Better Project Teams By Steve Macaulay BA DipIA MCIPD Learning Development Executive It is important that personal team member and team performance goals are in some way aligned. Companies are expanding their use of project teams partly as a response to competition, and particularly as organisations get larger and greater investment is involved. Project teams are a very particular type of team and they are now engrained as a problem-solving tool in today’s workplace. Cranfield’s Centre for Customised Executive Development wanted to explore what makes a successful project team. A project team can be viewed as a team that is newly formed to undertake a unique task. This practitioner’s definition of a project team frames some of the complex challenges that successful project teams must overcome, such as delivering on unique tasks which are often higher risk than more mundane operations, forming disparate participants into an effective team, preserving knowledge as the team changes over time and once the project team is disbanded. Dr. James Gazzard, under the guidance of Dr. David Denyer, investigated how project teams could work better, with the aim of producing their findings in a readable and accessible form, “From the beginning we set out to make our work a valuable workplacerelevant resource” said David Denyer. The report was based on thorough literature research, systematically analysing recent empirical literature which was relevant to project teams, looking out for significant themes. Key themes which soon became clear were the importance of: Project team leadership Project team member characteristics Performance management of project team members The effects of clarity of goals on project teams. What were the top five lessons which emerged? Significant lessons emerged: Involvement The need to involve the project team leader and members early in the project life cycle, Freedom to innovate The need to provide the project team with the necessary freedoms to innovate without excessive management interference, Understanding goals and objectives The critical need for all parties to understand the project goals and objectives, Advanced communication skills The need for advanced communication skills amongst project team leaders and members, Performance management and reward The need for a team’s performance should be appropriately appraised and rewarded. These lessons were encapsulated in a study of successful new product development teams, which found: (1) The project team remained on the project from beginning to end and not just on the project for a short while or single phase, (2) A clearly assigned team of players for each significant NPD project, (3) the project teams were accountable for their project’s end results, (4) Sharing information among the project team members via a central information system¦ (5) Cross-functional cooperation on the team. Project Team Leadership The communication skills of the project team leader are critical. For example, a study reported that cooperation levels were higher when team leaders clearly explain project objectives and team member responsibilities. One study asked project managers and participants to identify the threshold and superior competencies of project managers. Another study found project team leader’s role as a technical expert, team builder (team cohesiveness, team spirit), gatekeeper (collecting, interpreting and disseminating information from external sources to team members) and strategic planner (setting project goals, time planning, resource allocation, project evaluation etc.), all positively related to team performance. Project team leaders pushed team members to overcome obstacles. Senior management support The framework that senior management places on project team leaders is an important area for consideration. As well as manage their team members the project leader should be able to manage upwards, as the senior management team will significantly influence the environment they operate in. The project leader in conjunction with the upper management must ensure that clear performance standards are put in place and that the team are accountable for their own actions. However, unnecessary process controls should be avoided. Project Team Member Characteristics As with project team leaders, the ability to communicate effectively on the intra-team level is a critical competency for project team members. Existence of team goals, positive group dynamics and project member satisfaction were all associated with less organisational conflict and project team conflict. In addition to positive attitude, an effective team member should have the ability to question assumptions. They should have problem solving skills and the capacity to analyse a range of situations. These skills should be underpinned by a broad range of technical skills and business competencies distributed throughout the team. The empirical studies also point to the importance of recruiting high quality team members, training them and developing their skills and retaining those team members with the highest ability levels. Performance Management of Project Team Members Appraising project team member performance is an increasingly vital, yet complex, challenge as the teams are often cross-functional and self-managing. It is important that personal team member and team performance goals are in some way aligned. Accordingly the commitment of the project team to the task is important for project team success. The team must be provided with a supportive atmosphere where their participation and ideas are backed up. The team must clearly understand the rewards systems made available to them, but purely financial rewards need not be the main consideration. In fact, continual referral to financial rewards can be counterproductive. Scope to Improve The potential to improve project teams is broad, whether it be improving the team leadership skills, team member skills or team cohesion. Particularly if the project team has clear project objectives and the freedom from excessive top management intervention it stands a good chance of performing effectively. © Cranfield School of Management 08 September 2008