Self-managed teams can significantly enhance innovation in organizations, but while the autonomy granted presents a fertile ground for innovation, it is the supportive and strategic role of leaders that cultivates this potential into tangible innovative change.

In a rapidly evolving world, the drive for organizational innovation is more pressing than ever. The emergence of self-managed teams (SMTs) presents a pathway for organizations to enhance agility, engage employees, and increase creativity. Self-management promotes decentralization, granting teams the freedom to make decisions without conventional managerial supervision. This autonomy, in theory, can spur innovation, as teams directly address the challenges they face and can swiftly adapt to evolving demands and opportunities. Nonetheless, converting autonomy into innovation is not a straightforward process. It requires a nurturing environment that encourages risk-taking, values learning from mistakes, and maintains strategic alignment with organizational goals.

Paradoxical leadership remains essential in guiding SMTs, especially during their transition towards self-management. A key barrier to innovation within SMTs is striking the right balance between routine operations and the pursuit of novel ideas. Teams often become so engrossed in daily tasks that they lack the time, discipline, or incentive to explore new strategic directions. Leadership is crucial in establishing a new equilibrium between exploitation and exploration. However, even as teams undertake their exploration duties, aligning their efforts with the organization's goals presents a challenge. Without a traditional hierarchical structure, it becomes difficult to prioritize initiatives or identify areas where innovations can add significant value. Leaders can address this by encouraging regular strategic dialogues, connecting team efforts to the broader organizational mission, and providing feedback that guides them towards impactful innovations.

Leaders and self-managed teams

Implementing new plans can also be challenging for SMTs, particularly in sectors like the public domain, where hierarchical decision-making is deeply entrenched. At first glance, the shift to self-management appears to reduce inertia by reducing decision-making layers. However, this newfound responsibility, particularly in the uncertain realm of innovation, can induce insecurity among team members, burdened with significant responsibility. This situation can lead to a new form of team-level inertia. Leaders must build confidence within their teams and reassure them of their support, even in failure, to foster a culture of innovation.

Moreover, initiating change often requires collaboration with external parties and institutions, which may adhere to more traditional operational models. Despite a team's decision-making autonomy, external partners and institutions might not view the team as a legitimate negotiation partner, expecting instead to engage with traditional authority figures. This perception complicates accessing decision-makers or influencing the other party. Leaders must step in to "lend their authority," ensuring the team's legitimacy is recognized by political and institutional actors, thereby enabling effective negotiation and influence.

Teams and innovations

Sometimes, team dynamics themselves might be the root of issues. Innovation becomes quite difficult in a team coping with internal conflicts or, conversely, a noticeable lack of collaboration and feedback among members. Such problems often remain unresolved without targeted intervention. Leaders need to have the insight to recognize when a team is unable or unwilling to solve their own internal dysfunction. In those cases it falls upon leaders to be proactive in reorganizing these teams. This might involve enlisting external coaches for fresh insights, restructuring the team to enhance dynamics, or making tough calls on team composition, which could include replacing or even removing members. These actions aim to inject new energy into the team and steer it back on the path to innovation.

Finally, leaders must also lead by example in fostering an innovative spirit within their organization. By adopting unconventional methods and challenging the status quo, they establish a benchmark for innovation. This behaviour not only sets a precedent but also helps to cultivate a safe environment for risk-taking. It encourages team members to freely share bold ideas, inspired by the initiative their leaders demonstrate.

In conclusion, fostering innovation within SMTs extends beyond merely providing autonomy. It necessitates a supportive environment that encourages teams to challenge the status quo, embrace risk-taking, and pursue new opportunities. Crucially, this environment is cultivated by leaders who are not only engaged in their teams' endeavors but also provide unwavering support, especially when challenges arise. Despite the self-managed nature of these teams, the role of leadership in nurturing innovation remains indispensable. By actively engaging with their teams, leaders can unlock the full innovative potential of SMTs.