The Crucial Role of CEOs in Building and Sustaining Effective Leadership Teams
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Teamwork makes the dream work, they say. But it’s leadership teams that make the business dreams a reality.
It’s teamwork that makes organizations function and thrive in business today. Through diversity of thought, innovation, and problem-solving, it’s the people who make success happen, and it’s effective leadership that shapes the culture and productivity of those teams. McKinsey research reveals that executives on high-performing leadership teams are five times more productive—and its trickle down effect can be felt throughout the business.
But how do organizations begin to build these teams? It’s the role of the CEO or company leader to build and sustain effective, happy, and healthy teams. Here are some actionable insights into building successful leadership teams.
The Role of the CEO in Building Leadership Teams
“Great CEOs are people who put great teams together,” says Vinod Khosla, entrepreneurial thought leader of Khosla Ventures. The CEO's primary responsibility lies in building and leading a dynamic leadership team, necessitating constant assessment, goal-setting, and celebrating achievements, but many CEOs grapple with the challenge of constructing effective leadership teams. According to a study conducted by DDI, EY, and The Conference Board, only 14 percent of CEOs believe they have the leadership talent needed to grow their companies. Ineffective leadership teams not only jeopardize the organization but also impede overall success.
The CEO's primary responsibility lies in building and leading a dynamic leadership team, necessitating constant assessment, goal-setting, and celebrating achievements. Successful CEOs transform their leadership teams into accountable contributors, coaches, and final decision arbiters. A focus on purpose- or mission-driven leadership, strong relationships, and a focus on team roles are pivotal for success.
What CEOs Should Keep in Mind When Building Teams
Building a strong team involves a lot of the basics of good leadership itself: defining and communicating a clear vision, determining crucial roles, instilling strong values, and providing positive reinforcement.
To construct an effective team, CEOs must consider three key factors: the team's aims, the composition of the team, and the optimal team size. Aligning personalities, fostering collaboration, and intentionally hiring diverse leaders with complementary strengths are crucial.
Furthermore, research suggests that teams beyond five members may experience diminishing returns, emphasizing the importance of an optimal team size. When it comes to the size of a team, Wharton School management professor Jennifer S. Mueller says that “after about five people, there are diminishing returns on how much people will pull.”
Sustaining Healthy Teams: How to Keep a Leadership Team Functioning
Once your team is in place, the real work begins. As Reid Hoffman, the co-founder and executive chairman of LinkedIn, says, “No matter how brilliant your mind or strategy, if you’re playing a solo game, you’ll always lose out to a team.”
Fundamental skills like communication, delegation, and collaboration are crucial. Through vulnerability and honesty, leadership can create a psychologically safe work environment where workers feel comfortable expressing themselves. Additionally, self-accountable communication, again starting from the leaders, builds trust and moves teams toward solutions. Specific goals and processes help prevent conflicts, too, and that paired with routine reinforcement ensures team-building becomes ingrained in daily operations.
Conclusion
The success of an organization hinges on the effectiveness of its leadership teams, and CEOs play a pivotal role in crafting and sustaining such teams. By embracing the outlined principles and insights, CEOs can navigate the complexities, build robust teams, and propel their organizations toward sustained success in the ever-evolving knowledge economy.
Sources
This article was originally published in Certainty News.
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