Copyright (c) 2007 Chiswick Consulting Limited
A study undertaken by Ernst and Young Centre for Business Innovation showed a direct link between top team effectiveness and company valuation. The survey concluded that 35% of an investment decision was driven by non financial data such as "execution of corporate strategy" and "management credibility". Moulding and shaping the top team is a key function of the CEO's role but few get it right. What are the characteristics of an effective top team and what can a leader do to deliver top team effectiveness?
How do you define a team?
A real team has a task that demands a high level of interdependency ' something that can only be accomplished together as a team. The team also has reasonably stable boundaries so that membership is not constantly changing and it is easy to tell who is on the team.
What makes a team effective?
Richard Hackman of Harvard University, working with the Hay Group, identified five conditions of top team success:
- Clarity of Direction
- Appropriate Structure and Rules of Working
- Right Mix of People
- CEO Support and Sponsorship
- Individual and Team Development:
It is easy to make the assumption that a top team made up of successful, strong willed individuals, does not require help from the CEO. Research that Hackman and others have undertaken compares highly effective top teams with average or poor performing teams. The research suggests the CEO can and should play a major role in delivering the team's success.
What the CEO can do:
1. Communicate a clear and distinct direction.
Leaders of effective teams communicate a vision to the team rather than assume that the team shares it. If the leader doesn't communicate this vision a vacuum is created, one that all members rush to fill with their own individual priorities and goals. These individual goals do not add to the collective or interdependent goals.
In short, leaders of effective teams communicate a vision to the team rather than assume that the team shares it.
2. Create an appropriate structure
Size matters! A CEO who wants to create a successful team will populate it with 6 to 8 team members and no more. More individuals may mean competing interests, more personality clashes and a greater risk that factions will form. A CEO may let the team grow if he or she is fearful of offending key players, however, the question the CEO must always ask is "Given the team's goal, do they have the expertise to deliver it?".
Set the rules. CEO's will facilitate effective team working if they overtly define two or three 'norms' or ways of working for the group. Rules such as 'don't play politics', 'turn up on time', 'deliver what you say you will' clarify for the team what is and is not accpetable behaviour. The CEO has a role to play in enforcing these rules and other procedures such as effectiveness of team meetings.
In short, leaders of effective teams don't play politics but focus on what and who will deliver the goal.
3. Get the right mix of people working together
People on outstanding teams are not necessarily more driven, nor more committed than members of less accomplished teams. What people on the best teams contribute is the ability to work with others.
In particular, CEO's can facilitate outstanding performance by recruiting people with two critical characteristics:
Empathy ' the ability to understand others. This involves listening to others and is critical to buy in ' members of a team will only buy in to the team process if they feel they are both heard and understood. Resentment builds if people feel they have not been listened to.
Integrity ' behaving consistently with the organisation's values ' even when it may be risky to do so. Integrity is critical as it involves individual team members trusting one another to deliver what they say they will.
In short, leaders of effective teams must recruit team members with empathy and integrity and lead by example by speaking their mind and 'walking the talk'.
4. CEO Support and sponsorship
CEO's can ensure the effective performance of the top team by providing information, data and resources to deliver the team goals.
Compensation structures which encourage and reward team members who buy in to the team goals, send a strong message about what a company values.
In short, leaders of effective teams support and reward team based behaviours
5. Provide Individual and Team Development
CEOs of outstanding top teams review team performance openly discussing how the team is doing, what it is doing well, what it is doing poorly and what its members have learned.
These same CEO's also provide individual coaching to team members.
In short, leaders of effective teams review performance and coach individuals and teams to get better.
An outstanding top team delivers real benefits: - they advance the CEO's agenda much more quickly than an average or poor performing team and they enable a company to weather the tough times more effectively (because all members share and buy in to the same vision). Outstanding top teams are not an accident - they are developed and nurtured by the CEO who recognises their power and value.
Related Articles
7 Gifts to Give your CEO
By: Michael Mercer, Ph.d. | 13/12/2006 | Leadership
In this holiday season, people love to receive gifts. Well, what gifts would your company’s CEO love to receive from you? Dr. Mercer reveals seven “gifts” you really need to go all out to give your CEO.
