1 © 2014 Hay Group. All rights reserved
Empowering
people through
effective teams
Sylvia DeVoge I Hay Group
3 © 2014 Hay Group. All rights reserved
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
5 © 2014 Hay Group. All rights reserved
High-performing organizations do not
see effective teams as a luxury.
They see it as a necessity.
“….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.’’
Quote from V. Tillman,
Vice President of Standard and Poors:
There is a direct link between top team effectiveness and company valuation!
35% of an investment decision is
driven by non-financial criteria.
And……
The top team is a role model for all lower-level teams.
6) People are
empowered
Stronger talent
pool, more
innovation, better
execution, focus on
priorities
16 © 2014 Hay Group. All rights reserved
1) There is a clear
purpose and high
levels of
interdependency
required by
members – a
shared purpose
What is a real
team?
17 © 2014 Hay Group. All rights reserved
2)
It is clear who
the members are
and why
What is a real
team?
18 © 2014 Hay Group. All rights reserved
3)
The team is
reasonably
stable over time
What is a real
team?
20 © 2014 Hay Group. All rights reserved
5 Leaders
& Teams Results
Creating high performing teams
The Five
Conditions
21 © 2014 Hay Group. All rights reserved
Condition 1: Clarity: Establish a
clear, compelling
direction
The bigger the gap in clarity, the bigger the problem: up to 45% of discretionary effort
can be lost!
25 © 2014 Hay Group. All rights reserved
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
27 © 2014 Hay Group. All rights reserved
‘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!?? ‘
Story: When team members don’t
know the priorities.
28 © 2014 Hay Group. All rights reserved
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
29 © 2014 Hay Group. All rights reserved
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?’’
On outstanding teams, the dominant styles were
-Participative (74%)
-Visionary (63%)
On average teams the dominant style were
-Coercive (77%)
-Pacesetting (69%)
Leadership styles and clarity
34 © 2014 Hay Group. All rights reserved
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.
35 © 2014 Hay Group. All rights reserved
b) Processes /Procedures
High performing teams do not
allow the meeting agenda to begin
with tactical items and end with
strategic ones.
What is the typical main process for
teams?
36 © 2014 Hay Group. All rights reserved
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?
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!
Fact: Members on
outstanding teams are
neither brighter, more
driven nor more
committed than members
of less accomplished
teams.
41 © 2014 Hay Group. All rights reserved
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
42 © 2014 Hay Group. All rights reserved
WHY?
Leaders of teams must ensure the team is
populated with people who have empathy.
Empathy matters
Because the
members of a team
will only buy in to
the team process if
they feel they are
both heard and
understood.
WHY?
Why empathy is a differentiator: Members on the best teams have a far greater
ability to work
with others.
44 © 2014 Hay Group. All rights reserved
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.
45 © 2014 Hay Group. All rights reserved
Comparison of teams with members who live up
to norms and values, even when personally risky
46 © 2014 Hay Group. All rights reserved
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 .
47 © 2014 Hay Group. All rights reserved
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
60
78
81
81
88
91
0 10 20 30 40 50 60 70 80 90 100
Source: Hay Group/Fortune Research Program 1997 - 2007
Peer Group Top Teams Most Admired Top Teams
Open debate promotes positive
decisions (and innovation!)
What do we mean by
support for the team
and team members?
a) Culture
b) Resources
c) Sound data & forecasts
d) Fair compensation
50 © 2014 Hay Group. All rights reserved
Most Admired Companies Peer Group
Encouraging teamwork
Delivering reliably on
commitments to customers
Treating employees fairly and
consistently
Maximizing customer
satisfaction
Achieving budgeted objectives
Supporting top management
decisions
Supporting the decisions of one’s
boss
Maintaining existing customer
accounts
The contrast: Top Priorities in Culture
The role of culture for effective teams is one of the key
differentiators, according to Hay Group and Fortune research
a) Culture Culture that supports effective teams
51 © 2014 Hay Group. All rights reserved Source: Top Teams Research Program 1998 - 2007
2,5
3
3,5
4
4,5
Poor Results >
Process
Process >
Results
Middling Outstanding
Resources
Team Performance
b) Resources Poorer teams are more resource constrained!
Part of the resources
are for coaching.
Research shows that
members of high-
performing teams
receive much more
coaching than those
in average teams
53 © 2014 Hay Group. All rights reserved
c) Sound data and forecasts
Leaders who want outstanding teams
must provide members with strong,
sound data and forecasts.
…..And information that
is insightful.
54 © 2014 Hay Group. All rights reserved
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
56 © 2014 Hay Group. All rights reserved
Condition 5: Provide Development
for individuals AND
the team
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.
C
O
N
C
L
U
S
İ
O
N
Some people
might be
cynical about
teamwork being
a business
differentiator.
60 © 2014 Hay Group. All rights reserved
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
…..but we know that effective team work has
major benefits to the business. A reminder of
the 6 key business benefits
61 © 2014 Hay Group. All rights reserved
….and we know how to create high-
performing teams.
A reminder of the 5 Conditions
1. Direction (Clarity)
2. Structure
3. Right People
4. Support (Resources)
5. Development