How to Build an Effective Project Team? 

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One of the first tasks in project planning is assembling the project group, that is, the project team. This involves identifying the right people and allocating them to the project for its duration. Even the most experienced project manager cannot successfully deliver a project without a strong team to fill the required roles and responsibilities. 

However, building an effective project team is not limited to finding the necessary expertise. It also requires a team that can work together harmoniously and collaborate effectively. 

For this article, we interviewed Jani Leino, one of our project directors. He shares his experience of the different stages of creating a project group and his best practices for building a high-performing project team. 

Contents: 

What is a project team? 

Who is part of the project team? 

Best practices for building a project team 

What Is a Project Team? 

Let’s start with the basics: what exactly is meant by a project team, and how does it contribute to successful project management? Leino explains: 

“A project team is a group of people who work together to achieve the project’s objective. The project team consists of the project manager and other team members responsible for delivering the project’s outputs. An effective project team must cover all necessary areas of responsibility and expertise and be capable of delivering the project according to its requirements.”  
 
Each project team is tailored to a specific project and should be constructed according to the project’s tasks and requirements. But what is the definition of a project? 

“A project is a temporary undertaking or assignment with a defined start, end, and deliverable. When a project begins, a suitable group of people is selected to support the project manager. However, project managers do not always have the opportunity to choose their own teams. Resources are often assigned through the line organization, and this adds its own flavor to project management,” says Leino. 

Who belongs to a Project Team? 

Project team members typically include the project manager and individuals responsible for different functional areas. Their responsibility is to deliver their assigned part of the project within the required schedule and within the limits of approved investments and available resources.  

Other stakeholders in the project include the project steering group and, of course, the customer, or project owner. These parties are not responsible for the project’s day-to-day execution and therefore are not considered members of the project team itself. 

Project Manager 

The project manager, or in some cases the project director, is responsible for the execution of the project. They report on the progress of the project to the project steering group and the project owner. 

To lead a project team effectively, a project manager must possess expertise across multiple areas. They need a broad understanding of the business context surrounding the project as well as strong people management skills. 

 At the same time, they must understand the individual work streams sufficiently to provide support to team members throughout the project. When selecting a project manager, extensive leadership experience and previous project work are therefore particularly valuable.  

Project Team 

The primary responsibility of the project team is to fulfill the roles and responsibilities defined in the project plan. The team usually consists of specialists from various disciplines, each with an operational role in project delivery. Together with the project manager, they are accountable for the tasks and deliverables within their area of responsibility. 

The project team should include a responsible person for every critical project area. It is essential, already during project planning, to ensure that each role is assigned to a competent and sufficiently experienced individual.

“When planning a project, it is important to remember that the purpose of the project team is to fulfill all responsibilities documented in the project structure. If a responsibility has not been assigned to a specific person, then effectively no one owns it. In other words, responsibility shared by many often becomes responsibility owned by none,” says Leino. 

Steering Group 

The steering group is the project’s highest decision-making body. It is responsible for appointing the project manager and maintaining active communication with them throughout the project. 

Although the steering group plays a key role in project oversight, it is not part of the project team itself. 

“The steering group supports the project manager in decision-making, particularly when the manager’s authority is insufficient for a particular issue. They provide higher-level guidance and make strategic project decisions throughout the project lifecycle,” says Leino. 

Best Practices for Building a Project Team 

A project team must be capable of meeting project challenges throughout the entire project lifecycle. In addition to having the right expertise, an effective project team must be able to work together effectively. Even highly skilled individuals may fail to achieve the desired results if collaboration breaks down and agreements cannot be reached. 

A successful project team is characterized by strong team spirit and effective communication. Project leadership must identify individuals who support one another and foster a collaborative culture in which tasks are completed smoothly and efficiently. 

The following practices can help build an effective project team: 

1. Focus on Team Chemistry of the Project Team 

In a well-functioning team, different personalities complement each other as the project progresses. Is there someone who is highly organized and can help keep schedules and task lists under control? Is there a particularly diplomatic team member who can help resolve interpersonal conflicts? 

“Every project requires the right mix of different people. Individuals who work in completely different ways may find it difficult to collaborate effectively. On the other hand, a team made up entirely of similar people may struggle to address project challenges in a versatile and effective way,” says Leino.  

2. Define the Team Structure and Communication Practices of the Project Team 

For a project team to function effectively, it is important to establish how issues and challenges will be communicated. Every team member should know which decisions and problems fall within their responsibility and authority. They should also understand who to escalate issues to when they fall outside their area of responsibility. 

Generally, issues that team members cannot resolve themselves move upward through the chain of command. Ultimately, the project manager, either independently or with support from the steering group, makes decisions on matters not covered by others’ responsibilities. The project hierarchy and reporting structure therefore exist primarily to support efficient decision-making. 

“However, unnecessary layers of hierarchy and additional roles should be avoided. Extra steps in communication slow project progress and may create a ‘broken telephone’ effect in decision-making,” adds Leino. Read more: Here are 5 important things to consider in case of staff changes, holidays or illness 

3. Define Objectives and Performance Tracking Mechanisms for the Project Team 

Clear milestones and objectives are also essential for effective communication and collaboration. What is each team member expected to achieve, and by when? What are the objectives of the entire team during different phases of the project lifecycle? 

In addition, it is important to measure work performed and results achieved throughout the project. Monitoring both team and project performance helps everyone stay informed and enables necessary adjustments to be planned and implemented collectively. 

“Every project is allocated a specific budget within which the project team must operate. To achieve the desired outcome within the available resources, it is essential to define during planning what is expected to be accomplished at each stage of the project,” says Leino. 

Semat Oy: The Project Management Professionals 

Semat is a full-service project management company. We help our clients find the right expertise and successfully deliver projects with the desired outcomes. Semat’s services include project manager outsourcing, project management training, and project management development. 

We are happy to answer any questions about building effective project teams and launching successful projects.