How to build a high-performing team

“How can we do more with less?” is the question keeping business leaders up at night. With economic pressures rising and company budgets shrinking, leaders need to understand how to build a high-performing team, to get the most out of their people without burning them out.

Leaders want lean, agile teams that hum along like a finely tuned machine, consistently delivering top-notch work. But the million dollar question is: How do you create a team like that?

This article will explain how the science behind human behaviour, motivation and decision-making can help you understand how to build a high-performing team.

What is a high-performing team?

To understand how to build a high-performing team, it’s essential to define what constitutes one first.

A high-performing team is the engine of your company – a sleek, powerful machine that keeps the wheels turning, driving growth and ensuring you stay ahead of the competition. These teams are made up of employees who are fully engaged in their roles and aligned with your organisation’s goals.

Within the team, like a well-tuned symphony, the collaboration feels effortless because everyone knows their part and plays in perfect harmony. Problems are solved with precision, communication flows smoothly, and each member takes ownership of their work. With trust and accountability as their foundation, they navigate challenges with finesse and adapt without missing a beat.

For leaders, these teams are a goldmine. They don’t just achieve business objectives but also help foster a positive organisational culture that boosts engagement, reduces turnover, and drives overall productivity.

Want to know how to build a high-performing team? Let’s break it down.

The six conditions of a high-performing team

The key to building a high-performing team is setting up and maintaining the right psychological conditions. These six conditions are foundational for anyone wondering how to build a high-performing team.

To develop these conditions, MindGym synthesised a vast amount of research and distilled it into these six essential psychological conditions for high performing teams:

Purpose: Ensure employees understand how their work impacts the bigger picture benefits their performance and boosts their wellbeing, life satisfaction and general health too ^[1].

Attention: Newsflash: people like being noticed. Studies show that when managers pay attention to how their team is doing, performance can improve by 30.3%. ^[2].

Recognition: It’s not just about giving pats on the back – consistently providing fair and accurate feedback can boost performance by a whopping 39%^[2].

Challenge: Push your team to stretch themselves a little. Research shows that setting challenging goals boosts productivity by about 1.5 times compared to telling people to ‘do their best’^[3].

Growth: In a study of workday diaries, making progress was a key factor in 76% of ‘best day’ entries. Feeling that we’re growing and developing in our role improves our day-to-day motivation and productivity, while also driving loyalty^[4].

Choice: Autonomy isn’t just a buzzword – it’s a game changer. Having control over our work is one of our core psychological needs, which is essential for our motivation and wellbeing. Let your people make decisions, and you’ll get happier, more engaged, and productive employees in return^[5].

If you’d like to get a deeper understanding of the six conditions of developing a high-performing team, read the Reinventing Performance Management whitepaper.

Now that you’ve got the psychology down, it’s time to get practical.

How to build a high-performing team in five steps

In this section, we’ll walk through five actionable steps and share how to build a high-performing team by focusing on fostering the right culture and environment.

1. Foster a culture of psychological safety

Coined by Professor Amy Edmondson, psychological safety is the belief that you won’t be punished for speaking up with ideas, questions, or mistakes. In a nutshell? It’s about creating an environment where your team can take risks without fear.

Many think of psychological safety as a ‘nice-to-have’, but that’s far from the truth. It’s not just a soft concept – it’s a proven, powerful tool.

A study of drug development teams found that teams with strong psychological safety outperformed those without it. What’s more, while most teams felt less satisfied when their group was more diverse, the opposite was true for teams with high psychological safety ^[6].

When teams achieve a sense of psychological safety, employees are more likely to try new things and speak up about potential issues, which leads to increased innovation, less mistakes, and higher overall performance.

Leaders can cultivate an environment of psychological safety by:

• Encouraging open dialogue: Be curious, not critical, and make sure every voice feels heard.
• Being open to healthy dissent: Allow team members to feel confident raising concerns or flagging potential issues without fear of repercussions.
• Normalising mistakes: Reinforce that failures are learning opportunities, not something to cover up or be ashamed of.
• Modelling vulnerability: Lead by example – share the mistakes you’ve made or constructive feedback that you’ve received to show that you’re human too.

