When CEOs and executives discuss “competitive advantage”, technology, market share, financial strategy, and/or productive innovation are almost always part of the discussion. Without a doubt, these are crucial. What too many leaders fail to recognize is a hidden lever that could be the most long-lasting source of competitive advantage your company will ever have.
Team Building is that Lever
Not the clichéd trust fall or ropes course (though those might have a place). I’m referring to deliberate, regular, and significant team building that strengthens collaboration, increases trust, and gives individuals the tools they need to perform at their highest level. Team building is not a “nice to have” for executives. It is an unrealized competitive advantage waiting to be utilized.
The Myth: It’s Easy to Build a Team
All too frequently, team building is dismissed as an optional activity—an HR campaign or a fun day out—and placed under the “soft skills” umbrella. Leaders who dismiss it as nonsense, however, are failing to see the broader picture. In actuality, one of the most challenging performance levers is team building.
Think about this: Businesses with highly engaged teams are 21% more profitable than those with disengaged teams, according to Gallup’s repeated findings. Benefits, increased income, or flexible work hours don’t guarantee engagement. It occurs when groups have mutual trust, communicate honestly, and strive toward a common goal. That is the result of actual team building.
A CEO who invests in team building is strengthening the foundation that propels innovation, drives revenue, and enhances customer satisfaction, while also raising morale.
Examples of the Team Building Benefit in the Real World
Let’s examine some instances where deliberate team building alters the rules of the game:
- Example 1: The Reversal of the Tech Firm
Structured team development was introduced by a mid-sized software company that was experiencing high employee turnover. The CEO made an investment in fostering trust and cooperation within the current team rather than just hiring more engineers. Because teams were motivated and in sync, retention increased by 30% over the course of a year, which helped to shorten product launch cycles.
- Example 2: The CEO of a manufacturing company who witnessed a surge in productivity
A manufacturing CEO observed conflict between sales and operations. She led cross-functional team-building exercises where participants learned about one another’s priorities and pressures, rather than allowing silos to fester. The outcome? There will be significantly less expensive rework, fewer missed deadlines, and less finger-pointing.
- Example 3: The Experience in the BOAR Room
CEOs frequently enter our own BOAR Room mastermind groups believing that strategy or execution is their biggest obstacle. The breakthrough, however, consistently occurs when they surround themselves with more capable teams. A CEO recently reported that he observed cascading benefits after purposefully developing his executive team using tools from BOAR Room discussions with his peers. These included increased accountability, shorter and more productive meetings, and—above all—his leaders taking the initiative rather than stifling decision-making through him.
These are not unusual occurrences. They serve as evidence that teamwork improves performance.
Why CEOs and Executives Must Take the Lead
The harsh reality is that team building cannot be entirely outsourced. Indeed, HR professionals, facilitators, and consultants can provide valuable assistance. However, the top sets the tone. The organization emulates the executive’s openness, vulnerability, and commitment to team building.
In The Five Dysfunctions of a Team, Patrick Lencioni makes it abundantly evident that no team can perform at its peak without trust. However, trust is not something that develops on its own. Leaders must lean in, and this is especially important for executives.
You are the cultural architect in your capacity. Your leaders and staff will agree that you should view team building as a strategic initiative. They will ignore it if you do.
The Undiscovered Advantage: Using Culture as a Strategy
Products, technology, and strategies can all be reverse-engineered in the current business environment. However, it is almost impossible to replicate culture—a cohesive, resilient, and trusting team culture.
Team building thus becomes the untapped advantage. A cohesive, dedicated, high-functioning team is difficult for competitors to replicate, even if they can outspend you or undercut you on price.
When a team has mutual trust, they will innovate, adapt, and perform more consistently than when they don’t. This becomes the most dependable moat around your company in a volatile world.
The Role of BOAR
At BOAR, we’ve witnessed this reality unfold across leadership levels and industries. Leadership is a team sport, whether it is taught in our BOAR Room mastermind groups for CEOs and executives or in the NextGen Evolution program for aspiring leaders.
- CEOs encourage and support each other to invest in their teams in the BOAR Room because they understand that developing leaders is just as important as making decisions. These peer-to-peer discussions frequently reveal blind spots and introduce fresh methods for team development.
- Emerging leaders in NextGen Evolution gain firsthand experience in team-building techniques like communication, accountability, conflict resolution, and trust-building. By ensuring that the next generation of leaders understands how to form cohesive, strong teams, companies investing in this program are doing more than just training individuals; they are also future-proofing their organizations.
We’ve seen executives leave with practical frameworks and return to their organizations to observe instant benefits, such as improved meetings, increased teamwork, and quantifiable increases in output. That is how deliberate team building affects the organization.
How CEOs Can Get Started Right Now
Here are some doable actions to take if you’re prepared to use team building as a competitive advantage:
- Give it top priority as a leader: Take team building as seriously as you would strategic reviews or financial planning. Set aside money for it, schedule it, and track the results.
- Make investments in growth rather than merely instruction: A single workshop won’t transform your team. Programs that are sustained, such as BOAR’s NextGen Evolution, bring about long-lasting change.
- The vulnerability of the model: As an executive, demonstrate that it’s acceptable to seek input, own up to mistakes, and continue to grow. More effectively than any policy or memo, this fosters trust.
- Employ peer accountability: Participate in CEO forums or mastermind groups, such as the BOAR Room, to broaden your horizons and hold yourself accountable for assembling the team your business requires.
- Honor advancements: Honor and commend not only individual accomplishments but also teamwork and behaviors that foster trust.
Few Are Making Use of This Competitive Advantage
Every CEO seeks a competitive advantage. In reality, the edge is already present in your company, waiting for you to activate it. A well-developed, genuinely cohesive team has unparalleled power. It has the power to save failing companies, elevate successful ones to the top, and maintain success long after rivals have fallen behind.
The market, economy, and competition are beyond your control as a CEO. However, you have the power to create, nurture, and unleash your team’s potential. That might be your most significant unrealized competitive advantage.
