Article Self Directed Teams

Building a Self-Directed Work Team

- Richard S. Wellins
Todays participatory work cultures are moving power down through organizations. Many of them empower self-directed work teams with the responsibility for managing themselves and their work. Five issues are key to building successful S Ts.

Todays organizations face unprecedented challenges. Fierce competition glo!alization deregulation technological change and shorter product life cycles can create ne" opportunities for them or economic disasters. To sur#i#e companies "ill ha#e to focus on total $uality speed to mar%et and cost containment& mastering only one or t"o of these three %ey areas "ill not !e enough. 'n addition the #alues and attitudes of todays "or%force ha#e changed. Todays "or%ers demand greater participation fle(i!ility and autonomy& they "ant opportunities to "or% "ith their heads as "ell as their hands. The organizations that ha#e positioned themsel#es for success are those that focus on empo"ering their "or%forces. )usiness leaders ha#e come to realize al!eit slo"ly that inno#ations to reduce defects "ont come solely from the minds of a fe" *super leaders+ !ut "ill !e the products of cultures that foster continuous impro#ement small incremental changes made !y e#ery "or%er e#ery day. ,ne successful strategy for creating an empo"ered "or% culture is the use of self-directed teams. SDTs are small groups of employees "ho ha#e day-today responsi!ility for managing themsel#es and their "or%. -em!ers of SDTs typically handle .o! assignments plan and schedule "or% ma%e productrelated decisions and ta%e action on pro!lems SDTs re$uire minimal direct super#ision. They differ in design from $uality circles and cross-functional tas% groups in that SDTs are formal permanent organizational structures. SDTs operate "ith fe"er layers of management than traditional organizational structures do. They re$uire team mem!ers to learn multiple .o!s or tas%s and to ta%e on many tas%s that "ere once reser#ed for super#isors or managers including hiring firing conducting appraisals and setting schedules.

A recent sur#ey conducted !y De#elopment Dimensions 'nternational /DD'0 in con.unction "ith 'ndustry Wee% magazine and the Association for 1uality and 2articipation /A120 estimates that a!out 34 percent of 5.S. companies are implementing SDTs some"here in their organizations. 6ompanies that already use SDTs include 6orning Toyota Automoti#e Te(as 'nstruments Digital 7$uipment 6orporation 2rocter 8 9am!le 6o. and 6olgate-2almoli#e. The results ha#e !een impressi#e: ,rganization that use SDTs ha#e maintained or reduced la!our costs "hile impro#ing producti#ity !y 4; percent or more. 'nstituting a culture that places a premium on empo"erment is no small feat. 7sta!lishing SDTs re$uires ma.or organizational and cultural changes. Without
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Article Self Directed Teams

such changes implementation can turn into a management-directed nightmare. And !ecause SDTs re$uire e(tensi#e employee in#ol#ement and trust failed implementations can set !ac% an organizations employee-in#ol#ement effort for years.

An organization must focus on fi#e ma.or issues in order to ma%e self-directed teams "or%: Designing teams for success Selecting team players Training for success 'nitiating leadership transitions Re"arding team performance What follo"s are some suggestions for addressing each of those fi#e important issues. Designing teams for success The most important suggestion for creating successful team implementation is a simple one: -a%e planning a priority. 'n mo#ing to"ards self-direction the organization and its employees need to consider such $uestion as these: Where do "e start< What training do "e need< =o" "ill SDTs affect our "or% and our .o!s< What role "ill support departments play< What responsi!ilities "ill !e transferred from leaders to teams< The follo"ing si(-step process can help companies get started in creating a successful SDT implementation. Step1. >earn a!out SDTs. The odds of success are !etter if upper management is properly schooled in the concept of SDTs. Resources a!out "or% teams are a!undant. Dozens of articles and !oo%s ha#e !een "ritten on the su!.ect. Se#eral companies sponsor conferences a!out the team concept. And #isits to team-!ased organizations can ser#e as #alua!le learning tools. Step2. 6onduct a *readiness+ assessment to determine if teams are right for your culture. ,ff-the shelf instruments and inter#ie" guides can help you decide if teams or alternati#e forms of empo"erment strategies are !ound for success or doomed to failure in your organization.

