In a time where complexity and uncertainty are prevalent, team effectiveness remains as one of the most powerful levers for organisational success. Research from McKinsey found that organisations with highly effective teams achieve 20% higher sales and 30% higher profitability. Whether navigating hybrid and remote work setups, cross-departmental projects, or strategic transformation initiatives, how teams work together is often what determines whether a business thrives or falters.
And yet many teams are falling short. Not due to a lack of effort or ability, but because of a few persistent habits that is limiting their potential. *1,500 team members from organisations across the UK, Europe and the US. were analysed and the research revealed the behaviours that are most closely associated with high-performing teams, and those behaviours that consistently hold teams back from unlocking their true potential.
So, what do the most effective teams get right, and where are others missing the mark?
Teams are strong on trust – but feedback is the missing link
The good news is that teams are getting the fundamentals of trust right. Most of our research respondents cited that they feel able to express their opinions openly in meetings and know they can count on their colleagues for support. This psychological safety net – the ability to speak up without fear of embarrassment or retaliation – is an essential behaviour to nurture collaboration, innovation, and resilience.
Although trust is strong, many teams are not stretching themselves. Specifically, they’re faltering in two key areas: feedback and accountability. Our research found that most teams struggle to provide regular and constructive feedback, both internally and externally with feedback from customers, stakeholders and colleagues rarely sought out or actioned. At the same time, poor performance often goes unchallenged, and individuals are not consistently held accountable when standards are not met.
This combination can undermine a team’s effectiveness. Without feedback, teams operate in an echo chamber, missing opportunities to learn and improve. Without accountability, motivation dips, and a precedent of a lack of ownership sets in. These behaviours are not ‘nice to haves’ – they are essential habits for any team striving to grow and deliver consistent results.
Clarity: The overlooked performance indicator
The report found that one of the most consistent differentiators between the most efficient and least efficient teams is clarity. For the best performing teams, they demonstrate clarity in three critical areas.
- Role clarity: Each member of the team understands their responsibilities and how they contribute to achieve collective success.
- Purpose clarity: The team’s reason and purpose are clearly understood and shared, offering members meaning and motivation.
- Goal clarity: Objectives are specific, measurable, and supported by actionable development plans.
When clarity is present and encouraged, teams focus their energy more effectively, collaborate with fewer misunderstandings, and align around shared goals. When it’s missing, even well-intended actions can become misdirected.
Performance is driven by habits
One of the most powerful lessons we can learn from the research is that true team effectiveness is not driven by mere talent, it’s the habits the team adopts. What this means is that performance can be developed, not just expected. It also means that HR and L&D professionals, as well as team leaders, all have a role to play in shaping and moulding these habits.
The question that should be asked is “how often do our teams reflect on how they work together, not just what they do?” Are feedback conversations built into the rhythm of work, or are they treated as ad-hoc and sporadic interventions? Do teams have a shared collective goal, or are they working in isolation? Without attention to these questions, even the most skilled teams can falter.
Strengthen the system, develop the individual
To create lasting and substantial change, teams need more than just a set of values or a performance framework – they need the tools, insights and support to build better habits. That’s where strengths-based training and development comes in. Our report found that when teams become aware of their collective strengths – what energises them, where they thrive, and how they can best support one another – they are far more likely to engage in meaningful feedback sessions, all while trust and cohesion is maintained.
Importantly, managers and team leaders must take an active role in fostering this environment. They must set the tone for whether feedback is welcomed or feared, whether accountability is enforced or avoided, and whether clarity is a daily practice or an annual exercise.
Looking ahead, the focus should move away from what challenges a team may be facing towards assessing whether they have the habits in place to respond effectively. With trust as a foundation, and feedback, accountability, and clarity as guiding principles, teams can flourish while businesses can enjoy the benefits that sustained effectiveness can bring.
*Report from Strengthscope – Team Effectiveness in the Workplace Report
