Skip to content

Why your teams aren’t performing at their best (and how to fix it)

As an HR or L&D leader, you see it all – the teams that thrive and the ones that struggle. You hear the frustrations about misalignment, lack of accountability, or ineffective communication. You understand that a high-performing team doesn’t just hit targets – it’s also about culture, leadership, and the ability to unlock potential.

While the issues are visible, the solutions aren’t always clear. How do you build a high-performance culture across the entire business? How do you equip teams with the skills they need to truly perform?

One thing we’re sure of is that high-performance cultures are powered by people. And you’re in a unique position to drive real, lasting change.

Why teams struggle

It’s easy to assume that putting smart, capable people together will naturally result in a high-performing team. But in reality, team effectiveness is a skill – one that needs to be developed.

Many teams fall short because they lack the critical foundations that drive success. Without these, even the most talented individuals will struggle to work together effectively. So, what’s missing?

  • A shared mindset, where individual egos don’t override collective success. If team members are focused only on their own priorities, collaboration suffers.
  • Clear purpose, so people understand how their work contributes to a bigger goal. Without this, motivation and engagement dip.
  • Open, honest conversations, where feedback flows freely, and challenges are tackled head-on rather than avoided.
  • Mutual accountability, where responsibility is shared rather than falling on the same few people every time.
  • A commitment to learning, where mistakes are seen as opportunities for growth rather than failures to be hidden.
  • Psychological safety, where people feel confident enough to take risks, challenge ideas, and contribute fully.

When these elements are missing, performance slows. Decision-making becomes unclear. Ownership drops. Silos form. Sound familiar?

The impact of ineffective teams on business performance

Underperforming teams don’t just create frustration – they impact the bottom line. According to research by McKinsey, high-performing teams are 1.9 times more likely to achieve above-average financial performance. Yet, studies also show that only 20% of team members believe their teams are reaching their full potential.

The cost of ineffective teams? Missed opportunities, slow execution, disengaged employees, and ultimately, an organisation that struggles to compete. For HR and L&D leaders, this presents both a challenge and an opportunity. You’re in a position to create a culture where teams don’t just function – they thrive.

Building high-performing teams

The truth is, teams won’t fix themselves. And traditional approaches – like off-the-shelf training courses or one-off team-building activities – aren’t enough. Developing high-performing teams requires a shift in culture, leadership, and mindset.

You have the power to drive this change. Here’s how:

1. Embed human development into leadership training

It’s often said that people don’t leave bad jobs; they leave bad managers. The same applies to teams – people disengage when leadership fails to inspire, guide, and support them.

Yet, too many leadership development programmes focus on technical competencies rather than human skills. Leaders need to understand themselves and others, build emotional intelligence, and create environments where teams can truly perform. This isn’t a ‘nice to have’ – it’s essential.

2. Create a culture where learning isn’t optional

High-performing teams are constantly learning, adapting, and evolving. But learning can’t be limited to a training day once a year – it needs to be part of the team’s DNA.

Consider:

  • How often do your teams reflect on what’s working and what’s not?
  • Do they have regular opportunities for coaching and feedback?
  • Is learning seen as a continuous process rather than a tick-box exercise?

Creating a culture where learning is an everyday habit – not an event – will help teams develop resilience, agility, and a growth mindset.

3. Build psychological safety into team structures

When people don’t feel safe to speak up, challenge ideas, or admit mistakes, performance suffers. Research by Google’s Project Aristotle found that psychological safety is the number one factor in high-performing teams.

So, how do you build it?

  • Leaders must model vulnerability – admitting when they don’t have all the answers.
  • Teams need permission to experiment and fail without fear of blame.
  • Honest, constructive conversations should be encouraged at all levels.

If people don’t feel safe to contribute, they won’t. And when that happens, teams lose out on innovation, engagement, and effectiveness.

4. Shift accountability from ‘someone else’ to ‘all of us’

One of the biggest frustrations in underperforming teams is a lack of ownership. You’ve probably heard it before: “That’s not my job.”

High-performing teams take collective responsibility for success. Accountability isn’t just a leadership responsibility – it’s something every team member must own.

As an HR or L&D leader, you can help embed this by:

  • Encouraging leaders to model and reinforce shared accountability.
  • Designing team development programmes that focus on ownership and responsibility.
  • Helping teams create agreements on how they hold each other accountable.

When teams take responsibility for their own success, performance skyrockets.

Your legacy: creating a business powered by high-performing teams

As an HR or L&D leader, your impact extends far beyond policies and processes. You have the power to shape the culture, mindset, and effectiveness of teams across the organisation.

This isn’t just about fixing underperforming teams; it’s about creating an environment where high performance becomes the norm. By focusing on human development, leadership capability, and team dynamics, you’re not only solving today’s challenges – you’re building a legacy of high performance that will shape the future of your business.

Want more? Download the essential guide to high performance in 2025.