SPECIAL COLLECTION FROM THE LEADERSHIP ARCHIVE How Winning Teams Work Learn how to identify the best individual for each position and the best methods for working with your groups. CONTENTS SPECIAL COLLECTION How Winning Teams Work 1 How Leaders Can Optimize Teams’ Emotional Landscapes By Jeffrey Sanchez-Burks, Christina Bradley, and Lindred Greer 6 It’s Time to Tackle Your Team’s Undiscussables By Ginka Toegel and Jean-Louis Barsoux 15 Why Teams Still Need Leaders Lindred (Lindy) Greer, interviewed by Frieda Klotz 18 A New Approach to Designing Work By Nelson P. Repenning, Don Kieffer, and James Repenning 28 Improve the Rhythm of Your Collaboration By Ethan Bernstein, Jesse Shore, and David Lazer 36 How to Lead a Self-Managing Team By Vanessa Urch Druskat and Jane V. Wheeler MI MIT T SLO SLOAN AN MANA MANAGEMENT GEMENT REVIEW How Leaders Can Optimize Teams’ Emotional Landscapes Jeffrey Sanchez-Burks, Christina Bradley, and Lindred Greer Employees bring a diversity of moods to work each day. Trying to smooth them out into one shared mood isn’t always the best idea. can help their organizations function at their best. Emotions are running high. The disruptive events characterizing 2020 — a global pandemic, climate-related disasters, economic uncertainty, and social discontent — are leading employees to bring a higher level of emotionality to work than ever before. This is clashing with the culturally ingrained norm that an appropriate “professional” demeanor minimizes emotional expression. At the same time, work on emotional suppression suggests that there are long-term costs to keeping emotions buried and that, if stifled, they will erupt in counterproductive ways. For that reason, leaders can no longer avoid taking an active role in architecting emotional landscapes — the collective composition of employee sentiments. Because emotional landscapes directly influence how employees make sense of situations, tasks, and what actions to take, they can help or hinder the pursuit of organizational strategic objectives. By supporting emotional expression within their teams, leaders The tools available to leaders for navigating such emotional landscapes with their teams are largely outdated strategies such as encouraging general suppression of emotions at work or offering generic pep talks. Leaders need a playbook for responding to employees’ emotional states with more nuance and, critically, in ways that are tailored to the situation. We offer four plays — to nurture emotions, to align them, to acknowledge them, and to diversify them — that allow leaders to manage the loaded emotional settings they’re working in and help creativity and productivity thrive. Limits of the Traditional Emotions Playbook Based on our executive leadership development work with global Fortune 100 companies as well as our ongoing research in this area, we’ve noticed that leaders tend to overly rely on two plays from the old, traditional playbook of emotional management of teams and organizations: giving a pep talk and sounding the alarm. Many managers remain enamored with the notion that rallying a positive, high-energy mood in a team is an effective strategy for obtaining exceptionally high performance. Accordingly, many managers adopt this play when kicking off meetings by pumping up their team to elevate everyone’s mood. Former Microsoft CEO Steve SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 1 MI MIT T SLO SLOAN AN MANA MANAGEMENT GEMENT REVIEW Ballmer famously illustrated this approach with the fervor of a rock singer at a music festival. Though that’s admittedly an extreme example, we have seen many other leaders deploy an only slightly down-tempo cover version of Ballmer’s routine before meetings, by playing uplifting music, asking everyone to share a piece of good news, or getting everyone to stand up and move around before diving into the agenda. Alternatively, other managers rely on the mood-darkening strategy of sounding an alarm. Many believe that instilling anxiety by highlighting the cost of failure is an effective way to focus a team’s attention and effort. One newly promoted senior executive working in data security shared with us that he has found no better way to motivate his team than to openly share his concerns about the consequences of failing to meet current key performance indicators (KPIs). He reasoned that this kills employees’ complacency and pushes them to work harder. The stark differences between these two approaches hide an important similarity: Both create emotional alignment. Both steer teams toward a shared emotional experience — rather than individualized and diversified ones. Whether a manager relies on positivity or negativity, the result is a reduction in the breadth of feelings. Leaders use these plays because they can work in very specific situations. Indeed, an abundance of research supports the notion that increasing emotional alignment contributes to team performance, specifically when a team is executing a clear strategy. When a team shares a common mood, members are better able to converge on a single point of view and take the actions required to execute a given strategy. However, the full story behind the consequences of emotional alignment is more complex. Because emotional alignment minimizes important individual differences in reactions to current events, it can prevent teams from building an inclusive culture, however counterintuitive that may seem. More crucially, because convergence in a team’s mood directly reduces the diversity of perspectives represented, it shapes how teams operate: When there is uncertainty about the best path forward, striving for the same emotional mood actually suppresses views critical for the creative process, decision-making, and overall innovation efforts. Studies coming out of the behavioral sciences have revealed that more complex and diverse emotional experiences actually evoke a broader array of ways to think about a problem. Heterogeneous emotions beget diverse thoughts because of the way emotions interact with how knowledge is organized and retrieved. For example, the mood-congruent memory effect describes the phenomenon of how we are more likely to bring to mind knowledge associated with positive experiences when in a positive mood and with negative experiences when in a negative mood. The anger acquired during a grueling commute on the freeway more readily brings to mind all the pain and suffering in our lives than the joys and bright spots experienced a mere 24 hours earlier. Therefore, a collective that is in a similar mood will share a similarly biased perspective. A group with a more emotionally diverse landscape will have less bias and greater breadth in the points of view they bring to the problem at hand. Considering Context for Managing Emotions Rather than homogenizing the emotional experience at work, managers would be wise to deploy a much more tailored approach to emotion management that takes into account the nature of the task at hand and the ideal emotional landscape for that task. From our observations of managers over the years and what has been discovered about emotional landscapes, we recommend that leaders start with two initial questions when aiming to architect the ideal emotional landscape in their teams: What iiss tth he n naatur uree ooff tth he p prrim imaary jjoob ttoo bbee do don ne aatt tth he momen ent? t? Is the team’s current primary objective to execute upon a clear strategy that has already been mapped out in advance? Or, instead, do you need the team to innovate, to brainstorm, and to develop new solutions to a pressing problem? SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 2 MI MIT T SLO SLOAN AN MANA MANAGEMENT GEMENT REVIEW What iiss tth he ccur urrren entt em emootio ion nal llaandscape ooff yyoour tteeam? Focus on what we call the “aperture of your emotional lens” to take a holistic view of your team — shift attention from individuals to patterns in the collective. Are the emotions among members relatively aligned, or are they diverse? Consider whether an external event (such as a major international crisis or a recent organizational announcement) has created a situation where team members are having similar feelings. Or, instead, has the variety of experiences in their individual lives (including such disparate events as the birth of a child, progress on a KPI, or that same theoretical organizational announcement) brought about a variety of moods? Focus on the emotional temperament of the entire group and not just one or two people. Your answers to these two questions (execution versus innovation, and aligned versus diversified) are essential for determining which of the four emotion management strategies will be most effective. Choosing the wrong play could detract from the effectiveness of your team. Expanding the Emotion Management Playbook Once you’ve identified the nature of the task at hand and the current emotional mood of your team, you’ll be able to identify a strategy that best fits your current circumstances. (See “Four Strategies for Your Emotion Management Playbook.”) Below, we detail why each strategy fits with each combination of circumstances. Nur urttur uree em emootio ion ns (w (wh hen tth he ttaask iiss ex exeecutio ion n aan nd tth he cur urrren entt em emootio ion nal llaandscape iiss aalig lign ned). As noted earlier, research shows that a team is better able to coordinate on clear tasks when its members share a common mood. To benefit from this emotional alignment, leaders need to be active in encouraging and recognizing those feelings to lower the likelihood that new emotions will intrude, which would be counterproductive. Sustaining this cohesive emotional model can require some planning. If the team is upbeat, share information that will continue to rally everyone. If it’s more somber, acknowledge the mood with empathy. One leader recently shared with us how she has been handling the rise in negative emotions of her team due to the COVID-19 crisis. She told us that at the start of one meeting, many team members shared their fears about how the pandemic would affect the company. This leader avoided the temptation to lighten the mood and instead acknowledged that times were indeed tough. By validating the team’s negative feelings and avoiding the urge to sugarcoat the current emotional state, she avoided disturbing the camaraderie of shared concern. Her team maintained a common motivation to continue executing a plan for pulling through the hard times together. Alig lign n em emootio ion ns (w (wh hen tth he ttaask iiss ex exeecutio ion n aan nd tth he ccur urrren entt em emootio ion nal llaandscape iiss di divver ersse). When your team needs to coordinate toward a common goal and you sense that it’s experiencing a wide range of emotions, the most effective way forward is to deploy a strategy that increases emotional alignment. Here, the “pep talk” or “sounding of the alarm” approaches described earlier are effective in preparing your team to execute its task. In this circumstance, managers need to take immediate and potent actions to help team members get into a similar emotional state. Earlier this year we saw one leader of a large nonprofit enact this strategy shortly after closing all in-person operations and shifting to remote work. Some stakeholders were delighted not to go into the office, some struggled to work while at home with their families, and others were anxious about the changes. This leader began to incorporate punctuated moments during virtual meetings to highlight specific examples of how the organization was continuing to deliver on aspects of its mission that were sacred to the employees. This worked to coalesce the collective mood toward a sense of hope and optimism. Acknowle ledg dgee em emootio ion ns (w (wh hen tth he ttaask iiss inn innoova vattio ion n aan nd the ccur urrren entt em emootio ion nal llaandscape iiss di divver ersse). When the goal for your team involves finding novel solutions to a pressing problem and you recognize that your team is experiencing a diverse set of emotions, the best way to move forward is to let those different emotions be heard and validated. Avoid opening meetings in a way that could substantially raise or lower — and thus align — the entire group’s mood. Creating room for emotional validation allows people to SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 3 MI MIT T SLO SLOAN AN MANA MANAGEMENT GEMENT REVIEW process their affective experiences, which is more productive than attempting to suppress them or pretending that people are unemotional robots. The diversity of emotions in the room will facilitate diversity of thought. One astute leader uses this approach to begin her Monday morning design hackathons. Recognizing the value of a room containing a mix of irritation from treacherous commutes, elation from weekend adventures, and everything in between, she begins with an online poll asking everyone to indicate two different emotions they are feeling. With this small step, she affirms the diverse emotional landscape in the room and how it’s a perfect mix to fuel their innovation task at hand. Di Divver ersif sifyy em emootio ion ns (w (wh hen tth he ttaask iiss inn innoova vattio ion n aan nd tth he cur urrren entt em emootio ion nal llaandscape iiss aalig lign ned). As we’ve outlined, the level of innovative thinking you will get from your team will be suboptimal when there’s too much emotional conformity. It matters little whether you created this common mood or if it was the result of an external event. What a leader needs to do when a team is tasked with a creative project is to increase the complexity of the emotional landscape. One way to do this is powerfully simple: Set the stage for an ideation session by having team members reflect on specific meaningful moments from their careers and personal lives, including when they were excited and when they were angry. Have them jot down some words that capture how they felt in those moments. The underlying magic of this process is that the range of emotions attached to this broad collection of experiences will help unleash a greater variety of thoughts and perspectives to use in the innovation challenge. When we run this exercise in leadership development workshops, we typically ask just a subset of attendees to revisit these emotionally diverse memories. Later, we ask for a show of hands to see whether the number and variety of solutions are higher in that group, and we find that they nearly always are. This seemingly trivial intervention really does squeeze more creative thought from employees. A note on diversifying emotions: When there is big news that creates a similar emotional response — for example, your company’s major quarterly announcement — that’s not a good day for ideation, regardless of whether the news is a pleasant surprise or a major disappointment. It will be difficult to diffuse the team’s distraction and common emotions. Consider scheduling core ideation work for another time, when the source of emotional alignment has subsided. Although all four strategies for managing employee emotions have their places in different situations, from our experience, managers miss important opportunities by not using the acknowledge and diversify strategies. This is understandable, given that they depart from the conventional wisdom that aligning a team’s emotions is always helpful. Again, although a common mood accelerates execution tasks, it is counterproductive for the generation of innovative ideas. For creativity, emotional diversity is key. Managers who understand this can mindfully cultivate the different emotional landscapes required for execution versus innovation. It’s not that this leadership work was not required all along. Rather, the extremely emotional and dynamic events of 2020 are finally forcing leaders to do this difficult work. About The Authors Jeffrey Sanchez-Burks is the William Russell Kelly Professor of Business Administration at the University of Michigan’s Ross School of Business. Christina Bradley is a doctoral student in the Management & Organizations department at the Ross School of Business. Lindred Greer (@lindredg) is an associate professor of management and organizations at the Ross School of Business. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 4 MI MIT T SLO SLOAN AN MANA MANAGEMENT GEMENT REVIEW Four Strategies for Your Emotion Management Playbook Paying attention to the emotional landscape of a workplace allows leaders to respond to situations with nuance. Depending on what kind of job needs to be done and how aligned or diverse emotions are, different strategies can help teams most effectively pursue strategic objectives. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 5 C O L L A B O R AT I N G W I T H I M P A C T : T E A M D Y N A M I C S It’s Time to Tackle Your Team’s Undiscussables Subjects that are consciously or unwittingly deemed out of bounds come in four varieties and make it almost impossible for teams to function. BY GINKA TOEGEL AND JEAN-LOUIS BARSOUX I n 2008, Theranos engineer Aaron Moore created a mock ad for a prototype of the company’s blood testing device. Intended as a prank to amuse his colleagues, his ad described the device as “mostly functional” and included “leeches” among its “blood collection accessories.”1 Now, with hindsight, we can interpret his spoof not just as a joke but as a desperate bid to raise a taboo subject: The company’s device didn’t work and the leadership team was hiding that fact. Moore’s actions spoke volumes about the undiscussables at Theranos. Undiscussables exist because they help people avoid short-term conflicts, threats, and embarrassment. But they also short-circuit the inquiries and challenges essential to both improving performance and promoting team learning. Our consulting work with dozens of senior management teams has taught us that a team’s ability to discuss what is holding it back is BENEDETTO CRISTOFANI/THEISPOT.COM SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 6 C O L L A B O R AT I N G W I T H I M P A C T : T E A M D Y N A M I C S THE ANALYSIS The authors reviewed various streams of research on team effectiveness and dysfunction, connecting the dominant management and social psychology perspectives on teams with the oftenneglected psychodynamic literature on groups. Along with their consulting work with senior management teams, the authors have studied group dynamics in elite sports teams, orchestras, medical teams, and a hostage negotiation team. Their insights have been validated and refined by participants in executive education programs at IMD over the past 10 years. what drives its effectiveness. We have observed this dynamic in a wide variety of settings and have drawn on this experience to propose a framework, a set of diagnostic questions, and some targeted solutions to help teams address their own undiscussables. This approach enables team leaders to identify the dominant undiscussables in their businesses and kick-start the necessary conversations to bring them to light. At Theranos, CEO Elizabeth Holmes and her top team were unwilling even to acknowledge concerns that were obvious to many of their engineers. It was significant that Moore didn’t share his misgivings directly with his bosses but expressed them sarcastically and anonymously. When Holmes was told about the prank ad, she launched an investigation to identify the culprit. Instead of triggering debate, her actions reinforced the message that problems with the company’s product were not to be discussed. Within months of being reprimanded, Moore resigned, frustrated and disillusioned. The Theranos case illustrates what can happen when questioning voices are silenced and topics placed off-limits. At Theranos, that created a culture of fear and denial that ultimately led to false claims made to investors and customers, as well as decisions that jeopardized patient health. The once-inspiring Theranos story ended with criminal fraud charges filed against Holmes and the collapse of a startup previously valued at $9 billion. While Theranos represents an extreme case of a dysfunctional organization, the underlying issue — team undiscussables — is all too common. And it’s getting worse as increasingly virtual and globally distributed teams find it harder to pick up signals of discomfort and anticipate misunderstandings. With fewer opportunities to raise undiscussables face-to-face (casually, over lunch or coffee), it becomes even more important to identify and air concerns before they escalate and team and organizational performance begin to suffer. A Misunderstood Problem When the leadership teams we work with struggle with undiscussables, the symptoms they present to us range from unresolved conflicts among team members and uneven participation in meetings to destructive groupthink and employee disengagement. We have studied group dynamics in numerous nonbusiness settings, too — including elite sports teams, orchestras, medical teams, and a hostage negotiation team — and the pattern holds across contexts and levels: The more undiscussables there are, the more difficult it is for the team to function. If they aren’t discussed collectively, they can’t be managed intelligently. Yet team leaders tend to overestimate the risks of raising undiscussables. They assume incorrectly that talking about negative subjects will sap team energy, reveal issues they cannot resolve, and expose them to blame for the part they played in creating the problems the group faces. In reality, we’ve found that discussing undiscussables brings relief, boosts energy, and bolsters team goodwill. Team leaders also underestimate the consequences of doing nothing to address undiscussables. Ignoring them invariably results in strained working relationships that produce ineffective meetings marked by a lack of debate. This leads to bad decisions that are made worse, because without open, honest discussion, a team cannot learn from its mistakes or correct course. Left unmanaged, undiscussables contaminate the team, choking its problem-solving abilities and capacity to learn and adapt to change. Four Layers of Undiscussability Executives often talk about undiscussables as though they were all the same: views people hold and choose not to air in public. They are typically described as the elephant in the room, the 800-pound gorilla, or the dead moose. Thinking this way both overlooks their complexity and makes them more fearsome. We propose a multifaceted view of undiscussables. The thinking-saying gap (Theranos engineers knew their device didn’t work but couldn’t say so) is just one category. There is also the saying-meaning gap, the feeling-naming gap, and the doing-knowing gap. (See “Mind the Gaps.”) Each type of undiscussable has its own drivers. Some emerge from cognitive barriers, others from emotional ones. Some are known to everyone on the team, while others are sensed only by a few or are utterly unknown, existing outside the team’s collective consciousness. Different types of undiscussables SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 7 need to be surfaced in different ways. Some can be drawn out through direct questions; others must be inferred from patterns of behavior and then validated with the team. (See “Diagnosing the Problem: A Checklist,” p. 40, for questions leaders can ask to identify their teams’ undiscussables.) Although the following categories overlap somewhat, differentiating between types of undiscussables can help you tackle them more effectively. 