This article is titled, “Six Strategies for Managing Telecommuters,” but is also pretty good reading for those telecommuters being managed.
From the link, strategy number four:
4. Establish clear performance standards.
Again, every team needs to have performance standards and expectations, but this is particularly vital when the manager is unable to observe behavior directly. The team needs to understand not only what they are going to achieve, but how they will achieve it. When people come from a diverse set of experiences, functions, and possibly even divisional or geographical cultural backgrounds, it should not be assumed that they all share the same perspective about what constitutes quality or excellence. This is an opportunity for the leader to set benchmarks, suggest sharing of best practices, and encourage the team to clearly articulate standards by which their performance will be evaluated.