September 30, 2026
Strategic People Management in digital squads and their leadership, engagement, and performance practices
Strategic People Management in Digital Squads and Their Practices of Leadership, Engagement, and Performance
Caroline Domingos; Fernanda Cigainski Lisbinski
DOI: 10.22167/2675-6528-202602759
Article derived from a Final Course Work (TCC), with content based on the student’s original work and adapted to the editorial format of the E&S Magazine with the support of the ResumeAI tool, an artificial intelligence solution developed by the Pecege Institute for textual synthesis and organization.
Abstract
Digital transformation and agile methodologies have driven organizational changes, consolidating digital “squads” as a relevant model for value delivery. The study aimed to analyze how strategic human resource management practices influenced the performance and results of digital “squads”, seeking to identify success factors, challenges, and opportunities for improvement in the integration between leadership, organizational culture, and agile methodologies. An applied research was conducted, with a mixed approach and descriptive nature, through a case study in “squads” of a Brazilian financial institution. Data collection involved a structured questionnaire, semi-structured interviews, and documentary analysis of organizational performance indicators. The results indicated high levels of engagement, positive perception of leadership, and a collaborative team climate, highlighting the relevance of autonomy, feedback processes, and recognition. Documentary analysis demonstrated significant improvements in operational efficiency indicators, team productivity, delivery efficiency, and organizational performance of the analyzed “squads”. It was concluded that strategic human resource management practices are associated with strengthening engagement and improving results in digital “squads”, reinforcing their role as a structuring element for reconciling agility, performance, and human development.
Keywords: Organizational climate; Work engagement; People management; Agile leadership; Agile methodologies.
1. Introduction
The advance of digital transformation has driven significant transformations in recent decades, reconfiguring not only business models but also internal structures and team dynamics within organizations. This evolution has profoundly reshaped the way value is delivered, demanding new approaches to the management and development of products and services.
In this constantly changing scenario, the adoption of agile methodologies, combined with the strengthening of organizational structures based on digital squads, has consolidated itself as an essential strategy to drive innovation and accelerate the delivery cycle. Such models seek to optimize the efficiency and responsiveness of companies in the face of the demands of an increasingly dynamic market.
Digital squads are characterized by being multidisciplinary, autonomous teams oriented towards achieving rapid and continuous results. This structure reflects the concept of continuous learning, fundamental for corporate agility, as described by Schwaber and Sutherland (2017).
The relevance of this model is corroborated by recent data. The McKinsey Global Survey on Agile Organizations (2023) report indicates that organizations implementing leadership models focused on autonomy, purpose, and continuous learning in digital teams achieve up to thirty percent more engagement and productivity. These numbers highlight the transformative potential of well-managed squads.
The structure of digital squads, by bringing together professionals with diverse skills to work in an integrated way towards common objectives, requires a differentiated approach to people management. The inherent autonomy of these teams demands strategic practices that strengthen collaboration, effective communication, and the continuous development of their members.
For the success of these models, it is crucial that leadership acts as facilitators, creating organizational environments that promote continuous learning, engagement, and strategic alignment between individuals and expected results. Strategic people management, therefore, assumes a central role in sustaining and optimizing the performance of squads.
However, the mere implementation of agile processes does not guarantee sustainable results on its own. The quality of people management and organizational culture directly influence the performance of digital squads. Organizational performance, according to Gil (2019), depends on the ability to align individual competencies with strategic objectives, fostering environments of trust, recognition, and engagement.
In this sense, the adoption of good people management practices is fundamental to balancing the autonomy of squads with the need for collaboration. Such practices are essential to foster continuous learning, sustain professional motivation, and ensure the quality of deliverables in an agile environment.
Organizational culture plays a crucial role in team interaction and engagement around a shared purpose, as Schein (2017) points out. Practices that promote transparency, openness to feedback, and a sense of belonging are vital for building psychologically safe environments, which, in turn, are indispensable for experimentation and innovation.
Therefore, leadership in digital squads transcends task management, assuming a transformational role. Leaders act as facilitators of individual and collective development, in addition to ensuring strategic alignment. Thus, strategic people management emerges as a determining factor for the success of agile models.
Despite the widespread adoption of agile methodologies, people management in squads still faces significant challenges in terms of maturity. Teams often struggle to reconcile the fast pace of deliveries with maintaining quality and employee well-being, which highlights the urgency of more strategic and humanized leadership approaches.