Article Self Directed Teams

Step3. 6ommunicate to your employees the organizations #ision and #alues as they relate to empo"erment and teams. -anagement must ha#e a clear picture of "here the company should go and ho" the concept of self-direction ties in "ith the e(isting mission and cultural #alues. Step4. Ta%e your organization through a process %no"n as *"or%-place redesign+. This process also %no"n as *sociotechnical design + re$uires an organization to ta%e a hard loo% at the nature of its "or% /"or% flo" .o! design and layout0 and its systems /compensation training hierarchy and appraisal0 and to !lend them for ma(imum producti#ity and employee satisfaction. 'n most cases "or%place redesign in#ol#es the formation of a committee that ta%es the organization through the design process. The committee should include managers line "or%ers and support staff !ecause all three groups ha#e a sta%e in the success of the team implementation. Step5. 'mplement. The actual implementation should include the positi#e features found in any sound change process: open communication leadership support and training. Step6. 6ontinually e#aluate the progress of SDTs. -ost organizations con#ert either on a trial !asis or in start-up locations so constant e#aluation is critical. Team implementations can al"ays !enefits from critical and continual ad.ustment and impro#ement. Selecting team pla ers 6ompanies that are mo#ing to self-directed reams must select "or%-forces that are e$uipped "ith-or-capa!le of ac$uiring-the competencies s%ills and #alues necessary for successful performance in high-in#ol#ement organizations. ,f course employee selection is not a %ey concern in a con#ersion at an e(isting organization "here a "or%force is already in place. )ut many self-directed teams ha#e the ad#antage of !eing implemented in start-up operations. 'n these companies selection !ecomes a %ey issue. Any good selection system should ha#e four ma.or features: The selection system must !e accurate in identifying candidates "ho are most li%ely to succeed in the ne" organization 't must !e legally defensi!le. 't must !e percei#ed as fair& candidates should !elie#e that they are treated in a .ust manner and that the system has accurately assessed their potential for performing the .o!s in $uestion. The selection system must !e efficient. The first step in setting up a team-oriented selection system is to identify the targets-called *dimensions+ or *.o! competencies+-against "hich a team mem!ers or team leaders performance "ill !e assessed. -any organizations accomplish this through the process of .o! analysis. A .o! analysis generates a list of !eha#iors technical %no"ledge s%ills and moti#ational areas that differentiate successful performance from unsuccessful ones.
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Article Self Directed Teams

A study of more than ?;; .o! analysis conducted for team-oriented organizations identified typical team-mem!er dimensions. The dimensions included team"or% pro!lem identification and solution the a!ility to learn communication initiati#e "or% standards coaching and training .o! moti#ation technical a!ility and "or% tempo /the a!ility to "or% at a relati#ely fast and constant speed0. Team-leader .o!s usually in#ol#e additional dimension including indi#idual leadership group leadership .udgment delegation and encouragement and support of initiati#e. ,nce the dimensions ha#e !een identified the company can design its selection system. -any system designers find it difficult to select instruments and tools that accurately reflect the dimensions to !e assessed. The !est selection systems tend to include a com!ination of techni$ues including inter#ie"s paper-and-pencil cogniti#e-a!ility tests technical tests references chec%s simulations and *realistic .o! pre#ie"s.+ Those last t"o assessment tools-simulations and realistic .o! pre#ie"s are particularly interesting. Simulations pro#ide a uni$ue and highly accurate method of measuring .o! potential. 6andidates encounter a series of structured acti#ities that closely resem!le procedures used on the .o!. For e(ample a large automo!ile manufacturer re$uired a team of people to "or% together to assem!le parts according to a set of .o! instructions. This single three-hour "or% simulation assessed each candidates a!ility to learn "or% tempo attention to detail and team"or% and cooperation s%ills. A realistic .o! pre#ie" is another feature of many selection systems. 't may ta%e the form of a #ideo that depicts the "or%ing en#ironment and culture of a team-oriented facility. A realistic .o! pre#ie" is not meant to !e a mar%eting #ideo. 't is a @do"n-to-earth+ pre#ie" of "hat "or% "ill !e li%e in the ne" facility and "hat "ill !e e(pected of "or%ers in the team-oriented en#ironment.

