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Title does seem out of whack
Tom does appear to have answered the writer's question ... but the title seems to be different from the question.

There are many things (beyond what was mentioned by wparke) that characterize dysfunction.

A dysfunctional team is one symptom/cause of a problem project. Not all project problems are caused by dysfunctional teams just as all dysfunctional teams do not result in problem projects. There is a high correlation between them however.

Having said that, most of the solutions Tom suggested will also work toward solving the dysfunctional team issue. Specifically, setting expectations and improving communications are keys to the solution.

However, Tom did miss the one solution that must be faced. Specifically, "STOP THE PROJECT!" and it's lesser version "change the team". Unfortunately, it's a solution that management often is afraid to face (management = sponsor & the PMs managers). Despite this it often is necessary to give the participants a break. Sometimes this is because everyone is fighting (usually over nothing) but frequently because (bad) politics has reared its ugly head and the "team" has fractured into temporary alliances. Sometimes it's because a leader has emerged into a political vacuum. This latter can be okay if that leader has a project positive agenda, but if their agenda is personal this can be the most disruptive situation possible.

In all of these cases, it is necessary to allow the situation to calm down. Only by stopping the project is it possible to obtain this respite. If the project is important, then it can be restarted later (perhaps with a different mix of members).

The key is for the turnaround PM to quickly identify causes and solutions. And for the management to have the courage to make the required response (including stopping the project either short term or long term).

Glen Ford, PMP
http:www.Can-Da.com
Posted by PMPsicle
11th Feb 2009