Chapter 1 Teams in Organizations:
Facts and Myths
| Scenario 1: The Miller Brewing Company opened its Trenton, Ohio,
brewery in 1990. It was intended to be the brewery of the future, one that would give the
company the flexibility to expand capacity and embody the most advanced staffing features.
A planning and design team was set up for the Trenton project with a mandate to start from
scratch and develop a totally new workplace design, abandoning all the traditional
constraints of brewery operations. The team met for six months and came up with a
completely new way to run a brewery, employing self-directed, cross-functional teams,
ranging from 6 to 19 people. These teams handled brewing, packaging and distribution. The
payoff in terms of business results was a 30 percent increase in productivity, in
comparison to Miller's other plants (Parnell, 1996). Scenario 2: In the late
1980s as Corporate America was embracing the mantra of teams, Texas Instruments, the multi
billion dollar electronics manufacturer in Dallas, joined the frenzy and began adding
teams throughout the organization. "Depending on each team's focus, salespeople were
grouped together with various employees, including engineers and sales support people.
Management spoke of empowerment and self-direction" (Marchetti, 1997, p. 91).
Management's message to employees was "You're empowered; go do what you want to
do." The initial results of this project were utter failure.
These two companies are household names and represent major players in their
respective industries. One of the companies succeeded using teams, whereas the other
failed. Why? |
Virtually everyone who has worked in an organization has been a member of a
task-performing group at one time or another. Why are some team experiences successful and
others unsuccessful? Good teams are not a matter of luck; they result from hard work,
careful planning, and commitment from the sponsoring organization. Team design from the
inside out is a skill. It requires a thorough understanding of teams to ensure that the
team works as designed. Although there are no guarantees, we believe that understanding
what makes teams work will naturally lead to better and more effective teams. In this
book, we introduce a systematic approach that allows managers, executives, teachers, and
professionals to develop and maintain excellent teams in their organizations.
Our systematic approach is based upon a principle of learning and change. Implementing
change requires that managers audit their own behavior to see where mistakes are being
made, consider and implement new techniques and practices, and then examine their effects.
Unfortunately, accomplishing these tasks in a typical organizational setting is not easy.
This chapter sets the stage for effective learning by first defining what a team
isits not always clear! Next, we distinguish four types of teams in
organizations in terms of their authority and examine why teams are even necessary in
organizations. We expose some of the most common myths about teamwork and provide some
useful observations. Finally, we provide the manager with the results of our recent survey
on how teams are used in organizations and the problems with which managers are most
concerned. The problems cited by these managers cut across industries, from doughnut
companies to high-tech engineering firms. These problems and concerns are examined in the
chapters that follow.

What is a Team?

Not everyone who works together or in close proximity belongs to a team. A team
is a group of people who are interdependent with respect to information, resources, and
skills and who seek to combine their efforts to achieve a common goal. As is summarized in
Box 1-1, teams have five key defining characteristics. First, teams exist to achieve a
shared goal. Simply put, teams have work to do. Teams produce outcomes for which members
have collective responsibility and reap some form of collective reward. Second, team
members are interdependent regarding some common goal. Interdependence is the hallmark of
teamwork. Interdependence means that team members cannot achieve their goals
single-handedly, but instead, must rely on each other to meet shared objectives. There are
several kinds of interdependencies, as team members must rely on others for information,
expertise, resources, and so on. Third, teams are bounded and remain relatively stable
over time. Boundedness means the team has an identifiable membership; members, as
well as nonmembers, know who is on the team. Stability refers to the tenure of
membership. Most teams work together for a meaningful length of timelong enough to
accomplish their goal. Fourth, team members have the authority to manage their own work
and internal processes. We focus on teams in which individual members can, to some extent,
determine how their work gets done. Thus, although a prison chain gang may be a team in
some sense, the prisoners have little authority in terms of managing their own work.
Finally, teams operate in a larger social system context. Teams are not islands unto
themselves. They do their work in a larger organization, often alongside other teams.
Furthermore, teams often need to draw upon resources from outside the team and vice
versasomething we discuss in part III of this book.
| Box 1-1. Five key
characteristics of teams (Alderfer, 1977; Hackman, 1990) |
 |
| Teams exist to achieve a shared goal.
|
 |
| Teams members are interdependent regarding some common goal.
|
 |
| Teams are bounded and stable over time.
|
 |
| Team members have the authority to manage their own work and internal processes.
|
 |
| Teams operate in a social system context.
|
|
A working group, by contrast, consists of people who learn from one another and
share ideas, but are not interdependent in an important fashion and are not working toward
a shared goal. Working groups share information, perspectives, and insights, make
decisions, and help people do their jobs better, but the focus is on individual goals and
accountability. For example, consider the operators who staff the phone lines at
1-800-MATTRESS. They share, via their computer network, specifications on hundreds of
mattresses and bed frames. They may also share information among themselves on sales
techniques, consumer demographics, or tie-in items. Yet they are individually evaluated
based on their sales performance. These phone operators share resources, but not results.
A team is a type of group, but not all groups are teams.

