6 Factors of High-Performance Cultures in 2025: Exclusive Insights from our Leadership Summit

6 Factors of High-Performance Cultures in 2025: Exclusive Insights from our Leadership Summit

Every leader wants to build a high-performance team, but it’s one thing to say you want a high-performance team culture and another to actually create one. 

Some people think if they can just get their team to “click,” they’ll be able to improve productivity and engagement. Others think team success is solely based on “heroic team leaders” who take on more responsibilities than other team members and save the day. 

While effective leadership is the crux of a positive team culture, the best leaders empower others to be the best they can be. 

“The myth of team chemistry—that teams either click or don’t—and the concept of the ‘heroic team leader’ are just not realities in the companies that you work in.” -Michael McCarroll

As we enter 2025, leaders are realizing that factors like “engagement,” while vitally important, aren’t the only measures of a successful team culture. 

Today’s leaders need to focus on creating a culture of accountability, learning, psychological safety, trust, and more. 

In today’s exclusive Leadership Lab, learn some of the top insights that came out of our recent summit, and what this means for team success in 2025. 

A Brief Overview of Our Leadership Summit

On December 5th, we invited many of today’s top leaders and CHROs to an event that focused on building high-performing team cultures. 

Over the course of six sessions, several prominent thought leaders and academics shared insights on a wide range of topics impacting today’s business world. 

Our esteemed session hosts included: 

Over the course of the day, these incredible leaders shared several insights impacting today’s leaders. 

Below is a deep dive into six key factors that—according to these experts—are vital for leaders to prioritize in the new year. 

1. Team Psychological Safety

The first session, led by Stanford’s Anja Nabergoj, focused on the importance of psychological safety at a team level. 

Psychological safety is at the root of most high-performing teams. It results in teams with greater willingness to: 

  • Disagree openly
  • Speak with candor
  • Voice novel ideas 
  • Review and critique their own work
  • Take adequate corrective action

The starting point for psychological safety is a form of trust that facilitates open, honest communication. Teams with this trust will share more information and exhibit a differentiated give-and-take balance. 

“Trust and psychological safety don’t just happen—they’re built intentionally through shared experiences and vulnerability.” - Anja Nabergoj 

In her session, Anja led several exercises designed to facilitate rapid bonding, trust, empathy, active listening, and more. 

These included:

  • One-minute name stories: Sharing personal anecdotes about their names.
  • Portrait drawing: Creating quick visual representations of a partner.
  • "All the things I love": Listing things they enjoy, prompting shared interests.
  • Gift design: Sketching a thoughtful gift for a partner based on their shared interests.
  • Proud moment sharing: Relating a personal story and then retelling someone else's story in the first person.

These exercises demonstrate that cultivating psychological safety and connection can be simple, but requires intentionality and vulnerability. 

2. Cross-Functional Collaboration

It’s no secret that cross-functional collaboration can be difficult. Harvard Business Review reports that many cross-functional teams struggle with “collaboration drag”—an excessive number of meetings, unclear decision-making authority, etc. This, in turn, leads to a 37% decrease in the likelihood that teams will hit their revenue and profit goals.

To combat this—and capitalize on the innovation benefits effective cross-functional collaboration provides—leaders need to optimize their cross-functional collaboration.

In this session, our CEO Michael McCarroll, and Harvard’s Amy Edmondson discussed some of the key obstacles to effective cross-functional collaboration, including: 

  • Lack of common ground and increasing specialization
  • Decoupled workflows
  • Fragmented organizational identity (strong team identification over company identity)
  • Divergent goals and incentives
  • Tension between autonomy and standardization

There are two ways leaders can respond. The first is by accepting the trade-off between Intra-team effectiveness and Inter-team effectiveness. 

The second is to actively work to “shift the curve” by enhancing cross-functional collaboration. 

There are three ways to accomplish this: 

  • Ensure your team has both bridges and adhesives: Bridges are those who act as go-betweens, facilitating communication and collaboration between functions. Adhesives are team members who build mutual understanding and lasting relationships across functions. 
  • Ask the right questions: Encourage your team members to ask questions of one another that demonstrate genuine interest and cultivate empathy. 
  • Seeing the world through others’ views: Structured team experiences and training can help your team members learn how to empathize with others and see things from their perspective.

Cultivating empathy and perspective-taking is an excellent way to enhance intra-team effectiveness. 

“Consistently, it’s this ability for teams to see things from another perspective that leads to success.” - Michael McCarroll 

Leaders should be deliberate about investing in team experiences and training that promote empathy, open communication, and psychological safety. 

3. Disagreement and Innovation

Increasingly, team leaders are becoming aware of the importance of disagreement to innovation. 

However, there’s still a widely held implicit belief that disagreements shouldn’t be voiced—or are even dangerous to voice. 

Unspoken disagreement is one of the most significant barriers to innovation. To address this challenge, Harvard’s Deanna Parrish and Elaine Lin Hering discussed strategies for surfacing dissent. 

“Research… shows us that there are two elements that are critical to greater innovation on teams. The first is surfacing minority dissent, and the second is participation in decision-making.” - Deanna Parrish 

There were two primary tools discussed in this session that can help address this challenge: 

1. Leveraging Process

Consider embedding standardized questions into team processes to surface differences, encourage minority dissent, and depersonalize conflict—thereby reducing conflict’s strain on relationships. 

“The more that we can rely on process, the less it puts the strain on the relationship.” - Elaine Lin Hering

Examples of questions include pros/cons, what works/what doesn’t work, and what resonates/what’s concerning. 

2. Encouraging Participation

It’s important to ensure that everyone is assigned one of the following roles: 

  • Decision-maker: Makes the final call and is accountable for the outcome.
  • Consulted: Provides input and expertise.
  • Informed: Kept in the loop about the decision.

