STRATEGIC DEVELOPMENT

OF HIGH PERFORMANCE WORK TEAMS

 

By

Kimberly E. Denton, Industrial & Manufacturing Engineer

 

 


Global competition and the drive for world class status presents increasingly complex situations for many businesses.  Many companies have come to rely on work teams to address productivity and performance issues. When an effective work team is strategically developed, it can bring quality decision-making skills and lasting results to any organization.  When work teams lack essential training and management support, they are costly and often ineffective.

This paper will briefly explore the work team development process and how to optimize and measure work team performance.  An in-depth analysis of case studies illustrates “real life” problems with team–based solutions. An effective work team is a culmination of skills, knowledge and opinions. When team development is fostered, it exudes a synergistic quality that creates a desirable resource in today’s competitive markets.

 

Defining Characteristics

 

A work team can be best defined as a small group of individuals with complementary skills who are committed to a common purpose, a set of performance goals, and an approach for which they hold themselves mutually accountable (Katzenbach and Smith, 1993). Other definitions suggest that teams form to achieve greater organizational flexibility as a response to rapid growth and change (Certo, 1993).  Formal definitions aside, work teams have surfaced in many forms; the key concept are shared goal attainment through effective actions.

A high performance team possesses defining characteristics. The 4C’s are essential to any team; Cohesion, Commitment, Coordination, and Communication.

§         Cohesion is the degree of attraction to team members, the group and its goals (DeCenzo and Robbins, 1998).  Therefore, team selection should consist of a medley of diverse yet complementary skills.   All members should be competent in their particular area of expertise. Cohesion is the glue that binds the team.  Members of the organization become attracted to team environments as they see the team develop and succeed.

 

§         Commitment is required.  All team members must not only believe in the purpose of the team but must be dedicated to the cause.  Commitment should also extend to align with organizational goals and vision.

 

 

Text Box: The 4C’s of Teams
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


§         Coordination is needed to ensure that teams are cost effective.  Often, companies find that meetings consume greater than 30% time commitment from participants.  This is not only expensive but jeopardizes day-to-day operations.

 

§         Communication skills must be strong.  Equal participation is essential.  A team must devise methods and practices to enhance communication.

 

Work Team Essentials

 

There are key essential elements for work teams to succeed.

 

§         Support from the top: Management styles have shifted from traditional top down methods to decentralized self-empowered teams.  However, if these teams are to succeed, management must bless the project or task, invest in building team skills, and give teams the time needed to develop and perform. Management interference in the team decision making process can be detrimental.  Management needs to identify their role at the start of each project.

 

§         Define team objectives and individual roles: No team should meet without a clear objective or purpose. Management may define goals for the team.  However,  the team needs to establish their own vision for the project. This objective may be refined over time and individual roles should emerge as action items are assigned.

 

§         Team Training: Team training and structured problem solving training for all members must be provided.  Look to outside resources if the skill set is not in-house. A consistent approach to problem solving assures success.  The depth and level of detailed training may vary and is directly correlated with the complexity of the project. Companies have seen improved results with as little as 4-16 hours of training.  The team training curriculum should include the following:

Effective Meetings

Decision Making Methods

Structured Problem Solving

Problem Solving Tools

 

§         Establish key metrics to monitor results: Determine up front what defines process improvement results and how they will be measured. Collect data and footprint existing processes and measure team costs vs. improvement savings in addition to typical performance measures. Justification of expenses and results will open the door for more teams.

 

§         Determine self-evaluation criteria: The team must continually evaluate their efforts as a team and as individuals.  Strict use of action item lists and due dates or periodic scorecard of goal attainment will keep the team on track and will identify individuals or areas that fall short of team expectations. A simple D/+ exercise at the end of each meeting identifies what’s working and targets for change.

 

Work Team Tools

 

Team training pays off only if it’s applied. As a last activity in team training perform an applied exercise using problem definition, brainstorming or cause and effect analysis.  This reinforces the training and gives the team a jumpstart on their specific project.  The following details the team tools that should be determined and implemented to bring structure and effectiveness to the team.

 

Effective Meetings: Agree to set rules for the team early in the process.  A consistent meeting time should be set with no telephone calls or pagers disrupting the proceeding.  Practice effective meetings with an agenda, timely minutes and action items.   Rotate the roles of facilitator, note taking and time keeping to ensure equal participation.  The following is an example of team rules adopted by a continuous improvement team.

