People working together in teams have the potential to produce more or higher-quality outputs than would have resulted if the individual efforts of team members were later combined.
Process gain refers to the performance improvements that occur because people work together rather than independently. Process gain is the goal of working in teams – people working together doing more and doing it better than would be possible working alone.
Unfortunately, many teams do not realize process gain and instead experience process loss. Process loss occurs when a team of people working in a group or team together performs worse than the individual members would have if they had worked alone.
When possible, managers should create shared team goals and provide feedback. High-performing teams have clear and challenging goals that all team members are committed to, and create sub-goals and milestones against which they measure themselves.
Team rewards also motivate effective teamwork behaviors. Tying team rewards to team performance motivates team members to pursue team goals rather than individual goals.