In your company, does anyone truly work alone? The answer 99% of the time is no. However, performance reviews tend to be focused on individual outcomes without the context of the team dynamic. Yes, individual aspects of a role are important, but measuring team performance is just as important in assessing someone’s effectiveness.
The Global Human Capital Trends report from Deloitte mentions that 65% of work is cross-functional and team-based. More than half of executives stated that team-based work has provided a significant performance improvement, and the ideas that come from teams have a 156% great appeal to customers.
This begs the question, what does a high-performing team look like? Outside the office, we have a good idea of what it takes to build a top team. Soccer, basketball, and other sports have different dynamics that make teams superior. The mix of talent, coaching, and culture all play a role. In the business environment, finding the right balance is more complex.
Just as you can’t simply put a bunch of all-stars together and expect great results, team composition in the office is just as difficult. Focusing on individual skill sets can adversely affect the team. In addition to their experience, abilities, and personality characteristics, you must consider their approach to working with team members.
One of the fundamental aspects of team performance is psychological safety. Made popular by Google, psychological safety is the top indicator of team effectiveness. “The presence of psychological safety, which breeds trust and respect, is critical for teams to innovate and effectively navigate conflict. This enables them to maximize their potential and drive better outcomes together than they would perform alone, particularly when team composition offers complementary points of view.”
The Deloitte study found that just over a quarter of companies “awarded performance rewards based on ‘achievement of measurable team metrics.’” To help increase this percentage, Deloitte suggests the following strategies to activate team performance.
Address Culture
Moving from individual incentivization to team-based requires an organizational culture that embraces teamwork. Shifting away from the idea of self above team will take clarity, transparency, and accountability to engender buy-in from everyone.
Be Contextual
Different departments and teams within the department have other goals and expectations. One-size-fits-all performance goals won’t work. Measurement needs to be based on the team’s responsibilities and composition. Be aware of biases that may exist and account for diversity.
Gain Alignment
In setting goals, ensure all stakeholders are aligned with the team expectations and how their individual goals ladder up to the team goals. Supporting individual personal development goals is still important to keep employees engaged while building team capabilities.
Monitor and Adjust
Team performance is an ongoing process, and open communication is essential. Setting up check-ins and providing feedback helps teams create a dialogue to share what’s working and what isn’t. Leadership can support mentoring and coaching opportunities as well.
Celebrate
Team performance measures can be used to recognize success and share their approach with the company publicly. Bonuses can also be tied to team achievements. Sharing success stories reinforces the culture of team performance.
According to Deloitte, team performance delivers value to:
- The organization
- Internal and external stakeholders
- The team
- Individuals
Companies can use assessments, customer feedback requests, and surveys to determine their team performance, including diversity and psychological safety. And by building a team performance culture, organizations can become more agile to meet ever-changing needs by focusing on business outcomes through a broader lens.
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