Careers without Borders

1. Teams - your least-managed resource… Building and managing effective teams Careers without Borders 8th International Organizations Career Development Roundtable Jens Riedel Victoria Dimitrakopoulos Erik A. Slingerland Karel Baert Berlin, 1 – 2 December 2011

2. We have seen dramatically increasing demands on the management teams of our corporate clients in the past years Managing in times of turmoil … … demands more from an executive team • Management teams will face increasing internal and external pressures • The team needs to be able to function well under high stress, and stay together through any tensions • The team members need to respect each other and believe they are all on the same side • Everybody in the team needs to understand its larger purpose and be clear about its goals • The team members must be self-driving, feel fullest ownership for getting things done whether or not directly their formal responsibility Dow Jones Industrial Average Eurostoxx 50 "Germany's Federal Statistical Office has announced that the economy is now in recession, with third-quarter data even worse than expected …" "More than 80,000 jobs cut in just five days –Global recession tightens grip on every business sector"

3. Similarly, the need for effective performance of public institutions, international organizations and CSOs has also increased All organizations mentioned face shortcomings in funding, and their leadership teams need to increase their efficiency to achieve “more with less”, and become even better at deploying resources decisively for greatest social impact Funding Even greater scarcity of resources implies increased need for a nurturing environment and sense of belonging, incl. an effective and rewarding team environment, to ensure continued motivation Incentives As countries and private corporations turn their attention inwards, these organizations need to raise even more public awareness of the effects of the crisis on poorer nations, and the continuing challenges of poverty, climate change and health Awareness The ever growing demand for transparency and accountability entails significant organizational, process and focus change for these institutions and their leadership teams. The need for (and monitoring of) efficiency and effectiveness in results achievement and risk containment becomes greatest in times of crisis. For management teams at all levels, coordination and collaboration becomes increasingly key and duplication of efforts (often found in the past) has to be eliminated Accountability • The effectiveness of teams is as critical as individual competence. Irrespective of the structures of these organizations, ranging from centralized and hierarchical to highly decentralized (and thus relying strongly on shared values), a healthy and effective team environment has become even more important in the current economic crisis

4. So what types of teams are we talking about? Management Teams Staff Teams Project Teams • CEOs and their direct reports • Tend to have longer life than project teams • Effort in ensuring that they work well is intensive • Interdependence of expertise as well as strategic alignment is critical • Needs to provide the necessary leadership and impulses to the organization at global & country level • Staff and their manager (e.g. HR, Finance) • Tend to have longer life than project teams • Often enable smooth functioning of a business • Tend to be geographically dispersed, and their collaboration is critical • Typically consists of a cross-section of managers and their staff • Tend to work together on an ad-hoc basis (e.g. disaster relief) and towards deadlines • Need to become effective quickly, achieve their objectives and dissolve themselves

5. There are many common patterns underlying poor team performance… some examples: "We cannot agree on anything except that we need to re-discuss issues again and again." "If an idea was not invented here, it cannot be the right one." • The “Overly Tribal”, where • The team comes from an “inbred” background and shared history, lacking diversity in perspective or interest in it • Common patterns: missed opportunities, resistance to change, bad integration of new members "Everyone thinks the problem is too big to be fixed and things are out of their hands." • The “Victim of Events”, where • The team lacks the resources to resolve conflicts or "bounce back" after a major negative event • Common patterns: failure to act, blaming others instead of moving forward • The “Debating Society”, where • The team lacks the single-minded ability to prioritize needs and decisions • Common patterns: missed deadlines, never getting things done, too many compromises

6. Understanding your team’s core issues means having clarity on several issues How do I break old patterns of unproductive behavior in this team? How do I get the tensions surfaced constructively, and resolved? How do I get the team aligned in the same direction? How do I stop bad behaviors taking over during this very stressful period? How do I show this group that they are not working together effectively? Do I have the right people with the right team skills “on the bus”?

7. The degree to which a team understands the need to optimize resources and time and drives efficiently for results Focus channels the team’s energy, on achieving its objectives with minimum time, effort, and cost Degree to which team has, and uses, the right combination of skills and inputs Focus The degree to which everyone on the team understands its larger purpose, and focuses their actions and those of the team in line with that objective Perspective is necessary to maintain competitive advantage. Balance and openness establish a safety net of checks and balances, institutionalize innovation, and ensure broader alignment 1 Per- spec- tive 3 Degree to which team holds itself together under severe internal or external stress and remains effective under those conditions 2 Drive Degree to which team seeks out and uses diverse points of view and learning from each other as well as outside itself Drive ensures the team remains motivated to sustain its efforts The degree to which a team is ambitious, takes the initiative and maintains long-term momentum at a high level “Snapshot view” “Ad hoc” or dynamic - how to analyze a team? EZI’s model of Team Dimensions Low Medium

