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This article originally appeared on HBR.org. When Bain & Company asked senior executives from 308 large companies how they form teams for their most important initiatives, most told us they assemble teams based on whoever is available. Only a small minority indicated that they consistently create all-star teams, comprised of their very best talent, to tackle their company’s highest-priority issues. This is an enormous missed opportunity: we found that the best companies are more than 25% more productive than the rest due to the way they deploy, team and lead scarce, difference-making talent. Here’s what our research shows: The best talent is significantly more productive than the rest. Most of us know from experience that our best players are much better than our average teammates. But we may not fully recognize just how much better they are. For creative or highly unstructured work, the best can be 8 to 12 times as productive as the average. The best software developer at Apple, for example, writes nine times more useable code each day than the average software engineer in Silicon Valley. But even for routine or highly repetitive work, the difference in productivity can be significant. The best fish butcher at Le Bernardin restaurant in New York can butcher three times as much fish per hour as the average prep cook in Manhattan. The best can do more–and do it better–than the rest. Therefore, the more stars in an organization, the more productive it will be. Teaming great talent together acts as a force multiplier; increasing productivity geometrically. Teaming people with different skills and perspectives together almost always produces more output than the sum of those individuals acting alone. After all, two heads are almost always better than one. But with star talent, this relationship is more extreme. Indeed, productive power increases geometrically with the percentage of star players on a team. A five-member team, comprised entirely of A-players, can produce 16 times as much output–or the same output in one-sixteenth the time–as the sum of five average players working individually. Take NASCAR pit crews, for example. For many years, Kyle Busch’s pit crew was considered the very best in NASCAR. His crew is a team of all-stars that trains together year round. Their performance can be objectively assessed. A standard pit in NASCAR involves 73 separate maneuvers, such as changing all four tires or refueling. Busch’s pit crew can complete a standard pit in just 12.12 seconds. It’s remarkable to watch. If you remove one of his crewmen and replace him with an average crewman–say, a tire changer–the time it takes to complete that same pit jumps to more than 23 seconds. Take two out and find average replacements and it increases further–to more than 45 seconds. Essentially, a geometric decline in productivity as the percentage of stars on the crew decreases. Star talent has an outsized impact on team productivity. The greater the percentage of A-players on a team, the more productive that team will be. Great leaders further magnify the productivity of extraordinary teams. Not all team leaders are alike–just like not all coaches are alike. Great coaches get better performance out of their teams than mediocre ones. They encourage each member of the team to play his or her position–leveraging other team members–and play to their full potential. In 2012, the National Bureau of Economic Research studied the impact that great bosses have on team productivity. They found that a great leader (the top 10% in the companies they studied) can increase the productivity of an average team by about 10%–roughly equivalent to adding an additional member to a nine-member team. However, take that same great boss and put them in charge of an all-star team and he or she will increase that team’s productivity by more than 10%. And, keep in mind, the productivity of that all-star team was already significantly higher to begin with. Great leaders act as a force multiplier on the force multiplier of all-star teams.
Michael Mankins: Time, Talent and EnergyHow companies can increase productivity and competitiveness by successfully managing these three key resources. So what does it take to unleash this productive power in your organization? Our research and experience highlights at least five actions:
Extraordinary teams offer the potential for exceptional productivity and performance. Sadly, most companies fail to realize this potential. They treat the teaming of scarce star talent as an afterthought–or follow outmoded practices for assembling teams. The best companies take a far more disciplined and rigorous approach–particularly with respect to teaming their very best talent. They aren’t afraid to assemble all-star teams to tackle mission-critical initiatives. And they reward team performance commensurately. Michael Mankins is a partner in Bain & Company’s San Francisco office and a leader in the firm’s Organization practice. He is a coauthor of Time, Talent, Energy: Overcome Organizational Drag and Unleash Your Team’s Productive Power (Harvard Business Review Press, 2017).
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