Types of Teams in Organizations

Organizations have come to rely on team-based arrangements to improve quality,
productivity, customer service, and the experience of work for their employees. Yet not
all teams are alike. Teams differ greatly in their degree of autonomy and control
vis-à-vis the organization. Specifically, how is authority distributed in the
organization? Who has responsibility for the routine monitoring and management of group
performance processes? Who has responsibility for creating and fine-tuning the design of
the group (Hackman, 1987)? Consider the four levels of control depicted in Figure 1-1.

The most traditional type of team is the manager-led team. In the manager-led
team, the manager acts as the team leader and is responsible for defining the goals,
methods, and functioning of the team. The teams themselves have responsibility only for
the actual execution of their assigned work. Management is responsible for monitoring and
managing performance processes, overseeing design, selecting members, and interfacing with
the organization. Manager-led teams provide the greatest amount of control over team
members and the work they perform; they allow the leader to have control over the process
and products of the team. In addition, they are efficient, in the sense that the manager
does the work of setting the goals and outlining the work to be done. In manager-led
teams, managers dont have to sit by and watch the team make the same mistakes they
did. Manager-led teams also have relatively low start-up costs. The key disadvantages are
diffusion of responsibility and conformity to the leader. In short, members have less
autonomy and empowerment. Such teams may be ideally suited for simple tasks in which there
is a clear overriding goal, such as task forces or fact-finding teams. Specific examples
include military squads, flight crews, and stage crews.
In self-managing or self-regulating teams, a manager or leader determines the
overall purpose or goal of the team, but the team is at liberty to manage the methods by
which to achieve that goal. Self-managed teams are increasingly common in organizations.
Examples include executive search committees, managerial task forces, and so on. For
example, at Whole Foods Markets, the largest natural-foods grocer in the United States,
the culture "is premised on decentralized teamwork. The team, not the hierarchy, is
the defining unit of activity. Each of the 43 stores is an autonomous profit center
composed of an average of 10 self-managed teamsproduce, grocery, prepared foods, and
so onwith designated leaders and clear performance targets" (Fishman, 1996).
Self-managing teams build commitment, offer increased autonomy, and often enhance morale.
The disadvantage is that the manager has much less control over the process and products,
making it difficult to assess progress. Self-managing teams can also be more
time-consuming.
Self-directing or self-designing teams determine their own objectives and the
methods by which to achieve them. Management has responsibility only for the teams
organizational context. Self-directed teams offer the most potential for innovation,
enhance goal commitment and motivation, and provide opportunity for organizational
learning and change. However, self-directed or self-designing teams are extremely
time-consuming, have the greatest potential for conflict, and can be very costly to start
up. (For a step-by-step guide to setting up self-designing teams, see Orsburn, Moran,
Musselwhite, & Zenger, 1990.) Furthermore, it can be extremely difficult (or