Article Self Directed Teams

The realistic .o! pre#ie" ser#es as a mechanism for discouraging applicants "ho decide that a team en#ironment is not the place for them and for encouraging applications "ho see it as an e(cising ne" "or%place opportunity. A final note regarding selection: 'ts important "hen implementing a selection system of this sort to ma%e sure that the people in#ol#ed in the selection process are "ell trained in the use of the #arious po"erful selection techni$ues that "ill !e used. Without such training the "hole selection system may !e "orthless. Data sho" that this %ind of in#estment made up front e#entually tends to pay off in terms of increased producti#ity and reduced turno#er and a!senteeism. Training for success When mo#ing to"ard team-oriented en#ironments companies tend to underestimate the need for ne" types of training. SDTs encourage multis%illing and .o! rotation "hich re$uire a hea#y in#estment in technical training. Wor%ers must learn to "or% together as a team "or%ers "ho ha#e !een re"arded in the past for indi#idual performance. Successful self-directed organizations commonly find that 3; percent of a team mem!er or team leaders time during the first year of team operation is spent in #arious training acti#ities. Three categories of training are essential for effecti#e team performance: Ao! s%ills are the technical s%ills re$uired for .o! performance. Team B interaction s%ills are the interpersonal and communication s%ills needed !y team mem!ers including gi#ing and recei#ing feed!ac% handling conflict #aluing di#ersity "or%ing in teams and training and coaching. 1uality B action s%ills in#ol#e identifying pro!lems and implementing impro#ements. These s%ills include statistical process control the use of #arious $uality tools continuous impro#ement techni$ues and trou!leshooting. Wor%ers "ho are in leadership positions "ill pro!a!ly needed additional training in such topics as coaching for success reinforcing effecti#e performance encouraging and supporting initiati#es and leading "or% teams. The success of self-directed teams is dependent on training for management and for staff or support department employees. For e(ample engineers accountants and training professionals might not !e part of the self-directed teams in a manufacturing firm !ut they should !e as "ell-#ersed in team and interpersonal s%ills as the team mem!ers themsel#es are. Training "or%s !est "hen it is pro#ided o#er time rather than in one *lump sum.+ Some organizations that ha#e implemented SDTs offered all of their training in four to si( - "ee% *training colleges.+ Such a schedule turned out to !e difficult for e#eryone especially for production "or%ers "ho "ere used to roaming the floors not sitting in class.
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Article Self Directed Teams

!nitiating leaders"ip transitions 'n reality fe" organizations ha#e totally con#erted to SDTs. 'n most cases managers and super#isors still ser#e the teams as #alua!le resources after SDT implementation !ut their roles change radically. 'n a traditional organization managers control and schedule "or% appraise and discipline employees and hire and fire. 'n many cases they are solely responsi!le for the $uality of the product or ser#ice.

The re#erse is true in SDT organizations. The team assumes those functions freeing managers and leaders to ta%e on entirely ne" sets of responsi!ilities: 6oaching and training the team mem!ers Ser#ing as the contact points for suppliers =elping teams gain access to the resources and training that are needed for success Filling in "hen team mem!ers are a!sent or during pea%-demand periods =elping teams coordinate efforts "ith other teams and other units "ithin the organization. 't is important that organizations help their super#isors and managers ma%e successful transitions. 6ompanies should ensure that these people ha#e clear e(pectations a!out their ne" roles as "ell as the necessary training in different types of leadership s%ills. 6hange should occur slo"ly to allo" team leaders and managers the time they need to learn their ne" roles. And the smoothest transitions in#ol#e leaders and managers in the change process. 5nfortunately first and middle - le#el managers often get in the "ay of a companys successful transition to a team-oriented en#ironment. -any managers find that the ad.ustment from old managerial responsi!ilities to ne" ones is not easy. At the heart of the concept of SDTs is the fact that teams ta%e on many of the responsi!ilities that "ere pre#iously reser#ed for super#isors and managers. As a result some super#isors and manager find themsel#es in a catch-33: )osses must ser#e as coaches to help SDTs "or% effecti#ely !ut successful SDT implementation could threaten the security of the !osses .o!s. 'n the sur#ey conducted !y DD' 'ndustry Wee% and A12 CD percent of organizations using self-directed teams said they "ere a!le to operate "ith fe"er managers. Einety-fi#e percent of the respondents found this change to !e !eneficial. Typical $uestions that super#isors and managers might as% themsel#es at this point: =o" "ill ' !e in#ol#ed in the SDT design effort< Will ' lose my .o!< Do ' ha#e the right s%ills to ma%e the transition<
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Article Self Directed Teams

