Self-managed teams are a new phenomenon that has overtaken the modern workplace. Gone are the days of team management being synonymous with peaking over employees’ shoulders and making every practical decision for them. People want autonomy more than ever, especially skilled or specialized team members and traditional management techniques stifle that.
So, companies are opening up to the idea of a new team structure and management style that is less about Managing and more about Leading—very different things.
In this post, we cover
- What is a self-managed team?
- The common characteristics of self-managed teams
- The difference between self-managed teams and manager-managed teams
- The daily functioning of self-managed teams
- 3 Types of self-managed teams
- Cons of using self-managed teams
- Benefits of using self-managed teams
- How to implement these teams in your organization
- Tips for introducing self-managed teams
- How to convert unwilling managers into supporters
- Why traditional management might be on its last leg
Feel free to use the linked bullet points to skip to the sections you are most curious about.
What is a Self-Managed Team?
Many of us can’t picture teams that don’t have a central, leading figure that instills accountability, direction, and support to the other team members. In self-managed teams, the team does all of that itself.
Put another way, self-managed teams aren’t under the direction of a single authority figure. Instead, participants are fully autonomous over their actions, processes, and outcomes. The team will be handed objectives, boundaries, and processes regarding conflict resolution and reporting by leadership, but that’s it.
They’ll work together or independently as necessary, but, again, there will be no one standing above them ordering which way to move and when. Executives over these types of teams understand that they hired everyone to do a specific job and fulfill a specific role. The team should always have access to plenty of open communication channels to receive external guidance or assistance.
Self-managed teams are not a way to replace management, but rather, they are a new style of working, leading, and performing. It’s rarely successful without full support and buy-in.
Common Characteristics of Self-Managed Teams & Team Members
It’s not every team member that is going to fit this model. Some people need to be double- and triple-checked, which is perfectly fine. It simply means that they aren’t the right fit for a self-managed team. But who is?
Some of the most common characteristics of team members include
- Trusting of their own ability and that of their team members
- Willingness to be an independent part of the collective
- High self-awareness and emotional intelligence
- Capable communicators
When it comes to self-managed team members, it’s important that they can fully participate in the team and balance their roles removed from the group. No one will be checking up on them like in normal management settings, which means they need to be able to rise up all on their own.
The team, on the other hand, tends to hold features such as
- Goal-oriented
- Communicative internally and externally
- Clearly defined vision and expectations of each team member
- Internally accountable (everyone has specific weight to pull)
- Team performance is one of the most important metrics
Self-managed teams are not an example of responsibility dilution or the buck getting passed so often that nothing is ever decided or done. While it’s a reasonable fear, self-managed teams—when handled correctly—are far more accountable. With the right team, blame doesn’t take root. Different from traditional team management techniques, problems are collectively evaluated and addressed based on the skills and experience needed.
Self-Managed Team vs. Manager-Managed Team
Your definition of a manager-managed team is probably based on your personal experience, but when we use that term, we generally mean the following. Depending on the size of the team, there is likely one higher-up who is responsible for most major and minor decisions, supporting the team’s progress toward company-related objectives and allotment of resources.
Sometimes, a manager-managed team can include a conflict-resolution system that ends in punishment for one or more parties. Communication style, frequency, and depth are up to the discretion of the person leading the team. Then, if things go wrong or right, the executive leadership team lays the fault or praise with the manager. Too often, having a “good” manager is rare. There simply isn’t a lot of training associated with such positions, and if your tasks are getting done, executives might not bother looking closer at the inner workings of a team.
On a self-managed team, none of that is the case. First, they need to be vetted differently than normal team members or managers because of all of the boxes they need to check. They can’t just be able to do their job or get people to do it. They need to be able to balance the team objectives with their own workload and trust others to do the same.
Self-managed teams might have leaders, but only on specific tasks and initiatives based on skill and need. For example, if you have a project with heavy civil engineering considerations, you’d let your resident civil engineer oversee it.
Also, due to the team-based performance metrics, there is no way for them to be successful without being highly communicative, collaborative, and accountable. On the other hand, in traditional teams, where performance is an individual thing, people might naturally split off and isolate themselves. This is especially true in competitive environments.