impossible) to monitor their progress. Other disadvantages include marginalization of
members and lack of team legitimacy. Self-designing teams may be ideally suited for
complex, ill-defined, or ambiguous problems and next-generation planning. At the
Harley-Davidson Motor Company, there is a "commitment to making the company a
high-performance work organization, where the people closest to a job have the authority
and responsibility to do it the best way they can. Part of the companys management
approach is freedom and teamworkit encourages each plant to solve its problems in
its own way" (Imperato, 1997, p. 104). According to CEO Rich Teerlink, "The
issues are always the same . . . quality, productivity, participation,
flexibility, and cash flow. But each plant deals with them in a different way. We
dont have cookbooks because there isnt a cookbook. Were on a journey
that never ends. And the day we think weve got it made, thats the day
wed better start worrying about going out of business" (p. 104).
Self-governing teams and boards of directors are usually responsible for executing
a task, managing their own performance processes, designing the group, and designing the
organizational context. They are the extreme in terms of control and responsibility. In
many companies, the president or chief operating officer has been replaced with an
executive, self-governing team (Ancona & Nadler, 1989). Examples of this approach are
John Reeds structuring of Citicorps senior management when he succeeded Walter
Wriston, and Walter Shipleys creation of the "three president" structure
at Chemical Bank in the 1980s. When British Steel took the construction industry by storm
by developing a unique, patented steel-skinned concrete panel system called the bi-steel
system, it did so with the use of "a semi-autonomous team within a giant conglomerate
not widely credited for encouraging innovative virtually self governing teams"
(Greek, 1997, p. 19).
In certain cases, firms want to set up a self-governing (autonomous) team, similar to
the independent counsels office, to investigate serious problems, such as the sexual
harassment case at Mitsubishi (e.g., the team headed up by Lynn Martin; Holland, 1996).
The way the military has handled problems with sexual harassment stands in sharp contrast,
not only in terms of the kinds of teams set up to examine the problems, but also in terms
of the results they have achieved. In other cases, these kinds of teams could be
disastrous, such as a committee composed of boards of directorsemployees could be
intimidated by the authority of these individuals and, therefore, unwilling or unable to
provide a critical perspective on the status quo.
There are trade-offs involved with each of these four types of teams. Self-governing
and self-directed teams provide the greatest potential in terms of commitment and
participation, but are also at the greatest risk of misdirection. When decisions are
pushed down in organizations, team goals and interests may be at odds with organizational
interests. Unless everyone in the organization is aware of the companys interests
and goals, poor decisions (often with the best of intentions) may be made. An organization
that chooses a manager-led group is betting that a manager can run things more effectively
than group members can. If it is believed that the group can do the job better, a
self-governing or self-designing team may be appropriate. One implication of this is that
the managers traditional role as a collector of information is less and less
important. If shared control over the performance situation and processes is preferred, a
self-managing group is chosen.

