Idea in Brief

The Problem

Companies have traditionally prioritized leadership competencies over team competencies. In doing so they may have hampered both innovation and growth.

The Solution

To achieve breakthrough performance, teams should commit to a new social contract that emphasizes candor, collaboration, accountability, and continual improvement.

How to Achieve It

Team members can engage in collaborative problem solving; bulletproof upcoming initiatives; use candor breaks, red-flag replays, and safe words to facilitate constructive criticism; and hold open 360s in which they take responsibility for coaching and developing one another.

Eric Starkloff was on a mission to reinvent his company. As the incoming CEO of NI (formerly National Instruments), a Texas-based automated test and measurement engineering firm, he wanted to speed up decision-making and accelerate growth. He wanted pushback and alternative directions from his leadership team but was met with conflict avoidance. One team member recalls, “We were overly polite but not necessarily kind to one another. And people certainly didn’t speak their minds.”

A version of this article appeared in the September–October 2022 issue of Harvard Business Review.