Lift outs: how to acquire a high-functioning team

Lift outs: how to acquire a high-functioning team

Lift outs: how to acquire a high-functioning team

Groysberg B., Abrahams R. Harvard Business Review, December 2006, Vol. 84 No. 12, Start page: 133 (8 pages)

Purpose – To describe the practice of hiring away whole teams from a competitor. Design/methodology/approach – States that this is a high-risk, high reward strategy, potentially enabling firms to gain capacity and inflict financial or competitive damage on a rival. Points out that although companies can build capability by making strategic individual hires, the process is slower, adding that the success of star performers depends in part on their team relationships. Outlines four stages in this process, providing examples of successes and failures to illustrate the advantages and risks of a legitimate “lift-out”. Discusses the courtship phase, intended to ensure that the market opportunity exists, define shared business goals and strategies, examine assumptions about the team’s external relationships and start discussions with the team. Stresses that after the team has transferred, the first priority should be to integrate the team leader with the new company’s executive leadership, emphasizing the importance of cultural compatibility. Reflects on the need for subsequent operational integration followed by full cultural integration. Observes that an unsuccessful lift-out can impair employees’ effectiveness for many years, destroying relationships with former colleagues, clients and vendors. Points out that lift-outs represent a gamble on credibility, portability of performance and human capital both for teams and for hiring companies. Originality/value – Concludes that team lift-outs are an economical and effective manoeuvre in the war for talent. ISSN: 0017-8012 Reference: 36AA871

Keywords: Competitive advantage, Recruitment, Team performance, Team working