Team Performance Assessment 101: What It Is And How To Do It Right

While many companies focus on individual performance evaluations, it’s equally important to understand how well teams are working together to achieve shared goals. So, how do you assess team performance effectively, and what are the best ways to improve it? 

In this guide, we’re going to look at the basics of team performance assessments, why they matter, and how to get them right.

What Are Team Performance Assessments?

Team performance assessments are structured evaluations that focus on how well a group of employees collaborates to meet their objectives. Just like individual performance, there are performance management tools that help measure team KPIs and behavioral data.

But unlike individual performance reviews that zoom in on one person’s contributions, team assessments take a broader view of how everyone works together to achieve collective outcomes.

Let’s say your marketing team is responsible for launching a new product campaign. A team performance assessment would look at how well the team coordinated creative tasks, met deadlines, and communicated during the project.

You may even go further examine their performance against goals for the project, what sort of impact it had and whether the team tried a new approach.

This goes beyond individual contributions, focusing instead on collaboration and the overall success of the project.

There are several methods to assess team performance, including:

• 360-degree feedback, which gathers input from team members, managers, and even clients.
• Performance metrics, such as project timelines, budget adherence, or sales growth.
• Project reviews, where team members reflect on what went well and what didn’t after completing a major project.

The goal is to get a comprehensive understanding of how the team operates as a unit, and provide feedback for continuous performance management of the group as a whole.

When Should You Assess Team Performance?

Timing is everything when it comes to team performance assessments. There are several key moments when evaluating your team can be particularly beneficial and that will differ from your usual performance management cycles.

It would be nice to sit here and give very direct advice, such as do a quarterly performance review, but that may not be the most relevant for the team as a whole or it might not fit the context of the work they’ve been doing. In the end, the assessment needs to be tailored to the team and what it needs. 

With that said, there are two general approaches to this that most teams find effective.

• Quarterly, semi-annual, or annual assessments - These provide ongoing insights into how the team is functioning and where improvements can be made.
• Major milestones or project completions - After finishing a significant project, conducting a performance review helps the team identify successes and areas for improvement. For example, after a successful product launch, a team performance review can reveal whether deadlines were met smoothly or if communication broke down along the way.

Assessments are also crucial during times of change, such as onboarding new team members or after a leadership change. These transitions often come with challenges, and assessing performance during these periods can help prevent issues from escalating. 

According to research from Gallup, 80% of employees who say they have received meaningful feedback in the past week are fully engaged.

Finally, conducting regular assessments can act as a proactive measure, addressing potential problems before they become major obstacles. By keeping an eye on team dynamics, managers can intervene early, ensuring smooth operations and better results.

4 Keys To Evaluating Team Performance

Evaluating team performance doesn’t have to be complicated, but it should be thorough and structured. Here’s a step-by-step guide to help you get started.

1. Clear, measurable goals: If this phrase seems overused, it's because it is. But it's also a sign of its importance. Goals should align with key performance indicators (KPIs), such as project completion deadlines, sales targets, or client satisfaction rates. Having clear goals gives your team a benchmark for success.
2. Quantitative and qualitative data: Using a mix of hard data (e.g., project timelines, sales numbers) and soft metrics (e.g., team communication and cohesion) ensures you get the measurability you need, while also capturing some of the context and nuance of events that shaped performance.
3. Encourage peer feedback: Incorporating peer feedback allows team members to give input on each other’s performance, providing a 360-degree view of team dynamics. This feedback helps highlight strengths and weaknesses that may not be visible to managers alone.
4. Use performance tracking tools: Project management tools can help track tasks, monitor deadlines, and assess team progress in real time. These platforms make it easier to gather data and spot bottlenecks early.

You’ve probably seen a lot of best practices for performance management as it applies to individuals, but when it comes to teams, everything is magnified as each team member will view any feedback through the lens of their own experience. Keeping it as simple and focused as you can is a good idea. 

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Benefits Of Team Performance Assessments

Conducting regular team performance assessments brings both tangible and intangible benefits to your organization. Here are some of the most notable ones. 

Improved team dynamics 

Assessments help identify areas where the team works well together and where they need improvement. This can lead to better collaboration, reduced conflict, and a more cohesive working environment.

Increased productivity 

By pinpointing inefficiencies or bottlenecks, assessments provide a roadmap for increasing team productivity. For example, if the team’s communication tools are outdated, switching to a more efficient platform could drastically improve workflow.

Boosted morale and engagement 

Teams that receive constructive feedback are more likely to stay engaged and motivated. Knowing that their contributions are recognized and that they have clear goals to work toward increases job satisfaction.

Meanwhile, a study from Textio in 2023 revealed that employees who receive low quality feedback are 63% more likely to leave the organization. 

Better alignment with organizational goals 

Regular assessments ensure that the team’s efforts are aligned with the company’s overall objectives. If the company’s overall goals are in flux, the nature of projects and priorities may need to change with it. This creates a clear connection between the team’s performance and the company’s success.

How To Improve Team Performance

After conducting a team performance assessment, the next step is to act on the findings. But to do that you need a framework for the roles people are going to play in the process. 

The 4 roles that have to be fulfilled in a high-performing team

Every high-performing team has four key roles that need to be fulfilled. These don’t have to be done by solely one person, and the lines may blur between the roles at times.

But essentially what we’re getting at here is identifying roles that will address the demands placed upon a high performing team.

• The Leader: Sets the vision and ensures the team stays aligned with goals.
• The Innovator: Comes up with creative solutions and drives innovation.
• The Executor: Focuses on getting things done efficiently and meeting deadlines.
• The Connector: Ensures smooth communication between team members and other departments.

By identifying who naturally fills these roles within your team, you can balance responsibilities and ensure that all aspects of performance are covered.

You can also succession plan for these roles and assess the suitability of individuals within a team using something like a 9 box talent review.

Regular feedback and check-ins

Regular feedback is key to maintaining high performance. For example, at Google, teams use OKRs (Objectives and Key Results) to track progress and ensure that everyone is aligned. These frequent check-ins allow teams to adapt quickly to changes and stay focused on their objectives.

What High-Performing Teams Do Better Than The Rest

What separates high-performing teams from average ones? Several key characteristics make these teams stand out:

• Trust and communication: High-performing teams trust each other, communicate openly, and share goals. This creates a collaborative environment where everyone feels empowered to contribute.
• Adaptability: High-performing teams can pivot quickly when faced with challenges. For example, when the pandemic hit, many companies had to shift to remote work. The teams that thrived were those that adapted quickly, using collaboration tools to maintain communication and productivity.
• Strong leadership and alignment: Great leaders not only set the direction but also recognize and celebrate successes, which boosts team morale and keeps momentum going.

In short, high-performing teams excel because they build strong communication channels, trust each other, adapt to change, and stay aligned with their goals.

What’s Next?

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