The myth of the top management team

Companies all across the economic spectrum are making use of teams. They go by a variety of names and can be found at all levels. In fact, you are likely to find the group at the very top of an organization professing to be a team. But even in the best of companies, a so-called top team seldom functions as a real team. Real teams must follow a well-defined discipline to achieve their performance potential. And performance is the key issue--not the fostering of "team values" such as empowerment, sensitivity, or involvement. In recent years, the focus on performance was lost in many companies. Even today, CEOs and senior executives often see few gains in performance from their attempts to become more teamlike. Nevertheless, a team effort at the top can be essential to capturing the highest performance results possible--when the conditions are right. Good leadership requires differentiating between team and nonteam opportunities, and then acting accordingly. Three litmus tests must be passed for a team at the top to be effective. First, the team must shape collective work-products--these are tangible performance results that the group can achieve working together that surpass what the team members could have achieved working on their own. Second, the leadership role must shift, depending on the task at hand. And third, the team's members must be mutually accountable for the group's results. When these criteria can be met, senior executives should come together to achieve real team performance. When the criteria cannot be met, they should rely on the individual leadership skills that they have honed over the years.