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Fundamentals of Dynamic Team Leadership

As a consequence any senior team today is likely to be made up of people from multiple heritages. Changing roles frequently—it would not be uncommon for a senior leader at BP to have worked in four businesses and three geographic locations over the past decade—forces executives to become very good at meeting new people and building relationships with them.

In companies with many thousands of employees, relatively few have the opportunity to observe the behavior of the senior team on a day-to-day basis. Nonetheless, we found that the perceived behavior of senior executives plays a significant role in determining how cooperative teams are prepared to be.

The Chartered Bank received its remit from Queen Victoria in The Standard Bank was founded in the Cape Province of South Africa in and was prominent in financing the development of the diamond fields and later gold mines. Standard Chartered was formed in through a merger of the two banks, and today the firm has 57 operating groups in 57 countries, with no home market.

At Standard Chartered the senior team travels extensively; the norm is to travel even for relatively brief meetings.

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This investment in face-to-face interaction creates many opportunities for people across the company to see the top executives in action. Internal communication is frequent and open, and, maybe most telling, every site around the world is filled with photos of groups of executives—country and functional leaders—working together. Employees quickly learn that the best way to get things done is through informal networks. For example, when a major program was recently launched to introduce a new customer-facing technology, the team responsible had an almost uncanny ability to understand who the key stakeholders at each branch bank were and how best to approach them.

A third important role for executives is to ensure that mentoring and coaching become embedded in their own routine behavior—and throughout the company. We looked at both formal mentoring processes, with clear roles and responsibilities, and less formal processes, where mentoring was integrated into everyday activities. It turned out that while both types were important, the latter was more likely to increase collaborative behavior. At Nokia informal mentoring begins as soon as someone steps into a new job.

This is a deeply ingrained cultural norm, which probably originated when Nokia was a smaller and simpler organization. The manager sits with the newcomer, just as her manager sat with her when she joined, and reviews what topics the newcomer should discuss with each person on the list and why establishing a relationship with him or her is important. It is then standard for the newcomer to actively set up meetings with the people on the list, even when it means traveling to other locations.

The gift of time—in the form of hours spent on coaching and building networks—is seen as crucial to the collaborative culture at Nokia. So what about human resources? Is collaboration solely in the hands of the executive team? In our study we looked at the impact of a wide variety of HR practices, including selection, performance management, promotion, rewards, and training, as well as formally sponsored coaching and mentoring programs. Although most formal HR programs appeared to have limited impact, we found that two practices did improve team performance: training in skills related to collaborative behavior, and support for informal community building.

However, we found that some teams had a collaborative culture but were not skilled in the practice of collaboration itself.

Our study showed that a number of skills were crucial: appreciating others, being able to engage in purposeful conversations, productively and creatively resolving conflicts, and program management. In the research, PricewaterhouseCoopers emerged as having one of the strongest capabilities in productive collaboration. PwC also teaches employees how to influence others effectively and build healthy partnerships.

Task-oriented and relationship-oriented leadership

A number of other successful teams in our sample came from organizations that had a commitment to teaching employees relationship skills. The program is not about sales techniques but, rather, focuses on how Lehman values its clients and makes sure that every client has access to all the resources the firm has to offer. It is essentially a course on strategies for building collaborative partnerships with customers, emphasizing the importance of trust-based personal relationships.

These informal groups were responsible for projects associated with the implementation of new technology throughout the bank; one team, for instance, was charged with expanding online banking services. To succeed, the teams needed the involvement and expertise of different parts of the organization. The firm makes the technology needed for long-distance collaboration readily available to groups of individuals with shared interests—for instance, in specific technologies or markets—who hold frequent web conferences and communicate actively online.

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The company also encourages employees that travel to a new location to arrange meetings with as many people as possible. As projects are completed, working groups disband but employees maintain networks of connections.

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These practices serve to build a strong community over time—one that sets the stage for success with future projects. Committed investment in informal networks is also a central plank of the HR strategy at Marriott. Despite its size and global reach, Marriott remains a family business, and the chairman, Bill Marriott, makes a point of communicating that idea regularly to employees.

He still tells stories of counting sticky nickels at night as a child—proceeds from the root-beer stand founded in downtown Washington, DC, by his mother and father. Almost every communication reflects an element of staff appreciation. In the groups that had high levels of collaborative behavior, the team leaders clearly made a significant difference. The question in our minds was how they actually achieved this.

The answer, we saw, lay in their flexibility as managers. There has been much debate among both academics and senior managers about the most appropriate style for leading teams. Some people have suggested that relationship-oriented leadership is most appropriate in complex teams, since people are more likely to share knowledge in an environment of trust and goodwill. Others have argued that a task orientation—the ability to make objectives clear, to create a shared awareness of the dimensions of the task, and to provide monitoring and feedback—is most important.

Not all highly collaborative tasks are complex. In assembling and managing a team, consider the project you need to assign and whether the following statements apply:. If more than two of these statements are true, the task requires complex collaboration.

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In the 55 teams we studied, we found that the truth lay somewhere in between. The most productive, innovative teams were typically led by people who were both task- and relationship-oriented. Specifically, at the early stages they exhibited task-oriented leadership: They made the goal clear, engaged in debates about commitments, and clarified the responsibilities of individual team members.

However, at a certain point in the development of the project they switched to a relationship orientation. This shift often took place once team members had nailed down the goals and their accountabilities and when the initial tensions around sharing knowledge had begun to emerge. An emphasis throughout a project on one style at the expense of the other inevitably hindered the long-term performance of the team, we found. The most productive, innovative teams were led by people who were both task- and relationship-oriented. Producing ambidextrous team leaders—those with both relationship and task skills—is a core goal of team-leadership development at Marriott.

As evidence of their relationship skills, managers are asked to describe their peer network and cite examples of specific ways that network helped them succeed. The development plans that follow these conversations explicitly map out how the managers can improve specific elements of their social relationships and networks.

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Such a plan might include, for instance, having lunch regularly with people from a particular community of interest. To improve their task leadership, many people in the teams at Marriott participated in project-management certification programs, taking refresher courses to maintain their skills over time. Evidence of both kinds of capabilities becomes a significant criterion on which people are selected for key leadership roles at the company.

The final set of lessons for developing and managing complex teams has to do with the makeup and structure of the teams themselves. Our research shows that new teams, particularly those with a high proportion of members who were strangers at the time of formation, find it more difficult to collaborate than those with established relationships.

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Newly formed teams are forced to invest significant time and effort in building trusting relationships. However, when some team members already know and trust one another, they can become nodes, which over time evolve into networks. It helps, of course, if the company leadership has taken other measures to cultivate networks that cross boundaries. The orientation process at Nokia ensures that a large number of people on any team know one another, increasing the odds that even in a company of more than , people, someone on a companywide team knows someone else and can make introductions.

Nokia has also developed an organizational architecture designed to make good use of heritage relationships. When it needs to transfer skills across business functions or units, Nokia moves entire small teams intact instead of reshuffling individual people into new positions. If, for example, the company needs to bring together a group of market and technology experts to address a new customer need, the group formed would be composed of small pods of colleagues from each area. This ensures that key heritage relationships continue to strengthen over time, even as the organization redirects its resources to meet market needs.

Because the entire company has one common platform for logistics, HR, finance, and other transactions, teams can switch in and out of businesses and geographies without learning new systems.