Harvard Business Review www.hbr.org HBR CASE STUDY Why doesn't this team work? The Team That Wasn't by Suzy Wetlaufer Reprint 94612X This document is authorized for use only in Arundhati's Upgrad-IMT C41 LEPP.May 9,2023 at Upgrad from May 2023 to Nov 2023.With a group of talented, hardworking people, why isn't this team working? HBR CASE STUDY The Team That Wasn't by Suzy Wetlaufer The last thing Eric Holt had expected to miss time trying to get his new team to make it about New York City was its sunrises. Seeing through a meeting without the tension level be one usually meant he had pulled another all- coming unbearable. Six of the top-level manag nighter at the consulting firm where, as a vice ers involved seemed determined to turn the CUPORATION. ALL RIGHTS BE SERVED. president, he had managed three teams of company around, but the seventh seemed manufacturing specialists. But as he stood on equally determined to sabotage the process. the balcony of his new apartment in the small Forget camaraderie. There had been three Indiana city that was now his home, Eric sud- meetings so far, and Eric hadn't even been able denly felt a pang of nostalgia for the way the to get everyone on the same side of an issue. dawn plays off the skyscrapers of Manhattan. Eric stepped inside his apartment and In the next moment, though, he let out a sar- checked the clock: only three more hours be- donic laugh. The dawn light was not what he fore he had to watch as Randy Louderback, missed about New York, he realized. What he FireArt's charismatic director of sales and mar- missed was the feeling of accomplishment that keting, either dominated the group's discussion usually accompanied those sunrises or withdrew entirely, tapping his pen on the An all-nighter in New York had meant hours table to indicate his boredom. Sometimes he of intense work with a cadre of committed, en- withheld information vital to the group's de- thusiastic colleagues. Give and take. Humor. bate; other times he coolly denigrated people's Progress. Here, so far anyway, that was unthink- comments. Still, Eric realized, Randy held the COPYRIGHT . 194HMM able. As the director of strategy at FireArt, Inc., group in such thrall because of his dynamic per- a regional glass manufacturer, Eric spent all his sonality, his almost legendary past, and his close HBR's cases, which are fictional, present common managerial dilemmas and offer concrete solutions from experts. HARVARD BUSINESS REVIEW " NOY Blamed for use only in Arundhati's Upgrad-IMT C41 LEPP.May 9,2023 at Upgrad from May 2023 to Nov 2023. PAGE 1The Team That Wasn'tHER CASE STUDY relationship with FireArt's CEO that he could sion, and have a comprehensive plan for the not be ignored. And at least once during each company's strategic realignment up, running, meeting, he offered an insight about the indus- and winning within six months." try or the company that was so perceptive that Eric had immediately compiled a list of the Eric knew he shouldn't be ignored. senior managers from human resources, man- As he prepared to leave for the office, Eric ufacturing, finance, distribution, design, and felt the familiar frustration that had started marketing, and had set a date for the first building during the team's first meeting a meeting. Then, drawing on his years as a con- month earlier. It was then that Randy had first sultant who had worked almost solely in team insinuated, with what sounded like a joke, that environments, Eric had carefully prepared a he wasn't cut out to be a team player. "Leaders structure and guidelines for the group's discus- lead, followers..please pipe down!" had been sions, disagreements, and decisions, which he his exact words, although he had smiled win- planned to propose to the members for their ningly as he spoke, and the rest of the group input before they began working together. had laughed heartily in response. No one in Successful groups are part art, part science, the group was laughing now, though, least of Eric knew, but he also believed that with every all Eric. member's full commitment, a team proved the FireArt, Inc., was in trouble-not deep trou- adage that the whole is greater than the sum ble, but enough for its CEO, Jack Derry, to of its parts. Knowing that managers at FireArt make strategic repositioning Eric's top and were unaccustomed to the team process, how- only task. The company, a family-owned ever, Eric imagined he might get some resis maker of wine goblets, beer steins, ashtrays, tance from one or two members. and other glass novelties had succeeded for For one, he had been worried about Ray nearly 80 years as a high-quality, high-price LaPierre of manufacturing. Ray was a giant of producer, catering to hundreds of Midwestern a man who had run the furnaces for some 35 clients. It traditionally did big business every years, following in his father's footsteps. Al- football season, selling commemorative knick- though he was a former high school football knacks to the fans of teams such as the Fight- star who was known among workers in the fac- ing Irish, the Wolverines, and the Golden tory for his hearty laugh and his love of practi- Gophers. In the spring, there was always a rush cal jokes, Ray usually didn't say much around of demand for senior prom items-champagne FireArt's executives, citing his lack of higher goblets emblazoned with a school's name or education as the reason. Eric had thought the beer mugs with a school's crest, for example. team