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Healthy team dynamics trumps individual performance
A new piece of research, about boards and performance, confirms what many people already know: the power of 'team' is more conducive to performance than individual brilliance is. You see it all the time in team sports. Whether it's the Seattle Seahawks, Sky Procycling or the All Blacks of New Zealand, the collective power of a cohesive team, working towards a single goal, is a much stronger proposition than a team of individuals, as brilliantly capable as some of the individuals may be.
Boards of directors are no different. Celebrity directors or notables with important political, investment or other business connections are no match for a cohesive board that works as one towards an agreed goal. Given the widespread knowledge of this principle, why do so many shareholders and activist investors continue to promote candidates that play as individuals the moment they enter the boardroom?
Boards of directors are no different. Celebrity directors or notables with important political, investment or other business connections are no match for a cohesive board that works as one towards an agreed goal. Given the widespread knowledge of this principle, why do so many shareholders and activist investors continue to promote candidates that play as individuals the moment they enter the boardroom?
3 Comments
There's been some really compelling research on this subject - http://blogs.hbr.org/2014/01/the-key-to-a-better-board-team-dynamics/
Further, the important consideration in my mind is that of the response of shareholders and activist investors. It would be nice if these parties could adopt altruistic behaviours, and put matters of power, politics and singular ambition aside, given the clear correlation. The economy would be better for it, I'm sure.
Thanks Rob, appreciate you providing the link. I recall reading the HBR article a few weeks ago. The correlation between 'team' and 'performance' is helpful. The challenge for Charas and others researching in this field is to move from correlation towards the 'how' and 'why' questions. I've made a note to follow Charas!