
Smaller Teams Can Outperform Bigger Ones, But Only If These 5 Roles Are Covered
The secret to building a lean team that outperforms a larger one isn't about hiring 'smarter' people or asking everyone to 'step up.' It's about ensuring that every critical role your team needs to function at full speed is covered.
And that means thinking about teams in terms of the five critical roles.
The Five Roles Every High-Performing Team Needs
After studying thousands of effective teams, from boardrooms to project task forces, five roles appear almost without exception:
These aren't job titles; they're functions that must be fulfilled for the team to operate at its peak. One person might fill more than one role. Roles can shift depending on the project. But on a lean team, every single one must be covered.
For CEOs, it's important to note that while it seems like you'd naturally fill the Director role, there are plenty of chief executives who prefer to play other parts. For example, the data from Leadership IQ's quiz 'What Type Of Team Player Are You?' shows that more than a few CEOs naturally gravitate to the Trailblazer role.
Why Lean Teams Fail: The Missing Role Problem
When companies downsize without mapping roles first, they almost always create role gaps, and those gaps can cripple execution. In our research, 97% of the most effective teams had all five roles covered. Among the worst teams, only 21% did.
Here's what happens when one is missing:
If Your Team Is Missing A Director: Decisions linger. Projects stall. Without someone willing to call the plays, especially when the choices are unpopular, the team ends up in endless debate. The result is missed opportunities and strategic drift.
If Your Team Is Missing An Achiever: Ideas multiply, meetings get scheduled, and strategies are drafted, but nothing actually gets finished. Deadlines slip, and the team earns a reputation for talking big but delivering small.
If Your Team Is Missing A Stabilizer: The team may have vision and energy, but priorities change weekly and no one knows exactly what's due when. Work gets duplicated, resources are wasted, and important initiatives lose momentum.
If Your Team Is Missing A Harmonizer: On paper, the team looks great. In reality, interpersonal tensions simmer until they boil over. Without someone smoothing relationships and de-escalating conflicts, friction eats into performance and causes valuable people to leave.
If Your Team Is Missing A Trailblazer: The team executes flawlessly, on yesterday's plan. Without a role dedicated to fresh thinking, the group defaults to 'safe' ideas, misses market shifts, and becomes vulnerable to more innovative competitors.
Why This Matters Even More When You Go Lean
In large teams, missing a role is sometimes masked; there's enough slack in the system for other people to cover, even if they do it imperfectly. But in lean teams, there's no safety net. If you downsize and eliminate the only person acting as your Stabilizer, deadlines start slipping immediately. Lose your only Harmonizer, and a small disagreement can turn into a productivity-killing feud.
Lean teams don't have the luxury of redundancy. Every gap is amplified. That's why the first move for a CEO aiming to make their team smaller and stronger should be a role audit, not a headcount spreadsheet.
How to Audit for Role Balance Before You Cut
The Payoff: Smaller Teams, Bigger Output
A lean, role-balanced team delivers more with less because:
When these roles are present, small teams become sharper, faster, and more adaptable than bloated ones—without burning people out.
If you're a CEO and you want to make your team leaner and more effective, stop thinking about who to cut based on salary or title. Start thinking about which roles you can't afford to lose. Once you protect those roles, you can streamline headcount with confidence. And you'll end up with a smaller team that's not just surviving, but outperforming.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
This week in 5 numbers: Employees use banned AI tools to speed up their work
This story was originally published on HR Dive. To receive daily news and insights, subscribe to our free daily HR Dive newsletter. The U.S. Department of Labor is offering money to employers who help train workers to fill critical needs, and for the first time since 2020, the percentage of CEOs who plan to shrink their workforce was higher than that of those looking to expand. Here's a closer look at those numbers and some of the others making headlines in the HR world. By the numbers 5 The number of days at which employers typically cap PTO conversion and purchase programs, according to a Goldman Sachs Ayco report. 34% The percentage of CEOs who expect a reduction in their workforce during the next 12 months, according to a report from The Conference Board. 5 The number of recent lawsuits alleging age bias that Ikea agreed to settle, according to recent court documents. 45% The percentage of workers who said they've used banned AI tools at work, according to a report from Anagram, a security training company. $30 million The amount of funding the U.S. Department of Labor will provide to the Industry-Driven Skills Training Fund grant program to help address critical workforce shortages nationwide. Recommended Reading MIT: Automation has tanked wages in manufacturing, clerical work Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 hours ago
- Yahoo
CEOs accuse Australian treasurer of failing vital sector with $896 billion link to economy