Why Should Organizations Have Teams?

Teams and teamwork are not novel concepts. In fact, teams and team thinking have been
around for years at companies such as Procter & Gamble and Boeing. In the 1980s, the
manufacturing and auto industries strongly embraced a new, team-oriented approach when
U.S. firms retooled to combat Japanese competitors who were quickly gaining market share
(Nahavandi & Aranda, 1994). During collaboration on the B-2 stealth bomber between the
U.S. Air Force, Northrop, and some 4,000 subcontractors and suppliers in the early 1980s,
various teams were employed to handle different parts of the project. "As new
developments occurred or new problems were encountered during the program, the Air
Force/Northrop team formed ad hoc teams made up of [their] own experts and specialists
from other companies and scientific institutions" (Kresa, 1991).
Managers discovered the large body of research indicating that teams can be more
effective than the traditional corporate hierarchical structure for making decisions
quickly and efficiently. Even simple changes like encouraging input and feedback from
workers on the line can make a dramatic improvement. For instance, quality control (QC)
circles and employee involvement groups are often vehicles for employee participation
(Cole, 1982). It is a mark of these programs success that this kind of thinking is
considered conventional wisdom nowadays. But, although these QC teams were worthy efforts
at fostering the use of teams in organizations, the teams needed for the restructuring and
reengineering processes of the future may be quite different (Nahavandi &
Aranda,
1994). This point is brought home even more clearly in light of A. T. Kearneys
findings that nearly seven out of ten teams fail to produce the desired results ("The
Trouble with Teams," 1995).
At least three challenges of the future suggest that building and maintaining effective
teams will be of paramount importance. The first has to do with specialization. As
the economy expands and organizations grow accordingly, firms become ever more complex,
both in their tasks and in the markets they serve. Thus, the activities of individuals in
these firms are necessarily becoming more specialized. An increasingly global and
fast-paced economy requires people with specialized expertise. Yet the specialists within
a company need to know how to work together. Moreover, as acquisitions, restructurings,
outsourcing, and other structural changes take place, the need for coordination becomes
all the more salient. Changes in corporate structure and increases in specialization imply
that there will be new boundaries between the members of an organization. Boundaries both
separate and link teams within an organization (Alderfer, 1977; Friedlander, 1987),
although the boundaries are not always obvious. These new relationships require team
members to learn how to work with others to achieve their goals. Team members must
integrate through coordination and synchronization with suppliers, managers, peers, and
customers.
The second challenge has to do with competition. In todays economy, a few
large firms are emerging as dominant players in the biggest markets. These industry
leaders often enjoy vast economies of scale and earn tremendous profits. The losers are
often left with little in the way of a marketlet alone a marketable product (Frank
& Cook, 1995). Think, for example, of Microsofts Windows operating system and
Office Products market share dominance. The division that develops the Office Products
softwarewhich includes Word, Excel, PowerPoint, Outlook, and Accessemploys
thousands of people. Those products share a lot of code with each other, and so teamwork
is critical to coordinate the activities of the various component groups that make up the
Office Products Division (Anonymous, 1996). With so much at stake, firms are
aggressively competing in a winner-take-all battle for market share. Thus, bringing out
the best in individuals within the firm has become ever more important. This means that
people can be expected to specialize more and more in their areas of expertise, and these
areas of expertise will get ever more narrow and interdependent. Both firms and
individuals will have to increasingly rely on others to get access to their expertise.
This is the core structure of a team-based approach to work.
A third factor is the emergence of the information age. Computer technology
extends the firms obligations and capacity to add value to its customers. For
example, Toyota has a Monday-to-Friday design-to-delivery program, in which a customer
"designs" a car on a computer terminal on Monday, and the factory automatically
receives the specifications and has manufacturing completed by Friday of the same week
(Cusumano, 1985). With ever-improving ability to communicate with others anywhere on the
planet (and beyond!), people and resources that were once remote can now be reached
quickly, easily, and inexpensively. This has facilitated the development of the virtual
teamgroups linked by technology so effectively that it is as if they were in the
same building. Technology also gives managers options they never had before, in terms of
which resources they choose to employ on any particular project. The role of management
has shifted accordingly; they are no longer primarily responsible for gathering
information from employees working below them in the organizational hierarchy and then
making command decisions based on this information. Their new role is to identify the key
resources that will best implement the companys objectives and then to facilitate
the coordination of those resources for the companys purposes. The jobs of the team
members have also changed significantly. This can be viewed as a threat or a challenge.
Millions of jobs have been altered dramatically or have disappeared completely since the
advent of computers. For example, George David, CEO of United Technologies Corp., believes
that 18 million U.S. workers (almost one in six) are "at risk" because their
jobs are "prone to automation" (Zachary, 1996). Decisions may now be made far
from their traditional location; indeed, sometimes even by contractors who are not
employees of the firm. This dramatic change in structure requires an equally dramatic
reappraisal of how firms structure the work environment.

