The equation is straightforward: a leader with poor or ineffective management habits will likely get less from their team, while employees under strong business leadership tend to work harder and achieve more.
Think about the benefits when small business team leadership focuses on lifting both individual and group performance:
- A boost in productivity
- Stronger employee engagement
- Higher morale
- Opportunities to promote talented staff
- Reduced staff turnover
This guide explores poor management habits to avoid and better leadership practices to embrace, helping you answer key questions:
- Why is my team underperforming?
- How do I improve team performance?
- What leadership skills matter most for success?
Identify Bad Habits, then Get Rid of Them
Strong leaders understand they may have “blind spots” in their leadership style. Bad habits can be identified, then replaced with more effective approaches.
Micromanagement
A common leadership mistake is micromanagement. Not only is this style unproductive in the long term, but it can also alienate employees who are otherwise capable of performing well. Micromanagers often:
- Constantly monitor their teams
- Demand repeated check-ins
- Hover over employees and critique performance
- Neglect to listen and collaborate
When employees feel consistently second-guessed, their motivation and engagement drop.
To avoid micromanaging, focus on developing your team members’ skills. Resist the urge to “fix” things yourself. Let staff work through challenges and learn from mistakes. In the long run, they will feel more trusted and accountable for their responsibilities.
Poor Delegation
Another common shortfall in leadership is poor delegation. Failing to delegate tasks (that don’t need to be completed by managers or executives) often reflects a lack of trust in the team. This lack of confidence becomes clear to employees who are otherwise capable of handling important work.
By contrast, strong teams grow when leaders assign duties and responsibilities appropriately, freeing themselves to focus on long-term business strategies.
Lack of Communication
Perhaps the most damaging habit is poor communication. Leaders sometimes withhold updates, believing the team doesn’t need to know. This only fuels frustration and uncertainty. As Fora Financial notes:
“No matter how experienced or talented your team is, communication breakdowns will always undercut productivity. Whether it’s unclear direction, inconsistent updates, or lack of feedback, poor communication creates frustration and slows things down.”
Executives and managers benefit from examining how they share information. Where are employees left uninformed? How might this hinder operations? Refine your communication—whether through emails, meetings, or one-to-ones—and you’ll see fewer misunderstandings and stronger engagement.
How to Counter Underperformance in Your Teams
Signs of underperformance are often easy to spot: lack of coordination, low morale, and a generally negative workplace vibe. Causes range from limited resources to knowledge gaps or conflicting directions from leaders.
To counter this, LinkedIn advises:
“You should have a candid and respectful conversation with your underperforming employees, and listen to their perspectives and concerns. You should also review their work history, performance data, and feedback from other sources, such as peers, customers, or suppliers. By identifying the root causes of underperformance, you can tailor your support and intervention strategies accordingly.”
The first step in addressing low productivity is understanding why it’s happening. With that clarity, you can develop effective strategies to turn things around.
What a Strong Leader Can Do
Underperformance isn’t something leaders have to accept. Taking proactive steps can inspire improvement.
- Cultivate and share your vision of success.
Your team needs to understand your business’s mission and long-term goals. When they see how they fit into the bigger picture, they’re more motivated to contribute. Spend time sharing your vision and reinforcing the message that “we’re in this together.” - Ensure alignment with company goals.
Proper alignment means team members share a common understanding of your organisation’s values, objectives, and priorities. This creates consistency and accountability across the team. - Lead by example.
Your words and actions set the tone. When you demonstrate integrity, handle challenges respectfully, and maintain professionalism, you show your team the behaviours you expect in return.
How Feedback and Empowerment Can Grow Your Team
Teams often underperform when they’re unsure how their work is viewed or when they lack opportunities to grow.
Employees value constructive feedback. Instead of waiting for annual reviews, managers can provide regular feedback—whether through planned check-ins or impromptu discussions. This keeps staff clear on expectations and confident in their progress.
Experts suggest performance reviews should happen more often. According to the U.S. Chamber of Commerce, effective reviews should:
- Clearly describe where performance is lacking and what success looks like
- Set small, realistic action steps to measure progress
- Provide support for training and development
Documenting performance plans ensures everyone is working from the same page.
If you’ve hired ambitious people, underperformance may stem from a lack of freedom to take initiative. As Small Business Expo notes:
“To empower your team, provide them with the necessary resources, training, and support they need to succeed. Encourage them to make decisions and take calculated risks, reinforcing that mistakes are part of the learning process. When team members feel trusted and valued, their engagement levels rise, leading to greater innovation and productivity.”
Feedback, empowerment, and growth opportunities are powerful motivators for long-term success.
Celebrate Achievements
As performance improves, it’s important to recognise and celebrate wins—both individual and team-based.
Public recognition motivates employees and shows they’re valued. This can be as simple as a manager saying “thank you” or acknowledging achievements in a team meeting.
Dennis O’Reilly, writing in Forbes, highlights creative ways of showing appreciation, such as department-specific awards, “Walls of Fame,” break room upgrades, or wellness perks like yoga sessions or team activities.
Achievements can also be highlighted in company newsletters or on your website, reinforcing loyalty and improving retention.
Better Management Habits FAQs
Q: Why is my business team underperforming?
A: Causes vary. Sometimes it’s unclear expectations, sometimes poor collaboration, or simply ineffective leadership. Internal barriers, like bureaucracy or mixed messages, often play a role.
Q: How can I improve my management habits?
A: Recognising the need to improve is the first step. Watch for blind spots such as micromanagement. Delegate more, communicate often, and focus on trust and development.
Q: How can I improve my business team’s performance?
A: Start with open discussions about strengths and weaknesses. Provide constructive feedback, ensure your team has the tools they need, and create spaces for collaboration and idea-sharing.
Q: What can we do to boost morale and increase retention?
A: Start with your leadership style. Positivity and integrity set the tone. Recognise and reward achievements, promote from within, and ensure a supportive, respectful workplace culture.
Want to learn more? Becoming a member of The Alternative Board can help you lift employee performance and create a winning strategy for your business’s future.