How to Be an Ideal Leader for Your Business
By: Leon Edward | 19/12/2006 | Non-Fiction
How to develop as a leader in business, the responsibilities and how to continuosly improve as a leader are discussed. Better learn the importance of conveying your company vision, goals for your business and steps to gain confidence from employees
The Perils of Positive Thinking
By: Estienne De Beer | 16/06/2006 | Careers
Positive thinking on its own cannot and will never be a substitute for getting things done and achieving results. Positive thinking without application of knowledge and skill is nothing but wishful dreaming and fraught with the dangers of disillusionment.
Immature Leaders Go Off Like Milk
By: Estienne De Beer | 26/06/2006 | Careers
Real leaders understand that they can't have a handle on other people if they don't have a handle on themselves...
Innovating Hiring: Barbershop Marketing
By: Jim Estill | 21/02/2007 | Marketing
While posting hiring ads in the newspaper or online can be helpful, a brainstorm I had at the barbershop has given me a new idea about how to let people know about new job openings.
I am in the process of opening a new warehouse in Guelph, Ontario, and require 250...
CEO Tips for Getting Staff to Understand You
By: Pamela Scott | 19/07/2008 | Business
This article is directed to the CEO, but it can help anyone in a management position communicate more clearly with staff.
The "Right" Approach to Running an Organization
By: Carl Hoffman | 09/04/2006 | Management
In my last edition of leadership we dealt with selection of leadership style, based on individual and organizational variables. Another way to look at leadership is to consider how it is used. We will now explore the leader's selection of the "right" app
Getting Things Done With Unreasonable Requests
By: Paul Lemberg | 01/10/2007 | Management
Your number one job as an extraordinary entrepreneur is to have an extraordinary vision. Your number two task is to execute until that vision comes to life.
If your vision is important enough you most likely can't do it all yourself. That's why you build an organization in the first place....
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
I need info on managing a homeowners association
By: mary | 07-07-2008
I need info on managing a homeowners association
Would there be any harm to a private business ...
By: drabsv | 03-07-2008
Would there be any harm to a private business enterprise if they keep their whole (monthly) budget open to the public?
What is SmartGreenUSA?
By: clm168 | 24-06-2008
What is SmartGreenUSA?
Family Business as a Job
By: MarilynBB | 21-06-2008
Would you like to work in a business run by one of your family members? Why or why not?
What is single parenting :implications/challenges ...
By: no | 18-06-2008
what is single parenting :implications/challenges/perspective for management.
I assume that there are two types of organisations ...
By: drabsv | 18-06-2008
I assume that there are two types of organisations according to the relation structure-people:(1) organisations which expect employees to adapt to their rules, roles and conditions of work. If there are not enough candidates, these organisations react by either increasing salaries or by coercing people to work there through various mechansims - manipulating unemployment rate (e.g. outsourcing work to overpopulated Asia, letting immigrants in); mandatory labour service/ military service; etc. In brief: "the individual must fit into the system". An example of a policy of such organisation: "working time is set Monday till Friday, from 8 am till 5 p.m".(2) organisations which create their rules, roles and work habitats with the human in mind, from the very outset; they also maintain feedback loops to change (improve) those rules, roles and conditions for work when necessary. In brief: "the individual must fit to the system and system must fit to the individual".An example of a policy of such organisation: "the working day is 8 hours; standard working time is set Monday till Friday, from 8 am till 5 p.m but you can arrange with our managers a different schedule, convenient to you". If my assumption is correct, any examples of type (2) organisations?
Q&A Powered by:
Latest Business Articles
Water Damage & Solano County Flooding
By: Mark Decherd | 26/07/2008
If you live in Solano County, it's imperative that you are aware of the flood potential and understand the risks. The wet months run from November through April. During these months, you are more likely to experience flooding.
Is it Time to "reset" Your Business?
By: Linda Feinholz | 26/07/2008
When is 'too much to do' finally enough? I mean enough to have you reach out and slap your personal and business 'reset' button? Do you ever feel like you're buried under overwhelm? Sometimes prioritizing the to do list isn't what needs to be done.
