Managing a High Performance Team in Stressful Times Relationship-centered Approach

EFFECTIVE EXECUTIVE AUG.2009

Building High Performance Teams

Managing a High Performance Team in Stressful Times Relationship-centered Approach

-- Dr Bob Murray

Companies all over the world shed labor as a gut reaction to the prevailing economic crisis. The article outlines the reasons why high performing teams succumb to stress and suggests a number of strategies for making them more resilient and their productivity more sustainable.

These are stressful times: for in dividuals, for companies and for countries. From November 2008 to the end of February 2009 the US lost 3.6 million jobs and even the massive growth engine that was China had ground almost to a halt. Companies all over the world shed labor as a gut reaction—almost oblivious to the long-term consequences.

A senior partner in a large financial services firm complained to me that he had arrived at the office one day to find that his highest performing manager had been sacked and his team, which had been one of the company's highest performing units, was decimated because a number of other team members had quit as a result.

The challenges executives face in holding teams together and keeping them resilient, engaged and productive are now that much more daunting. My colleagues and I have, over the last few years, been increasingly called in to help build and sustain High Performing Teams (HPTs) and the pace of enquiry has quickened considerably over the past months.

The problem is not just that the general level of stress within companies has been escalating with the increasing emphasis on short-term profit targets and ever higher productivity goals. The pace of change itself has ratcheted up and rapid change is stressful to most human beings, even, perhaps especially, high performers. Executives and managers face four main problems in regard to stresstheir own stress level; stress among people who report to them; the general level of stress within their organization, and the stress of society as a whole. The good news is that if they are able to deal with the first three problems they may well be able to insulate their people from social stressors sufficiently to retain their productivity and their performance levels.

In this article I want to outline the reasons why HPTs succumb to stress and suggest a number of strategies for making them more resilient and their productivity more sustainable.

Stress Effects

A lot is talked about `good' and `bad' stress as if there was a clear dividing line between the two. What is true is that a human being—whether he or she's a high performer or a low performer—needs a certain amount of stress in order to function properly, to keep his or her emotional and physical immune system in working order. However, what one person experiences as good stress may be bad for another and what one team can handle may be totally outside the capability of another. Although the dividing line may vary from person to person and from team to team, at some stage prolonged and continuous exposure to stress causes a breakdown from which there may be no easy or even complete recovery. However, a well led and managed team can endure a lot more stress than a poorly managed one, and be able to bounce back from stressful and challenging situations.

What, then, is stress? The noted Swedish biologist and psychologist Bjorn Grinde defines a stressor as anything to which our genes are not adapted. We are designed to be able to withstand considerable stressors for a short period after which, over time, we naturally recover. We can do things which we were not designed to do—such as working 60 hour weeks—for short periods without too much permanent harm. If the strain on our genetic system is too great we, like a steel bar pushed beyond flexible limits, will break. Some of the consequences of workplace stress include absenteeism, presenteeism (lost productivity while at work), industrial accidents, errors and mistakes, and attrition of key people. In fact 40% of all attrition of high performing people is due to workplace stress and the breakdown of relationships at work.

One of the long-term effects of this excess of stress is depression. Studies have shown that the rate of depression in both the developed and the developing world is doubling every 20 years and that depression may now be the number one killer. This is because numerous fatal diseases have been linked to depression—heart disease, various cancers, MS, Parkinson's disease and diabetes, in particular. A number of studies estimate the rate of depression in modern workplaces at 30%. This places a huge burden on any organization and it will increase exponentially with the worsening economic situation.

Dr Bob Murray holds a PhD in Clinical Psychology from New York University, and has taught at leading universities such as Duke, Tufts and California State in the US and the University of Sydney, Australia. A worldwide authority in leadership development, organizational change and psychology and co-author of Creating Optimism (McGraw-Hill 2004), Murray helps clients such as PricewaterhouseCoopers, PepsiCo, Ford Motor Co., and McDonald's create a positive relationship environment that enhances resilience and fulfilment while increasing company performance.

Stress Costs

Lawyers have been identified as among the most depressed of all professionals. Law firms are undoubtedly highly stressful places. As part of an overall resilience and sustainability initiative in one major Australian law firm, we studied the cost to them of workplace stress. The firm had around 2000 staff, the majority of whom could be classed as high achievers and high performers. Even using boom time figures, we found that workplace stress was costing the company AU$25 mn annually or approximately AU$12,500 per person.

