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9 Feb 2025 — Jan's Rules for Building Extraordinary Companies:

Competence vs. Attitude: Unlocking Extraordinary Team Performance

Team attitude, not just competence, determines success. Learn actionable strategies to build high-performing teams that deliver exceptional results, valuable insights for builders, buyers, and sellers.

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Competence versus Attitude: The Unsung Equation of Team Performance

We’ve spent almost three decades building, scaling, and optimising businesses across diverse sectors. One recurring theme consistently emerges, shaping success more profoundly than any technological advancement or market trend: the interplay between competence and attitude within a team. It’s not simply about what your team can do, but crucially, what they will do. This seemingly subtle distinction holds the key to unlocking extraordinary performance, and it’s a lesson we’ve learned the hard way, often through trial and error.

Raising the competence level of a team is, in many ways, the easier part. You hire skilled individuals, invest in training, provide the right tools – the potential output increases demonstrably. But this only defines the upper bound of what a team can achieve. The true measure of a team’s potential, the lower bound of its performance, is determined by its collective attitude. This encompasses factors like commitment, resilience, collaboration, and a shared sense of purpose. A team brimming with talent but lacking the right attitude will consistently underperform, failing to reach its full potential. We’ve seen teams with impressive technical skills falter because of internal friction, lack of motivation, or a general lack of commitment to the shared goals.

Consider a high-performing sales team. They might possess exceptional product knowledge (competence), but if they lack the drive to make those extra calls, the persistence to overcome objections, or the collaborative spirit to share best practices, their results will inevitably fall short. Conversely, a team with less technical expertise but an unwavering commitment, a positive attitude, and a strong team spirit can often outperform a more technically gifted but less motivated team. This is where the magic happens, where the true potential of a team is unlocked.

For builders – those leading growing companies – understanding this dynamic is paramount. While investing in talent and technology is crucial, fostering a positive and productive team culture is equally, if not more, important. This means creating an environment where individuals feel valued, empowered, and motivated to contribute their best. It’s about setting clear expectations, providing regular feedback, and celebrating successes. It’s about building a team that not only can achieve great things, but will achieve great things.

Venture capitalists, private equity firms, and strategic buyers – our buyers – are acutely aware of this. Due diligence goes beyond scrutinising financial statements and technical infrastructure. It delves into the very heart of the organisation, assessing the team’s dynamics, its culture, and its overall attitude. A company with a highly competent team but a toxic work environment or a lack of shared vision presents a significant risk. Conversely, a company with a team demonstrating a strong work ethic, collaborative spirit, and a clear sense of purpose presents a compelling investment opportunity, regardless of minor technical shortcomings that can be addressed.

For sellers – owners of established businesses contemplating a sale – this understanding is crucial for maximising value. A positive team attitude translates directly into a higher valuation. Buyers are willing to pay a premium for a company with a strong, motivated team, knowing that this asset will contribute significantly to post-acquisition success. By cultivating a positive and productive team culture, sellers can significantly enhance the attractiveness of their business to potential buyers, protecting their legacy and securing a better return on their investment.

The future of work, shaped by automation, AI, and efficiency requirements, will only amplify the importance of this dynamic. As technology takes over routine tasks, the human element – the attitude, the commitment, the collaborative spirit – will become even more critical. Teams that can adapt, innovate, and collaborate effectively will be the ones that thrive in this evolving landscape. Those that lack the right attitude will be left behind, regardless of their technical capabilities.

So, what can you do? Start by fostering open communication, encouraging collaboration, and celebrating successes. Invest in team-building activities, provide opportunities for professional development, and create a culture of recognition and appreciation. Remember, building a high-performing team is not just about assembling the right skills; it’s about cultivating the right attitude. It’s about building a team that not only can achieve extraordinary things, but will achieve extraordinary things. It’s about building extraordinary companies. Contact us today to explore how we can help you build your extraordinary company.