Highly Functional vs Highly Performing Teams: A Comprehensive Guide

I'm a mom. Bring me to a theme park any weekend in the summer and I will see a few groups working well together, a rare one or two that are exceptionally cohesive, and the rest, well, they put the "dysfunctional" in "dysfunctional family." It's not difficult to categorize these when they're right in front of you—and when your own family isn't in the mix. As soon as you're dealing with your own circumstances, suddenly the wisdom falls away and long-standing patterns rule the day. When it comes to business, even more layers complicate the goal of developing the ever-elusive ideal team dynamic. 

In today’s fast-paced, ever-evolving business landscape, the success of any organization hinges on the strength of its teams. When teams work effectively, they become the driving force behind innovation, productivity, and sustainable growth. But not all effective teams are created equal. While some are highly functional—smoothly operating with clarity and alignment—others are high-performing, consistently delivering exceptional results that exceed expectations.

Here’s where it gets interesting: these terms are often used interchangeably, leading to confusion about what truly sets these teams apart. Is it their structure? Their culture? Their results? And most importantly, how can you take your team to the next level?

This blog unpacks the nuances between highly functional and high-performing teams, revealing the key characteristics that make them thrive. By the end, you'll not only understand the difference but also gain actionable insights to help your team become a powerhouse. 

What’s the Difference Between Highly Functional & Highly Performing Teams?

When it comes to team development, it's important to appreciate that forward movement is the goal. A dysfunctional team isn't going to become perfect overnight. Targeting incremental improvements is practical and sustainable. As teams become great, it gets harder to objectively gauge where they are in the growth. After all, even at the top, there is a difference between good and great.

What Are Highly Functional Teams?

Highly functional teams are those that operate efficiently, with a strong foundation of clear communication, alignment, and structure. These teams have well-defined roles, streamlined processes, and a shared understanding of their goals. Each team member knows exactly what is expected of them and how their contributions fit into the bigger picture. As a result, they can collaborate effectively, resolve issues quickly, and maintain steady progress toward their objectives.

Example: Imagine a product development team at a mid-sized tech company. Each member—from designers to developers to project managers—has a clear understanding of their role in launching a new app. Weekly meetings ensure everyone is aligned on priorities, deadlines, and potential challenges. The project manager uses tools like Trello or Asana to track tasks, while open communication channels allow team members to raise concerns and share updates in real time. Because the team operates with such clarity and alignment, they meet milestones efficiently, avoid bottlenecks, and deliver the app on schedule without unnecessary stress.

In this example, the team may not be breaking records or achieving extraordinary outcomes, but they function like a well-oiled machine—consistent, reliable, and effective. The value of a highly functional team should not be undermined. Getting to this level takes time and effort. "Highly functional" is something to aspire to and be proud of when it's achieved.

What Are Highly Performing Teams?

High-performing teams are those that not only operate efficiently—with clear communication, alignment, and structure—but also consistently deliver outstanding results that go above and beyond expectations. These teams are driven by a shared sense of purpose, mutual trust, and a commitment to excellence. They don’t just meet goals; they challenge themselves to exceed them, pushing boundaries and achieving results that set them apart.

Example: Consider an elite sales team at a fast-growing SaaS company. While each salesperson works independently to meet their quotas, they share a collective commitment to driving company growth. They support each other's deals and it shows. Their leader fosters a culture of psychological safety, where team members openly discuss strategies, share lessons learned, and challenge each other to improve. Regular feedback loops ensure everyone stays aligned and motivated, and performance metrics help identify areas for growth.

Not only do they hit their individual targets, but as a team, they exceed quarterly goals, landing major enterprise clients and breaking previous sales records. The combination of trust, accountability, and a relentless drive to achieve sets them apart as a truly high-performing team.

In this example, the team isn’t just functional—they are excelling, innovating, and consistently delivering exceptional outcomes that fuel the company’s success.

Comparison: Highly Functional Teams vs. High Performance Teams

Do High-Performance Teams Really Make a Difference?

