A recent article in Discover Magazine by Jaron Lanier states that the biggest problem with videoconferencing involves eye contact: “Since the camera and the display screen are separate objects, each time you look at the the screen you shift your eyes from the camera. Someone watching you in a video conference notices that you constantly look away. If the camera is above the screen, you always appear to be looking down. Studies show this lack of eye contact reduces trust, collaboration effectiveness, and satisfaction with the interaction.”

I’ve found that another big problem with videoconferencing is the lack of “small talk.” Informal (non-business related) conversations almost always take place in face-to-face meetings - and this is another way to build trust and rapport.

What’s your experience?

For generations, Proctor & Gamble generated most of its phenomenal growth by innovating from within. They hired the best global talent and built huge research facilities. And for a long time, that strategy worked just fine. But in 2000, new appointed CEO A.G. Lafley dispensed with the company’s age-old “invent it ourselves” philospphy and created a “connect and develop” approach which uses the world as a giant idea factory.

Today the company searches everywhere for proven technologies, packages, and products it can improve, scale up, and market. Now the company collaborates on a massive, geography-defying scale with suppliers, compettitiors, scientists, and entrepreneurs.

P&G isn’t the only organization looking outward. According to IBM’s Global CEO Study 2006, leaders today are increasingly seeking innovative ideas beyond company walls. In direct contrast to past copporate doctrine, where innovation was considered too critical and proprietary to involve outsiders, major strategic alliances are quickly becoming the new competitive edge. As a client of mine put it, “The competition can hire away individual talent and the can duplicate our processes - but our intricate networks of relationships with employees, customers, global partners, regulatory bodies, and suppliers is ours alone. It can’t be copied. Every organization has to start theirs from scratch.”