Why a “Functional” Team Doesn’t Equal a High-Performing Team

Pete Steinberg gestures while leading a discussion with two colleagues at a table in a professional setting.

In the realm of executive leadership, there’s a common misconception. A team that functions smoothly is often mistaken for a high-performing one. Functional teams meet their objectives and maintain operational stability. But truly high-performing teams transcend mere functionality to achieve exceptional results. Very few teams actually achieve this. So, what’s the difference? How can you move from a functional team to a high-performing one? 

The Difference Between Functional and High-Performing Teams

Functional teams are adept at managing tasks within their specific domains. They ensure that daily operations proceed without any major disruptions. However, high-performing teams operate on a different plane. They utilize the collective strengths of their members. As a result, they foster a cohesive environment where collaboration and innovation thrive. 

This distinction is crucial, especially at the executive level. The focus must shift from individual departmental interests to the organization's overarching goals and success. 

Traditionally, the way you get on an executive team is by being exceptional at your function. For example, the Vice President of Finance becomes the Chief Financial Officer. Or, the Vice President of Marketing becomes the Chief Marking Officer. But once in the C-Suite, you need to actually think less about your functional area of the business, and more about being an enterprise-wide leader. You need to think bigger and work with the rest of the C-Suite to get the entire organization—not just your department—to achieve its goals.

Transitioning an executive team from functional efficiency to elite-level performance is extremely challenging. It requires leaders to move from just excelling in their specific area to making an organization-wide impact to succeed. 

4 Key Elements of High-Performing Teams

I’ve learned a lot about high-performance in 22 years of coaching Olympic- and World Cup-level women’s rugby. Achieving it requires focus and intention. So, let's draw parallels from elite sports. Consider these four pillars that define high-performing executive teams: 

  1. Strategy. The team must have a unified understanding of the organization's strategic direction. Each team member needs to comprehend how their role contributes to these strategic objectives. This creates alignment and a shared purpose.

  2. Structure. Placing the right individuals in the right roles that match their strengths and expertise is essential. This strategic placement helps the team operate efficiently and adapt to challenges effectively.

  3. Systems & Processes. Efficient meeting protocols, clear conflict resolution practices, and decisive decision-making processes are vital. These systems provide the framework for the team to manage disagreements and operate smoothly.

  4. Relationships. While interpersonal relationships within a team are important, this cannot be the only element present. Strong relationships must support and enhance the other pillars. Trust and mutual respect among team members facilitate open communication and collaboration. This culture allows each team member and the team as a whole to achieve their full potential. It drives the team toward high performance.

While a functional team ensures stability, a high-performing team propels the business to new heights. With the four key elements of high-performing teams, you can jump from functional to high-performing. You can maximize your team’s potential and drive the organization toward sustained excellence. 


Pete Steinberg is an elite rugby coach, leadership consultant, and bestselling author. He can help you and your organization overcome challenges and achieve unparalleled success. Pete’s first book, Leadership Shock, is now available for purchase at all major retailers. You can connect with Pete on LinkedIn and at PeteSteinberg.com.

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