The value of high-performing teams extends far beyond individual contributions, delivering measurable results that drive organizational success. While individual talent is important, teams that collaborate, innovate, and align around shared objectives are proven to create far greater impact. High-performing teams streamline workflows, reduce inefficiencies, and deliver exceptional outcomes that directly benefit profitability and growth.

In 2024, Gallup conducted its eleventh meta-analysis on employee engagement using its Q12^Ⓡ survey, analyzing 736 studies across 347 organizations in 53 industries and 90 countries. The analysis focused on nearly 183,000+ business/work units, representing 3.3 million+ employees, to explore the relationship between employee engagement and organizational outcomes.

Gallup’s research revealed a clear and measurable connection between employee engagement and performance at the work-unit level (teams). Engaged teams significantly outperformed disengaged teams, with those scoring in the top half of engagement nearly doubling their odds of success compared to those in the bottom half. Teams in the 99th percentile of engagement have nearly five times the success rate of those in the first percentile. Key findings include:

• Customer Ratings: Top-quartile teams scored 10% higher on customer loyalty.
• Profitability: Teams in the top quartile saw a 23% increase in profitability.
• Productivity: Top-quartile work units were 18% more productive.
• Turnover: Turnover rates were 21% lower in high-turnover organizations & 51% lower in low-turnover organizations.
• Shrinkage: Theft & loss decreased by 28%.
• Absenteeism: Top-quartile teams experienced 78% lower absenteeism.
• Safety Incidents: Workplace safety incidents dropped by 48%.
• Patient Safety Incidents: Healthcare teams had 58% fewer patient safety incidents.
• Quality Defects: Teams saw a 32% reduction in defects & quality issues.
• Wellbeing: Top quartile teams had 70% more "thriving employees".
• Participation: Teams saw 22% more organizational citizenship.

These findings highlight how engaged teams drive better business outcomes across productivity, profitability, retention, and safety. In challenging economic times, such performance improvements become even more critical for organizational resilience and success.

If statistics like these don't get your spidey senses tingling, you're not paying attention. In today’s competitive market, fostering high-performance teams isn’t just a nice-to-have—it’s a strategic imperative. By investing in building trust, collaboration, and shared accountability, organizations can unlock unprecedented levels of profitability, efficiency, and long-term success.

How To Identify a High-Functioning Team that Still Needs Development

To ensure you don't mistake your team's current competence (high-functioning) for exceptional performance (highly performing), watch for these traits and gaps. These distinctions will help you identify areas for improvement and guide investments to elevate your team to the next level.

Step 1. Results vs. Efficiency

High-Functioning Teams consistently meet deadlines and complete tasks efficiently but focus on "checking boxes" rather than delivering transformative results. This differs from Highly Performing Teams that consistently exceed goals, deliver measurable outcomes, and push for exceptional results that drive meaningful impact. 

What to Watch: Are you just meeting expectations, or are you surpassing them with measurable value?

Step 2. Innovation and Creativity

High-Functioning Teams work well within established systems and processes but may avoid risk-taking or out-of-the-box thinking and show limited focus on learning and growth. Whereas Highly Performing Teams prioritize continuous improvement, and embrace feedback, upskilling, and new ways of working to achieve higher standards. This group takes calculated risks to innovate and solve complex problems.

What to Watch: Are team ideas predictable and safe, or are they leading to groundbreaking solutions?

Step 3. Accountability and Ownership

High-Functioning Team members take responsibility for individual tasks but may rely on leaders to resolve bigger issues or misalignments. Highly Performing Team members feel more deeply connected to the outcomes they seek. They demonstrate ownership for collective outcomes, holding themselves and each other accountable for success.

What to Watch: Is accountability limited to individual contributions, or does the team own successes and failures collectively?

Step 4. Adaptability and Resilience

High-Functioning Teams can handle minor changes but struggle to adjust when faced with major disruptions or shifting goals. Stressful clients and other stakeholders can be especially stressful for these teams. On the other hand, Highly Performing Teams show maturity by quickly adapting to challenges and pivoting strategies while maintaining focus on objectives, regardless of obstacles. 

What to Watch: Does the team stay agile and proactive under pressure, or does progress stall in the face of adversity?

