07 May 2014, 00:00

Consultant Tips: Composed Teams

Having worked with the heads of major international companies for almost 20 years, I have repeatedly seen how strong top teams become one of the most important sources of competitive advantage. Research we conducted jointly with Harvard University shows that 35% of investment decisions are made based on non-financial information, and therefore largely intuitively, through negotiations and the synergy of vision among team members.

However, it is easy to mistake a dysfunctional team for a good one. This is very dangerous if we consider the team as a serious competitive advantage, which can cost the company up to 45% of profits.

The first thing that comes to mind when you think of a dysfunctional team is conflict and confrontation. Yes, but a team in which harmony reigns can also be dysfunctional. The main sign of a dysfunctional team is that as a team it does not bring any additional value to the company. Its participants hold meetings, share information, but do not create anything together; everyone works “in their own area.”

The key word here is synergy. This does not imply “vanilla” consent at all. Quite the opposite. Tough, challenging negotiations must take place in teams. This is the key to success. It is these conversations that move the company forward; they are a source of ideas, innovation and inspiration - for team members and the entire organization.

Research has allowed us to identify the main characteristics of a productive team.

A clear goal with a high level of interdependence among team members.

A clear understanding of who should be on the team (this means that the top management team should not be built on the principle of hierarchy, as is usually done, but formed based on specific goals).

The team must be stable for a certain period of time in achieving its goals.

To build such a team, the company must meet the following conditions:

Each participant must know and share the goal of the team.

Creation of an optimal structure - size, boundaries of team responsibility. It is known that the optimal number of team members is 6-8 people. The team can include more people, but this will require incredible leadership efforts on the part of the first person.

Selecting the right people who are capable of discussion and empathy. This does not mean recruiting smarter or more talented people. The team must include people who are ready for productive conflicts, who are ready to understand what other people with whom they are in the same boat are thinking and feeling.

Support for each member and the entire team as a whole. This means having a culture that promotes teamwork and provides the team with the information they need to make decisions.

Providing development opportunities for each member and for the entire team as a whole. It is important to regularly analyze both personal results and the results of the entire team - what are the achievements and failures, what experience has the team gained and what does it mean.

A strong team allows companies to achieve more than each of its members could do alone. With its help, a company can get not just good, but very good results, which, as we know, play a key role in competition.