4. Proof for the Law of Significance
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Number of individuals
Average Revenue
Average Profit
Team Average Revenue 276% Higher
Team Average Profit 115% Higher
Data based on
Means of 156 teams
and 78 individuals,
In our
Strategy Edge Simulation
5. Soteams aremore productive?
• Yes
1. Size does matter! Productive teams >5 and
<13
• The ideal team size is 8 or 9 members
2. When led by a single line manager who
shows a high personal leadership lid (>5
using GAPPS4) and a high leadership
flexibility (>4 using GAPPS4)
• No
3. When the work is creative in nature.
6. Challenge
• Think of three things that you do each week that you
do entirely alone.
• Now think of why you do these things alone?
• Now, consider that you are recommending to someone
else about how best to tackle those things… would you
recommend that they do it alone or with someone else?
7. Why we liketo go it alone(akaWhatmakesteamworknot
work)
• Insecurity
• Ego
• Fear
• Selfishness
• Pride
• Control
• Naivety
• Poor teammates
• Lack of training
All reduce and restrain our
abilities as a leader.
11. What is your leadershiplid?
1.What is the number on
my leadership lid?
2.Would others around me
agree with my
assessment?
3.What is my plan to
increase my leadership
lid.
4.What are the lid numbers
of those who work with
me?
5.What is my plan to
increase the leadership lid
?
Leaders Lid
Remember: Leadership Develops Daily, not in a day!
Law of Process
15. LeadershipFlexibility
Flexible Leader Stubborn Leader
• One size fits one
• Reads the audience then
communicates
• Continually develops
• Accepts responsibility and
gives praise
• Empowers others
• Enriches the team
• One size fits all
• Reads the speech to the
audience
• Knows enough
• Accepts praise and
abdicates responsibility
• Blames others
• Impoverishes the team
16. Whenis team work:
A good thing? Not such a good thing?
• When you want greater
efficiency
• When you want greater
productivity
• When you want more fun
with others
• When the team leader has a
high leadership lid and is
flexible to continuously
learn and develop
• When your ego or pride will be
hurt
• When productivity is not
important
• When you want to work alone
• When the team leader is
stubborn and thinks they are
already good enough or can’t
let go of control
18. To sum up
• Teamwork Matters:
• Teamwork increase profitability, efficiency and productivity
• Be The Best You Can Be:
• Team Leaders who have developed their leadership perform
better than other leaders
• Team Leaders who are show greater leadership flexibility have
more productive and efficient teams
• Highly flexible leaders are paid more and get promoted faster
There’s a lot of talk about teamwork. About how much better teamwork is than working independently. Words like “Synergy”, where the sum of the whole is greater than the parts.
But many of the proponents of teamwork fail to mention the less than productive meetings, the fact that some team members rather than contribute, actually appear to sabotage your own work.
And doesn’t individual skill and character of all the team members have a part to play in this “synergy”.
I’m sure that I could gather 11 of you together and call you a soccer team. Then you’ll play your first match against Man Utd. OK? Your chances of winning?
OK, so how about Kallang Utd.?
The local Primary school?
OK maybe then, but that rather depends on which eleven of you I choose, because even 6 or 7 year olds could run rings around some of you
Granted, the skills and knowledge of the team members will have a part to play. But is teamwork really a good thing? Is it better than working independently. And when, as I suspect in your own situations, you don’t get to pick all of your team members, you may have some doubts about the efficacy of teamwork over working independently.
Today I hope to raise your thinking about teamwork, and why it matters…. Or does it?
Dr. John C. Maxwell wrote the 17 Indisputable laws of teamwork, and Law number 1, is the Law of Significance:
One is too small a number to achieve greatness.
Leaders who fail to promote teamwork undermine their own potential and erode the best efforts of the people with whom they work. To accomplish anything significant, leaders must learn to link up with others.
At a recent seminar, a delegate cam up to me beaming and full of pride and told me “I’m a successful businessman, I have a beautiful bungalow, , not one but two Ferraris, and a 42 foot luxury yacht… and I’m a self-made man!”
He was surprised when I responded “Oh that’s a shame. Just imagine what you could have achieved with a team.”
He walked away deflated, but I trust, thinking.
So I put to you a simple challenge:
Anyone?
Anything?
Even inventions of one mind, to become significant, require a team of people to make, market, sell and support.
Heck, even inventions come about from minds educated by others.
So let’s accept that at some point, a team of people needs to be involved. i.e. it takes more than one person to create anything, certainly anything of any significance. But do teams actually perform better than a collection of individuals? Is “synergy” real?
