Unlocking Success In Teams: A New Evidence-Based Approach
How Personality Diversity In Teams Mirrors A Successful Marriage
Schopenhauer, the renowned 18th Century philosopher, once proposed a fascinating theory about successful marriages: opposites attract. The idea is that partners with complementary personality strengths and weaknesses come together to form a stronger whole. In a similar way but in a different domain, evidence large-scale global study illustrating the power and potential of personality diversity in teams. This new research, led by a collaboration between Oxford University, Melbourne, UTS, and UNSW, focused on startups but its principles and findings are likely to be equally applicable to any multifunction team within an organization, including boards of directors, project teams, and innovation teams.
The study used a multifactor approach to analyze the success of over 21,000 startups worldwide and uncover what factors were most important in their success. The study included many well-known startups that have gone on to become huge companies like Airbnb (San Francisco, CA), Spotify (Stockholm, Sweden); Atlassian (Sydney, Australia) as well as many others that have since folded.
The research used machine learning to infer the Big5 personality features of over 30,000 startup founders in 30 dimensions from their posts on twitter – a process that has been shown in other research to be as accurate as spousal assessments and found that the personality of founders trumped many of the other factors in terms of its relationship to success. However, what made the most difference of all was the combination of personalities in the foundation team. Teams comprising founders with a combination of different patterns of personality traits were up to ten times more likely to succeed.
Take the example of Airbnb. The founding team of Brian Chesky, Joe Gebbia, and Nathan Blecharczyk combined diverse personality traits – Chesky’s visionary leadership, Gebbia’s creative problem-solving, and Blecharczyk’s technical expertise. This diversity was key to Airbnb’s ability to innovate and disrupt the hospitality industry.
Complementary personalities among co-founders have often been a key driving force behind some of the most successful companies in history. This synergy of traits and skills has proven essential in building dynamic and resilient businesses.
- Hewlett-Packard (HP): Founded in 1939 in a garage in Palo Alto, California, HP stands as a testament to the power of complementary personalities in business. Bill Hewlett and David Packard, graduates of Stanford University, brought together a unique blend of skills and temperaments. Hewlett, known for his reserved and introspective nature, was a technical wizard. In contrast, Packard, with his outgoing charisma, excelled in sales and public relations. This balance of technical expertise and business acumen helped HP become a pioneering force in Silicon Valley.
- Sony Corporation: Established in 1946 in Nihonbashi, Tokyo, Sony was co-founded by Masaru Ibuka and Akio Morita. Ibuka, an engineer with deep technical knowledge, had a quieter demeanor. Morita, on the other hand, was the more extroverted of the duo, playing a crucial role in marketing and public relations. This combination of technical brilliance and marketing savvy propelled Sony to the forefront of the electronics industry.
- Adidas: The story of Adidas, founded in 1924 in Herzogenaurach, Germany, is a classic example of how complementary personalities can create a world-renowned brand. Adolf “Adi” Dassler and Rudolf Dassler started the company together, with Adolf focusing on the technical aspects of shoe design and Rudolf bringing his extroverted personality to bear on marketing and sales. However, their differing approaches eventually led to a split, with Rudolf forming Puma across the river, while Adolf continued to run Adidas. Despite their separation, both brands thrived, underlining the impact of their combined talents in the company’s early years.
While this new research focused on startups, the principles and findings are likely to be equally applicable to any multifunction team within an organization, including boards of directors, project teams, and innovation teams. For instance, a board of directors might benefit from a mix of strategic thinkers, detail-oriented implementers, and big-picture visionaries.
Forming diverse teams is not without its challenges. Differences in personality can lead to conflict and misunderstanding. However, with effective communication and conflict resolution strategies, these challenges can be overcome. It’s also important to foster a culture of respect and appreciation for different perspectives.
Industry experts and psychologists have long emphasized the importance of diversity in teams. According to Dr. Meredith Belbin, a British researcher and management theorist known for his work on team roles, “What is needed is not well-balanced individuals, but individuals who balance well with each other.” Indeed, the concept of diverse teams is not new and has been beautifully illustrated in popular culture. Consider the heist movie trope, where each member of the team is introduced with a specific skill and a distinct personality. This diversity is key to the team’s success.
Take the example of the Ocean’s movie franchise. The team, led by George Clooney’s character Danny Ocean, is composed of individuals with unique skills and personalities. Rusty Ryan (Brad Pitt) is the right-hand man and a con artist, Linus Caldwell (Matt Damon) is a pickpocket, Basher Tarr (Don Cheadle) is an explosives expert, and so on. Each member brings something unique to the table, and it’s their combined skills and personalities that enable them to pull off the heist.
This trope underscores the importance of personality diversity in teams. Each member’s unique skills and personality traits contribute to the team’s overall success, much like the findings of our research. As we move forward, it’s crucial to remember this lesson, whether we’re assembling a team for a startup, a corporate project, or even a heist!
Teams greater than the sum of their parts
As we step into the New Year, these findings offer a fresh perspective on team formation and success. It’s not just about assembling a group of high achievers, but about finding the right mix of personalities that can work together to create something greater than the sum of its parts. This new research shows that personality diversity is a key factor in the success of startups and other teams.
By forming teams with members who have different strengths and weaknesses, teams can leverage their collective potential and overcome their individual limitations. However, personality diversity also poses some challenges, such as conflict and misunderstanding. Therefore, teams should also develop effective communication and conflict resolution skills, as well as a culture of respect and appreciation for different perspectives. How can you apply these insights to your own team? What are the benefits and challenges of personality diversity in your context?