Why Leadership Teams Fail and How to Fix Them (TPL Insights #239)
By Rob Andrews (inspired by Thomas Keil and Marinna Zangrillo’s HBR article Why Leadership Teams Fail September 2024)
In my years working with CEOs and leadership teams, one thing keeps standing out—leaders often overlook the health of their senior leadership teams, and that's a huge mistake. A dysfunctional leadership team can cripple an organization's ability to execute strategy, lower morale, and even shorten a CEO's tenure. Unfortunately, despite its importance, team health is something most executives prefer not to talk about.
As part of a research project, Keil and Zangrillo interviewed over 100 CEOs and senior executives to understand what was happening behind the closed doors of these leadership teams. The picture painted was not pretty. Many leaders expressed disappointment and frustration about their teams, often speaking anonymously because of the sensitive nature of the issue.
One CEO with whom Keil spoke, shared that when he joined his company, he inherited a leadership team that was essentially broken. “There was almost no communication within the team. The board was out of the loop, and the levels below management had no idea what was happening. On top of all that, the team members didn’t like each other,” he said. This level of dysfunction is more common than we think, often resulting in procrastination, political infighting, unproductive debates, and complacency. As a result, the company suffers.
Based on Keil’s research, they identified a few common patterns of dysfunction among leadership teams. We can broadly categorize them into three types: Shark Tanks, Petting Zoos, and Mediocracies. Each of these has its own set of problems, but all of them prevent teams from reaching high performance. Let’s dive into each one and explore how to fix them.
Shark Tanks: Where Competition Goes Too Far
In Shark Tanks, competition reigns supreme. Naturally, highly ambitious individuals end up in leadership roles, and a healthy amount of competition can fuel innovation and drive results. But when unchecked, that ambition can lead to destructive behavior. In Shark Tank teams, meetings become battlefields where personal agendas take precedence over collaboration, decisions get made through power plays, and strategic initiatives stall because team members can't agree on anything.
A case in point: a Swiss bank Keil studied saw this play out when a new CEO took over. Some team members, unhappy with his appointment, began undermining him, slowing down key projects, and even leaking damaging information to the press. It got so bad that the board had to step in and publicly back the CEO to restore order.
Shark Tanks form when the CEO or team leader fails to set clear expectations or rein in aggressive behaviors. Even one rogue team member can turn the environment toxic, forcing others to abandon cooperation for self-preservation. The result? Meetings turn into shouting matches, backchannel negotiations replace open discussions, and team members badmouth each other to get ahead.
To spot a Shark Tank, watch out for signs like team members approaching the CEO one-on-one to discuss issues that should be brought to the group or making decisions through power struggles instead of collaboration. Executives might also question plans after they’re agreed upon or resist implementing them unless forced.
How to Fix a Shark Tank: It starts by addressing the problem head-on. Identify the individuals causing the trouble and make them aware of their impact. If they’re willing to change, offer coaching and guidance. But if they’re not, it might be time to let them go—no matter how talented they are. Shark Tanks need clear behavioral expectations, and leaders must model the collaborative and transparent behaviors they expect from their teams. Regular feedback and reinforcing positive behaviors are key to maintaining a balanced environment.
Petting Zoos: Where Niceness Rules the Day
On the flip side, we have Petting Zoos. These teams focus so much on harmony that they avoid conflict at all costs. While cooperation is important, teams need conflict and vigorous debate to tackle complex problems and innovate. In a petting Zoo, everyone’s trying to keep the peace, so meetings become echo chambers, and nobody wants to rock the boat by challenging assumptions or pushing for better solutions.
In one European services company Keil studied, the leadership team had a great sense of camaraderie, but that came at a cost. Team members were reluctant to hold each other accountable or discuss performance issues because they didn’t want to disrupt the harmony. They made decisions by consensus, but the lack of debate meant they missed opportunities for growth and innovation.
Petting Zoos form when leaders put too much emphasis on “niceness” without encouraging the healthy conflict that drives improvement. Team members fear being seen as self-serving or breaking the unspoken rule of mutual forbearance, where they avoid stepping on each other's toes.
How to Fix a Petting Zoo: The key is to encourage constructive conflict. Leaders need to create an environment where it’s okay to disagree, challenge ideas, and engage in healthy debates without it being taken personally. If discussions lack emotional intensity, that’s a sign that the team isn’t pushing hard enough. Encourage team members to put tough issues on the table, and make sure they know that questioning the status quo isn’t just allowed—it’s expected.
Mediocracies: Where Complacency Takes Over
Mediocracies are what happens when neither competition nor collaboration is emphasized enough. Team members in these organizations lack the skills, motivation, or drive to push for high performance, and the culture gets stuck in past glories. Mediocracies tend to form after long periods of success when teams become complacent and resistant to change.
One CEO I interviewed recalled inheriting a leadership team that simply wasn’t fit for purpose. They weren’t strong enough individually, didn’t work together, and had no sense of corporate purpose. The team had grown comfortable with the status quo, and the organization suffered because of it.
Mediocracies often emerge when leadership teams fail to adjust to changing circumstances. A team that thrives in a stable environment might not be equipped to handle periods of crisis or rapid growth. Without the drive to continuously improve, they become stuck in a rut.
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How to Fix a Mediocracy: Start by reinvigorating the team’s sense of purpose. Set new, ambitious goals and hold people accountable for hitting them. Evaluate whether the current team members have the skills and motivation needed to move the company forward. If they don’t, you’ll need to either develop them or bring in fresh talent. Mediocracies also require a balance between competition and collaboration—foster an environment where both are present in healthy doses.
Reversing Course
No matter what type of dysfunction your leadership team is experiencing, the good news is that these problems are fixable. Shark Tanks need clear direction and accountability; Petting Zoos need a dose of healthy conflict; and Mediocracies need a renewed sense of purpose and drive.
The most important thing is to address these issues before they take a toll on the company’s performance. By recognizing the signs early and implementing the right remedies, you can turn a dysfunctional team into one that works together to drive real results.
I hope this has given you some food for thought. If you’re struggling with any of these issues in your leadership team, let’s talk. We’ve helped many organizations get their leadership teams back on track, and we’d love to help you do the same.
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Warmest Regards,
Rob
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ROB ANDREWS
Chairman & Chief Executive Officer
Celebrating 25 years of Executive Search, Leadership Advisory, and Interim Executive Excellence
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