Maximizing Potential: How Team-Building Activities Can Impact Your Business' Bottom-Line While it's easy to dismiss team-building activities as frivolous or unnecessary, they can yield good results, having a strong impact on your team's effectiveness and your company's financial performance.
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The idea of a team-building day excites some people, and sends shivers of fear through others. But what exactly drives leadership to organize these types of initiatives?
My view is that not enough thought goes into these endeavors—and I'm not just talking about the kinds of activities selected. Before we can get to all of that, there are two questions to address: first, why do you want a team-building day in the first place? Second, what isn't working in your organization that makes you feel team-building exercises are required? These must be considered before you book that bowling alley, guest speaker or camping trip.
In this article, I'll discuss how to better define your teams, how to link the types of team activities you select with the business goals you're trying to reach, and what pitfalls you need to avoid in the process. So, let's jump in.
ARE YOU SURE YOU KNOW YOUR TEAM?
The first problem we face is defining a team. It's probably fairly clear to any manager who their team is, who reports to them, and so on. But on a daily basis, we are all part of multiple teams, many of them informal in structure.
A 2019 study found that for employees working in more than one team, 75% of these teams didn't feature in any kind of directory or organizational chart. In other words, we don't always know exactly who is working with who on what project, given the often informal nature and structure of a typical team. This has implications for any team-building initiative.
So, before any type of team-building exercise is launched, it's important to do some research, perhaps even put out an internal questionnaire to gain a greater sense of who your employees are working with on a daily basis. Once you understand the multiple teams each person is part of, you can think more clearly about the problems you need to address within those groups.
Related: Why I Took My Dubai-Based Team To Work Out Of Zanzibar For Two Weeks
WHAT PROBLEMS ARE YOU TRYING TO SOLVE?
How do good teams function? What are you trying to achieve through team-building? According to the Harvard Business Review, five key factors are associated with high-performing teams:
- Collaboration is never left to chance. In a great team, collaboration is intentionally fostered and prioritized. Team members understand that working together isn't just about completing tasks—it's about pooling diverse skills and perspectives to create better outcomes. Leaders set the tone by actively encouraging cross-functional teamwork, and creating opportunities for collaboration through structured meetings, shared goals, and clear communication channels.
- Everyone is kept in the loop. Effective communication is a cornerstone of a great team. Keeping everyone informed ensures that all members are aligned with the team's goals, progress, and any challenges that arise. This transparency helps prevent misunderstandings, and allows team members to contribute meaningfully, knowing they have the latest information. Whether through regular updates, team meetings, or digital platforms, a great team ensures that no one is left out of the loop.
- Credit is shared. In a thriving team, achievements are celebrated collectively. The focus is on the team's success rather than individual accolades. When credit is shared, it boosts morale, and reinforces the idea that everyone's contributions, big or small, are valued. This approach helps cultivate a positive environment where members feel appreciated and motivated to continue giving their best. Leaders in great teams are particularly mindful of recognizing and acknowledging the efforts of all members, ensuring that success is seen as a group effort.
- It's okay to disagree—and it can make the team better. Great teams embrace healthy debate, and understand that disagreement can lead to stronger outcomes. When team members feel safe to voice differing opinions, it opens the door to creative problem-solving and innovation. This culture of openness allows the team to explore all angles of an issue, leading to well-rounded decisions. The key is maintaining respect, and focusing on the idea, rather than personal conflict.
- Tension is proactively addressed. In any team, tension and conflict are inevitable, but great teams don't let them fester. Instead, they address issues head-on in a timely and constructive manner. This proactive approach prevents small problems from escalating, and ensures that the team remains cohesive and focused on its goals. Leaders play a crucial role in this process by creating an environment where concerns can be raised without fear of retribution.
Now, if the aforementioned qualities are what we're aiming for, the question now becomes all about what kind of team-building initiatives might help achieve them.
Related: Building High-Performance Teams For Your Business: The How-To
GETTING TEAM-BUILDING WRONG—AND HOW TO GET IT RIGHT
Back in 2011, leaders at the Mars Corporation were looking for ways to increase the effectiveness of their teams. And they discovered that pretty much everything they thought about team-building was wrong.
What they found was that really good collaboration among teams does not start with relationships and trust (two elements most team-building initiatives seek to strengthen). Instead, it starts with individual motivation. To put it another way, if you understand what powers the individual, you'll be able to harness what powers the team.
It's a pretty radical take on established wisdom. In the end, Mars came to the conclusion they needed to ask two tough questions about collaboration:
- Why is this collaboration so important to achieving business goals?
- What specific tasks need collaboration to deliver on those goals?
Many organizations fall into the trap of organizing superficial team-building activities that often fail to bring any significant impact on team cohesion, or the company's financial health. Instead, the focus should be on activities that are both meaningful and results-driven, directly influencing both the top and bottom lines.
It's difficult to quantify the exact results of team-building initiatives, but what we do know is that engaged employees are more effective and more loyal. A Gallup report on employee engagement shows that companies with a highly engaged workforce have 21% higher profitability. So, if your team-building is driving engagement successfully, it will affect your bottom line.
Let's look at a few different approaches:
- Goal-oriented workshops. These workshops focus on aligning the team's objectives with the broader goals of the organization. By clearly defining what success looks like for the team, these sessions can help to ensure that everyone is working towards the same end.
- Problem-solving challenges. Activities that challenge teams to solve real-world problems can be particularly effective. They encourage collaboration and help develop critical thinking and resilience—invaluable qualities in the workplace.
- Role clarification exercises. Many teams struggle because members are unclear about their roles or responsibilities. Exercises that clarify these can help to reduce confusion and improve overall efficiency.
- Feedback and reflection sessions. Providing structured opportunities for feedback and reflection can lead to continuous improvement. Teams that regularly engage in these sessions are more likely to adapt and refine their processes, leading to sustained performance gains.
While it's easy to dismiss team-building activities as frivolous or unnecessary, if careful planning and research are done ahead of time, they can yield good results, having a strong impact on your team's effectiveness and your company's financial performance.
By focusing on activities that address real organizational challenges and align with your business objectives, you can build a stronger, more cohesive team that not only works well together, but also drives your company towards greater success.
Related: The Talent Retention Tug-Of-War: Strategic Imperatives For HR Leaders In The MENA Region