This study is justified by the need to deepen the understanding of how people management practices can optimize the performance of digital squads and strengthen the role of leadership as an agent of transformation. For organizations, the research offers valuable subsidies to improve leadership, engagement, and team development in agile environments.
In the social sphere, work contributes to the promotion of practices that value well-being, autonomy, and psychological safety in the workplace. For the academic community, the research enriches discussions on strategic human resource management in agile teams, by integrating the constructs of leadership, engagement, and psychological safety in a case study with a mixed-methods approach, providing empirical evidence for future investigations.
Thus, the relevance of this study lies in its ability to offer practical and theoretical insights to improve management in agile contexts. The present study aimed to analyze how strategic human resource management practices influence the performance and results of digital squads, seeking to identify success factors, challenges, and improvement opportunities in the integration between leadership, organizational culture, and agile methodologies.
2. Material and Methods
The research conducted was characterized as applied, with a mixed approach and descriptive nature, seeking to analyze the strategic people management practices and their influence on the performance of digital squads. The study was conducted through a case study in a large financial institution in Brazil, whose name was preserved in accordance with the ethical guidelines of USP/Esalq.
Regarding its classification, the research was descriptive, according to Gil (2019) and Vergara (2016), by describing and analyzing management practices, participant perceptions, and performance indicators in their real context. A mixed approach was adopted, integrating qualitative and quantitative methods for a comprehensive understanding of the phenomenon, as proposed by Creswell and Plano Clark (2018). The design employed the case study strategy, applied to a specific set of the institution’s digital squads, suitable for in-depth investigation of contemporary phenomena, according to Yin (2018).
Data collection occurred in three complementary stages. The first stage consisted of semi-structured interviews, conducted with leaders and squad members, aiming to identify perceptions about leadership, engagement, feedback culture, and recognition. The interviews included between four and six participants per squad, with an approximate duration of 30 to 45 minutes, conducted in person or remotely. They were recorded and subsequently transcribed, with the participants’ consent, and their detailed scripts can be found in Appendices B and C of the original work. The collected data were treated by content analysis, allowing for the categorization of perceptions and the identification of relevant thematic patterns.
The second stage involved the application of a structured questionnaire, available in Appendix A. The instrument contained statements evaluated on a five-point Likert scale, with the purpose of measuring perceptions of work engagement, leadership, and team climate in digital squads. It was developed based on scales consolidated in the literature: the “Utrecht Work Engagement Scale” (UWES) for engagement (Schaufeli and Salanova, 2021), empowering and agile leadership scales for leadership perception (Gharawi and Alla, 2021), and Edmondson’s (1999) scale with validations by Frazier et al. (2017) and Damen et al. (2021) for team climate and psychological safety. The questionnaire was applied electronically, ensuring anonymity and confidentiality. The quantitative data obtained were subjected to descriptive statistical analysis, with calculation of median, frequencies, and percentages.
The third stage comprised the documentary analysis of the organization’s internal records. Indicators such as Objectives and Key Results (OKRs), internal Net Promoter Score (NPS), and operational metrics, including feature lead time and Mean Time to Recovery (MTTR), were examined. This documentary analysis aimed to complement the qualitative and quantitative evidence.
The study sample was composed of two digital squads, totaling thirteen participants, including leaders and team members. Of these, eight participated in semi-structured interviews and all thirteen responded to the structured questionnaire. The selection occurred non-probabilistically, by convenience and intentionality, with the main criterion being direct involvement in squads with agile practices formally structured for at least six months.
Regarding the ethical aspects, all participants contributed voluntarily, through free and informed consent. Anonymity, confidentiality, and the exclusive academic use of information were assured in all phases of the research, according to the USP/Esalq Manual of Instructions and Norms (item 5.2). The identity of the participants and the institution was preserved.
During the preparation of the work, the ChatGPT tool (OpenAI) was used as technical support for textual structuring, grammatical review, and clarity enhancement of some sections. All ideas, analyses, and conclusions presented were authored by the researcher, and the content was fully reviewed before insertion into the final text, in accordance with the Manual of Good Practices – Use of Artificial Intelligence in the Development of Final Undergraduate Projects (USP/Esalq, 2025).
