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The Science of Team Performance

A happy team can produce zero value. A "productive" team can burn through talent.
We measure what actually matters: net value creation.

The Problem

Traditional HR tools ask "Are you happy?" – but happiness doesn't equal performance.

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Illustration

The Country Club

High Happiness, Zero Output

Everyone loves their job, the culture is amazing, and team satisfaction scores are through the roof. But somehow, projects never ship on time, and the team produces nothing of value.

Traditional surveys: "Great team!" ✓
Business reality: "What did they actually deliver?" ✗

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Illustration

The Burnout Shop

High Output, High Turnover

The team hits every target and crushes deadlines. But people are exhausted, turnover is 40% annually, and you're spending more on recruiting than the team's entire output is worth.

Traditional surveys: "High performers!" ✓
Business reality: "Net ROI negative." ✗

Traditional analytics measure sentiment. We measure the mechanics—how a team turns its inputs into value, and where that value gets lost.

The Solution

We treat every team as a micro-enterprise with its own profit & loss statement. Revenue minus costs equals net value.

4.1
Input
4.2
Process
4.0
Output
-2.1
Friction
Team Net Value
66
Phase A

INPUT

The Assets

  • Talent & Skills
  • Resources & Budget
  • Clarity & Direction

Key Insight: Determines if failure is a resource issue (management) or execution issue (team).

Phase B

PROCESS

The Multiplier

  • Psychological Safety
  • Trust & Cohesion
  • Communication & Coordination

Key Insight: High-trust teams get more out of the same inputs. Low-trust teams lose part of their potential to friction.[2][3]

Phase C

OUTPUT

The Value

  • Delivery Quality
  • Stakeholder Impact
  • Innovation Results

Key Insight: What the outside world actually receives and values from your team.

Phase D

FRICTION

The Hidden Tax

  • Bureaucracy Overhead
  • Political Maneuvering
  • Rework & Waste

Key Insight: Friction can only tax value that exists—you can only lose what you're creating.

The Score

A single team effectiveness score from 0 to 100 that captures the full picture of team value creation: the share of the team's potential that is realised.

3.8 of 5

Purpose, direction, resources, roles, leadership

3.8 of 5

How the team works together, ten KPIs

3.7 of 5

What it delivers and the difference it makes

2.4 of 5

Energy lost to politics, overhead and rework. Higher is worse.

Team Net Value
Team Net Value
61/ 100
Good
050100
Value created
69
of 100 points
Friction tax
−12%
of that value lost
Team Net Value
61
Good

value = (mean(input, process, output) − 1) / 4 × 100 · tax = ((friction − 1) / 4)² · TNV = value × (1 − tax)

The tax is squared: friction at 3.0 costs a quarter of the value, at 4.0 more than half, at 5.0 all of it. That is why the “busy bees” preset scores low despite good Input and Output.

TNV = Value(Input, Process, Output) × (1 − Friction Tax)

Value is the average of Input, Process and Output scaled to 0-100. Friction is a tax on that value: none at 1.0, everything at 5.0. Scale: 0-100. Below 40 = needs attention. Above 60 = high performer.

Deep Dive

We measure team performance across 18 KPIs drawn from the team-effectiveness literature, grouped into Input, Process, Output and Friction.

INPUT

(5 KPIs)
Purpose & Objectives
4.2
Values & Vision
4.1
Environment & Resources
4.0
Team Organization
4.1
Leadership Principles
4.0

The 18 KPIs at a glance

Each KPI is scored from 1 to 5 from the answers of all team members. Input, Process and Output add value; Friction is the one KPI where a higher score is worse. The full item list and scoring rules are published in the open item bank.

Input5 KPIs

Purpose & Objectives
Whether the team shares a clear purpose and knows what it is working towards.[4]
Values & Vision
Alignment on long-term direction, shared values and strategic priorities.
Environment & Resources
Whether the team has the tools, time, budget and workspace it needs.
Team Organization
Clarity of roles, responsibilities and decision rights inside the team.
Leadership Principles
How leadership sets direction, removes obstacles and models the behaviour it asks for.

