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ASIA INSIGHTS2018A COLLABORATIVE STUDY WITH THE SINGAPORE MANAGEMENT UNIVERSITYCONTENTSThe Making of Successful Teams02030506101215161820pageReferences About Great Place to WorkGreat teams beget high-performing organisations and great places to workPsychological safety and why it mattersDrivers of psychological safety Capturing other benefits of high psychological safety Understanding market differences across Asia PacificSummary and recommendations Recommendations for leaders.Great Place to Work. All rights reserved. Great Place to Work. All rights reserved.By Richard R. Smith and Valerie TanA STUDY ON PSYCHOLOGICAL SAFETY AND GREAT WORKPLACES IN ASIA PACIFIC THE MAKING OF SUCCESSFUL TEAMS:INTRODUCTIONTechnological breakthroughs and market forces continue to disrupt the way businesses operate both locally and around the world. As a result, many leaders are looking for effective ways to transform their workforces to navigate these disruptions and be better equipped for the future of work.As organisations are grappling with disruptions, many are recognising the need for high-performing teams that can embrace the challenges ahead. Some firms adopt lean-team approaches that leverage design thinking to spur innovation, while others strive to foster more global teamwork and entrepreneurship. Peter Weill and Stephanie Woerner (2018) of MIT Sloan Management School noted that creating new roles and upskilling employees are some common initiatives that companies include in their strategic roadmap for growth in the digital economy. While there are many attempts to transform and create a sense of teamwork to embrace challenges of the future, it seems clear from our research that some organisations are succeeding in more ways than others.One of the key underlying reasons for the disparity is the focus on organisational culture an area which is often taken for granted or overlooked during transformations. By executing structural changes without taking cultural factors into account, even the best intentions and plans often fail to yield anything but confusion amongst the squads. Employees could also end up feeling burdened by these new initiatives rather than enabled./02ASIA INSIGHTS 2018Hence, organisations must identify core cultural building blocks and be willing to invest in them. This leads them to stay competitive while helping teams on the ground to embrace change cycles and feel empowered to drive new opportunities for the collective good. Studies tell us that a strong and positive teamwork culture is one such building block that provides organisations with the greatest leverage.Drawing on existing literature as well as our own research, we set out to answer this question: what is the best approach to foster quality teamwork that transforms companies into great workplaces that are future-ready? We considered this research question specifically in the context of Asia Pacific a region where Gartner predicts that 80 percent of traditional companies may lose 10 percent of their market share by 2021 if disruptions are not well considered and addressed. For this purpose, we examined the Great Place to Work data gathered from over 800 organisations with more than 400,000 survey respondents across the Asia Pacific region.1For companies surveyed within the Great Place to Work database, the best companies or the best here refer to organisations within the Asia Pacific region that have been ranked among the 2018 Asias Best Workplaces lists, while the rest refer to unranked organisations in the region that participated in the process.1Great Place to Work. All rights reserved.A sense of belonging and relationship perceived by team members Feelings of cooperation and collaboration amongst team membersPerceived willingness by team members to give extra effortAccording to a study published by the Harvard Business Review, the amount of time managers and employees spent on collaborative activities grew by at least 50 percent over the last 20 years. In addition, more than 75 percent of an employees day is now spent communicating with colleagues.With high-intensity, high-frequency workplace interactions becoming the new normal, the need for a positive teamwork culture has significant implications for many Asia Pacific organisations. It has become imperative for companies to shift towards a team-based organisational structure a way of working that results from pressure to make rapid decisions, reduce inefficiencies, and continually improve work processes. Longitudinal research studies also suggest that there is a positive link between teamwork and organisational, operational and financial outcomes.Our study of Great Place to Works Asia Pacific data revealed a notable difference between the Best Workplaces and other organisations. In the Great Place to Work survey2, we looked at three specific behavioural elements of teamwork, measuring the degree to which they are perceived to exist in the organisation:GREAT TEAMS BEGET HIGH-PERFORMING ORGANISATIONS AND GREAT PLACES TO WORK1. CONNECTEDNESS2. COLLEGIALITY3. CONTRIBUTION/03ASIA INSIGHTS 2018The construct of the Great Place to Work survey is based on a total of 58 affirmative statements. Respondents are asked to rate each statement using a 5-point scale, starting with 1 (almost always untrue), 2 (often untrue), 3 (sometimes true/ sometimes untrue), 4 (often true) and 5 (almost always true). The data points in the charts within this report refer to the average of all valid ratings. 