23. Fixing a Dysfunctional Team
Diagnose and resolve hidden issues affecting team dynamics.
Imagine this - Your business is growing, your team is filled with skilled individuals, and yet… something feels off. Deadlines are being met, no major conflicts are occurring, but the workplace lacks energy. You sense that collaboration isn’t quite clicking, engagement feels lower than it should, and productivity could be better.
You can’t point to a specific issue—no single person is underperforming, no clear conflicts exist—but something about the team just doesn’t work as well as it should.
This scenario is common among SME owners. HR psychology tells us that high-performing teams aren’t just about individual talent; they require balance, diversity of thought, and shared purpose. If your team is underwhelming despite having capable individuals, there’s likely a deeper misalignment.
The challenge? You can’t fix what you don’t understand. If left unresolved, the wrong team mix can lead to stagnation, disengagement, and missed growth opportunities.
The Solution – Diagnosing and Optimising Your Team’s Composition
Finding what’s missing in a team requires a structured approach that blends self-reflection, team analysis, and strategic adjustments. Here’s how SME owners can pinpoint the issue and create a team that thrives.
1. Identify the Symptoms of a Misaligned Team
Before diagnosing the exact problem, look for common indicators of team imbalance -
Lack of innovation – The team does what’s required but rarely goes beyond expectations.
Communication breakdowns – Conversations feel transactional rather than dynamic.
Energy mismatches – Some team members dominate while others withdraw.
Resistance to change – New ideas are met with hesitation rather than enthusiasm.
Uneven work distribution – Some employees are overloaded while others coast.
If you notice multiple signs, your team might be lacking the right balance of skills, personalities, or work styles.
2. Map Out Your Team’s Strengths and Weaknesses
A great team is a blend of complementary strengths, not just a group of skilled individuals. Use HR assessment tools like -
The Belbin Team Roles Model – Identifies natural working styles (e.g., innovators, coordinators, implementers).
Personality frameworks (MBTI, DISC, Big Five) – Understands how different personalities interact.
Skills audits – Lists each team member’s strengths, weaknesses, and untapped potential.
By mapping out who brings what to the table, you can identify gaps in skill sets, leadership styles, or workplace dynamics.
3. Look for Hidden Imbalances in Your Team Mix
HR research highlights three common team imbalances that affect performance -
A. Too Many “Thinkers,” Not Enough “Doers”
Problem - The team generates ideas but struggles to execute.
Solution - Introduce action-oriented team members who turn ideas into results.
B. Too Many “Leaders,” Not Enough Collaborators
Problem - The team is filled with dominant personalities, leading to power struggles or decision paralysis.
Solution - Introduce strong communicators and team players who balance leadership dynamics.
C. Too Much Similarity, Not Enough Diversity of Thought
Problem - The team members share similar backgrounds, thinking styles, or work habits, leading to a lack of innovation and challenge.
Solution - Hire diverse problem-solvers who approach challenges differently.
4. Reassess Your Hiring and Team Development Strategy
If your team mix is off, your hiring and internal development processes may need adjustments.
Did past hires focus too much on technical skills rather than personality fit?
Are there untapped potential leaders who could shift team dynamics?
Does your team culture reward conformity over diversity of thought?
Shifting focus toward cultural fit, cognitive diversity, and adaptability ensures a more balanced team long-term.
5. Make Targeted Adjustments Without Overhauling the Team
Once you understand where the gaps are, the next step is adjusting roles, responsibilities, and hiring strategies.
Ways to rebalance your team -
Reassign tasks – Play to strengths by shifting responsibilities to those best suited.
Adjust leadership structures – If the team lacks direction, appoint clearer decision-makers.
Encourage role flexibility – Cross-training can help underutilised employees contribute more.
Strategic hiring – If a gap remains, hire to fill the missing element, not just for more of the same.
HR research shows that small shifts in team roles often have a greater impact than complete personnel changes.
Reflective Scenario – What Would You Do?
You have a technically skilled team, but projects feel stagnant—meetings lack energy, and no one is stepping up with new ideas. You sense that something is off, but you can’t pinpoint what.
Using the strategies above, you might -
Assess your team’s composition using strengths mapping.
Identify if you have an imbalance of leadership styles, thinkers, or executors.
Shift responsibilities, encourage collaboration, or introduce fresh perspectives through hiring.
By diagnosing the issue instead of forcing arbitrary changes, you build a dynamic, high-performing team.
Golden Nugget - "A strong team isn’t about having the best people—it’s about having the right mix of people."
By assessing team dynamics, identifying imbalances, and making strategic adjustments, SME leaders can create a team that not only functions but thrives.