challenge of innovation in a virtual environment is for the team to create and deploy a New Idea Factory.  The presentation below builds on the discussion within the 7 Essentials for Managing Virtual Teams book and provides and a step-by-step process to ensure innovation is a cornerstone for today’s virtual teams.