 

Text Box: ABC Company
Continuous Improvement Team
Team Members:

Team Purpose:

Team Goals:

Performance Measures:

Team Rules:
1.	Our team requires the input of all members to be effective.  Equal participation and responsibility is expected.
2.	We agree to the practice of effective meetings. All meetings start and end on time. Meetings will have agendas, action items and minutes distributed within 48 hours.
3.	Interruptions to meetings are the exception.  No pagers, phone calls, etc.
4.	Open discussion is critical. Stick to business, no finger pointing or personal attacks.
5.	Discussions are confidential. The minutes define public information.
6.	Team decisions will be fact based and the result of a structured problem solving process.
7.	Our team will have fun at every possible opportunity.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Decision Making Methods: Determine and use decision-making techniques to achieve commitment vs. compliance. Team development, decision-making methods and processes are based on an understanding of decision-making behavior.  Descriptive decision making models accept the role of heuristics and bias in the decision making process and are highly applicable with respect to teams (Wickens, Gordon and Liu, 1998).

One method is consensus. Consensus is a process by which all team members agree to support a decision.  The entire team should participate in the evaluation and selection of alternatives following informed discussion and deliberation. Team consensus as a decision-making process offers several advantages. Consensus fosters commitment; in that, all team members accept the decision and none oppose (Certo, 1993).  You also get “buy in” because it’s a decision the each individual helped to make.

Majority rule is an alternative decision making process by which voting occurs on several presented decisions.  The decision that receives the majority of votes is implemented.  The entire team participates in the evaluation and selection of alternatives.  Alternatives are generally approved when 51% of the team selects an option.  Majority rule as a decision making process also offers definite advantages.  Decisions can be made quickly and with little team training. However, one obvious disadvantage is that adequate time is not given to the evaluation of impending decisions. (Yeatts and Hyten, 1998). A second disadvantage is that only a portion of the team supports the proposition.  This may impede the implementation process and ultimately the success of the project.

Some additional decision making methods to consider include anonymous voting and ranking techniques.  The nominal group technique eliminates group interaction in the idea generating process.  Members note ideas anonymously.  The ideas are listed and ranked by the team.  The nominal group technique ensures equal participation (Robbins and DeCenzo, 1998).

The Delphi technique is similar to nominal group technique in that voting occurs.  Team members express their opinions by completing a series of questionnaires.  Members receive feedback from previous responses.  By process of elimination, the team reaches consensus (Brannick, Salas, and Prince, 1997).

Paired comparison and criteria rating techniques offer still more options.  When using paired comparison the team reviews a matrix of paired options.  By show of hands, the votes are noted and totaled.  Criteria rating techniques are similar.  It differs in that members are asked to weight their response.  Again, the alternatives are scored and the tally reveals the choice selection (Kelly, 1994). 

There are many options available with regard to decision-making methods.  Each team needs to experiment with alternatives and select the one that works best for the team.

 

Structured Problem Solving Technique:  The team should adopt a structured problem solving method and agree to only fact-based decision making.

One problem solving techniques is the rational choice method.  The rational choice method is a premeditated approach with clearly defined decision making steps that are used to identify the best procedures for problem solving.  The rational choice method has been associated with varying academic disciplines (Yeatts and Hyten, 1998).  Whether 5, 6, or 7 steps to solve problems, it is usually agreed that the method contains at least the following steps:

1.        Problem Definition

2.        Determine Root Cause(s)

3.        Generate, Weigh and Select Alternative(s)

4.        Implement

5.        Evaluate

 

Selecting a structured problem solving method ensures consistent approach that can be applied to both simple and complex issues.

 

Documentation Tools: Documentation tools improve the visibility of project objectives and assist in problem diagnosis through implementation. The team toolbox should also include:

§         Brainstorming techniques for idea generation

§         Cause and effect analysis (fishbone diagramming) for problem diagnosis and root cause determination 

§         Force field diagramming for solution generation

§         Criteria selection and weighted voting techniques to guide solution selection

§         Flow charts to ensure documentation of current and improved processes

§         Critical path diagrams and timelines to keep the team on track

 

Stages of Team Development

 

        With a clear understanding of desirable team characteristics, key team essentials, decision making and problem solving methods, the steps that follow outline the strategic development process for high performance teams. 

