Allowing teams to self-organize can be a daunting prospect for many organizations, but it is a necessary step to thrive in the modern business landscape. Organizational agility is not just beneficial—it’s essential for survival and success. The ability to quickly adapt to new challenges and opportunities can make or break a company. One of the critical components of achieving this agility is the implementation of self-organizing teams. Having coached both Agile and non-Agile teams for years, I’ve witnessed firsthand the transformative power of decentralizing decision-making and fostering autonomy within teams. But what exactly does it mean for a team to be self-organizing?
Understanding Self-Organization
“Self-organization” can mean different things depending on the context, which often leads to confusion. Richard Hackman, in his book Leading Teams: Setting the Stage for Great Performances, outlines a clear authority matrix that distinguishes four levels of team self-organization based on conditions and responsibilities.
Manager-led teams: In these teams, the authority is centralized. Managers design the context, set the direction, and monitor work processes while team members focus on task execution.
Self-managing teams: These teams, such as those defined in the Scrum Guide, have more autonomy. They not only execute tasks but also manage their workflows, decide who does what, when, and how, and continuously improve their processes. This level of self-organization was recently emphasized in the Scrum Guide to highlight the importance of team ownership and accountability.
Self-designing teams: These teams have the authority to change their composition, including hiring and firing members. This level of autonomy allows teams to shape their structure to better meet their goals.
Self-governing teams: At this highest level of autonomy, teams take full responsibility for executing tasks, managing processes, designing the team, and setting strategic directions.
The distinctions between these levels highlight the varying degrees of autonomy and responsibility. Self-managing teams focus on internal organization and process improvements, while self-designing teams have broader authority over team composition. Self-governing teams possess the highest level of autonomy, encompassing all aspects of team and task management. Understanding these differences is crucial for organizations aiming to implement the right level of self-organization that aligns with their goals and structure.
We could say that “self-organization”, then, is an umbrella term encompassing different levels of autonomy and authority within a team.
Why Self-Organizing Teams Are Crucial
In an era where market conditions and customer needs can change overnight, the ability of an organization to pivot and respond swiftly is vital. Self-organizing teams are not just a trend; they are a necessity for modern product development. The Agile Manifesto, particularly its eleventh principle, underscores that “the best architectures, requirements, and designs emerge from self-organizing teams.” This principle holds true for several reasons. First, complex problems require collaborative efforts. No single person can tackle multifaceted customer issues within a competitive timeframe. Second, finding the right people with the necessary skills who are available and willing to work on a project is incredibly challenging. Self-organizing teams can dynamically adjust to these constraints, making the best use of available talent.
How to Build Self-Organizing Teams
Creating a self-organizing team is not about putting people in a room and expecting magic to happen. It requires deliberate actions and ongoing support. Understanding the flow of value is crucial. Establish stable, focused teams around the flow of value with a shared goal and all the competencies needed to deliver work. Prioritizing work effectively means bringing the highest value tasks to the teams instead of shuffling people between projects. This approach reduces context switching and increases focus. Fostering continuous learning is another key component. Encourage team members to develop multiple skills, allowing smaller, more versatile teams to thrive. Providing a supportive environment is essential as highlighted in the Agile Manifesto’s fifth principle, which emphasizes building projects around motivated individuals and offering them the environment and support they need.
Continuous Evolution and Leadership Shifts
Self-organization is an ongoing process. Teams must continually adapt to changing demands and contexts. This dynamic nature of self-organization necessitates new leadership skills focused on enabling teams rather than directing them. Leaders must act as coaches and mentors, helping teams navigate the transition from hierarchical structures to autonomy. Encouraging a culture of learning and feedback fosters resilience and continuous improvement. Providing clear boundaries and rules is akin to setting up a football field where teams can play within well-defined constraints.
Overcoming Challenges in Self-Organization
Creating a self-organizing team is not about putting people in a room and expecting magic to happen. It requires deliberate actions and ongoing support. Understanding the flow of value is crucial. Establish stable, focused teams around the flow of value with a shared goal and all the competencies needed to deliver work. Prioritizing work effectively means bringing the highest value tasks to the teams instead of shuffling people between projects. This approach reduces context switching and increases focus. Fostering continuous learning is another key component. Encourage team members to develop multiple skills, allowing smaller, more versatile teams to thrive. Providing a supportive environment is essential as highlighted in the Agile Manifesto’s fifth principle, which emphasizes building projects around motivated individuals and offering them the environment and support they need.
The CDE Model for Self-Organization
A useful model for fostering self-organization is the CDE (Container, Differences, Exchanges) model by Glenda Eoyang. Establishing a clear container with boundaries and rules provides a framework within which the team can operate freely. Leveraging the diverse skills and knowledge within the team through retrospectives and team-building activities enhances awareness and capability. Ensuring robust communication channels and a supportive environment enables the free flow of information and resources, which is essential for self-organization.
