This report examines the crucial role of interpersonal skills in project management, particularly within the context of managing a virtual team. The author, a project manager, details the challenges of motivating a geographically dispersed team without direct interaction, emphasizing the need for a team-based reward and recognition system. The report outlines the process of establishing performance criteria, structuring the incentive plan, and determining the administrator of the system. It addresses the importance of mandatory participation, weekly performance reviews, and the implementation of 360-degree feedback to ensure team success. The author also considers the impact of lacking a video conferencing system and how to overcome this through telecommunication and email-based feedback processes, including references to relevant sources.