6 www. bus- ex. com November 08 In part five of his series on managing and leading people, Jon Minerich, Principal, Oliver Wight Americas, Inc., describes how to set up successful teams Peopleinteams E veryone, it seems, is talking about teams, teamwork, and team building. Smart CEOs know that teamwork is crucial to accomplishing their company's strategic goals, and also that there is more to it than assembling a collection of individuals to work together. The concept of teams in business is not new, yet many companies still struggle to deploy them effectively. This is a shame because the proper use of teams will enable CEOs to improve business results and achieve their vision. This article explains how the context, structure, and education of teams determine their level of success. We also describe how to create a culture of empowerment in which teams can flourish. Understand the context of team utilization In the first article ( Strategy and leadership), we focused on clearly defining your strategies to achieve your vision and how your culture was key to successfully implementing it. In the following article ( Designing and developing the organization), we described how to design the organization to support your strategies. When contemplating the use of teams, CEOs should first resolve: 1. Where do teams fit into the context of our vision, strategies, and culture? 2. How will they help us accomplish our vision and implement our strategies? 3. Will our culture enable teams to be successful? 4. Is our level of business maturity appropriate to the use of teams? It is important that CEOs and their leadership teams clearly answer these questions before implementing teams into their companies. As with many other business improvement techniques, business history is replete with stories of failed use of teams. Optimally, businesses mature over time. Their business processes, style of leadership, and ability to successfully implement teams need to mature over time as well. To understand the relationship between teams and business maturity, review and study the accompanying sidebar ( Business Maturity Levels: Culture and Teams). Clearly define team structure Teams have been described in many different ways. In the context of this article, we focus on three types: 1) project teams; 2) functional teams; and 3) process teams. Project teams Project teams are formed to accomplish a specific task or objective. Their useful life is limited, typically 180 days or less. However, depending on the project scope, a team may exist for an extended period. For example, a steering committee or project team for a large ERP ( enterprise resource planning) system implementation may work together for two years or more. They are chartered with very clear expectations for performance and deliverables. Generally they are staffed with subject matter experts whose combined skills are necessary to accomplish the given objective. Think of project teams as " swat" teams whose purpose is to move in and resolve a specific business problem and then go back to their normal work

November 08 www. bus- ex. com 7 routine when the project is finished. Functional teams Functional teams are very different from project teams in that they are put into place to perform a business function indefinitely. They generally operate within a functional area but also may work cross- functionally to achieve their mission. We have all heard of the " sales team", the " procurement team", etc. Business activities within a department or functional area may be organized as a process, and teams are assigned to work within these processes within a functional area. However, these teams rarely extend their work beyond department boundaries. There are some notable exceptions to the typical functional team. The best example is a safety team. These teams typically cross most functional boundaries and have an indefinite lifespan. Another example is quality assessment teams. Like the safety team, the quality assessment team does its work across many functional areas and, like the safety team, has an indefinite lifespan. Understand that teams, like the safety and quality assessment teams, are performing a very specific business function, even though their work may cross many departments or functional boundaries. They should not be confused Strategic management Business Maturity Levels ( Culture and Teams) 1. Individualism within Functional Silos Behavior: little or no teamwork; " blame culture"; unpredictable business performance; chronic unresolved problems; control maintained by autocratic management. Focus: current problems; task oriented; no sensitivity for the customer of work performed. Cultural Impact: open communication, truthfulness, humor, and honesty rarely exhibited between workforce and management. 2. Project Teams within Functional Silos Behavior: team identity within departments; " blame culture" still exists between functional silos or departments. Focus: task teams or problem- solving teams may be in use, some team building and team training is in place. Cultural Impact: communication between management and workforce improving, but generally sporadic, and one- way. 3. Functional Teams Behavior: teams aligned to functional processes and work together to improve performance. Focus: business plans communicated and understood by all; team building and team training is standard practice; functional teams generally aligned to business goals. Cultural Impact: less autocratic and more " soft" management practices in place; open, two- way communication is the norm; truthfulness, humor, and honesty prevail in all communications. 4. Process Teams Behavior: permanent cross- functional teams working within end-to- end business processes. Focus: teams utilized as the primary means to direct, organize, and accomplish work. Cultural Impact: boundary- less mindset; process focused, free-flowing communication across all levels of the organization; work viewed as challenging and satisfying. 5. Self- Managed Teams Behavior: problems anticipated and resolved before customer or business is impacted. Focus: teams set their own goals, based on strategic and tactical objectives; teams allocate resources to accomplish the same. Cultural Impact: proactive workforce; success focused, helpful, and empowered; environment of continuous learning and business improvement.