Available online at http://www.journalcra.com INTERNATIONAL JOURNAL OF CURRENT RESEARCH International Journal of Current Research Vol. 3, Issue, 11, pp.049-054, November, 2011 ISSN: 0975-833X RESEARCH ARTICLE EFFECTS OF TEAM BUILDING ON THE PERFORMANCE OF EMPLOYEES IN ORGANIZATIONS TOWARDS THE REALIZATION OF MILLENNIUM DEVELOPMENT GOALS: A SURVEY OF SELECTED BANKS IN ELDORET TOWN Jacqueline M. Omuya1, David M. Kungu1, Leonard S. Mulongo1 and Dedan O. Ong'anya1 Department of Development Studies- School of Human Resource Development, P.O Box 3900, Eldoret ARTICLE INFO Article History: Received 28th August, 2011 Received in revised form 19th September, 2011 Accepted 28th October, 2011 Published online 20th November, 2011 Key words: Teams, Team building, Employees performance, Organization performance. ABSTRACT Organizations worldwide have various ways of enhancing their employee performance although the ways vary from one organization to another depending on the actual functions of each organization. This is done in a bid to improve the performance of the organizations. It is against this background that the study sought to examine the role of teambuilding on employee performance. To meet the purpose, the study objectives were; to examine the role of team building activities on performance; to identify team building activities in banking institutions and their contribution to employee performance; and to identify the challenges facing team building. The research was based on a conceptual frame work which shows that when organizations inculcate team building, the behavior of the employees towards work and performance significantly change. This behavior is positive and therefore employees work hard to suit each others situation aiming at good performance rewards. The target population for the study was two hundred and thirty (230) respondents drawn from twelve financial institutions in Eldoret town. The banks were stratified into three strata based on the number of employees and simple random sampling used to select a sample of one hundred and ninety two (192) respondents from the strata. This was considered representative of the entire population as it represents 83.5% of the target population. The SPSS programme version 11.0 was used to analyze the data which was presented in frequency tables, bar graphs and charts. It was established that the respondents had various notions concerning what team building is and what activities constitute team building. However this varied from one bank to another. The study established that team building faces the following challenges: Delay in completion of tasks; Personality clashes; Laziness among members; Low motivation; Selfishness; Problems with regular supplies; Competition for recognition and lack of promotions in their work places were also identified as challenges facing team building. However these problems can be overcome through training, empowerment of employees and performance appraisal. The study recommended that: there should be a clear budget set aside for team building activities; team coordinators (managers) should be involved in budgetary allocations and finally, all employees should be trained to ensure they understand and concur on the benefits of team building. Copy Right, IJCR, 2011, Academic Journals. All rights reserved. INTRODUCTION Background of the study Team building has emerged as the most important group phenomenon in organizations that enables managers to harness the energies of all employees to determine their strength and maximize both group and individual productivity. Team building seeks to maximize both individual and group productivity through the attainment of organizational goals and also it is meant to integrate the lower level staff and the top management in organizations so that they can work more effectively and produce more profit. It is an inspiration to boost productivity of employees and it involves a series of activities designed to create cohesion and a feeling of social support (Adiar 1986). *Corresponding author: jacqueomuya@yahoo.com Team building has been used in Japanese super markets where managers ultimately depend on the ability of their members to work in concert to accomplish competitive supremacy. The managers use the team approach to link and align the resources available towards the attainment of the organizational goals and also they facilitate group harmony (Dwivedi, 2006). This shows that in team building, employees and the top management must be in speaking terms in order to work successfully. If communication is not present people tend to have confusion, disunity and conflict in their organizations. Team building aims at employees coming together voluntarily to find solutions to problems encountered in their day to day working lives. A team can have eight to fifteen compatible members of a department who meet regularly to take the initiative to identify problems and find alternative solutions. These members think of how to implement these solutions in suitable areas and thus 050 International Journal of Current Research, Vol. 3, Issue, 11, pp.049-054, November, 2011 cooperation instead of confrontation. Team building has not only helped to improve productivity and performance but also has brought about harmonious relations among employees together with bringing out the creative talents of its members. Examples of firms that are following this team based organizational culture are Philips and Cadburys. These are international firms which have created new impacts by empowering and supporting team building. Specifically, these organizations are sensitive to technological changes; they aim at global market and industrial development (Dwivedi 2006). The above statements imply that