Unlike the securitization of mortgages that helped caused the “great recession,” putting people into teams or securitizing your greatest assets(your employees), if done properly, can result in far greater value created for your company than if your employees were all working as individuals. On the other hand, if teams are not built properly, it can lead to major destruction in value. In part 1 of this two part series, I will be talking about some of the benefits of teaming.
Better decisions and solutions
When people with different roles, holding different positions work together as a team, the team can make better decisions and come up with better, more innovative solutions. This makes sense as teams will have more and different experiences, skill sets, knowledge, and points of view to draw upon and get better results with.
Here’s an example: If a team responsible for purchasing washing powder only consists of the staff that negotiate and buy the washing powder but never actually use it, that team might not buy the brand that cleans the customers’ clothes the best. On the other hand, if the team also consisted of laundry staff that regularly uses washing powder, and therefore knows which brand produces the softest, cleanest, and best smelling clothes, the odds get much better that a good washing powder brand will be bought.
It’s crucial to include in the decision-making process people that actually get affected by the decision, and have seen first-hand how past related decisions have worked out.
Employees will realize that their contributions matter and their opinions are valued when they are part of a self-directed team that makes important decisions, and is responsible for doing things that are bigger than the employees’ individual tasks. When employees feel valued, they will be more satisfied with their jobs, and that will result in higher productivity and a lower employee turnover rate for your company.
Help your employees develop new skills
When working in a team, employees can learn new skills from others (especially the more experienced employees), and have a better understanding of how things work in your company. This hands-on experience along with the training you provide your employees with will, over time, develop leaders that will drive change and successfully navigate the future.
I learned a lot about teamwork and teaming in “The Disney Way” book. The book is excellent, and can really help us with becoming better managers and/or building great businesses.
In the second part of this series, I will be talking about some of the things companies can do to build successful teams. So, check back soon if you’re interested. Thank you for reading, and may you always sustain good returns on your portfolio. Take care.