Process10 KPIs

Social Cohesion
The strength of the personal bonds and mutual support in the team.[3]
Innovation & Growth
Room for experiments, new ideas and learning from what did not work.
Delivery Methodology
Whether the way of working is fit for purpose, followed and improved.
Inner Drive
The intrinsic motivation and ownership members bring to their work.
Identification & Engagement
How strongly members identify with the team and its goals.[5]
Feedback & Development
Whether feedback flows regularly and people grow in their roles.
Motivation & Focus
Energy and attention directed at the work that matters most.
Trust & Safety
Psychological safety: whether people can speak up, disagree and admit mistakes.[2][6]
Communication Culture
Open, transparent information sharing and listening across the team.
Conflict Navigation
How constructively disagreements are surfaced and resolved.

Output2 KPIs

Team Output
The quality, reliability and pace of what the team delivers.
Organizational Impact
The difference the team makes beyond its own boundary.

Friction1 KPI

Friction & Consumption
Energy lost to bureaucracy, politics, instability and unproductive meetings (higher is worse).
Team Cohesion

Team Cohesion measures how much your team members agree across all survey questions. Lower variance = higher cohesion.

Your Team Cohesion

72
Good Cohesion
Solid agreement across the team

Strong Alignment (80%+)

High agreement, shared understanding

Your team members see things similarly across most areas. This high level of agreement suggests shared understanding and aligned perspectives.

Moderate Alignment (40-60%)

Mixed agreement, some variation

Your team shows mixed agreement across different areas. This variation suggests opportunities for better alignment conversations.

Low Alignment (<40%)

Significant disagreement

Your team shows significant variation in perspectives. This suggests important opportunities for alignment and shared understanding.

Hidden Dynamics

A score of "3.0" could mean everyone voted 3 (stability)... or half voted 1 and half voted 5 (civil war). Agreement matters as much as score.

Consensus Matrixyour KPI in dark navy
StrengthsKnown challengesHidden concernsUnclear1.02.03.04.05.0Average scoreAgreementhighlowPurpose & Objectives: 3.9, σ 0.7, StrengthValues & Vision: 4.1, σ 0.6, StrengthEnvironment & Resources: 3.6, σ 1.1, Hidden concernTeam Organization: 3.8, σ 0.8, StrengthLeadership Principles: 3.4, σ 1.2, UnclearSocial Cohesion: 4.4, σ 0.6, StrengthInnovation & Growth: 3.1, σ 0.9, Known challengeDelivery Methodology: 2.9, σ 1.3, UnclearInner Drive: 4.2, σ 0.5, StrengthIdentification & Engagement: 4.3, σ 0.7, StrengthFeedback & Development: 3.3, σ 0.9, Known challengeMotivation & Focus: 3.7, σ 1.1, Hidden concernTrust & Safety: 4.5, σ 0.5, StrengthCommunication Culture: 3.8, σ 0.8, StrengthConflict Navigation: 3.5, σ 1.0, Hidden concernTeam Output: 4.3, σ 1.2, Hidden concernOrganizational Impact: 3.0, σ 0.7, Known challengeYour KPI
  • Strength8
  • Hidden concern4
  • Known challenge3
  • Unclear2
KPIs by average score and agreement
KPIScoreSpread (σ)Reading
Purpose & Objectives3.90.7Strength
Values & Vision4.10.6Strength
Environment & Resources3.61.1Hidden concern
Team Organization3.80.8Strength
Leadership Principles3.41.2Unclear
Social Cohesion4.40.6Strength
Innovation & Growth3.10.9Known challenge
Delivery Methodology2.91.3Unclear
Inner Drive4.20.5Strength
Identification & Engagement4.30.7Strength
Feedback & Development3.30.9Known challenge
Motivation & Focus3.71.1Hidden concern
Trust & Safety4.50.5Strength
Communication Culture3.80.8Strength
Conflict Navigation3.51.0Hidden concern
Team Output4.31.2Hidden concern
Organizational Impact3.00.7Known challenge
4.1 of 5

The cut is at 3.5: at or above counts as a high score.