The Benefits of Forming Self-Organizing Teams
Selecting the Best Team Formation Type for Your Project or Organization
The ability to form effective teams quickly and adaptively can be a decisive factor in achieving strategic objectives. Teams can be meticulously assembled by management, form organically through shared interests, or be given the autonomy to manage themselves. They might operate in physical proximity, spread across various locations, or even function entirely virtually. The right approach depends on factors such as the nature of the project, the skills and personalities of team members, organizational culture, and the external environment.Team formation methods are diverse and can significantly impact the dynamics, performance, and success of a group. Below is a detailed discussion of various team formation methods, including examples for each:
Concocted Teams
Definition: Concocted teams are formed by external leaders or managers, often with a specific goal or project in mind. Members are selected based on their skills, experience, and the needs of the project.
Use case: A software development company might put together a team of developers, designers, and testers to work on a new mobile app. The project manager selects team members based on their expertise and experience with similar projects.
Example: McKinsey & Company forms a consulting team to work on a client’s business transformation project. The team includes experts in strategy, operations, and finance, selected specifically to address the client’s needs. The project manager assembles the team based on the consultants’ expertise and past performance.
Self-forming Teams
Definition: Self-forming teams emerge naturally as individuals come together around a common interest, goal, or project. These teams are typically informal and not mandated by management.
Use case: Employees at a large corporation might form a team to organize a charity event. They come together voluntarily, driven by a shared passion for the cause, without any formal directive from upper management.
Self-organizing Teams
Definition: Self-organizing teams have the autonomy to determine how they will accomplish their goals. While the team might be given a clear objective, they decide internally on roles, processes, and workflows.
Use Case: In agile software development, Scrum teams are self-organizing. While they receive a prioritized backlog from the Product Owner, the team collaboratively decides how to tackle the tasks during the sprint.
Example: Spotify’s “Squads” operate as self-organizing teams. Each squad is akin to a mini-startup, with a clear mission and full autonomy to decide how to achieve its goals. They use agile methodologies to manage their work, frequently adapting their processes to better meet their objectives.
Self-managing Teams
Definition: Self-managing teams have a high level of autonomy and are responsible for managing themselves, including planning, organizing, staffing, directing, and controlling their activities to achieve goals.
Example: A self-managing team in a manufacturing plant might handle everything from scheduling shifts to managing inventory and quality control without direct supervision from management.
Example: W.L. Gore & Associates, the maker of GORE-TEX, uses self-managing teams in their production processes. These teams handle everything from scheduling to quality control and make decisions collectively without direct supervision. This approach has led to high levels of innovation and efficiency.
Communities
Definition: Communities are groups of people who share common interests or practices. They come together to share knowledge, solve problems, and advance their collective understanding.
Use Case: An online community of graphic designers might form to share tips, provide feedback on each other’s work, and discuss the latest trends in design software and techniques.
Example: The World Wide Web Consortium (W3C) operates as a community of organizations and individuals dedicated to developing web standards. Members collaborate, share knowledge, and solve problems related to web technologies, ensuring the web’s long-term growth and standardization.
Internal Markets
Definition: Internal markets are systems within an organization where teams or individuals compete to provide services or products to other parts of the organization, mimicking market dynamics.
Use Case: A large tech company might create an internal market where different teams develop various software tools. Other departments then “purchase” these tools using allocated budgets, encouraging innovation and efficiency.
Example: Amazon’s internal market system allows teams to act like small startups. Teams develop new products and services, and other departments or customers within Amazon can choose to adopt these innovations. This approach has led to the development of services like Amazon Web Services (AWS).
Dynamic Re-teaming
Definition: Dynamic re-teaming involves regularly reorganizing teams to bring fresh perspectives, encourage innovation, and break down silos. Teams are fluid and change composition as needed.
Use Case: A consulting firm might rotate team members across different projects every few months to ensure diverse experiences and perspectives are brought to each client engagement.
Example: At Valve Corporation, a video game development company, there are no fixed teams. Employees are free to move between projects based on their interests and skills. This dynamic re-teaming approach fosters a culture of innovation and allows for the rapid adaptation to new challenges and opportunities.
Distributed and Virtual Organizations
Definition: Distributed and virtual organizations operate with team members located in different geographical areas, often relying heavily on digital communication tools.
Use Case: A global marketing agency with team members spread across different continents works on client projects virtually, using tools like Slack, Zoom, and Trello to collaborate and communicate effectively.
Example: Automattic, the company behind WordPress.com, operates as a fully distributed company with employees spread across the globe. They rely heavily on digital tools like Slack, Zoom, and internal blogs to collaborate and communicate. This model allows them to hire talent from anywhere and maintain flexibility in their operations.
Effective self-organizing teams bring numerous benefits. Increased autonomy leads to greater creativity and innovation. Teams with more control over their work tend to have higher job satisfaction. Working closely together fosters stronger bonds and collaboration, and self-organizing teams are better equipped to align their work with the broader objectives of the organization.