Step 5. Depth of Communication 

High-Functioning Teams maintain clear communication for coordination but may lack depth in constructive feedback and critical dialogue. They aren't as likely to discuss imminent risks and, in so doing, proactively mitigate their impact. This differs from Highly Performing Teams that engage in open, transparent, and candid communication that includes challenging assumptions and offering constructive feedback to improve continuously and foresee upcoming challenges.

What to Watch: Is communication transactional, or does it push the team to improve and innovate?

Step 6. Collaboration and Synergy

High-Functioning Teams work well together but may operate in silos or lack the ability to leverage diverse perspectives and competencies that are available across the team. Conversely, Highly Performing Teams more seamlessly integrate team strengths and view circumstances through a lens of transferrable skills, valuing diverse ideas to achieve synergy and solve problems more effectively.

What to Watch: Does the team collaborate for true innovation, or does it simply coordinate tasks?

Step 7. Shared Purpose and Commitment

High-Functioning Teams understand goals and roles but may lack a deeper sense of shared mission or inspiration. Members of these teams can recite the mission but can't necessarily detail the vision without repeating the precise language they've heard before. Highly Performing Teams operate with a clear, compelling sense of purpose that drives motivation and aligns every action with the team’s vision. This team models purpose-driven cohesion. Their every decision serves as a case study in turning the mission and vision into action.

What to Watch: Is the team inspired by a shared purpose, or are they just following plans?

You can keep growing your team's potential if you are willing to continue critically asking yourself tough questions like:

• Are you achieving exceptional outcomes or just meeting expectations?
• Is the team challenging itself to innovate and grow, or staying in a comfort zone?
• Does accountability extend beyond individual roles to collective ownership?
• Are challenges seen as roadblocks or opportunities to adapt and excel?

By assessing these traits, you can identify where your team stands and what’s needed to move from being highly functional to becoming a truly high-performing team.

10 Key Traits That Make Some Teams High-Performing

Highly performing teams almost always stand out as exceptional. Most people leaders can watch them work and, very quickly, see that they're special. What's much harder is to identify what precisely makes them so special. That's why it shouldn't be surprising that there are academics who devote their careers to identifying the pivotal levers, the characteristics, that set high-performing teams apart.

In their master's thesis at Chalmers University of Technology, researchers Thilda Mattisson and Julia Lohm Wennerbäck explored the characteristics and practices of high-performance teams within organizations. They developed a framework comprising nine categories essential for high-performance teams: Goals, Member Contribution, Mutual Support & Collaboration, Self-organization, Communication, Planning & Coordination, Sense of Belonging, Evaluation & Feedback, and Motivation. Their study emphasizes that while all these categories are important, focusing on improving specific areas can lead to significant enhancements in team efficiency and performance.

This research underscores that high-performance teams possess a comprehensive set of characteristics that enable them to achieve superior results. In contrast, highly functional teams may exhibit some of these traits but not to the same extent, which can result in differences in overall performance and effectiveness.

Here is a comprehensive list of the leading traits that make teams high-performing. 

1. Clear and Compelling Purpose

High-performing teams are driven by a shared mission and clear goals that align with the organization’s vision. As a Denison-certified Organizational Cultural consultant, I can attest to this proving true across decades of research. This sense of purpose provides direction and motivation, ensuring that every team member understands why their work matters and how it contributes to the bigger picture. For example, a team at a renewable energy company working on a new solar technology understands that their efforts are not just about meeting project milestones, but about contributing to a sustainable future and reducing global carbon emissions. This clarity helps align their efforts, inspire commitment, and foster a deep sense of pride in their work, leading to exceptional results.

2. Strong Psychological Safety

In high-performing teams, psychological safety creates an environment where team members feel safe to speak up, share ideas, admit mistakes, and challenge one another without fear of judgment or repercussions. This openness fosters innovation and problem-solving, as team members are not afraid to take risks or suggest unconventional solutions. For instance, at Google, teams with high psychological safety have been shown to outperform others because employees feel comfortable sharing new ideas or admitting when they need help. When team members trust that their voices will be heard and valued, they are more engaged, collaborative, and committed to achieving shared goals.