2 Great Place to Work. All rights reserved.As Figure 1 shows, employees in the Best WorkplacesTMrate teamwork higher compared to employees in the rest, and this difference is significant. While the strategic importance of teams to organisations as well as the value of teamwork is undeniable, it does not fully shed light on other more pertinent questions. For instance, why do some teams outperform others despite having very similar member compositions? Why do some teams readily embrace challenges to achieve positive results while others do not? This information alone also does not tell us what exactly produces the right environment for teamwork. For companies looking to build a culture that epitomises the 3Cs of teamwork for the benefit of the organisation, where should they even start? The answer to all the above questions lies in what is referred to as psychological safety. 4.24.33.83.9ASIA BEST ASIA RESTPSYCHOLOGICAL SAFETY FIGURE 1TEAMWORKPERCEPTION OF PSYCHOLOGICAL SAFETY AND TEAMWORK (BEST VS REST)/04ASIA INSIGHTS 2018Great Place to Work. All rights reserved.“Psychological safety is a sense of confidence that the team will not embarrass, reject or punish someone for speaking up,” wrote Harvard Business School Professor Amy Edmondson. A psychologically safe environment is one where interpersonal trust exists, and mutual respect is given daily. It is an environment where people are comfortable being themselves. Tech giant Google is the perfect example of an organisation in which teams form the primary unit by which all work gets done. Yet, Googles management soon realised that even in a progressive, team-based organisational structure, not all teams thrived or performed well. It was a deceptively simple issue, yet no one could unravel the mystery.After studying hundreds of teams and employees to find a pattern, project researchers found that members of high-performing teams were more likely to feel secure with one another, to admit mistakes and show vulnerability, to partner with others, and to take on new roles. These are all attributes of psychological safety, one of the five contributing factors that Google had identified as essential to the building of successful teams, and the most important by far.In other words, they found that high-performing teams were not defined by who its members were but by how they treated one another. Individuals who feel a significant degree of psychological safety are less likely to leave the organisation, “more likely to harness the power of diverse ideas from their teammates, they bring in more revenue and theyre rated as effective twice as often”.Referring to our own Asia Pacific study in which we compared the Best WorkplacesTMwith the “rest”, we observed that psychological safety (defined by employees perceptions of a mentally and emotionally healthy workplace, and of leaders recognising honest mistakes) is significantly more positive in the Best WorkplacesTMas well (see Figure 1).To better understand the relationship between psychological safety and teamwork in Asia Pacific, we also tested a variety of other important factors in our analysis. Accounting for country differences, company size and industry dynamics, the results indicated that psychological safety had 10 times the impact on teamwork relative to all other organisational climate factors combined. PSYCHOLOGICAL SAFETYORGANISATIONAL CLIMATE FACTORSTEAMWORKPSYCHOLOGICAL SAFETY AND WHY IT MATTERS/05ASIA INSIGHTS 2018Great Place to Work. All rights reserved.More than remuneration, recognition and development opportunities, it is a sense of psychological safety that drives people to contribute more, take more risks and perform better as a team. While this pattern was evident in both the Best WorkplacesTMas well as the rest, it was much stronger in the former group.In order to provide practical insight for managers who are leading teams in the Asia Pacific region, we delved deeper into our data and explored three areas in greater detail:What are the drivers of psychological safety required to create the ideal environment for teamwork? Beyond teamwork, what other organisational benefits could result from a high level of psychological safety?Do the drivers of psychological safety vary in importance across the Asia Pacific offices?1.2.3.Prior research studies point to a number of important factors which are deemed essential for creating a supportive work environment, one which provides employees