How to build a high-performing team – a small business guide

Ensuring high performance from employees will improve the success of any business. High performing teams are 20 per cent more productive and profitable, and lead to 10 per cent higher customer satisfaction, according to research from Aeon.

So it’s easy to see why building the right team – one with committed, engaged, and happy members – is vitally important for SMEs. 

Read on to find out how small business owners can lead and inspire their staff, creating a team that truly works together – which in turn will help your business thrive. 

What is a high performing team?

High performing teams work together to achieve a shared result – in this case, continued customer satisfaction, ease of operations, and the growth of your business. These teams are able to consistently meet business targets because their skills complement one another. 

Your team might be made up of people with the same skills and experience, or a group of people with different skills who round each other out.

How to create a high performing team

Of course, the exact type of team you’ll need will depend on the trade or services you’re offering. But if you’re looking to build a new team or boost the performance of your existing one to see more business growth, you can use our guide to help you get started.

Start with the recruitment process

Whether you’re setting up a new business and hiring your first staff members or bringing some new employees on board to help round out your team, it’s important to develop your recruitment process.

By clearly defining your job roles and organisational structure, you’re setting your employees (and your business) up for success from the start.

Small businesses might have a less traditional recruitment process, but this can still help you build the right team, said Larnia Ryde, Founder of sustainable clothing company Ryde Store, based in Newquay. 

“Since launching Ryde, I’ve travelled the country doing events, pop-ups, and networking – often in places that align with our brand. It’s in these authentic environments that I naturally find the right people for my team,” she said.

“We do have a recruitment process, but I have actually had the best results when people have joined the team organically.

“My onboarding process is a bit untraditional but meaningful – whether it’s discussing ideas over a beach clean-up or meeting on a hike, I believe in bringing people on board who already live the values we stand for. I met our marketing lead doing an Earth Day litter pick!”

Embody strong leadership and communicate clear responsibilities 

One way to make sure everyone is hitting their targets and helping to grow the business is by identifying the company’s vision and how individual roles fit into this. 

“I focus on Ryde’s journey – how it began and the story so far – when onboarding people and setting goals,” said Larnia. This narrative helps in ensuring that every team member feels valued and isn’t just doing a job but is part of the vision.”

Having a clear vision statement and mission statement can help you make strategic decisions for your business, and then identify reasonable targets for your employees to reach.

This can then trickle down to each person’s individual roles and responsibilities. These clear distinctions can help organise workflow to make sure your team’s valuable time is well spent.

“As a start-up, I’ve worn every hat and worked in every position, so I understand first-hand what the business needs. That’s important to building a team,” said Larnia. 

“This allows me to recognise potential in people who may not fit traditional roles but have the drive to understand and contribute to our mission. It also gives me an idea of how heavy the workload is, and how to manage time, my expectations and keep everyone happy.” 

Give clear and actionable feedback 

One way to ensure your team continues to perform highly is by giving good feedback. Giving feedback is important as it helps your team know what they’re doing well – and which areas they may need to improve on.

When giving feedback, it’s important to remain supportive and objective. If giving negative feedback, offer actionable suggestions on how to improve. And giving clear examples of work done well can be a great way to give positive feedback.

And while not compulsory, offering incentives is also a good way to raise spirits, keep your staff motivated, and help your team feel appreciated.

Characteristics of high performing teams 

While every high performance team will look different, depending on industry, company size, and customer needs, there are quite a few common characteristics. 

Strong leadership 

Strong leadership will guide employees towards a shared objective. Business owners can find good managers to help them set clear expectations and goals for each member and the team as a whole, and link this to the company’s vision and long-term plans. 

Great communication 

Teams that consistently perform well have great communication with one another as well as customers. As a business owner or manager, you can set up appropriate communication channels and actively listen to your team’s feedback. 

“I’ve tried to foster a culture of openness and respect, where everyone’s contributions are valued,” said Larnia. 

Mutual respect, good decision making, and problem solving

They say ‘there’s no I in team’, and high-performing teams know this better than most, as they’re respectful of one another’s opinions and expertise. 

High-performing team members also should be skilled and knowledgeable enough in their area to help drive effective decision-making in the business. They also don’t just see problem solving as a necessary part of the job, they actively enjoy it and are constantly looking for ways to innovate.

“There is no hierarchy, boardrooms or dress code at Ryde, but I know this isn’t always possible for every business,” said Larnia. 

“We also encourage creativity and let the team take ownership of their roles.”

Diversity and inclusion

Don’t overlook the importance of diversity when building your team, as different perspectives and experiences can help create a new way of working. In fact, McKinsey research from 2020 links diversity directly to commercial success. 

“I’ve tried to foster a culture of openness and respect, where everyone’s contributions are valued. This approach has enabled us to build a team that is not just adaptable and skilled, but invested in our mission,” Larnia explained.

Good working environment and flexibility 

This looks different to everyone, so make sure to take flexible working into account – you may see some positive changes in your business outputs. 

Focusing on wellbeing has been proven to help employees work better as a team and improve employee retention. 

“It’s important to recognise that a team is a collective of individuals, each with their own lives, worries, and stresses outside of work,” said Larnia. 

“While boundaries are necessary, I’ve found that giving people the freedom and flexibility to attend appointments, do the school run, or handle personal matters often leads to better outcomes.”

High-performing team model

Teams come in all shapes and sizes, but there are a few tried and tested models you can base your team structure on. Some examples include:

• GRPI model: standing for goals, roles, procedures, and interpersonal relationships, this team model creates visibility and accountability for each team member’s responsibilities
• T7 model: this model believes the seven things which influence a team’s performance are thrust, trust, talent, teaming skills, task skills, team leadership, and team support
• Google model: one of the most successful companies in the world, Google believes that psychological safety, dependability, structure and clarity, meaningful work, and impact of work are what help to create high-performing teams

How to develop a high-performing team

Even if you have a high-performing team already, there’s always room to grow. Having regular check-ins with your team can help identify areas to develop as a business. You can recognise learning opportunities – or maybe your employee has a few ideas of their own – and ways to streamline processes.

Some ideas to help develop your team’s skills include:

• courses
• e-learning
• mentoring (both internally and externally)
• personalised development plans
• creating accountability
• understanding individual working styles

High-performing team quotes

If you’re looking for some motivation for your team, check out some of these quotes to inspire high-performing teams:

1. “To win in the marketplace, you must first win in the workplace” – Doug Conant, businessman and author
2. “No matter how brilliant your mind or strategy, if you’re playing a solo game, you’ll always lose out to a team” – Reid Hoffman, co-founder of LinkedIn
3. “Great things in business are never done by one person; they’re done by a team of people” – Steve Jobs, co-founder of Apple
4. “Find a group of people who challenge and inspire you, spend a lot of time with them, and it will change your life” – Amy Poehler, actress, comedian, writer, producer, and director
5. “Success is best when it’s shared”- Howard Schultz, businessman and author

How have you helped to build a high-performing team in your business? Let us know in the comments below.

More guides for managing employees in a small business

• The Bradford Factor – how to keep your business moving
• How a business mentor can help you grow your business
• What is agile and how can you use it in your business?
• What is business insurance?

Photo: Jacob Lund/stock.adobe.com