3. Dependability & Accountability

High-performing teams thrive on dependability, where every member consistently delivers on their commitments and meets expectations. This reliability builds trust and ensures the team can operate efficiently without bottlenecks or delays. For example, in a software development team, if one developer reliably completes their coding tasks on time, it allows the QA testers to begin their work without disruption, keeping the entire project on schedule. Additionally, accountability within the team means that when setbacks occur, members collectively take ownership, address the issue, and work together to get back on track. This culture of mutual responsibility ensures the team remains focused and aligned on achieving its goals.

4. Clear Structure & Role Clarity

High-performing teams operate with well-defined roles, responsibilities, and processes, ensuring everyone understands their part in achieving team objectives. This clarity minimizes confusion, reduces overlap, and allows team members to focus on their specific tasks. For example, in an event planning team, the project manager oversees timelines, the logistics coordinator handles venue and equipment, and the marketing lead promotes the event. With clearly defined roles, everyone works efficiently, avoids stepping on each other's toes, and contributes seamlessly to the team's success. This structured approach enhances productivity and ensures all aspects of the project are covered without unnecessary friction.

5. Effective Communication

Effective communication is the backbone of high-performing teams, ensuring that everyone stays aligned on progress, priorities, and goals. Transparent, consistent, and open dialogue fosters collaboration, prevents misunderstandings, and helps resolve issues quickly. For example, in a remote marketing team, using tools like Slack for daily updates and Zoom for weekly check-ins ensures team members stay informed about project progress and upcoming tasks. When team members communicate openly—whether sharing challenges, providing feedback, or clarifying responsibilities—they build stronger relationships and maintain momentum toward achieving collective goals. This level of clarity keeps the team focused and unified.

6. Mutual Trust & Respect

Mutual trust and respect are essential for high-performing teams, as they create a foundation where collaboration thrives and team members feel valued. Trust means believing in each other's abilities, intentions, and reliability, which fosters a positive and productive team dynamic. For example, in a surgical team, the surgeon trusts the nurses and anesthesiologist to perform their roles flawlessly, while the team respects the surgeon's expertise and leadership. This mutual confidence allows them to focus on the task at hand, work seamlessly under pressure, and achieve the best possible outcomes. When trust and respect are present, teams can tackle challenges together, knowing they have each other's support.

7. High Levels of Collaboration

High-performing teams excel at collaboration, working together seamlessly to leverage their diverse perspectives, skills, and experiences. This collective effort allows them to solve problems creatively and drive innovation. For example, in a product design team, engineers, designers, and marketers collaborate to ensure the product is not only functional but also visually appealing and aligned with market needs. By encouraging open dialogue and sharing insights, the team combines their expertise to create a superior product that meets user demands. Effective collaboration turns individual strengths into collective success, pushing the team to achieve exceptional outcomes.

8. Focus on Results and Outcomes

High-performing teams prioritize achieving measurable outcomes, pushing beyond mere task completion to deliver exceptional results. They stay focused on the bigger picture and ensure their efforts translate into tangible success. For example, a sales team doesn’t just aim to meet their quarterly targets—they strategize and collaborate to exceed goals by securing high-value clients and boosting overall revenue. By measuring progress and aligning their actions with desired outcomes, they consistently deliver results that have a meaningful impact on the organization. This relentless focus on outcomes is what sets high-performance teams apart.

9. Shared Commitment to Excellence

High-performing teams are united by a shared commitment to excellence, where a culture of high standards motivates every member to deliver their best work. This collective drive pushes the team to consistently produce high-quality results and exceed expectations. For example, in a championship-winning sports team, athletes hold themselves and each other accountable to rigorous training, precision, and continuous improvement. Each player’s dedication to excellence elevates the entire team’s performance, creating a cycle of success. When everyone is committed to delivering their best, the team naturally achieves outcomes that stand out.

