Top 9 Benefits of Using Self-Managed Teams

The idea of self-managed teams tends to scare people. They associate the term with chaotic days, fat invoices, and poor output. But that’s their fear talking. In all reality, self-managed teams are a blessing for organizations that can use them and do so properly. The problem is that that’s a rare group. 

The most glaring features of self-managed teams are the independent working style and a blatant lack of “managers.” And for some teams, those differences simply will not work. It doesn’t mean anything is wrong with this system or your team—some things don’t fit, and that’s okay. 

But if you’ve seen this trend pop up and wondered if maybe, just maybe, self-managed teams could be your new thing, let’s talk about why that might be a great idea. In this post, we will cover

First, let us clarify. 

What is a self-managed team?

Unlike your average team, self-managed teams don’t have a central figure that keeps everyone accountable, engaged, and motivated. Instead, the team does all that themselves. Rather than be under the authority of one leader, it’s more of a round-table situation. Each person on the team is fully autonomous, meaning they are in complete control of when they work, how they work, and what tasks they do. 

We know that even reading that made some of you sweat, but let us explain. 

The team, as a whole, is handed objectives. For example, an executive or member of upper management might explain to a team that they need a project completed in 6 months and lay out what criteria that project needs to hit. From there, the team will decide where they will go, how they’ll get there, and who will do what. They might even discuss who should head each aspect of the project as it fits their specialty. 

That manager or executive who relayed that message will understand that they hired people with specialties to do their job and leave them to do just that. Each member will then be able to do their job and contribute to the overarching goal. 

It’s very different from usual working styles, but for many, it can change the game. 

Using Self-Managed Teams

Why They Work, Benefits of 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. 

Remember, before moving into this way of working, you’ll need to have both leadership and your team members’ buy-in. You’ll also have to allow enough time for the dust to settle. 

Some of the top benefits of self-managed teams include:

1. Breaking The Mold

By relaxing strict policies and allowing people to decide their own ways of working, you allow them to break the mold. They don’t have to do things the old way. You won’t hear anyone say, “That’s how we’ve always done it.” Nope. No more. 

Over time, you’ll notice people stepping out of their comfort zones and testing new ways, ideas, and more. Some of the new behaviors you’ll see include

  • Development of new or underdeveloped skills
  • Collaboration across niches and specializations
  • Test-driving of new skills in an environment where they can do so
  • Improved problem-solving, communication, and organizational skills

When your team has a set structure and hierarchy, there are fewer opportunities for learning, usually due to the rigidity of that structure—not with this. When you use self-managed teams, people can rotate through different roles, develop new skills that may have interested them, and adjust their workload accordingly. Also, self-managed teams are known for skill- and information-sharing qualities. 

2. More Agility 

Companies are moving faster than ever toward new ideas, discoveries, and products. Blink, and you miss it. With self-managed teams, there are fewer layers of red tape. The team can pivot as fast as the team decides to. Also, decision-making is improved. Why?

  • Multiple perspectives are shared and considered at all times
  • No one is overruled (as is often the case with normal team structures)
  • Everyone is encouraged to be more creative and discuss in a round-table setting
  • Everyone is encouraged to have a say
  • Guidance and consultation from outside groups are always available if needed

The market, no matter who you are, is a complicated place. Self-managed teams are better able to keep up and respond to that landscape ever-changing. 

3. Leadership Trends

Because management is up to everyone, there is more room for people to step up. They kind of have to, which means everyone gains new leadership skills—even if it’s just through leading little projects and initiatives. In this working structure, people can give input, collaborate, and contribute in new ways. 

4. Experts In Their Own Right

More than ever, people want to become experts—much more than they want to be managers. If they have preferences or specialties, that aspect of each person grows. Three attributes make people self-determined, which we discuss more later, such as

  1. Autonomy
  2. Competence
  3. Relatedness

It feels good to gain a deeper understanding of a subject you enjoy. It feels even better to have colleagues consider you a resource on that topic. It improves your sense of competence and confidence dramatically. On self-managed teams, that feeling of competence is fostered daily.

5. More Motivation

Again, we have to refer to the topic of self-determination. When people feel more ownership of their work, effort, and time, they are more motivated overall. They want to improve their contributions because they are an actual reflection of their effort and of them as professionals. On top of that, people get to lean into their interests. Self-managed team members are also much more engaged in their work for all the same reasons. 

6. More Joy

It’s been found that working independently improves creativity, job satisfaction, production, trust of colleagues, and work-life balance. Doesn’t that sound nice? Honestly, who wouldn’t want to work on a team like that or one that has at least some of those features?

Using Self-Managed Teams

7. Less Turn Over

Happy team members who feel heard, seen, and valued will not leave. 

8. Greater Efficiency 

In the typical structure, goals are communicated to the manager from the executive and leadership level, the manager then relays those goals to the team to be executed. The manager will also dictate how the work is done, when it’s to be completed, and the systems they’ll use to do it. 

It’s easy to lose details in that process. So, when you lack the middleman and allow communication to be direct and open, the outcome will be more aligned with the project’s goals. It also allows for a more natural type of collaboration between the higher levels of management (whose focus is always on organizational goals) and team members (who are focused on execution). 

9. It Costs Less

Let’s not beat around the bush. Management costs money, usually a lot of it. By reducing dependency on these positions, which many don’t enjoy, you can distribute that cost across your team, which will draw even more talent. 