A work team goes through various stages of development.  It is suggested that there are at least four defined stages of team development:

 

Stages of Team Development

  1. Forming – Uncertainty about purpose, structures and roles
  2. Storming-Intragroup conflict
  3. Norming- Cohesiveness develops

4.     Performing – Fully functional, active decision making (Robbins & DeCenzo, 1998)

 

In the first stage of team development, mutual trust must be achieved.  Members assess each other to determine individual skills and personality traits (Cianni and Wnuck, 1997).  The mutual objective and goals for the team are also determined. 

The second stage involves developing strong communication skills.  Frank communication leads to the resolution of group conflict.  At this stage, the team selects the specific group decision-making methods and processes they will follow. 

At the third stage, solidarity among members seems a natural and evolutionary process that precedes the development of acceptance and communication skills.  Team members experience satisfaction and team commitment grows. 

In the forth stage, the team is fully functional and in control.  The team strives now for optimality and maximization of effectiveness, which is characterized by the flexibility of members and the informal relationships the team had developed (Certo, 1993). 

Researchers often refer to a fifth and final stage of development when temporary teams are in place.  This team would prepare and ultimately disband when the team objectives have been met (Robbins and DeCenzo, 1998).  Knowing when a team should disband can become a real issue.  Teams become comfortable with the structure, routine and impressive results.  This is why it is critical to measure performance.  When a team stops performing or the improvements are ready to go into maintenance mode, it’s time to disband.

Another alternative is to transfer the team talents to another project or move key players to different teams. This allows the successful team experience to proliferate throughout the organization.

 

Roles of Work Teams

 

        Work teams have taken on various roles in today’s modern organizations.  As the complexity of the decision making task increases, so does the empowerment of the team.  Self-managed teams accomplish short-term objectives such as those achieved by a task force or quality circle.  A cross-functional team addresses issues that affect more than one functional group within an organization. Design teams may encompass concurrent engineering activities.  A steering committee may drive continuous improvement or address issues related to aggregate planning.  Teams come in all shapes and sizes.  The following illustrate some “real life” problems using team-based solutions that reveal impressive results.

 

Case Study I: Team Building Results in Measurable Improvements Company Wide

 

Problem:  The current management staff from its parent company recently purchased the manufacturing operations for high technology products.  While financially successful as a division, the company needed to dramatically change in order to grow as an independent organization.  Problems ranged from high corporate and manufacturing operating costs to long lead times and underutilized facilities.  The breadth of products and overall corporate culture discouraged cooperation between departments and perpetuated a sense of  "us vs. them.”  Groups were marginally effective when working on common problems.

 

Approach:  Working as a team, company management and CMS developed an integrated strategy to train employees in the skills needed to succeed in a competitive marketplace and apply these skills to real operating problems.  Approximately 120 employees participated in a 32 hour training program that included effective team building, problem solving, effective meetings, basic statistical process control and an overview of ISO 9000.  As part of this program, cross-functional teams worked together to solve increasingly complex problems.  After completion of the training phase, teams were formed to identify major opportunities and used their new skills to improve company performance.  CMS facilitators worked with each team throughout the process.

 

Results:  The five top executives operated as a team to reduce corporate overhead in this $25 million company by more than $400,000.  A team dedicated to shortening lead times of a low volume product reduced assembly time by 50%, also saving $83,000 in production costs.  Streamlining the order entry process saved more than 1,000 man-hours per year.  The facility utilization team developed a new production area layout, which reduced space requirements by 30%, saving $325,000 per year in lease costs.

 

Case Study II: Self-empowered Team Improves Operating Efficiency through Waste Reduction

 

Problem: A food manufacturer was experiencing increasing price competition in the marketplace.  The workforce was poorly motivated due to an environment in which they would “check their brains at the door.”  There was little process documentation and training was primarily by word of mouth from operator to operator.

