Early in my career, I developed an outsourcing consulting practice for Coopers & Lybrand, which later merged with another firm to become PwC. The practice grew quickly, as clients discovered the strategic advantages that outsourcing could offer.
Over time, however, I noticed a pattern. While managers adapted to new operational realities, few invested sufficiently in onboarding contractors and building integrated employee-contractor teams. As a result, their groups met basic business goals but failed to innovate and achieve optimal performance.
Similarly, companies today are adopting matrix organizational structures to achieve key strategic objectives. Pulled from different parts of the company—and often including contractors—these cross-functional “flash teams” need help developing a common purpose, language and operating structure. When leaders neglect those needs, their teams produce predictably mediocre results.
In today’s ever-changing competitive environment, companies need teams to operate at the highest level to ensure organizational success. That makes fostering an ecosystem for optimal team performance Job No. 1 for every leader.
Teams in Flux
Consider a few statistics that illuminate the challenge.
More than 40 percent of the U.S. workforce is employed in contingent roles, according to the General Accounting Office. The agency defines contingent roles as contractors, temps and on-call and part-time employees. At the same time, the U.S. Bureau of Labor Statistics reports that employee tenures are shrinking, with the median tenure currently at only 4.2 years on a job. (That number is even lower for millennial employees.)
With more roles being filled by contractors and employees moving in and out, teams are in constant flux. Is it possible to create cohesive teams in this environment? And, if so, can optimal team performance persist over time?
At SageRiver Consulting, we believe the answer is a resounding “yes,” but teambuilding can’t be left to chance while leaders focus on other tasks. Effective teams are characterized by high levels of trust, commitment, accountability, open dialogue, and results-focused recognition.* No group of employees—let alone of contractors and employees—will develop those traits without sustained effort.
Steps to Success
That is why leaders must focus tirelessly on nurturing a healthy team ecosystem. Here are five steps you can take to build a cohesive, motivated and high-performing team:
Step 1: Engage your team in developing your vision, mission, values and charter.
Commitment comes from understanding your purpose and uniting with others to achieve a worthwhile goal. Begin by defining your vision, mission and values and codifying those in your team charter. This document will also outline your operating principles and define “mission success.” Once the initial work is done, revisit the discussion regularly and bring your mission and values to life with storytelling and story listening. Through this process, you will engage new team members and reaffirm your shared commitment.
Step 2: Invest in individual and team assessments.
At SageRiver, we employ research-based diagnostic tools to support team performance and individual development. The assessments help diagnose challenges and create a common language for problem-solving and cooperation. Armed with these insights, teams can move beyond misunderstandings and labels and find more effective ways of collaborating.
Step 3: Recruit for attitude and aptitude in all roles.
Smart companies know that hiring for culture fit and talent beats hiring for skills alone. But do you select and orient your contractors in the same way? If key functions are filled by contractors, they’re an important part of your team ecosystem. Make sure they support your culture and values, rather than undermine them.
Step 4: Embrace open dialogue and mutual accountability.
Many teams struggle with honest feedback and mutual accountability because the discussions feel too emotionally charged. You may need to invest in training to help team members overcome their fears and build new skills. Ultimately, your goal is to shift the focus from blaming and shaming to mutually supporting team performance and individual growth.
Step 5: Empower peers and reward results.
In effective teams, members cheer for each other and recognize each other’s achievements. To build mutual accountability and commitment, empower team members to reward each other for their contributions to team goals. Ask them to give specific feedback about how and why a peer excelled and to offer that recognition in public.
Legacies That Endure
Although it takes an investment of time, money and energy to foster a healthy team ecosystem, the rewards are enormous. High-performing teams create a culture of their own that persists even after individual members (or leaders) leave. As Peter Drucker famously said, “Culture eats strategy for breakfast.” Creating an optimal team culture may be the most enduring legacy you leave your organization—and perhaps the most valuable one as well.
*Traits based on the research and writings of Patrick Lencioni, author of “The Five Dysfunctions of a Team,” and Adrian Gostick and Chester Elton, authors of “The Orange Revolution: How One Great Team Can Transform an Entire Organization.”