σ 1.3

answers from one end of the scale to the other. Below σ 1.0 the team counts as agreeing.

The report reads this as
Hidden concern

The average looks fine, but part of the team disagrees. Ask before you celebrate.

The dots are the example team's 17 value KPIs. Below eight responses the report shows agreement as a hint, not a verdict, because one person can move σ across the cut.

Zone of Truth

High score, high agreement

True strengths. Everyone agrees this works well. Build on these confidently.

Silent Killer

High score, low agreement

Delusion. Leaders think it's great; others don't. These cause the worst surprises.

Known Broken

Low score, high agreement

Shared pain points. Easiest to fix because everyone agrees it needs work.

The Fog

Low score, low agreement

Confusion. The team does not even agree on what is broken. Start with a shared picture before trying to fix anything.

Astronauts finding a plant on a new planet

Every team has a way it likes to work.

Twelve questions, four dimensions, sixteen identities. A description, not a grade.

Team Identity

Like a personality type, but for your whole team. Four dimensions create 16 distinct operating styles—each with superpowers and blind spots.

FOCUS

Internal (I)↔External (E)

STRUCTURE

Stable (S)↔Flexible (F)

INTERACTION

Consensus (C)↔Drive (D)

VALUE

Optimize (O)↔Innovate (N)

Your Team's DNA

Your Team Identity
E
F
C
N

Focus

E

Where does your team direct its attention?

InternalExternal
+0.5Balanced
IInternal

Values culture, harmony, and internal dynamics

EExternal

Values market, stakeholders, and external impact

Structure

F

How does your team organize work?

StableFlexible
+1.3Flexible
SStable

Values process, predictability, and defined goals

FFlexible

Values agility, adaptation, and purpose-driven work

Interaction

C

How are decisions made?

ConsensusDrive
-0.7Balanced
CConsensus

Values democracy, buy-in, and inclusive decisions

DDrive

Values speed, directive leadership, and accountability

Value Creation

N

How does your team create value?

OptimizationInnovation
+2.0Innovation
OOptimization

Values efficiency, reliability, and incremental improvement

NInnovation

Values discovery, disruption, and creative solutions

Two astronauts looking through a telescope

Built on published research, not on a workshop slide.

Every KPI definition and every reference is public. Check the sources yourself.

The Science

Our methodology is grounded in the Input-Mediator-Output-Input (IMOI) model—one of the most cited frameworks in team science[1]. The KPIs it organises are drawn from the team-effectiveness literature, built on 20+ years of published team research.

I

Inputs

Starting conditions: composition, resources, context

M

Mediators

Emergent states + processes: trust, safety, communication

O

Outputs

Results: performance, satisfaction, learning

Feedback Loop: Outputs become new inputs, creating continuous learning and adaptation.

The KPIs rest on published work: psychological safety[2], the cohesion–performance link[3], the conditions for effective teams[4], the engagement research behind the Gallup Q12[5] and Google's Project Aristotle[6]. The full list is in the references.

Comprehensive Coverage

We assess structural factors, relational dynamics, AND outcomes.

Focus on What Matters

Mediators are where teams have the most leverage for change.

Continuous Improvement

Track how dynamics evolve and see the impact of changes over time.

Actionable Insights

Target specific factors that will have the biggest impact for YOUR team.

Actionable

To avoid analysis paralysis, we don't give you 20 fixes. We give you one high-leverage intervention—the single most important thing to focus on right now.