10. Strong Leadership

Strong leadership is a cornerstone of high-performing teams, as effective leaders inspire, guide, and support their teams while empowering individuals to take ownership of their work. A great leader sets a clear vision, removes obstacles, and fosters an environment of trust and collaboration. For example, in a startup environment, a CEO who actively listens to their team, celebrates successes, and encourages autonomy allows team members to innovate and take calculated risks. By providing both direction and support, the leader enables the team to perform at their best and achieve collective goals. This balance of guidance and empowerment motivates the team to excel.

10 Important Attributes to Measure to Elevate Your High-Performing Team Continuously

This list consists of 10 key traits you will find across highly performing teams. This next list of 10 are not only traits you will observe in a high-performing team, but also attributes you should measure regularly to monitor the performance of the team.

1. Constructive Feedback and Continuous Improvement

High-performing teams prioritize regular feedback—both positive and constructive—as a tool for growth and improvement. This open exchange of feedback helps individuals recognize their strengths, identify areas for development, and make meaningful changes. For example, in a marketing team, after a campaign launch, team members conduct a retrospective meeting to celebrate what worked well and discuss what could be improved for next time. By focusing on learning rather than blame, the team continuously refines their processes and enhances performance. This commitment to constructive feedback fosters a culture of continuous improvement and drives the team toward excellence.

2. Adaptability and Resilience

High-performing teams demonstrate adaptability and resilience by quickly adjusting to changing circumstances and staying focused on their goals, even in the face of setbacks. This flexibility allows them to respond to challenges with creative solutions instead of getting derailed. For example, when a supply chain disruption delays production, a manufacturing team may pivot by identifying alternative suppliers or adjusting timelines to minimize impact. Rather than dwelling on the setback, the team’s resilience enables them to regroup, adapt their strategy, and maintain progress. This ability to stay agile and determined ensures they continue moving forward, no matter the obstacle.

3. Diversity of Skills and Perspectives

High-performing teams thrive on a mix of complementary skills, knowledge, and experiences, which allows them to innovate, think creatively, and solve problems effectively. When team members bring diverse perspectives, they challenge assumptions and uncover unique solutions. For example, in a product development team, an engineer focuses on technical feasibility, a designer ensures user-friendliness, and a marketer identifies customer needs. By combining their expertise, they develop a product that is functional, appealing, and market-ready. This diversity not only strengthens the team’s outcomes but also fosters an environment where creativity and innovation flourish. 

4. Continuous Learning and Development

High-performing teams prioritize ongoing learning, upskilling, and professional development to improve their performance and stay ahead in a competitive environment. They embrace a growth mindset, seeking opportunities to expand their knowledge and refine their skills. For example, a tech team working on AI-driven solutions regularly attends workshops, takes online courses, and shares insights on emerging trends to keep their expertise current. This commitment to continuous learning ensures the team remains innovative, adaptable, and capable of tackling new challenges. By investing in development, the team not only enhances individual capabilities but also strengthens collective performance.

5. Sense of Belonging and Team Cohesion

A strong sense of belonging and team cohesion creates an environment where members feel valued, connected, and motivated to work collaboratively. Team members who trust and support each other are more likely to share ideas, overcome challenges, and celebrate successes together. For example, a healthcare team working in a high-stress emergency room relies on strong camaraderie to maintain morale and ensure smooth coordination during critical situations. Knowing they are part of a team that has their back fosters confidence and loyalty, which enhances both individual and collective performance. This sense of unity drives the team to achieve their goals together.

6. High Motivation and Engagement

High-performing teams are fueled by intrinsic motivation, where members take pride in their work and remain deeply engaged in achieving team goals. This internal drive ensures they consistently go above and beyond, even when challenges arise. For example, in a nonprofit organization, a team working on a community project stays energized because they believe in the mission and see the positive impact of their efforts. Their shared commitment and passion keep them focused, enthusiastic, and willing to contribute extra effort to ensure success. This level of engagement not only enhances productivity but also strengthens team morale and purpose.

