Tag Archives: high performing teams

Reward and recognition – the neglected tool for successful teams

holiday-cocktail

It is surprising just how many corporate executives fail to understand that it’s the simple things that make a difference.

Whenever I am working with the indirect expenditure in client organizations, I build cross-business, cross-functional teams. These teams are given clear objectives and goals and asked to build a team charter outlining their mission, roles, responsibilities and accountabilities. In many cases, the teams are launched with some training and development and a mission to gather data. Within 4 weeks, the team returns to make a presentation to senior executives outlining the mission, goals savings opportunities, risks and strategies. For many of the team members, this is their first exposure corporate executives.

Once approved, the team is given 4 additional weeks to bring the project plan back and an implementation team will be assigned. I also suggest that individual performance reflect the team performance so everyone has a stake in the game. The teams I’ve worked with have delivered cost improvement, process improvement, risk reduction and in many cases, increased shareholder equity.

When complete, I suggest the executives reward the team. They are normally surprised and many have asked me what should the reward be. I always say anything that recognizes that the team worked on the project in addition to their regular job, fostered collaboration and brought extraordinary results to the business. The reward is never about money, but always about a recognition that there was a major contribution to the business.

One CEO arranged for the team members and their significant other be picked up by limo and treated to dinner at the best restaurant in town. A small token of appreciation was given along with participation of the executive team. It’s been several years, but the team still talks about how they were recognized.

The company had many volunteers to join teams and make a big contribution. It’s best to understand that rewards like this bring loyalty and incentivize team members and other employees to be part of success. It’s a small price to pay for the benefits that are gained by collaboration, communication and success.

How do you reward good team performance?

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Low Management Expectations Lead to Poor Performance

andre-and-bill

Last week I attended the Zycus Horizon 2016 conference and was reminded of a conversation I had early in my career with a Chief Executive of a major food company. I’d completed a current state analysis of the business and needed to report on the team’s performance. Procurement’s performance was poor with limited cost improvement, poor coverage in volatile commodity markets and lots of complexity as the team had excessive spot market transactions, no risk analysis and limited supplier management. After reviewing the results with this executive, he was obviously aggravated and demanded to know who should be fired!

My response was a complete surprise to this executive; I told him that management’s expectation was low, there were no targets for cost improvement, no requirements to hedge commodities to protect the plan, limited engagement with the supply base, no requirement for innovation or value. The CEO paused and said, “I guess I should fire myself.“

5 Things that CEOs and CFOs should expect from the procurement team:

  1. Cost management
  2. Value Management
    1. Supplier innovation
    2. Speed to market
    3. Exclusivity
    4. Improved warranty
    5. Improved cost
    6. Continuous improvement
    7. Supplier investment
    8. Complexity reduction
    9. Business strategy alignment
  3. Supplier relationship management
  4. Internal and external collaboration
  5. Supply chain mapping, audit and risk management plans

It is unfortunate that Procurement’s past haunts its future ability to be strategic. I believe that value extraction will be the key to procurement leadership in the future. Is it better to gain a few cents on a product or be the first in the market? Is it better to save a few cents on refractory bricks in a glass furnace or develop a brick that extends the life of the furnace one year? It’s time to raise the expectations for the procurement team and deliver the performance that adds to shareholder value.

Are your expectations getting in the way of success?

Photo: My team manager Cubs Hall of Famer Andre Dawson helping set my expectations before my next at bat at the fantasy camp championship game. I was hitless at that point, but after Andre changed my focus, I got a hit off A’s Hall of Famer Rollie Fingers!

5 characteristics that drive high-performing teams

blue-angels-navy-precision-planes

Over the years I’ve had the opportunity to work with hundreds of teams. It’s always interesting to observe the teams and question why some teams succeed, while others flounder and eventually fail. Here are five characteristics the best performing teams have in common.

  1. Clear responsibility, authority and accountability must be assigned to the team. The team with responsibility and accountability is likely to fail if they lack the authority to act.
  2. Vision, mission and alignment to the business plan is a core criterion for success. If a team doesn’t have a charter with an agreed mission, the team will operate like a rudderless ship. It’s essential that the team works hard at the front of a project to understand the vision for the project, mission and joint goals. As part of the alignment of the business plan, the team must also understand how to measure its own performance and the success of the program.
  3. Management awareness and commitment to the team. One of the key elements for high-performing teams is the selection of team members. In today’s business environment when everybody is extremely busy, it’s essential for management to make a commitment of resources to the project. One other essential element is that the team success or failure reflects on the individual’s performance.
  4. Funding is always an issue when it comes to cross functional teams. I ‘ve seen teams struggle and fail when “who is paying for the project?” is unclear. Travel always seems to be a contentious issue when it comes to teams, especially if it’s global travel. One way to be successful is to create a budget upfront or agree with key line managers how much travel is involved and what time constraints will be placed on their department resources for this project. By addressing this issue at the start, team and project leaders can be assured that it won’t be an issue later in the project at a critical point.
  5. Reward and recognition is an essential part to assuring team success. Many team members are working on projects in addition to their regular workload. When a team is successful, it’s the responsibility of management to recognize their contribution to the business and develop some simple reward as a token of appreciation.

Many companies work to drive cross-business teams to meet business goals. Using these key elements as a project leader will improve the chances of having a high performing, successful team.

Will your team succeed?