High-performance teams: Not built the way you’d expect
High-performance teams aren't about big gestures—they're about small, intentional habits that help people feel connected, valued, and empowered.
In today’s world of rapid change and competition, creating high-performance teams isn’t just about hiring the smartest individuals and expecting magic to happen. The true success of a team lies in understanding the psychological nuances of human behavior and using these insights to design workplaces that cater to both emotional and functional needs.
Let's explore four key principles to help build, manage, and sustain high-performance teams that are productive, creative, and happy.
Principle 1: Humans are not (entirely) rational beings
Organizations often make the mistake of designing processes and structures in the belief that people act rationally. However, humans are anything but purely rational—we’re biased, social, and impulsive. Unlike the idealized notion of perfectly logical individuals who make thought-out decisions in their self-interest, real humans operate through shortcuts, emotions, and instincts.
Consider a workplace where systems are optimized solely for efficiency, assuming employees act logically. Such systems may increase productivity in the short term but will eventually falter because they ignore the real drivers of human behavior: the need for belonging, recognition, and purpose.
Effective team management means designing processes that work for humans, not abstract ideals. Teams flourish when they’re guided by the understanding that people have emotional needs that motivate their work beyond economic rewards.
Principle 2: Intrinsic motivation over extrinsic rewards
The concept of extrinsic rewards, such as bonuses, is often misunderstood in the workplace. We assume that large rewards will naturally lead to better performance. However, findings by some researchers, such as Edward Deci and Richard Ryan, show that extrinsic rewards can sometimes undermine intrinsic motivation, ultimately affecting the quality of work.
High-performance teams fulfill deeper psychological needs: recognition, belonging, and contribution. By connecting work to these emotional needs, you create a sense of purpose that can’t be replaced by mere financial incentives. True influence in a team isn’t about applying brute force; it’s about applying the subtle art of connecting with people's goals and motivations to create natural, self-driven productivity.
This approach emphasizes the importance of appreciation over monetary rewards:
- Recognize employees' efforts and show genuine appreciation.
- Focus on building a sense of purpose that goes beyond financial incentives.
- Make sure team members feel valued for their contributions.
Principle 3: Designing environments for focus and simplicity
High-performance teams aren't a result of hiring only the most motivated individuals. As behavioral designers, we recognize that ability trumps motivation, and environments play a crucial role in determining people’s ability to perform well.
The modern workplace is often a hub of distractions—endless notifications, meetings, and interruptions. High-performance teams need focus, and this can only be achieved through deliberate design choices:
- Change the default meeting length to 30 minutes.
- Work in focused sprints of 25 minutes.
- Schedule dedicated blocks for creative thinking and deep work.
Creating “forcing functions”, where it becomes harder to avoid desirable behaviors, is another powerful intervention:
- Block one hour of “me-time” on your calendar and label it as an important meeting to prevent interruptions.
- Remove unnecessary options and eliminate “choice paralysis” to simplify decision making.
Principle 4: Habits create culture
To build a high-performance culture, you must first focus on cultivating effective team habits. They’re the building blocks of organizational culture, determining how people work, communicate, and support one another.
Examples of effective team habits include:
- Team stand-ups: Help members check in and identify who needs help.
- Retrospectives: Reflect on both individual and team-level achievements and areas for improvement.
- Monthly experiments: Encourage teams to try new ideas that might bring them joy, fostering creativity and adaptability.
Good leadership is about helping people stick to these habits. A culture of consistent reflection, experimentation, and mutual support can significantly improve team morale and productivity.
Changing habits isn’t easy, primarily because habits become part of our identity. To change a habit is to attack a part of who we are. Thus, any behavioral change needs to address the environment:
- Design environments that support positive habits.
- Encourage routines that reinforce constructive behavior.
- Ensure everyone around you is aligned to make it easier to stick to new habits.
The Power of positive interventions
High-performance teams develop through intentional interventions—from designing for human needs to building habits that shape positive cultures. It’s about making small yet meaningful changes that empower teams to focus, appreciate one another, and grow together.
By letting go of outdated concepts like extrinsic motivators, rigid hierarchies, and one-size-fits-all processes, we create a culture where humans thrive. These four principles, when put into action, can be a great first step in transforming an average team into a high-performing one, fulfilling not just their tasks but also their deeper psychological desires.
Remember, the key isn’t to expect people to act rationally. Instead, we must understand human nature and design environments that support our innate desires for connection, recognition, and growth. In doing so, we build not only more productive teams but also happier and more fulfilled one's.