Team effectiveness plays a pivotal role in improving the client experience

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:

1. 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.
2. 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.
3. 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.
4. 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.

Understanding this difference helped Susan see that presenting Dave with more facts wouldn't be effective; instead, she resolved to give greater consideration to his instincts and
beliefs.

Assessing and hiring the right team members

For optimal team effectiveness, it is essential to hire individuals who align with the team's goals and possess the necessary skills, attributes and values. Implementing robust strategies for assessing and selecting candidates can significantly contribute to building a high-performing team.

By incorporating the following strategies, organisations can make well-informed decisions during the hiring process, setting the stage for long-term success:

1. Clearly define job requirements: Before initiating the hiring process, clearly define the skills, experience, and cultural fit required for the role. This ensures that candidates are evaluated against the specific criteria necessary for team success.
2. Psychometric assessments: To make informed hiring decisions, it is helpful to implement robust selection assessments that delve into candidates' analytical ability, client relationship management skills, and ethical integrity. These assessments provide valuable insights into key competencies required for success in wealth management roles and ensure that the selected candidates possess the necessary qualities to meet clients' needs and uphold ethical standards.
3. Structured interviews: Conduct structured interviews that focus on assessing candidates; collaboration skills, adaptability, and their ability to work effectively within a team. Behavioural-based questions can gauge past experiences and behaviours relevant to team dynamics.

Conclusion

In the wealth management and financial advice sector, team effectiveness plays a pivotal role in delivering exceptional client experiences and achieving business success. By understanding the traits of high-performing teams, assessing individual strengths, and creating an environment that allows team members to play to their strengths, organisations can optimise team effectiveness.

In addition, by actively supporting professional development, team leaders and organisations demonstrate a commitment to their employees' growth and success. In turn, team members become more motivated, engaged, and empowered to contribute their best efforts, resulting in increased productivity, better client service, and overall team effectiveness.

Embracing clear communication, building trust, and leveraging the diverse expertise within the team will enable wealth management professionals to meet the evolving challenges of the industry while delivering outstanding results.

Jodie Hughes is a business psychologist at OE Cam LLP