Psychology
of Teams
The hidden factors that support
high-performing teams
While teams are instrumental in bringing about success at an organizational level,
modern teams are facing ever greater challenges to their cohesiveness. This is
caused by increasing hybrid work arrangements, organizational change, economic
uncertainty—and a historic fixation on tasks.
This eBook shares the factors essential for developing a well-functioning team. It
explores process as well as task management, explains why process is central to a
thriving team environment and culture, and identifies the psychological elements—
both seen and unseen—that teams must understand if they want to be high
performers.
“What most team development articles miss are the hidden
psychological dynamics within teams,” says Dr. Martin Boult, psychologist
and Sr. Director of Professional Services for The Myers-Briggs Company’s Asia Pacific
region. “What often happens is you get a group of people together who are all quite
skilled and qualified, and leaders think ‘right, now we have the perfect power team.”
“However, if those people aren’t comfortable being open with each other, if they’re
not comfortable engaging in constructive debate or communication, or if they’re not
all psychologically aligned around a shared purpose, that team is not going to be as
effective working together as a team that is aligned.”
High-performing teams have certain qualities in common. They tend to incorporate
different perspectives when solving problems together, which leads to better
decisions being made. They foster mutual support between team members for
achieving objectives. And they have a shared sense of accomplishment.
The benefits of this at an organizational level include:
- Increased productivity.
- An enhanced quality of products or services.
- A faster, more responsive approach to business opportunities.
It follows that, when combined with an effective business strategy, the benefits
of developing and supporting positive team attitudes and behaviors can
translate to increased bottom-line performance and drive business growth.
However, teamwork often presents challenges.
Why?
Because it requires individuals with different—sometimes seemingly incompatible—
viewpoints, communication styles, and work styles to work closely together to
accomplish a goal. And some of those differences are caused by factors not easily
observed by team members, as Dr. Boult notes.
2 | Psychology of Teams
“If leaders don’t know how to identify these issues, or don’t have the skills to raise
these concerns with their team, then these hidden dynamics result in unhelpful
and unproductive behaviors,” he says. “If teammates don’t understand differences
between themselves, the outcome is likely to be unhelpful and disruptive
behaviors in the team. Things like people not sharing information, absenteeism or
presenteeism, or even people ganging up on each other in the team. Of course, no
one easily acknowledges doing these things, but they show up in team behaviors and
can then become team norms.”
So, how do you surface the hidden things to help people work together
constructively?
“It’s about making all the hidden stuff conscious. Team members must learn
how to leverage their similarities and differences, not just tolerate them, in order to
achieve the best possible results.”
Despite the challenges that teamworking presents, they need to be overcome if
a team is to achieve high levels of performance. The modern workplace has seen
an increase in organizational restructuring and downsizing, resulting in flatter
hierarchies, and this has created a greater need for collaboration. This is why there’s
a new emphasis on teamwork.
The composition and lifespan of teams has changed, too.
People no longer operate in settled and static work groups. Instead, teams are
constantly forming and re-forming, often to shorter timescales. The increase in
virtual teams and international working has meant that many teams communicate
remotely, which means communication is often less timely and more prone to
misinterpretation.
So, how can leaders of teams be sure that they are achieving maximum
effectiveness?
What signs should they look for to identify whether or not a team is performing to its
full potential—and how can they encourage effective team development?
One way is to go beyond focusing purely on tasks the team is working on.
Historically, organizations and leaders have tended to focus their energies on ‘getting
the job done’ (the task element of team performance). This task focus has typically
outweighed the attention given to how the team interacts (the process element) to
achieve their goal.
3 | Psychology of Teams
However, research has highlighted that truly high-performing teams are those
that are conscious of and focus on both the task and the process.
This means that, in addition to considering what teams must achieve, effective
development should also invest time and effort developing the team’s awareness of
how they are working together: the visible and hidden interpersonal dynamics and
relationships within the team.
Team dynamics: making or breaking the
workplace
Effective teams positively impact on those around them as they consider and adapt
their behavior in constructive ways.
In contrast, ineffective teams can infect, pollute, and hold back the entire system,
especially where issues exist at senior team level.
Team effectiveness, therefore, has a huge impact at an organizational, team, and
individual level.
The consequences at an organizational level are wide ranging:
- Wasted time.
- Ineffective use of resources.