Some Observations about Teams and Teamwork

There is a lot of folklore and unfounded intuition when it comes to teams and teamwork.
We want to set the record straight by exposing some of the observations that managers find
most useful.
Companies That Use Teams Are Not
More Effective Than Those That Do Not
When companies are in trouble, they often restructure into teams. However, putting
people into teams does not solve problems; if not done thoughtfully, this may even cause
more problems. For every case of team success, there is an equally compelling case of team
failure, as indicated by this chapters opening example. Teams can outperform the
best member of the group, but there are no guarantees. Admitting the inefficiency of teams
is hard, especially when most of us would like to believe in the Gestalt principle that
the whole is greater than the sum of its parts! As we discuss in later chapters, teams can
suffer from many drawbacks, such as too much emphasis on harmony or individualism, causing
a feeling of powerlessness and creating discord (Griffith, 1997). Teams are not a panacea
for organizations; they often fail and are frequently overused or poorly designed. In the
best circumstances, teams provide insight, creativity, and cross-fertilization of
knowledge in a way that a person working independently cannot. In the wrong circumstances,
teamwork can lead to confusion, delay, and poor decision making.
Managers Fault the Wrong Causes for Team Failure
Imagine yourself in the following situation: The wonderful team that you put together
last year has collapsed into lethargy. The new product line is not forthcoming, conflict
has erupted, and there is high turnover. What has gone wrong? If you are like most
managers, you place the blame on a clash of personalities: Someone is not behaving as a
team player, or petty politics are usurping common team goals.
Misattribution error is a tendency for managers to attribute the causes of team
failure to forces beyond their personal control. Leaders may blame individual team
members, the lack of resources, or a competitive environment. By pointing to a problem
team member, the teams problems can be neatly and clearly understood as emanating
from one source. This saves the managers ego (and in some cases the managers
job), but stifles learning and destroys morale. It is more likely that the teams
poor performance is due to a structural, rather than personal, cause. Furthermore, it is
likely that several things are at work, not just one.
Managers Fail to Recognize Their Team-Building Responsibilities
Many new managers conceive of their people-management role as building the most
effective relationships they can with each individual subordinate; they erroneously equate
managing the team with managing the individual (Hill, 1982). These managers rarely rely on
group-based forums for problem solving and diagnosis. Instead, they spend their time in
one-on-one meetings. Teamwork is expected to be a natural consequence. As a result, many
decisions are based upon limited information, and decision outcomes can backfire in
unexpected and negative ways (see Sidebar 1-1).
| Sidebar 1-1. Team-Building
Responsibilities |
| Steve Miller, managing director of the Royal Dutch/Shell Group of
Companies, develops exercises that allow teams to assess their performance as a group and
the impact a leader has on the group. For example, one of his exercises involves giving
each team a video camera. Each team has 90 minutes to come up with a 5 or 6 minute video
that illustrates the old culture of the company and the new culture of the company. This
exercise instigated a major change in the Austrian business offices of Royal Dutch/Shell. In
the first program involving the video camera exercise, the Austrian team was clearly
lagging behind all the other teams in terms of motivation, participation and enjoyment.
Whats more, it was obvious to the Austrians as well as the other teams that they
were not performing well. Needless to say, their morale was suffering, and Miller was
uncertain how to help the struggling team turn things around.
At one point during the week, the team leader for the Austrian group was called away
suddenly and was not present for the video exercise. At first, this seemed to be the worst
thing that could happen to the Austrian teamthey were leaderless and facing a real
out-of-the-box problem.
The Austrian team surprised everyone by coming up with a powerful and humorous video.
The video showed a man who needs to use the bathroom very urgently. The "old
Shell" video depicts the man walking around in great discomfort, looking for a
toilet. The doors are locked; there is all kinds of bureaucratic paperwork to complete and
needless rubber-stamping. The clip ends with the man nearly collapsing in the mens
room. That was the Austrians idea of the "old Shell".
The next clip depicted the "new Shell" culture. The same man immediately
finds the mens room, is greeted by a hospitable attendant and is offered personal
toilet paper and amenities. The video concludes with the service attendant trying to zip
up the mans fly.
Everyone watching the video was completely stunned by the creativity and humor of the
video. Clearly, the Austrians had won this competition, which turned out to be the
beginning of a dramatic shift in their motivation, performance, and participation in the
entire event. When the Austrian leader returned, he began to realize how capable and
motivated his team really was. This single event was a turning point in how the team and
the leader worked together; the team went on to dramatically improve their business in
Austria (Pascale, 1998). |
Experimenting with Failures Leads to Better Teams
It may seem ironic, but one of the most effective ways to learn is to experience
failure. Evidence of this is provided by the fallout that accompanied the Los Angeles
Police Departments (LAPD) handling of the riots that broke out following the Rodney