8. “Snapshot view” At a glance: ‘strong’ and ‘weak’ for each dimension • Lack of agreement with, or understanding of, the strategy and how to achieve it • Open disagreement or passive resistance EZI’s model of Team Dimensions • Clarity and commitment to strategy, objectives and team deliverables • Visible support once a decision has been made • Narrow range of experiences and perspectives • Diversity hindered by over-powering individuals or self-censors • Waste of time & effort, too much complexity • Lack of accountability; failure to deliver • Diversity in perspectives, skills and styles • Differences recognised, expressed and leveraged • Calculated trade-offs to optimise resources • Clear targets, effective monitoring • Effective management processes, eg team meetings, decision-making processes • Lack of trust, respect and willingness to belong • Conflict avoidance or rapid escalation and attribution of blame • Internally focused, closed to ideas; uses outside perspectives to validate, rather than to innovate • Reluctance to communicate beyond immediate team • Trust, respect and support sustains group under pressure • Constructive conflict and open feedback • Connected inside and outside the company • Open to and adapts to new ideas and perspectives • Passive, least-effort mentality • Discouraged and de-motivated • Productive & action-oriented over a long period • Energised by working together; equally sharing the workload Low Moderate High

9. “Ad hoc” or dynamic - how to analyze a team? “Dynamic view” Norming Performing Storming Forming “What shall we do?” “How shall we do it?” “We believe we can do it” “We are doing it!” • Uncertainty • Dependant on the leader • Attempt to discover group code of conduct • Dissent • Test out leadership • Polarization of opinion, resistance to control, emotional resistance to tasks • Cohesion • Mutually supportive • Conflicts are patched up, determined to achieve tasks, open exchange of views, sense of cooperation • High energy • Roles are functional and flexible, safe expression of differing opinions, trust • Solutions to problems emerge Characteristics • Is the team really aligned around its vision; are objectives clear? • Is the team composition right and the allocation of roles and responsibilities appropriate? • How can the team ensure debate is constructive and team member resilience & energy are maintained? • Is the team connected to external thinking? • Is there sufficient diversity of experience and style on the team? • Is the team operating as efficiently as it could? • Is the team thinking about its future composition? • How can it embed effective practices for the future? Key Questions Source: Tuckman’s model of Team Development (1965) 9

10. Norming Is the team operating as efficiently as it could? How can it embed effective practices for the future? How can the team ensure debate is constructive, and issues surfaced and resolved? Storming How can the team ensure that energy and momentum are maintained? Combining the “snap shot” and “dynamic” views: Relative importance of team dimensions during a team’s life cycle Is the team really aligned around it’s vision and are the objectives clear? Forming Set-up: Is the team composition right (experience, competence) and the allocation of roles and responsibilities appropriate? Is the team leveraging its internal diversity ? Performing Is the team connected to external thinking? Source: Tuckman’s model of Team Development (1965) Low Moderate High

11. What is needed to ensure team effectiveness? Levers for creating team effectiveness • Strategy • Purpose, direction and goals • Roles and responsibilities of each team member • Guiding principles • Basic beliefs the team holds about how to work and how to behave • Includes values and norms • Processes • How people work together and how work gets done • Includes delineation of local/global • Structure • Reporting relationships • Clarity on where decision making power resides • People • Right people in the right roles • Clarity on behaviours required and expectations • Metrics & Rewards • Clarity on performance measures and consistent application of them

12. Appendix: An Introduction to Egon Zehnder International (EZI) Size, Reach, Scope • Among the largest privately held global executive search firms – 64 offices in 38 countries • Core practice areas: Executive Search, CEO Succession, Board Consulting, Leadership Strategy Services (Management Appraisal, Team Effectiveness Review & Talent Development) and Strategic Restructuring • Sectorpractice groups: Government & Not-For-Profit, Financial Services, Services, Life Sciences & Healthcare, Hi Tech, Industrial and Consumer • Functional practice groups: CFO, CIO, CRO and HR Professional Staff • 385 consulting, multinational professionals • All have post-graduate degrees, typically MBAs • New consultants average 10-15 years prior business experience in line management, finance or consulting prior to joining our firm • 305 researchers and 820 support staff worldwide Structure and History • The Firm has been fully owned by its Partners since its foundation 47 years ago - we enjoy a long history of growth and financial strength • As a single global partnership with equal participation of all partners, we have only one profit center and no individual office or commission-driven P&Ls; this leads to an absence of economic and procedural barriers between offices or consultants and fosters global cooperation 12

13. Appendix: An Introduction to Egon Zehnder International (EZI) - Our Core Services Executive Search Management Appraisal Attracting leaders;anticipating tomorrow‘s needs Benchmarking top people against"best-in-class" Turning the boardinto a strategicasset Developing &retaining yourbest people Board Consulting Leadership Development Team Effectiveness Reviews Unleashing team potential to maximize impact 13