Abstract: Self-managed teams are hardly a new idea. They have been tried in one form or another for over 50 years. But they usually operate within strict budget limits and are accountable for fixed targets. This severely limits their scope and authority and, in most cases, strangles them altogether. Leading organizations treat self-managed teams differently. They give them real autonomy to set their own plans and goals and regulate their own performance. This paper examines the key issues that cause self-managed teams to either succeed or fail.