atmosphere might intimidate him. Fraternities and sororities were steady custom- Eric had also anticipated a bit of a fight ers. Year after year, Fire Art showed respectable from Maureen Turner of the design division, increases at the top and bottom lines, posting who was known to complain that FireArt $86 million in revenues and $3 million in earn- didn't appreciate its six artists. Eric had ex- ings three years before Eric arrived. pected that Maureen might have a chip on her In the last 18 months, though, sales and shoulder about collaborating with people who earnings had flattened. Jack, a grandnephew didn't understand the design process. of the company's founder, thought he knew Ironically, both those fears had proved what was happening. Until recently, large na- groundless, but another, more difficult prob- tional glass companies had been able to make lem had arisen. The wild card had turned out money only through mass production. Now, to be Randy. Eric had met Randy once before however, thanks to new technologies in the the team started its work and had found him glassmaking industry, those companies could to be enormously intelligent, energetic, and execute short runs profitably. They had begun good-humored. What's more, Jack Derry had to enter FireArt's niche, Jack had told Eric, confirmed his impressions, telling him that and, with their superior resources, it was just a Randy "had the best mind" at FireArt. It was Suzy Wetlaufer is a Boston-based matter of time before they would own it. also from Jack that Eric had first learned of writer. Formerly, she was with Bain & "You have one responsibility as FireArt's Randy's hardscrabble yet inspirational per- Company, where she worked with new director of strategy," Jack had said to Eric sonal history. manufacturing dients on strategy on his first day. "That's to put together a team Poor as a child, he had worked as a security formulation. of our top people, one person from each divi- guard and short-order cook to put himself HARVARD BUSINESS BEYLEW " NOVEMBER . Wheremy in rundhati's Upgrad-IMT C41 LEPP.May 9,2023 at Upgrad from May 2023 to Nov 2023. PAGE 2The Team That Wasn'tHBR CASE STUDY through the state college, from which he grad- for FireArt to cut throughput time by 3% and uated with top honors. Soon after, he started raw-materials costs by 21%, thereby positioning his own advertising and market research firm the company to compete better on price. It in Indianapolis, and within the decade, he had was obvious from his detailed presentation built it into a company employing 50 people to that he had put a lot of thought into his com- service some of the region's most prestigious ments, and it was evident that he was fighting accounts. His success brought with it a measure a certain amount of nervousness as he made of fame: articles in the local media, invitations them. to the statehouse, even an honorary degree "I know I don't have the book smarts of from an Indiana business college. But in the most of you in this room," he had begun, "but late 1980s, Randy's firm suffered the same fate here goes anyway." During his presentation, as many other advertising shops, and he was Ray stopped several times to answer questions forced to declare bankruptcy. FireArt consid from the team, and as he went on, his nervous- ered it a coup when it landed him as director ness transformed into his usual ebullience. of marketing, since he had let it be known that "That wasn't so bad!" he laughed to himself as he was offered at least two dozen other jobs. he sat down at the end, flashing a grin at Eric. "Randy is the future of this company," Jack "Maybe we can turn this old ship around." Derry had told Eric. "If he can't help you, no Maureen Turner had followed Ray. While one can. I look forward to hearing what a team not disagreeing with him-she praised his with his kind of horsepower can come up with comments, in fact-she argued that FireArt to steer us away from the mess we're in." also needed to invest in new artists, pitching its Those words echoed in Eric's mind as he sat, competitive advantage in better design and with increasing anxiety, through the team's wider variety. Unlike Ray, Maureen had made "If Randy can't help you, first and second meetings. Though Eric had this case to FireArt's top executives many and planned an agenda for each meeting and times, only to be rebuffed, and some of her no one can," CEO Jack tried to keep the discussions on track, Randy frustration seeped through as she explained Derry had told Eric. always seemed to find a way to disrupt the pro- her reasoning yet again. At one point, her cess. Time and time again, he shot down other voice almost broke as she described how hard people's ideas, or he simply didn't pay atten- she had worked in her first ten years at FireArt, tion. He also answered most questions put to hoping that someone in management would him with maddening vagueness. "I'll have my recognize the creativity of her designs. "But no assistant look into it when he gets a moment," one did," she recalled with a sad shake of her he replied when one team member asked him head. "That's why when I was made director of to list FireArt's five largest customers. "Some the department, I made sure all the artists days you eat the the bear, and other days the were respected for what they are-artists, bear cats you," he joked another time, when not worker ants. There's a difference, you asked why sales to fraternities had recently