team building is an important component in performance of employees in organizations. Bank employees are confined to work in a busy and isolated environment. Team building helps them to socialize with one another and to be psychologically prepared to work together to achieve the set goals of the organization. Team building in banks came as a remedy to achieve high performance in employees in the late 1980s and early 1990s when there was a reduction in profitability in the banking industry in Kenya. Banks were hit by a mass retrenchment exercise leading to uncertainty and grumbling in the middle and the lower cadre of employees. The Kenya Bankers Association discovered that most bank employees were discontent and de-motivated to work. It also realized that the gap between the top management and middle management staff was growing wider and wider. This showed a bad sign that could lead to serious decline in profitability in banks. There were high demands for performance which could not be easily met. Team building was designed to enhance cohesion amongst employees, to increase skills and knowledge, to satisfy employees in their work and make them flexible. Employees involved in team building trust each other, make decisions in consensus, feel free to express themselves and participate in decision making process. All the above will lead to high employee performance (Journal of Team Education 1993). findings important not only in building teams for organizational success but also for managing employees through teams to maximize productivity. The human resource managers in the banking institutions will find the study significant in that it provides a useful framework for managing their employees through teams, thus understanding the role of team work in the accomplishment of organizational objectives. This way, team building becomes a motivational tool for both the management and employees. The study is also significant in that it forms a useful foundation against which future studies can be undertaken by other researchers taking into account the suggestions for further studies. Equally so, researchers interested in team building will find the study a useful literature for reference. The Study Area This study was carried out in twelve selected banks in Eldoret Town. The study was carried in Barclays bank, Family finance, Standard chartered, Trans-National bank, National bank, Housing Finance, ABC bank, K-Rep bank, Cooperative bank, Kenya Commercial bank, Equity and Bank of Baroda out of eighteen banks in Eldoret. The study location was preferred because banks in Kenya are well represented in the area. Conceptual framework The study was based on a conceptual framework that shows that team building is a vital component on performance of employees in organizations. Statement of the Problem As much as team building plays an instrumental role in organizations, its actual effect in banking institutions has not been fully articulated or felt. Information on the relationship between team building and employee performance in the banking sector remains scanty and for this reason, the researcher sought to find out the actual effects of team building on performance of employees. The study objectives were as follows; i. ii. To identify types of team building activities in banking institutions and their contribution to employee performance. To examine the role of team building activities and how they are related to employee performance. Research Questions i. ii. What kinds of team building activities are present in banking institutions and what is their contribution to employee performance? What is the role of team building activities and how are they related to employee performance? Significance of the Study The study is significant to various stakeholders. Foremost, the banking institutions will find the study and more so its The figure shows that in order for team building to exist in the work place there must be financial resources committed to the training of employees on team building, the organization must have the right equipment for quality work to be done and good communication from the top management. When team building is well practiced, the result is improved performance, improved productivity improved morale and positive attitude towards work. The employees change positively when organizations give good remunerations. Employees are motivated and cooperative to work towards the set goals. Organizations can only arrive at objective human resource decisions and improved processes and procedures through good performance standards of employees. 051 International Journal of Current Research, Vol. 3, Issue, 11, pp.049-054, November, 2011 RESEARCH DESIGN AND METHODOLOGY The study adopted a descriptive design. A descriptive design is that which is concerned with describing the characteristics of a particular individual or group. This design enabled the researcher to collect information through questionnaire which helped the researcher to assess the current situation as it is in organizations visited. The respondents were employees of twelve banking institutions in Eldoret town which formed a target population of two hundred and thirty (230) bank employees as the researcher was only able to sample twelve banks in Eldoret town as six were not sampled because managers could not to allow any research to be conducted in their banks. This was 66.7% of all the eighteen banks that exist in Eldoret town. Stratified sampling technique was used in selecting the sample population. The banks were first stratified into three strata based on the number of employees since the number of employees determines the nature and size of teams, factors which are critical to team development and performance. After