7. Alignment with Organizational Goals

High-performing teams ensure their objectives and daily work align seamlessly with the broader organizational strategy, creating a unified effort toward shared success. This alignment helps prioritize tasks, eliminate distractions, and maximize impact. For example, a marketing team in a growing SaaS company aligns its campaigns with the company’s goal of expanding into new markets. By focusing on targeted outreach and lead generation for specific regions, the team directly supports the organization's strategic growth plan. When team goals are closely tied to organizational priorities, every effort contributes to meaningful progress and measurable results.

There is a very reliable way of measuring alignment with organizational goals. Most importantly, alignment here directly correlates with progressive revenue growth. If you are interested in learning more about measuring alignment on organizational goals in your organization, let me know here. 

8. Proactive Problem-Solving

High-performing teams excel at anticipating challenges and addressing them proactively to prevent issues from escalating. By identifying potential obstacles early, they develop solutions that keep progress on track and minimize disruptions. For example, a supply chain management team might notice a delay in receiving raw materials and immediately coordinate with alternate suppliers to avoid production halts. This forward-thinking approach ensures the team stays ahead of problems, maintains momentum, and delivers results on time. Proactive problem-solving not only builds resilience but also fosters trust in the team’s ability to handle challenges effectively.

9. Efficient Use of Tools and Resources

High-performing teams leverage tools, systems, and technology to streamline workflows, improve collaboration, and maximize efficiency. By using the right resources, they reduce manual effort, eliminate bottlenecks, and ensure everyone stays aligned. For example, a remote software development team might use project management tools like Jira to track tasks, Slack for real-time communication, and GitHub for version control. These tools allow team members to work seamlessly across time zones, stay updated on progress, and quickly address any issues. Efficient use of resources ensures the team spends less time managing tasks and more time achieving results.

10. Celebration of Successes

Recognizing and celebrating achievements—both big and small—reinforces team morale, boosts motivation, and strengthens unity. Celebrations provide an opportunity to acknowledge hard work, build camaraderie, and create a positive team culture. For example, after successfully completing a challenging product launch, a project team might hold a team lunch or share shout-outs in a company-wide meeting. This recognition makes team members feel valued and appreciated, inspiring them to continue performing at their best. By celebrating successes, teams cultivate a sense of pride and reinforce their collective drive to achieve future goals.

How to Build a High-Performing Team

Building a high-performing team requires more than just assembling skilled individuals—it’s about creating a culture, structure, and mindset that drives exceptional results. From understanding what makes these teams stand out to implementing practical strategies and leveraging the right tools, this section breaks down the essential steps for cultivating a team that thrives. By focusing on leadership, team behaviors, and proven strategies, you’ll discover how to elevate your team’s performance and achieve meaningful, measurable outcomes.

Without hiring a dedicated expert to lead the way, here is a roadmap you can use for building a DIY High-Performing Team.

Step 1: Understanding What a High-Performing Team Is

Before you can build a high-performing team, it’s essential to understand what truly sets them apart. A high-performing team goes beyond simply working well together—they are a group of individuals who consistently achieve exceptional results by leveraging trust, collaboration, and shared accountability. These teams are aligned around a clear purpose, operate with a focus on measurable outcomes, and challenge themselves to exceed expectations.

The value of high-performance teams lies in their ability to drive results that move the needle for an organization. While a functional team may complete tasks efficiently, a high-performing team transforms efficiency into impact—delivering innovation, reducing bottlenecks, and achieving strategic goals. The difference is clear: high-performing teams don’t just meet standards, they raise them, providing a competitive edge that propels the entire organization forward.

Step 2: Why High-Performance Teamwork Is Essential

High-performing teams are not just a “nice-to-have”—they are a cornerstone of organizational success. Their ability to consistently deliver exceptional results creates a ripple effect of benefits that improve productivity, drive innovation, and strengthen employee retention, all of which directly impact an organization’s bottom line.

If we look back at Gallup's eleventh meta-analysis on employee engagement using its Q12^Ⓡ survey, we recall that in a study of 183,000+ teams, employee engagement positively correlates with outcomes such as higher productivity, lower employee turnover, less shrinkage, lower absenteeism and more. Let's for a moment consider the costs of these outcomes and business imperatives. 