- Disengaged employees.
- Lack of agility and motivation in tackling business challenges.
- Lack of organizational response.
- Ineffectiveness in seizing opportunities.
- Sluggishness in resolving problems.
4 | Psychology of Teams
Furthermore, dissatisfied employees can create a breeding ground for staff turnover,
leaving an organization with a dwindling and disaffected workforce. These issues
have crucial implications on productivity and impact bottom-line profitability.
At a team level, a perception amongst team members of an ineffective or
acrimonious team environment can lead to poor productivity, unresponsiveness, and
disengagement. A lack of collective interest means that team members are unlikely
to work together in a collaborative or committed way, which can lead to unhealthy
competition and individual agendas coming to the forefront—fuel to the fire in an
already hostile working environment.
Finally, working within an ineffective or unhappy team can have serious
consequences at an individual level. A lack of ownership, responsibility or
engagement with team goals can lead to staff feeling unacknowledged and unvalued
as individuals.
These are key drivers towards motivation and job satisfaction. Without them,
individuals can be left with an absence of meaning and purpose in their working lives.
A lack of involvement and engagement at work can have repercussions as serious as
loss of self-esteem, lethargy, depression, and lower well-being.
In order to avoid the harmful effects of poor team functioning, leaders of teams need
to know these two things:
1. What characterizes an effective team?
2. What are the hidden elements of team psychology?
We’ll look at each of these elements soon, but first, a question:
Are you in a team or a workgroup?
Team vs. workgroup
According to the Merriam-Webster dictionary, the definition of a team is a group of
people who work together collaboratively, often with complementary skills or abilities,
to achieve a common goal.
“In team development workshops, when I ask people to think of examples of teams,
the first answer they usually give is a sports team, which is an obvious example.
However, there are many other situations where people need to work together as
a team. For example, the medical team in a hospital emergency room, where the
shared goal is to save the patient’s life,” says Dr. Boult.
5 | Psychology of Teams
“Another example of a team is a musical band or orchestra. What is their shared goal
and purpose? Perform the piece of music the best that they can. But what happens if
one musician is not playing their part correctly? The whole orchestra sounds bad and
you can hear the disharmony.”
In teams, everyone has to work in a coordinated way, and you can pretty quickly
identify if this team works or doesn’t work effectively.
Characteristics of a team
- Focus on team goals.
- Come together to plan, make decisions, and solve problems.
- Mutual accountability.
- Collective outputs or products.
- Takes time to become operational.
- Shared leadership roles.
- Purpose is shaped and shared.
- High-functioning teams outperform high-functioning groups.
The problem is that some teams in the workplace aren’t actually teams. Instead,
they’re workgroups.
What’s a workgroup?
“Usually, workgroups are based around a project or product, and individuals are
part of the group as a specialist or a subject matter expert. You aren’t really there to
achieve a team goal, though you’re working together with other people.
“Sales teams are a great example of a workgroup. If your salespeople are rewarded
for what each individual salesperson achieves (as opposed to what the sales ‘team’ as
a whole achieves), then they’re going to function like a workgroup instead of a team.
6 | Psychology of Teams
They won’t necessarily share leads or collaborate because they are rewarded to
achieve their own personal targets,” says Dr. Boult.
Characteristics of a workgroup
- Come together to share information and perspectives.
- Focus on individual needs.
- Individual products and outputs.
- Purpose shaped by manager.
- Define and retain individual roles and responsibilities.
- Can be operationalized quickly.
- Individual accountability.
- High-functioning workgroups DO NOT outperform high-functioning teams.
Deciding whether you’re a team or a workgroup
“So, you need to have agreement from everyone on whether the people involved
actually need to function as a team or as a workgroup. If you have some people
thinking you’re a team, and others thinking you’re a workgroup, neither is going to be
successful. Psychologically, are we a team and are we doing the things we need to do
to be a team? Or are we a workgroup and we don’t need to try to turn ourselves into
a team.”
“Even if your organization calls you a team, that doesn’t mean you’ll operate as a
team. That’s where the team and the team leader have to put in the effort to learn
how to work together. If people haven’t psychologically bought into the fact that you
are a team and need to operate as a team, you won’t be a successful team,” says Dr.
Boult.
7 | Psychology of Teams
Teamwork isn’t just a choice. It’s a strategic and psychological decision.