stratification, samples were picked from each stratum using the simple random sampling technique. The research employed a structured questionnaire to obtain data from the respondents. The questionnaires were distributed to various respondents, who completed them at their convenient time but within three weeks. The received and collected data was classified into categories then tabulated to fit into different categories and then counted to separate cases which belonged to each category. Descriptive statistics was used to compute frequency tables where absolute frequencies and percentages of respondents were considered to facilitate comparisons. RESULTS AND DISCUSSION Members involved in team building activities The study sought to find out who is involved in team building activities. This was necessary so as to ascertain whether all employees participate in team building activities or not. Findings in table 2 indicate that a majority of the respondents (79.7%) indicated that all employees participate in teambuilding activities while others felt it is the middle management and the top management which fully participate in teambuilding activities. This shows that teams have been formed for all cadres of employees in the banking institutions for then purpose of improving performance at the work place. However, lack of unanimity implies lack of high level institutional commitment to team building. While bank employees (respondents) are aware that team building is important, they only reported who is involved in form of perception more than observation. Glaser (1994) observed that employee involvement and participation is crucial to their success and team building helps individuals learn to participate and adapt to changing situations. This means that anybody who does not get involved would be left behind and would drag the organization behind when pursuing its objectives. This in short implies that everybody in the organization should be involved in team building, from top (CEO) to the lowest (cleaner). Who coordinates the teambuilding activities The study sought to establish who coordinates team building activities. This was necessary because Teams must have leaders who direct them how to utilize organizational resources for better performance. The findings as per table 3 reveal that 96.9% of the respondents indicated that a manager or project coordinator is in-charge. A significant proportion (39.1%) state that marketing department coordinates team building activities. In order to build team spirit, Jay (2003) suggests that different people should be put in charge of different projects. This keeps the team in fluid and encourages mutual respect. More experienced or more skilled people should be put in charge of more demanding projects and the newest members can be placed on the less demand jobs. In addition, Jay (2003) recommends that team members should be encouraged to support each other, should be trained together, should be given confidential information and treated as part of the team all in an effort to coordinate successful teams and build team spirit. This does seem not to be happening in teams in banking institutions in Eldoret. Team building activities that exist in banks The researcher sought to establish the type of team building activities that existed in financial institutions. This was necessary to know the activities they participated in that encouraged team building and performance in their organizations. The results as shown in table 4 indicates that forming discussion groups reported by 72 (37.5%) of the respondents and out door sporting activities reported by 69 (35.9) are the most common team building activities practiced in banking institutions in Eldoret. There are however, a number of other non-traditional team building activities mentioned by a small but significant proportion of the respondents. These activities include; The wall, the walk, the fall, human checker, get off your chair, famous people, the traffic jam and perfect square in that order of frequency. Draft (1991) observes that team building is not a random process but evolves over definite stages. In the beginning team members have to get to know one another, establish norms and roles, clarify team tasks and divide labour. This makes member's part of an operation unit. Plunkett and Attner (1994) listed five steps of team building that occur in sequence which include; Forming, storming, norming performing and adjourning. This cycle is then repeated and when teams are well established, other activities are carried out not only to sustain the teams but also to improve cohesion. Cohesion is a dynamic process which is reflected in the tendency for a group to stick together and remain united in the pursuit of its goals and objectives (Canon, 1982). If banking institutions had well established mechanisms/procedures of team building, then all employees would belong to at least a team and therefore be conversant with not only the stages in team building but also activities that enhance team cohesion. This does not seem to be the case since none of the respondent mentioned the team building activities essential in all stages of team building or team development. This implies that the concept of \"teams\" is receiving inadequate attention in banking institutions in Eldoret. Benefits of team activities The researcher sought to establish the benefits accruing from team activities in financial institutions. This was necessary to ascertain whether the respondents realize the importance of team building on their performance. The respondents indicate that successful team building leads to employees being united and committed reported by (89.1%), high morale (47%) high 052 International Journal of Current