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a skills-based transformation that can create teams diverse <br />enough to be vibrant and innovative, while remaining inclusive <br />and cohesive enough to be effective. That’s easier said than done. <br />Decades of research show that diverse teams, while often high <br />performing , also encounter obstacles and face resistance. <br />Managers who attempt to reshape their workforce without first <br />acknowledging the challenges of difference risk getting mired in <br />conflict and acrimony, which can undermine effectiveness. <br />What we have found in our work advising some of the world’s <br />most high-performing firms on how to accelerate transformation <br />and drive growth is that successful leaders strive to identify <br />shared values and build change upon common ground. This <br />means that managers need to not only evaluate technical skills, <br />but also to clearly communicate their organization’s shared <br />mission and hire people who will be inspired to dedicate their <br />talents to it. <br />What Makes A Great Team? <br />In 1997, McKinsey declared a “War for Talent” and advised their <br />clients to focus on recruiting and retaining the “best and the <br />brightest.” They suggested that firms should create compelling <br />“employee value propositions,” invest in A players, develop B <br />players, and move quickly to get rid of C players. <br />Yet it soon became clear that this approach failed to yield results <br />because of unintended consequences that resulted from perverse <br />incentives. In fact, there is significant evidence that it contributed <br />to the destructive culture and ultimate downfall of Enron, <br />because the focus on individual rather than team performance <br />encouraged employees to undermine their colleagues. The lesson <br />is that it is not individuals, but teams, that get results — especially <br />in high-value work such as creative work, complex analysis, and <br />scientific research.