 

Approach: Six cross-functional teams were established to address key cost areas within the organization.  The teams focused on reducing scrap and waste, reducing line changeover times and improving product quality.  The teams began by learning the six-step problem solving process.  They began documenting the existing production process, first with flow charts and then written work instructions.  As areas of opportunity were identified, the problem solving process was used and solutions implemented.  The revised process was incorporated into the documentation and the team moved to the next opportunity.  The documentation relied heavily on detailed photographs showing the proper method for performing specific tasks, changeover and adjustment points in addition to visual product quality standards.  The photographs were incorporated directly in the documentation, from which they were imported into flow charts and work instructions.  As each process was improved and/or documented, the operators not directly involved with the teams were trained.

 

Results: Year over year costs due to scrap and waste was reduced by more than $550,000.  This was partially offset by increased labor costs to hold the team meetings on an overtime basis and materials purchased to enhance the process.  These costs amounted to approximately $300,000, resulting in a net bottom line improvement of $250,000.

        Today, the workforce continues to work as teams.  The maintenance department that required ten individuals now operates with three, with former maintenance personnel filling key positions on the line as technicians.  Changeover time was reduced by roughly 50%.  Finally, variability in product quality has been reduced significantly.  All of these improvements were realized by the people on the line understanding that what they do greatly impacts the process and quality of the product.

 

Case Study III: Quality Management System Implementation

 

Problem:  A manufacturer of welded seam steel tubing was receiving increased automotive business.  The Big 3 automakers are requiring their vendors to be QS-9000 compliant to continue to supply them.  The company had effective practices in place to ensure that their customers received quality products but they were not documented in a formal system and few records existed that demonstrated the effectiveness of their practices.  Internal scrap exceeded 10% of total production.  The UAW represented the workforce in the plant and their wholehearted support was crucial to developing a compliant system.

 

Approach:            CMS became an integral part of the company’s Quality Management System implementation teams. We provided guidance and support to the Steering Team charged with writing the policies and procedures and the shop floor teams writing the supporting work instructions.  Cross-functional teams with management and union representatives were established to develop work instructions and visual quality standards.  Because so many of the quality defects were visual in nature, photographs were taken and incorporated in the documentation, where appropriate.  As all of the company’s team members had full time jobs in addition to their QS-9000 responsibilities, CMS was responsible for keeping the program on track and ensuring that the system developed was compliant with the requirements of the quality system standard.  CMS coached team members until the company’s internal audit capability was in place. 

 

Results: The company was awarded dual certification to QS-9000 and ISO 9002 on their first attempt.  No major noncompliance was observed.  Areas for future improvement were identified and are being addressed.  A side benefit of the Quality Management System implementation was that during the course of the program, internal scrap was cut in half and on-time delivery improved significantly.  These and improved customer satisfaction are the best demonstration of the system’s effectiveness.  During the system implementation, the company was also awarded Ford Q1 recognition.

 

Case Study IV: Continuous Improvement and the Mobile Team

 

Problem: A manufacturer of electronic components was experiencing increasing volumes of overdue orders.  Initial analysis of various functional departments showed less than 60% machine utilization.  To add additional variables to the problem the process involved multiple firing processes, unreliable raw materials and frequent systems problems.  The management “group” was under enormous pressure to increase throughput and accomplished this only by micro-managing all facets of production.  An “every man for himself” attitude existed as each area in the organization did what was necessary to get product through their area.  So wrapped up in day-to-day fire fighting, the group never had time to determine root cause of overdues.

 

Approach: CMS hosted a four-hour off-site workshop session where the focus was on structured problem solving with a review of work team tools for this management team of five. As an exercise, the team used cause and effect analysis to diagnose causes of overdue orders.  Weighted voting was used to prioritize areas for improvement.  The session was so successful that the team requested a second off-site session to look at possible solutions.  The result of the second session was a lean process improvement project. The newly named Continuous Improvement Team (CIT) passed this project to key members of the team and continued to identify areas for improvement and mini-projects to reduce overdue orders.

 

Results:  The CIT team continues to meet “in-house” to address issues now related to continuous improvement.  They now proactively manage swings in the order cycle and anticipate and prepare for influx in product orders.  They continue to identify mini-projects and delegate these to specific project teams. The CIT group moves from project to project, monitoring results.

 The lean process improvement project headed by a key CIT member championed a team responsible for a 50% reduction to setup time resulting in increased machine utilization and capacity.  Layout improvements further reduced waste and increased operator efficiency.  Identification of new equipment paid for itself in six months, while virtually eliminating this particular downtime cause.