Make sure that everyone understands their role in the decision-making process and that there’s alignment among stakeholders. 

“A lot of challenge can come from a misalignment in terms of who we believe is a decision-maker or is to be consulted and how someone sees themselves, their authority, the expertise they have to offer. Making explicit those implicit relationships is extraordinarily important—not only to setting expectations for when and how dissent can be voiced but also preventing future feelings of extraction or burnout.” - Deanna Parrish

Once again, psychological safety and candor play a key role in ensuring that team members feel comfortable voicing their concerns and opinions. 

4. Prioritization and Simplification

In Bob Sutton’s book, The Friction Project, he mentions that one of the most common sources of friction in an organization is “addition sickness.”

Addition sickness as defined by Bob Sutton is “The Penchant to solve problems by adding, rather than subtracting, complexity.” 

In other words, when problem-solving, it’s natural for people to lean towards adding complexity rather than finding ways to subtract it. 

“The natural tendency if people were left unchecked was to add more and more.” - Bob Sutton

Bob mentioned three key drivers of this “addition sickness”: 

  • Evolutionary bias towards accumulation.
  • Rewards for adding initiatives, staff, and complexity—or even punishments when employees subtract or don’t add in the first place. 
  • A tendency to value our own additions while overlooking others’. 

According to Bob, great organizational leaders make subtraction a habit. 

“When organizations become great organizations, they do this. It’s a routine part of the culture.” - Bob Sutton

While some level of complexity is inherent in challenging work, leaders should model subtraction and empower their teams to identify and eliminate unnecessary friction.

5. Accountability and Outcome Ownership

In past Leadership Lab events, we’ve discussed the importance of framing accountability as ownership rather than punishment

This session, led by Colonel Robert “Cujo” Teschner, focused on the importance of accountability in the workplace. 

“We recognize that there's a deficiency [of accountability]. We also know that the deficiency is preventing us from becoming the best that we can possibly be.” - Cujo

Despite the fact that organizational leaders want to improve accountability, there’s often a lack of a shared vision for how this should look in practice. 

The lack of a shared definition of accountability often hinders teamwork and performance. Traditional "postmortems" often focus on blame and penalties, creating a culture of fear and avoidance.

According to Cujo, the best definition of accountability is “taking absolute ownership of the outcomes we achieve.” To cultivate this form of accountability, organizations should run regular debriefs. 

The debrief is a "constructive evaluation of decision and action quality" aimed at learning and improvement. The trigger for a debrief is mission completion, not failure.

“We were one question away from success today... If we can ask that kind of question next time, imagine what we're going to do.” - Cujo

According to Cujo, these are the key components of a successful team debrief: 

  • Structure: A clear framework for guiding the discussion.
  • Psychological Safety: An environment where people feel comfortable acknowledging mistakes and asking questions.
  • Focus on Learning: Emphasis on understanding root causes and identifying solutions for future improvement.
  • Multiple Perspectives: Gathering input from everyone involved to gain a comprehensive understanding of the situation.
  • Forward-Looking: Using the debrief to build confidence and improve future performance.

Research shows that effective, rigorous debriefs can improve organizational performance by as much as 25%.

6. Moving Beyond “Engagement” to Measure High Performance

The final session was led by Amy Edmondson and MIchael McCarroll. 

In this session, they discussed the fact that engagement, while an important measure of a high-performance culture, often overemphasizes satisfaction and doesn’t fully capture team performance. 

“Engagement is not the same thing as output.” - Michael McCarroll

While engagement should certainly be measured and prioritized, organizations should also measure the following aspects: 

Learning Speed and Adaptability

How quickly are team members able to learn from successes and failures and adapt accordingly? 

The specific metrics used to measure this can vary based on the function. For example, marketing teams can use A/B testing velocity—the speed and frequency of testing new ideas and implementing successful variations. 

Sales teams can measure the speed at which deals progress through the pipeline or how quickly new representatives become productive. 

While these metrics should be tailored to the nature of the work, they’re nonetheless incredibly important to high-performance teams. 

“We have to be ever mindful that all metrics are flawed and make it discussable, but be absolutely committed to holding ourselves accountable for excellence and continuous learning.” - Amy Edmondson

Intelligent Failure

Some of the most impactful research Amy Edmondson has done is her groundbreaking work on intelligent failure

According to Amy’s research, there are three different types of failure: 

  • Preventable failures: A result of carelessness or a failure to do due diligence. These failures should be avoided. 
  • Complex failures: Multi-causal, but potentially preventable with best practices. 
  • Intelligent failures: Occur when taking calculated risks in new territory. 

“[Intelligent failures] are the kinds of failures that happen when we try new things in new territory and when we have very good reason to believe it might work.” - Amy Edmondson

In risk-averse cultures, failure is often perceived as a negative rather than a positive. In high-performance cultures, employees are encouraged to take “smart risks,” and intelligent failure is encouraged rather than punished. 

“We have to learn to love [intelligent failures] because the... speed and ambition of intelligent failure production... is a critical determinant of innovation.”  - Amy Edmondson

Next Steps and Practical Insights

So what does this mean for your team?

One of the most actionable insights that came out of this event is that team experiences can contribute to creating a high-performance culture. 

Intentional, research-backed experiences that allow your team to connect and learn together contribute to enhancing psychological safety, trust, and collaboration. 

At Teamraderie, our team experiences are designed with creating a high-performance team in mind. These live, virtual workshops are led by experts—such as Anja Nabergoj, Cujo, and Deanna Parrish—and are backed by extensive research.

Click here to learn more about how our experiences can ignite your team’s high-performance culture.

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