3. Results and Discussion
The research results offer a comprehensive view on the influence of strategic people management practices on the performance and outcomes of digital squads, as per the objective of this study. The integrated analysis of the data, obtained through structured questionnaires, semi-structured interviews, and document analysis, revealed consistent patterns that highlight the relevance of leadership, engagement, and team climate in agile organizational contexts. These findings allow for an in-depth understanding of the internal dynamics of teams and how people management can enhance value delivery.
The research was conducted in digital squads of a large Brazilian financial institution, with the participation of thirteen individuals, including leaders and team members. The majority of respondents indicated more than six months of experience in their respective squads, a factor that contributes to the consistency and depth of the perceptions collected. This length of experience suggests that the participants possess consolidated knowledge of the work dynamics and interaction processes that characterize their teams, providing a solid basis for the interpretation of the results.
Structured Questionnaire Results
The structured questionnaire, composed of fifteen statements evaluated on a five-point Likert scale, addressed three central thematic blocks: work engagement, leadership perception, and team climate and psychological safety. The analysis of medians for each of these constructs revealed a value of five in all cases. This result indicates a predominantly positive evaluation by the participants regarding leadership practices, engagement level, and the quality of the work environment within the analyzed squads, suggesting a favorable scenario for performance.
Regarding work engagement, quantitative data pointed to high levels of energy, enthusiasm, and involvement with the activities performed. Participants demonstrated a strong sense of pride in being part of the team and intense involvement in tasks, which aligns with literature describing engagement as a crucial variable for performance in dynamic environments (Schaufeli and Salanova, 2021). These findings suggest that the organizational context fosters professionals’ dedication and identification with team objectives.
Leadership perception was also positively evaluated, with respondents highlighting clarity in communication of objectives, encouragement of autonomy, and promotion of continuous learning. These elements are recognized as pillars of agile leadership and “empowering” leadership, essential for strengthening collective performance (Gharawi; Alla, 2021). However, greater dispersion was observed in responses regarding the frequency of constructive feedback, indicating that, although the practice exists, there is room for improvement in its application and consistency.
Regarding team climate and psychological safety, the questionnaire results indicated a predominant perception of a collaborative environment. Participants reported openness to exchanging ideas, learning from mistakes, and a strong sense of belonging. These factors are crucial for collective learning and innovation in organizational teams, according to the literature on psychological safety (Edmondson, 1999; Frazier et al., 2017). The high median in these constructs reinforces the importance of a psychologically safe environment for high performance.
Results of Semi-structured Interviews
The qualitative stage, which involved eight semi-structured interviews with leaders and squad members, complemented the quantitative data by deepening perceptions of leadership, engagement, feedback, recognition, and team climate. The general accounts confirmed a positive view of leadership’s performance, especially regarding the removal of operational and organizational impediments that could affect the teams’ workflow. Clarity in the macro vision of deliverables and strategic direction was also a frequently mentioned point.
The proximity of leadership and the sharing of responsibilities and knowledge were identified as essential practices for strengthening squad autonomy. This approach favors greater alignment between organizational objectives and the daily activities of the teams, contributing to the efficiency and effectiveness of deliveries. Leadership thus acts as a facilitator, creating conditions for teams to operate with greater independence and responsibility, which is fundamental in agile models.
Regarding engagement, participants primarily associated their motivation with a sense of purpose and the perception of the impact of the work performed. The clarity of the squad’s objectives and the possibility of active participation in decisions were pointed out as factors that intensify focus on deliverables and involvement with the work. These findings corroborate the importance of a well-defined purpose and autonomy in decision-making for employee engagement, according to the literature on agile leadership (Gharawi; Alla, 2021).
The culture of feedback and recognition emerged as a topic of particular sensitivity in the interviews. Although participants acknowledge the existence of formal and informal feedback practices, many indicated opportunities for improvement in terms of frequency, clarity, and individualization of these interactions. Regarding recognition, both structured institutional practices and daily actions, such as spontaneous thanks and public appreciation of deliverables, were mentioned, which are considered important for strengthening the sense of belonging and motivation.
Regarding team climate and psychological safety, qualitative reports reinforced the existence of predominantly collaborative environments, with openness to the exchange of ideas and learning from mistakes. Mistakes were mostly described as opportunities for collective learning, addressed through structured analyses and the definition of action plans, without a punitive nature. However, some participants suggested the need to expand more informal and dynamic interaction spaces, aiming at team integration and decompression, which can further optimize the work environment.