 

Common Team Obstacles and Solutions

 

The preceding examples demonstrate both temporary and permanent teams.  Many of the teams still meet regularly to monitor team performance measures and to identify and resolve new issues.

Even the best of teams can fall into a rut. Inter-group conflict, competition and diversity are human elements that can affect the performance of a team. When results start to slack off or no new progress is being made, it’s time for the group to step back and assess the value-added contributions of the team.

Some key pitfalls to watch for are rehashing old information, finger pointing, tardiness and absenteeism. These are signs that the team is in trouble or maybe the project has just reached the end of its life cycle.   Beware of apathetic concurrence.  If the team arrives at decisions too easily, without thorough discussion and evaluation, they may be agreeing just to “get on with it.”  This type of complacency is another signal for self-evaluation.

Competition between teams may also develop causing team members to lose sight of initial objectives. Members may become reluctant to participate if you are perceived as the 2nd place team.

How do you “jumpstart” a non-productive team?  As mentioned previously, if the team decides that it has gone as far as it can, perhaps it is time to disband. 

If the group feels that they’ve reached a roadblock, there are a few tactics you can try to revive team energy.  Review initial objectives, project scopes are dynamic by nature and sometimes teams drift off course.  Pull out documentation from initial idea generation and solution development.  Some very good alternatives may not have made the first cut, but may now be viable.

Try a change in scenery.  An off-site session gets members away from daily responsibilities that may be clouding the thought process.  Bring the fun back into meetings.  Comics,  candy,  the joke of the day, all provide levity and set the mood at the start of the meeting.

 Reward the team for previous accomplishments.  Although monetary rewards are never frowned upon, also try lunch on the boss, leaving early on Friday, or have the boss stop by to praise the team himself.

 

Building Effective Teams

 

Many organizations have achieved success using work teams. The difference in the level of achievement can be directly related to the training and development process. Work teams excel when teams have management support, training, sufficient time, adequate information and a structured problem solving process that meets the teams needs.  The effective work team can be a powerful tool used to respond to rapid change and global competition. Foster strategic development of work teams and yield high performance and employee satisfaction.   

 

 

 

 

 

 

 

Biographical Sketch

 

Kimberly Denton is an Industrial and Manufacturing Engineer with Creative Manufacturing Solutions(CMS), an engineering-based consulting firm located in Rochester, New York.  CMS specializes in innovative solutions for manufacturing, healthcare and service organizations.  Denton has spent much of her career in implementing contemporary manufacturing techniques in industrial settings.  Working with Fortune 100 companies to small businesses, Denton has successfully used the team-based approach with continuous improvement teams, setup time reduction, material handling projects and lean manufacturing. She received her B.S.I.M.E. from Rochester Institute of Technology (RIT).

 

References

 

Brannick, Michael T., Salas, Eduardo, and Prince Carolyn, (1997).  Term Performance Assessment and Measurement, Theories, Methods and Applications.  Mahwah, NJ:  Lawrence Erlbaum Associates, Inc. Publishers

Certo, Samuel C. (1994).  Modern Management, Diversity, Quality, Ethics and the Global Environment.  Heedham Heights, MA:  Allyn and Bacon, A Division of Simon & Schuter, Inc.

Cianni, Mary and Wnuck, Donna (1997).  “Individual Growth and Team Enhancement:  Moving Toward a New Model of Career Development”, New York, NY:  Management Executive, Vol. 11, No.1

Katzenbach, Jon R. and Smith, Douglas K., (1993).  “The Discipline of Teams”.  Boston MA:  Harvard Business Review, March-April Edition

Kelly, Keith P. (1994).  Team Decision-Making Techniques, A Practical Guide To Successful Team Outcomes.  Irvine, CA:  Richard Chang Associates, Inc., Publications Division

Robbins, Stephen P. and David DeCenzo (1998).  Fundamentals of Management, Essentials Concepts and Applications.  Upper Saddle River, NJ:  Prentice Hall

Wickens, Chris, Gordon, Sallie and Liu, Yili, (1998).  An Introduction to Human Factors Engineering.  New York, NY:  Addison, Wesley, Longman, Inc.

Yeatts, Dale E. and Hyten, Cloyd, (1998).  High Performance Self-Managed Work Teams, A Comparison of Theory to Practice.  Thousand Oaks, CA:  Sage Publications, Inc.