We often use psychometric tools like the MBTI® personality assessment or the FIRO
Business® interpersonal needs assessment to help people illuminate the hidden
dynamics of groups or teams and help them learn the best ways of working. Both of
these assessments can still be used with great success with workgroups as well as
teams. However, the purpose of how they’re applied and the intent between teams
and workgroups is different.
“With teams, I always say ‘OK, if you’re a team, you need to have a team purpose
and clear team goals. Keep these in mind, and now let’s use your understanding of
your personality type and your interpersonal needs to ask what’s going to help you
achieve those goals. And also identify what’s going to get in the way of you achieving
those goals,” says Dr. Boult.
“If you’re a workgroup, you won’t need to have a shared purpose or have inter-
dependent responsibilities, you’re just understanding how to work together more
effectively. Consider things like when you’re in a work meeting, have we given enough
time for those preferring Introversion to think about questions we’ve asked out loud?
Have we gathered information in ways that cover both Sensing and Intuition angles?
But you’re not trying to leverage these insights for how to support each other in the
same way that you’d be doing with a team.”
How to recognize an effective team
Whilst it is crucially important to consider both the task and the process elements of
team performance, team competence shouldn’t be overlooked.
High-performing teams have the confidence that they have the necessary knowledge,
skills, and capabilities to successfully deliver the required outputs. If they don’t, the
team needs access to the relevant skills and resources, either within the organization
or externally. This access also needs to be supported by the business.
If the team isn’t equipped with the skills and knowledge to deliver its objectives, no
amount of team development will ensure it reaches high-performance status.
However, technical competence, skills, and knowledge are not in themselves enough
to ensure maximum team effectiveness.
Our experience and research shows that there are seven additional factors that are
absolutely key in nurturing a team to perform at the highest level.
8 | Psychology of Teams
Visible and hidden
team elements
Process
Alignment Adaptability
Constructive
Conflict
communication
Team Trust/
orientation Psychological
safety
9 | Psychology of Teams
Visible vs. hidden team elements
As mentioned previously, many teams focus only on the visible behaviors of group
working when considering how to improve performance.
While this is important, without considering the hidden elements that lie below the
surface, a team can risk derailing without realizing until it is too late. If these hidden
elements are ignored, the observable, surface behaviors will always be performed
sub-optimally.
Hidden elements
Within the seven high-performance team factors mentioned below, the hidden
characteristics affecting team dynamics are:
- Trust/psychological safety
- Team orientation
Hidden and visible elements
Additionally, conflict management and communication both have visible and invisible
elements. Some elements of these are directly observable, and others stay below the
surface.
Visible elements
The characteristics that are usually visible in team dynamics are adaptability, process,
and alignment.
High-performing teams have clear processes that support their objectives and
enable efficiency in the way they work. Highly aligned teams are clear in their mission
and strategy, with their explicit goals and objectives aligned to wider organizational
priorities. Effective teams also support each other and create an environment that
embraces change, having an innovative and adaptable mindset.
“It’s the hidden dynamics that makes people tear their hair out in teams,” says Dr.
Boult. “Why aren’t two people getting along? Why is this team member not ‘playing
fair’ with me? For most of the team, the answer is that the hidden psychological
dynamics of a team are being overlooked or ignored.”
10 | Psychology of Teams
Seven psychological factors of
successful teams
1. Trust / psychological safety (hidden)
Trust and psychological safety are both crucial elements for effective team
development, but they have distinct characteristics. Here’s a breakdown of the
differences:
Trust
Refers to the belief or confidence that team members have in each other’s intentions,
reliability, and competence. It is built over time through consistent actions, open
communication, and the fulfillment of commitments. Trust is typically developed
through experiences and interactions within the team.
Key aspects of trust include reliability, vulnerability, competence, and integrity.
Psychological safety
Is a shared belief within a team that it is safe to take interpersonal risks without the
fear of punishment, embarrassment, or retribution. Psychological safety within a
team creates an environment where individuals feel comfortable expressing their
thoughts, opinions, and ideas freely. It’s vital for fostering creativity, innovation, and
learning within teams.
Key aspects of psychological safety include open communication, interpersonal
risk-taking, trust in leadership, and having a learning culture.