Will ' lose my po"er and authority< Will ' !e !lamed if things dont "or% out<

Reducing the num!er of managers and super#isors is not the only option that an organization can e(ercise "hen ma%ing the transition to self-directed teams. Some organizations as% super#isors to ta%e on responsi!ilities as team mem!ers !ut allo" them to remain at their former le#els of compensation. 5nfortunately some employees may ha#e !een promoted to super#isory positions in the past !ased on their technical competencies not their moti#ation to lead and manage others. Such managers may e#en prefer to mo#e to teammem!er positions. 'n other cases organizations ha#e as%ed roles in particular production processes manager or super#isor "ho is mo#ed to leading other people !ut is percei#ed particular technical s%ill or process area. managers to assume technical-e(pert ma%ing them process managers. A such a position is not responsi!le for as a resource e(pert in his or her

,ther managers fill ne" roles as team facilitators and coaches helping their organizations and the ne" teams ma%e the transition to self-direction.

#e$arding team performance For years American industry has focused on re"arding the lone hero. increases ha#e !een !ased on either indi#idual performance or seniority

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The mo#e to"ards self-directed teams is changing 5. S. companies #ie" of compensation and re"ard systems. -any organizations that use self-directed teams implement #arious types of *gain-sharing+ or team-!onus schemes along "ith s%ill-!ased compensation plans. S%ill-!ased plans hold a uni$ue ad#antage "ith SDTs !ecause they focus on re"arding the num!er of s%ills a team mem!er has mastered and applied thus increasing production fle(i!ility. Such compensation schemes re"ard team mem!ers in three areas: %o& dept"' Team mem!ers are paid increasing amounts for learning a specific process in greater depth. For e(ample first they might learn ho" to operate a piece of e$uipment and then they might learn to do !asic pre#enti#e maintenance on that machine. Finally they progress to performing ad#anced maintenance on the same piece of e$uipment. %o& &readt"' 7#ery team mem!er learns all the .o!s or tas%s re$uired of the entire team. For e(ample in an automo!ile company the seat-assem!ly team might ha#e si( or se#en different production tas%s each performed !y one team mem!er. All team mem!ers "ould !e re$uired to learn all of the tas%s.

Article Self Directed Teams

)ertical skills' With this third and least common method team mem!ers learn leadership s%ills that are used in all .o!s. 7(amples include trou!leshooting techni$ues training other employees safety procedures and meeting leadership-s%ills that are re$uired for successful team performance. 2erformance of teams also can !e re"arded #ia gain-sharing or team-!onus programs. These programs re"ard teams for increases in producti#ity that e(ceed some measure of !aseline performance. 'n many cases management di#ides the !onus e$ually among team mem!ers& occasionally team mem!ers decide ho" to distri!ute the !onus among themsel#es. * po$erful empo$erment strateg SDTs are one of the most po"erful empo"erment strategies a#aila!le to todays companies. =undreds of organizations are using them to some e(tent "ith great success. ,rganizing into self-directed "or% teams re$uires a com!ination of planning selecting the right team mem!ers and leaders designing teams for success training continuously and carefully managing the shift of po"er and responsi!ilities from leaders to team mem!ers. The con#ersion to teams can fortify organizational structures to "ithstand the storm of pressure that !atters todays mar%etplace. SDTs can also pro#e to !e an e(citing inno#ation for the impro#ement of employees "or%place participation producti#ity and $uality of life.
Richard Wellins is Senior Fice-2resident at De#elopment Dimensions 'nternational ?334 Washington 2i%e )ridge#ille 2A ?4;?G-3DHD