How Self-Managed Teams Function Day-To-Day
There are plenty of industries where self-managed teams simply don’t fit, but you might be surprised at just how many it does fit. Typically, a self-managed team will start the day however it pleases them. If their work is highly collaborative, they might feel the need to meet daily to check in on progress, get updates from colleagues, and discuss potential solutions for any issues that arise. (Similar to scrum project management.) A meeting facilitator is selected from inside the team, not externally.
It’s not unusual for construction, development, public relations, or any type of team to briefly discuss what lay ahead—specifically for fast-moving industries and projects. But you’ll likely see self-managed team principles used in collaborative, creative, or remote work environments, which can be born from either an intentional transition or out of necessity.
Self-managed teams perform best when they are smaller (under ten members) with clearly defined roles and are given as much flexibility as needed.
3 Types of Alternatives to Traditional Team Management
In an age where more and more workforce members are interested in becoming experts rather than moving up the corporate ladder, it’s not a shock to learn that companies are rethinking their usual hierarchical structures. And there are a lot of alternatives.
While each can be self-managed, they can easily be run traditionally.
Temporary or Project-Based Teams
These are often cross-functional groups (a collection of specialists from different departments) who work together on specific projects, regularly led by a project manager. They are evaluated based on project outcome, work together for a specific time, and part ways after closing. The concept of “scope” is extremely important within these teams, as they must remain within the timeframe and budget.
Virtual
Spread over states, countries, and continents, virtual teams can be cross-functional or operational. Ultimately, these teams are marked solely by how they work in different places and have little accidental communication, which is a great source of innovation and connection.
Operational Teams
Operational teams are rarely cross-functional, as each person is dedicated to a specific role in no designated period of time. The team members work in a similar fashion, using similar processes, skills, etc., to help one overarching goal. The success of these teams depends on output and not necessarily the outcome.
The Problem With Self-Managed Teams
No system is perfect. We wish that weren’t true, but it is. As useful as self-managed teams can be, they aren’t going to ensure success. Like any system, there is quite a bit that can go wrong.
Some of the most common cons of using self-managed teams include
- Long set-up time, as some team members, leaders, and executives will have challenges transitioning
- Curating the right team can be a challenge as your values and indications of candidacy change
- Proper training is needed to help people learn how to self-govern
- Low productivity depending on company needs and performance metrics
- Disconnection from organizational goals can happen
- Toxic team dynamics can flourish with a lack of supervision (i.e., unofficial leaders)
- Unequal pay considerations when the team is forced to negotiate internally
The success of an organization doesn’t come from a magical technique or quick fix but from hard work and good practices every day. This might not be the ideal system for your organization, especially if any of the above cons could become major issues.
Benefits of Using Self-Managed Teams
We are not saying that by simply deciding you are a self-managed team, you’ll see these results. But we are saying that once things are up and running, you’ll at least see a handful of the following benefits.
- Team members will develop new skills due to extensive collaboration.
- They can test-drive those new skills in a safe environment.
- The organization stays more relevant.
- Everyone gains new leadership skills.
- Expertise grows like wildfire.
- Decision-making processes happen faster and improve.
- Motivation improves dramatically.
- So does engagement.
- They are more efficient.
- The team becomes more adaptive.
- You don’t have to pay for management staff.
When you hand people the reigns, they could crash and burn. But it’s more than likely that they will relish their new freedom and surprise you. In this day and age, people want to contribute, prove themselves, and be active participants in their careers. Self-managed teams can be a great way to provide that.
How To Implement Self-Managed Teams In Your Organization, 6 Steps
Talking about implementing self-managed teams is one thing, but actually doing it is quite another. Great things take time to build, and rushing this process doesn’t help anyone. Below, we’ve outlined six easy steps for starting your self-managed team from scratch.
1. Find Your People
We recommend you start this whole process by doing nothing. Don’t tell anyone your plans or what you think is coming just yet. Sit back and watch them work. Look at how your team members carry themselves through wins, losses, conflict, peace, etc. Which ones take initiative, learn from mistakes, guide others when needed, and support their colleagues?
Specifically, look for characteristics such as
- Drive
- Effective decision-making
- Trust
- Open to Collaboration
- Self-awareness
- Good communication skills
Of course, it’s unlikely that you’ll find many people with each of these features as intrinsic parts of their personality, but you get the point. Remember, too, that most of these traits can be improved if the team member is willing to try. A willing attitude might be the only one you need to identify. It depends on what you value in self-managed team members.