“Psychological safety nurtures a culture of collaboration and innovation, as it
encourages open dialogue, diverse perspectives, and a shared belief that every voice
matters. Here, ideas flow freely, mistakes become stepping stones to growth, and
teams feel empowered to challenge assumptions and drive meaningful change,” says
Dr. Rachel Cubas Wilkinson, Head of US Consultancy for The Myers-Briggs Company.
“You have to start with trust. You have to get people comfortable enough that they’re
going to be open and feel like there’s a level of psychological safety within that team,”
adds Dr. Boult. “Without trust as the psychological foundation of your team, any
other development isn’t going to be nearly as effective.”
What happens if trust is lacking?
11 | Psychology of Teams
An absence of trust within a team makes collaborative working almost impossible.
Low confidence in other team members’ intentions and an unwillingness to admit
to weaknesses and mistakes (or ask for help) all prevent the building of trust within
a team. Teams with low trust in each other may display undermining or dismissive
behavior, gossip, or be unwilling to share information.
In contrast, teams with high levels of trust are flexible and resilient in the face of
controversy and challenge. Members support each other and openly share their
ideas, concerns and beliefs in their genuine ideas, views, and feelings. They do this
without fear of being devalued or made to feel insignificant if there are differences or
if mistakes are made.
Trust is the absolute cornerstone of team development and provides an essential
foundation for all the other elements of high performance. It leads to better
relationships and a greater sense of connection, producing higher collective interest.
Increasing levels of trust therefore lead to greater team orientation, where team
members actively commit to common goals and objectives.
In teams where there is trust, people engage in more honest and open
communication. More issues are raised and discussed, rather than remaining
unspoken where resentment can build. With trust and open communication, the
integration of opposing viewpoints creates more productive outcomes than if
differences are ignored.
“Basically, if trust and psychological safety aren’t established, then all the
hidden dynamics won’t be discussed,” says Dr. Boult.
How do leaders build trust and psychological safety?
Inclusive leadership acts as a powerful lever for building trust and psychological
safety within a team or organization. We define inclusive leadership as the
demonstrable commitment to create workplaces with an emphasis on empowering
the diverse thoughts, perspectives, and contributions of everyone. It’s predicated on
core competencies of leadership including empathy, humility, flexibility, openness,
and an ability to leverage differences.
12 | Psychology of Teams
The interconnection between trust, psychological safety, and inclusive leadership is
evident in how they reinforce and support one another. Here are a few examples:
- Inclusive leaders build trust by valuing and respecting the contributions of all
team members. They create an environment where trust can thrive by promoting
fairness, transparency, and equal opportunities.
- Inclusive leaders actively foster psychological safety by encouraging open
communication, actively listening to diverse perspectives, and addressing any
discriminatory or exclusionary behaviors.
- Inclusive leaders set the tone for team members in which openness, flexibility,
mutual understanding, and belonging are central to how the team accomplishes
its goals. They do and say what is needed to role model these behaviors and hold
others accountable.
“Most of us want to work in healthy work environments and cultures. Inclusion is
central. We want our work contributions to be valued, we want to feel heard, we want
to know that if we share an idea or a divergent perspective, our leader and our team
will hear that perspective and consider it with flexibility and an open mind,” says Dr.
Cubas-Wilkinson.
Promoting trust, psychological safety, and inclusivity is an ongoing effort. It requires
consistent commitment, open communication, and a willingness to address
challenges and biases.
“The rewards of inclusive workplaces are irresistible,” adds Dr. Cubas-Wilkinson.
“Employees feel respected, heard, valued, and a sense of belonging. When this
occurs, team members are more willing to speak up, to challenge the status quo,
to share a divergent thought, to innovate, which, as the research shows, leads to
improved performance, higher morale, and better decision-making.”
2. Constructive communication (visible + hidden)
“Constructive communication is how you go about relaying messages
between each member of the team and as a team to those outside the
team—both positive and negative messages,” says Dr. Boult.
In teams where constructive communication is prioritized, members and
stakeholders are encouraged to participate, and to listen to and clearly understand
the team’s goals, plans and progress. They tend to communicate in a direct,
unambiguous manner. Discussions are purposeful and end in effective plans for
action.
13 | Psychology of Teams
Conversely, in teams where communication between people is poor, neither team
members nor stakeholders feel ‘up to speed’ on what the team is doing or plans
to do. Team discussions ramble and rarely lead to agreement. This has grave
implications for the productivity and collective focus of the team.