2. Prioritise sustainable productivity

Organisations want to maximise the productivity of their employees, but to build a high-performing team, this cannot come at the expense of wellbeing. With 41% of employees reportedly experiencing “a lot of stress”, and burnout on the rise world-wide, managers need to focus on long-term strategies that balance both.

Sustainable productivity is the answer. It’s a strategy for driving high performance while ensuring your people flourish at work.

The research supports this approach. The happy-productive worker thesis shows that employees reporting higher levels of wellbeing tend to also report higher levels of labour productivity.

Plus, weaving wellbeing into the fabric of daily work improves employee engagement. Studies show it also boosts task performance by 12%, creativity by 34%, and job satisfaction by 41%.^[7] Not bad, right?

To achieve sustainable productivity, you need to:

Empower employees: Equip employees to take ownership of their own productivity and wellbeing at work, and collaborate with them to provide the resources they need to thrive.

Prioritise performance conversations: When managers have regular check-ins with their employees, they can quickly remove any roadblocks and provide support to maximise productivity.

3. Drive engagement through autonomy

Autonomy is a crucial factor in how to build a high-performing team. It’s also a powerful lever in driving employee engagement, creativity, and long-term job satisfaction. When employees have the freedom to decide how they approach their work, they’re more motivated, innovative, and committed to achieving their goals.

A study by Cornell University revealed that companies offering their employees autonomy experienced four times higher growth rates and one-third of the turnover.

On the flip side, 69% of employees who experienced micromanagement considered changing jobs as a result^[8]. Depriving employees of autonomy stifles their potential, increases frustration, and can lead to disengagement or even burnout.

How can you balance autonomy with accountability?

• Make expectations explicit: Clearly define goals, outcomes, and deadlines, but give employees the freedom to determine how they’ll achieve these targets. By allowing employees to chart their own course, you foster a sense of ownership and accountability.
• Be available for support (without threatening autonomy): While autonomy is essential, it doesn’t mean leaving employees to fend for themselves. Strike a balance by being approachable and available for guidance, while resisting the urge to micromanage.
• Give continuous feedback: Feedback should be frequent, constructive, and focused on the future. A continuous approach to feedback helps employees course-correct while also giving them the opportunity to improve and grow. Make sure feedback is a two-way street – giving them a voice in how to improve processes and outcomes can further enhance their sense of autonomy.

4. Focus on growth through feedback and reflection

Feedback isn’t about finger-pointing – it’s about growth. And done right, it’s a powerful tool for boosting performance. But here’s the catch: not all feedback is created equal.

One seminal study found that 33% of feedback actually made performance worse.^[9]. The takeaway? It’s not just about giving feedback, it’s about how you give feedback.

• Provide timely feedback: Strike while the iron is hot. Where possible, feedback should be given in real-time.
• Target actions, not personalities: When giving feedback, always keep the focus on what they did, not who they are.
• Focus on the solution, not the problem: During performance conversations, don’t dwell on the past. Instead, help them to overcome challenges and come up with solutions.

5. Create a sense of belonging and identity

It’s human nature: people are motivated and perform better when they feel a strong sense of belonging to a group. Studies show that even when doing boring, repetitive tasks, just being a part of a team gives work more meaning^[10].

Leaders who prioritise inclusion experience higher employee engagement as well as lower absenteeism and turnover^[11]. When people feel part of something, they’re more committed and energised, no matter what the work is.

• Build a strong culture: Shared experiences, traditions, and goals bring teams closer together.
• Celebrate diversity: Acknowledge the unique strengths each person brings to the table.
• Foster inclusion: Ensure all team members feel valued by highlighting their contributions and asking for their input on key decisions.

