What Does a Team Leader Do?

The senior management team (TMT) is a team composed of senior managers who are mainly responsible for strategic decision-making in the organization. It is the core group that determines the development of the organization and affects the performance of the organization. In a modern corporate system, it usually consists of members of the board of directors, chief and deputy general managers, and other senior managers who participate in strategic decisions. The research on the senior management team of the company has important practical significance. The senior management team is a new type of core decision group (CDG, Core Decision Group) organization that has emerged in order to adapt to the complex and changing business environment. The development of this form is closely related to the characteristics of the enterprise and its operating environment.

Senior management team

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The senior management team (TMT) is a team composed of senior managers who are mainly responsible for strategic decision-making in the organization. It is the core group that determines the development of the organization and affects the performance of the organization. In a modern corporate system, it usually consists of members of the board of directors, chief and deputy general managers, and other senior managers who participate in strategic decisions. The research on the senior management team of the company has important practical significance. The senior management team is a new type of core decision group (CDG, Core Decision Group) organization that has emerged in order to adapt to the complex and changing business environment. The development of this form is closely related to the characteristics of the enterprise and its operating environment.

Chinese name

Senior management team

English abbreviations

TMT

Definition

New core decision-making group

Usually staff

Members of the board of directors and chief and deputy general managers

The initial research of top management teams (top management teams) focused almost exclusively on individual CEOs or individual leaders, mainly on the impact of individual characteristics of top management teams on organizational choices. / . The head experts believe that the senior management team refers to the people occupying the middle and senior levels of the organization. They belong to the strategic decision-making and execution layer of the enterprise, and are responsible for the organization and coordination of the entire enterprise. Compared with the control, the decision-making function of the senior management team is stronger than that of the general work team. The senior management team influences the strategic direction of their company through strategic decisions.

The Chinese management academia basically still follows the theory of individual behavior of leaders, and rarely studies the entire senior management team from a team perspective. With the rapid expansion of enterprises, many companies have actually established effective management teams (especially senior management teams) to determine the development direction and pace of the enterprise. In China, there is relatively little research on senior management teams. On the theoretical level, only a small number of researchers such as Sun Haifa have proposed a basic theoretical framework for senior management team research, which points out the direction for the research of Chinese senior management teams. Zeng Deming listed on China The governance structure of the company's senior management team was studied. Jiao Changyong and others summarized the characteristics that a reasonable and effective senior management team should have, and discussed the construction of the senior management team from the aspects of the personality characteristics of the senior team members and the attributes of the team system. ; Some scholars discussed the senior management team with the theory of harmonious management and so on.

At the level of empirical research, it is mainly "An empirical study of executive characteristics and corporate performance of Chinese listed companies" by Wei Liqun and Wang Zhizhi. The average age of senior management team members in Chinese companies is positively correlated with organizational performance, although there are some weak negative Correlation exists, and the relationship between the background diversity of senior management and organizational performance has not been clearly verified in the research; Wu Jianqin empirically analyzes the impact of the term of the senior management team on performance through questionnaires and personal interviews.

From the discussion and definition of the management team, you can understand how to form an efficient enterprise senior management team. In fact, the senior management team also needs effective management.

1.Risk model of senior management team process

2. Investigation and analysis

3. Research on the risk influencing factors of the decision-making process of the senior management team

The "three-factor scenario theory" of modern groups states that for the leadership group, its effectiveness is affected by three factors: (1) the quality of the leadership; (2) the quality of the leader; (3) environmental factors. Combined with the analysis of the decision-making process, the following sections will analyze how each of these three scenario factors affects the risk in the details of each decision-making process.

In the "decision preparation" stage, the environment puts forward decision requirements, and decision makers set corresponding goals, collect information, and perform information analysis. The process may be due to the decision maker's judgment ability, business experience, and participant's information acquisition ability, communication ability, and judgment. Risk.

In the "Developing Alternatives" phase, inconsistent understanding of goals, limited experience and innovative ability of decision makers, and asymmetry of information about decision participants will have adverse effects on the decision-making process. Related factors are: participants' communication ability, judgment ability, decision maker judgment ability, communication ability, business experience, leadership style and innovation ability, as well as the pressure from time and society in the environment. During the "evaluation of alternatives" phase, the factors that can be identified are: the business experience of decision makers, communication skills and judgment skills.

In the "decision-making" phase, the main influencing factors are: the business experience of the decision maker, the ability to communicate, the ability to judge, and the allocation of rights in the decision-making environment.

In the "executive decision-making phase", possible risks include untimely feedback of information, incorrect feedback information, and inability to share information. The factors that cause these risks are: participants 'business experience and communication skills, decision makers' judgment capabilities, and social and group pressures in the environment. In summary, the risk and its influencing factor research mechanism of Figure 6 is obtained.