King beating verdict in 1992. A Los Angeles Times editorial following the incident
stated that "successful policing is a team effort; likewise, unsuccessful policing of
the magnitude that occurred the night the riots broke out is a team failure" (Los
Angeles Times, 1992, p. B4). The aftermath of the criticisms levied upon the LAPD
and the people who run the department caused an overhaul within the management ranks of
the department. A failed team effort should be viewed as a critical source of information
from which to learn. The problem is that failure is hard to take: Our defense systems go
into overdrive at the mere inkling that something we do is not above average. The true
mark of a valued team member is a willingness to learn from mistakes. However, this
learning can only come when people take personal responsibility for their actions.
The truth is, teams have a flatter learning curve than do most individuals; it takes
teams longer to "get on their feet." However, teams have greater potential than
do individuals. We discuss this further in chapter 2.
Conflict among Team Members Is Not Always a Bad Thing
Many managers boast that their teams are successful because they never have conflict.
However, it is a fallacy to believe that conflict is detrimental to effective teamwork. In
fact, conflict may be necessary for effective decision making in teams. Conflict among
team members can foment accuracy, insight, understanding, and development of trust and
innovation. We discuss conflict in teams in greater detail in chapter 7.
Strong Leadership Is Not Always Necessary for Strong Teams
A common myth is that to function effectively, teams need a strong, powerful, and
charismatic leader. In general, leaders who control all the details, manage all the key
relationships in the team, have all the good ideas, and use the team to execute their
"vision" are usually overworked and underproductive. Teams with strong leaders
may succumb to flawed and disastrous decision making.
As we discuss in chapter 10, a leader has two main functions: A design function,
meaning that the leader structures the team environment (working conditions, access to
information, incentives, training, and education); and a coaching function, meaning
that the leader has direct interaction with the team (Hackman, 1996).
Good Teams Can Still Fail under the Wrong Circumstances
Teams are often depicted as mavericks: Bucking authority, striking out on their own,
and asking for permission only after the fact. Such cases do occur, but they are rare and
tend to be one-shot successes. Most managers want consistently successful teams. This is
particularly important in industries where considerable tooling up is required for team
members.
To be successful in the long run, teams need ongoing resources and support. By
resources, we mean more than just money. Teams need information and education. In too many
cases, teams tackle a problem that has already been solved by someone else in the company,
but a lack of communication prevents this critical knowledge from reaching the current
task force.
To lay the best groundwork for teams before the problems begin, it is important to
consider such factors as the goals and resources of the team: Are the teams goals
well defined? Does everyone know them? Are the goals consistent with the objectives of
other members of the organization? If not, how will the inevitable conflict be managed?
Does everyone on the team have access to the resources necessary to successfully achieve
the goal? Is the organizational hierarchy set up to give team members access to these
resources efficiently? If not, it might be necessary to reconsider the governance
structure within which the team must operate. What are the rights of the team members in
pursuing their duties, who can they contact, and what information can they command? It is
also important to assess the incentive structure existing for team members and for those
outside the team with whom team members must interact. Does everyone have the right
incentives (to do the things they are supposed to do)? Are team members incentives
aligned with those of the group and the organization; for instance, to cooperate with one
another and to fully share information and resources? There is no cookie-cutter solution
to team structure. For instance, it may be appropriate for team members to compete with
one another (in which case, cooperation may not be an achievable feature of the group
dynamic). Choosing the structure of the group and the incentives that motivate the
individuals inside it are essential factors contributing to the success of any team.
Retreats Will Not Fix All the Conflicts between Team Members
Teams often get into trouble. Members may fight, slack off, or simply be unable to keep
up with their responsibilities, potentially resulting in angry or dissatisfied customers.
When conflict arises, people search for a solution to the team problem. A common strategy
is to have a "team-building retreat" or "corporate love-in," where
team members try to address underlying concerns and build trust by engaging in
activitieslike rock climbingthat are not part of what they ordinarily do as a
team.
A team retreat is a popular way for team members to build mutual trust and commitment.
A retreat may involve team members spending a weekend camping and engaging in cooperative,
shared, structured activities. This usually results in a good time had by all. However,
retreats fail to address the structural and design problems that plague the team on a
day-to-day basis in the work environment. Design problems are best addressed by examining
the team in its own environment while team members are engaged in actual work. For this
reason, it is important to take a more comprehensive approach to analyzing team problems.
Retreats are insufficient because they allow managers to blame team interpersonal dynamics
on the failures, rather than deeper, more systemic problems, which are harder to identify.

