Creating high-performing leadership teams

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Creating high-performing leadership teams: Lessons from ‘Made to Thrive’

AUTHOR
Sharn Rayner

DATE
28 November, 2024

CATEGORY
Blog & Resources

Leadership is about more than just making decisions – it’s about building teams that thrive. In fellow Gravitas Impact coach Brad Giles’ Made to Thrive, we are reminded of the importance of effective leadership at every level, not just at the top.

The challenge? Creating a culture where everyone in the Senior Leadership Team (SLT) shares accountability for the company’s direction and success.

Whether you’re the CEO or a key member of the SLT, these lessons offer actionable steps that can transform the way leadership teams function. We know that leadership is not just about strategy, but about how well that strategy is communicated, executed, and sustained across the organisation. Let’s dive into some key concepts.

Accountability: Tug of war and the dilution of responsibility

Accountability within a leadership team can make or break an organisation. A common issue, as Giles explains, is the dilution of responsibility – the more people involved, the less accountable each person feels. This is akin to the classic tug of war analogy: when many people pull, individual effort declines because each person assumes others will pick up the slack. Similarly, when no one in a leadership team is given full accountability for their defined key results area, no-one takes the lead, and company performance slips.

How to drive accountability in your team:

  1. Encourage team members to find solutions rather than spoon-feeding them with the answers – be a coach.
  2. Measure performance with 1-2 KPIs per role and track progress weekly. Remembering that these must align with the Core Purpose and the strategic goals.
  3. Exit underperformers quickly. Delayed decisions only damage the team. As I repeatedly say to clients, no A Player wants to work with a C Player. A Players would sooner leave.

The key takeaway here is simple: clear expectations lead to better performance. Establishing SMART KPIs and holding team members to them is crucial. Moreover, not addressing non-performance signals that accountability is optional, eroding team trust over time.

The ambassador role: Serving and representing with humility

An effective leader must be an ambassador both within and outside the company. In Made to Thrive, Giles emphasises that humility is essential for serving others effectively, this very much aligns with Jim Collins’ emphasis on Level 5 Leaders and a CEO’s humility and will to drive results. Leaders must be willing to check their egos at the door and serve the company’s broader interests. Whether it’s attending contract signings or speaking at industry events, the leader’s visibility and representation of the company’s values are paramount.

Moreover, building a public profile and regularly engaging with the wider industry is critical. As Giles notes, leaders should assess their involvement in public forums, conferences, and speaking engagements. The presence of leadership at such events influences public trust and credibility.

How to be a positive, proactive ambassador for your company – ask yourself:

  1. How many client or supplier signings have you personally attended this year?
  2. Is every new employee welcomed either in person or virtually by the CEO or a senior leader – this small gesture has a big impact when it comes to engagement.
  3. Do you hold regular all-hands meetings to ensure that every team member knows the company’s core values and purpose. Communicate, communicate, communicate… if the team aren’t mimicking back to you these key messages in jest, you aren’t saying them enough.

Culture: The foundation for long-term success

A positive culture is what unites a team and attracts the right talent. Without a strong, cohesive culture, companies risk high turnover and disengagement. In Made to Thrive, Giles echoes the sentiment of Built to Last (Jim Collins), emphasising the importance of a shared purpose, values, and a belief in the company’s vision.

Pride in your work is a human need that must be fulfilled. Employees must feel proud of their product, manager, team, and company. If this pride isn’t present, they will eventually leave, no matter how attractive the compensation package. How proud are your employees?

Culture also hinges on living up to promises – both to customers and employees. Every time leadership fails to deliver on a promise, trust is eroded. The result? Lower retention and declining productivity.

How to build a positive culture:

  1. Hold leaders accountable for embodying the company’s values every day, not just in words but in actions.
  2. Promote a feedback culture: In the 2014 HBR article “Your Employees Want the Negative Feedback You Hate to Give” authors, Zenger and Folkman showed that 72% of employees want corrective feedback to improve their performance.  Kim Scott emphasises this in her book Radical Candor when she says, “The worst thing you can do is let people think they aren’t being judged. The next worst thing is to judge them without telling them.” This highlights how crucial it is for leaders to offer direct and honest feedback, as employees value transparency and clarity, which allows them to grow and improve.
  3. Ensure employees see how their daily work connects to the company’s larger purpose and make your employees proud!

Strategy: Evolution and white space

An effective strategy delivers a unique and valuable position in the marketplace. Often, leadership teams spend too much time on operational matters rather than refining the company’s strategy. True strategy is iterative—it evolves based on execution and informs future decisions.

As Giles explains, a company must continually seek the “white space”—areas of opportunity where competitors are absent. This means that the strategy isn’t static but constantly adapts as market dynamics change.  This isn’t new, we know this is the message of Porter, of Susko of Sawhney, we need to be different, wanted and valued – with an ability to communicate and deliver effectively on this unique and valuable position. That said, how many CEOs and SLTs ignore this message at their peril?

Leaders must also ensure that their strategy is understood at every level of the business. According to Gibson in her 2023 HBR article “5 Reasons Strategy Execution Fails”, 90% of strategies fail due to poor communication.

How to for sustained strategy execution:

  1. Hold quarterly offsites to reflect and iterate on the company’s strategy – get away from the office noise.
  2. Ensure that every quarter’s priorities move the company closer to its BHAG (Big Hairy Audacious Goal).
  3. Identify and map products or services at risk of decline to ensure continued growth.

Succession planning: Reducing risk for long-term growth

Finally, Made to Thrive underscores the importance of succession planning. Succession planning isn’t just about preparing for leadership transitions—it’s about ensuring the business is resilient in every aspect, from people to products to suppliers.

Every significant role in the business should have a virtual bench of at least two potential successors. This ensures that if someone leaves or steps down, the company isn’t left scrambling.

Similarly, products and services that are at risk of decline must be identified, and alternative strategies should be put in place to mitigate those risks.

Building a Succession-Ready Organisation:

  1. Identify potential successors for key roles and maintain regular contact with them.
  2. Map products, services, and suppliers at risk of disruption each quarter.
  3. Make all major decisions based on a clear set of criteria focused on ROI and payback.

Creating high-performing leadership teams, Made to Thrive, Brad Giles

 

 

 

 

 

 

 

 

 

 

 

My key takeout: Shared leadership accountability

In Made to Thrive, Giles paints a clear picture of what it takes to build leadership teams that thrive. The message is clear: leadership isn’t just about top-down decision-making. It’s about shared accountability, strategic clarity, and a culture of continuous improvement.

By focusing on these principles—accountability, humility, culture, strategy, and succession planning—companies can create leadership teams that are not only effective but resilient. And resilience, in today’s business landscape, is the ultimate competitive advantage.

Interested to know where you as CEO and/or as a member of an SLT excel? Or where there is opportunity for improvement?  Take the Made to Thrive assessment or contact our team at Two Tides, we’re here and ready to help you thrive.