A recent study by Bain & Company revealed an important reality - organizations with highly effective executive teams significantly outperform their peers in revenue growth, profitability, and total shareholder returns. They also see higher employee retention, productivity, and morale.
Yet, despite the clear benefits of having a high-performing top team, nearly two-thirds of executive teams feel ineffective - even dysfunctional - and only 1 in 5 believe their team is truly high-performing.
So, why the disconnect?
One reason my be the mistaken belief that hiring great talent automatically makes for effective teamwork. This is rarely the case. Many teams fail to achieve top-tier results because they lack shared context, are unclear about their team mission and goals, or lack the insight or will to address unproductive team norms.
Organizations often treat leadership as an individual skill, focusing on personality assessments rather than team dynamics. They assess individual style rather than understanding how the team functions as a whole. When this happens at the executive level, it cascades down through the organization. In this way, the performance and effectiveness of the executive team sets a limiting factor on other teams in the organization.
From this perspective, organizations that are looking to make significant improvements in performance and productivity, the executive team is often the best place to start. And the best place to start with the executive team is by conducting a team-based assessment – one that captures the performance and dynamics of the entire team.
What's been your experience with team effectiveness at the executive level? How has it impacted your organization's performance?
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