1.You THINK but dare not say. Undiscussables are most commonly associated with risky questions, suggestions, and criticisms that are self-censored. You may joke about them (as Moore did at Theranos) or discuss them confidentially but never openly. For example, the incoming CEO in the Australian subsidiary of a global information company quickly noted her new team’s wary exchanges in meetings and team members’ disconcerting tendency to nod approvingly in public only to criticize in private. They were unaccustomed to speaking their minds. Coming in with a tough change mandate, the CEO needed her team’s honest input and wholehearted buy-in. She had to address its cautious behavior. Views are left unspoken mostly when people fear the consequences of speaking, whether the risk is real or imagined. The main driver of this fear is often team leaders with an emotional, erratic management style and a reputation for responding harshly when people disagree with them. That makes team members feel unsafe. As research by Harvard professor Amy Edmondson has shown, a critical barrier to psychological safety is the weight of hierarchy.2 Power and status differences tend to discourage team members from bringing up issues or concerns they think the leader may view as disruptive or even none of their business. Beginning the fix: How can leaders minimize those power differences and make it safe to speak up? By explicitly acknowledging they may unwittingly have created a climate of fear or uncertainty, inviting discussion about sensitive issues, drawing out concerns, promising immunity to those who share dissenting views, and lightening the weight of their authority in the room. In the Australian subsidiary, the CEO took several concrete actions. To model her commitment to MIND THE GAPS Teams struggle with undiscussables when they… … THINK but dare not say … SAY but don’t mean … FEEL but can’t name … DO but don’t realize openness and reduce mistrust, she asked the team to submit anonymous questions in writing about her style and her intentions. She then asked the HR head to run an honest dialogue session with the team (while she was absent) to encourage productive disagreement. The session focused on the difference between straight talk and fight talk.3 While both styles of communication are based on candor, straight talk distinguishes clearly between the individual and the issue; fight talk conflates them. In subsequent meetings, with the CEO present, whenever the team seemed reluctant to push back on a proposal, she would say, “I feel there might be something else. ... Let’s see if it would help for me to leave the room. And when I come back, I want you as a team to share your concerns.” This helped free people from their inhibitions. Eventually, as the team realized the CEO really did want constructive pushback, leaving the room became unnecessary. She also replaced the rectangular meeting table with a round one to signal a more egalitarian environment and foster more intimate interactions. To encourage genuine give-and-take, team leaders must play a supportive role and be very conscious of how volubly they express themselves during discussions. They should avoid stating their preferences or opinions at the beginning of team discussions and refrain from immediately judging the contributions of others. They also can show SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 8 C O L L A B O R AT I N G W I T H I M P A C T : T E A M D Y N A M I C S DIAGNOSING THE PROBLEM: A CHECKLIST Here are some signs that your team may be struggling with one or more of the four types of undiscussables. 1. DO TEAM MEMBERS THINK THINGS THEY DARE NOT SAY? Do they agree publicly during meetings but disagree (and vent) privately? Do they often use sarcasm, silence, or nonverbal gestures to signal disagreement? Do they focus on managing up in meetings? 2. DO THEY SAY THEY SHARE CERTAIN VALUES BUT FAIL TO PRACTICE THEM? Are team meetings too undemanding and unrealistically upbeat? Do people cling to an image of cohesiveness, frowning on any criticism of the team as a sign of disloyalty? Do they always seem to adopt similar perspectives on problems? 3. DO THEY HAVE NEGATIVE FEELINGS THEY CAN’T NAME? Do meetings feel antagonistic (tempers fray; disagreements become personal)? Are people reluctant to comment on issues outside their direct responsibilities? Do team members organize themselves into rigid factions? 4. ARE THEY UNWITTINGLY ENGAGING IN UNPRODUCTIVE BEHAVIORS? Does the team have trouble identifying root causes for its ineffectiveness? Does it spin its wheels on minor issues? Do important items often get postponed or fall between the cracks? that they are part of the group by sharing their mistakes and engaging in maintenance behaviors, including saying “we” rather than “I,” encouraging team members to voice their concerns, and acknowledging their contributions. In short order, the Australian information company’s team meetings grew more productive as these new expectations and processes were internalized and became routine. The CEO was able to execute her change mandate successfully, and team development, both individual and collective, accelerated. Team members took the functioning of their team more seriously and carried the same principles into meetings with other teams. 2. You SAY but don’t mean. Alongside unspoken truths, there are spoken untruths. These undiscussables reflect discrepancies between what the team says it believes or finds important and how it behaves (what academics have described as gaps between espoused theory and theory-in-use).4 Teams often proclaim but fail to follow certain values, objectives, or practices that are supposed to guide and inspire them and create a sense of togetherness. The disconnect between what’s said and what’s done is visible to all, but no one points it out for fear of endangering the team’s cohesion, even if that cohesion is based on a shared illusion. Here’s an example: The top team of a Scandinavian paper giant struggled with plunging demand for paper caused by digitalization. In response, the tightknit leadership team declared its commitment to “reinvent the company.” In reality, all the team talked about in meetings and retreats was efficiencies and cost cutting. The chief concern in such teams is protecting the group, as opposed to protecting the individual in the think-but-dare-not-say category of undiscussables. Silence is not based on fear as much as on an unquestioned and distorted sense of loyalty to the team, its leader, or the organization. Drawing attention to the disconnect between intentions and actions would feel like letting down colleagues and killing team spirit. This false positivity, which people express by simply mouthing accepted values, practices, and objectives — the espoused theory — hides any concerns that the team might be incapable of making the necessary changes to the organization and that people might lose their jobs as a result. This protective impulse may appear innocent, but in the long run, it undermines learning and leads to disillusionment as people stop trusting the value of one another’s words and commitments. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 9 C O L L A B O R AT I N G W I T H I M P A C T : T E A M D Y N A M I C S Beginning the fix: Team leaders must first expose the hypocrisy of saying but not meaning and acknowledge their part in the charade, collecting anonymous examples of empty proclamations and challenging the overprotective mindset that inhibits the airing of criticism. They can initiate the process by asking the team to complete this sentence: “We say we want to …, but in fact, we….” As the paper company prepared for yet another round of downsizing, it was becoming increasingly difficult to pretend that the team was reinventing the business. The cognitive dissonance between the mantra and the reality became too great for the CEO to accept. “In one of these endless group executive meetings,” he told us, “I listened to myself and all my good, hard-working colleagues, and then I lost my temper and I said, ‘What are we doing here? We’re telling the same story time and again: How tough life is. How the government doesn’t understand us. The customers are tough; the competition is unfair. We’re talking, talking, talking about what the world is doing to us.’ ” The CEO acknowledged that the team was not, in fact, doing what it said it was doing nor what the company needed: reinventing its business model and processes. In this way, he demonstrated the level of candor and self-criticism needed to break the team out of its slump, closing the gap between meaning and saying. His frankness also freed the team to reflect on other delusions that were keeping it idling. It soon concluded that its capacity for reinvention was constrained by the group’s homogeneity. So the team decided to assign the reinvention challenge to a more diverse group of 12 people who included more women, people with experience outside the paper industry, and non-Nordics. This team would function as internal consultants. Handpicked from 160 internal applicants, the group was eclectic and far better equipped to imagine out-of-the-box solutions. Eight years on, the organization has transformed itself into a company specializing in renewable materials. According to the former CEO, the dynamics within the team also changed dramatically. “I think we have a very open dialogue now. We don’t argue anymore about ‘Is the world changing or not?’ It’s already changed. Now, it’s all about, ‘Can we get ahead of the curve? Can we change the world for the better?’ ” Team leaders play a key role in initiating the soul-searching, ensuring that the organization’s stated goal is the real goal, stressing a collective responsibility to keep one another honest, listening to alternative viewpoints, and breaking down the unproductive and misconceived connection between criticism and disloyalty. 3. You FEEL but can’t name. Some undiscussables are rooted in negative feelings — such as annoyance, mistrust, and frustration — that are difficult for team members to label or express constructively. But manifesting one’s anger or resentment is not the same thing as discussing it. For example, the top team of a German-based high-tech company was thrown into turmoil by unspoken tensions between two colleagues: one a fast-rising CTO, the other a recently hired COO. Following a series of clashes, they had stopped talking. Each felt the other was behaving unreasonably. The behavior or comments of colleagues with divergent perspectives can trigger allergic reactions, often based on misunderstandings. Research shows that healthy disagreements over what to do or how to do it can morph quickly into interpersonal conflicts.5 Too easily blamed on a vague “lack of chemistry,” these feelings can infect the whole team, especially when the pressure is on. Just one touchy relationship is enough to generate a malaise Team leaders must first expose the hypocrisy of saying but not meaning and acknowledge their part in the charade, challenging the overprotective mindset that inhibits the airing of criticism. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 10 Healthy disagreements can morph quickly into interpersonal conflicts. Just one touchy relationship is enough to generate a malaise that hinders team deliberations through emotional and social contagion. that hinders team deliberations through emotional and social contagion.6 Faulty perceptions mostly go uncorrected because the antagonists don’t test their inferences. Based on their own worldviews and self-protective instincts, they presume they know why the other party is acting in a particular way and let that drive their behavior. This leads to escalating tensions. Beginning the fix: The feuding parties need help to investigate the differences — in personality, experience, and identity — that sustain and fuel their apparent incompatibilities, their so-called lack of chemistry. The team leader’s role is to ensure that individuals feel equally welcome and accepted within the team and promote diversity as a source of insight, not friction. One strategy is to ask team members to complete the sentence “I feel …” to literally put a name to the feeling to surface whatever is bothering them. A neutral coach can help team members open up by asking essential follow-on questions and probing for clarification when needed. This process can be augmented with a formal assessment tool that captures individual team members’ personality profiles and a common framework that helps people understand the roots of their colleagues’ behaviors. In the case of the German high-tech company’s CTO and COO, a striking contrast in their profiles offered insight into some of the difficulties they were having. On one dimension of the personality assessment, the COO favored big picture thinking and gravitated toward new ideas, while the CTO was extremely detail-oriented and practical, leaning toward the tried-and-true. This insight helped explain why the CTO constantly raised objections to the COO’s sweeping solutions to problems. In the process of discussing how their personality scores tallied with their self-images, another factor emerged: The COO saw himself as a problem SLOANREVIEW.MIT.EDU solver, while the CTO defined himself as a selfstarter, relying on his own independent judgment. These differences in self-image helped explain why the valuable experience of the COO was resisted by the CTO, who resented interference and dreaded becoming “dependent.” At the same time, the COO felt frustrated that he was being prevented from solving the problem. The CTO appeared to the COO as a know-it-all; the COO saw the CTO as someone who could not and would not take advice. Unwittingly, each behaved in a way that refuted the other’s core work identity. Inevitably, they drove each other crazy. To diminish such tensions, you must try to disentangle intent from impact. Even if feedback and advice are well intentioned, they may challenge another person’s self-image as competent, honest, or likable, triggering a strong, negative emotional response. Once you understand where colleagues are coming from, it becomes easier to value and leverage their input without taking their comments or behavioral quirks as attempts to show off, frustrate, or take advantage. But self-knowledge is equally valuable: When you can see and describe your own tendencies accurately, your colleagues are less likely to take your quirks personally. The breakthrough, in the case of the high-tech company’s CTO and COO, was a role-play exercise, asking each to put himself in the other’s shoes. They proved so adept at describing how the other felt that they ended up laughing. There was no lack of empathy — just very different approaches and priorities. Realizing that their respective behaviors were not malevolent or personal, they were able to start working together more effectively, recognizing the contributions each could make to the other and their organization. They also were able to get feedback from other team members to help them maintain the behavioral changes to which they had agreed. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 11 C O L L A B O R AT I N G W I T H I M P A C T : T E A M D Y N A M I C S The good news is that destructive and unconscious dynamics lose their power when they become visible and a topic for discussion. 4. You DO but don’t realize. The deepest undis- cussables are collectively held unconscious behaviors. These undiscussables are the most difficult to uncover. Members of the team may be aware of isolated problems in their dynamic, but they cannot connect the dots and infer root causes, so they jump to the wrong conclusions about what is behind team inefficiencies and poor performance. Consider this example: The CEO of a French travel company complained about the dearth of debate and lack of engagement within his team. We sat in on one meeting, and he was right. The trouble was, he was the problem. He was disengaged and easily distracted, and team members unconsciously got the message that they were not important to him. This is what psychologists call projection, wherein we ascribe our own thoughts and feelings to someone else. The CEO was disengaged, so he thought the team was. Of course, the team quickly replicated his behavior, becoming disengaged itself, and the CEO had no idea he inspired it. Teams instinctively develop defensive routines to cope with anxiety, such as that generated by feeling ignored or undervalued. This allows them to avoid thinking about or even naming the underlying issues. But it also blocks learning, preventing the team from responding and adapting effectively to emerging challenges. Team members at the travel company were unwittingly mimicking their leader; that was their coping mechanism. If they were checked out, they wouldn’t be bothered by the fact that he was. As described by British psychotherapist Wilfred Bion, unconscious and unacknowledged undiscussables manifest in seemingly unrelated team dynamics — hence the difficulty connecting the dots. At the travel company, there were hub-andspoke exchanges with the team leader that prevented team members from interacting, conversations dominated by the same two people, and a distracting preoccupation with a fake foe. All these interactions impeded critical self-review.7 And they disguised the true source of dysfunction. Behavior patterns that emerge from anxiety begin on an unconscious level and then become part of “the way we do things.” Team members fall into rigid roles, sit in the same chairs, and follow rituals that impair their ability to question assumptions and get their jobs done. Beginning the fix: Though unnoticed by the team, warped interaction patterns may be readily discernible to outsiders. The team leader can invite a trusted adviser from another part of the organization or an external facilitator to observe the team and give feedback on communication habits, including body language, who talks and how often, whom people look at when they talk, who interrupts whom, who or what is blamed when things go wrong, what is not spoken about, who stays silent, and whose comments are ignored. A trained observer can then engage in what MIT Sloan School of Management’s pioneering organizational psychologist Edgar Schein calls humble inquiry, in which the aim is to elicit information and feelings important to the team’s mission. The questioner’s outsider status allows for naive, unthreatening questioning of the unconscious processes at play.8 The Five Whys technique (asking “Why?” at least five times), made famous in Six Sigma methodology, can help the outsider drill down to deeper levels and surface what the team is avoiding. Prior to beginning our work at the travel company, we asked to film one of the top team’s meetings (this is part of our usual process). We saw that there were lots of side conversations. People slouched and fiddled with their phones during presentations. The impression was of a group going through the motions. Then, we showed the team a series of clips focusing on all the occasions the CEO was distracted by his phone. Initial amusement turned to embarrassment as the sequence ran on and on, but we SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 12 interrupted it after three minutes and told the team, “Tell us what you see.” The CEO was shocked. “Had you told me I was doing it, I wouldn’t have believed you,” he said. The team members were also surprised, but once the evidence was visible to them, they had little difficulty decoding the message the CEO was sending: a lack of respect and appreciation for other people and their work. Of course, that discouraged open debate. The CEO’s behavior also authorized the team to act in similar fashion, producing the very outcomes — disengagement and unproductive meetings — that he complained about. The good news is that these destructive and unconscious dynamics lose their power when they become visible and a topic for discussion. But, to help reset their behavior in meetings and inculcate new habits, the team members also took two concrete measures: They agreed to a one-month ban on devices in their meetings (with fines donated to charity for violations), and they drew up a team charter clarifying new behavioral expectations that included listening to each other, asking more questions, delaying assumptions, and summarizing conclusions and follow-up actions. As is often the case, the content of the charter was not particularly original, but it empowered every team member to enforce the new ground rules in the moment by pointing to the prominently displayed document they had all signed. Six months later, the CEO told us that the team’s meetings were shorter, more focused, and generating richer debate. Team Detox Most teams have — and suffer from — undiscussables in all four categories. But instead of trying to fix all of them at once, we advise team leaders to take a sequential approach, starting with the two more conscious categories they can have an immediate impact on: knowing but not daring to say and saying but not meaning it. First things first. The best point of entry is making sure “we do what we say.” This is low-hanging fruit, as the consequences of “not doing what we say” are visible to all and reflect a collective failing rather than an individual one. Also, when the top team is involved, a misalignment between words and actions can have a profoundly corrosive impact on the entire organization, leading to cynicism, disengagement, and conflicts at all levels. As team leader, you are well placed to start the conversation about how to improve team processes and address dysfunctional communication patterns. You can engage in some preparatory reflection by asking yourself, “Is this a problem I have helped create?” Acknowledging your own responsibility is a powerful way of unblocking the discussion and setting an expectation of candor. Easy wins can help team members realize that what they gain will outweigh the pain — generating momentum to move from above-the-surface undiscussables to deeper undiscussables that usually require facilitation or external intervention. Team time. Surfacing and removing undiscussables is never a one-off exercise. To prevent the buildup of new undiscussables, you have to make time for inward-focused team talk, not just outwardfocused work talk. We once studied a Swiss negotiating team specializing in kidnappings and hostage situations. STATEMENT OF OWNERSHIP, MANAGEMENT, AND CIRCULATION Required by U.S.C. 3685). (1) Publication title: MIT Sloan Management Review. (2) Publication No.1532-9194. (3) Filing Date: 10/1/2019. (4) Issue Frequency: Quarterly. 