2. Logistics, Set Up, & Goal Sharing
Once you identify who you’d like to work with, move into the “how.”
Are you going to separate this team from the original one? Are you going to create a new space? How would you like conflicts to be handled? What reporting and task management systems will you use? How is pay determined? If it’s commission-based, will changing team structure and performance indicators negatively impact the individuals on the team?
We recommend you consider the following before bringing the idea up to your team members.
- The Over-Arching Goal
- A Conflict-Resolution Process
- Any Reporting Processes
- The Payment and Compensation Methods
- Choosing a Remote, Hybrid, or Colocation Setup
After making some key decisions (or closing in on some options), bring in the team and ask them what they prefer for each category. Remember, the whole purpose of self-managed teams is that they will handle most things themselves. So, it’s important that they feel comfortable and able to do that very thing.
Finally, explain the goal. Make the desired destination as clear as possible. If you are a game development company, explain which part of the game you want to complete and the deadline you are most comfortable with. How you handle this stage will depend on the type of team you have (cross-function or operational) and the nature of your organization.
3. Provide Training & Team Building
When you move out from underneath traditional management to “doing your own thing” on a self-managed team, the transition can be bumpy. So, providing technical training as well as training for independent styles of working can be really helpful.
You might look into different techniques for each of the following.
- Time management
- Task management
- Creating their own structures
Team building can also be helpful because it develops connections and understanding outside of the usual forms of communication. We recommend using team-building exercises often, no matter what type of team you have.
4. Back Off
Subsequently, feel free to back the heck off. Hand everything you have over to the team, and let them figure it out for themselves. You’ve got to kick them out of the nest at some point. It might as well be when you’ve successfully given them all the information they’ll need to perform the task.
This doesn’t mean you ghost them; rather, you take a step back and only advise as needed.
5. Maintain Balance
With less supervision comes more responsibility on each person to step up and supervise themselves. That doesn’t always work out perfectly. Self-managed teams are often vulnerable to unequal treatment as not everyone can negotiate or advocate for themselves. Outside leadership must provide a space where everyone feels comfortable and empowered to do their best. They also need to ensure everyone is given the same opportunities.
6. Review Their Performance
Remember those reporting processes we discussed? Now is the time to use those. Bring the whole team in and evaluate the entire team’s performance. Blame has no place here. Self-managed teams don’t need constant feedback, but they do need to take cues from somewhere.
When you meet with the team, use your time with them to do the following.
- Celebrate success and point out wins
- Keep track of scope and help them remain inside of it
- Discuss any needed changes to processes
- Discuss any roadblocks to efficiency or functionality
Please remember that the whole project is the whole’s responsibility. You might have more experienced team members take slight leadership roles, but the buck does not stop with them. Leadership, or say, is given to the person with the most relevant experience or expertise. This isn’t a rank thing.
If the marketing project is in video format, the “leader” position is given to the team member with years of video production experience. If the app development project is centered around dating, the “leader” position goes to the person best suited to oversee that. And even then, it’s not your concern, but that of the team’s.
Tips For Introducing Self-Managed Teams
- Initially provide leadership – Place some semblance of the structure down at the very beginning of the process and slowly peal it back as you see fit. Have less and less direct involvement all the time.
- Use team building exercises – We aren’t kidding. These help a lot. Have people share memes at the beginning of meetings. Go out to dinner. Bring in food and hang out. Let the team get to know each other—it will only improve performance.
- Improve communication channels – Make it as easy as possible for everyone to tune into everyone else’s frequencies and workload. This is especially important for virtual and remote teams.
- Review performance regularly and as a team – Accountability is still required, but for a self-managed team, it comes from the team as they work and collaborate and from team performance reviews. Both are needed.
How To Convert Your Existing Managers
One of the biggest challenges to implementing self-managed teams is getting existing managers on board. Right off the bat, they tend to think A) they are getting fired, B) this is a less violent coup and C) that this will become a mess that they’ll have to clean up eventually.
It’s not uncommon for managers to struggle when they land the position. They might have been promoted because they were great at their job or because they had “manager-like” qualities, but at the end of the day, being a manager is hard. The workforce has seen less and less excitement around moving up through management because people simply like their jobs.
