In virtual teams, members are physically distributed and often have not met each other in person. They work together and share information via electronic communication. To address business problems in a timely way, virtual teams must quickly become effective upon formation. However, prior studies have found that virtual teams are ineffective initially because electronic communication does not facilitate building of shared understanding among team members. This study proposes a dialogue technique that facilitates building of shared understanding in virtual teams. Results from an experiment showed that virtual teams which used this technique had better relational development and decision outcome than those which did not. Moreover these differences remained over time. Therefore, the dialogue technique appears to be useful for helping virtual teams become effective quickly so as to address business problems without unnecessary delays.