The Wisdom of Teams: 3 key takeaways from a classic business book

Buzzy new business books hit the shelves all the time, but few truly stand the test of time. Ideas go in and out of fashion, and rapid advances in technology mean many business practices quickly become obsolete.

However, a select number of business books contain timeless principles worth passing on for generations. “The Wisdom of Teams: Creating the High-Performance Organization” by Jon R. Katzenback and Douglas K. Smith is one such book, called a “classic” by PwC and a “definitive work” and “clarion call” by Harvard Business Review.

Greg Ho, president of Spring Mountain Capital and one of the earlier employees at McKinsey and Company, said the book is one of the most important reads of his career.

“There are many, many books on teams…but this is one of the seminal books that I think is very important,” Ho said. He noted that the principles of the book are especially relevant in the era of remote work, when team-building is more critical than ever.

We recommend reading the book cover to cover at least once — with a highlighter in hand. But in case it takes a while to get around to it, here’s a quick summary of the book, along with some key takeaways.

What Is “The Wisdom of Teams” About?

The Wisdom of Teams explains why teams should be the foundation of any organization. Flexible, efficient teams, the authors argue, help enhance organizational performance and effectiveness.

The book is based on research and interviews with people from thirty companies, unveiling how and why the best teams succeed — and why they fail. Various case studies illustrate the key points, helping the reader understand team dynamics at a micro level.

3 Key Takeaways from “The Wisdom of Teams”

“The Wisdom of Teams” is chock-full of inspiring stories and actionable advice for CEOs and top executives. The case studies explain everything from how to shift from an individual to a team focus, to how to identify great team leaders.

Here are a few of the most important points from the book.

Great Teams Unite Around a Common Purpose

Katzenback and Smith argue that successful teams are driven by a common goal — and a commitment to those goals — rather than by “rah-rah” team building activities. Perhaps this means leaders should invest less in trust fall activities and free breakroom snacks, and more time hiring people inspired by and aligned with the company vision.

Team Leaders Come in All Shapes and Sizes

The book also suggests that successful team leaders don’t fit a specific description. They might be introverted or extroverted, bold or cautious, energetic or calm. Rather than looking for traits typically associated with top leaders, CEOs should look to people who foster respect, admiration, and collaboration among their teams.

True Teams Have Mutual Accountability

“The Wisdom of Teams” defines a true team as “a small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable.” The mutual accountability is a key, often-overlooked factor that can make or break a team. Without this element, a team is simply a group of individuals. Though some of these people may have individual successes, the team won’t reach its full potential unless everyone holds themselves accountable.

“The Wisdom of Teams” has so much to offer leaders who are eager to foster high-performing teams within their organization. Really, these takeaways just scratch the surface of all there is to learn. Add it to your reading list and let us know what you think!