The benefits of building a high-performing team

So, what’s in it for you? Glad you asked.

Understanding how to build a high-performing team offers wide-ranging benefits that can significantly impact an organisation’s performance and success. Here’s a taste of the perks:

• Driving productivity and efficiency
• Happier, more engaged employees
• Lower turnover
• Innovation on overdrive
• A culture of collaboration
• Improved creative problem-solving and idea generation
• Meeting or exceeding business goals

Ultimately, investing in building a high-performing team leads to sustained growth, improved morale, and a competitive edge in the market.

How to track and measure your team’s performance

After learning how to build a high-performing team, tracking and measuring its performance is the next critical step. To keep your team on the fast track, you need to measure progress. The trick? Balance both quantitative and qualitative data to assess progress and make informed adjustments.

1. Set clear, aligned goals

Start with clear goals that are synched to your organisation’s mission. Tie them to both tangible KPIs (like sales numbers) and behavioural ones (like collaboration and innovation).

2. Gather qualitative data through feedback and conversations

Numbers are only half the story. Solicit feedback from team members and stakeholders to gauge morale, dynamics, and those sneaky, hard-to-measure factors.

3. Measure wellbeing and engagement

High-performing teams aren’t just about output – they need to be sustainable. Keep tabs on wellbeing with surveys and regular check-ins to avoid burnout.

4. Adjust and iterate based on data

Keep it dynamic. Use both numbers and feedback to tweak and adjust your strategy. If certain KPIs aren’t being met, explore the reasons behind it and collaborate with your team to adjust strategies.

Now you know how to build a high-performing team. What’s next?

Building a high-performing team isn’t just about hiring rockstars and setting ambitious targets. It’s about creating a culture where every team member feels valued, motivated, and ready to conquer challenges together.

When behavioural science is integrated into team dynamics, the result is a team that not only performs at a high level but also thrives on collaboration, innovation, and sustained success.

So, go ahead – apply these strategies and watch your team reach new heights. The science has your back.

If you'd like to dive deeper into the practical advice on how to build a high-performing team, watch our recent webinar on sustainable productivity.

References

1 Allan, B.A., Batz-Barbarich, C., Sterling, H.M., & Tay, L. (2018). Outcomes of meaningful work: A meta-analysis. Journal of Management Studies, 56(3)

2 Building the high-performance workforce’, Corporate Leadership Council. Corporate Executive Board, 2002

3 ‘Goal setting and task performance: 1969–1980,’ Edwin A. Locke, Karyll N. Shaw, Lise M. Saari, & Gary P. Latham. Psychological Bulletin, 1981.

4 ‘The progress principle: Using small wins to ignite joy, engagement, and creativity at work’, Teresa Amabile & Steven Kramer. Harvard Business Press, 2011.

5 ‘The support of autonomy and the control of behavior’, Edward L. Deci & Richard M. Ryan. Journal of Personality and Social Psychology, 1987.

6 ‘Research: To Excel, Diverse Teams Need Psychological Safety’, Henrik Bresman & Amy C. Edmondson. Harvard Business Review, March 2022.

7 ‘Thriving at work: A meta-analysis’, Anne-Kathrin Kleine, Cort W. Rudolph & Hannes Zacher. Journal of Organizational Behaviour, April 2019.

8 ‘My Way Or the Highway: The Micromanagement Survival Guide, Harry E. Chambers. Berett-Koehler Publishers, 2008

9 ‘The effects of feedback interventions on performance: A historical review, a meta-analysis, and a preliminary feedback intervention theory’, Avraham N. Kluger & Angelo S. DeNisi. Psychological Bulletin, 1996

10 Toraldo, M.L., Islam, G., & Mangia, G. (2019). Serving time: Volunteer work, liminality and the uses of meaningfulness at music festivals. Journal of Management Studies, 56(3), 617–654.

11 Coqual. (2020). The power of belonging: What it is and why it matters in today’s workplace.