Here are some reliable statistics on the costs associated with key issues:

• Low Productivity: Distraction at work can significantly impact productivity. A study involving a major U.S. manufacturer found that distraction contributed to 93.6% of annual productivity loss, amounting to approximately $300 million.  PLOS Journals
• Employee Turnover: Replacing an employee can be costly. Estimates suggest that the cost ranges from 30% to 200% of the employee's salary, considering both direct and indirect expenses.  Wikipedia
• Shrinkage (Theft): Employee theft is a significant issue, with U.S. businesses losing an estimated $50 billion annually. On average, organizations lose 5% of their revenue to fraud each year.  Wikipedia
• Absenteeism: Employee absenteeism leads to substantial productivity losses. In the U.S., the annual cost is approximately $225.8 billion, equating to $1,685 per employee.  TeamSense
• Safety Incidents: Workplace injuries and illnesses have a significant economic impact. In 2020, the total cost in the U.S. was estimated at $167 billion, including wage and productivity losses, medical expenses, and administrative costs. Injury Facts. 
• Quality Defects: Poor quality can be costly. The cost of quality defects, including rework and scrap, can range from 15% to 20% of sales revenue, with some instances reaching as high as 40%.

In a competitive market, a high-performance workforce is not just an advantage—it's a necessity. They enable organizations to do more with less, stay innovative, and retain top talent, creating a foundation for sustainable growth and long-term success. By prioritizing the development of these teams, organizations can unlock their full potential and thrive in today’s dynamic business landscape.

Step 3: Key Characteristics of Highly Performing Teams

High-performing teams share a set of critical characteristics that set them apart and drive exceptional results. Dependability is a foundational trait—team members consistently deliver on commitments and hold each other accountable, ensuring reliability and trust. These teams also operate with a strong sense of purpose and impact, aligning their work with meaningful goals that contribute to broader organizational success. Clear communication and role clarity eliminate confusion, enabling seamless collaboration and efficient execution. Additionally, high performance teams foster psychological safety, creating an environment where members feel comfortable sharing ideas, admitting mistakes, and challenging each other constructively. By combining trust, focus, and a commitment to continuous improvement, these teams consistently achieve outcomes that exceed expectations.

Step 4: What High-Performance Teams Do Differently

Teams with high performance distinguish themselves through specific behaviors that elevate their performance and results. They prioritize regular feedback, use it as a tool for continuous improvement, and engage in open communication to ensure alignment and trust. Performance monitoring is another key behavior, with teams consistently measuring progress against goals to identify areas for improvement. For example, a meta-analysis published in Human Factors found that teams engaging in structured debriefing sessions improved their performance by approximately 20-25%. Debriefing allows teams to reflect on their actions, discuss what went well, and identify areas for improvement, leading to enhanced productivity and problem-solving capabilities (Wikipedia).

Similarly, research from Harvard Business School demonstrated that individuals who spent time reflecting on their work performed significantly better than those who did not. In a field experiment, employees who spent 15 minutes at the end of the day reflecting about the lessons learned performed 22.8% better after ten days than those who did not reflect. While this study focused on individual performance, the principles can be applied to teams, suggesting that collective reflection can boost overall productivity and problem-solving skills (HBS Library). These behaviors—combined with a culture of trust and accountability—enable teams to adapt quickly, collaborate effectively, and consistently achieve exceptional outcomes.

Step 5: Practical Tips for Building High-Performing Teams

Building a high-performing team requires deliberate action and strategic focus. Start by prioritizing trust and collaboration—foster an environment where team members feel safe to share ideas, challenge each other, and work together seamlessly. Next, clarify roles and performance goals to ensure everyone knows their responsibilities and how their work contributes to team success. Implement regular team reviews to track progress, address obstacles, and celebrate wins, while embedding continuous feedback loops to promote growth and improvement. Finally, encourage open communication and align efforts with organizational objectives to keep the team focused and motivated. These strategies form the foundation for a team that not only works efficiently but consistently achieves exceptional results.

H3: Step 6: Who Is Responsible for Building High-Performing Teams?

