Cracking The Code Of Team Effectiveness Mckinsey

Leo Migdal

-Dec 12, 2025, 4:19 AM

cracking the code of team effectiveness mckinsey

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.

In today’s fast-paced and complex business environment, cracking the code on team effectiveness is no longer a luxury—it’s essential for organisational success. As companies strive to scale, the ability to build cohesive, high-performing teams that work collaboratively within and across departments becomes a critical competitive advantage. In this article, I’ll address three myths about teamwork, unpack the 17 drivers of team effectiveness identified by McKinsey, and explore three archetypes of teams to help you harness the true power of your... Myth 1: Teams Should Be Stacked with Top TalentIt’s a common misconception that the best teams are made up of top talent in every role. However, effective teams focus on individual and collective skills that align with the specific goals of the team. The mix of people and their roles matters far more than individual brilliance.

For example, in the 4x100m relay at the Olympics, the U.S. team, composed of world-class runners, dropped the baton due to a lack of cohesion and preparation. This illustrates that talent alone cannot substitute for cohesive teamwork. To achieve exponential performance, businesses need the right people in the right roles with clarity about how they contribute to the team’s collective success. Myth 2: Teams Know What They Need to Work OnTeams often overestimate their awareness of their strengths and blind spots. Research shows that teams frequently focus on areas they are already good at, neglecting gaps that could significantly enhance performance.

By bringing in diverse perspectives and inviting external input, teams can uncover hidden opportunities for growth. This highlights the importance of creating a culture of feedback and maintaining flexibility to adapt and innovate. Myth 3: There’s a One-Size-Fits-All Playbook for TeamsNo universal blueprint guarantees team effectiveness. Each team operates differently, depending on their interdependence and goals. Success depends on how well team members work together, align their efforts, and adapt to the specific context. Whether it’s outcome interdependence (individual success tied to team outcomes) or task interdependence (collaboration required to achieve goals), effective teamwork is dynamic and requires continuous coordination.

With the increasingly complex business world of today, effective teams are more crucial than ever. They're the engine room driving organisational success, yet many businesses struggle to unlock their full potential. To truly harness the power of teamwork, we must first debunk some common myths. Myth 1: A team of top talent is all you need. While individual talent is important, it's not the sole determinant of team effectiveness. A team composed of highly skilled individuals may still falter if they lack cohesion and shared goals.

The key to a high-performing team lies in the right mix of skills, personalities, and complementary strengths. Myth 2: Teams know best what they need to improve. Often, teams may be unaware of their own blind spots and limitations. To truly optimise their performance, teams need to seek external feedback and insights. By identifying areas for improvement and prioritising the right actions, teams can significantly enhance their effectiveness. In today’s collaborative and dynamic work environments, effective teams are pivotal to organizational success.

However, research reveals that three out of four cross-functional teams fail to meet key performance metrics. Contrary to popular myths, individual talent or strong leadership alone is insufficient to guarantee success. Instead, a focus on contextual and structural factors is crucial. Studies have identified 17 team health drivers—grouped into configuration, alignment, execution, and renewal—that explain up to 76% of the differences in team performance across metrics like efficiency, results, and innovation. Of these, trust, communication, innovative thinking, and decision-making are the most impactful drivers. Building trust, for example, involves fostering cognitive and emotional bonds, as demonstrated in instances where team members shared personal stories to deepen mutual understanding.

Research also debunks the belief in a one-size-fits-all approach to team effectiveness. Teams vary in their levels of task and outcome interdependence, requiring tailored strategies. High-performing teams, such as those in healthcare or agile development, emphasize clear role definitions and collaborative commitment. Organizations must systematically embed team-effectiveness practices, incorporating tools like diagnostics, governance processes, and leadership coaching. Scalable approaches, such as the "train-the-trainer" model, have enabled organizations to enhance performance across hundreds of teams, signaling a roadmap for long-term success. Last month, McKinsey & Co.

published an article on team effectiveness, based on its “Team Effectiveness Index,” a measure it developed and tested over the last two years with more than a hundred teams across the world. In the article, they described the commonalities among top-performing teams and addressed three commonly believed myths that are contradicted by the data. In a slight surprise to us, each of these three myths are directly addressed in our “Hidden Talents, Winning Teams” series on team success. We will mention these myths and how they relate to our previous newsletter posts, but first let’s briefly recount the other insights from the data. According to McKinsey’s research, the most important performance differences among teams relate to (a) the efficiency with which they meet their deadlines, (b) the quality of their results, and (c) the level of innovation... We can note that these are each performance metrics, not measures of employee satisfaction—as we frequently emphasize, the common thinking that people and team investments are about “being nice to employees” is belied by...

According to McKinsey’s data, four health drivers come up as the most important across all three performance areas: Trust, Communication, Innovative thinking, and decision-making. Feedback and role definition are also near the top of all four lists. In this episode of Impactful Teamwork, host Julia Felton tackles common myths about teamwork and reveals crucial insights for enhancing team performance. She highlights the importance of a balanced mix of individual and collective skills, referring to scientific research and examples such as the U.S. Olympic relay team. Julia explains McKinsey’s identification of 17 health drivers categorised into configuration, alignment, execution, and renewal, which significantly impact team effectiveness.

She also introduces three team archetypes—cycling, relay, and rowing—illustrating different interdependence levels and performance drivers. Listeners are encouraged to assess their team types and focus on essential health drivers to optimize teamwork and achieve extraordinary results. 00:00 Introduction to Impactful Teamwork 04:28 McKinsey’s 17 Health Drivers for Team Performance

Cracking The Code Of Team Effectiveness Mckinsey

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