For most, moving up means losing a lot of the work, tasks, and responsibilities that they’ve come to excel at and enjoy. So, when you present the idea of them going “backward,” they will be confused. You might have to renegotiate their position, move them to a different team, or let them leave.
But, if they’re open to getting back to their roots and changing their position by taking away the management of others, we recommend you do the following.
1. Differentiate Between Managing and Leading
For so many in leadership, there might not be any distinction between these two ideas, but there is. In an article from the Harvard Business School covering a keynote presentation by HBS Professors Nancy Koehn and Joe Fuller, management is explained as “getting the confused, misguided, unmotivated, and misdirected to accomplish a common purpose on a regular, recurring basis.”
Leadership, on the other hand, was described as “the creation of positive, non-incremental change” that supports more practical goals and objectives.
Management has a habit of acting like a disciplinarian rather than a guide on the team’s path to success. They often display a clear lack of trust and confidence and can even struggle with complete delegation as a result.
Instead, management and executives need to clarify goals, trust their team to do the work, and constantly try to be transparent. It can be quite an adjustment for anyone who uses traditional management styles.
2. Embrace The Role Of External Leader
An external leader works directly with self-managed teams and not often. They might oversee multiple teams. Ultimately, this position is used as a liaison between the team and leadership/executives to help build strong relationships each way. They help the team clear up objectives and acquire resources, and after meeting with the team, they’ll report findings.
It’s not always a position that is utilized because it can be a complicated role that slips into a manager-like position if not treated carefully. They have to guide the team and avoid overstepping.
3. “It’s Responsibility Diffusion.”
For those who are fans of the top-down management styles, self-management is especially jarring. They think that if everyone becomes responsible, then no one will be. This is a hard line of thought to rewire, but not impossible.
As we discussed before, a crucial aspect of this conversion is that leadership and management have to be understood independently. Many teams across the workforce have attempted to throw out management positions by simply letting a team loose to see what happens. Their findings are almost always the same.
No leader is way better for the team than having a bad leader, but having a good leader yields better results than both. In the end, they find that leaders are needed, not managers. For example, in the military, many think the team structures are authoritarian, rigid, and traditional, with one higher-up watching over their lackeys. But anyone with relevant experience knows that that’s not very accurate.
In reality, every team member has a pivotal role that often aligns with their specialty to benefit the whole. They’re self-managed in that each participant has a hand in moving the whole closer to the goal. Leaders empower members, resolve conflicts, reduce dependencies, and keep the whole team accountable. If one fails, the team fails.
Self-managed teams highlight the importance of roles, autonomy, and accountability. Mistakes are more about finding ways to improve the system and processes that surround the team than punishing. By taking on this structure, you move away from a responsible working model to an accountable one.
Consider this. There is trash on the floor of the office. It’s just a few pieces. Do you want to work in an office that leaves that all day long for the janitors because it’s not their responsibility? Or do you want to work in an office where that is immediately picked up by whoever sees it first because it helps out everyone? Sure, it’s the janitor’s job, but everyone’s experience is better when others chip in.
4. From Competitive to Collaborative
When you present this concept to your managers, specifically those who enjoy the traditional working models, you must highlight the necessary shift from competitive to collaborative working methods. Let go of punishment completely—and blame. All of those create a tense work environment fraught with fear.
Fear obstructs the functioning of the pre-frontal cortex, an area of the brain responsible for executive function, decision-making, moderating social behaviors, abstract thinking, and idea sorting. Basically, a tense work environment means that people won’t give you their best effort, ideas, or output. They won’t be able to relax, making their brains work weird.
Traditional Management Is Dying
We are exaggerating… kind of. Something to keep in mind is that while traditional team management styles are extremely useful, it’s becoming increasingly clear that they depend on the setting. In industries that thrive on creativity and innovation, it’s definitely taken a back seat. The people who will change the trajectory of your company with their ideas don’t want to be micromanaged.
Also, being a manager is a difficult job—potentially harder than ever. It’s not like 50 years ago when leading a team simply meant leading a team. More and more managers are getting burnt out and hating their jobs.
This model can help with that.
Let New Ideas Find You
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