Based on the previous research on the senior management team, this paper analyzes the characteristics of the decision-making process of different types of enterprises by taking the decision-making process as the starting point, and proposes a risk research model for decision-making. Based on this, combining the current research results of decision-making mistakes and the theory of senior management team organization, the influencing factors of each risk are analyzed, and then a research model of risk and its influencing factors is obtained. Using this model, combined with information analysis methods, such as AHP Analytic Hierarchy Process, can analyze the application value of specific decision-making processes and risk mechanisms.

Corporate consistency of senior management team

Corporate consistency refers to the consistency of corporate goals and behaviors. Only the establishment of a true senior management team is the only way to achieve corporate consistency. But this does not mean that every part of the enterprise is exactly the same and does the same thing. It means that every part of the business must work together to support each other.

In fact, the strategic operation of a team, that is, the implementation of the strategy and the operation of the enterprise, does not entirely depend on the personality, behavior and background of the CEO. It depends on the character, behavior and experience of the entire managerial community and how they can make the most of these advantages.

The core factor for real team collaboration is the coordination and unification of their behavior, that is, the senior management team is committed to establishing a common collective interaction. It includes three main factors: the quality and quantity of information exchanged, cooperative behavior, and joint decision-making. In other words, a coordinated senior management team can share information, resources, and decisions.

So what is the measure of the coordination and unification of behavior? Let people take a look at two distinct senior management teams. The first company was called Harsa Industries A. G. (Editor's translation: Haza Industrial Corporation), the company's senior management team's lack of coordination and action, the company suffered a lot. In another company, people call it Media Tech, and its senior management team showed a fair level of coordination. In the face of environmental change, the company successfully achieved a major transformation in the organization of the enterprise.

Kazak Industries is a European medical products company with 6 billion assets. Its three main product lines are dental, surgical and diagnostic products.

From the early to mid-1990s, these three series of products began to lose to competitors in Scandinavia, the United States and Japan. As the heads of the three product lines struggled to find the root cause of the failure, they finally realized that there were fundamental issues in manufacturing costs and quality. Although it is not difficult to come up with solutions at the entire company level, the president of each product group said: "People are responsible for this series, people know that there are problems, and people will solve them." The result is only a series of small changes of little significance. The performance of the entire company continued to decline.

In a survey of team behavior coordination, the overall score of Kazakhstan was only 2.4 points (scoring standard is 1-5 points). This is a very low score compared to other companies tested. Investigation shows that in fact, the CEO of Kazakhstan maintains a close relationship with some employees, but the presidents of the above three product groups have never met each other, let alone have little communication. They are neither cooperative nor interactive.

As a result, the company was eventually taken over because it only had a group of management elites, but it did not form a senior management team. All managers have their own strengths, but they have no ability to act collectively. The company suffered huge losses for this.

In contrast, media technology companies are a more promising example. It has many interesting similarities with Haza Industries. The company is of similar size and also has three product lines. However, the products of media technology companies are educational, commercial and industrial publications.

When the new CEO of a media technology company took office, he immediately saw the company's huge opportunities in collective action, sharing resources and tackling common problems. The three types of products are facing huge changes in terms of technology and competition. However, through the efforts of the senior management team, the three product groups coordinated the complete change of the entire company. It is precisely because of the highly integrated management team of media technology companies that the company's successful transformation becomes possible.

When the company's managers were surveyed for behavioral coordination, their score was 3.8, well above the median of 2.5. The survey showed that the company's managers, including the chief executive, spend a lot of time with each other, complete many things together, work together to solve problems and share information.

Collective action by senior management team

In fact, any senior management group can turn itself into a real team like a media technology company.

First, this group must realize that they are a team. Individuals need to know if they are part of a team. Although this may seem obvious, the responsibilities of senior management in many companies are unclear and uncertain. Every time you ask who is part of the senior management team, you always get a different answer. The senior management team should also have a name. At media technology companies, they call themselves the Glen Cone Committee, named after the place where they first met. It is here that they recognize the environmental trends on which they are acting.

The top management group must do "real work." Most senior managers just approve the work of others, they need to find out the facts, analyze the problems and solve them in person. Team members should meet at least a few times a year and hold in-depth discussions outside the company at least once. At the Haza company, the senior management team meets twice a year for half a day to listen to the representative's speech. Media technology companies meet once a month, and they also have task teams that often meet each other.

The department managers also need to give them some cross-functional responsibilities. Whether it is a special arrangement or a fixed arrangement, they are required to consider the entire enterprise. Another good way is to let managers selectively rotate, or have employees with work experience in multiple internal units join the management team. Link 1/3 of the manager's incentive pay to the overall performance of the company. Whether before or after receiving the reward, managers must always think about the company. The most important thing is that the CEO of the company is responsible for identifying opportunities for management and senior team collaboration to ensure that the team operates in the established manner.

But teamwork at senior management levels can't be established with a single order, especially when a company is facing a crisis. It must be cultivated at all times and always ready. If an enterprise organization encounters a major environmental change, the chief executive cannot say, "Let people work together." Coordination of behavior, like all other resources, requires advance investment of funds and time to develop. Without this coordination, companies like Haza will not be able to act in unison. And companies like media technology companies can rely on collective power to quickly take strategic action.