1

Survival Check (Safety)

IF Psychological Safety < 2.5
OBT: "Stop the Bleeding"

Intervene on toxic behavior or fear. Nothing else matters until this is fixed.

2

Clarity Check (Direction)

IF Goal Alignment < 3.0
OBT: "Reset the Compass"

You cannot optimize execution if the target is wrong.

3

Energy Check (Burnout)

IF Consumption Score > 4.0
OBT: "Cut the Fat"

Cancel meetings, reduce bureaucracy. The team is too tired to innovate.

4

Process Check (Consensus)

IF Silent Killer detected
OBT: "Bridge the Gap"

The leader believes X, the team believes Y. Align reality.

5

Optimization Check

IF All above healthy
OBT: "Push for Impact"

Focus on external stakeholder value and innovation.

References

The published work behind the model, the KPIs and the free self-tests. We cite only what we actually use, and we say what each source is used for.

The team model

The published work behind the Team P&L, the 18 KPIs and the One Big Thing ladder.

  1. [1]

    Ilgen, D. R., Hollenbeck, J. R., Johnson, M., & Jundt, D. (2005). Teams in organizations: From input-process-output models to IMOI models. Annual Review of Psychology, 56, 517–543.

    Used for: The backbone of the Team P&L: inputs, mediators (process), outputs and the feedback loop.

  2. [2]

    Edmondson, A. (1999). Psychological safety and learning behavior in work teams. Administrative Science Quarterly, 44(2), 350–383.

    Used for: The Trust & Safety KPI and the first rung of the One Big Thing ladder.

  3. [3]

    Beal, D. J., Cohen, R. R., Burke, M. J., & McLendon, C. L. (2003). Cohesion and performance in groups: A meta-analytic clarification of construct relations. Journal of Applied Psychology, 88(6), 989–1004.

    Used for: Why Social Cohesion is a Process KPI rather than a nice-to-have.

  4. [4]

    Hackman, J. R. (2002). Leading Teams: Setting the Stage for Great Performances. Harvard Business School Press.

    Used for: The Input KPIs: a real team, a compelling direction, an enabling structure and a supportive context.

  5. [5]

    Gallup. The Relationship Between Engagement at Work and Organizational Outcomes: Q12 Meta-Analysis (latest edition). gallup.com

    Used for: The engagement and feedback KPIs, and the link between engagement and business outcomes.

  6. [6]

    Google re:Work. Guide: Understand team effectiveness (Project Aristotle). rework.withgoogle.com

    Used for: The five dynamics of effective teams, psychological safety first among them.

The free self-tests

Each test in Resources has its own research-basis box; these are the main sources.

  1. [7]

    Goldberg, L. R. (1990). An alternative "description of personality": The Big-Five factor structure. Journal of Personality and Social Psychology, 59(6), 1216–1229.

    Used for: The five traits of the Work Personality Test.

  2. [8]

    Costa, P. T., & McCrae, R. R. (1992). Revised NEO Personality Inventory (NEO PI-R) and NEO Five-Factor Inventory (NEO-FFI) professional manual. Psychological Assessment Resources.

    Used for: The facet structure behind the five work traits.

  3. [9]

    World Health Organization. ICD-11 for Mortality and Morbidity Statistics, QD85 Burn-out. who.int

    Used for: The three dimensions of the Burnout Test: exhaustion, mental distance, reduced efficacy.

  4. [10]

    Maslach, C., & Leiter, M. P. (2016). Understanding the burnout experience: recent research and its implications for psychiatry. World Psychiatry, 15(2), 103–111.

    Used for: The six areas of work life that drive strain in the Burnout Test.

The PEAKTEAMS instrument itself (the 18 KPIs, Team Net Value and the 16 team identities) is an original questionnaire built on this literature. Benchmark data will be published as teams complete the survey. The free self-tests in Resources each carry their own research-basis box and review date.

Get your Team Net Value score, discover your identity, and receive one high-leverage recommendation—about 12 minutes per team member.

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