MIT Sloan Management Review

Leadership and Organizational Studies, Management of Technology and Innovation

 

How To Lead a Self-Managing Team

By Vanessa Urch Druskat and Jane V. Wheeler

July 15, 2004

Teams that are basically left to run themselves can be highly efficient and productive. To be successful, though, such autonomous groups require a specific type of external leadership.

To get work done, many companies organize employees into self-managing teams that are basically left to run themselves with some guidance from an external leader. In fact, comprehensive surveys report that 79% of companies in the Fortune 1,000 and 81% of manufacturing organizations currently deploy such “empowered,” “self-directed” or “autonomous” teams.1 Because of their widespread use, much research has been devoted to understanding how best to set up self-managing teams to maximize their productivity and effectiveness. Interestingly, though, relatively little attention has been paid to the leaders who must oversee such working groups.

At first, it seems contradictory: Why should a self-managing team require any leadership? After all, doesn’t the group manage itself? In actuality, though, self-managing teams require a specific kind of leadership. Even a team that is autonomous in terms of its activities and decision making must still continually receive direction from higher levels in the organization. And it also must report to that hierarchy through a person who is ultimately held accountable for the group’s performance. Many managers today are expected to fulfill the role of external leader, but most receive conflicting signals regarding how to go about it.2 Should they, for instance, be involved in their team’s decision-making process? If so, how should they participate without detracting from the group’s autonomy?

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