A 2008 study by Australia's largest insurer, Medibank Private, estimated that the overall cost of preventable workplace stress in Australia was about AU$15 bn per year. The American Institute of Stress says stress costs the US companies over US$300 bn and proportionally similar estimates have come out of studies in Japan, Taiwan and South Korea.

While most employers are aware that workplace stress is costing them a lot of money, few have any systemic programs to deal with the problem. Those that have stress policies in place usually focus on stressed or depressed individuals rather than looking at the root causes of stress and depression within their own systems and work practices.

Sustainable Stress?

Recently we were asked to help a large multinational professional services firm who, for convenience, I will call Smith Inc (not its real name). Their problem, as top management saw it, was `sustainability' and they wanted us to design a program for them which would lead to a more sustainable working environment. They had a high attrition rate—nearing 40%—and their internal working relationships were at a low ebb. Although they were still highly profitable they were losing their best people and even their highest performing teams were complaining of long hours, too much travel, and not enough work-life balance.

We spoke to people at all levels of the organization from newly recruited graduates to the top executives. We examined their work practices, their assumptions, and their corporate culture. It soon became clear that senior management and those under them had a very different idea of what was meant by `sustainability.' To juniors it meant working fewer hours, travelling less and having senior management push back against unreasonable client demands. To the executives it meant coming up with the magic bullet so that those below would continue to work long hours at very high pressure without complaint while maintaining high performance.

Mismanaging HPTs

It was clear the senior management of Smith Inc didn't appreciate the stress level of their people, nor the extent to which the high-stress environment was undermining the sustainability of their high performing teams. Initially unwilling to recognize the deeper relationship issues that were at the heart of their firm's rising stress level and falling productivity, they assumed their high-performing `resources' should simply cope with higher stress and better manage their work load.

In many other organizations we have found a similar attitude. Top management believes that just assembling a team of high-performing individuals will produce an HPT. They also often believe that they can treat HPTs (many, if not most of whom are Gen-Y) in the same way that their own bosses treated them. They tend to use a transactional carrot-and-stick management style—the very opposite of what an HPT needs. They often believe that fear and a certain bullying style drive productivity and profit. Nothing could be further from the truth.

Underlying Stressors

In-depth interviews at Smith Inc., revealed that it was not so much the long hours and travel that were at the root of HPT members' dissatisfaction and resentment, but merely the tip of the iceberg. Underneath the presenting complaints were issues of relationship and trust which could be further broken down into:

Autonomy

HPT members felt that they had little control over their working environment. They felt that they were not consulted or taken into the decision-making process.

Recognition

Smith Inc., was a long way from cultivating a culture of praise. Team members felt undervalued and feedback focussed more on highlighting their gaps rather than affirming their strengths.

Communication

HPT members felt that all they got from the management were orders and very little genuine, open dialogue during which they could honestly share their needs and concerns. They also felt that they didn't have sufficient time to interact with each other and that collegial relationships were short-lived anyway because of turnover and secondments.

Purpose

Individual team members rarely saw the end results of their efforts and there was a pervasive feeling that what they were doing lacked purpose. In fact, they tended to feel that all management cared about was squeezing the last drop of productivity from them.

Fairness

HPTs felt that the situation just wasn't fair.

Strengths and Vulnerabilities of HPTs

It's simply not true that all members of an HPT are, or need to be, driven high performers. Professor Rick Hackett of McMaster University, Canada, and others have shown that teams made up solely of such individuals collapse very early under the weight of their own stress and internal competition. People attracted to well-known multinational firms such as Smith Inc., tend to be what are known as high-achieving low self-esteem individuals. They have been taught that their only worth is in their achievements. This makes them emotionally vulnerable and particularly prone to stress. Top of their class at school and university, they are thrown into workplace environments where high marks are no longer enough. The success strategy they developed for gaining their parents' approval no longer differentiates them in an environment where excellence is merely the norm and not considered praise-worthy. The sibling-like rivalry for scant recognition becomes fierce and teams cease to work together effectively.

