How Should CEOs Assemble Winning Executive Teams?

For today’s CEOs, the quality of their top team can be the difference between bold transformation and stalled ambition. 

In a world defined by complexity and constant change, the executive team must act not only as functional leaders, but as a unified force that drives success.

According to McKinsey & Company, organisations with aligned and effective top teams are nearly twice as likely to outperform their peers financially. 

Nearly three-quarters of CEOs in McKinsey’s CEO Excellence programme said that building, retaining and growing effective top teams is their top priority.

The study by the McKinsey Centre for CEO Excellence explores successful top-team transformations and their impact on morale, alignment and performance.

Building a healthy exec team

A truly effective executive team is much more than the sum of its individual leaders. 

McKinsey says that these teams thrive from the knowledge that every member can speak candidly, challenge assumptions and surface difficult truths without fear of reprisal. 

This environment of openness fuels innovation and better decision making, especially when navigating complex, high-stakes issues like international expansion or digital transformation.

Healthy teams also exhibit clear role clarity. Each member understands their unique contribution and how it fits into the broader organisational objectives. 

When roles overlap or remain ambiguous, accountability blurs, slowing progress and creating frustration.

The report says that many CEOs face the same issue: a seemingly harmonious team that, beneath the surface, struggles to engage meaningfully. 

Polite nods and lack of debate often mask deeper dysfunction – whether it’s fear of conflict, unclear decision rights, or disengagement. 

According to a survey by Harvard Business Review (HBR), nearly 75% of cross-functional teams experience dysfunction.

One middle manager said in HBR's work said: “No one was willing to go to management and say, ‘let’s redeploy everyone, including myself, and do something else because this project isn’t working.”

McKinsey outlines that another common stumbling block is the outdated “hub and spoke” leadership model, where the CEO remains the sole decision-maker, delegating tasks without fostering true collaboration. 

This approach may suffice in simpler contexts but falters amid today’s volatility and complexity. 

Top teams must operate as cohesive units, drawing on diverse expertise and perspectives to steer the organisation through disruption.

The report compares exec teams to sports teams and orchestras, saying that corporate leadership groups require relentless practice, ongoing development, and deliberate effort to build trust and sharpen collective performance.

Recognising these core traits – and addressing common pitfalls – is the first step for any CEO committed to building a sustainable competitive advantage.

Concrete actions for CEOs

A recent McKinsey study of leading athletic coaches across the US found a common trend: in environments with minute margins for error, winning sports leaders continually refine a formula for building and reinventing their teams.

The principles of sports leaders “setting clear goals and standards and fostering a culture in which the team comes before the individual”, apply to CEOs too.

McKinsey sets out the following core principles that CEOs should follow for their team’s transformation:

1. Don’t skimp on the diagnosis

The company’s research indicates that execs tend to have a more favourable perception of their teams’ effectiveness than team members themselves.

This highlights the importance of CEOs taking time to thoroughly understand where their teams are currently excelling and where they are not.

2. Commit for the long haul 

CEOs are recommended to make this transformation their key priority and view it as a continuous journey rather than something that can just be ‘fixed’.

This involves implementing regular interventions and keeping track of maintaining the progress.

3. Practice makes perfect 

Throughout McKinsey’s studies, they found that all the world’s best teams have one thing in common: they constantly practice working as a cohesive unit.

It recommends that leading execs should focus on building the muscle they need to work together.