Beyond Resources: The Missing Piece in Team Effectiveness

Teams are essential to the success of modern organizations, with 92% of employees acknowledging their importance. Yet, only 23% [1]believe their teams are highly effective, highlighting a significant gap between potential and performance. In their work on teamwork barriers, Tannenbaum et al. emphasize challenges such as a lack of collaboration, alignment, or leadership, but an essential element still needs to be explored: education in business context.

Effective teamwork requires more than just access to tools and training; it demands education in the business context. Without this understanding, teams are unlikely to perform at their best, regardless of their resources or technical skills. A high-functioning team needs both autonomy and contextual knowledge to align with organizational goals and make sound decisions.

The Nine Barriers to Team Effectiveness

Tannenbaum et al. outline nine common barriers to team success:

1. Competing Priorities: Differing priorities lead to friction and derail collaboration.
2. Undervaluing Teammates: Lack of recognition degrades team cohesion.
3. Power Differentials: Authority imbalances reduce psychological safety.
4. Lack of Leadership Promoting Collaboration: Leaders not fostering teamwork create dysfunction.
5. Inexperience Working Together: Teams unfamiliar with each other’s work struggle to align.
6. Dynamic Work Demands: Constant changes require adaptability but can strain coordination.
7. Interdisciplinary Challenges: Different perspectives bring innovation but also conflict.
8. Team Member Overload: Overwhelmed members lead to burnout and reduced productivity.
9. Lack of Resources: Insufficient staffing, budgets, or tools impede performance.

These are significant obstacles, but another barrier, often overlooked, is the absence of education in the business context – teams cannot make well-informed decisions if they lack their organization's strategic and operational knowledge.

The Role of Business Context in Team Success

Beyond technical competencies, teams must understand the company’s strategy, market dynamics, key objectives, and operational constraints. This business knowledge enables them to align their work with broader goals and make informed decisions without constantly needing input from leadership. Autonomous teams thrive only when equipped with this insight.

Consider a product team tasked with prioritizing features. Without a clear understanding of the company’s strategic priorities—such as a focus on market share over profitability—the team might prioritize the wrong deliverables. Even with sufficient tools and expertise, the lack of business context limits their ability to contribute effectively.

This best fits with Tannenbaum et al.’s discussion of “lack of resources.” Business knowledge should be treated as a core resource. Teams cannot function optimally without a clear understanding of where they fit within the larger organizational puzzle.

The Importance of Self-Leadership and Continuous Learning in Business Context

Encouraging self-leadership means motivating team members to take ownership of their learning – not just in technical skills but also in understanding the business. Self-led team members seek out insights about their organization’s strategy, customers, and financial drivers, which complements formal leadership by promoting alignment with the business vision.

When team members grasp the business context, they become empowered decision-makers. Leaders can nurture this autonomy by providing access to key business data, holding regular strategy briefings, and encouraging team members to ask questions about the company’s direction. This allows teams to stay agile and relevant in dynamic environments.

Psychological safety is essential for fostering curiosity and continuous learning. When team members feel safe asking questions about business strategy or admitting they lack certain contextual knowledge, they are more likely to engage in meaningful discussions that drive team effectiveness.

Business knowledge also encompasses understanding organizational culture – how things get done and what behaviours are rewarded. Teams need to navigate interpersonal dynamics and align with the company’s values to operate effectively. Cultural knowledge enhances collaboration by ensuring all members understand the informal “rules of the game.”

A Holistic Approach to Team Effectiveness

Organizations must redefine what they consider “resources.” In addition to tools, staffing, and budgets, business literacy and access to operational insights are critical. Teams cannot function autonomously without knowing how their work impacts broader business outcomes.

Leaders play a key role in ensuring teams have access to relevant business information. This includes not only disseminating strategy updates but also explaining how specific team contributions tie into the organization’s success. Practical strategies include holding business reviews with teams, sharing key performance indicators (KPIs), and fostering open dialogue about the company’s priorities and encouraging questions about the business strategy.

Education is not just about skill-building – it’s about equipping teams with the business context they need to make informed decisions and align with organizational goals. Without this understanding, teams may struggle to perform autonomously or contribute effectively, even when they are technically proficient. True autonomy can only flourish when teams have the tools, skills, and business insights to navigate decisions independently. Without business literacy, autonomy risks leading teams off-course.

Leaders must reflect on whether their teams have the business knowledge they need to succeed. They can foster this by providing access to strategic insights, encouraging team members to engage with the business, and creating a learning culture that promotes both technical and contextual knowledge. Empowered teams are those that understand not only how to perform tasks but also why their work matters – and that knowledge is the key to unlocking their full potential.

[1] Tannenbaum, S., Fernández Castillo, G., & Salas, E. (2023). How to overcome the nine most common teamwork barriers. Organizational Dynamics, 52(1), 101006. https://doi.org/10.1016/j.orgdyn.2023.101006

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