Even the best teams hit rough patches. But when team underperformance becomes a pattern, it can quietly drain productivity, morale, and momentum—especially in a small business.
Recognizing signs of team underperformance early is crucial to maintaining efficiency.
If you’re unsure whether your team is truly aligned or just going through the motions, watch for these five red flags and learn how to course-correct fast.
1. Deadlines Are Frequently Missed
Missed deadlines are often the most visible indicator of underperformance. But the root cause isn’t always laziness—it could be poor communication, unclear expectations, or task overload.
Missed deadlines can be frustrating not only for team members but also for clients who rely on timely deliverables. For example, a marketing team may miss the launch date for a new campaign, resulting in lost opportunities and dissatisfied clients. To prevent this, teams should implement a clear project timeline and milestones to ensure everyone is on track. Additionally, having a dedicated project manager can help keep the team accountable and focused on their tasks.
Addressing team underperformance starts with understanding the underlying issues.
Fix:
- Reassess workload distribution
- Use tools like Asana or Trello for task clarity
- Hold weekly stand-ups to identify blockers early
2. Communication Feels Disjointed or Reactive
Is your team constantly “putting out fires”? Reactive communication—waiting until things go wrong to speak up—is a sign that proactive planning and collaboration are lacking.
Effective communication is vital for a team’s success. For instance, in a software development team, if the developers and testers are not communicating well, it can lead to bugs in the final product. To enhance communication, teams can establish a shared digital workspace where all relevant information is accessible to everyone. This could include meeting notes, project updates, and individual responsibilities, reducing the chances of miscommunication.
When faced with team underperformance, leaders must take proactive measures.
Fix:
- Establish clear meeting rhythms (e.g., weekly planning, daily check-ins)
- Use tools like Slack to improve async collaboration
- Reinforce open-door leadership policies
3. You’re the Bottleneck for Every Decision
If your team can’t move forward without your approval on every task, it’s a sign of over-dependence—and lack of confidence or autonomy.
Being the bottleneck can stifle creativity and innovation within a team. For example, if a team member has a great idea but needs approval before proceeding, it can lead to frustration and demotivation. To combat this, leaders should foster a culture of trust where team members feel empowered to make decisions. Implementing a system of checks and balances can help maintain oversight without micromanaging every decision.
To combat team underperformance, build a culture that encourages initiative.
Fix:
- Delegate decision-making authority where appropriate
- Train team leads or assign project ownership
- Clarify boundaries for escalation
4. Morale Is Quietly Slipping
You may not hear direct complaints, but you notice it—people are less engaged, cameras stay off in Zoom calls, and enthusiasm is low.
Low morale can affect productivity and lead to high turnover rates. For example, if employees feel undervalued, they may start looking for opportunities elsewhere. To improve morale, leaders should recognize and reward contributions regularly. A simple acknowledgment during a team meeting or a personalized thank-you note can go a long way in boosting team spirit and retaining valuable employees.
To tackle team underperformance, fostering positivity can be transformative.
Fix:
- Schedule 1-on-1s to check in on workload and well-being
- Acknowledge wins, even small ones
- Revisit the team’s “why”—reconnect to mission and purpose
5. There’s High Turnover (or Quiet Quitting)
If employees are leaving or mentally checking out, it’s a late-stage symptom of a deeper performance issue. Often, this stems from feeling undervalued or underutilized.
High turnover rates can disrupt team dynamics and lead to loss of institutional knowledge. For instance, when experienced employees leave, they take valuable insights and expertise with them. To reduce turnover, companies can create a supportive environment where employees feel valued and engaged. This might include offering professional development opportunities or fostering a culture where feedback is encouraged and acted upon.
Understanding the root causes of team underperformance can guide effective solutions.
Fix:
- Create growth plans with each employee
- Invite honest feedback through anonymous surveys or safe conversations
- Address toxic behaviors early
Read: 4 Strategies to Improve Small Business Team Performance
Frequently Asked Questions
Frequently Asked Questions can provide clarity and help teams navigate challenges. For example, if team members are uncertain about roles and responsibilities, it can lead to confusion and inefficiency. Addressing these questions through regular Q&A sessions can promote transparency and ensure everyone is on the same page.
Addressing team underperformance requires a commitment to open dialogue.
What causes team underperformance?
Common causes of team underperformance include lack of clarity, poor communication, low morale, burnout, or weak leadership systems.
How do I know if it’s an individual or team issue?
If performance issues are widespread, it’s likely systemic. Start by evaluating team structure, leadership, and workflows before focusing on individuals.
What’s the best way to fix underperformance quickly?
Start with honest conversations. Clarify expectations, redistribute workload if needed, and empower employees to make decisions with accountability.
In summary, addressing team underperformance is essential for long-term success.
