Picture the scene (McKinsey & Company opens their new report with it, and I've lived it many times as a coach): the CEO lays out a bold strategic move. Long pause. Heads nod. Polite murmurs of agreement. Everyone leaves the room aligned
Except they're not
That "polite consensus" is often the loudest signal that a top team is quietly underperforming. People don't feel safe enough to challenge. Or they're unsure of their role in the decision. Either way, the CEO has a serious problem, dressed up as a good meeting
The data from McKinsey's new study of 354 top-team members across 28 global companies is striking 👇
🔹 Nearly 75% of cross-functional teams are dysfunctional (Harvard Business Review)
🔹 Companies with aligned top teams are almost 2x as likely to deliver above-median financial performance
🔹 Team-centric transformations lift organisational efficiency by up to 30%
🔹 70%+ of CEOs in McKinsey's CEO Excellence programme name building their top team as their number one priority
And yet, top teams consistently score lowest on the very things that make them great: psychological safety, innovative thinking, conflict management, and honest feedback. They score highest on goals and commitment, the polished stuff that looks good on a slide
The 5 drivers most correlated with top-team performance? 🎯
1️⃣ Role definition, does everyone know what they own?
2️⃣ Purpose, can each member articulate what the team is here to do?
3️⃣ Innovative thinking, is dissent welcomed or punished?
4️⃣ Communication, do people say the real thing, or the safe thing?
5️⃣ Recognition and psychological safety, is it safe to be wrong here?
Here's the uncomfortable truth for CEOs and boards 💡
The best top teams are not the most agreeable. They are the ones that actively embrace healthy conflict, surface uncomfortable truths, and consistently call out the elephants in the room
Building that kind of team is not a one-off offsite. It's a deliberate, ongoing investment. As McKinsey puts it, CEOs who commit to this can turn their top team into their superpower🚀
📌 Question for CEOs, Chairs and CHROs reading this:
When was the last time your top team openly disagreed, and left the room stronger for it?
If the honest answer is "I can't remember," that is the work
But don't take my word for it, take it from a FTSE CEO who has embarked with me and his top team on the Leadership Team Journey:
"The transition coaching has really helped me to think through and understand context, leadership, and people, materially better. The coaching has helped me to further mature in my relationship management, decision making and people leadership. Our work has been tremendously useful and I’m confident that it will continue to remain useful both for me and for my executive leadership team.”
#TopTeamPerformance #CEOExcellence #Leadership #TransitionIQ
About Navid Nazemian
Ranked as the world’s #1 Executive Coach by CEO Today for the third year running, I partner with senior leaders to navigate complexity, accelerate performance, and lead through critical transitions. Over the past two decades, I’ve supported hundreds of executives in overcoming unproductive thinking and solving their most complex leadership challenges—helping their organizations build world-class cultures and create lasting value.
If you’d like to reflect on a leadership challenge, an upcoming transition, or how I might support you, you’re very welcome to reply directly to this email.
You can also:
1. Connect with me on LinkedIn for additional leadership insights
2. Explore my international best-selling book "Mastering Executive Transitions: The Definitive Guide" described by Dr. Marshall Goldsmith as “THE ultimate guide to executive transitions to help leaders achieve their highest potential”
3. Enrol in my newly launched e-Learning programme Mastering Leadership Transitions - my transition methodology in a self-paced format for leaders at every level
4. Work with me on a per-session basis via EveryExpert - a flexible alternative to a full coaching engagement, starting with a complimentary 15-minute Chemistry Call
What's Next? More insights on leadership, transitions, and executive effectiveness are coming your way next week. I’d genuinely value your perspective—feel free to share your reflections by replying to this email. I read every response.
Navid