What Managers Tell Us about Their Teams

To gain a more accurate picture of what managers face in their organizations in the way
of teamwork, we conducted a minisurvey of 149 executives and
managers from a variety of industries. Here are some highlights of what they told us.
Most Common Type of Team
By far, the most common teams were cross-functional project groups, followed by
service, marketing, and operations teams (see also Katzenbach & Smith, 1993).
Cross-functional teams epitomize the new challenges outlined earlier in this chapter. They
represent the greatest potential, in terms of integrating talent, skills, and ideas, but
because of the diversity of training and responsibility, they provide fertile ground for
conflict.
Team Size
Team size varied dramatically, from 3 to 25 members, with an average of 8.4. The modal
team size was 5. These numbers can be compared to the optimum team size: As we discuss
later in the book, teams should generally have fewer than 10 membersmore like 5 or
6.
Team Autonomy versus Manager Control
Most of the managers in our survey were in self-managing teams, followed by manager-led
teams, with self-directing teams distinctly less common (see Figure 1-2). There is an
inevitable tension between the degree of manager control in a team and the ability of team
members to guide and manage their own actions. As a general principle, manager-led teams
provide more control, but less innovation that stems from autonomy. We do not suggest that
all teams should be self-directing. Rather, it is important to understand the trade-offs
and what is required for each type of team to function effectively.
Figure 1-2. Team
autonomy versus manager control |
 |
Team Longevity
The teams in our survey varied a great deal in terms of how long they had been working
together. On average, teams had been in existence for 6 to 12 months (see Figure 1-3).
| Figure 1-3: Team Longevity |
 |
The Most Frustrating Aspect of Teamwork
Managers considered several possible sources of frustration in managing teams. The most
frequently cited cause of frustration and challenge in teams was developing and sustaining
high motivation, followed by minimizing confusion and coordination problems (see Figure
1-4). We discuss issues of motivation in chapter 2 as well as in a special chapter that
focuses on team compensation and incentives (chapter 3). We look at conflict and ways to
effectively manage it within a team in chapter 7.
| Figure 1-4. The
most frustrating aspects of teamwork |
 |
Not surprisingly, the skills on the most-wanted list for managerial education were
(1) developing and sustaining high motivation; (2) managing conflict
productively; (3) providing leadership and direction; (4) fostering creativity
and innovation; and (5) minimizing confusion and coordination problems. Consequently,
we have designed this book to prepare managers and reeducate executives in how to
effectively deal with each of these concerns.
Skill Assessment
We asked managers to rate their own skills along a continuum from most to least
proficient (see Figure 1-5). Managers felt most proficient in their decision-making,
goal-setting, and leadership skills. They felt less proficient about fostering creativity
and innovation, managing conflict, and compensation issues.
| Figure 1-5. Skill
Assessment |
 |