The interviewees highlighted the importance of humanized leadership, based on closeness, trust, empathy, and the ability to adapt to the individual needs of professionals, as one of the factors that most impact the performance of squads. This perspective reinforces the role of leadership as a facilitator of autonomy and strategic alignment in agile teams, according to Schein (2017), who emphasizes the construction of organizational cultures oriented towards continuous learning and collaboration.
Results of the Documentary Analysis
The documentary analysis of the organization’s internal records provided objective data on operational efficiency and squad performance, complementing qualitative and quantitative perceptions. The indicators analyzed included feature “lead time”, application latency, and “Mean Time to Recovery” (MTTR) for incidents. To preserve confidentiality, the results were presented on a base 100 scale, with the initial value of each indicator set as a reference equal to 100.
A significant reduction in feature “lead time” was observed, decreasing from 100 to 38, indicating a substantial improvement in the time required for delivering new functionalities. Application latency also showed progress, with the index dropping from 100 to 64. Furthermore, the “Mean Time to Recovery” (MTTR) for incidents decreased from 100 to 31, pointing to greater agility in recovering from failures and maintaining system stability.
These reductions in operational indicators suggest important advances in the dimensions of delivery agility, technical efficiency, and operational resilience of the squads. The decrease in “lead time” and MTTR, in particular, is a strong indicator of improvements in productivity and the technical quality of deliveries. Such results are in line with the McKinsey Global Survey on Agile Organizations (2023) report, which indicates that organizations with greater maturity in agile practices and autonomy-oriented leadership tend to show significant improvements in these indicators.
The convergence between documentary data and the perceptions collected through interviews and the questionnaire strengthens the consistency of the research findings. The improvement in organizational performance indicators, along with high levels of engagement and positive perception of leadership and team climate, suggests that the strategic human resource management practices implemented in the financial institution are effectively contributing to the success of digital squads. This triangulation of evidence provides greater analytical robustness to the presented results.
Despite the positive results and the analytical robustness achieved by data triangulation, it is important to consider the inherent limitations of the case study. The small sample size, composed of only two squads and thirteen participants, and the use of non-probabilistic, convenience sampling, limit the generalization of the results to other organizational contexts. However, the depth of the qualitative analysis and the objectivity of the quantitative and documentary data allowed for a detailed understanding of the phenomenon studied in the specific institution.
In summary, the research results indicate a strong association between leadership practices, strategic people management, and the construction of collaborative and psychologically safe environments with the strengthening of engagement and the improvement of digital squad results. Leadership action, focus on purpose, autonomy, feedback, and recognition are crucial elements that, together, contribute to the sustainable performance of teams in a digital transformation scenario, directly responding to the objective of analyzing the influence of these practices on squad results.
4. Conclusion
The study aimed to analyze how strategic human resource management practices influenced the performance and results of digital squads. It was found that leadership practices based on proximity, clarity of direction, encouragement of autonomy, and building trusting relationships contributed to strengthening engagement and the perception of a collaborative and psychologically safe team climate. High levels of energy, enthusiasm, and involvement with tasks were identified, along with a positive perception of leadership that emphasized clear communication of objectives and encouragement of continuous learning. Additionally, the analysis of internal organizational records demonstrated significant improvements in operational efficiency indicators, such as feature “lead time”, application latency, and “Mean Time to Recovery” (MTTR) for incidents, indicating advances in delivery agility, technical efficiency, and operational resilience. These findings collectively suggest a strong association between strategic human resource management and improved squad performance.
From a practical point of view, the study highlighted the importance of strengthening structured practices of feedback, recognition, and continuous development as strategic elements for consolidating agile, sustainable, and results-oriented work environments. It was concluded that strategic people management constitutes a relevant lever for strengthening engagement and results in digital squads, reinforcing its role as a structuring element for organizations seeking to reconcile agility, performance, and human development. However, the research limitations include the restricted scope to a reduced number of squads and the use of non-probabilistic sampling, which restricts the generalization of the results. It is suggested that future studies expand the number of teams analyzed and explore different organizational contexts, allowing for a deeper understanding of the relationship between strategic people management practices and performance in agile environments.
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Article originating from the Final Course Work of the Specialization in People Management of the MBA USP/Esalq
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