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10 Dysfunctions of Management Teams That Are Expensive for the Company

Governance & Management Team

10 Dysfunctions of Management Teams That Are Expensive for the Company

By David Chouraqui

It is a mistake to think that the problems of an Executive Committee or Management Board only concern the team. They impact all teams and the entire company. A dysfunctional management team can be costly, not only financially, but also in terms of company culture, employee engagement, and the achievement of strategic objectives.

Here are 10 issues frequently encountered within management teams:

1. Internal Conflicts & Strained Relationships

When mistrust takes root within a management team, communication is often compromised. Team members avoid constructive confrontations, prefer backstage discussions, and personal conflicts cascade into departments, worsening silos and multiplying clashes. These frictions hinder decision-making, lead to a decrease in employee morale, and establish a toxic culture.

2. Silos & Poor Cooperation

In any company, departments may tend to work in isolation, leading to information retention and a lack of cross-departmental collaboration. If directors do not foster cooperation within the management team, these silos result in significant efficiency losses, project delays, duplication of efforts, and missed opportunities.

3. Inefficient Team functioning

An inefficient management team is characterized by procrastination in decision-making, meetings that lead nowhere, and a lack of clarity about everyone’s roles. The consequences are a notable waste of time, a squandering of resources, and rising frustration within teams.

4. Strategic Misalignment

Strategic misalignment is manifested by contradictory decisions made by different leaders, competing initiatives, or the disengagement of directors who do not subscribe to the company’s strategy. The direct consequence is confusion about the direction to follow and the installation of doubt within the company. This type of dysfunction leads to a waste of resources, redundant efforts, and a loss of employee trust in the direction.

5. Resistance to Change

In a world where change is constant, a management team resistant to adaptation jeopardizes the company’s sustainability. Such a team may ignore market signals, delay the adoption of new technologies, or reject innovations. This attitude creates a competitive delay, making the company less agile in the face of its competitors. The reinforcement of resistance to change can also be linked to the protection of personal interests and the lack of suitable skills and resources. Ultimately, this can threaten the company’s position in the market.

6. Lack of Team Spirit and Exacerbated Individualism

A management team dominated by individualism jeopardizes the harmony and cohesion of the group. Every decision becomes an arena for personal interests rather than the general interest of the company. It is crucial to involve all members in a collective project with common goals and to ensure that everyone adheres to these goals. Introducing incentives for collective success can strengthen this adherence. Without it, the dynamic reduces synergy, creates internal conflicts, and harms the collective image of the direction.

7. Low Sense of Responsibility

Leadership that does not take responsibility inevitably leads to uncorrected errors and a lack of clear direction for the company. To empower each member, it is essential to establish clarity of objectives and missions, promote a results-oriented culture, and regularly monitor performance. Offering the possibility to challenge others on their expectations can also stimulate accountability. Without this, the company risks creating a culture of impunity, where serious mistakes are not appropriately addressed.

8. Avoidance of Difficult Topics and Confrontations

The systematic avoidance of sensitive subjects leads to an accumulation of unresolved issues and develops a lack of transparency within the team. Postponing decisions, not facing problems and crises can be costly for the company in the short and long term. Not addressing these subjects head-on develops a sense of instability and reinforces mistrust within the team. It also results in a loss of respect for the management team by employees.

9. Poor Team Composition

Having a management team without diversity of experiences, skills, and perspectives severely limits vision and effectiveness. This can lead to a repetition of mistakes and an inability to anticipate challenges. The composition of the team should be regularly re-evaluated based on the challenges and stakes of the company. Otherwise, a homogeneous team risks not adequately representing all stakeholders of the company.

10. Lack of Leadership and Team Animation by the CEO

A CEO is much more than a decision-maker. He is a leader, a mentor, and a team animator. It is imperative that he fosters a space where debate is encouraged, where team spirit is nurtured, and where each member feels valued. Without this dynamic, the management team risks becoming a mere collection of individuals rather than a united force for the good of the company. If the CEO does not play this role, the team’s efforts can be dispersed, leading to inefficiencies and frustrations. He must therefore be attentive to the 9 dysfunctions mentioned above to manage them when they appear.


Dysfunctions within a management team have a ripple effect on the entire organization. They can hinder growth, damage company culture, and demotivate employees. By recognizing these challenges and tackling them head-on, companies can turn obstacles into opportunities. Cohesion, alignment, and collaboration within the management team are more than essential: they are the engine of the company’s success as a whole.

To go further

At WINGMIND, we support management teams with our Team Boost program to strengthen their cohesion, collective performance, and alignment, for a more effective and resilient company.

David Chouraqui

Founder of WINGMIND, David Chouraqui serves as an advisor and coach for leaders and management teams. His areas of expertise include HR audits, leadership assessments, and change management.

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