The design of distributed or virtual enterprise organizations is a complex activity requiring the evaluation of process competencies of multiple potential participants. This analysis must also incorporate the functional requirements for the desired product or service as specified by the intended customer. Experience in non- distributed business environments show that failure to meet customer needs can lead to a worsening competitive position. This paper presents a methodology based on quality function deployment design methods for delineating responsibility for process components in a virtual enterprise. A brief description of the design requirements for the virtual enterprise is presented. The methodology defined in this paper provides the link between customer needs and the process competencies provided by participants in the venture.