While leadership plays a critical role in building high-performance teams, success is a shared responsibility that includes contributions from every team member. Leaders set the vision, establish clear goals, and create an environment of trust, accountability, and psychological safety where teams can thrive. They provide the resources, guidance, and support needed to empower individuals to perform at their best. However, team members are equally responsible for bringing commitment, collaboration, and ownership to the table. By actively communicating, delivering on responsibilities, and supporting one another, team members contribute to the culture of excellence that defines high-performing teams. It’s this partnership between strong leadership and engaged team members that drives sustainable success. Consider having a senior sponsor behind your team development goals who sits in the C-suite, but also cultivates ambassadors at other levels to keep the initiative alive in the field.

H3: Step 7: Leveraging Tools to Enhance Team Performance

The right tools can significantly enhance team performance by streamlining workflows, improving collaboration, and ensuring accountability. Performance management software like 15Five or Lattice helps teams set clear goals, monitor progress, and provide regular feedback, keeping everyone aligned on priorities. Project management systems such as Asana, Trello, or Jira make task delegation, progress tracking, and deadline management seamless, reducing confusion and inefficiencies. Meanwhile, communication platforms like Slack or Microsoft Teams facilitate real-time conversations, file sharing, and updates, ensuring teams stay connected and informed.

For functional teams, these tools provide the structure needed to operate efficiently, while for high-performing teams, they unlock opportunities to innovate, collaborate at a deeper level, and maintain focus on delivering exceptional results. By leveraging technology, teams can minimize manual effort, improve visibility, and free up valuable time to focus on high-impact work.

If you are serious about having high-performing teams, you must invest in them. What you invest in communicates what matters to senior leadership more than any words can. Then, always make sure to measure in alignment with the goals. The old adage, "What gets measured gets done," underscores both the value of alignment between goals and tools, and the value of having the right tools!

H2: Bringing It All Together: Functional vs. High-Performing Teams

Functional and high-performance teams share a foundation of efficiency, clear communication, and aligned roles, but the key difference lies in their outcomes and mindset. Functional teams operate smoothly, meeting deadlines and executing tasks reliably, while high-performing teams go beyond execution to achieve exceptional results that drive organizational growth and innovation. Both types of teams prioritize structure and collaboration, but highly performing teams push boundaries, embrace continuous improvement, and focus on delivering measurable impact.

While functionality is essential for stability and consistency, it is not the finish line. Performance takes a team to the next level, turning a group of competent individuals into a force that exceeds expectations and creates lasting value. By understanding these distinctions and fostering the traits of high performance, leaders can elevate their teams to reach their full potential.

H2: Steps You Can Take Today

Here’s a quick checklist to improve team functionality and performance:

1. Clarify Purpose and Goals – Align on a clear mission and measurable objectives.
2. Build Trust and Safety – Foster open communication and a judgment-free environment.
3. Set Roles and Responsibilities – Clearly define roles to avoid confusion and overlap.
4. Focus on Results – Prioritize measurable outcomes over task completion.
5. Implement Feedback Loops – Provide regular, constructive feedback to drive improvement.
6. Leverage Tools and Technology – Use tools like Asana, Jira, and performance software to streamline workflows.
7. Promote Collaboration – Encourage teamwork and diverse perspectives to spark innovation.
8. Recognize Success – Celebrate wins to boost morale and motivation.
9. Encourage Continuous Learning – Invest in skill development and growth opportunities.
10. Stay Resilient – Anticipate challenges and adapt strategies to stay on track.

Start applying these steps today to strengthen your team and set the stage for exceptional performance.

Conclusion

Building a high-performing team starts with understanding where your team stands today. Take the time to assess your team’s functionality and performance—are you meeting expectations, or are you exceeding them to drive real impact? By identifying areas for growth and fostering trust, collaboration, and a focus on results, you can elevate your team to new levels of success.

We’d love to hear from you—what challenges have you faced in building high-performing teams, and what strategies have worked for you? Share your experiences in the comments or explore our additional resources on team development to take the next step toward unlocking your team’s full potential. Together, let’s build teams that don’t just function but truly perform.