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No. Copies of Single Issue Published Nearest to Filing Date: 25,038. (b) Total Paid Print Copies + Paid Electronic Copies: Average No. Copies Each Issue During Preceding 12 Months: 35,080. Actual No. Copies of Single Issue Published Nearest to Filing Date: 36,890. (c) Total Print Distribution + Paid Electronic Copies: Average No. Copies Each Issue During Preceding 12 Months: 36,585. No Copies of Single Issue Published Nearest to Filing Date: 39,034. Percent Paid (Both Print & Electronic Copies): Average No. Copies Each Issue During Preceding 12 Months: 96%. No. Copies of Single Issue Published Nearest to Filing Date: 95%. This Statement of Ownership will be printed in the Fall 2019 issue of this publication. I certify that all information furnished on this form is true and complete. Robert W. Holland, Jr. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 13 C O L L A B O R AT I N G W I T H I M P A C T : T E A M D Y N A M I C S With the stakes so high, the team could not afford to let undiscussables disrupt its process. The team was outstanding at monitoring its dynamics in real time (with the assistance of a designated observer), as well as reviewing what happened, taking account of feelings as well as facts. Similar principles hold in business. Highperforming teams pay attention not only to what they achieve but how they achieved it by working together. This does not come naturally. You have to work at it and introduce routines and forums to purge your team of undiscussables before they take root and cause problems. The top team of a fast-expanding European software group we worked with systematically devotes half a day during its twice-yearly retreats to a discussion of how the team is working together. The session is facilitated by the head of HR, who tells them, “You’re all busy running your areas. If you’ve stepped on one another’s toes along the way, now’s the time to get it out on the table.” As a more regular exercise, at the end of meetings, the CEO sometimes asks team members to complete the phrase “I’m concerned about …” to try to catch potential issues early on. We have seen other teams use similarly simple practices to prevent undiscussables from accumulating. Some adopt a check-in routine at the start of meetings to iron out niggling concerns that might be bothering the participants. An alternative is to air these matters at the end of meetings by going around the table three times, asking, “What was helpful?” “What was not helpful?” and “What would you do differently at the next meeting?” A healthy team must be able to review and revise its own functioning. Exception to the rule. While the pressure to avoid tough issues never lets up, surfacing undiscussables almost always pays off — provided it is done in a constructive manner. There is just one situation where we would not recommend it: If you’ve inherited a dysfunctional team and have to achieve something fast, spending time diagnosing and unearthing undiscussables may not be an optimal approach. In such instances, it is often more effective to adopt a positive psychology strategy, applying appreciative inquiry, such as discussing what the team does well or has done right, with the same forensic rigor you would apply to unpacking dysfunctional behaviors and events, and building from there.9 The goal in this situation is to find ways to work around any weaknesses and align strengths to develop positive emotions and relationships before taking on the hard work of discussing undiscussables. However, the takeaway remains the same: In an increasingly fast-paced world, teams desperately need a space to talk about the way they go about their business. Ginka Toegel is a professor of organizational behavior and leadership at IMD in Lausanne, Switzerland. Jean-Louis Barsoux is a term research professor at IMD. Comment on this article at http://sloanreview .mit.edu/x/61108. REFERENCES 1. J. Carreyrou, Bad Blood: Secrets and Lies in a Silicon Valley Startup (New York: Alfred A. Knopf, 2018): 47. 2. I.M. Nembhard and A.C. Edmondson, “Making It Safe: The Effects of Leader Inclusiveness and Professional Status on Psychological Safety and Improvement Efforts in Healthcare Teams,” Journal of Organizational Behavior 27, no. 7 (November 2006): 941-966. 3. S. Miller, D. Wackman, E. Nunnally, et al., Straight Talk: A New Way to Get Closer to Others by Saying What You Really Mean (New York: Rawson Associates, 1984). 4. C. Argyris and D. Schön, Organizational Learning: A Theory of Action Perspective (Reading, Massachusetts: Addison-Wesley, 1978). 5. L.L. Greer, K.A. Jehn, and E.A. Mannix, “Conflict Transformation: A Longitudinal Investigation of the Relationships Between Different Types of Intragroup Conflict and the Moderating Role of Conflict Resolution,” Small Group Research 39, no. 3 (June 2008): 278-302. 6. K. Jehn, S. Rispens, K. Jonsen, et al., “Conflict Contagion: A Temporal Perspective on the Development of Conflict Within Teams,” International Journal of Conflict Management 24, no. 4 (2013): 352-373. 7. W.R. Bion, Experiences in Groups (1961; repr., London: Routledge, 1989). 8. E.H. Schein, Humble Inquiry: The Gentle Art of Asking Instead of Telling (San Francisco: Berrett-Koehler Publishers, 2013). 9. D.L. Cooperrider and S. Srivastva, “Appreciative Inquiry in Organizational Life,” in Research in Organizational Change and Development, ed. R.W. Woodman and W.A. Pasmore (Stamford, Connecticut: JAI Press, 1987): 129-169. Reprint 61108. Copyright © Massachusetts Institute of Technology, 2019. All rights reserved. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 14 [INTERVIEW ] Why Teams Still Need Leaders When people collaborate remotely, hierarchy keeps them moving in the same direction — but leaders can flex to promote autonomy and creativity. LINDRED (LINDY) GREER, INTERVIEWED BY FRIEDA KLOTZ I n recent years, agile and flat working structures have gained favor at many companies and struck a responsive chord with employees who are put off by stifling hierarchies. But doing away with hierarchy can cause confusion, spark complaints from employees, and hasten departures, says Lindred (Lindy) Greer, associate professor of management and organizations at the University of Michigan’s Ross School of Business and faculty director at its Sanger Leadership Center. While agreeing that rigid forms of hierarchy can impede innovation, she has found that it can provide many important benefits when managed well. Greer first became interested in team structures more than a decade ago while investigating diversity, hoping to understand how gender and race play out in social interactions. She found that team members tended to be less focused on their colleagues’ gender and ethnicity than on the power they wielded. She then decided to explore how hierarchies work in organizations and what happens when they go wrong. She has written a number of groundbreaking MICHAEL AUSTIN/THEISPOT.COM articles on hierarchy, status, and the social dynamics of teams, including, most recently, “Why and When Hierarchy Impacts Team Effectiveness” in the Journal of Applied Psychology.1 MIT Sloan Management Review correspondent Frieda Klotz spoke to Greer as she was about to travel to Seattle to coteach a course on leadership development with an orchestra conductor at a business incubator. What follows is an edited version of their conversation. in power struggles, and battle over rank. All of this harms performance. One of the burning questions in management research right now is, what are the best alternatives to hierarchy? But it’s a complex picture — hierarchy isn’t always bad or harmful, and its effectiveness may depend on where and how it’s implemented, and how the person at the top manages the hierarchy. For example, there is growing interest in remote work and virtual teams, and in that context hierarchy works quite well. Why is hierarchy a good way to structure virtual teams? GREER: Hierarchy makes it easier to coor- dinate how people work together. So for teams that most need structure — those operating under uncertain conditions or when the task is unclear, as often happens in virtual or remote teams — hierarchy is highly effective. It still has downsides, but the need for it is so great that it trumps whatever internal politics and bureaucracy come with it. You simply need that structure to keep people moving together. Often when people work remotely, there is an assumption that they have more autonomy and freedom than office workers. But is MIT SLOAN MANAGEMENT REVIEW: A few years ago, many management experts and business leaders were saying that hierarchy had had its day and that the future belonged to flat organizations. What’s happening? Is the pendulum swinging back? GREER: Hierarchy is probably the most common form of organizing the workplace. There aren’t a lot of good alternatives to it, and companies need some say in managing workers, particularly as they scale. However, there are also a lot of downsides to hierarchy, and over the last decade my collaborators and I have documented the many ways in which it can go wrong. Team members squabble over resources, engage it wrong to think so? GREER: Hierarchy does not have to mean less autonomy. For example, when I talk to the CEOs of companies doing really well with a remote-work model — I’m thinking about Automattic, which owns WordPress, or 10up, a successful web-design company — they emphasize the need for SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 15 FRONTIERS Why Teams Still Need Leaders (Continued from page 15) structure. In practice, this means that they put much more effort into coordinating how people work together than other companies. They formalize role descriptions and onboarding better, and they’re more intentional and specific in their recruiting and hiring. For example, they’ll do interviews through Slack to test independence and communication virtually. They say this makes them better at navigating the people side of business largely because the remote workforce is utterly intentional about the way interactions are structured. But even though the workers are accountable to someone, they can still retain decision control in their areas of expertise because the company has clear values that guide how to make decisions. That’s the thing: Hierarchy can go hand in hand with autonomy. It doesn’t have to be one or the other. How does that kind of conflict affect team performance? GREER: In the 2018 paper in the Journal of Applied Psychology, my coauthors and I showed that on average, hierarchy causes power struggles and personal conflicts and can thereby undermine team performance. In other research, we found that 70% of the time peer disputes turned into personal conflicts and power struggles.2 This was really bad for the teams’ productivity as well as for the employees’ happiness. What does your recent research say about how hierarchy works or doesn’t work in an office environment? GREER: Research has generally historically focused on the benefits of hierarchy. The core assumption, drawn from animal behavior, was that hierarchy was a natural way to organize people, that if one person was dominant, others would be more submissive. The research assumes that people find hierarchy comfortable and seek it out in times of crisis. My research challenges the view that hierarchy is always good by showing that it can lead to inequities and conflicts within teams. One of the problems is that the structure it provides isn’t always the right one, in both the form of structure and the context in which it is applied. For example, people aren’t always happy about how they’re ranked, and there can be power struggles and turmoil around roles. In some contexts, like creative brainstorming, hierarchy just gets in the way and fosters competition rather than collaboration. “The Navy SEALs have an excellent approach: On the ground, there’s a clear chain of command. … But when they sit down to debrief, everybody’s equal and has a voice.” — LINDY GREER Given the potential problems, what can companies do? GREER: Managers need to be smarter about how they use hierarchy. Good leaders know how to flex — to use hierarchy to get things done but also to flatten the organization when they want workers to be creative. The Navy SEALs have an excellent approach: When they’re on the ground, there’s a clear chain of command. If their commander says, “Get out now,” there’s no playing devil’s advocate — no one argues. You listen and you fall into rank. But once they go back to the base to debrief, Navy SEALs literally take their stripes off at the door. When they sit down, everybody’s equal and has a voice. This is important because one person on the team might have noticed something really critical that nobody else saw, which could inform their plans for the next assignment. So they flatten out; they share ideas. Then they go back outside, put on their stripes and uniforms, and literally fall into rank again. I spent the last half year or so studying startups to see if there were companies that had effective ways of flexing as well. These were early-stage tech companies, representing both B2B and B2C business models. Many of them just accepted hierarchy, while others were resigned to being flat and chaotic. But some of the best-managed companies were able to flex the hierarchy fluidly. Day to day and meeting to meeting, I saw managers who could make the team hierarchical but also flatten it when they needed to. I think realizing how to manage that duality — and allow for autonomy — is at the heart of this. At the end of the day there needs to be a leader, but it doesn’t mean every interaction is hierarchical. Are there special skills managers need to learn? GREER: Companies are realizing that to do hierarchy well, they really need to invest in leadership development. Even startups realize that leadership is a set of behavioral tools that can be learned. A lot of the companies are also experimenting with different types of structures, where project teams are flatter but report regularly to a panel of internal company advisers (as opposed to leaders). The trouble is that a lot of these experiments are not data driven. They don’t collect large-scale data to see whether the infrastructure actually works. One experiment that has received a fair amount of exposure is known as holacracy. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 16 It was introduced by management at Zappos, the online shoe retailer, in 2013, where it was used to scale back hierarchy in favor of flat, cross-functional groups. In the course of the experiment, Zappos discovered that it needed an elaborate rule book to guide people on how to use the holacratic method. In fact, it was much more complicated than the hierarchy they’d started off with. When the CEO, Tony Hsieh, gave employees the option of accepting the new system or leaving the company, one-third of them walked out.3 Since then, Zappos has made a bunch of changes but has maintained some aspects of the system. Although I think ideas like holacracy have value, in my view imposing rigid schemes is the wrong way to go. As for other approaches, there are aspects of agile that have shown promise. But companies still need to figure out how to allow for moments of hierarchy. Members of agile teams still need to coordinate and find ways to resolve conflicts. Even if you’re not using hierarchy, you always need a decision-making role. The question is, how can you encourage working together and coordination in a simple and elegant manner? hierarchical, while training both leaders and teams how to adapt the hierarchical structure to handle the demands. So where does this leave managers? Do they 1. L.L. Greer, B.A. de Jong, M.E. Schouten, et al., “Why and When Hierarchy Impacts Team Effectiveness: A Meta-Analytic Integration,” Journal of Applied Psychology 103, no. 6 (June 2018): 591-613. keep looking for good alternatives to hierarchy or focus on the flexible flattening you’ve described? GREER: Until we have an alternative model that is established and has been shown to work, the simplest and safest approach for companies is to use hierarchy but also to train leaders to use it well: to be able to flex and adapt how they use it. This means selecting leaders who have the skill sets to foster teams that are empowered and Frieda Klotz (@friedaklotz) is a freelance journalist and correspondent for MIT Sloan Management Review. Comment on this article at http://sloanreview.mit.edu/x/61110. REFERENCES 2. F.R.C. de Wit, L.L. Greer, and K.A. Jehn, “The Paradox of Intragroup Conflict: A MetaAnalysis,” Journal of Applied Psychology 97, no. 2 (March 2012): 360-390. 3. A. Groth, “Is Holacracy the Future of Work or a Management Cult?” Oct. 9, 2018, www.qz.com. Reprint 61110. Copyright © Massachusetts Institute of Technology, 2019. All rights reserved. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 17 R E D E S I G N I N G W O R K : O P E R AT I O N S A New Approach to Designing Work For years, management thinkers assumed that there were inevitable trade-offs between efficiency and flexibility — and that the right organizational design for each was different. But it’s possible to design an organization’s work in ways that simultaneously offer agility and efficiency — if you know how. BY NELSON P. REPENNING, DON KIEFFER, AND JAMES REPENNING YOU CAN HARDLY pick up a business publication without reading about the ever-increasing pace of change in technologies and markets and the consequent need for more adaptable organizations. Given the imperative of adaptability, it is not surprising that few words have received more attention in recent conversations about management and leadership than “agile.”1 Organizations ranging from large corporations like General Electric Co. to tiny startups are trying to be both flexible and fast in the ways that they react to new technology and changing market conditions.2 The word “agile” appears to have been first applied to thinking about software by 17 developers in 2001.3 Having experimented with more iterative, less process-laden approaches to developing new applications for several decades, the group codified its experience in an agile manifesto. “We are uncovering better ways of developing software by doing it and helping others do it,” they wrote. In software development, agile now has a variety of manifestations, including scrum, extreme programming, and feature-driven development.4 The results have been significant. A variety of studies show that agile software development methods can generate a significant improvement over their more traditional predecessors.5 But what does this mean outside of software? Can agile methods be successfully applied to other types of work? Many proponents (a number of whom started in the software industry) argue that the answer is yes, and a growing collection of books, papers, and blog posts suggests how it might be done.6 The evidence, however, remains limited to date, and a recent article by two THE LEADING QUESTION How can companies achieve both agility and efficiency in their work? FINDINGS Make a distinction between welldefined and ambiguous tasks. Break processes into smaller units of work that are more frequently checked. Identify points at which collaboration is needed. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 18 R E D E S I G N I N G W O R K : O P E R AT I O N S ABOUT THE RESEARCH Our dynamic work design framework originated more than 20 years ago when two of the authors worked together to improve both manufacturing and product development at HarleyDavidson Inc. (At the time, one of the authors [Don Kieffer] was leading HarleyDavidson’s largest engine development project, and another [Nelson Repenning] was doing research on failures in new product development.) Following the principles of action research, in the ensuing decades we have regularly iterated between trying to help organizations improve their work design and building a theory grounded in the underlying social science for why these interventions did or did not work. Over the years, we have done dozens of projects in a variety of industries, including oil and gas, software, and genetic sequencing. We have also supervised more than 1,000 work design projects done by executives in our courses at MIT. of agile’s founders cautions against applying agile indiscriminately.7 The blogosphere is also replete with discussions of an ongoing agile backlash. To provide some practical advice to business leaders trying to understand what agile might mean for their organizations, we take a different approach. Our research suggests that in applying agile methods from the software industry to other domains, managers often confuse practices and principles. When agile methods work, they do so because the associated practices manifest key behavioral principles in the context of software development. But, successful as those practices can be when developing software, there is no guarantee that they will work in other contexts. The key to transferring a set of practices from one domain to another is to first understand why they work and then to modify them in ways that both match the new context and preserve the underlying principles. The goal of this article is to help you understand several key work design principles that undergird not only agile practices in software but also Toyota Motor Corp.’s well-known production system in manufacturing. Once you understand these underlying work design principles — through a framework we call dynamic work design — you can create work processes in your own organization that are both more flexible and more efficient. (See “About the Research.”) Stability Vs. Uncertainty Academics and managers alike long believed that organizations had to make trade-offs between flexibility and efficiency. A central notion in the academic theory on organizational design is contingency, the idea that organizations and their associated processes need to be designed to match the nature of the work they do. One of the most common variables in contingency theory is the degree of uncertainty in the surrounding environment (often also conceptualized as the need for innovation). When both the competitive environment and the associated work are stable and well understood, contingency theory suggests that organizations will do best with highly structured, mechanistic designs. In contrast, when facing highly uncertain situations that require ongoing adaptation, the theory suggests that organizations will do better with more flexible, organic designs.8 An early advocate of the mechanistic approach to work design was Frederick Winslow Taylor, author of the 1911 book The Principles of Scientific Management.9 Taylor’s essential insight was simply that if work is regularly repeated, it can also be studied and improved. In stable, well-understood environments, it is thus often best to organize work in ways that leverage the efficiency that comes with repetition. For example, in a modern factory, welldefined tasks are specified, and the work proceeds serially, moving from one carefully constructed and defined set of activities to the next. There is little need for collaboration in these settings, and the organizational structure that surrounds stable and repeatable work tends to be hierarchical to ensure that everybody follows the prescribed work design. The cost of such efficiency is adaptability. Due to the high degree of routinization and formalization, mechanistic process designs are difficult to change in response to new requirements. Though efficient, a mechanistic design is not agile. When, however, the environment is unstable and uncertain, discrete tasks are harder to define, and therefore organizations cannot rely on a sequence of clearly defined steps. For example, product development teams often face challenges for which there is little precedent. Contingency theory holds that in unpredictable environments like new product development, organizations rely more on things like training and collaboration and less on routinization and careful specification. Developing a breakthrough product or service usually can’t be organized like a factory assembly line. Marketing experts may develop a set of initial requirements, which are then passed on to designers and engineers, but the requirements often evolve through multiple iterations as designers and engineers determine what is technically feasible. Consequently, effective development processes often require ongoing real-time collaboration, rather than rote adherence to a set of sequentially organized steps. Though the contingency theory was first developed more than 50 years ago, its basic insights reappear frequently in contemporary management thinking. Many flavors of process-focused improvement, such as total quality management, Six Sigma, and business process reengineering, are extensions to Taylor’s fundamental insight that work that is repeated can also be improved. Recently, the increasingly popular design thinking approach can be thought of as a charge to tackle ambiguous, SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 19 uncertain tasks with a more collaborative, less hierarchical work design. 10 In general, contingency theory gives managers a straightforward approach to designing work: Assess the stability of the competitive environment and the resulting work, and then pick the best mix of defined tasks and collaboration to fit the challenge at hand. (See “A Traditional Approach to Work Design.”) If the work being designed consists of well-defined tasks (for example, assembling components), then it is best to organize it serially, or, as we label the cell on the bottom left, using the “factory” mode. Conversely, if the work is highly ambiguous and requires ongoing interaction (for example, designing new products), then the work is best organized collaboratively, or, as we label the cell on the top right, in “studio” mode. Though powerful, this approach to work design is not entirely satisfying for two reasons. First, it describes an unpalatable trade-off: Work done using the serial factory design isn’t very flexible, making it hard to adapt to changes in external conditions, and work done using the collaborative studio approach often isn’t very efficient. Second, few types of work perfectly fit the archetype of well-defined or ambiguous work. Even the most routine work has the occasional moment of surprise, and conversely, even the most novel work, such as designing a new product or service, often requires executing routine analysis and testing activities that support each creative iteration. Academic theory notwithstanding, real work is a constantly evolving mix of routine and uncertainty. At first glance, agile methods appear to fall more toward the collaborative side of the work spectrum. However, our research suggests a different interpretation. The conventional approach to process and organizational design is almost entirely static, implicitly presuming that once a piece of work has been designed, everything will go as planned. In contrast, a dynamic approach to work design suggests viewing A TRADITIONAL APPROACH TO WORK DESIGN In a traditional approach to work design, if the work being designed consists of well-defined tasks (for example, assembling components), then it should be organized serially, in what we call the “factory” mode. Conversely, if the work is highly ambiguous and requires ongoing interaction (for example, designing new products), then the work should be organized collaboratively, in what we call the “studio” mode. Organize collaboratively “Studio” Organize serially “Factory” Well-defined work Ambiguous work work as an ever-evolving response to the hiccups and shortfalls that are inevitable in real organizations. As we will describe later in this article, agile methods actually transcend the traditional serial vs. collaborative work framework by creating better mechanisms for moving between the two basic ways of organizing work. By identifying mechanisms to cycle back and forth between well-defined factory-style tasks and collaborative studio modes when appropriate, an agile approach can considerably reduce the trade-off between efficiency and adaptability. Dynamic Work Design at Toyota What does this look like in practice? Consider a well-known example of work and organizational design, Toyota’s Andon cord. Work on Toyota assembly lines is the epitome of the serial, mechanistic design. Tasks are precisely specified, often detailing specific arm and hand movements and the time A dynamic approach to work design suggests viewing work as an ever-evolving response to the hiccups and shortfalls that are inevitable in real organizations. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 20 R E D E S I G N I N G W O R K : O P E R AT I O N S that each action should take. In a plant we visited recently, training for a specific role began with the trainee learning to pick up four bolts at a time — not three and not five. Only when the trainee could pick up four bolts regularly was she allowed to learn the next motion. But, despite an attention to detail that would have made Taylor proud, sometimes things go awry. In the Toyota scheme, a worker noticing such an issue is supposed to pull what’s known as the Andon cord (or push a button) to stop the production line and fix the problem. While the management literature has correctly highlighted the importance of allowing employees to stop the line,11 what happens after the cord is pulled might be more important. During a recent visit we took to a Toyota supplier in Toyota City, Japan, we observed that one operator on the factory floor was struggling to complete her task in the allotted time, and so she hit a yellow button, causing an alarm to sound and a light to flash. (This factory has replaced the Andon cord with a yellow button at each operator’s station.) Within seconds, the line’s supervisor arrived and assisted the operator in resolving the issue that was preventing her from following the prescribed process. In less than a minute, the operator, now able to hit her target, DYNAMIC WORK DESIGN AT A TOYOTA SUPPLIER At a Toyota supplier, a worker on an assembly line can press a button if he or she faces a problem. A manager then helps solve the problem through collaboration; once the problem is solved, the worker returns to his or her task. Pushing the button thus initiates a temporary shift in the work design — from serial to collaborative work and then back again — that increases agility. Agile as Dynamic Work Design “Studio” Problemsolving Organize collaboratively “Factory” Organize serially Push button Change work mode Problem solved Problem Well-defined work returned to her normal routine, and the supervisor went back to other activities. What, from a work design perspective, happened in this short episode? Initially, the operator was working in the “factory” mode, executing well-defined work to a clearly specified time target. (See the box on the lower left in the exhibit “Dynamic Work Design at a Toyota Supplier.”) But when something in that careful design broke down, the operator couldn’t complete her task in the allotted time. Once the problem occurred, the operator had two options for responding. She could have found an ad hoc adjustment, a workaround or shortcut that would allow her to keep working. But this choice often leads to highly dysfunctional outcomes.12 Alternatively, as we observed, she could push the button, stop the work, and ask for help. By summoning the supervisor to help, pushing the button temporarily changed the work design. The system briefly left the mechanistic, serial mode in favor of a more organic, collaborative approach focused on problem resolution. Once the problem was resolved, the operator returned to her normal task and to the serial work design. The Toyota production system might at first appear to be the ultimate in mechanistic design, but a closer look suggests something far more dynamic. When a worker pulls the Andon cord, the system actually moves between two modes based on the state of the work. Though the nature of the work couldn’t be more different, such movement between the two modes is also the key to understanding the success of agile software development. Ambiguous work As we discussed earlier, the last two decades have witnessed a significant change in the conduct of software development. Whereas software was once largely developed using what is known as the waterfall approach, agile methods have become increasingly popular. From a dynamic work design perspective, the waterfall and agile approaches differ significantly. In the waterfall approach, the software development cycle is typically divided into a few major phases. A project might include a requirements phase, an architecture development phase, a detailed coding phase, and a testing and installation phase. A waterfall project typically cycles between three basic SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 21 Checking in with more senior leadership only in the form of periodic phase-gate reviews means that the entire team could work for months before realizing they are not meeting management’s expectations. modes of work. First, the bulk of the time is spent by software architects and engineers working individually or in small groups, completing whatever the specific phase requires. Second, typically on a weekly basis, those people leave their individual work to come together for a project meeting, where they report on their progress, check to ensure mutual compatibility, and adapt to any changes in direction provided by leadership. Third, at the end of each phase, there is a more significant review, often known as a “phase-gate review,” in which senior leaders do a detailed check to determine whether the project is ready to exit that phase and move to the next. Development cycles for other types of nonsoftware projects often work similarly.13 Agile development processes organize the work differently. For example, in the scrum approach14 (one version of agile), the work is not divided into a few major phases but rather into multiple short “sprints” (often one to two weeks in length) focused on completing all of the work necessary to deliver a small but working piece of software. At the end of each sprint, the end user tests the new functionality to determine whether or not it meets the specified need. Like the waterfall method, the agile approach to software development also has three basic work modes — individual work, team meetings, and customer reviews — but it cycles among them very differently. First, proponents of agile suggest meeting daily — thus moving from individual work to teamwork and back every day — in the form of a stand-up or scrum meeting, where team members report on the day’s progress, their plans for the next day, and perceived impediments to progress. Second, agile recommends that at the end of each sprint, the team lets the customer test the newly added functionality. Finally, in something akin to the Andon cord, some versions of agile also include an immediate escalation to the entire team when a SLOANREVIEW.MIT.EDU piece of code does not pass the appropriate automated testing, effectively again moving the system from individual work to the team collaboration mode. Viewed from a dynamic work design perspective, agile offers two potential benefits over waterfall. First, in waterfall development, the frequency of collaborative episodes is usually too low, both among the team members and between the team and its customers. A developer working for a week or two without a checkin could waste considerable effort before it’s clear that he or she has made a mistake or gone off course. In practice, developers often do not wait this long and informally check in with supervisors or teammates. While seemingly functional, these check-ins can lead to a situation in which the entire team is not working from a common base of information about the state of the project. In such cases, the operating mode starts to migrate from the box on the lower left, the “factory” mode, to the one on the lower right, where ambiguous work is organized serially. This results in costly and slow iteration, which we call ineffective iteration. (See “Dysfunctional Dynamics,” p. 35.) Research suggests that in R&D processes, this mode can be highly inefficient.15 Similarly, checking in with more senior leadership only in the form of periodic phase-gate reviews means that the entire team could work for months before realizing that it is not meeting management’s expectations, thus also potentially causing rework. The agile approach to software development also improves the quality of the time that developers spend working alone. The focus on developing pieces of functionality means that both the team and the customer are never more than a few weeks away from a piece of software that can be used, making it far easier to assess whether it meets the customer’s need. In contrast, in waterfall, the early phases are characterized by long lists of requirements and features, but there is nothing to try or test. It’s not surprising that waterfall methods often lead to projects in which major defects SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 22 R E D E S I G N I N G W O R K : O P E R AT I O N S and other shortfalls are discovered very late in the development cycle and require costly rework.16 Applying Dynamic Work Design Both the Toyota production system and agile-based software methods are thus examples of what we call good dynamic work design. In contrast to traditional static approaches, dynamic work design recognizes the inevitability of change and builds in mechanisms to respond to that. Once managers recognize the necessity of moving between more individual and more collaborative modes of work, they can build on four principles to create shifting mechanisms that are well matched to the work of their organization. 1. Separate well-defined and ambiguous work. Begin by clearly separating well-defined and ambiguous tasks. Trying to handle both types of work in the same process often leads to trouble. (See “Dysfunctional Dynamics.”) Often, the two types can be separated by inspection, but if not, then look for the signature element of ambiguous work, iteration. When work is well defined, it can be moved to the next stage like the baton a relay runner hands off. When done correctly, it doesn’t need to come back. In contrast, when work is ambiguous, even the best effort often needs to be revisited. If you find that a particular task often requires multiple iterations through the same set of steps, that’s a good sign that you are confronting ambiguity inefficiently. 2. Break processes into smaller units of work that are more frequently checked. If you strip away all the hype, the agility of any work process — meaning its ability to both adjust the work due to changing external conditions and resolve defects — boils down to the frequency and effectiveness with which the output is assessed. In both traditional, pre-Toyota manufacturing and waterfall software development, the assessments are infrequent and not particularly effective. Consequently, both approaches tend to be slow to adjust to changes in the external environment, and quality will be achieved only through slow and costly rework cycles. In contrast, when assessments are frequent and effective, the process will be highly adaptable and quality will improve rapidly. The fundamental recipe for improved process agility is this: smaller units of work, more frequently checked. 3. Identify the chain of individuals who support those doing the work. It is also important to identify the help chain — the sequence of people who support those doing the work. In manufacturing, the help chain starts with a machine operator and extends from foremen to supervisors all the way up to the plant manager. In software, the help chain often begins with an engineer and moves through the team leader to more senior managers, ultimately ending with the customer. It is critical, in our experience, that you identify the chains of individuals who do and support the work, not their roles, departments, or functions. Increasing agility requires knowing whom to call when there is a problem or feedback is needed. 4. Introduce triggers and checks that move work into a collaborative mode. Once you understand the help chain, you have two basic mechanisms for activating it: triggers and checks. A trigger is a test that reveals defects or misalignment and then moves the work from a factory mode to a more collaborative mode. In our opening example, the Toyota operator’s inability to complete the assembly task on time triggered her pushing a button and then receiving help from a supervisor. A check involves a prescheduled point when the work is moved to a more collaborative environment for assessment. In agile software development, this shift happens daily in stand-up meetings where the team quickly assesses the current state of the project. Completing a sprint creates a second opportunity, this time to check in with the customer. Improving Procurement Performance Using this dynamic work design framework within a company can lead to significant improvements in both efficiency and adaptability. Consider the case of a company we’ll call “RefineCo,” which owns several oil refineries and distribution terminals in the United States. The company had a procurement organization that was uncompetitive by almost any benchmark. RefineCo paid more for similar parts and services than its competitors, and the procurement group’s overhead costs were higher than the industry average. Even more troubling, when critical parts were not delivered to a refinery, it often turned out that the location was on “credit hold” due to an inability to pay the supplier in a timely fashion. Every participant in the system, from senior management down to the shipping and receiving clerks, was frustrated. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 23 DYSFUNCTIONAL DYNAMICS What happens when organizations don’t do a good job of cycling between factory and studio modes of work? We have observed two related failure modes, ineffective iteration and wasted attention. When they are combined, they create a truly unproductive work design — one we have dubbed the axis of frustration. (See “The Axis of Frustration.”) Ineffective Iteration Consider first what happens when elements of the work in question are highly ambiguous but are nonetheless organized serially (captured in the box in the lower right-hand corner). Relative to a more collaborative design, this approach tends to create slow and costly iteration. The lack of speed comes because the ambiguity must travel among participants to be resolved, thus requiring multiple rounds, each of which takes time. Worse, when knowledge work is designed serially, many of these interactions take place through email or text messaging. Research suggests both that such communication modes are less effective for reducing ambiguity than face-to-face communication and that those sending such messages are unaware of those limits.i Trying to resolve ambiguity via email or text messaging tends to create more misunderstandings and often necessitates multiple iterations. Wasted Attention On the flip side, organizing well-defined work in a collaborative fashion also creates inefficiency. If the work is clearly defined, then it doesn’t benefit from a collaborative approach, and collaboration just multiplies the cost. Worse, too much collaboration may prevent the efficiencies that come with the learning curve that emerges when people repeat the same task.ii meetings. (As a manager we once interviewed said, “I knew my project was in trouble when I was required to give hourly updates.”) But the form of those reviews makes all the difference. If they are well designed and focus on resolving the key problems that are causing the iteration, then they can move the system back to a more productive cycling between factory and studio modes. Such interventions, however, are the exception rather than the rule. THE AXIS OF FRUSTRATION Organize collaboratively The Axis of Frustration Whereas functional work processes move between the factory and studio modes, our research suggests that absent careful design attention, processes can devolve to the point where they move between the failure modes described above, oscillating between wasted attention and ineffective iteration — the dynamic we call the axis of frustration. Getting stuck on the axis of frustration typically starts with time pressure — a project is behind schedule or a more repetitive process is not delivering on its targets. When people feel they are behind, they don’t want to take the time to shift into collaborative studio mode for problem-solving, preferring to stay in the factory box on the lower left and “just get the work done.” The consequence of this decision is to leave one or more problems unresolved, whether it is an element of a product design that doesn’t work or a defect in a manufactured product. Eventually, these problems will be discovered, usually by an activity downstream from the one that generated it. And, if this problem is not then solved in collaborative studio mode (again due to time pressure) but instead sent back for rework, then the system has effectively moved from the box on the lower left to the box on the lower right and is now in “ineffective iteration” mode. The consequence of ineffective iteration is that the process becomes increasingly inefficient and incapable of meeting its targets. Senior leaders are, of course, unlikely to stand idly by and will eventually intervene. Unfortunately, the typical intervention is often to scrutinize the offending process in more detail, usually in the form of more frequent and more detailed review Wasted attention “Studio” The axis of frustration Organize serially “Factory” Ineffective iteration Well-defined work Ambiguous work When organizations make the mistake of both structuring well-defined work collaboratively and ambiguous work serially, the result is a highly inefficient process we call the axis of frustration. This process oscillates between wasted attention and ineffective iteration. Most work processes have not been designed with escalation mechanisms in mind. So, when senior managers want to intervene and scrutinize a project, they don’t know where to look and want to review everything. The result of such scrutiny is long review meetings, the majority of which focus on elements of the process that are just fine, thereby trapping the process in the upper left-hand box, “wasted attention.” Worse, long review meetings and the preparation that they require steal time and resources from actual work, thus intensifying the time pressure that prevented a proper shift between work modes in the first place. Without careful attention to the mechanisms that move a process between the individual and collaborative modes, processes can increasingly cycle between ineffective iteration and wasted attention, basically moving between frantically trying to solve (or at least hide) the latest problem before the next review, and endless, soul-destroying review meetings that never get to solving the problems that would really make a difference. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 24 R E D E S I G N I N G W O R K : O P E R AT I O N S Long turnaround times created unhappy customers and suppliers who constantly called to complain and ask about their particular order or payment. The procurement system at each of RefineCo’s sites worked roughly as follows. To purchase an item or service from an outside vendor, an employee would enter the requirements into the electronic procurement system, which would then appear as a request to the central procurement function. The staff in the procurement office would then review the request and issue a purchase order. That order would go to the supplier. When the product arrived at the refinery or the service was completed, a packing slip or service order verification slip would be generated, which would also be entered into the procurement system. Later, the supplier would generate an invoice that was also entered into the system. The electronic system would then perform a three-way match to verify that everything was done correctly: The purchase order should match the verification receipt, which, in turn, should match the invoice. If there was not a three-way match, the invoice would be “kicked out” of the system and the supplier would not get paid until the discrepancy was resolved. The job of resolving those discrepancies fell to the staff in the refinery’s purchasing office. Unfortunately, the products and services procured frequently failed the three-way match, leading to both an overburdened purchasing department and frustrated suppliers. Though the refinery was part of a large and successful company, it was frequently on credit hold with its suppliers for failure to pay invoices on time, making it difficult for the staff to do their jobs and run the plant safely. The dedicated procurement staff worked 10-plus hours per day and had hired temporary workers to help manage the backlog, but they were still falling behind. Most of the members of the procurement team complained bitterly about being “overworked” and how “screwed up the system was.” Nobody saw any opportunity for improvement beyond adding what appeared to be much-needed staff. For us, the critical moment in our work with the procurement staff came when one of the longtime team members explained that a good purchase request contained “all the information I need” and could be turned into an official purchase order in “five to 10 minutes.” A difficult one, however, lacked key pieces of information and might require one to two hours to process as the purchasing staff traded emails with both the requesting unit and the supplier. Despite this effort, difficult purchase orders were usually the ones that failed the three-way matching process and got kicked out of the system. Further investigation revealed that the purchase order system was completely gridlocked with the kicked-out orders, and the team spent much of its time trying to clear the backlog. The system had descended into the classic “expediting” or “firefighting” trap: There were so many purchase orders in process that the turnaround time for any given one was very long. But long turnaround times created unhappy customers and suppliers who constantly called to complain and ask about their particular order or payment. Consequently, the procurement team was constantly reprioritizing its work and reacting to whichever customer or supplier was most unhappy. Our first insight came in recognizing that the procurement team was engaged in two different types of work that corresponded to what we call serial “factory” work and collaborative “studio” work. When the requested item was standard and all the needed information was provided, a single person could easily process the request without collaboration; then, once the purchase order was entered, it would easily flow through the system, just like an item on an assembly line. However, standard requests flowed easily through the system only if the request came with the correct information. If it did not, then it could require several rounds of iteration, usually via email, to issue the purchase order. So the purchasing function created a simple checklist that described a good purchase request. The idea was to ensure that standard orders would always arrive with the correct information. To give the various departments an incentive to use the checklist, the SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 25 purchasing function promised that any request received by 7 a.m. with the proper information would result in a purchase order being issued by 2 p.m. that day. At that time, a one-day turnaround was unheard of because every order simply went into the “to do” pile. The purchasing department also created a simple trigger to improve productivity: Purchase orders that were missing items on the checklist would be immediately returned to the requesting unit. The second part of the intervention came in recognizing that not every request could be supported in factory mode. In the existing system, neither the requesters nor the purchasing staff distinguished between a standard request and a novel one. Thus, when a request for a new product or service showed up, the agent would do his or her best to process it, typically requiring multiple emails with the requester, often over several days, to nail down all the relevant information. In many cases, when the agents couldn’t get the information they needed, they would make their best guess and then submit an incomplete or incorrect purchase order. This, too, created additional iteration, as the supplier, unsure of what was being requested, would call or email the agent. The purchasing process was thus living in the lower right-hand box of our matrix, attempting to accomplish ambiguous work in a serial fashion and thereby creating slow and expensive iteration. Creating an effective collaborative studio mode to handle the complex purchase orders required two changes in work design. First, the team created a clear trigger: If a request was nonstandard, then it was moved into a separate pile and not dealt with immediately. Second, each day at 2 p.m., the team would work together to process the more complex cases. By working collaboratively (in studio mode), they were able to resolve many of the more complex cases without additional intervention — somebody on the team might have seen a similar order before. Also, having a face-to-face meeting was far more efficient than the endless chain of email that it replaced. And, if additional information was needed, the team could schedule a phone call in the time window after 2 p.m., rather than send an email, again reducing the number of expensive iterations. The results of these two changes were significant. Creating a factory mode for the standard orders allowed the team to make good on its “in by 7, out by 2” promise almost immediately, generating an immense amount of goodwill with the requesters. Spending the afternoon in studio mode also sped the processing of the complex orders. The two changes created enough space that the team was able to use studio time to not only process the more complex requests but also work through the backlog of unresolved older orders. In the end, due to the efficiency improvements, the procurement team reduced its staff by the equivalent of two full-time staff members, while providing far faster and more reliable service. These process improvement insights were then applied to the company’s other U.S. sites and, as of this writing, RefineCo pays more than 90% of its invoices on time, resulting in a far happier collection of suppliers. Look for Best Principles Managers and consultants are often obsessed with the search for best practices — those activities that appear to separate leading organizations from the rest of the pack. The idea behind this search is that once identified, best practices can be adopted by other organizations, which will then experience similar gains in performance. While there is certainly some truth to this idea, the supporting evidence is decidedly mixed. Organizations frequently struggle to implement new tools and practices and rarely experience similar gains in performance. In many industries, the performance gap between the top and middle performers remains stubbornly difficult to close. A key reason for these failures is simply that organizations are complex configurations of people Organizations are complex configurations of people and technology, and a set of tools or practices that works well in one context might not be equally effective in a major competitor — even if that competitor is located just down the street. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 26 R E D E S I G N I N G W O R K : O P E R AT I O N S and technology, and a set of tools or practices that works well in one context might not be equally effective for a major competitor — even if that competitor is located just down the street. Best practices are “best” when they manifest an underlying behavior principle in a way that is well matched to the organization that uses them. Toyota’s famed Andon cord and the localized problem-solving it catalyzes work by capitalizing on the efficiency that comes from individual repetition and the innovation that comes with collaborative problemsolving. Conversely, agile development methods work by channeling the creativity of software engineers through frequent team meetings and customer interactions. More generally, organizations become more adaptable when they find defects and misalignments sooner. A dynamic approach to contingency, supported by triggers and checks, can open the path to creating practices that support increased agility in the work of your organization. Nelson P. Repenning is the School of Management Distinguished Professor of System Dynamics and Organization Studies at the MIT Sloan School of Management in Cambridge, Massachusetts, where he currently serves as the associate dean for leadership and special projects and the faculty director of MIT’s Leadership Center. Don Kieffer is a senior lecturer in operations management at the MIT Sloan School and a founder of ShiftGear Work Design, a consulting firm based in Cambridge. James Repenning is the managing partner at ShiftGear Work Design. Comment on this article at http://sloanreview.mit.edu/59234. REFERENCES 1. A quick trip to the web reveals multiple manifestations, including “agile principles,” “enterprise agile,” “agile organizations,” and a variety of suggestions, including the charge to “apply agile development to every aspect of business.” See, for example, S.D. Goldstein, “Apply Agile Development to Every Aspect of Business,” Mint, Dec. 4, 2016, http://www.livemint.com. 2. D. Leonard and R. Clough, “How GE Exorcised the Ghost of Jack Welch to Become a 124-Year-Old Startup,” Bloomberg, March 17, 2016, www.bloomberg.com. 3. See their manifesto here: http://agilemanifesto.org. 4. For a summary, see F.S. Glaiel, A. Moulton, and S.E. Madnick, “Agile Project Dynamics: A System Dynamics Investigation of Agile Software Development Methods,” Massachusetts Institute of Technology, Engineering Systems Division working paper, Oct. 2014, available at http://dspace.mit.edu. 5. See C.J. Stettina and J. Hörz, “Agile Portfolio Management: An Empirical Perspective on the Practice in Use,” International Journal of Project Management 33, no. 1 (January 2015): 140-152; J. Sutherland and J.J. Sutherland, “Scrum: The Art of Doing Twice the Work in Half the Time” (New York: Crown Business, 2014); and D. West and T. Grant, “Agile Development: Mainstream Adoption Has Changed Agility,” Forrester, Jan. 20, 2010, www.forrester.com. 6. See, for example, M.E. Moreira, “Being Agile: Your Roadmap to Successful Adoption of Agile” (New York: Apress, 2013). 7. D.K. Rigby, J. Sutherland, and H. Takeuchi, “Embracing Agile,” Harvard Business Review 94, no. 5 (May 2016): 40-50. 8. The classic descriptions of contingency theory can be found in T. Burns and G.M. Stalker, “The Management of Innovation,” rev. ed. (Oxford, U.K.: Oxford University Press, 1994) and in P.R. Lawrence and J.W. Lorsch, “Organization and Environment: Managing Differentiation and Integration,” rev. ed. (Boston: Harvard Business School Press, 1986). An updated summary can be found in several textbooks, including R.M. Burton, B. Eriksen, D.D. Håkonsson, and C.C. Snow “Organization Design: The Evolving State-of-the-Art” (New York: Springer Science+Business Media, 2006). 9. F.W. Taylor, “The Principles of Scientific Management” (New York and London: Harper & Brothers, 1911). 10. T. Brown, “Change by Design: How Design Thinking Transforms Organizations and Inspires Innovation” (New York: HarperBusiness, 2009). 11. J. Liker, M. Hoseus, and the Center for Quality People and Organizations, “Toyota Culture: The Heart and Soul of the Toyota Way” (New York: McGraw-Hill Education, 2008). 12. See, for example, N.R. Repenning and J.D. Sterman, “Capability Traps and Self-Confirming Attribution Errors in the Dynamics of Process Improvement,” Administrative Science Quarterly 47, no. 2 (June 2002): 265-295; and N. Leveson, “A Systems Approach to Risk Management Through Leading Safety Indicators,” Reliability Engineering and System Safety 136 (April 2015): 17-34. 13. K.T. Ulrich and S.D. Eppinger, “Product Design and Development,” 6th ed. (New York: McGraw-Hill Education, 2016). 14. Sutherland and Sutherland, “Scrum”; and Scrum Guides, www.scrumguides.org. 15. L.A. Perlow, “The Time Famine: Toward a Sociology of Work Time,” Administrative Science Quarterly 44, no. 1 (March 1999): 57-81. 16. See Sutherland and Sutherland, “Scrum”; and J. Kamensky, “Digging Out of the Digital Stone Age, ” Government Executive, March 9, 2017, www.govexec.com. i. N. Epley and J. Kruger, “When What You Type Isn’t What They Read: The Perseverance of Stereotypes and Expectancies Over E-Mail,” Journal of Experimental Social Psychology 41, no. 4 (July 2005): 414-422. ii. L. Argote and D. Epple, “Learning Curves in Manufacturing,” Science 247, no. 4945 (Feb. 23, 1990): 920-924. Reprint 59234. Copyright © Massachusetts Institute of Technology, 2018. All rights reserved. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 27 C O L L A B O R AT I N G W I T H I M P A C T : L E A D E R S H I P MICHAEL GLENWOOD GIBBS/THEISPOT.COM Improving the Rhythm of Your Collaboration Alternating between always-on connectivity and heads-down focus is essential for problem-solving. BY ETHAN BERNSTEIN, JESSE SHORE, AND DAVID LAZER C ount-offs at the beginning of musical performances, whether verbal (“One, two…”) or symbolic (with a baton or a snap), are a fixture of live collaboration for musicians. Conductors use them to establish tempo and feel, and to provide guidance on how to interpret the written rhythms — the patterns of sound and silence — that the ensemble is about to play. Similarly, in the workplace, leaders help set the beat for their organizations’ and teams’ collaborative efforts. For at least a century, they have done this largely by planning working-group meetings, huddles, one-on-ones, milestone reports, steering committee readouts, end-of-shift handoffs, and so on. Through 30-, 60-, and 90-minute calendar meetings scheduled weeks in advance to prevent SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 28 C O L L A B O R AT I N G W I T H I M P A C T : L E A D E R S H I P THE RESEARCH In one experiment, the authors randomly assigned 51 groups of 16 people into four different network structures and asked them to solve a complex whodunit task, all using collaborative technology but with varying levels of connectivity. In a second experiment, they randomly assigned 514 sets of three subjects to one of three levels of collaborative interaction (none, intermittent, or constant) and asked the group to solve the classic traveling salesperson problem, which is a complex optimization task. They also reviewed the literature on information sharing in social networks, collective intelligence, brainstorming, and group and team problem-solving. conflicts and at odd times to accommodate global team members, they have established the patterns of active interaction (“sound”) and individual work (“silence”) that form the rhythms of their employees’ collaboration. But such rhythms have gotten much more complex and less controlled in recent years. Organizations now have a treasure chest of digital tools for collaboration — Slack, Teams/Skype, Chatter, Yammer, Jive, Zoom, Webex, Klaxoon — that they didn’t have before. (The global collaboration software market was $8 billion in 2018 and is projected to double to $16 billion by 2025.1) Add to that email, texting, and messaging, along with the meetings that haven’t gone away, and the math is telling: Research shows that executives spend an average of nearly 23 hours per week in meetings (up from less than 10 hours 50 years ago),2 while McKinsey estimates the average knowledge worker spends 65% of the workday collaborating and communicating with others (including 28% of the day on email).3 So collaboration has gone omnichannel. You can see why orchestrating all of this has become such a challenge. Indeed, given how hyperconnected most people are now at work, one might question whether they even have a rhythm of collaboration, not because they lack sufficient interaction (sound) but because they lack any absence of it (silence). That observation prompted us, as researchers, to ask: Should organizations have a rhythm of collaboration that alternates on and off, or is more simply better, as people tend to assume? Our findings suggest that alternation is essential for work that involves problem-solving. As collaborative tools make interaction cheaper and more abundant, opportunities to think without interaction are becoming more expensive and scarce, yet they remain critical. In fact, our research shows that when people trade a rhythm of on-and-off collaboration for always-on connectivity, they coordinate and gather information more effectively, but they produce less innovative, less productive solutions. That’s troubling, given current trends in the workplace. By achieving more and more connectivity, humans are becoming a bit like passive nodes in a machine network: They are getting better at processing information but worse at making decisions from it. In other words, we’ve designed organizational communication to make it harder, not easier, for human beings to do what we’re being told we need to do in the next decade or two — that is, differentiate our capabilities from the growing capacities of big data, automation, and AI. It takes more leadership — not less, as the trend toward flatter organizations and teams might lead us to believe — to create an effective rhythm that alternates between rich interaction and quiet focus. Here, we explore what that means in practice for managers and draw on examples from organizations we’ve studied to illustrate how you can avoid common problems and establish an optimal collaborative rhythm for your team. Connectivity: What We Gain, What We Lose When we solve problems collaboratively — whether we’re making strategic decisions, fixing operational glitches, or generating ideas — we engage in two categories of actions: (1) gathering the facts we need to generate and develop various potential solutions, and (2) figuring out the best solutions. Academics are not strangers to the study of problem-solving. There is a large body of research about it, with contexts including recreational venues like adventure racing4 and escape rooms,5 simulated laboratory experiments, and real-world field research in the workplace. But most of the research has focused on individual rather than collective problemsolving.6 Even among studies of collaboration, few have looked into how much we want to have.7 So we headed to the laboratory to explore that question. In our first study,8 we randomly assigned individuals to 51 16-person organizations — some more connected by technology than others — and asked each organization to solve a complex problem: Divine the who, what, where, and when of an impending terrorist attack (akin to the famous Clue whodunit game but with higher hypothetical stakes). Each organization used a platform not unlike the collaborative tools used in workplaces today: Through their computers, individuals could search for information, share it with one another, and contribute theories about solutions while the platform tracked all behavior. We found that connectivity had different effects on the fact-finding and figuring stages of problem-solving. For finding facts, more connectivity SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 29 was better, without limitation. But figuring out what to do with those facts — actually creating the solutions — was undermined by too much connectedness. The same connections that helped individuals collaborate in their search for information also encouraged them to reach consensus on less-than-perfect solutions, making connectivity a true double-edged sword. Fact-finding and figuring are, we believe, representative of broader classes of activities. If we were to describe this trade-off more generically, it is the question of whether the task primarily requires coordination or imagination. If there are acute coordination needs (for instance, avoiding redundant effort by ensuring we don’t all look under the same pillow for the keys), then always-on connectivity is helpful. If imagination is more critical, then always-on connectivity can make it nearly impossible to manage the creativity of multiple minds, which requires a balance between allowing those minds to learn from one another and enhancing the capacity of each one to generate fresh ideas. Too little communication, and there’s no learning and no synergy. Too much communication, and all the minds end up in the same place, focusing on the same types of solutions. Breaking the Trade-Off Does that have to be the case? Do organizations and teams need to choose between being great at factfinding and being great at figuring? To further investigate, we returned to the laboratory, this time with the goal of directly asking whether deliberately choosing a rhythm of collaboration (that isn’t always on) could help.9 We asked a number of three-person groups to solve what’s called the traveling salesperson problem. Each person was given a map with the locations of 25 fictional cities that they needed to visit. Their task was to find the shortest trip to visit each city once and then return home to their starting point. For decades, academics have been using the traveling salesperson problem to study complex problem-solving, in part because the set of all possible solutions forms what is called a rugged solution landscape: If you were to visualize all options as paths up a mountain (where the altitude reached is the measure of success), getting from a good solution to a better one might require you to hike back down the mountain and climb a very different path. So myopic decision makers (as we all inevitably are) risk getting stuck at a low peak because they didn’t see the higher peak before they started climbing. This happens in the traveling salesperson problem because the choice of which city to visit next is constrained by the other choices made in one’s route. To find a better solution, one must often go back and reconfigure those decisions. In our version of the traveling salesperson problem, people attempted to solve it under one of three conditions. The members of one set of groups never interacted with one another, solving the problem in complete isolation; members of another set constantly interacted, as we do when equipped with always-on technologies; and members of the third set interacted intermittently. Consistent with our previous study and other research,10 we anticipated — and found — that the groups with no interaction were the most creative, coming up with the largest number of unique solutions, including some of the best and some of the worst in terms of total distance traveled to visit each city and return back home again. In short, when isolated, they produced a few fantastic solutions but, overall, a low average quality of solution due to so much variation. We also anticipated — and found — that the groups with constant interaction were the most consistent, producing a higher average quality of solution but finding the very best ones much less frequently. In other words, when always on, they produced less variable but more mediocre solutions. Too little communication, and there’s no learning and no synergy. Too much communication, and all the minds end up in the same place, focusing on the same types of solutions. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 30 C O L L A B O R AT I N G W I T H I M P A C T : L E A D E R S H I P Groups that interacted intermittently — with a true rhythm of collaboration — broke the tradeoff, capturing the best of both worlds rather than succumbing to the worst of either one. They preserved enough isolation to find the best solutions at least as frequently as the groups with no interaction, but also enough collaboration to maintain an equivalently high average quality of solution compared with the groups with constant interaction. Learning was a key factor: During periods of separation, people naturally struck out on their own and tried new and diverse approaches to the problem — but when they came together again, they could learn from these different solutions. Even if the new solutions people found on their own weren’t effective overall, they often included a useful idea or two that could be learned from and recombined with other solutions. In this sense, intermittent interaction created the conditions for collective intelligence, rather than relying on a few leading individuals to come up with the strongest ideas. Even people with the best solution at any given point in the experiment did better in an intermittent environment. They were exposed to new ideas from their peers that they could use to improve their already good solutions. And of course, people with worse solutions could adopt the best solution in the group as a new jumping-off point for their next period of solo solving. By contrast, people who interacted constantly had many opportunities to learn but fewer ideas to learn from, given how closely they hewed to group consensus. Those who never interacted generated more (and more diverse) ideas, but their isolation prevented learning from occurring. There are two key lessons for managers in those results. First, when it comes to solving complex problems, collaboration yields diminishing returns — beyond a certain point, the average quality of solutions does not improve from more interaction. Second, too much collaboration has its costs — you drive out the diversity of thought that is helpful for creating the best solutions.11 Finding the Right Rhythm at Work Clearly there’s value in having a rhythm of collaboration rather than always-on interaction. But how do you choose one and then put it into practice? What’s the equivalent of a musician’s count-off by the leader of an organization or team? Here are a few approaches that seem promising in light of our research. The light switch approach: Turn it off — in cycles. As with so many things, collaboration technology has simultaneously solved one problem (too little interaction) and created another (too much). Our research and that of others12 suggests that it’s important to find opportunities to unplug not just off-hours but also during work. Many of us eagerly anticipate the time we get to spend in the quiet car of the train, on an airplane with no Wi-Fi, or in a cabin that is just a bit too remote to be on the grid. Leaders can provide that kind of time in the workplace, too. While people are getting used to putting smartphones in a box on their way into a meeting (to focus on one form of collaboration versus another), more and more organizations are also creating coordinated unplugged times for heads-down work. Flicking the collaboration light switch is something that leaders are uniquely positioned to do, because several obstacles stand in the way of people voluntarily working alone. For one thing, the fear of being left out of the loop can keep them glued to their enterprise social media. Individuals don’t want to be — or appear to be — isolated. For another, knowing what their teammates are doing provides a sense of comfort and security, because people can adjust their own behavior to be in sync with the group. It’s risky to go off on their own to try something new that will probably not be successful right from the start. But even though it feels The fear of being left out of the loop can keep people glued to their enterprise social media. They don’t want to be — or appear to be — isolated. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 31 reassuring for individuals to be hyperconnected, it’s better for the organization if they periodically go off and think for themselves and generate diverse — if not quite mature — ideas. Thus, it becomes the leader’s job to create conditions that are good for the whole by enforcing intermittent interaction even when people wouldn’t choose it for themselves, without making it seem like a punishment (such as a time-out from childhood). In some companies, unplugging is enabled by physical spaces and norms that prohibit collaboration. Meditation rooms and meditation coaches, for example, are on the rise — not just at Apple, where Steve Jobs introduced the 30-minute daily meditation break, but also at companies as varied as Google, Nike, Pearson, and Nationwide. At Amazon, instead of jumping right into a collaborative review of bullet points on PowerPoint slides, meetings may start with people sitting silently while reading a memo, discussing the topic only after everyone is done reading. But it’s not enough to provide space and permission for quiet focus. Role modeling by leaders is key. In an age in which it is transparent to others when you are plugged in (messaging systems indicate whether you are online, how recently you were, and whether you’ve read a received message), leaders send clear signals with their own behavior. At the most recent Wharton People Analytics Conference, former CEO of Deloitte U.S. Cathy Engelbert said she realized how closely people watch leaders for cues when an employee leaving the company (someone she didn’t even know) said that she “didn’t want to be like Cathy Engelbert,” working and available to interact with colleagues “at all hours.” The employee had inferred this — correctly or incorrectly — from repeatedly seeing that Engelbert’s instant messaging status was online at night. Unless leaders themselves visibly unplug, meditation rooms and their ilk may become the latest equivalent of the dot-com foosball table, getting used by people who are the most likely to be laid off during the next downturn. Other companies are placing stricter limits on the time colleagues can spend interacting. At the Italian headquarters of one of the world’s top fashion houses, the office goes dark at 5:30 p.m., forcing an end to the workday. In part, the CEO tells us, that is out of respect to the families who await his employees’ arrival home. But it also signals an end to collaboration and a start to individual time, something cherished at a company that depends so heavily on creativity. While 5:30 p.m. may be an unrealistic cutoff in many settings, leaders can apply the same basic idea in more targeted ways, for a shorter period of time or even staggered across individuals or teams, as was the case with Boston Consulting Group’s Predictable Time Off initiative.13 The underlying principle here is not new. One of the most seminal academic studies of work time in the 1990s showed how a software engineering team could reduce their feelings of having a “time famine” and improve productivity by instituting a policy of mandated quiet time, when interruptions were prohibited.14 Today, that simply means having work time when all our collaboration tools are turned off, taking us back to the days when we naturally had an ebb and flow of collaboration — individual work time punctuated by scheduled meetings and calls. Agile approaches to teamwork incorporate some of this intermittent cycling, given that they are organized into short sprints during which groups of people focus on solving a particular problem. Harvard Business School professor Andy Wu and his coauthor Sourobh Ghosh have termed this iterative coordination.15 The challenge is that, as one executive at a large financial institution told us, “our sprints have gotten so compressed together that there is no downtime in between them.” Plus, just because a team is sprinting doesn’t mean others in the organization won’t interrupt individual members of the team with collaboration needs that have nothing to do with the sprint. Hackathons also involve intense collaboration for relatively short, predetermined periods of time. Because they are often organization-wide events — or at least everyone in the organization tends to know about them — they are somewhat more immune to interruption by colleagues, especially when they are sponsored by senior leaders (which provides implicit permission for out-of-office auto replies). But hackathons offer space and time for collaborative innovation — not for quiet, individual work. Leaders must find other ways of bringing that into employees’ day-to-day rhythm by literally or figuratively flicking off the lights at regular intervals. Executives have been counseled to be collaborative leaders and to set the example at the top that SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 32 C O L L A B O R AT I N G W I T H I M P A C T : L E A D E R S H I P they want to see in the rest of the organization.16 They have taken this message seriously, transparently devoting more and more of their days to in-person and online collaboration. By role modeling such ubiquitous use of collaboration technology, business leaders have helped define an era of alwayson collaboration. It is now time to role model a more sustainable, productive rhythm of collaboration. Even some of the tools’ creators are advocating this approach: Ryan Singer, one of the first four employees at Basecamp, a maker of project management software, has written a book (collaboratively online) based on 16+ years of watching companies struggle with project-based collaboration. In it, he writes that “there can be an odd kind of radio silence” during the first phase of effective project work, “because each person has their head down” getting oriented, finding the best approach, and engaging in exploration — doing what he calls legitimate work. He claims that it is “important for managers to respect this phase [because] asking for visible progress will only push it underground.”17 The Fitbit approach: Track it to hack it. It will not come as news to anyone that workplace collaboration tools do not just enable collaboration, they also track it. The result of all the time we spend collaborating online, and increasingly in person, is a stream of digital exhaust that defines what’s recently been termed relationship analytics. 18 (See also “Collaborate Smarter, Not Harder,” in this issue.) This goes beyond weekly reports on how much screen time we’ve had, instead capturing each individual’s precise rhythms of collaboration with others in the organization. For example, Microsoft now offers two tools that use email, calendar, contacts, and other Office 365 data to provide insights about collaboration: MyAnalytics (for individuals) reports on how responsive you are to collaborators’ emails (on average and with specific individuals), reminds you to book focus time “before meetings take over,” highlights the “impact of your afterhours emails” on others, and so on; and Workplace Analytics (for an organization) uses the same data, anonymized, to shed light on overall collaboration trends. Ambit, a spin-off of the team at the Stanford Research Institute that developed Siri’s voice algorithms, captures your voice profile and then, during times of active collaboration, can track in real time how well you and your collaborators take turns (total number of turns, average turn length, longest turn length) and how each of your voices will be perceived by others (a so-called tonal analysis that shows when each collaborator sounds fearful, angry, joyous, sad, analytical, confident, or tentative). In the not-so-distant future, we expect that similar tools will draw on large data sets and machine learning algorithms to seek to directly solve the challenges we highlighted above. Your device will remind you to make your collaboration more intermittent when your solutions seem to lack sufficient diversity and encourage you to come back together and learn from one another when enough diversity has been generated. Artificial intelligence may help us improve our collective intelligence by coaching us on how to regulate our collaboration. Although that lies in the future, the promise of these tracking tools is already evident. Just as our Fitbit encourages more physical activity by making our current activity levels visible, these tools affect our collaboration behaviors by making those visible. The design approach: Create enlightened collaboration tools. Both solutions above rely on us to change our own behavior, and that’s hard. If it were easy to regulate our rhythms of interaction, we wouldn’t be sleeping with our smartphones.19 But the same tools that permit us to become addicted to interaction can, if designed well, also help us make it intermittent rather than constant. Some of this has already happened naturally. Consider Slack, a tool that was initially designed on the premise that all communications would be visible to the entire organization, encouraging immediate responses and constant connectivity. Under tremendous pressure from its user base, Slack soon changed its stance and created private channels, which now account for a majority of the collaboration in most work spaces. It also created a status function that allows you to signal when you are offline for one of any number of reasons. Indeed, while we are not aware of any social enterprise software programs that initially offered a feature allowing users to indicate whether they are available or not, nearly all of them have such a feature now. These changes allow for more “off ” time and give tacit permission for more intermittent involvement. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 33 The world has asked technology companies to create tools that enable collaboration as much as possible — and that’s what they’ve done. How to enable intermittent collaboration is a different problem to solve. The next generation of these programs is trying to go a step further by improving the rhythms of collaboration in live meetings rather than replacing them. Matthieu Beucher, founder and CEO of Klaxoon, intentionally developed Klaxoon with this goal in mind, because meetings themselves can be sources of intermittent interaction. Here’s how it works: Meeting participants connect to Klaxoon with their own devices (cellphones, iPads, laptops) even if they are colocated. They then select an activity (brainstorm, poll, questions, decisions, and so on) that supports the group’s immediate task or objective. Depending on the activity they select, the tool sets a particular rhythm of collaboration. In some cases, information and ideas are visualized for all to see immediately; in others, data is stored so that the group can make decisions after a period of reflection or, at the very least, after everyone in the meeting has contributed their views. Beucher likens each meeting to a new song and says Klaxoon is designed “to provide different tools to improve collaboration for different parts of the song.” As Klaxoon has evolved, it has given users more room for intermittent interaction. For example, it now allows people to turn off the user-identification and time-stamp features so that they can collaborate on their own terms and avoid judgment, by peers or bosses, about when or how much they are or are not collaborating. The promise of the design approach to balancing separation and connectedness — of using technology to create constraints that permit, nudge, or enforce intermittent interaction — is to make creative and productive skunk works types of teams routine rather than rare self-organized phenomena. For this approach to come into its own, however, we need to know more than we do today. In general, the world has asked technology companies to create tools that enable collaboration as much as possible — and that’s what they’ve done. How to enable intermittent collaboration is a different problem to solve. The best ideas for doing so are most likely yet to come — perhaps after technology companies learn more about how the customers who buy and use their products create their own work-arounds to add intermittency to these tools. SOCIOLOGIST GEORG SIMMEL once wrote, “Usually, we only perceive as bound that which we have first isolated in some way. If things are to be joined they must first be separated. … Directly as well as symbolically, bodily as well as spiritually, we are continually separating our bonds and binding our separations.” Intermittent collaboration may be not only productive but also inherently human. And yet, to achieve it, we must overcome our equally human impulses to stay connected in a world increasingly marked by omnichannel collaboration. 20 Leaders can play a significant role in providing the policies, data, and tools to establish a productive rhythm of communication. It’s also a collective challenge. To return to our music analogy, leaders essentially do the conducting — but every team member affects how the collaborative rhythm is played. So culture becomes a critical reinforcing factor. Unless individuals feel safe to intermittently disconnect and see that behavior modeled and rewarded by the leaders around them, they’re more likely to stay too connected, no matter what their managers say they expect and what kinds of tools and opportunities they provide. Ethan Bernstein (@ethanbernstein) is the Edward W. Conard Associate Professor of Business Administration at Harvard Business School, where he studies the impact of increasingly transparent workplaces on employee behavior and performance. Jesse Shore (@jessecshore) is assistant professor of information systems at Boston University’s Questrom School of Business; he studies social SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 34 C O L L A B O R AT I N G W I T H I M P A C T : L E A D E R S H I P networks and collective intelligence. David Lazer (@davidlazer) is University Distinguished Professor of Political Science and Computer Sciences at Northeastern University and visiting scholar at the Institute for Quantitative Social Science at Harvard; his research focuses on computational social science, collective intelligence, and misinformation. Comment on this article at http://sloanreview.mit.edu/x/61102. REFERENCES 1. Grand View Research, Team Collaboration Software Market Analysis Report, 2018, www.grandviewresearch .com. 2. L.A. Perlow, C.N. Hadley, and E. Eun, “Stop the Meeting Madness,” Harvard Business Review 95, no. 4 (July-August 2017): 62-69. 3. M. Chui, J. Manyika, J. Bughin, et al., The Social Economy: Unlocking Value and Productivity Through Social Technologies (New York: McKinsey Global Institute, 2012), 46. 4. K. Sutcliffe and M. Barton, “Contextualized Engagement as Resilience-in-Action: A Study in Adventure Racing” (paper presented at the Academy of Management Annual Meeting, Chicago, Illinois, July 2018). Also see P. Ercolano, “‘Resilience-in-Action’ Is Key to Team Success, Whether in Backwoods or Business,” Johns Hopkins University, Aug. 8, 2017, https://hub.jhu.edu. 5. F. Englmaier, S. Grimm, D. Schindler, et al., “The Effect of Incentives in Non-Routine Analytical Team Tasks — Evidence From a Field Experiment,” working paper no. 6903, CESifo, Munich, Germany, Feb. 21, 2018. the Wisdom of Crowd Effect,” Proceedings of the National Academy of Sciences 108, no. 22 (2011): 90209025; and P.B. Paulus, V.L. Putman, K.L. Dugosh, et al., “Social and Cognitive Influences in Group Brainstorming: Predicting Production Gains and Losses,” European Review of Social Psychology 12, no. 1 (2002): 299-325. 11. K.J. Boudreau, N. Lacetera, and K.R. Lakhani, “Incentives and Problem Uncertainty in Innovation Contests: An Empirical Analysis,” Management Science 57, no. 5 (2011): 843-863; and L. Hong and S.E. Page, “Groups of Diverse Problem Solvers Can Outperform Groups of High-Ability Problem Solvers,” Proceedings of the National Academy of Sciences 101, no. 46 (2004): 16385-16389. 12. For instance, R. Cross and P. Gray, “Where Has the Time Gone? Addressing Collaboration Overload in a Networked Economy,” California Management Review 56, no. 1 (2013): 50-66; R. Cross, R. Rebele, and A. Grant, “Collaborative Overload,” Harvard Business Review 94, no. 1 (January-February 2016): 74-79; and R. Cross, S. Taylor, and D. Zehner, “Collaboration Without Burnout,” Harvard Business Review 96, no. 4 (July-August 2018): 134-137. For a different manifestation of the same issue, see T.L. Stanko and C.M. Beckman, “Watching You Watching Me: Boundary Control and Capturing Attention in the Context of Ubiquitous Technology Use,” Academy of Management Journal 58, no. 3 (2014): 712-738. 13. At BCG, each consultant was required to have one scheduled night off per week, and productivity improved. See L.A. Perlow and J.L. Porter, “Making Time Off Predictable — and Required,” Harvard Business Review 87, no. 10 (October 2009): 102-109. 6. It’s somewhat surprising that more research hasn’t been done on the social element of problem-solving, given that scholars are increasingly discrediting the notion of the solo genius. See, for instance, K. Clark, “Myth of the Genius Solitary Scientist Is Dangerous,” Nov. 20, 2017, https://theconversation.com. 14. L.A. Perlow, “The Time Famine: Toward a Sociology of Work Time,” Administrative Science Quarterly 44, no. 1 (1999): 57-81. 7. B. Uzzi, “Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness,” Administrative Science Quarterly 42, no. 1 (1997): 35-67; R.S. Burt, “Structural Holes and Good Ideas,” American Journal of Sociology 110, no. 2 (2004): 349-399; R. Cross and J.N. Cummings, “Tie and Network Correlates of Individual Performance in Knowledge-Intensive Work,” Academy of Management Journal 47, no. 6 (2004): 928-937; and D. Lazer and A. Friedman, “The Network Structure of Exploration and Exploitation,” Administrative Science Quarterly 52, no. 4 (2007): 667-694. 16. H. Ibarra and M. Hansen, “Are You a Collaborative Leader?” Harvard Business Review 89, nos. 7-8 (July-August 2011): 68-74. 8. J. Shore, E. Bernstein, and D. Lazer, “Facts and Figuring: An Experimental Investigation of Network Structure and Performance in Information and Solution Spaces,” Organization Science 26, no. 5 (2015): 1432-1446. 19. L.A. Perlow, Sleeping With Your Smartphone: How to Break the 24/7 Habit and Change the Way You Work (Boston: Harvard Business Review Press, 2012). 15. S. Ghosh and A. Wu, “Iterative Coordination in Organizational Search,” working paper, Harvard Business School, Cambridge, Massachusetts, January 2019. 17. R. Singer, “Hand Over Responsibility,” chap. 9 in Shape Up: Stop Running in Circles and Ship Work That Matters, accessed July 15, 2019, https://basecamp.com/ shapeup. 18. P. Leonardi and N. Contractor, “Better People Analytics,” Harvard Business Review 96, no. 6 (November-December 2018): 70-81. 9. E. Bernstein, J. Shore, and D. Lazer, “How Intermittent Breaks in Interaction Improve Collective Intelligence,” Proceedings of the National Academy of Sciences 115, no. 35 (2018): 8734-8739. 20. See, for instance, C. Newport, Deep Work: Rules for Focused Success in a Distracted World (London: Hachette, 2016); and N. Carr, The Shallows: What the Internet Is Doing to Our Brains (New York: W.W. Norton & Co., 2010). 10. W. Mason and D.J. Watts, “Collaborative Learning in Networks,” Proceedings of the National Academy of Sciences 109, no. 3 (2012): 764-769; J. Lorenz, H. Rauhut, F. Schweitzer, et al., “How Social Influence Can Undermine Reprint 61102. Copyright © Massachusetts Institute of Technology, 2019. All rights reserved. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 35 How To Lead a Self-Managing Team Teams that are basically left to run themselves can be highly efficient and productive. To be successful, though, such autonomous groups require a specific type of external leadership. By Vanessa Urch Druskat and Jane V. Wheeler T o get work done, many companies organize employees into self-managing teams that are basically left to run themselves with some guidance from an external leader. In fact, comprehensive surveys report that 79% of companies in the Fortune 1,000 and 81% of manufacturing organizations currently deploy such “empowered,” “self-directed” or “autonomous” teams.1 Because of their widespread use, much research has been devoted to understanding how best to set up self-managing teams to maximize their productivity and effectiveness. Interestingly, though, relatively little attention has been paid to the leaders who must oversee such working groups. At first, it seems contradictory: Why should a self-managing team require any leadership? After all, doesn’t the group manage itself? In actuality, though, self-managing teams require a specific kind of leadership. Even a team that is autonomous in terms of its activities and decision making must still continually receive direction from higher levels in the organization. And it also must report to that hierarchy through a person who is ultimately held accountable for the group’s performance. Many managers today are expected to fulfill the role of external leader, but most receive conflicting signals regarding how to go about it.2 Should they, for instance, be involved in their team’s decision-making process? If so, how should they participate without detracting from the group’s autonomy? To investigate such issues, we conducted a study of 300 self-managing teams at a large manufacturing plant of a Fortune 500 corporation. (See “About the Research.”) We investigated both average- and superior-performing external leaders at that site to determine the behaviors that separated one group from the other. Our research has shown that, contrary to common perception, the best external leaders were not necessarily the ones who had adopted a hands-off approach, nor were they simply focused on encouraging team members in various ways.3 Instead, the external leaders who had contributed most to their team’s success excelled at one skill: managing the boundary between the team and the larger organization. That process required specific behaviors that Vanessa Urch Druskat is a professor of organizational behavior at the Whittemore School of Business and Economics at the University of New Hampshire. Jane V. Wheeler is professor of management at Bowling Green State University’s College of Business Administration. They can be reached at vanessa.druskat@unh.edu and jvwheel@ cba.bgsu.edu. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 36 can be grouped into four basic functions: relating, scouting, persuading and empowering. (See “The Work of the External Leader,” p. 69.) External leaders who excelled at those capabilities were able to drive their teams to superior performance. Managing in No-Man’s Land As recently as the 1960s, self-managing teams were practically unheard of. Indeed, an early experiment by General Foods Corp. to deploy self-managing teams on its Gaines dog-food production line more than 30 years ago was something of a sensation. Even, the company’s own senior management expected the project to fail.4 Since then, self-managing teams have become an increasingly popular way for companies to get work done. Even so, the role of the people in charge of those groups has remained somewhat of a mystery. To be sure, leading a team that needs to manage itself is inherently tricky. The role is highly ambiguous by nature (and, on the face of it, oxymoronic). In general, self-managing teams tend to have well-defined job functions and are responsible for monitoring and managing their own performance. Instead of managers telling them what to do, these teams gather and synthesize information, make important decisions, and take collective responsibility for meeting their goals. What’s left for the external leader to do? As one of the external leaders in our study remarked, “Maybe we’re not needed, you know?” But the reality is that the buck stops at the external leaders. Specifically, companies hold them responsible for their team’s performance. If the quality or productivity of a team is substandard, its external leader is taken to task. As another team leader in our study noted, “The hardest part is that I’m also held accountable. If they make the wrong decision, it still comes back on me.” In essence, the job of external leader exists squarely in the middle of a managerial no-man’s land. Back in 1977, a field study published about that early experiment at General Foods revealed external leaders caught in the middle: Their teams criticized them for being too controlling, while their own managers complained that they were being too lax.5 Not long after, another research study looked at teams in other organizational settings and found that those three constituencies — team members, external leaders and their upper- About the Research We conducted a study of external leaders at a Fortune 500 durable-consumergoods manufacturing plant in the Midwest. The facility employs more than 3,000 people and is the world’s largest manufacturer of its particular product. We chose this site because it offered a rich research sample: The plant had transitioned to self-managing work teams almost five years prior to our data collection, and there were 300 such teams reporting up through 66 external leaders. This large pool of external leaders in one location provided a wide range of individuals in that role and allowed us to control for organizational context. Our method was to select samples of high-performing and average external leaders and to discover through interviews how their behaviors, strategies and attitudes differed. We used three criteria for selecting our key participants: nominations from team members, nominations from managers and objective performance data for the leaders’ teams. We then conducted intensive three-hour interviews with each of the 19 individu- als selected, regarding critical incidents they recalled. The interviews were conducted blind to the “superior” or “average” status of the leaders. A content analysis of those interviews allowed us to develop an exhaustive list of actions and behaviors that were noted consistently by superior leaders but not by average ones. Initially, our exhaustive list contained approximately 30 behaviors that we hypothesized made a difference between the “superior” and “average” performers. Iterative readings of the interview transcripts helped us to winnow down that list to the 11 distinct behaviors reported in this article. Two expert coders, who were blind to the “superior” and average” status of the leaders, coded all transcripts for the presence of the 11 behaviors and determined the reliability of the codes. The mean reliability was 92%. Statistical analyses also revealed that 10 of the behaviors were demonstrated significantly more often by the superior-performing leaders. (The exception was “diagnosing member behavior,” which was demonstrated often by both average and superior performers.) To help interpret the findings and to develop our model of how these 11 behaviors emerge as the process of effective external leadership, we also spoke with a total of 90 team members: 52 in focus groups and 38 in one-on-one interviews. We supplemented that information with interviews of the 10 managers to whom the external leaders reported, and we also collected information via questionnaires from the broader group of senior managers and directors at the plant. Furthermore, we later examined the applicability of our findings by interviewing external leaders at other organizations and in different industries, including those for product-development groups in a design organization and executive-level teams at a bank, a healthcare organization and a manufacturing company. This subsequent work suggests that our results have broader applicability for any leader of an empowered team, regardless of the group’s level or task. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 37 External leaders find themselves caught in the middle: Their teams criticize them for being too controlling, while their own managers complain they are being too lax. level managers — all had different ideas about the role.6 Unfortunately, that lack of consensus generally remains today. Prior to and since our study, we have found confusion about the external-leader role in other companies and at all organizational levels. Consider the senior executive of a large Midwestern bank who desperately wanted to empower his team of high-level bank executives but was unsure how to go about that. When he attended meetings, he felt team members relied too heavily on his opinion, but when he stopped going to meetings, he felt stuck in an information black hole. Even with his many years of experience, he really did not know how to manage that group. The problem is that a self-managing team requires leadership of a very different sort. Researchers agree that the external-leader role is more complex than the traditional manager role.7 This is true partly because the typical external leader is in charge of several self-managing teams at any one time. (In our study, they were responsible for as many as eight.) More importantly, the external leader absolutely must avoid any heavy-handed attempts at managing. Case studies have shown that external leaders who struggle with their role usually end up exerting too much control, which then undermines the self-managing team’s ability to get work done.8 Because of that and other issues, various researchers have labeled external leaders as the most common impediment to the success of selfmanaging teams.9 Confusion about the role of the external leader might be tolerable if that function weren’t so crucial, but a variety of studies have shown that the success of a self-managing team greatly depends on its external leader.10 A newly created group, for example, often needs both effective coaching and a champion who can represent its decisions to other executives in the organization. Teams also depend on external leaders for help in acquiring resources. That’s why it’s common to see an underperforming team successfully turn itself around with only the change of its external leader — or to see a once-great team suffer after its external leader departs. Four Functions, 11 Behaviors Although the essence of a self-managing team is autonomy, the quality of its link to the organization is pivotal to success. Some external leaders perform that role much better than others, with the superior ones tending to excel at relating, scouting, persuading and empowering. Each function requires specific behaviors, of which there are a total of 11. In the exhibit “The Work of the External Leader,” the relating activities are shown at the beginning of the process because, without the formation of those relationships, external leaders will find scouting difficult. Scouting, in turn, equips external leaders with the information they need to persuade. And various aspects of scouting and persuading help pave the way for greater empowerment of a team, which then contributes to the group’s ultimate effectiveness. The well-known key to making self-managing teams work is to delegate considerable authority to the group, granting it tremendous flexibility in making its own decisions.11 What is less well-known are the kinds of leadership activities and behaviors that are needed to build the foundation for team empowerment. Relating, scouting and persuading are those critical building blocks. Relating External leaders must continually move back and forth between the team and the broader organization to build relationships. Success in this area requires three behaviors: being socially and politically aware, building team trust and caring for team members. Being socially and politically aware. During our research study, we heard stories of both team triumphs and irritations. In one case, an external leader recounted the time he allowed one of his teams a freedom that was inconsistent with the company’s informal policies. Later, he was taken aback by the backlash he experienced