A strong leadership team forms the bedrock of culture and company performance. But just bringing a group of talented individuals together doesn’t automatically create a cohesive team. At Grow, we’ve worked with hundreds of leadership teams, and we’ve seen both the positive and negative effects of team dynamics on business performance. Dysfunctional dynamics erode morale and productivity, while a cohesive team propels a business to new heights.
What are five of the leadership team dynamics we see that most often challenge business owners?
Let’s unpack those dynamics and discuss some practical strategies to overcome them.
Trust is the foundation of any effective team. When team members lack trust, they avoid sharing honest opinions and owning their mistakes or admitting their struggles, leading to ineffective decision-making and strained relationships. Phrases like, "You have to be careful what you say around here," indicate a trust issue.
For example, at Lamberti Physiotherapy, during a strategy session with their Grow coach, the team unearthed frustrations and resentments that Fiona, the CEO, had no idea were brewing beneath the surface. The hard conversations during the session led to a profound understanding of each team member's frustrations, creating a foundation for a unified vision. The team could finally leave behind the emotional baggage and start charting a roadmap for the future.
Approach: Foster an environment where team members feel safe to speak openly. As the CEO, lead by example: be vulnerable, admit mistakes, and show authenticity. Create opportunities for connection: you must do one-on-one meetings with each of you team members at least monthly. Conduct workshops that include specific exercises that encourage openness and honesty (no, not the ‘Trust fall’)!
Healthy debate is crucial for good decision-making, but fear of conflict often prevents teams from challenging each other’s ideas. Without open discussion, important viewpoints go unheard, and decisions risk becoming biased by the strongest voices in the room.
Approach: Encourage open dialogue and help the team differentiate healthy conflict from personal attacks. Establish a "Conflict Agreement" to define the rules for productive debate. As a leader, actively draw out quieter members and ensure all voices are heard and be sure to do the equally valuable process of mining for dissent. This fosters a growth mindset within the team to help them become more comfortable with conflict, and put each team member on a structured development journey to help them step up in their leadership roles.
For example, professional services firm Strider used their Grow coach to work closely with each team member to improve their persuasion and influence skills, helping them prepare for meetings and important conversations. This included adjusting language, positioning arguments, proposing new ideas, and executing actions against strategies. As CEO Annabel put it, "They’re learning more about their roles in the team as well as who they are as individuals. Their personal development is a testament to the impact of the growth strategy." Today, the team is more engaged and productive, with healthier debates fueling better decision-making.
Or, consider Charlie, CEO at Madron Farming: He says, “There’s a vibrancy in today’s meetings. Everyone’s got a voice. People who were the quietest are now almost the most vocal in terms of the ideas they share. Our coach has really helped lead that dialogue and change. I think that’s his real strength. He can quickly gauge a situation and allow it to be discussed without fear of retribution. And that’s been phenomenal.”
Ambiguity around roles can lead to confusion, frustration, and inefficiency. Team members need to understand their responsibilities and how they contribute to the collective effort.
Madron Farming provides a great example. It was clear that the management team was not yet structured to provide Charlie with the support he needed. Over time, with the help and guidance of their coach, Charlie was able to create a powerful management team of eight people each with a refined sense of accountability and a feeling of being ‘the boss’ of their unique roles.
Approach: Promote a culture of clarity. Develop a Team Accountability Chart to define each role needed to execute the business strategy effectively. Use tools like RACI matrices to communicate roles and responsibilities clearly. Regularly revisit roles as the business evolves to ensure alignment.
Effective teams must commit to decisions even if individuals initially disagree. In dysfunctional teams, members sit on the sidelines, waiting for decisions to fail just to prove they were right.
Approach: Use good meeting rhythms for debate and discussion to help ensure transparent decision-making where all voices are heard before finalizing a course of action. Once a decision is made, ask each team member if they felt heard, are aligned and committed, even if the final decision wasn’t their preferred choice. Reinforce the message that unity is essential once a direction is set.
At Lamberti Physiotherapy, the team held robust discussions during their annual and quarterly strategic planning workshops to clearly define their purpose and strategic goals. Once this was done, they found it easier to rally behind decisions. With a shared vision and a clear game plan (framed as a set of OKRs) in place, Fiona’s team demonstrated unified commitment, which drove impressive business results, including a 400% growth in profitability.
Even with role clarity, a lack of accountability erodes trust and hinders progress. When team members play it safe (in the short term) by avoiding holding each other accountable, problems go unaddressed, and performance suffers in the long run.
Approach: Normalize accountability by making it an everyday practice. Encourage team members to publicly commit to actions and track progress. Use a "Show me" approach to make accountability visible and create peer-to-peer structures where team members support each other’s success. Deliberate exercises during team workshops help build a team’s level of comfort with accountability conversations.
At Lamberti Physiotherapy, Fiona observed how the managers really stepped up, shifting their thinking from purely operational to strategic. They aligned their teams to the business metrics and their own KPIs to the strategy, while proactively supporting each other and Fiona in executing strategic priorities. This peer accountability became a major driver of improved business outcomes.
Moving Towards a Stronger Leadership Team
If any of these dynamics sound familiar, know you’re not alone. Patrick Lencioni’s "Five Dysfunctions of a Team" framework provides a useful roadmap to tackle these issues, helping teams build trust, engage in conflict, commit, stay accountable, and focus on results. At Grow, we’ve seen first-hand how addressing these dynamics can transform teams into a driving force towards sustainable growth, impact, and profitability.
A Path to Growth
Addressing leadership team dynamics may be challenging, but the rewards – a team that communicates, collaborates, and takes accountability – are immense. Reflect on your leadership team and consider how these strategies might foster trust, encourage debate, and enhance alignment. To kickstart your journey to a cohesive team that leads with clarity and confidence subscribe for more insights from Grow. We’re here to provide the guidance needed to grow yourself and your team, both personally and professionally, while leading your business towards success.
And if you need help addressing these dynamics, don't hesitate to reach out to one of our highly experienced coaches - they know what you're going through because they've been there themselves, and they're equipped with the tools to help you.