15 Ways to Improve Your Closing Ratios and Sales Presentations
By: Katrina Sawa | 26/07/2008
It is not enough to do launching effective marketing campaigns to obtain new customers and to continually market to your existing database for more referrals and repeat business. In addition, you must be able to ask for and close the sale. Otherwise, it is a waste of time and money!
In Searching for Cost Reducitons, Look at Total Cash Flow Costs Rather Than Accounting Costs
By: Donald Mitchell | 26/07/2008
If you are a privately held company, look to reduce overall cash costs when considering alternative cost reductions, rather than the impact of reported earnings.
The More Trust, the More Time to Succeed
By: Andrew Cox | 26/07/2008
Bill Oncken, in his book Managing Management Time, says that the more trust you have with your "universe " of people, the more time you have to do the things that lead to success. Trust is hard to earn. Once lost it's hard to regain. It's the most precious asset in any relationship - at any level - at any time. Read on to see how a successful Division President builds trust.
10 Tips on the Issues With Selling Professionals
By: Drew Stevens | 26/07/2008
The world of professional selling is rich with information related to selling skills, sales training and techniques to assist professionals. However, after much rhetoric and information I am finding something completely different...a problem with selling professionals.
India - the Next Economic Powerhouse
By: Paul Hata | 25/07/2008
India is one of the fastest-growing countries in Asia. In 2006, India recorded a 1.2% of world trade share overall. The stat was picked out from WTO. The growth is mainly due to the liberalization that took place in India way back in 1991. Ever since then, there's no looking back.
Customer Service Toolkit
By: Drew Stevens | 25/07/2008
All businesses make money, yet those that are customer focused are more profitable.
More from Pam Kennett
Team Factors - Beckhard's Model
By: Pam Kennett | 01/04/2008 | Business
Managing teams is a challenge for all leaders today. A team is a complex entity. If it is underperforming it may be difficult to identify the real reason for underperformance and where to focus development. This article uses Beckard's model of goals, roles, processes and relationships to help managers identify which development area they should focus on.
How to Facilitate a Strategy Workshop
By: Pam Kennett | 31/03/2008 | Business
A critical skill for consultants working with top teams is the ability to facilitate workshops and meetings to define strategy, success factors and values. This article outlines a 6 step process, one day workshop design to produce a clear strategy and way forward for top teams.
Pitfalls to Avoid When Implementing Competency Frameworks
By: Pam Kennett | 22/01/2008 | Business
Lots of organisations today use competencies to underpin their HR initiatives - talent management, recruitment and selection, training and development. But it is so easy to get it all wrong. This article points out some basic pitfalls organisations typically run in to and how to avoid them to make your HR initiatives run smoothly.
How to Avoid Being Ripped Off by Management Consultants
By: Pam Kennett | 13/01/2008 | Business
There are literally thousands of consultancies out there who promise to solve all your organisational woes. However, how do you decide between them and engage the consultancy which is right for your organisation and your issue. Taking time in the early stages, providing a detailed brief, asking the right questions during the pitch, will mean you stand a better chance of getting what you need.
Understanding Hr Performance Indicators
By: Pam Kennett | 17/12/2007 | Business
A criticism of HR professionals is that they are not business focused enough. This article looks at how to measure the financial return on investment of training and development interventions.
Understand Change
By: Pam Kennett | 06/12/2007 | Business
Managing change is a given in today's world. As a manager of change, understanding people's reaction to change will enable you to prepare and plan your communication through the change lifecycle.
Building Client Relationships
By: Pam Kennett | 27/11/2007 | Business
Many consultants believe that once they've made the sale they can take the relationship for granted. However, good long term relationships take alot of time and work to keep them effective and generating income. This article summarises the six key steps an individual can take to ensure that client negotiations run smoothly.
Women and Wealth
By: Pam Kennett | 17/11/2007 | Business
Women are the fastest growing category of wealth builders globally. Yet financial service and other professional service companies are slow to respond to their needs. This article identifies how women build their wealth, how they view money and what they spend their money on. Understanding this provides insight to marketeers to develop services and offerings in this lucrative market.
Business 
