Designed for managers and workers in virtual organizations as well as adult and continuing educators in higher education, associations, and private sector, this book outlines a customer-driven performance management system and explains its use as a development tool. The characteristics of virtual organizations are described, and the rationale for a customer-driven philosophy is presented. The performance management system is outlined in terms of manager, customer, and employee roles, and the system's application to virtual teams is illustrated through a discussion of orientation, accountability, standards, measurement criteria, recruitment, selection, training and development, and rewards and recognition. The unique training and development issues in virtual organizations are considered for these three groups: virtual workers, traditional workers, and managers. A chapter of case studies is framed as a set of 10 guidelines for managing and training. A key issue discussed throughout the book is the importance of trust among members of a work team who may never have met, making preparation for new working styles and different interpersonal relationships necessary. Key points are summarized at the end of each chapter. (Contains 43 references.) (SK)