The action: Establish a written contract in your team to agree on how to conduct meetings, how you communicate, etc.
The long form: Every group has norms. How do we do things in our team? How do we argue? What can we expect from each other?
But according to research by Therese Sverdrup of the Norwegian School of Economics, if you don’t make a conscious effort to write the norms, they will be decided by the loudest voices in the group.
This is where the team charter comes in. It is a written contract between the team’s members on what we can expect from each other.
There are particularly two important traits of a good charter: It should be unanimous, in that everyone should agree to its content. And it should be so clear that everyone has the same definition of what the statements mean in practice.
Unanimous: For the charter to be relied upon, everyone needs to agree to everything in it. On a now-withdrawn episode of the podcast Coaching for Leaders, an example was given of a group who wanted to include the statement, “We trust each other.” However, when it came time to signing the charter, one member of the team spoke up and said, “I cannot sign this. I am new to the group, and have yet to decide whether I can trust you.” Instead of rushing, they gave him more time, and a few months later he felt he was in a position to sign.
Clear: It is tempting to add nice-sounding statements like, “We treat each other with respect.” However, it is not yet clear enough to avoid misunderstandings. To one person, treating someone with respect may mean being polite and not arguing with their opinions. To someone else it may mean speaking the unobstructed truth, even if it may come across as a bit harsh. Ask the question, “What would treating each other with respect look like?” for each statement until you have an unambiguous definition everyone can recognise.
An example
Here is an example of a contract for the top management team of a medium-sized industrial company. A typical team charter usually contains sections on purpose, values, group expectations, but it really is up to you.Purpose
(This is the hardest part, but often ends up being the most useful. Why do you work together? What is this team for? Having a stated purpose or common cause can help you avoid distractions or petty disagreements.)The main mission of this management team is to ensure that Company is still in profitable existence 100 years from now. We are responsible for expertise in three key areas:
- Market: We understand the drivers of demand and create products that customers want. We shape and follow a strategy that makes us unique and highly profitable.
- Operations: We run an efficient business, making the most of our machines, processes and people. We know that good leadership is essential for letting people thrive.
- Capital: We aim for better-than-average industry returns on our investments. We understand the financial markets, and are good stewards of other people’s money, reallocating when needed.
We expect all leaders to know our market, how we make money, and how to bring out the best in our team.
As supportive colleagues, we help each other become better leaders in our departments.
Together, we remove barriers to the pride of workmanship on all levels of the organisation.
How we work together
- Healthy Debate: We encourage lively discussions. It’s our duty to disagree, even if we’re the only ones with a particular viewpoint. We support those who dare to disagree—it fosters healthy dissent. We avoid “violent agreement,” where we say we agree but fail to follow through afterward.
- Loyalty to Decisions: Once a decision is made, we stay loyal to it and avoid revisiting unless new information emerges.
- Clear Communication: We’re candid with each other. Directness is better than polite vagueness. If the tone gets too harsh, we address it constructively.
- Understanding Before Accusations: Instead of assuming ill intent, we seek to understand why someone disagrees. We ask clarifying questions before making accusations.
- Honest humility: We’re all new to our roles. No one expects us to know everything or put on a leadership act. We’re unafraid to ask about acronyms, seek help for problems in our departments, or flag decisions we don’t fully grasp. We are professional, but not afraid of asking stupid questions. We avoid unnecessary jargon. Our group should be accessible to both newcomers and people outside the team.
- Respecting Time:
- Arrive a couple of minutes early rather than late.
- Put away screens during meetings.
- Prepare meeting documents that are easy to understand and give input on
- High Expectations: We hold each other to high standards. Everyone should be able to receive advice on how to improve. At the same time, we recognise that personal matters affect us all, so we’re generous with one another when that is called for.
Other issues
Some groups like to include more details on when and where to meet, the format of meeting documents, how to share learnings etc., but these may also be kept in a separate document.Further reading:
Bernhard Scholda’s master’s thesis sums up the existing research on team charters (as of 2020).
The company’s identification on Market, Operations and Capital is inspired by Cedric Chin’s excellent blog Common Cog. He in turn attributes the idea to researcher Lia DiBello.
See also:
First Forty 