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by Adi Ignatius, Editor at Large |
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by Adi Ignatius, Editor at Large |
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Is Your Executive Team Really a Team?
- How to Spark—and Steer—Disruptive Innovation
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Art Credit: HBR Staff; bernie_photo/Alona Horkova/David Madison/Getty Images |
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Is Your Executive Team Really a Team? |
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Does your C-suite truly function as a team? If not, your company is probably underperforming.
That’s the conclusion of some new research from Gartner that we’re publishing in the upcoming November/December issue of the magazine. We wanted to share it early with HBR Executive subscribers.
Highly effective executive teams tend to produce outsized results. These days, companies are dealing with a complex and rapidly evolving business environment that requires cross-enterprise thinking. Collaboration is especially critical.
But few executive teams seem to be meeting the challenge. C-suite leaders still tend to focus excessively on their functional roles, and not enough on enterprise-wide leadership, according to the Gartner research.
To be sure, that functional expertise wins leaders a seat at the executive table. But once they’re there, they need to rebalance their responsibilities to collectively address potentially destabilizing challenges like AI. Otherwise, companies are likely to underperform and, in the direst scenarios, slide toward irrelevance.
“You can’t step into an executive title and continue to play mostly a functional role,” says Rachel Juley, a director at Gartner and the lead author of the study, which was based on surveys of 500 global CXOs. “There are high-stakes consequences for organizations that don’t get this right.”
Only 31% of executives in Gartner’s study identified the C-suite as their primary team. Most CMOs primarily identified instead with their marketing team; most CFOs with the finance group; and so on. That means most executive teams are operating essentially as a group of independent leaders rather than as a unified team.
Gartner believes that this can dramatically limit an organization’s ability to identify and execute on the transformational changes that need to take place.
But it’s possible to move the needle. Here's Juley’s advice on the steps you can take: |
- Prioritize collaboration. In assembling the executive team, CEOs and CHROs need to emphasize collaborative skills—and not just reward individual accomplishment. This can start in the hiring process.
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Model the behavior. While the CHRO is likely to drive efforts to build the C-suite, it’s ultimately up to the CEO to make them work together. CEOs need to prioritize collaborative problem-solving and make sure the full team is engaged in the work.
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Reward shared goals. The C-suite needs a mutual sense of accountability, with significant enterprise goals and OKRs that give the entire group a shared sense of purpose. Individual executives should be evaluated in large part on their abilities to deliver at the enterprise level, with less emphasis on how they perform at the functional level.
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Upskill the team. CHROs should take steps to train their CXOs to become more collaborative. Options range from encouraging them to network more (which can help build a collaborative mindset) to peer and executive coaching.
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Present as one. Board presentations can help sharpen the team focus. The C-suite should minimize functional report-outs in favor of collective presentations on how they’re tackling their biggest challenges.
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Much of this goes against our natural instincts. We’re comfortable focusing on our areas of expertise and on the day-to-day work that drives the core business. But transformational change requires a different form of engagement, and the executive team needs to make that its top priority. |
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| How to Spark—and Steer—Disruptive Innovation |
Disruption doesn’t have to be something that happens to your business—it’s something any leader can prepare for and shape.
That’s according to Scott D. Anthony, clinical professor of strategy at Dartmouth’s Tuck School of Business, and author of Epic Disruptions: 11 Innovations That Shaped Our Modern World.
In our latest HBR Executive Masterclass, Anthony draws on decades of research and practice to identify five learnable behaviors that great innovators share—skills that anyone can build through conscious practice. He also offers real-world examples of how these behaviors lead to transformative innovation.
In a world where every industry faces constant reinvention, Anthony’s message is: You can’t sit on the sidelines and wait for clarity. |
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