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CHAPTER 10: LEADING TEAMS 299
as one giant computer. That way, Forecaster could grab the computing power
it needed from anywhere in the company rather than relying on dedicated servers
that would bog down at busy times. As a result, a broker could get recommen-
dations from Forecaster in 20 seconds that might have taken two days in the
past. The grid idea has since been applied to solve similar problems in other
commercial enterprises. 13

Evolution to Self-Directed Teams Cross-functional teams may gradually
evolve into self-directed teams, which represent a fundamental change in how
work is organized. Exhibit 10.3 illustrates the evolution of teams and team lead-
ership. The functional team represents grouping individuals by common skill and
activity within the traditional structure. Leadership is based on the vertical hier-
archy. In cross-functional teams, members have more freedom from the hierarchy,
but the team typically is still leader-centered and leader-directed. The leader is
most often assigned by the organization and is usually a supervisor
or manager from one of the departments represented on the team. Action Memo
Leaders do, however, have to give up some of their control and As a leader, you can use a self-directed
power at this stage in order for the team to function effectively. team when members are capable of
In the next stage of evolution, team members work together working without active supervision. Give
without the direction of managers, supervisors, or assigned team the team access to the money, equipment,
leaders. Self-directed teams are member- rather than leader-centered supplies, and information needed to
14
and directed. Hundreds of companies, including Consolidated Die- perform its project or task, and empower
sel, Industrial Light and Magic, the Mayo Clinic, and Edy’s Grand Ice the team with decision-making authority.
Cream, are using self-directed teams, which can enable workers to feel

challenged, find their work meaningful, and develop a strong sense of
identity with the organization. 15
Self-directed teams typically consist of 5 to 20 members who rotate jobs to Self-directed teams
Self-directed teams
teams made up of members who
produce an entire product or service or at least one complete aspect or portion of teams made up of members who
work with minimum supervision
a product or service (for example, engine assembly or insurance claims process- work with minimum supervision
and rotate jobs to produce a
and rotate jobs to produce a
ing). Self-directed teams often are long-term or permanent in nature, although complete product or service
16
complete product or service
many of today’s fast-moving companies also use temporary self-directed teams
that come together to work on a specifi c project and then disband when their
work is done. Self-directed teams typically include three elements:
1. The team includes workers with varied skills and functions, and the combined
skills are sufficient to perform a major organizational task, thereby eliminating
barriers among departments and enabling excellent coordination.
2. The team is given access to resources such as information, financial
resources, equipment, machinery, and supplies needed to perform the
complete task.
3. The team is empowered with decision-making authority, which means that
members have the freedom to select new members, solve problems, spend
money, monitor results, and plan for the future.
In self-directed teams, members take over duties such as scheduling work
or vacations, ordering materials, and evaluating performance. Teams work with
minimum supervision, and members are jointly responsible for confl ict resolution
and decision making. Many self-directed teams elect one of their own to serve as
team leader, and the leader may change each year. Some teams function without
a designated leader, so anyone may play a leadership role depending on the situ-
ation. In either case, equality and empowerment are key values in organizations
based on self-directed teams.