Research, Vol. 3, Issue, 11, pp.049-054, November, 2011 Table 1: Sample Size Determination Strata 1 - 15 employees Total 16- 30 employees Total 31- 46 employees Total Grand Total No of Banks 1. Baroda 2. ABC 3. Transnational 4. HFCK 5. Standard Chartered 6. K-Rep Total No. 6 10 9 7 13 11 56 25 27 20 30 102 38 34 72 230 1. Co-operative 2. National 3. Family Finance 4. Equity 1. Barclays 2. KCB 12 Banks Sample size 40 90 62 192 Table 2 Distribution of Responses on who is involved in Team Building Activities Responses on who is involved in team Building Activities All employees Middle Level Management Senior Management Frequency Percentage 153 102 148 79.7 53.1 77.1 Table 3: Distribution of Responses on who Coordinates Team Building Activities Response Managers Marketing Department Total Frequency 186 6 192 Percentage 96.9 3.1 100 Table 4: Team Building activities that exist in Banks Team Building Activities Human Checker Get off your chair Rope pulling The wall The Walk The Fall The Traffic Jam Perfect Square Forming Discussion Groups Outdoor Activities Sports Frequency (F) 36 36 33 51 48 42 18 15 72 69 Percentage (%) 18.8 18.8 17.2 26.6 25.0 21.9 9.4 7.8 37.5 35.9 Table 5: The Benefit of Team Activities Greatest Benefit of Team Activities People are united and committed High morale High Performance They all can make decisions on their own Frequency (f) 171 147 150 51 Percent (%) 89.1 76.6 78.1 26.6 Table 6: Distribution of Respondents' Suggestions on how to improve Team Building Activities Suggestions on how to improve team building activities Training Team Building activities should be done outside the organization with the right equipment and materials There should be regular team activities Employees should be given freedom to decision making Staff should accept mistakes and correct them Employees should love working as a team Through appraisals and promotions People should be united and committed performance (78.1%) and participating in decision making (26.6%). These were impressive responses since it shows that the employees are aware that successful teams would help them by improving performance at work. Ibbotson and Frequency 105 39 Percent 54.7 20.3 10 33 42 81 18 171 5.2 17.2 21.9 42.2 9.4 86.1 Newell (1996) noted that traditional organizations with individual orientations that do not utilize the power of a team approach can no longer be competitive in the intricate and dynamic world of business. Teams employ and exploit a 053 International Journal of Current Research, Vol. 3, Issue, 11, pp.049-054, November, 2011 variety of technical expertise welded by team members, involve employees with change, serve to keep all team members motivated, make them feel important, and help members acquire new skills and perceptions Salas et al (1999). There is however a narrow scope of understanding of benefits accruing from belonging to teams in an organization by members of banking institutions in Eldoret. This implies that the level of awareness of the importance of team building is high. This view is supported by the response to the question on what team building activities are applied in solving performance related problems in the organizations where respondents work. The most commonly mentioned activity used to solve performance problems is training reported by 20.3% of the respondents. According to Brown (1992) teams are built so as to set team goals and priorities, analyze group work methods and examine interpersonal relationships within groups. In solving performance related problems, teams would be expected to do exactly that and in addition, analyze the problem to identify the rule of each member who is recognized to include contributors. Suggestions on how to improve team building activities The study further sought to establish responses on how team activities can be improved. This was necessary so as to ascertain whether employees have any major interest on improved performance through team activities. The findings in table 6 suggest that a majority of the respondents (86.1%) viewed unity in the work place as a major factor to improve team building activities in their organizations. This suggests that in order for organizations to perform well the interpersonal barriers have to be broken so that people can work together, be united and committed to accomplish organizational goals. Conclusions In general, it can be concluded that team building activities exist in banks in Eldoret but they are not being given the attention they deserve. Respondents seem to understand what teambuilding is and indicated that the most common teambuilding activities are forming discussion groups and holding outdoor sporting activities. However, there is a wide disparity of teambuilding activities that exists in the banks and new ones ought to be installed in order to create and build strong teams. The study also established that employees become more united and committed, get high morale leading to high performance since they all participate in decision making. However, it does emerge that the level of understanding of teambuilding is low since there seemed to be unanimous responses from respondents who are expected to be team members. further, teambuilding activities boosts their morale, enables them beat deadlines and gives them satisfaction thus lead to them exploiting their talents and improving productivity. Recommendations Following the study findings it is clear that the teams approach is the best system to adopt in order to enhance individual/employees' performance in organizations. To achieve maximum benefits from teams, the following recommendations are advanced; 1) There should be a clear budget for teambuilding activities and team coordinators should be involved in budgetary allocations 2) All employees should belong to a team and trained to ensure they understand and concur on benefits of teambuilding 3) Coordination of teambuilding activities should be assigned to any team member every time a new activity is to be started. Choice of coordinator should be based on complexity of the activity and ability, skills and experience of team members but all members must have a chance to \"lead\" 4) Team members are individuals with different emotional needs, this must be known and individual differences understood so as to create teams that are able to utilize them as strengths and not weaknesses. Individual development plan should be incorporated in team management to motivate staff. 