The wealth management and financial advice sector faces significant challenges when it comes to team effectiveness. The rise of individualism, the shift to hybrid work models, and the increasing emphasis on authenticity in the workplace have all contributed to a complex dynamic where balancing individual needs with team objectives can be a delicate task.
In this article, I explore the traits of high-performing teams in the financial services context and provide practical insights on how to enhance team effectiveness by assessing and leveraging individual strengths within the team.
Defining team effectiveness in the financial services context
Team effectiveness refers to the ability of a group of individuals to collaborate cohesively and achieve optimal results. In my experience of working with teams in the wealth management sector, I’ve found that trust, precision, and client satisfaction are paramount and high-performing teams exhibit four key traits:
- Clear communication channels: Effective teams establish open lines of communication, ensuring that information flows freely and transparently. They foster an environment where team members feel comfortable expressing ideas, concerns, and feedback.
- Complementary skillsets: A successful team comprises individuals with diverse expertise and strengths that complement one another. This diversity allows for a more comprehensive approach to problem-solving and ensures the team has the necessary skills to meet client demands.
- Shared goals and vision: A shared sense of purpose and a common understanding of team goals is essential. When every team member is aligned with the overall vision, they work more collaboratively towards achieving shared objectives.
- Trust and psychological safety: A psychologically safe environment builds trust among team members, enabling them to take calculated risks, share vulnerabilities, and learn from mistakes without fear of judgment or reprisal.
Managing and improving team effectiveness
Whether in the wealth management or any other industry, organisations recognise the significance of cohesive and high-performing teams in achieving their goals.
A fundamental aspect of managing team effectiveness is gaining a deeper understanding of the individual strengths present within the team. Each team member brings a diverse set of preferences, unique experiences, and perspectives to the table. By recognising and appreciating individual strengths, team leaders can strategically allocate roles and responsibilities that align more closely with the specific expertise of each team member.
In addition to understanding individual strengths, effective team management relies on establishing open and transparent communication. ‘Psychological safety’, which refers to a culture of trust and mutual respect, is essential for creating an environment where team members feel comfortable expressing their thoughts, ideas, and concerns.
Practical ways leaders can create a more inclusive environment include leading by example, demonstrating active listening, offering constructive feedback, and encouraging the exchange of diverse viewpoints.
Leveraging individual strengths for team effectiveness
It’s long been understood that a team benefits from a variety of strengths and preferences in order to be truly balanced and effective. One way to identify where an individual’s preferences will fit within a team is to use a psychometric tool, such as the team management profile (TMP). Psychometrics are designed to help individuals develop awareness of their own strengths and preferences and learn how to utilise them in the workplace.
Insights from these tools help individuals understand that other members of their team have different preferences, and with this knowledge, find more effective ways to interact with colleagues. For instance, while you may lean towards spending time in divergent thought, others may prefer to quickly converge into action. Effective team management involves learning to strike a balance between these two preferences in order to improve collaboration and teamwork.
One valuable aspect of the TMP in enhancing team effectiveness is its ability to facilitate "linking" which involves understanding others' perspectives to improve interactions.
During a workshop I facilitated, an enlightening situation occurred between Susan and Dave. Susan had often experienced frustration when working with Dave and would delay communication with him. After completing their TMP profiles, they discovered they were on opposite sides of the TMP wheel. This led Susan to have a significant realisation: while she preferred making decisions analytically, Dave was more a beliefs-based decision-maker.