In building constructive communication habits on a team, psychometric tools like the
MBTI® assessment are helpful to establish a foundation of understanding of different
communication styles. When team members understand their communication
styles and the differences between them, they’re more likely to trust one another.
In addition, they’re less likely to make negative assumptions about the intentions
behind a communication style that’s different from their own.
The Myers-Briggs Type Indicator® (MBTI®) theory describes dimensions of personality
across four different areas:
- How we’re energized (Extraversion [E] or Introversion [I]).
- How we prefer to take in information (Sensing [S] or Intuition [N]).
- How we make decisions (Thinking [T] or Feeling [F]).
- How we prefer to orient ourselves to the world (Judging [J] or Perceiving [P]).
“With certain tweaks, we can apply an understanding of personality type so that our
communication better appeals to others,” says Dr. Rachel Cubas-Wilkinson, Head of
Consultancy in US Professional Services, The Myers-Briggs Company.
“If you know someone’s preferred way to re-energize and interact with others (aka
whether they prefer Extraversion or Introversion), you can use this knowledge to help
you better communicate with them. You can consider whether they might prefer to
engage and refine their thoughts aloud and through active sharing (Extraversion) or
through internal consideration and reflection (Introversion).”
“If you know someone’s preference around how they take in information, you can
tailor your message and the information you give them. You can offer a stronger
focus on facts and concrete realities if the person you’re talking to prefers Sensing.
Or if they prefer Intuition, you can tailor your message to focus on meanings,
possibilities, and connections.”
“In communication, research demonstrates that when the quality of your
communication is high in workplace relationships, you promote shared
understanding, smoother overall functioning, and better performance. These are
impressive outcomes!” says Dr. Cubas-Wilkinson.
Overall, applying an understanding of personality type informs your self-awareness
and self-management. It also supports your awareness of others and their needs.
Lastly, it can give you valuable insights and tools to build stronger workplace
relationships for today and for the future.
14 | Psychology of Teams
3. Adaptability (visible)
Adaptability is often referred to as innovation in other team models. But, in terms of
team effectiveness, not every team has to innovate.
“Innovation generally is about creating new things,” says Dr. Boult, “when, really,
this factor of team psychology is about the team being able to adapt or adjust what
they’re doing because things have changed.”
“Think about an operations team that serves customers. The team doesn’t (usually)
need to come up with new ways to handle customer requests every day. But if a new
CRM system comes in or the company starts a new initiative, then that customer
service team does need to tweak what they’re doing. That’s adaptability, and it’s
crucial for successful teams. This example could also be of product development
teams or consulting teams that are having to build new things. Every team needs to
be adaptable to be successful.”
To be adaptable, an effective team must continuously explore and be receptive
to opportunities for change and innovation in response to market trends and
organizational climate. This includes ways to improve processes, products, or
outcomes. Adaptable teams respond quickly to challenges and can still perform
effectively when faced with unique or unfamiliar issues. They tend to be good at both
defining what innovation is needed and planning how to implement change.
In contrast, teams that are more resistant to change tend not to respond well when
pushed out of their comfort zone and have trouble adapting to changing conditions.
Adaptable teams are also open to continuously developing the way that they’re
working together. Team members may not immediately be able to recognize where
there are issues in the way they work together, but they’ll be keen to develop and
improve—even if they need to make changes themselves to be more effective as a
team.
4. Process (visible)
Where teams have developed effective processes, they make good use of their
meetings in order to rapidly gather ideas, prioritize opportunities, and take action.
They’re usually very effective at project planning, accessing and managing resources,
and delivering results on time and on budget. They’re also willing and able to discuss
how they’re working together.
15 | Psychology of Teams
Teams with well-defined processes are also clear about the specific roles and
responsibilities within the team. Different members’ strengths are recognized in the
allocation of tasks and actions. This means team members can enjoy autonomy to
make decisions and do their work.
In contrast, teams that are low on process make little use of effective meeting
management and team facilitation techniques, and struggle to decide upon actions.
5. Alignment (visible)
Where there are high levels of alignment, team members are also more likely to hold
each other accountable for agreed actions that contribute to the team’s success. This
means that they are less dependent on a team leader and are more able to self-
manage, define their own processes and address any challenging issues themselves.
