Why Your Team Needs a Contract Now

A Simple Step to Stop Team Dysfunction

“We want to start working together instead of discussing how we should work together.”

The new team leader I worked with told me the above when we were planning how they could use their first team meeting time meaningfully.

When my daughter started working, the team she joined briefed her on all the technical and ‘business’ stuff but said nothing about how the team works together. They expected her to figure it out as they went!

I am constantly amazed by team leaders who assume they can put a group of people together, and they will ‘magically’ work as a team. Trying to work together without first agreeing on how to work together is like trying to solve a problem without first defining it and outlining the approach to solving it: it is a recipe for frustrations and failures!

In my experience, it is common for teams to dive straight into ‘business’ without first clarifying how they should work together. No wonder there are so many dysfunctional teams out there!

A company asked me to help their country-level leadership team because they are not working well together. The team members were all department managers and had known each other for several years, but they had lots of conflicts and were each doing their own thing instead of leading together. After talking to them, I learned that everyone had different assumptions and expectations about the team!

An effective, high-performance team is not a stroke of luck; it is a result of intentional effort. (High-performance teams that occur by chance are the exception, not the norm.) The intentional effort starts with figuring out how the team should work together and building a psychologically safe environment.

Team contracting is a powerful tool for building a psychologically safe environment and allowing the team to determine how best to work together.

“Trying to work together without first agreeing on how to work together is like trying to solve a problem without first defining it and outlining the approach to solving it.”

The Benefits of a Team Contract

Team contracting is a collaborative process where the team, as the key stakeholder, clarifies expectations, norms, and how they will work together. (Note: ‘contract’ used here refers to an agreement between team members, and not a legal document.)

By engaging in team contracting, the team unlocks a treasure trove of benefits, including:

• Clarifies expectations by eliminating ambiguity about roles and responsibilities, communication styles, acceptable behaviours, etc. With clear expectations, team members can focus on giving their best instead of being distracted by uncertainties in interpersonal relationships.
• Promotes open communication by establishing ground rules for healthy communication, conflict resolution, etc. This allows the team to feel comfortable sharing ideas and concerns.
• Builds trust and ownership by fostering accountability and responsibility through the collaborative contracting process. The process empowers team members and makes them feel valued and integral to the team’s operations.
• Encourages constructive conflict and reduces unhealthy strife and misunderstanding.
• Promotes more effective collaboration within the team by reducing unhealthy behaviours or attitudes.
• Promotes better relationships by helping team members understand each other’s needs, strengths, concerns, values, beliefs, etc. As a result, team members can better support each other, personally and work-wise.

The country-level leadership team I mentioned earlier used contracting to help them surface assumptions and beliefs. It took several hard conversations for them to get started. As they clarified each member’s expectations and agreed on how to work together, they began leading more effectively. (Employees noticed a change in the team’s relationship, too!)

Team contracting is not a once-and-done task. It is a shared agreement that needs regular reviews as team members gain experience working together or when the team’s composition or environment changes. By prioritising team contracting instead of diving straight into ‘business’, you are laying the groundwork for an environment where your team can thrive.

Whether you are a new team or one that has been operating for a long time, you can reap the benefits of team contracting. Your team needs a contract now. It is not too late to start!

What about your team?

How might your team benefit from contracting together?

How could you get started if you don’t have a team contract?