Empowering people through effective teams Sylvia DeVoge I Hay Group
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1 Empowering people through effective teams Sylvia DeVoge I Hay Group 1
2 True story of a dysfunctional team So why is this dysfunctional?
3 The majority of impact that individuals have comes from their being either on an effective team or leading an effective team. And. The importance of this impact is not just about top teams. It is about every team 3
4 01 The benefits of effecitve teams
5 High-performing organizations do not see effective teams as a luxury. They see it as a necessity. 5
6 Quote from V. Tillman, Vice President of Standard and Poors:.Companies cannot afford to allow a silo mentality where people do not buy in to a shared vision. To think that a company can achieve its objectives with individual team members acting in isolation is naïve.
7 There is a direct link between top team effectiveness and company valuation! 35% of an investment decision is And driven by non-financial criteria. The top team is a role model for all lower-level teams.
8 Hay Group research shows that successful teams create 6 critical business benefits
9 1) The business agenda is advanced much more quickly (strategy is implemented, and faster)
10 2) Companies are able to weather tough times more effectively
11 3) Silo mentality is significantly reduced (synergies are actually achieved)
12 4) More revenue is delivered (up to 45% more discretionary effort!)
13 5) There is higher customer satisfaction
14 6) People are empowered Stronger talent pool, more innovation, better execution, focus on priorities
15 02 What is a Real Team?
16 What is a real team? 1) There is a clear purpose and high levels of interdependency required by members a shared purpose 16
17 What is a real team? 2) It is clear who the members are and why 17
18 What is a real team? 3) The team is reasonably stable over time 18
19 03 How to Create a High Performing, Effective Team
20 Creating high performing teams The Five Conditions Leaders & Teams 5 Results 20
21 Condition 1: Clarity: Establish a clear, compelling direction 21
22 Why Clarity Matters
23 The bigger the gap in clarity, the bigger the problem: up to 45% of discretionary effort can be lost!
24 For typical teams, the gap in clarity is 58%! For outstanding teams, the gap is only 18%
25 Our research shows that leaders of outstanding teams give far clearer direction compared to average or poor-performing teams. They de-code the strategy. And this has a profound impact on performance 25
26 Do members really know the purpose of the team? 26
27 Story: When team members don t know the priorities. Don t you realize that if we can t cut our refining costs by 3 cents a gallon, they re going to shut us down!?? 27
28 How to Create Clarity Our research shows that outstanding teams with clarity are largely a function of 2 things: -De-coding the strategy, and -Leadership styles 28
29 Story: I was successful in my previous job, and that was much more challenging than my new one. I am struggling in my new job, and I don t know why? 29
30 Leadership styles and clarity On outstanding teams, the dominant styles were -Participative (74%) -Visionary (63%) On average teams the dominant style were -Coercive (77%) -Pacesetting (69%)
31 Monkey Movie!
32 Condition 2: Create an appropriate structure 32
33 What do we mean by appropriate structure? a) Size and boundaries b) Procedures & processes c) Norms
34 a) Team Size and Boundaries Successful teams generally have six to eight members. More members mean more competing interests, more personality clashes and a greater risk or competing factions. 34
35 b) Processes /Procedures What is the typical main process for teams? High performing teams do not allow the meeting agenda to begin with tactical items and end with strategic ones. 35
36 c) Norms Team leaders often overlook one important factor: They have to establish norms, the ground rules for determining what is acceptable behavior by team members and what is not. Remember the story of the dysfunctional team? 36
37 Why are norms so important? Team leaders who establish clear norms do not have to act coercively to hold their team members accountable. The team will do it for them!
38 Condition 3: Select the right people 38
39 Fact: Members on outstanding teams are neither brighter, more driven nor more committed than members of less accomplished teams.
40 What does Selecting the right people mean? a) Empathy b) Integrity c) Productive conflict
41 a) Empathy Empathy is the ability to understand the emotional makeup of others Our research shows that members of outstanding teams had far more empathy than their counterparts on average teams 41
42 Empathy matters Leaders of teams must ensure the team is populated with people who have empathy. WHY? Because the members of a team will only buy in to the team process if they feel they are both heard and understood. WHY? 42
43 Why empathy is a differentiator: Members on the best teams have a far greater ability to work with others.
44 b) Integrity On the best performing teams, members have team integrity : They behave consistently with the team s values, even when it is personally risky to do so, or when there is some personal sacrifice involved. Honesty and a strict adherence to an ethical code are requirements but not a differentiator. 44
45 Comparison of teams with members who live up to norms and values, even when personally risky 45
46 c) Enabling productive conflict Strong team leaders create an environment where team members understand that conflict is good as long as it is over ideas, not personalities. 46
47 Open debate promotes positive decisions (and innovation!) Most Admired Top Teams Peer Group Top Teams Leaders are honest about the realities of the business with each other Leaders are honest about the realities of the business in their communications with employees Leaders surround themselves with people who will challenge them on their thinking % Agree Source: Hay Group/Fortune Research Program
48 Condition 4: Support for the team and team members 48
49 What do we mean by support for the team and team members? a) Culture b) Resources c) Sound data & forecasts d) Fair compensation
50 a) Culture Culture that supports effective teams The role of culture for effective teams is one of the key differentiators, according to Hay Group and Fortune research The contrast: Top Priorities in Culture Most Admired Companies Encouraging teamwork Delivering reliably on commitments to customers Treating employees fairly and consistently Maximizing customer satisfaction Peer Group Achieving budgeted objectives Supporting top management decisions Supporting the decisions of one s boss Maintaining existing customer accounts 50
51 b) Resources Poorer teams are more resource constrained! 4,5 4 3,5 Resources 3 2,5 Poor Results > Process Team Performance Process > Results Middling Outstanding Source: Top Teams Research Program
52 Part of the resources are for coaching. Research shows that members of highperforming teams receive much more coaching than those in average teams
53 c) Sound data and forecasts Leaders who want outstanding teams must provide members with strong, sound data and forecasts...and information that is insightful. 53
54 d) Fair compensation Compensation also can be a powerful tool for accomplishing top team goals but it is not the answer to everything Because team members wear two hats. There is no way to eliminate this conflict completely. But it can be managed 54
55 Fair Compesation Lottery
56 Condition 5: Provide Development for individuals AND the team 56
57 Outstanding team leaders develop individuals and the team. And They periodically review team performance: how the team is doing, what it is doing best, what it is doing poorly and what it and its members have learned.
58 C O N C L U S İ O N
59 Some people might be cynical about teamwork being a business differentiator.
60 ..but we know that effective team work has major benefits to the business. A reminder of the 6 key business benefits 1. The businesses agenda is advanced much more quickly (strategy is achieved, and faster) 2. Companies are able to weather tough times more effectively 3. Silo mentality is significantly reduced (synergies) 4. More revenue is delivered (up to 45% more discretionary effort!) 5. There is higher customer satisfaction 6. People are empowered leading to a stronger talent pool, more innovation, better execution 60
61 .and we know how to create highperforming teams. A reminder of the 5 Conditions 1. Direction (Clarity) 2. Structure 3. Right People 4. Support (Resources) 5. Development 61
62 Powering Up Creating high-performing teams adds more value to the business, and it empowers people.
63 Thank you Sylvia DeVoge I Hay Group 63
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