Don’t Let Old Norms Get in the Way of New Growth

Industrial companies face unique challenges that stem from the deeply rooted culture of the industry, legacy systems, and traditional expectations. These organizations often operate within environments that value consistency, reliability, and adherence to established norms. While this focus is essential for maintaining safety and operational integrity, it can inadvertently create resistance to change and hinder the development of high-performing teams.

The hierarchical structures, siloed departments, and reliance on long-standing processes often lead to communication gaps, lack of accountability, and difficulty in aligning leadership with operational teams. These companies must navigate complex supply chains, evolving customer demands, and technological disruptions, all while maintaining their foundational principles.

Creating high-performing teams in this industry takes deliberate and consistent effort, building trust, accountability, and commitment.

This blog explores common challenges and practical solutions for transforming leadership teams.

Building Trust: The Foundation of Team Dynamics

Trust is the bedrock of any successful team. Without trust, team members are hesitant to be vulnerable, share ideas, or admit mistakes. This lack of openness creates barriers to collaboration and innovation. Actions for increasing the level of trust among team members include:

• Encourage Vulnerability: Leadership must model transparency by admitting mistakes and seeking feedback. Start meetings with "vulnerability moments" where team members share challenges they’ve faced.

• Team-Building Activities: Host workshops focusing on personal and professional strengths to foster understanding. Tools like Gallup’s CliftonStrengths can help highlight individual contributions.

• Consistent Feedback Mechanisms: Introduce regular one-on-one check-ins where employees can discuss concerns in a safe space.

General Electric’s Aviation division implemented cross-functional team-building initiatives, significantly improving trust among engineers and operational staff. These efforts facilitated a culture of collaboration, reducing project delays and enhancing innovation. (Source: Harvard Business Review, “How GE Makes Teams Work”).

Embracing Conflict: Constructive Debate for Better Decisions

Many teams shy away from conflict, fearing it will create tension or damage relationships. However, avoiding difficult conversations often leads to unresolved issues and suboptimal decisions. Actions that can improve the comfort level of conflict include:

• Set Ground Rules for Conflict: Define acceptable behaviors in debates, such as attacking ideas, not individuals, and encouraging diverse perspectives.

• Conflict Resolution Training: Provide training on managing and embracing conflict. Techniques like the Thomas-Kilmann Conflict Mode Instrument (TKI) can identify preferred conflict styles.

• Facilitate Structured Discussions: Use tools like "pre-mortems" to predict potential project challenges and address them proactively.

Ford Motor Company, under the leadership of Alan Mulally, embraced "relentless reality." Leaders conducted transparent discussions about challenges during meetings, fostering accountability and innovation while steering Ford through financial recovery. (Source: Wall Street Journal, “Ford’s Comeback Story”)

Driving Commitment: Clarity and Buy-In for Strategic Goals

Teams often struggle with commitment when decisions are unclear or lack collective buy-in. This ambiguity leads to confusion and disengagement, undermining progress. Ideas for improving buy-in include:

• Align Goals with "Why": Clearly articulate the purpose behind every decision. Ensure that goals align with the company’s mission and employees’ roles.

• Decision-Making Transparency: Use tools like RACI (Responsible, Accountable, Consulted, Informed) matrices to clarify responsibilities.

• Celebrate Milestones: Regularly acknowledge and reward progress on goals to sustain momentum.

Boeing implemented structured decision-making during the development of the 787 Dreamliner. By fostering a culture of transparency and aligning team goals, Boeing improved cross-functional collaboration and met critical deadlines. (Source: MIT Sloan Management Review, “How Boeing Built Collaboration into the 787”)

Increasing Accountability: Ensuring Follow-Through

Lack of accountability can derail even the most well-intentioned plans. When team members hesitate to hold each other accountable, it fosters a culture of mediocrity and missed opportunities. Ideas for improving accountability include:

• Peer Accountability Systems: Establish regular peer reviews to ensure that commitments are upheld.

• Clear Metrics and KPIs: Define measurable goals and regularly track progress in team meetings.

• Immediate Feedback: Address underperformance promptly and constructively.

Caterpillar’s “Accountability Model” ensures leaders are held accountable for meeting safety and operational metrics. This approach fostered a culture of ownership, reducing workplace incidents and boosting efficiency. (Source: Forbes, “How Caterpillar Made Accountability a Cornerstone”).

Achieving Results: Collective Wins Over Individual Recognition

Teams that prioritize individual achievements over collective success risk creating silos and diminishing overall performance. A focus on shared outcomes is essential for sustained growth. Actions that can improve result include:

• Shared Rewards: Introduce team-based incentives tied to collective performance metrics.

• Highlight Team Achievements: During meetings, focus on team milestones rather than individual accomplishments.

• Cross-Functional Projects: Encourage collaboration across departments to create a sense of shared purpose.

Dow Chemical embraced cross-functional collaboration to streamline its supply chain. By aligning incentives and highlighting shared wins, Dow reduced costs and improved delivery times. (Source: Supply Chain Quarterly, “Dow Chemical’s Transformation”).

A Hopeful Path Forward

Transforming leadership team dynamics in the industrial sector is not only possible but achievable with the right strategies and mindset. By addressing challenges in trust, conflict, commitment, accountability, and results, industrial companies can turn their teams into cohesive, high-performing units. The examples of GE, Ford, Boeing, Caterpillar, and Dow Chemical demonstrate that even deeply entrenched organizations can embrace change and thrive.

As a CEO, your role is pivotal. By fostering a culture that prioritizes collaboration, transparency, and continuous improvement, you can inspire your team to rise above legacy limitations and traditional expectations. The journey may be challenging, but the rewards—improved performance, innovation, and a more engaged workforce—are well worth the effort.