In our previous article, we explored why a strong strategy and capable CEO do not automatically lead to successful execution. While both are critical ingredients, they are rarely enough on their own.
The next question boards should ask is this: if the strategy is sound and the CEO is effective, what else determines whether an organisation delivers on its objectives?
The answer often lies in the effectiveness of the leadership team.
Across many leadership and governance reviews, we see organisations with experienced executives, capable CEOs and clear strategic plans that still struggle to convert intent into results. The issue is not usually a lack of talent. It is the ability of the leadership team to operate as a cohesive and aligned group.
The leadership capability trap
Most organisations place significant emphasis on selecting the right executives.
The assumption is understandable. If each executive is highly capable, organisational performance should improve.
However, leadership teams are not simply the sum of individual capability.
An organisation can have exceptional executives leading finance, operations, people, technology and customer functions, yet still struggle to execute effectively. In these situations, executives perform strongly within their own portfolios but fail to work effectively across organisational boundaries.
The result is often duplication, competing priorities, delayed decisions and fragmented execution.
Boards may see the symptoms without recognising the underlying cause.
When a leadership team is not really a team
Many executive groups function more as reporting forums than leadership teams.
Leaders come together, provide updates, discuss issues and then return to their individual areas of responsibility. While information is shared, genuine collective ownership is limited.
This creates several common challenges:
- Functional priorities outweigh enterprise priorities.
- Cross-functional issues remain unresolved.
- Accountability becomes siloed.
- Difficult decisions are delayed.
- Resources are allocated inconsistently.
- Strategic initiatives lose momentum.
Over time, these issues create friction that slows execution and reduces organisational performance.
The challenge is not whether the executives are capable. The challenge is whether they are working together effectively.
What high-performing leadership teams do differently
Strong leadership teams share several characteristics.
They are aligned on organisational priorities and understand what success looks like beyond their individual functions. They engage in constructive debate without allowing disagreement to become dysfunction. They make decisions efficiently and support those decisions once made.
Most importantly, they view themselves as collectively accountable for organisational outcomes.
This mindset shift is critical.
When executives move from protecting functional interests to pursuing enterprise outcomes, execution becomes significantly stronger.
Resources become better aligned. Decision-making accelerates. Accountability becomes clearer. Strategic initiatives gain traction.
The organisation begins to move in one direction rather than several.
The CEO’s most important responsibility
Many people assume the CEO’s primary role is setting strategy.
While strategy remains important, execution depends heavily on the CEO’s ability to build and maintain an effective leadership team.
This means creating clarity around priorities, establishing shared accountability and addressing behaviours that undermine collaboration.
The strongest CEOs invest as much effort into developing leadership team effectiveness as they do into developing strategy.
They recognise that strategy is only valuable if the organisation has the capability to execute it.
What boards should be paying attention to
Boards naturally spend considerable time evaluating strategy and CEO performance.
Far fewer boards formally assess how effectively the leadership team operates as a collective.
This creates a significant blind spot.
When execution is inconsistent, boards often focus on strategic plans, organisational structures or executive capability. These areas matter, but they may not identify the root cause.
Boards should also consider:
- Does the leadership team operate with a shared sense of purpose?
- Are organisational priorities aligned across functions?
- Is accountability clear and consistent?
- Are decisions made efficiently?
- Do executives collaborate effectively across organisational boundaries?
- Is there evidence that strategic priorities are being translated into action?
The answers to these questions often provide a more accurate picture of execution capability than reviewing strategic plans alone.
Measuring leadership team effectiveness
What gets measured tends to improve.
Boards commonly assess board effectiveness, CEO performance and organisational outcomes. Yet leadership team effectiveness is rarely measured with the same level of rigour.
This is surprising given that leadership teams are responsible for translating strategy into action.
A structured leadership team effectiveness review can help organisations identify strengths, uncover barriers to collaboration and highlight areas that may be slowing execution.
Importantly, it provides boards with evidence-based insights rather than relying solely on observation or anecdotal feedback.
Final thoughts
Execution challenges are often attributed to strategy or leadership capability.
In reality, many organisations have both.
The missing ingredient is frequently the effectiveness of the leadership team responsible for delivering the strategy.
A capable CEO remains essential. So does a clear strategy.
However, organisations achieve the strongest results when they also invest in how their leadership teams operate, collaborate and execute together.
For boards seeking stronger organisational performance, understanding leadership team effectiveness may be one of the most valuable places to start.