We set out to find out.
To be able to compare individual effort against team effort we used one of our business game simulations – “Strategy Edge”. This simulation can be played by individuals competing with other individuals or competing with teams of people. We compared two groups, one group from the airline industry, another group from the telecomms industry.
Analyzing data from 2 groups of 156 teams and 78 individuals all working in the same industry as each other within different companies.
Here we compare the two key indicators for any business, revenue and profit.
A team is considered to be 3 or more individuals working together for a common purpose.
Here’s a brief summary of what we found:
On average, a team shows 276% higher revenue, and 115% higher profit.
Less than 6 team members and the difference is insignificant,
greater than 9 team members and team performance plateaus and falls off.
Two individuals competing show a higher revenue and profit than sole individuals, this is due to the raised level of competitiveness. Which remains constant for sole individuals competing up to 12 individuals.
More than two individuals competing (up to 5) and performance improvement is marginal.
SO it seems that teams are more productive!
And, despite what your best friends might tell you, Size matters!
The Ideal team size is 8 or 9 members - this concurs with so many researchers on teams from Meredith Belbin in the 60’s onwards, so we are unsurprised.
Each team, for our research had a nominated team leader. What we found was:
If the Manager’s leadership lid was greater than 5, the team averaged 6% higher Revenue and 5% higher profit than team with a team leader whose lid was less than 5
If the Manager’s flexibility >4, the team averaged 8% higher revenue and 7% greater profit
There are times when teamwork has been shown to be COUNTER-productive:
Nature of work matters Creative work – such as computer programming, !
So if a team leaders lid and flexibility have such an impact, what is it that prevents teams from being effective?
First, let’s challenge you again…
Think of three things that you do each week that you do entirely alone.
Now think of why you do these things alone?
Now, consider that you are recommending to someone else about how best to tackle those things… would you recommend that they do it alone or with someone else?
In John C Maxwell’s Law of Significance, he identifies these things as restraining or reducing the effectiveness of teamwork
All these things reduce and constrain our ability as a leader.
What we found is that teamwork works, under two key conditions:
The Leadership Lid of the Team leader and the Leadership Flexibility of that leader.
Let me, briefly outline what these two things are:
John C Maxwell’s 21 Irrefutable Laws of Leadership starts with Law Number 1, The Law of the Lid.
Everything rises or falls on leadership.
Leadership ability is the lid that determines a person’s level of effectiveness. The lower an individual’s ability to lead, the lower the lid on his potential. The higher the leadership, the greater the effectiveness. Your leadership ability – for better or for worse – always determines your effectiveness and the potential impact of your organization.
Maxwell uses the McDonald brothers as example of weak leadership putting a lid on their ability to succeed. The brothers started the McDonald’s hamburger chain but lacked the leadership to take it to national prominence. Ray Kroc had a vision for a national hamburger chain and bought the brothers’ business and turned McDonald’s into the successful giant restaurant chain it is today..
Ray Kroc’s lid was high and obviously the McDonald’s leadership lid was low.
(John’s story)
I know this for myself.
You may already know this, but I was born as a chef. Actually that’s not quite true. I was born as a baby and became a chef. Or at least that was my first career.
I started cooking because my mother, God bless her, was a terrible cook. And when I say terrible, let me give you an example. My mum overcooked everything. On Sundays we would often have roast beef for lunch. Roast beef in my home was a charred blackened, rock like substance that would not be out of place in a stone quarry.
Everything was overcooked. We used to joke that on Sunday morning, mum would put the brussels sprouts on to boil before we left for church. By the time we returned home, 2 or 3 hours later, the cabbage, potatoes and carrots would be a grey mushy slop, whilst the roast meat would make up for this with an entirely inedible texture.
Mum would put the Christmas treat of Brussels Sprouts on in October… OK, perhaps a little exaggeration but still.
So I started to learn to cook. Mostly so that I would have something I could enjoy eating.
I even got pretty good at cooking. I worked with some of the very best chefs and became a lot sure of myself and my fantastic abilities.
Brilliant. Now of course, I knew everything there was to know about leading and running a kitchen.
In my first real leadership test came in the Isle of Man, when after assuring everyone how brilliant I was, I was (rather foolishly as it turns out) given charge of the Palace Lido kitchens. Our first event was for 800 delegates at a telecommunications union conference. And just so you know, the telecomms union was at the time, a very militant bunch.
Well, it was a disaster. I had 30 kitchen staff, 30 waiting staff, a great kitchen and had even ordered enough food. My planning however was, well let me say, there wasn’t really any.