5) Communications among teams need to be improved to ensure all members have sufficient information to base their decisions and further, Staff should be involved in making decisions on matters affecting their work operations. 6) Teams should be motivated with rewards once a team has accomplished strategic milestones. These can be either monetary or non monetary i.e. 'well done',' Thank you for your hard work' these can have a tremendous effect. 7) Finally, team building activities should be designed, planned, executed and monitored so as to create synergy, increase skills and knowledge, create organizational flexibility, provide members satisfaction and allow members freedom to participate in decision making and implanting changes. Recommendations for further research It may be necessary to carry out further research on teambuilding activities to establish; i. 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Steve Denning Author and consultant Facilitation of growth is more about good, trustworthy contacts than capital. Trust is a driving force for business creation, and to create a global business you need to build a team that is capable of meeting the challenge. Trust is a key factor in team building and a needed enabler for cooperation. In general, trust building is a slow process, but it can be accelerated with open interaction and good communication skills. The fast-growing and ever-changing nature of global business sets demands for cooperation and team building, especially for startup companies. Trust building needs personal knowledge and regular face-to-face interaction, but it also requires empathy, respect, and genuine listening. Trust increases communication, and rich and open communication is essential for the building of high-performing teams. Other building materials are a shared vision, clear roles and responsibilities, willingness for cooperation, and supporting and encouraging leadership. This study focuses on trust in high-performing teams. It asks whether it is possible to manage trust and which tools and operation models should be used to speed up the building of trust. In this article, preliminary results from the authors' research are presented to highlight the importance of sharing critical information and having a high level of communication through constant interaction. Introduction Defining Trust In a global business, conscious team building is one of the key factors to success. It is better to have a first-rate team with a second-rate plan, than to have a secondrate team with a first-rate plan. Winning teams can overcome obstacles and react faster to changing surroundings. When building high-performing teams, one of the most essential aspects is trust. Trust is difficult to define. Ring and van de Ven (1992; tinyurl.com/72bz27v) define trust as \"confidence in another's goodwill\". Trust is a commitment to cooperate before there is any certainty about how the trusted people will act (Coleman, 1990; tinyurl.com/7qkkg8d). Adler (2001; tinyurl.com/7npfxzm) distinguishes three sources of trust: i) a calculative form of trust via assessment of costs and benefits; ii) familiarity through continuing interaction; and iii) values and norms that cultivate trustworthy behaviour. Fukuyama (1996; tinyurl.com/7qd3fpl) describes trust as arising from expectations of honest and cooperative behaviour. Thus, trust is expressed in the behaviour towards others (Costa, 2003; tinyurl.com/7p9s5nd). Trust also can be seen as a flexibility that turns up in dif- In this article, we summarize the insights from the relevant literature and present early findings from a study focusing on enhancing the team building and trust between different parties involved in a business ecosystem. The main question of interest is: \"What is the relationship between trust and team performance?\" www.timreview.ca 38 June 2012 Technology Innovation Management Review Building Trust in High-Performing Teams Mila Hakanen and Aki Soudunsaari ficult circumstances (Ilmonen et al., 1998; tinyurl.com/ 7pbkhff). Trust is also based on the probability calculus where the emphasis is on advantages and disadvantages of an interaction (Tyler and Degoey, 1996; tiny url.com/7odewvl). Past experiences and interactions affect trust, which usually takes a long time to develop. In this research, trust is considered as faith in others' behaviour and goodwill that can grow or vanish due to interaction and experiences. A lack of trust may negatively impact communication, delegation, empowerment, productivity, and results (Erdem et al., 2003; tinyurl.com/7ry3f5k). Trust is fragile and can be lost quickly through negative experiences. Larson and LaFasto (1989; tinyurl.com/7s2jdfq) argued that four elements are needed in trust building: honesty, openness, consistency and respect. Without one of these dimensions, trust can fray or even break. Communication Supports Trust Trust supports communication and vice versa. People share information voluntarily, and as a consequence of trust, people are willing to share ideas and