How to fix a dysfunctional team and boost performance

Have you ever walked into a meeting and felt a tension so thick you could almost touch it? When a dysfunctional team begins to drift, the signs aren't always obvious shouting matches; often, it is the silence, the missed deadlines, and the subtle lack of trust that do the most damage to your business goals.

We have all seen it happen. A group of talented individuals comes together, but instead of a high-performing engine, you get a collection of silos. A dysfunctional team doesn't just make work unpleasant – it actively drains your productivity and stalls your growth. In today's workplace, understanding why teams misfire is the first step toward building a culture that actually works.

At Compono, we believe that work is personal. When a team isn't clicking, it is usually because we have stopped looking at the people involved and started looking only at the tasks. To fix the friction, we need to dig into the human elements that spreadsheets often miss. Let's explore how you can turn a dysfunctional team into a powerhouse of collaboration.

Identifying the signs of a dysfunctional team

Before you can fix a problem, you have to recognise it. A dysfunctional team often hides behind a mask of 'business as usual'. You might notice that communication has become purely transactional. People only talk when they absolutely have to, and even then, it is usually via email rather than a quick chat or a collaborative brainstorm.

Another red flag is the avoidance of accountability. In a healthy environment, team members own their mistakes and work together to find solutions. In a dysfunctional team, the focus shifts to finger-pointing. When things go wrong, the first instinct is to protect oneself rather than support the group. This behaviour creates a culture of fear that stifles innovation.

We also see a lack of healthy conflict. It might sound strange, but high-performing teams actually argue – they just do it well. They challenge each other's ideas because they trust each other. If your team meetings are met with total silence or passive agreement, it might be a sign that people don't feel safe enough to speak their minds. This 'artificial harmony' is a classic symptom of deeper issues.

The high cost of misalignment

The impact of a dysfunctional team goes far beyond hurt feelings. It has a real, measurable cost to your bottom line. When teams are misaligned, rework becomes common. Instructions are misunderstood, or worse, ignored, leading to wasted hours and frustrated customers. You aren't just losing time; you are losing the competitive advantage that comes from a unified workforce.

Employee turnover is perhaps the most visible cost. Talented people don't stay in toxic environments for long. If you find yourself constantly rehiring for the same department, it is time to look at the team dynamics. The 'cost of chaos' includes recruitment fees, onboarding time, and the loss of institutional knowledge every time someone walks out the door.

Furthermore, a dysfunctional team can damage your employer brand. In a world where candidates research company culture before even applying, word travels fast. If your work environment is known for silos and friction, you will struggle to attract the top-tier talent you need to succeed. Building a high-performing team starts with ensuring your people strategy and business goals are in total sync.

Using people science to bridge the gap

So, how do we move from dysfunction to harmony? It starts with understanding how your people naturally work best. Traditional management often treats employees like identical cogs in a machine, but we know that everyone has a unique 'work personality'. By mapping these natural preferences, you can begin to see why certain team members might be clashing.

For example, you might have a team full of 'Doers' who are great at ticking off tasks but lack an 'Auditor' to check for accuracy. Or perhaps you have too many 'Pioneers' chasing new ideas without a 'Coordinator' to organise the plan. This imbalance often leads to the frustration we label as dysfunction. It isn't that the people are 'bad'; it is that the team design is incomplete.

Compono helps you reveal these team insights by bottling the expertise of corporate psychologists into simple tools. By assessing the personalities within your teams, you can identify the strengths and potential blind spots that are holding you back. When you understand the 'why' behind the behaviour, you can coach your leaders to manage conflict and improve collaboration more effectively.

To truly understand how your business functions, you need to look at more than just individual traits. Compono Engage allows you to map your company culture and measure engagement, helping you spot where the work environment might be contributing to team friction.

Building trust through transparency and feedback

Trust is the foundation of any team that isn't dysfunctional. Without it, collaboration is impossible. Building trust requires a commitment to transparency. Leaders need to be open about company goals, challenges, and even their own mistakes. When you lead with vulnerability, you give your team permission to do the same.

Regular, honest feedback is also essential. This shouldn't just be a top-down process. High-performing teams have a culture of continuous feedback where everyone feels empowered to share their thoughts. This doesn't mean being mean; it means being clear. Clear is kind. When you address issues as they arise, they don't have the chance to fester into deep-seated dysfunction.

Consider implementing structured ways for your team to support each other. Our research has identified eight key work activities that define high-performing teams, including 'Helping' and 'Advising'. If these aren't happening naturally, you may need to proactively create opportunities for them. By prioritising the personal and social needs of your workers alongside their tasks, you create a more resilient and engaged workforce.

Reinventing your hiring process to prevent future friction

Sometimes, a dysfunctional team is the result of poor hiring choices. If you only hire for skills and qualifications, you might end up with a group of experts who simply cannot work together. We need to stop relying on resumes and gut feel. Resumes tell you what someone has done, but they don't tell you who they are or how they will impact your team.

The solution is to match people to your culture and team before they even walk through the door. By psychometrically assessing candidates at the start of the process, you can find the 'missing piece' your team needs. If your team is currently struggling with organisation, you should look for a candidate with a strong 'Coordinator' work personality to help bring structure to the chaos.

This is where intelligent technology makes a massive difference. Compono Hire uses predictive insights to match candidates to your unique company DNA. It automatically ranks applicants based on how well they fit your team and culture, ensuring you focus your time on the people most likely to succeed and stay for the long term.

Key takeaways for fixing team dysfunction

• Recognise the red flags: Watch for transactional communication, avoidance of accountability, and artificial harmony.
• Understand the cost: Remember that dysfunction leads to high turnover, wasted time, and a damaged employer brand.
• Map your team: Use people science to identify the work personalities and cultural dimensions within your group.
• Prioritise trust: Foster a culture of transparency and continuous, honest feedback at all levels.
• Hire for fit: Move beyond the resume and use predictive tools to ensure new hires complement your existing team.

Fixing a dysfunctional team isn't a one-time event; it is an ongoing process of rebalancing and understanding. When you take the time to align your people strategy with who your people actually are, you unlock a level of performance that others often overlook. You don't have to lead through the fog alone – with the right insights, you can start leading with clarity and conviction.

Where to from here?

• Explore: Compono Platform
• Talk to an expert: Book in a 15-minute chat to get a walkthrough of Compono.