10 Keys to Building Effective Teams

Behind every successful business lies a strong team of individuals who work with dedication and efficiency. No one can excel at everything or accomplish everything on their own. Humans are inherently social beings, designed to share, belong to groups, and collaborate.

In practice, however, building a cohesive and effective team is far from easy. People tend to be self-centered, and through our upbringing and education, we are often conditioned to seek individual success and recognition (e.g., in school). Moreover, within families, comparisons and competition are often fostered (“If only you were as good as your sibling…”).

On the other hand, teamwork demands collective effort: we all come together to achieve a shared goal, serve a common purpose, and work toward a collective business vision.

But what are the secrets to building effective teams with strong cohesion, deep connections between team members, and high performance?

1. Carefully select your people
Carefully select your people (employees, executives, partners) so that they not only have qualifications and skills but also possess qualities of cooperation and team spirit. If someone doesn’t listen to what you’re saying (i.e., doesn’t pay attention), repeats their own “narrative,” focuses almost exclusively on their “self” and personal desires, and doesn’t ask questions showing interest in the workings of the company, they are likely not a “team player.” The “attitude” of individuals is more important than their resume. How do they think? How do they treat others? How willing are they to collaborate for a collective, team-based result? Narcissistic personalities do not fit into collectives.

2. Inspire your people with a vision
People need intellectual nourishment. It’s not enough for them to just be paid; they also need a purpose, a vision, something to fight for that has real meaning. As a business owner or leader, you need to understand how your company helps society become better, makes your customers happier, solves problems, and helps people fulfill their dreams. The “work narrative” shouldn’t be mundane and mechanical, but should be enriched with values and ideals.

3. Differences complete the whole
Not everyone needs to be the same. On the contrary, you need different minds, specialties, abilities, and personalities of various types (introverts, extroverts, organized people, creative people, leaders, “helpers,” etc.). A smart leader knows how to leverage everyone’s strengths while emphasizing the need for the team to accept differences so that the whole benefits and work gets done.

4. Set goals and track them
A common mistake made by management is assuming that because they’ve hired a good person (with the proper qualifications), this person will perform well and do the job as expected without guidance, training, and feedback. This is not the case. People should work with clear goals, be systematically trained in their tasks, and their performance should be regularly measured with feedback provided on how they’re doing. It’s also important for them to provide feedback to the business with observations, suggestions, and ideas.

5. Assign projects to small teams
Forming small teams of 2-4 people to work on a common task or project can encourage closer collaboration and communication. This structure allows individuals to take on more responsibility while fostering stronger personal connections, which helps build trust and camaraderie.

6. Establish collective processes
It has been proven that “more minds are better than one” in most business decision-making situations. It’s good to have frequent meetings with your collaborators on topics such as sales, marketing, processes, new investments, etc. When people participate in collectives, they become more emotionally involved, feel “valued,” and are more likely to implement the decisions made with their participation rather than those made without them (and without their input). Additionally, collective processes, beyond their work-related purpose, can have a social aspect aimed at strengthening relationships among members and improving team “connection.” Outings, trips, dinners, events, parties, and sports activities are opportunities for collective activities and team-building.

7. Reward group achievements
It’s important to recognize and reward group achievements to reinforce a sense of unity and shared success within the team. Rewarding group achievements can take many forms—whether it’s a monetary bonus or simple verbal praise—but the key is ensuring that the entire team feels recognized for their collaborative effort.

8. Set boundaries and rules
Equally important is setting clear rules and boundaries within your team. These boundaries create an environment where respect, responsibility, and professionalism can thrive. Defining expectations around communication, deadlines, responsibilities, and behavior ensures that everyone is aligned and understands their role within the team. It’s also crucial to explain to all team members that any behaviors that explicitly or implicitly involve discrimination, name-calling, negative criticism, or gossiping against other members are not tolerated.

9. Take corrective action when needed
Additionally, managing low-performing members or those who do not contribute enough or violate team behavior norms is essential. In such cases, the manager or leader should call the individual in private to discuss their behavior or performance. During this conversation, the leader should clearly explain how the individual’s actions do not align with the company's policies and norms and how they negatively affect the team’s dynamics and overall success. The manager should provide constructive feedback, offer support or resources to help the individual improve, and set clear expectations moving forward. By addressing these issues early, leaders can help individuals get back on track while maintaining a healthy team environment.

10. Be the Role Model
Finally, the manager or leader must be a role model for the qualities they wish to cultivate within the team. Leaders should embrace the spirit of teamwork, value diversity, and actively demonstrate the behaviors and values they want to see in their team members. Whether it's promoting collaboration, accepting differing opinions, or treating everyone with respect, the leader must set the example for how the team should function.