Lunch for 800 hungry, angry and loud delegates was late… by 2 hours!
It was not pretty.
It was not good.
Perhaps my mum had a better way after all.
I didn’t know the Law of the Lid at the time. But very clearly, what I had demonstrated was a very low number on my leadership. All the skills and competence to do the job of cooking, had not prepared me to effectively lead a team of 60 to deliver something.
I was ready to quit in shame. Already to hide out and hopefully disappear. But along cam the Executive Chef for the hotel. A big Swiss guy, renowned for his violent temper. I wasn’t going to be fired, I was going to be sliced into pieces… or so I thought. He, on the other hand wasn’t about to let me get away with it. He immediately called the entire team together, issued instructions and took command. Hey, we had a dinner to prepare and we were already running late.
I realised as I watched and listened in awe. My job wasn’t about cooking at all. My job was to lead a team of people and prepare and serve meals to the customers.
Looking back on this day in my life, I now realise that this was the day I chose to develop as a leader and raise my leadership lid. After all, a team of great people were expecting me to guide them to deliver and a whole multitude of hungry people were relying on me to make sure they were served.
I wasn’t fired that day, by the way. Chef later told me that such a very expensive experience wasn’t something he was about to throw out.
Your team, your organization, your church. Are limited by your leadership lid.
It’s the maximum headroom (picture) of your organization. The team must fit under the bridge.
If the leaders lid is at one, then, in spite of the team or organizations success dedication, or their competence at doing the job they do. The effectiveness of the team or organization is held down by the leaders lid.
As the leader increases their leadership lid. Improves their ability to lead… so the room for effectiveness grows.
How many of you have worked for a leader who’s leadership lid was low?
We all have, haven’t we?
Now, how many of you are sat next to that person right now? OK, there’s no need to put your hands up
Very often, when I work with leaders in organizations on the leadership lid, they will tell me that their own boss should really be learning about this. Well that may be true. But what matters here and now, is that we consider your own leadership lid.
So, here’s five questions for you…
What is the number on my leadership lid?
Would others around me agree with my assessment?
What is my plan to increase my leadership lid.
What are the lid numbers of those who work with me?
What is my plan to increase the leadership lid of others?
But where’s the proof?
From the same research project,. We found that as the Leaders lid (their ABILITY or COMPETENCY to lead) increased, then both revenue and profit increased (this was true for individuals AND for teams)
The Leader’s Lid was measured using our GAPPS4 leadership assessment tool.
The revenue and profitability increased significantly when the leader’s lid was 4 or higher, though between 6 and 9, there was less significant results… however, profitability was improved at the higher levels, albeit marginal in percentage terms, 2% is still better than the return from a bank… and that’s the ‘extra’ profit!
And this is compared to the same computer generated competitor.
So a quick challenge.
If your ability as a leader has an impact on team performance, what’s this flexibility all about?
Leadership flexibility (or agility) is the single greatest differentiator between successful leaders and less successful leaders.
To have flexibility of your style, learning, approach demands that you have:
Good, high level leadership skills (competencies) and
Depth of leadership character.
The most flexible successful leaders in Singapore are, incidently, leaders in the civil service and/or politics
Please note that Flexible leaders does not necessarily mean ‘good’ leaders.
A ‘good’ leader is one who’s approach and style at the time, in the context is the most appropriate.
But without the full toolkit available (through continuous development), there will be times when you are forced to use a hammer when a velvet glove would be more appropriate.
Let’s compare and contrast a “Flexible” and a “Stubborn” leader:
Thus, you can see why leadership flexibility increase team effectiveness.
So when is team work a good thing and when is it not such a good thing?
And the proof?
Based on the 22 thousand plus individual leaders in SEA in our database as of last year.
We looked at the average salary of those leaders and the number of years between significant promotions through their career.
Leaders with greater flexibility (and in order to have this, they must have a higher leadership lid too), are paid 50% more on average for every additional flexibility they score.
Up to a flexibility of 7, each additional point for leadership flexibility reduced time between promotions by 9 months.
Until a flexibility greater than 7, when promotions take longer. Largely because, these leaders are already near or at the top of their organizations… and there’s nowhere higher to go!
To summarize:
“synergy” does seem to exist in practice. Teams outperform individuals in profitability, efficiency and productivity.
When the team leader is both more competent as a leader and shows the flexibility to change their style appropriately (they are flexible).
Additionally, the more competent you are as a leader and the more flexible you are… the more you can command in salary and get promoted faster.
Being the best you can be, pays you, the leader, the team, and the organization.