An Open Letter to All Managers: The Secrets of High-Performing Teams

Dear Managers,

Have you ever wondered why some teams consistently outperform others? Whether it's innovation, productivity, or the sheer ability to win, certain teams just seem to click better. The question is: What makes these teams so effective?

Historically, we tend to jump to two answers when exploring why some teams are more successful than others—Talent and Team Building. Let’s break down these two widely held beliefs and see how they stack up.

Disclaimer: The opinions expressed in this article are my own and do not reflect the views or positions of my employer.

The Myth of Talent

The most common answer to why some teams excel is simple: Talent. We think, “If I hire the best, the results will naturally follow.” It’s like a sports team with a budget that acquires star players—on paper, they should win every time. But in reality, the performance often fails to meet expectations. Why? Because talent isn’t portable.

A wealth of research across various industries shows that picking up a top performer from one environment and placing them in another often leads to a drop in performance—not just for them but for the entire team. This happens because performance is inherently team-based. The star performer shines not just because of individual ability but because of the context of the team they’re in. Talent, as crucial as it is, cannot thrive without a strong team to support it.

As Steve Jobs once said, “Great things in business are never done by one person; they’re done by a team of people.” This quote beautifully highlights the importance of the collective over individual brilliance.

The Team Building Trap

The next strategy people turn to is team building. You know the drill—trust falls, ropes courses, personality tests. While these activities can be fun, the real question is, do they work?

Team building only truly works when it changes the habits and norms of behaviour in the day-to-day work. In other words, team building isn’t an event; it’s a habit. It’s something woven into the fabric of how a team operates, how they communicate, and how they collaborate. And you know what we call those ingrained habits and behaviours? Culture.

Peter Drucker famously said, “Culture eats strategy for breakfast.” No matter how talented your team or how clever your strategies, without the right culture, sustained success is impossible.

Culture: The Heart of High-Performing Teams

Research shows that high-performing teams across various industries, from business to sports to non-profit, all share similar cultural traits. These traits boil down to three key elements: common understanding, psychological safety, and pro-social purpose.

1. Common Understanding

At its core, common understanding is about clarity and empathy. It’s not just about knowing your role and responsibilities; it’s also about understanding the roles of others on the team. How do you fit into the bigger picture? This clarity fosters smooth collaboration.

But beyond clarity, great teams exhibit empathy. They understand each other’s preferences, strengths, and challenges. It’s about knowing the person behind the job title—what motivates them, what stresses them out, and how they best communicate.

As Harper Lee wrote in To Kill a Mockingbird, “You never really understand a person until you consider things from his point of view.” Empathy allows teams to see things from multiple perspectives, improving collaboration and cohesion.

2. Psychological Safety

Psychological safety is the extent to which team members feel safe to take risks, speak up, and even fail without fear of negative consequences. It’s about creating a space where people can express ideas, no matter how unconventional, and where dissent is encouraged as a form of collaboration.

Leaders play a critical role in cultivating psychological safety. Instead of punishing mistakes, they treat them as learning opportunities. They foster an environment where failures are celebrated for the lessons they provide, not for the mistakes themselves.

As Winston Churchill wisely said, “Success is not final, failure is not fatal: it is the courage to continue that counts.” This mindset creates an environment where innovation thrives and individuals are empowered to grow.

3. Pro-Social Purpose

While most organizations talk about having a strong purpose or mission, what really matters to people is knowing who they serve. Employees want to feel like their work is making a tangible impact on someone’s life. It’s not just about having a mission statement pinned on the wall; it’s about connecting employees to the beneficiaries of their work.

Teams that understand the "who" behind their work are more motivated and engaged. Whether it’s customers, stakeholders, or even internal colleagues, knowing that you’re contributing to someone else’s success gives a sense of fulfillment that drives effort and commitment.

In the words of Albert Einstein, “Only a life lived for others is a life worthwhile.” When team members feel they’re contributing to a greater cause, they bring more energy and passion to their work.

When you build a culture that emphasizes common understanding, psychological safety, and pro-social purpose, something incredible happens. The sum becomes greater than the parts. You attract better people, get better ideas, and most importantly, get the best effort from your team.

As Henry Ford famously stated, “Coming together is a beginning, staying together is progress, and working together is success.” With the right culture in place, you don’t just have a good team—you have the best team you’ve ever led.