Misperception at the Top: How Well is the Team Really Performing?

This will come as no surprise to anyone who has ever lead or participated on a team, either functional or project-based.

The focus of new research by Richard Rosen and Fred Adair of Heidrick & Struggles, and the USC’s Center for Effective Organization, indicates that a CEO is apt to see the world differently then his reports. Not just differently, but better. And significantly so.

In a global survey of senior executives from large and midsize firms across a number of industries, 52% of non-CEOs said that their teams were

doing poorly in critical areas such as thinking innovatively, cross-marketing, leading change, overseeing talent development, and building a company culture. Just 28% of chief executives reported problems in these areas. (See here for the HBS article.)

In fact, on a seven-point scale, CEO’s rated their teams at 5.39 while their executives rated team performance at 4.02. “Statistically, these ratings are worlds apart, and it seems that CEOs are the executives who need a reality check.”

While CEOs are under the microscope in this study, it’s clear that dysfunctional teams abound, and that leaders at every level face similar issues. The authors recommend three questions that might help to align perspectives and improve performance:

1. Does my team make decisions in meetings? When issues are discussed by the team but the CEO acts in private, the team can feel powerless and will sometimes give themselves low marks for performance. The irony, of course, is that the CEO is likely appreciative of good team input and would rarely make a decision without seeking the counsel of his team.

2. If we do make decisions in meetings, are they implemented shortly thereafter? Inaction indicates a lack of commitment, and can even be seen as resistance by dissenters.

3. Do meetings allow for lively conflict? Conflict indicates passion and engagement. The lack of passion can signal consensus to the CEO but conformity to everyone else.