know." However, just as with Ray LaPierre, nose-dived. Maureen's comments lost their defensiveness Randy's negativism, however, was coun- as the group members, with the exception of tered by occasional comments so insightful Randy, who remained impassive, greeted her that they stopped the conversation cold or words with nods of encouragement. turned it around entirely-comments that By the time Carl Simmons of distribution demonstrated extraordinary knowledge about started to speak, the mood in the room was ap- competitors or glass technology or customers' proaching buoyant. Carl, a quiet and meticus buying patterns. The help wouldn't last, lous man, jumped from his seat and practically though; Randy would quickly revert to his role paced the room as he described his ideas. as team renegade. FireArt, he said, should play to its strength as a The third meeting, last week, had ended in service-oriented company and restructure its chaos. Ray LaPierre, Maureen Turner, and the trucking system to increase the speed of delive distribution director, Carl Simmons, had each ery. He described how a similar strategy had planned to present cost-cutting proposals, and been adopted with excellent results at his last at first it looked as though the group were job at a ceramics plant. Carl had joined FireArt making good progress. just six months earlier. It was when Carl began Ray opened the meeting, proposing a plan to describe those results in detail that Randy HARVARD BUSINESS BEXLEY NAY EMBER WR Inn rundhati's Upgrad-IMT C41 LEPP.May 9,2023 at Upgrad from May 2023 to Nov 2023. PAGE 3The Team That Wasn'tHER CASE STUDY brought the meeting to an unpleasant halt by not trying to impress anyone here at FireArt. I letting out a loud groan. "Let's just do every- don't need to. I want this company to succeed thing, why don't we, including redesign the as much as you do, but I believe, and I believe kitchen sink!" he cried with mock enthusiasm. passionately, that groups are useless. Consen- That remark sent Carl back quickly to his seat, sus means mediocrity. I'm sorry, but it does." where he halfheartedly summed up his com- "But you haven't even tried to reach consen- ments. A few minutes later, he excused him- sus with us," Maureen interjected. "It's as if self, saying he had another meeting. Soon the you don't care what we all have to say. We others made excuses to leave, too, and the can't work alone for a solution-we need to room became empty. understand each other. Don't you see that?" No wonder Eric was apprehensive about The room was silent as Randy shrugged his the fourth meeting. He was therefore surprised shoulders noncommittally. He stared at the when he entered the room and found the table, a blank expression on his face. whole group, save Randy, already assembled. It was Eric who broke the silence. "Randy, Ten minutes passed in awkward small talk, this is a team. You are part of it," he said, trying and, looking from face to face, Eric could see to catch Randy's eye without success. "Perhaps his own frustration reflected. He also detected we should start again-" an edge of panic-just what he had hoped to Randy stopped him by holding up his cup, avoid. He decided he had to raise the topic of as if making a toast. "Okay, look, I'll behave Randy's attitude openly, but just as he started, from now on," he said. The words held prom- Randy ambled into the room, smiling. "Sorry, ise, but he was smirking as he spoke them- folks," he said lightly, holding up a cup of cof- something no one at the table missed. Eric fee as if it were explanation enough for his took a deep breath before he answered; as tardiness. much as he wanted and needed Randy Louder- "Randy, I'm glad you're here," Eric began, back's help, he was suddenly struck by the "because I think today we should begin by thought that perhaps Randy's personality and talking about the group itself-" his past experiences simply made it impossible Randy cut Eric off with a small, sarcastic for him to participate in the delicate process of laugh. "Uh-oh, I knew this was going to hap "go surrender that any kind of teamwork requires. pen," he said. "Listen, everyone, I know this is a chal- Before Eric could answer, Ray LaPierre lenge," Eric began, but he was cut short by stood up and walked over to Randy, bending Randy's pencil-tapping on the table. A mo- over to look him in the eye. ment later, Ray LaPierre was standing again. "You just don't care, do you?" he began, his "Forget it. This is never going to work. It's voice so angry it startled everyone in the room. just a waste of time for all of us," he said, more Everyone except Randy. "Quite the contrary- resigned than gruff. "We're all in this together, I care very much," he answered breezily. "I just or there's no point." He headed for the door, don't believe this is how change should be and before Eric could stop him, two others made. A brilliant idea never came out of a were at his heels. team. Brilliant ideas come from brilliant indi- viduals, who then inspire others in the organi- zation to implement them." Why doesn't this team work? "That's a lot of bull," Ray shot back. "You just want all the credit for the success, and you Reprint 94612X don't want to share it with anyone." To order, call 800-988-0886 "That's absurd," Randy laughed again. "I'm Or 617-783-7500 or go to www.hbr.org HARVARD BUSINESS BEYTEW , NOVEMBER OfMe anyin Arundhati's Upgrad-IMT C41 LEPP-May 9,2023 at Upgrad from May 2023 to Nov 2023. PAGE 4