from his peers in the organization. Recalls the leader, “This person sends a note to my manager, to his manager and to my colleagues … saying, ‘Since when did this policy change?’” The leader was also vehemently attacked by another team leader for his “ineffective supervision.” What happened? Clearly, the incident suggests a lack of political awareness: The leader simply didn’t anticipate the impact of his decision on others. Nor did he perceive the need to build a broader consensus. Incidentally, in our study the performance of that leader had been categorized as average. By contrast, the superior external leaders had consistently demonstrated an understanding of the broader organization, including the individual concerns and decision-making criteria of impor- SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 38 Average leaders tend to see team members’ personal problems as impediments, whereas superior leaders view them as opportunities to build relationships. tant constituencies, such as the engineering and human resources groups. As one superior leader bluntly put it, “I’ve got a good rapport with all those groups, and most things I ask for get done. … You can get moved to the top of the list for things in a hurry if you’re not [upsetting] people.” Building team trust. Superior external leaders also consistently recognized the value of building good relationships with their teams, even to the point of achieving insider status. Given that the leaders had little time to spend with any one team, such acceptance was far from automatic. In fact, one leader in our study was impeached by her team members, who did not trust that she had their best interests in mind. Contrast that with the experience of another leader who, when his team complained of problems with new equipment, said, “Whatever it costs, if you guys aren’t happy with it, we’ll get another system in here … because you’re the ones who are gonna have to work with it.” The team was incredulous. One member pointed out that the new system had cost $23,000 to install. Caring for team members. In our study, average leaders were more likely to see the personal problems of the team members as impediments to getting work done, whereas superior leaders more often recognized them as opportunities to build relationships. One superior leader described an incident in which one of his employees had a problem with her disability leave. The leader took it upon himself to call the insurance department in the health center to clear the dispute, which had been an ongoing source of worry for the worker. “It was … instant relief for that person,” recalls the leader. “It was not a big problem, but it was big to her.” Scouting To scout effectively, external leaders must demonstrate three behaviors: seeking information from managers, peers and specialists; diagnosing member behavior; and investigating problems systematically. Seeking information from managers, peers and specialists. Superior leaders appeared to be significantly more likely to seek information from others in the organization, whether as advice or simply in response to technical questions from the team. Sometimes the leaders used that information to influence team decision making, especially when they wanted to persuade people to take into account broader organizational considerations. For example, when a team wanted to hire a colleague who had filled in for absent members in the past, the group’s external leader wisely decided to step in. The leader wanted his team members to be able to make their own choice, but he also sensed that their lack of knowledge and respect for a new hiring policy at the company could create problems with management. “I could tell this was going to be a sticky situation,” he recalls, because the new policy was more formal and favored candidates with greater seniority. So the leader talked to HR as well as other external leaders as to how they filled their jobs. He then informed his boss about the situation and invited him to the team’s next meeting. At the meeting, the team members were able to persuade the external leader’s boss to delay implementing the new policy so that they could hire the person they wanted. By seeking and relaying all the pertinent information, the leader was able to enable his team to make its own decision (without disrupting the organization), which helped boost the team’s morale. Not surprisingly, external leaders who routinely sought information from the broader organization were able to advocate more effectively for their teams. They were able to help their teams gain valuable political awareness and build social capital for them — all of which would often pay off in less obvious, but no less important, ways. The team members themselves realized the importance of having an external leader who could get information faster than they could, had access to data they didn’t have and could easily make contact with upper management. On the other hand, when team members felt that an external leader was not keeping them adequately informed, they tended to develop an “us against them” attitude. As one such member put it, “[They] don’t want to give up information; it’s their power.” Diagnosing member behavior. Because external leaders are typically responsible for the performance of several teams, they are rarely on the scene when something critical occurs within a specific group. As a result, they must often gain insight after the fact. To do so, they frequently need to add to their incomplete information by analyzing and making sense of verbal and nonverbal cues from team members. One leader described an SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 39 The Work of the External Leader External leaders must perform 11 behaviors that can be grouped into four categories: relating, scouting, persuading and empowering. The behaviors are distinct but mutually reinforcing, and they require the external leader to continually cross the border between the team and the broader organization. In this model of external leadership, social and political awareness of the broader organization provides access to the individuals and groups that can help the leader best meet the team’s needs; strong relationships allow the leader access to information in the team and the organization, which aids the leader in making sense of the needs of both parties; good information enables the leader to encourage or persuade the team to behave in ways that facilitate the organization’s effectiveness; and the sense of control afforded by that influence allows the leader to empower the team more fully, resulting in greater team effectiveness. OrganizationFocused Behavior Relating Scouting Persuading 1 Being socially and politically aware 4 Seeking information from managers, peers and specialists 7 Obtaining external support Empowering Team Effectiveness Organization/Team Boundary TeamFocused Behavior 2 Building team trust 3 Caring for team members 5 Diagnosing member behavior 6 Investigating problems systematically episode when his team had done months of benchmarking research to suggest a policy change to the directors of the organization. But the directors quickly shot down the proposal and instead told the team members that their time might be better spent improving their quality and productivity. When the leader heard the news he had mixed emotions. He was upset because he knew how much time his team had spent on the proposal, yet he also knew he had to support the directors’ decision because, after all, he was part of management. So he went to the team members and started to give them a pep talk but quickly stopped himself. “I could tell they thought I was full of youknow-what. You could see it in their eyes,” he recalls. So, he instead offered people a sympathetic ear and acknowledged their well-intentioned efforts. Interestingly, both the superior and the average leaders in our study talked about the need to read their team members accurately. In fact, it was the leadership capability they most commonly identified as important. Investigating problems systematically. When superior leaders got wind of a potential problem, they were significantly more likely to deploy an inquisitive and systematic approach to investigate the matter. They would begin by asking the team members myriad questions to collect data and identify the issues, after which they might visit an external constituent to collect additional information. “You’ve got to be down on the floor,” one 8 Influencing the team 9 Delegating authority 10 Exercising flexibility regarding team decisions 11 Coaching superior leader asserted. “When the line is down, I’m over there within a minute.” By collecting firsthand information from the team members, superior leaders were able to fully understand their group’s perspective, enabling them to make informed recommendations that would be acceptable to their teams as well as to external constituents. In contrast, average leaders were more likely to attempt problem solving with less data or input from the team members. Persuading With respect to external leadership, effective persuasion requires two behaviors: obtaining external support and influencing the team. Obtaining external support. Teams often need support from the broader organization, and superior leaders are able to perform this advocacy role more effectively. One such leader remembered a time when his team members were having equipment problems. After talking with them, he used their ideas to sketch a new piece of machinery and came in during other shifts to gain additional input from other teams. He was then able to obtain management’s authorization to build the new piece of equipment. In our study, team members agreed that leaders were most helpful when they were able to get the attention of important external constituents. Average leaders seemed to seek such external support less frequently, and when they did they were less successful in obtaining it. One average SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 40 Superior leaders develop strong relationships inside the team and across the organization; average leaders tend to relate well to one of those parties but not to both. leader remembered an incident when he pleaded with the scheduling department to make a change for one of his teams. But because he had not built relationships with that department and had not expended the effort to obtain the information necessary to support his case, his request was denied. Influencing the team. Effective external leaders were also adept at swaying their teams to decisions that best met the needs of the organization. Keep in mind that prior to doing so, these superior leaders had already established trust with their teams, had systematically investigated the problem at hand and had used their external contacts to obtain all necessary information. One superior leader, for example, collected statistics from the accounting department to persuade his struggling team to think of ways to improve its productivity. Using that data, the leader impressed upon his team how much the company lost in profits every minute a manufacturing line was down. “This is the money that we didn’t make,” the leader told the team. “If somebody is cutting the line off just to eat a sandwich, it is costing everybody.” Three months later, the group’s performance had improved markedly, and whenever the team was about to fall behind schedule, people would work a little longer to stay on track. Interestingly, those team members were going the extra distance without their leader having to ask (let alone demand) that they do so. Empowering External leaders of self-managing teams can empower those teams by demonstrating three behaviors: delegating authority, exercising flexibility regarding team decisions and coaching. Delegating authority. External leaders typically have great discretion over the amount and type of authority that they delegate. In general, the superior leaders tended to empower their teams with more responsibility. For example, when one team was told by management that it had to move its assembly line, its leader left it up to the team to work out the details. “They very much had ownership,” remembers the leader. “They knew what we needed to do and took it from there. This needed to be their baby.” However, average leaders tended to be more fearful about delegating authority, and they would often make decisions for the team and solve its problems covertly. It is impor- tant to note that the average leaders’ reluctance to delegate authority was not because they were leading the poorer-performing teams. In fact, many of the superior leaders in our study had been transferred to a problem team and had worked with it until they felt comfortable delegating authority. Eventually, as the team gained more and more ownership, its performance improved. Exercising flexibility regarding team decisions. Sometimes a team proposes something that is outlandish or that appears to reflect poorly on its leader. In such situations, average leaders were likely to express their reservations, whereas superior leaders frequently replied with comments such as, “It’s not what I think; it’s what you think.” One of the teams in our study, for example, wanted to present its quarterly performance results at the department meeting by performing a skit. At first, the team’s leader was a little hesitant because nothing like that had been done before and the meeting would be attended by all of the managers in the organization. “I thought, ‘Oh, we could look so foolish on this,’ ” she recalls. But she gave the team her approval and, as it turned out, the skit went over well, which boosted the team’s sense of cohesion and identity. Of course, teams don’t always make good decisions, and a major responsibility of external leaders is to prevent serious mistakes. But even when a team has to be reined in, superior leaders did so only after considering the proposal as open-mindedly as possible. Coaching. Coaching involves a number of activities, including working one-on-one with employees, giving feedback to the team and demonstrating certain behaviors (such as effective meeting facilitation) for others to model. Past research has found that superior leaders tend to be active in educating and coaching others,12 and our study confirmed that. In particular, superior leaders focused on strengthening a team’s confidence, its ability to manage itself and its contributions from individual members. A common coaching behavior was for leaders to work with people who had just taken on roles of greater responsibility. For example, after a meeting in which people argued for 20 minutes about coffee, one superior leader helped the team member in charge to run more efficient meetings, first by developing an agenda and then by keeping the group focused on that agenda. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 41 Self-Management in the Long Run For external leaders to relate, scout, persuade and empower, they must frequently — but quietly — cross the boundary between the team and the broader organization. The idea that a leader must manage this boundary is certainly not new; past research has linked it to the effectiveness of traditionally managed teams,13 and several studies of empowered teams have proposed that it is the central focus of the external leader’s role.14 Our own research supports those findings. Specifically, the superior leaders in our study were able to develop strong relationships both inside the team and across the organization. In contrast, average performers tended to relate well to the team or to those in the broader organization, but not to both. The four functions — relating, scouting, persuading and empowering — are important for the leader of any group but particularly so for those in charge of self-managing teams. (After all, if a team has not been empowered, how can it manage itself?) And the same process would be useful for leaders of geographically dispersed teams, given their similar challenge of having to rely on imperfect information to influence behavior from a remote location. An important thing to remember about team autonomy is that self-management is not an either-or condition. Instead, it’s a continuum, and external leaders should also be constantly guiding and developing their teams so that they become increasingly independent. In fact, the ultimate goal of the external leader should be the delegation of all 11 of the behaviors described. For example, external leaders should be developing their teams’ relationships with relevant individuals and other groups in the broader organization, eventually relinquishing that primary activity to the teams themselves. And when teams do become less dependent on their external leaders, the leaders will theoretically be freer to assume the responsibility for an even larger number of groups. The teams in our study had made the transition to self-management five years before our research commenced. At that time, the superior participants were already performing the 11 essential behaviors of external leadership. We would not be surprised to learn today that those individuals have since moved their teams further along the continuum of increased autonomy and independence. In fact, we would be greatly surprised if that were not the case. REFERENCES 1. E.E. Lawler III, “High Involvement Management” (San Francisco: Jossey-Bass, 1986); E.E. Lawler III, “Strategies for High Performance Organizations” (San Francisco: Jossey-Bass, 1998); and G. Taninecz, T.H. Lee, A.V. Feigenbaum, B. Nagle and P. Ward, “Best Practices and Performances: Manufacturers Tackling Leading-Edge Initiatives Generally Reap the Best Results,” Industry Week, Dec. 1, 1997, 28-43. 2. M.M. Beyerlein, D.A. Johnson and S.T. Beyerlein, “Introduction,” in M.M. Beyerlein, D.A. Johnson and S.T. Beyerlein, eds., “Advances in Interdisciplinary Studies of Work Teams,” vol. 3 (Greenwich, Connecticut: JAI Press, 1996), ix-xv; C.C. Manz and H.P. Sims Jr., “Searching for the ‘Unleader’: Organizational Member Views on Leading SelfManaged Groups,” Human Relations 37 (1984): 409-424; and C.C. Manz and H.P. Sims Jr., “Leading Workers To Lead Themselves: The External Leadership of Self-Managed Work Teams,” Administrative Science Quarterly 32 (1987): 106-128. 3. See C.C. Manz, “Leading Workers To Lead Themselves.” 4. R.E. Walton, “The Topeka Work System: Optimistic Visions, Pessimistic Hypotheses and Reality,” in R. Zager and M.P. Rosow, eds., “The Innovative Organization: Productivity Programs in Action” (Elmsford, New York: Pergamon Press, 1982): 260-287. 5. R.E. Walton, “Work Innovations at Topeka: After Six Years,” Journal of Applied Behavioral Science 13 (1977): 422-433; and R.E. Walton, “The Topeka Work System.” 6. C.C. Manz, “Searching for the ‘Unleader.’ ” 7. M.M. Beyerlein, “Introduction”; and J.R. Hackman, “The Psychology of Self-Management in Organizations,” in M.S. Pallack and R.O. Perloff, eds., “Psychology and Work: Productivity, Change and Employment” (Washington, D.C.: American Psychological Association, 1986), 89-136. 8. See, for example, E.E. Lawler III, “High Involvement Management”; R.E. Walton, “Work Innovations at Topeka”; and R.E. Walton, “The Topeka Work System.” 9. R.I. Beekun, “Assessing the Effectiveness of Sociotechnical Interventions: Antidote or Fad?” Human Relations 47 (1989): 877-897; and R.E. Walton and L.A. Schlesinger, “Do Supervisors Thrive in Participative Work Systems?” Organizational Dynamics 8 (winter 1979): 24-39. 10. S.G. Cohen, L. Chang and G.E. Ledford Jr., “A Hierarchical Construct of Self-Management Leadership and Its Relationship to Quality of Work Life and Perceived Work Group Effectiveness,” Personnel Psychology 50, no. 2 (summer 1997): 275-308; B.L. Kirkman and B. Rosen, “A Model of Work Team Empowerment,” in R.W. Woodman and W.A. Pasmore, eds., “Research in Organizational Change and Development,” vol. 10 (Greenwich, Connecticut: JAI Press, 1997), 131-167; and B.L. Kirkman and B. Rosen, “Beyond Self-Management: Antecedents and Consequences of Team Empowerment,” Academy of Management Journal 42 (1999): 58-74. 11. S.G. Cohen, G.E. Ledford Jr. and G.M. Spreitzer, “A Predictive Model of Self-Managing Work Team Effectiveness,” Human Relations 49 (1996): 643-676; B.L. Kirkman, “Beyond Self-Management”; and R.E. Walton, “The Topeka Work System.” 12. C.C. Manz, “Leading Workers To Lead Themselves”; R. Wageman, “Critical Success Factors for Creating Superb Self-Managing Teams,” Organizational Dynamics 26 (summer 1997): 49-61; and R. Wageman, “How Leaders Foster Self-Managing Team Effectiveness: Design Choices Versus Hands-On Coaching,” Organization Science 12, no. 5 (2001): 559-577. 13. D.G. Ancona and D.F. Caldwell, “Bridging the Boundary: External Activity and Performance in Organizational Teams,” Administrative Science Quarterly 37, no. 4 (December 1992): 634-665. 14. See S.G. Cohen, “A Hierarchical Construct of Self-Management Leadership”; J.L. Cordery and T.D. Wall, “Work Design and Supervisory Practice: A Model,” Human Relations 38, no. 5 (1985): 425-441; and J.R. Hackman, “Leading Teams: Setting the Stage for Great Performances” (Boston: Harvard Business School Press, 2002). Reprint 45410. For ordering information, see page 1. Copyright Massachusetts Institute of Technology, 2004. All rights reserved. SPECIAL COLLECTION • HOW WINNING TEAMS WORK • MIT SLOAN MANAGEMENT REVIEW 42 PDFs • Reprints • Permission to Copy • Back Issues Articles published in MIT Sloan Management Review are copyrighted by the Massachusetts Institute of Technology unless otherwise specified. MIT Sloan Management Review articles, permissions, and back issues can be purchased on our website, shop.sloanreview.mit.edu, or you may order through our Business Service Center (9 a.m. - 5 p.m. ET) at the phone number listed below. Reproducing or distributing one or more MIT Sloan Management Review articles requires written permission. To request permission, use our website shop.sloanreview.mit.edu/store/faq, email smr-help@mit.edu, or call 617-253-7170.