information (Sthle and Grnroos, 2000; tinyurl.com/6uza8gm). Interaction can be measured by the quality and extent of interaction. Varamki and colleagues (2004: tinyurl.com/ 7og3hjo; 2006: tinyurl.com/6lrmw4u) have defined the optimum level of interaction, which includes genuine dialog in an open and responsive atmosphere of reciprocal respect. Unwillingness to share ideas or comments, weak social skills, and distrust are common problems in the communication process. The rooting of ideas and allocation of feedback is easier in a trusted relationship (Mkipeska and Niemel, 2005; tinyurl.com/6tr629v). In a relationship that is built up by trust, cooperative behaviour and knowledge transfer are likely to happen (Jones and George, 1998: tinyurl.com/7ygu888; Adler, 2001; tinyurl.com/7npfxzm). A lack of trust will show up as problems in communication, empowerment, and quality (Owen, 1996; tinyurl.com/7ry3f5k). Openness builds trust, which further increases communication. The building materials of trust are also empathy, respect, interest in others, and genuine listening. Trust is based on the transaction of facts and feelings, but mere fact-based communication does not build the personal relationships (Sthle and Laento, 2000; tinyurl .com/7qwywgs). Trust brings the risk that has been taken based on the feelings, others' behaviour and the conclusions about cooperation. Shared norms and morals also help to increase trust. www.timreview.ca Sthle and Laento (2000; tinyurl.com/7qwywgs) have defined four types of dynamics in an interaction process: rival, critical, consensus oriented, and collaboration oriented. The rival dynamic means an argumentation of one's own competences (i.e., not being responsive to the ideas of others). In the critical dynamic, arguments and interruptions are common. Consensus-oriented communication concentrates on avoiding subjects that could produce disagreements. Genuine listening and consideration of other's ideas are features of collaboration-oriented communication. The collaboration-orientated dynamic also includes readiness for shared learning and development. Trust in High-Performing Teams Trust is a complicated aspect of the relationships between persons, but trust on the team level is even more complex. Trust increases communication, commitment, and loyalty between team members. Trust can be considered as a foundation that enables people to work together, and it is an enabler for social interactions. It can also improve team performance and increase the probability of creating successful companies (Mkipeska and Niemel, 2005; tinyurl.com/6tr629v). Trust plays a crucial role when global business teams, startups, and networks are being created (Harisalo and Miettinen, 2010; tinyurl.com/6n49wu6). In modern organizations, trust has become increasingly important because the organizations cannot rely on formal policies and rigid rules (Erdem et al., 2003; tinyurl.com/7ry3f5k). The team is a basic unit of performance for most organizations; it melds together the skills, experiences, and insights of several people (Katzenbach and Smith, 1993; tinyurl.com/7ubuxq6). High-performing teams are not usually a collection of the brightest individuals. Rather, they are functioning entities that have diverse roles for the team members who provide the skills and knowledge to succeed. Healthy rivalries between team members enable the team to perform at a high level, but only if the team is built on robust trust (Tienari and Piekkari, 2011; tinyurl.com/7ntr2pt). Trust building is a relatively slow and long process compared to other business processes, but it can be accelerated with open interaction and good communication skills (Sthle and Laento 2000; tinyurl.com/87y3bc4). Shared experiences create trust and trust, in turn, enables deeper levels of interaction and expression between team members (Mkipeska and Niemel, 2005; tinyurl.com/6tr629v). Trust building requires open- 39 Technology Innovation Management Review June 2012 Building Trust in High-Performing Teams Mila Hakanen and Aki Soudunsaari ness, informing, honesty and arguments (Ruuskanen, 2003; tinyurl.com/7r6bn8s); trust also enables free sharing of ideas, which is the basis of innovation processes. Usually, the feeling of trust is based on intuition and emotions (Sthle and Laento, 2000; tinyurl.com/87y3bc4). of what needs to be done, on both personal and team levels (Tienari and Piekkari 2011; tinyurl.com/7ntr2pt). Team members should also have competence trust for each other, which is based on the trustee's knowledge and expertise (Sako, 1992; tinyurl.com/7sbqvhm). Cook (2009; tinyurl.com/7lhq3lf) studied teams in IT companies and defined the characteristics of a high-performing team. High-performing teams have a clearly defined and commonly shared purpose, mutual trust and respect, clarity around individual roles and responsibilities, high levels of communication, willingness to work towards the greater good of the team, and a leader who both supports and challenges the team members. There is also a climate of cooperation and an ability to voice differences and appreciate conflict. A high-performing team does not sweep inevitable differences under the carpet and it values openness. Early Findings from a Study in Progress Jrvenp, Knoll, and Leidner (1998; tinyurl.com/7pet42t) have researched team building in global, virtual teams. Their research revealed the importance of sharing personal information, such as background, work experience, and current organizational contexts. Trust, benevolence, ability, and integrity were perceived to increase because of team-building exercises. The exercises focused on enriching communication, creating a team identity and building team spirit. In high-trust teams people expressed