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The Business Impact of Poor Performing and Unhealthy Teams
June 5th, 2014 by Traction Teambuilding | Category: Teambuilding Talk

Unhealthy and Poor Performing Teams

At the heart of an organisation’s success is a great leader who knows how to steer, motivate and push the team to the right direction. Without a good team to direct, however, the leader, no matter how great, is stuck. Leadership and teamwork, therefore, are two aspects of business that need to work hand in hand in order for the enterprise to flourish. As a leader, it is your job to create an environment where teamwork sets the tune. Failing to focus on this essential element of business success will result to a poor and an unhealthy team that has significant negative impacts on your organisation.

Poor Communication

One of the most outright effects of an unhealthy team is poor communication which in turn results to strained relationships and decreased productivity. Because team members are never compelled to work together as one unit, the business suffers adversely. Goals are seldom met and team performance is always subpar. Poor communication, as a result of unhealthy teamwork or lack thereof, leads to a multitude of issue for organisation. Take for instance absenteeism. Statistics show that ineffective communication within the team may cause an additional 18% variation in employee absences. Employee turnover is also affected with companies reporting over 50% above average turnover due to poor communication.

Poor Efficiency

Another study also looks at efficiency due to an unhealthy teamwork and poor communication. It is reported that two in three projects lead to failure due to the aforementioned causes. With respect to IT projects, for example, 28% of failures are believed to be caused by ineffective communication. Making it worse is the effect on management. When an organisation is ready to employ change, poor communication stands in the way as indicated in the number of change programs that fail. More than half never meet their objectives because employees are either resistant to change or the concept was not fully explained.

Poor Employee Morale

Organisations with unhealthy teamwork also breed a group of employees with low morale. Without teamwork to unite a diverse group of people, the business rarely achieves its goals. Because employees don’t feel good or important, productivity suffers massively and the working environment is just never conducive for creativity to be unleashed. Without collaborative and effective teamwork that boosts morale, inspires and motivates employees, organisations will not experience high performance and output from their teams. Instead of the organisation focusing on the more important aspects of the operations, they will spend their time ‘putting out fires’ dealing with conflict, absenteeism, project failure and a poor performing environment.

Poor Business Productivity

Probably the most costly and adverse impact that an unhealthy teamwork causes is an overall poor business productivity. When an organisation fails to produce and meet expectations, it can only lead to huge losses in terms of time, money and other related resources. And as you already know, no business or organisation can continue to exist with no profitability to look forward to.

Ultimately organizations that experience poor teamwork and unhealthy teams will be left behind as employees will never be inspired to perform at their full potential.

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