Great Business Teams by Howard Guttman: Free Book Summary

In the competitive world of business, the difference between good organizations and great ones often boils down to the strength of their teams. While good and average teams meet deadlines and stay within budget, they tend to maintain the status quo. They don’t push the envelope or strive for excellence, resulting in organizations that perform adequately but not outstandingly. In contrast, great business teams are high-performing, horizontal teams that achieve the highest levels of results. Howard M. Guttman, in his influential work on team dynamics, offers a comprehensive guide on how to build and sustain such exceptional teams. His insights reveal that with the right leadership, structure, and culture, any organization can elevate its performance and achieve remarkable success. Join us as we explore Guttman’s key lessons on creating great business teams and how these principles can transform your organization.

Lesson 1: Leadership Starts at the Top

Great business teams are led by high-performance leaders who are impatient with the status quo and have a unique vision akin to an architect’s blueprint. These leaders break away from the traditional hierarchical model, opting instead for a “flat,” horizontal structure. They understand that they can’t achieve standout performance alone and thus foster an environment where team members are empowered to make decisions and are held accountable for the outcomes. In this model, a high-performing team is not leaderless but rather a team of leaders, where members are accountable not only for their performance but also for that of their colleagues.

Lesson 2: Rigorous Protocols and Alignment

A hallmark of great business teams is their adherence to well-crafted protocols and clear decision-making processes. These teams are crystal clear about who makes decisions, how they are made, and what each team member is accountable for. Guttman emphasizes that alignment across five key areas is essential for high performance:

1. A shared and understood business strategy.
2. Identifiable and allocated business deliverables derived from the strategy.
3. Defined, relevant roles and responsibilities at both individual and functional levels.
4. Rigorous protocols for decision making and conflict resolution.
5. Strong, collaborative business and interpersonal relationships.

Lesson 3: Openness and Accountability

Openness is crucial for high-performing teams. Team members are encouraged to express their viewpoints, resolve conflicts constructively, and provide fact-based feedback. Horizontal accountability is key, where peer-to-peer and peer-to-leader accountability are equally emphasized. Leaders in such teams set the example by being open to accountability from their team members, fostering a culture of mutual respect and transparency.

Lesson 4: Continuous Improvement

Great teams continually raise the performance bar. Leaders consider both the level of engagement and the skills of their team members, adjusting their approach to provide appropriate support and guidance. This tailored approach ensures that team members at different levels of engagement and skill are effectively managed and motivated to improve continuously.

Lesson 5: Characteristics of High-Performing Team Members

Members of high-performing teams exhibit several key behaviors:

• Thinking Like Directors: They focus on overarching company goals and the health of the organization as a whole, not just their specific area.
• Putting the Team First: They prioritize team success over individual or functional success, contributing their expertise across functions.
• Embracing Accountability: They tackle problems head-on and find solutions independently, confident in their authority to act.
• Leadership Skills: Every member, regardless of their level, must have leadership skills to influence and drive team performance.

Lesson 6: The Alignment Process

Creating a high-performing team involves a clear and committed direction, focus on business deliverables, defined roles and responsibilities, established decision-making protocols, and open, silo-free relationships. This process, which Guttman calls “getting aligned,” includes:

• Making the Diagnosis: The leader initiates the process by addressing business challenges and assessing the team’s readiness to respond.
• Gaining Agreement: Team members work together to identify strengths, weaknesses, and necessary behavioral changes, forming a concrete action plan for progress.

Maintaining High Performance

High-performing teams must continually recalibrate to maintain their effectiveness in the face of changes such as new leadership, team restructuring, or economic shifts. By adhering to Guttman’s principles of horizontal structures, alignment, transparency, accountability, and self-sacrifice, teams can navigate these challenges and sustain high performance.

Conclusion

Building great business teams is not an overnight endeavor; it requires strategic effort, continuous improvement, and a commitment to fostering a culture of excellence. Howard M. Guttman’s principles provide a clear roadmap for transforming good teams into high-performing ones. By adopting a horizontal leadership structure, establishing clear protocols, fostering openness and accountability, and committing to continuous improvement, organizations can unlock their true potential. The alignment process is crucial for ensuring that all team members are on the same page, working towards common goals, and equipped to tackle challenges head-on.

Moreover, the journey to high performance is ongoing. Organizations must remain flexible and willing to recalibrate in response to changes in leadership, team composition, and external factors. By adhering to Guttman’s principles and regularly revisiting these strategies, teams can sustain high performance and navigate the complexities of the business landscape. Ultimately, great teams are the backbone of great organizations, and with the right approach, any team can achieve greatness. Embrace these insights, and embark on the path to building a high-performing team that drives your organization to new heights.

Actionable Takeaways from “Building Great Business Teams: Insights from Howard M. Guttman”

1. Adopt a Horizontal Leadership Structure
   • Implement Flat Hierarchies: Shift from traditional hierarchical models to flat, horizontal structures where team members are empowered to make decisions and held accountable for outcomes.
   • Empower Team Members: Encourage team members to take on leadership roles and make decisions that contribute to the overall success of the organization.
2. Establish Clear Protocols and Alignment
   • Develop Decision-Making Protocols: Create and adhere to clear decision-making processes that specify who makes decisions, how they are made, and what each team member is accountable for.
   • Ensure Strategic Alignment: Align team activities with a shared and understood business strategy, ensuring that everyone is working towards common goals.
3. Foster a Culture of Openness and Accountability
   • Promote Open Communication: Encourage team members to express their viewpoints, resolve conflicts constructively, and provide fact-based feedback.
   • Implement Horizontal Accountability: Emphasize peer-to-peer and peer-to-leader accountability to create a culture of mutual respect and transparency.
4. Commit to Continuous Improvement
   • Regularly Assess Engagement and Skills: Continuously evaluate the engagement levels and skills of team members, providing tailored support and guidance to foster improvement.
   • Encourage Skill Development: Offer opportunities for team members to enhance their skills and knowledge, promoting a culture of continuous learning.
5. Cultivate High-Performing Team Behaviors
   • Think Like Directors: Encourage team members to focus on overarching company goals and the health of the organization, not just their specific area.
   • Prioritize Team Success: Promote a team-first mentality, where team members contribute their expertise across functions and support each other.
   • Embrace Accountability: Foster a culture where team members tackle problems head-on, find solutions independently, and are confident in their authority to act.
6. Implement the Alignment Process
   • Diagnose and Address Challenges: Regularly assess the team’s readiness to respond to business challenges and identify areas for improvement.
   • Create Action Plans: Develop concrete action plans that address organizational barriers, skill gaps, and individual and team coaching needs.
7. Adapt and Recalibrate
   • Stay Flexible: Recognize that high-performing teams must adapt to changes such as new leadership, team restructuring, or economic shifts.
   • Revisit Principles: Periodically revisit Guttman’s principles of horizontal structures, alignment, transparency, accountability, and self-sacrifice to ensure sustained high performance.

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