In our experience, and that of other researchers, an HPT works best when its members are chosen not just for their intellectual or technical excellence, or even for their drive and dynamism, but also for their relationship and communication abilities. They should have, in author Daniel Goleman's terms, emotional intelligence (EQ) and even more important, social intelligence (SQ). In fact, the best teams are built around individuals who excel in these areas rather than in the technical or intellectual realm. As Professor Hackett points out, people with these talents are the glue that holds teams together and act as stress lightning rods.

Fostering HPTs

To work really effectively, HPTs require a special kind of leadership style from senior management. Even the much lauded transformational leadership style (where a leader is charismatic, inspires followers, challenges and stimulates them, and demonstrates concern for individuals) falls short. There must be a more relationship-based approach to the team. Leaders must earn the respect, loyalty, and trust of the team, which will occur only through a pattern of one-on-one reciprocal social exchanges in which the HPT's performance is rewarded with job-enhancing benefits. These benefits may be of a social or psychological nature (e.g. heightened autonomy, recognition, access to privileged information and developmental opportunities), and need not be monetary.

Management also has to recognize that leadership of an HPT often comes from within the team, rather than being dictated by the management. An HPT must be allowed to bond as a `tribe' and having a leader emerge is part of that process. The team leaders that do emerge in this way may not be the most experienced, or the most skilful, or even the most intelligent. They will usually, however, be the ones who are able to inspire the others or simply the ones with the best interpersonal and communication skills.

Teams can also bond around a compelling vision well communicated by management. In Hackett's words, a functional HPT must have a sense of "higher moral purpose". If a team bonds together effectively they will perform to their highest level because they want the team to succeed. This bonding process is what will hold the team together in times of heightened stress. It is also what will prevent burn-out, absenteeism, presenteeism and other productivity-destroying aspects of stress.

Senior management should facilitate team bonding through giving greater autonomy to an HPT than they might to another team. Since such a team may be made up of skilful, intelligent but in some ways vulnerable individuals, management must be generous with genuine praise. They should identify strengths and praise people not only for successful outcomes but also for how they work, such as for their effort, teamwork and willingness to try out new ideas.

Stress and depression can pass virally from one individual to another: team members can literally catch a bad mood. As an authority figure, a manager is more likely than others to unwittingly transmit distress. A good leader must take care to manage his or her own stress level. If out of sorts or irritable, he or she should take care to let people know the problem is not with them.

Steps to Destress an HPT

Of course an HPT cannot be isolated from the rest of the world and they are bound to reflect to some extent the wider social angst. What can a leader do to destress the team and build its resilience? Here are six actions leaders can take:

• Reward through relationships: Supportive relationships are the greatest factor in resilience. A leader should go out of his or her way to deepen the relationship by conversing with his HPT, showing curiosity about them as people and listening to them even when they complain.

• Use praise and recognition: Acknowledging people's value is especially important in times of stress. Praise solidifies relationships and calms the part of the brain that reacts to stress. It also encourages people to be more creative and more flexible.

• Encourage autonomy Lack of autonomy is one of the main work stressors and is particularly stressful for an HPT. Let team members discover new ways of doing things and encourage them to discuss their ideas with you. This is different from laissez-faire leadership as the leader is still in control and is clear about what he or she needs from the team and sets timelines by which these needs should be met.

• Offer learning opportunities: HPTs are, for the most part, comprised of highly intelligent individuals who crave learning and exploring new ideas. They become stressed if ongoing development is not encouraged by senior management

• Clarify expectations: Be specific about what you need people to do. Avoid making generalized statements (such as `be a better team player' or `be more commercial') which are confusing and meaningless. Don't fudge hard messages but give them in such a way as to show that you value the relationship.

• Communicate purpose: A manager must be passionate about the work that he or she is asking an HPT to do. This gives team members a sense of purpose which will enable them to withstand external stressors and get on with the job.

In our experience, if a manager concentrates on doing these things he will ensure that HPTs function well and very productively even in times of heightened stress.

Conclusion

Particularly in these stressful times, all teams will benefit from a relationship-centred approach, but this management style is especially important for HPTs, and the pay-offs are greater. HPT members need to feel that they have a say in the way they go about their job and be encouraged to bond and collaborate rather than compete with each other. While giving direction and encouragement, managers should allow leaders to emerge from within rather than always be appointed from without. HPTs need to receive recognition and praise even when `they are only doing their job.' Moreover, they need a sense that what they are doing is both important to the company but also valuable to the wider community