Despite billions spent annually on leadership development, why do organisations still struggle with team dysfunction? While leadership pipelines are groomed and individual talents polished, many of today’s most innovative companies succeed by shifting focus from individuals to teams. As we navigate an increasingly complex and hyper connected world, the future of work will revolve around the power of teams. Yet, we often neglect the most crucial driver of organisational success: the team.

Gartner’s recent annual report on the top 5 HR Trends and Priorities for 2025 highlights an important insight: leaders who engage in peer connection-based learning experiences are 18% more likely to become enterprise leaders. These leaders not only inspire their teams but also make meaningful contributions to the broader organisation.

Building on this insight, in my own survey, teams across industries cited communication, collaboration, innovation and engagement as their greatest challenges. These struggles reveal systemic gaps in how we develop our teams. The greatest innovations and organisational shifts are rarely the product of a single person. Instead, they result from teams that know how to collaborate, adapt and push boundaries.

The question HR professionals must ask is: Are we doing enough to develop teams, or are we stuck in the mindset that leadership is a solo endeavour?

Why Team Development Needs to Be on the HR Agenda

The traditional focus on developing star leaders is outdated. What good is a high-performing individual leader who cannot drive collective team success? If we want to future proof our organisations, HR needs to place equal, if not greater, emphasis on team development.

Research from Google’s Project Aristotle highlights that psychological safety, where team members feel safe to take risks and make mistakes, is the most critical driver of team success. Yet many organisations still focus on individual performance metrics. This focus on individual achievements can create environments where team members hesitate to take risks or collaborate openly, undermining trust and communication. My own findings support this: teams often struggle with the basics, such as open dialogue and mutual support, which are crucial for innovation and agility.

According to Gartner, 70% of HR leaders believe current managers lack the skills to effectively develop mid-level leaders. Despite significant updates to leadership programs, only 36% of HR leaders feel these programs adequately prepare leaders for future challenges. This gap highlights an urgent need to shift focus toward team-oriented development strategies that prioritise interconnected leadership over isolated individual progress.

HR has a pivotal role in shifting this dynamic, as cohesive, high-performing teams should no longer be viewed as a ‘nice-to-have’ but a business imperative.

In fact, Deloitte research shows that organisations with a team-based model are 1.7 times more likely to innovate and 1.8 times more likely to outperform financially. Prioritising teams over individuals is how sustainable, long-term impact is created.

The Cost of Ignoring Team Development

HR leaders can no longer afford to overlook the power of team dynamics. Failing to develop teams does not just result in missed opportunities for innovation, it can cause long-term organisational damage. The cost of underperforming teams is steep: low engagement, stifled creativity and poor collaboration contribute to a lack of agility. And in today’s rapidly evolving business landscape, a lack of agility can be fatal.

When teams fail, it is rarely because they lack talent. It is often because they have not been equipped to succeed collectively. Gallup’s State of the Global Workplace 2024 report found that highly engaged teams are 21% more productive, yet only 15% of employees globally report being engaged at work.

This stark contrast highlights the urgent need for HR professionals to recognise that leadership coaching for individuals is not enough.

Gartner’s research further emphasises this point, showing that leaders who build enduring peer connections through shared learning experiences are better equipped to tackle complex challenges. These leaders become more effective contributors across the organisation, driving both team and cross-functional success.

Organisations need a full-scale transformation that places teams at the centre of leadership development. After all, leaders do not operate in a vacuum. It is the interactions, trust and alignment within teams that determine whether they thrive or fail.

Fostering a Team-First Culture: A Strategic Imperative

Creating high-impact teams isn’t just about gathering talented individuals. It requires a deliberate strategy. Teams must be aligned with organisational goals and equipped with the skills to collaborate effectively. This starts with fostering psychological safety, a shared sense of purpose and a culture of continuous learning within teams.

Research by Amy Edmondson highlights that trust and openness are critical to team innovation. Without these elements, progress stalls. HR professionals must take responsibility for actively shaping team dynamics to promote collaboration rather than hinder it.

Gartner’s recommendations for connection-based learning reinforce this need, suggesting that embedding team building and relationship building into development programs fosters trusted, enduring peer networks. These networks enable leaders to leverage collaborative skills long after formal training ends.

Practical steps to achieve this could include implementing regular team feedback sessions, encouraging transparent communication and aligning incentives with team success. By prioritising a team first culture, organisations can unlock the full potential of their teams and drive sustainable success.

Why Leadership Teams Matter More

Leadership teams face unique challenges compared to functional teams. They are responsible for setting the organisation’s strategy, culture and direction. Yet, they often receive the least support when it comes to team development. Many organisations assume that because senior leaders are experienced, they don’t need help functioning as a team. This is a dangerous myth.

Leadership teams often operate under immense pressure, face constant scrutiny and are expected to deliver in highly complex environments. Without intentional team development, they risk becoming misaligned, disconnected, and ineffective.

HR has a crucial role to play in ensuring that leadership teams are just as developed as individual leaders. They require tailored support to function as a cohesive unit, aligned in vision, values and communication, so they can lead the organisation effectively.

The Future of Work Demands More Than Just Technical Skills

In an increasingly complex world, technical skills alone are insufficient. Today’s challenges require leaders to possess emotional intelligence, resilience and the ability to collaborate effectively. As change agents, mentors and advocates for wellbeing, leaders must develop these qualities within team-oriented environments.

To meet these demands, HR Departments should ask themselves: Are we building leadership teams capable of driving innovation and adapting to change? Are we fostering the skills and mindsets necessary for effective collaboration? By prioritising these areas, organisations can position themselves for greater success in the future.

The Path Forward

The future belongs to organisations that invest in teams, not just individuals. HR professionals have a unique opportunity to drive this shift by making team performance a strategic imperative. Building strong, agile teams isn’t just about navigating the complexities of today. It is about positioning organisations to thrive in the uncertainties of tomorrow. The future of work demands it.