Companies must be able to respond flexibly and quickly to technical and organizational changes in their operating environment. In order to adapt to these changes, companies form virtual teams to manage project work on virtual paths. By utilizing a virtual team, companies are able to step beyond their traditional boundaries, allowing them to build up a team of experts around the world. This point can constitute a big advantage for the company. Unlike traditional companies, where only the location-based staff is available to set up a project team, a significant benefit for the company can be achieved by bundling these experts, as the tasks can be given to the expert with the highest expertise. However, in addition to several advantages, the virtual organization carries with it many challenges for the team leader. On one hand, managers must be able to guide their team to virtual success by overcoming distance. On the other hand the team leader has to fulfill the expectations of the team employees. Additionally, the team leader has to contend with all traditional and virtual leadership challenges, including creating a team culture, defining a situation-based leadership style, motivating, setting up a communication plan, managing conflicts and evaluating the finished work and performance of team members. Virtual executives have developed and adapted various leadership tools to aid in guidance on the virtual path.