High-performing teams will ensure that they have alignment within the team, showing
clarity of purpose and vision. However, they will also ensure that these objectives are
clearly aligned within the wider organizational priorities.
6. Conflict management (visible + hidden)
Conflict can be a key cause of disharmony and ineffectiveness in teams. And conflict
in the workplace is getting worse. Research on workplace conflict by The Myers-
Briggs Company found that the time spent on workplace conflict has more than
doubled since 2008.
“Currently, managers spend over 4 hours a week dealing with conflict on average,”
says John Hackston, Head of Thought Leadership at The Myers-Briggs Company,
who carried out the study. “From our research, poor communication is the number
one cause of conflict. Additionally, nearly 1 in 4 people think their managers handle
conflict poorly or very poorly. We’ve also found that the more time that an individual
spends dealing with conflict at work, the lower their job satisfaction and the less
included they felt.”
Teams with poor conflict-management skills either avoid openly debating issues or
lack the ability to manage conflict productively. They tend to go with whatever decision
is endorsed by the loudest voice, and rarely deal well with difficult or sensitive topics.
This creates an environment where team members feel unable to express their
true feelings around important issues (see psychological safety), which can lead to
ineffective decision-making, and affect the quality of work and team morale.
16 | Psychology of Teams
In contrast, teams with effective conflict management skills value open discussion.
They encourage each other to be fully candid with their opinions. They strive to get
multiple, often competing views or ideas on the table, then have effective processes
for managing the debate so the final decision has maximum buy-in and support.
Modes of conflict
According to the Thomas-Kilmann theory of conflict management, the way people
default to dealing with conflict can be broken down into five different modes.
Each mode varies along two spectrums:
- Assertiveness (getting your own needs met).
- Cooperativeness (getting others needs met).
The five TKI conflict handing modes are Avoiding, Accommodating,
Collaborating, Competing, and Compromising.
Everyone naturally uses one or two modes based on their culture, upbringing, and
personality type. However, by identifying alternative conflict handling styles and
learning how and when to use them most effectively, team members can reframe
and defuse conflict. This creates more productive outcomes.
Want to learn more about conflict at work?
Download the eBook Psychology of Conflict here.
17 | Psychology of Teams
7. Team orientation (hidden)
A sense of camaraderie and team spirit provides great motivation for a team.
When team orientation is high, members derive satisfaction and enjoyment from
working together. Even heated debate and disagreement doesn’t undermine the
underlying commitment and loyalty team members have for one another.
In contrast, individual agendas and quests for personal recognition can detract from
or clash with the pursuit of team success. When individuals can identify with and ‘buy
into’ the team’s goals and mission, they are likely to put aside their own goals and
agendas in the interests of overall team performance.
Let’s look at a real-life example of team orientation behavior.
Imagine a software development company where team orientation is highly valued.
The employees actively practice team orientation by willingly sharing their expertise,
knowledge, and resources with one another. In addition, when issues or conflict
arise, team members offer support and assistance to their colleagues. They readily
provide guidance, mentorship, and feedback to help each other succeed.
When the team issues a large bug fix that most all members of the team had a
part in, team members take collective responsibility for the team’s success. They
understand that their individual success is intertwined with the team’s success.
And when the software bug fix release is praised by customers, team members
celebrate both individual and collective achievements. They recognize and appreciate
each other’s contributions, but also their team success.
18 | Psychology of Teams
Summary
It’s easy for managers and team members to assume that their
dynamics are straightforward and obvious. It’s easy not to think
proactively about how the team is working together when the
focus is on the completion of challenging tasks.
However, certain factors have a significant and crucial effect on
team performance, and therefore the accomplishment of the
team’s goals. Often, they’re unseen—and therefore unknown.
This is why investing in time for teams to learn insights from
psychometric assessments and team development interventions
offer powerful ways of encouraging the very highest levels of team
performance.
With the support of the right instrument and an expert facilitator,
team managers can generate insights, challenge existing thinking,
and support positive change.
In doing so, they can dramatically enhance team performance,
generating a significant and lasting impact on their organization.
To find out more about the hidden dynamics of teams and how to
improve performance, contact us today.
+1 800.624.1765 | www.themyersbriggs.com
Need help with your teams initiatives?
Looking to bring psychological insight to your organization?
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