and teams with a sense of psychological safety. Not surprisingly, this includes the behavioural integrity of leaders, supportive organisational practices, and relationship networks within the organisation. To verify this, we identified several constructs and tested them in the Asia Pacific context, with the aim of identifying crucial areas of development that organisations and managers should focus on.BehaviouralIntegrity4.214.174.253.743.903.83OrganisationalSupportRelationshipNetworksMORE THAN REMUNERATION, RECOGNITION AND DEVELOPMENT OPPORTUNITIES, IT IS A SENSE OF PSYCHOLOGICAL SAFETY THAT DRIVES PEOPLE TO CONTRIBUTE MORE, TAKE MORE RISKS AND PERFORM BETTER AS A TEAM. FIGURE 2DRIVERS OF PSYCHOLOGICAL SAFETY (BEST VS REST)ASIA BEST ASIA RESTDRIVERS OF PSYCHOLOGICAL SAFETY/06ASIA INSIGHTS 2018Great Place to Work. All rights reserved.1. BEHAVIOURAL INTEGRITY OF LEADERSOur examination of the Best WorkplacesTMin the region pointed to three important considerations that contribute to employee perceptions of integrity among organisational leaders:Each of these measures employees perception of managements behavioural integrity, which can be linked to the overall trust in management and feelings of security. When employees do not have confidence in the promises or expectations of management, trust can erode, and doubts may surface regarding potential actions. In turn, these thoughts or feelings can have a negative impact on employee and team performance. In the longer term, the erosion of trust can lead to risk aversion, which limits creativity and inhibits positive actions at both an individual and group level. Our survey showed that organisations where leaders and management staff were perceived as role models, trusted to act on feedback and for the good of employees, also ranked highly when it came to feelings of psychological safety among employees and teams. Unsurprisingly, the Best WorkplacesTMscored higher in this area compared to other organisations (Figure 2).2018 ASIA BEST WORKPLACETMSPOTLIGHT: BEHAVIOURAL INTEGRITY OF LEADERSMars Incorporated (Mars) is a private, family-owned business with a century of history. Mars has more than $35 billion in sales from six businesses: Petcare, Chocolate, Wrigley, Food, Drinks, and Symbioscience.“Principles-based company with family values at its heart. Doing the right thing for people, planet and performance. Ive witnessed more than two decades of this company being true to its word, hiring principled talent and engendering huge amounts of goodwill and trust.” Employee of MarsManagement delivers on promisesManagements actions match their wordsManagement is honest and ethical in business./07ASIA INSIGHTS 2018Great Place to Work. All rights reserved.To test the correlation between organisational support of the employee and its impact on the level of psychological safety and teamwork, we examined the data in two distinct areas: work-life balance as well as employee development. Organisational support in these areas was defined by the following statements:Both are clear indicators of supportive organisational practices which result in employees feeling valued and cared for. Our data showed that overall scores were higher among the Best WorkplacesTM, where employees also perceived a strong sense of teamwork along with high levels of psychological safety (Figure 2). Furthermore, there are other areas in which organisations stand to gain by supporting employees in meaningful ways. Recent research has highlighted work-life balance as a significant factor in employee retention as well as employer reputation. In many parts of Asia, training and development is also seen as a lever for attracting the right talent as well as an indicator of a good employer.2. SUPPORTIVE ORGANISATIONAL PRACTICESPeople are encouraged to balance work life and personal lifePeople are offered training or development to further themselves professionally.2018 ASIA BEST WORKPLACETMSPOTLIGHT: SUPPORTIVE ORGANISATIONAL PRACTICES DHL is the leading global brand in the logistics industry, with about 90,000 employees in more than 220 countries and territories worldwide.DHL cares for the physical health of its people through events in support of wellbeing. One example is its World Heart Day campaign, which encouraged employees to go through a 60-day Health Journey to protect their hearts through diet, exercise, and a health screening.The My Talent World platform is an integrated learning platform that offers e-courses and multimedia materials such as videos and podcasts, to support employee growth. Employees can register for courses and are granted certifications upon completion. The portal also provides a holistic overview of each employees development plan, goals, succession plans and reviews. ./08ASIA INSIGHTS 2018Great Place to Work. All rights reserved.Intuitively, we know that relationships matter at work. Our daily interactions with others have a discernible i
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