Developing Your Team-Building Skills

This book focuses on two skills: Accurate diagnosis and theory-based intervention.
Skill 1: Accurate Diagnosis
One of the biggest shortcomings of managerial effectiveness is an inability to
accurately diagnose situations; for instance, is a team performing well or poorly? It is
very rare to identify a simple, obvious measure of team functioning because effectiveness
is hard to define. For example, perhaps your firm beat the competition in winning a large
contract, but the contract didnt turn out to be so profitable. Was this a victory or
a failure? What will be the implications for future competition?
Many people make the mistake of looking for causes after they find effects. In
the scientific literature, this is known as sampling on the dependent variable. For
example, if your goal is to identify the determinants of a successful team, it may appear
useful to look for effective teams in your organization and then try to determine what is
common to all of them. This sounds logical, until you realize that there may be many
common factors that have nothing to do with making a team successful, like the fact that
everyone wears clothes! Or there may be common features that interfere with good teamwork,
but are nonetheless difficult to detectperhaps precisely because they are common to
all the teams, successful or not. One important example of this is the institutional
background of the firm; for example, taking certain established practices for granted,
such as operating procedures, information sources, and even contractual relationships. In
this case, the team may be effective, but not as effective as it might otherwise be. A
more serious problem is that a manager who is also entrenched in the institutional
framework of the firm may perceive a team as effective, while overlooking its
shortcomings. Thus, it is essential to be as independent and critical as possible when
analyzing team effectiveness.
How do you avoid the trap of sampling on the dependent variable? From a methodological
point of view, you can do one of two things: (1) have a control groupthat is, a
comparison group (in this case, unsuccessful teams)and look for differences between
the two; or (2) do an experiment in which you provide different information,
education, communication, and so on to one group (randomly assigned) but not the other.
Then look for differences. Unfortunately, most executives do not have the time or
resources to do either of these things. This book provides insights based upon research
that has done these things before drawing conclusions. However, nothing can substitute for
a thoughtful understanding of the environment in which the team operates, the incentives
facing team members, and so on. We will discuss these factors throughout this book.
Another problem is called hindsight bias (Fischhoff, 1975), or the "I knew
it all along" fallacy. This is the tendency to believe that something seems obvious,
even inevitable, after you learn about it when you have not predicted (or cannot
predict) what will happen in advance. This can result in an unfortunate form of
overconfidence: Managers think they know everything, when in fact they know nothing useful
when it is time to make the decision. We often see managers engage in post hoc
justification rather than careful reasoning. The best way to avoid this trap is to read
actively in order to learn about other possibilities, critically examine your own
assumptions, and be open to a change of mind once you have the facts. As you read this
book, some things will surprise you, but much will seem obvious. As a general principle,
do not rely on your intuition; rather, test your assumptions.
Skill 2: Theory-Based Intervention
Once a problem or area of improvement has been identified, a manager still needs to
deal effectively with it. This involves identifying reasons and remedies, such as finding
ways to change the motivational structure of the task, the composition of the group, and
so on. Mechanisms for transferring information from those who have it to those who need it
must be developed as well as a means to manage power, politics , and conflict involving
the group. All this is much easier said than done, of course. For every managerial
problem, there are a dozen purported solutions and quick fixes. How can a manager
knowledgeably choose among them?
The interventions presented in this book have a key quality going for them: They are
all theory-based and empirically sound. This means that they are not based on naive,
intuitive perceptions; rather, they have been scientifically examined. This book was
written to provide managers with up-to-date, scientifically-based information about how
best to manage their teams.

A Warning

We believe that teamwork, like other interdependent social behaviors, is best perfected
in an active, experimental, and dynamic environment. Thus, to fully benefit from this
book, it is necessary for you to actively engage in teamwork and examine your own
behavior. It may seem somewhat heretical to make the point in a textbook that
team-building skills cannot be learned exclusively from a textbook, but we do so anyway.
We strongly urge you to work through the models and ideas presented here in the context
of your own experience. We can think of no better way to do this than in a classroom
setting that offers the opportunity for on-line, applied, experiential learning. It is
easy to watch, analyze, and critique other teams, but much more challenging to engage in
effective team behavior yourself. We hope that what you gain from this book, and the work
you do on your own through team-building exercises, is the knowledge of how to be an
effective team member, team leader, and team designer. In the long run, we hope this book
will help you in developing your own experience, expertise, and models about how you can
best function with teams.

Conclusions

There is no magic scientific formula for designing and maintaining an effective team.
If there were, it would have been discovered by now. In some ways, a team is like the
human body: No one really knows an exact regimen for staying healthy over time. However,
we have some very good information about the benefits of a lean diet, exercise, stress
reduction, wellness maintenance, and early detection of disease. The same goes for
teamwork. Just as we rely on science to cure disease and to advance health, this book
takes an unabashedly scientific approach to the study and improvement of teamwork in
organizations. This is extraordinarily important because there is a lot of misperception
about teams and teamwork. Intuition and luck can only take us so far; in fact, if
misapplied, they may get us into trouble. In the next chapter, we undertake a performance
analysis of teamwork, asking these questions: How do we know a healthy and productive team
when we see it? What are the biggest "killers" and "diseases" of
teams? And, more important: What do we need to do to keep a team functioning effectively
over time? In chapter 3, we deal with the question of incentives and rewards for good
teamwork. Part II focuses on internal team dynamics, and part III focuses on the bigger
picturethe team in the organization.
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