their feelings, for example excitement, more freely. Team members also gave each other recognition and feedback. Disagreements were discussed more openly. Overall, high-trust teams had more open interaction and discussion (Jrvenp et al., 1998; tinyurl.com/7pet42t). Reagans and Zuckerman's (2001; tinyurl.com/76kof33) research about R&D teams reveals the positive relationship between communication frequency and productivity. Their research also shows that homogeneous teams yield a lower level of productivity. Larson and LaFasto (1989; tinyurl.com/7s2jdfq) described the importance of a team leader's ability to: i) share the vision successfully, ii) execute needed changes, and iii) motivate team members to their best actions by supporting a healthy climate and high energy level. Team members should internalize the vision and desired targets to reach a high-performing state. Team members should also be open to hear others' opinions and take part in team discussion. When building high-performing teams, one should make sure that everyone shares the common goal or goals and that there is commitment and understanding www.timreview.ca In this section, we present early findings from an action-research study on building trust in high-performing teams. The subjects of our analysis are teams from partner companies and a research group that are working together on a large-scale international project, around which a business ecosystem has formed. The project is called \"Globally scalable business models in health, exercise and wellbeing markets\" (fightingla .com). In this project, global business creation comes together with top research, forming an ecosystem in the health, exercise, and wellbeing industries. Our vision is to bring together the relevant knowledge and the most talented people from all over the world, whether their passion is in business or in research, to create an ecosystem that helps our mission to bring sustainable business solutions for problems affecting health, exercise, and wellbeing. The data was collected primarily through interviews with top-level managers from the partner companies. In this research, we are interested in finding out how trust develops and grows in the business ecosystem. How can the building of trust be supported? Can trust be managed? What is the relationship between trust and team performance? Our preliminary findings reveal the importance of trust in team building. Trust has been built profoundly in the level of the project team. Most of the team members had worked together before, so they knew each other already and trust has been built through shared experiences, active communication, and mutually respective behaviour. The project consists of co-creation on different levels and, for example, in business modelling it is important to share critical information and personal ideas. Our findings also show that the business partners do not commit fully to business network development without trust, both at the personal and businessconcept levels. Enhancing trust needs a community of enrichment and regular interaction between all partners. Also, value creation and shared learning could be increased if high-trust relations could be built. One of 40 June 2012 Technology Innovation Management Review Building Trust in High-Performing Teams Mila Hakanen and Aki Soudunsaari the key ingredients for better communication is genuine listening and respecting other team members' ideas. This study has also shown that fact-based communication alone does not build personal relations. Trust takes time to develop, but without conscious actions like one-on-one meetings with different partners and team-building exercises, the probability for success decreases. Conclusion Existing research emphasizes the importance of trust and team building. Trust is a crucial factor for team performance (Erdem et al., 2003; tinyurl.com/7ry3f5k); without trust, team members are not willing to voice their opinions, questions, and improvement ideas. Also team members do not display their feelings and they are not willing to help others (Sitkin and Roth, 1993: tinyurl.com/ 7rf2rn9; Jones and George, 1998: tinyurl.com/7ygu888). All these aspects are crucial in co-creation of business networks and in the building of high-performing teams. The preliminary results of our study reinforce the insights from the literature and contribute further insights relating to trust in high-performing teams and within business ecosystems. In particularly, these results highlight the importance of sharing critical information and having a high level of communication through constant interaction. We are looking forward to find out what further insights our ongoing study may reveal. www.timreview.ca About the Authors Mila Hakanen (MSc Econ) is a researcher and PhD candidate at the Jyvskyl University School of Business and Economics, Finland. She is an action researcher in a project called \"Globally scalable business models in health, exercise and wellbeing markets\" (fightingla.com). Her research is focused on the areas of social capital, trust and trust building, trust management, communication, and global networking. Aki Soudunsaari (MSc Sport and Health, BSc Adult Education) is a PhD student in Growth Venture Creation at the University of Jyvskyl, Finland. Aki's research is focused on creating winning teams, and he is a researcher in a project called \"Globally scalable business models in health, exercise and wellbeing markets\" (fightingla.com). He is also a serial entrepreneur in the fields of health exercise, corporate wellbeing, and green technology. Citation: Hakanen, M. and A. Soudunsaari. 2012. Building Trust in High-Performing Teams. Technology Innovation Management Review. June 2012: 38-41. 41