Autonomy vs. Flexibility, A Benefit of Self-Managed Teams

As you’ve been reading this, you might think we’re just blabbing about adding more flexibility to your workplace, and that’s not quite the point. We’d like to direct your thoughts away from the word “flexibility” and point you toward this lovely thing called “autonomy.”

In this new age work remote work and virtual spaces, everyone thinks that adding hybrid working principles to your organization and teams will make everyone happy. You have to take it further than that. 

After COVID, many companies replaced their work-from-home policies and basically shoved everyone back into the office. They decided that playtime was over and that it was time to get back to reality. They ignored the fact that people really liked having options. Instead of giving them the freedom and support to choose, they chose for them and lost a lot of talent as a result. (The company that famously did this is named after a fruit.)

People who had worked their whole lives to have a shot at this prestigious company felt ignored, looked around at other (more autonomous) options, and left. And whether or not that company will admit it, that’s a huge loss. Working in the office has clear advantages. Working from home also has clear advantages. Why not mix them? Why die on that hill?

In 1985, psychologists Edward Ryan and Edward Deci developed the self-determination theory. They found that—instead of just rewards—the central factors in motivation and engagement came down to three words: autonomy, competence, and relatedness. In other words, people need to feel free to choose, capable of doing a good job, and a part of something to achieve psychological growth. 

So, as great as flexibility is, the biggest benefit of self-managed teams is not that but flexibility through autonomy.

Using Self-Managed Teams

How To Encourage Autonomy In Your Team

You might not be a fan of self-managed teams, even now, and that’s fine. But it’s hard to argue that instilling more autonomy is bad. So, how do you do it? How do you encourage your team members to be more autonomous?

1. Cultivate Trust

It’s very common for managers to have a deep distrust in employees, deserved or not. You know what we’re talking about. We recommend that you don’t do that. If your team is capable, let them know. Allow them to feel capable of doing their jobs, and if that alone is a struggle for you, then READ THIS

Basically, you have to trust people to do their jobs. If they are capable, perform their tasks, and can be given responsibility, then back off. Show them that you know they are capable. You can lead by example and encourage others to do the same. You’ll quickly notice better productivity because people don’t unnecessarily double-check work and other’s contributions. 

2. Fix Issues & Establish Principles

You can have flawed processes and systems that people are trained to deal with. You can also have strict work policies that have been on the books since 1970. But ultimately, both of those will cost you. First, making people deal instead of improving systems, processes, and procedures whenever possible will make good people leave. All of those things should support your team, not get in their way. 

Second, strict “when” and “where” working policies aren’t very necessary anymore, especially if your work can be remote in any capacity. And while you might not be ready to peel the top of your “in-office” policies, you can start discussing the idea and spreading principles. 

In other words, ask your team how they feel about other ways of working. Discuss the value of working in one location at the same time and working in different locations at different times. Over time you can begin to encourage people to do more of what works best for them. 

3. Communicate Often 

The self-determination theory is balanced on autonomy, competence, and relatedness. Using clear, open, and regular communication, you can let people know that they are doing a good job and create the sense of belonging that comes from working together toward a common goal. 

If your organization works virtually most of the time, we recommend you try to meet. Get together when you can and make it an enjoyable experience. 

4. Bring On The RIGHT People

Of course, none of this can be said without mentioning that not all types of people are made to work in an autonomous environment. If you have an honest relationship with your team members, you can ask if that is something they feel comfortable with. We recommend that you make it clear that you aren’t going to force them into something that doesn’t work. 

Most of the time, those who are best suited to this type of work will reveal themselves. They’ll take the initiative, show that they are capable of self-management, and collaborate with others easily. 

5. Back Off, Completely

To be autonomous is to choose how you get things done. So, you have to step back and let people choose for themselves. You also have to allow them time to prove themselves by taking another metaphorical step back and not looking over their shoulder. This helps support the idea of trust. 

6. Provide Tools

Another way to support more autonomy in the workplace is to ensure your team has the tools they need to succeed. You, as their manager, help them gain access and maybe give direction if necessary, and then back away. Let them work. Most will be pleasantly surprised at how their team members perform under these conditions. 

Test Out The Benefits of Self-Managed Teams 

So many of you reading this will have experienced unnecessarily strict working conditions. You’ll keenly remember the way that environment felt stuffy and limiting. You knew that no one trusted each other. Blame was wound into every interaction, and freedom was nothing but a pipe dream. 

And some might be willing to handle that for the sake of productivity, but most of the workforce is not—especially if they are skilled. In general, skilled professionals aren’t worried about making a career. They are more concerned with having independence, control, and autonomy in their work lives. With the global nature of competition these days, you need to be serving some level of flexibility to enjoy the resulting agility.

Self-managed teams have a lot of benefits, but the biggest deal is the freedom. We are not encouraging you to pay people who don’t deliver, but we are saying that continually denying people the independence they crave will reduce your organization’s performance. 

Jump on the trend and test out giving teams the liberty of choice over things like

  • What hours of the day they work
  • When deadlines should be, based on organizational needs
  • Ordering of their tasks
  • The software they use to get the job done

Give freedom (and self-managed teams) a try. We promise you’ll like it. 
If you’d like to learn more about self-managed teams and how they work, you can read THIS.

Let New Ideas Find You

Here at A.McBeth, Inc., we know it’s better to open our thinking caps, receive new ideas, and use them occasionally than act like we know everything. Project management is pretty uncomfortable with that attitude, so we are offering up new (and old) ideas all month long, so sign up to be notified the next time one pops up. You won’t want to miss it!

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Anthony McEvoy
Anthony McEvoy
Articles: 44