Dozens of CEOs and policy leaders from around Australia are preparing to meet on Friday, amid concerns that Treasurer Jim Chalmers' upcoming Economic Reform Roundtable will fail to adequately include representations from a sector that represents an area worth $896 billion a year. The talks will be convened by the Australian Land Conservation Alliance (ALCA), the peak national body that manages and restores nature on private land, and focus on how the environment creates economic benefits. Australia is heavily dependent on natural resources, including energy, mining, fishing, agriculture, and tourism, and participants will discuss safeguarding the economic growth of industries like these for future generations. ALCA CEO Jody Gunn told Yahoo Finance clean water, fertile soil and pollination are essential for productive agricultural supply chains. RELATED Push for four-day work week to become reality for all Australians RBA interest rate cut provides 'breathing room' for millions Commonwealth Bank's $8 billion cash boost for 13 million people While healthy ecosystems help protect the nation from natural disasters like flooding, storms, bushfires and erosion — threats that are creating a multibillion-dollar gap in the ability of the insurance industry to protect businesses and homes. 'Damage to nature is a financial risk,' she said. "But in terms of nature contributing to the economy, we're talking about thousands of land managers, rangers, landholders and farmers. "The work they do benefits remote and regional economies." Other urban outdoor sectors, like construction, will also be impacted as the nation's weather patterns are altered by climate change. To keep its workers safe, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) has a policy of stopping work when the temperature reaches 35 degrees, which keeps workers safe but also impacts productivity. Collapsing ecosystems threaten tourism jobs and affordable food The Treasurer's Roundtable beginning on Tuesday will focus on long-term economic reform, especially resilience, productivity and budget sustainability. Other ministers in the Albanese Government have held separate talks with industries associated with their portfolios, but nature-focused groups who spoke to Yahoo Finance were unaware of any being held on the environment. While Australian Climate and Biodiversity Foundation chair Ken Henry has been invited to the Roundtable, major environment advocacy groups argue their sector should be better represented alongside businesses, unions, politicians and regulators, noting around half the nation's GDP ($896 billion) is estimated to have a moderate to very high dependence on nature. The Australian Conservation Foundation made a submission to the Roundtable and will be included in a limited capacity, with its CEO Kelly O'Shanassy set to attend a half-day session on smarter regulation. It's during these talks that she suspects there will be discussions about changes to Australia's threatened species protection laws, the Environment Protection and Biodiversity Conservation Act (EPBC). Independent analysis dating back to the Morrison government has highlighted that nature and sectors like housing development, mining and agriculture are being negatively impacted by these quarter-century-old regulations, and the Albanese government has promised to reform them. Speaking with Yahoo Finance, O'Shanassy said she is concerned about the lack of environment organisations invited to take part in the talks. She believes there has long been an economic assumption that nature will always keep producing, but groups like hers know the 'clear reality" is that nature is collapsing. 'The 19 critical ecosystems in Australia are collapsing, including the Great Barrier Reef which supports 64,000 jobs, the Murray-Darling Basin, which produces more than 30 per cent of Australia's food,' she said. 'If you think that nature and the economy aren't related, then we're in a lot of trouble. "We can have a thriving economy and thriving nature, or you can have neither. That's the choice, and you need to build that into economic thinking.' Why environmentalists are embracing economic thinking The alternate talks will feature close to 30 leaders from other environment organisations including Australian Wildlife Conservancy (AWC), WWF-Australia, Landcare Australia, Odonata Foundation, Invasive Species Council and the Biodiversity Council. Together they will prepare a multi-page communique that will be sent to the Treasurer ahead of his Roundtable, with a focus on reforming the economy to safeguard nature-based productivity. AWC CEO Tim Allard doesn't think it's entirely the fault of economists that they haven't understood the crucial role nature plays in Australia's prosperity. Despite all the good work that environment groups have done, biodiversity across the nation is in decline. 'We've got to change how we do it," he told Yahoo Finance. "To keep doing the same thing and hoping for a different outcome is the definition of foolishness. "We've got to find a way to change the dynamic, to change the language that we're using, so those on the other side of the table start to see an opportunity to engage." There's been a major change in world thinking on the environment since Donald Trump was elected as US President, promising to 'drill baby drill' and expand fossil fuel extraction and deprioritise renewable energy. In Australia, the world's second-largest exporter of coal and liquefied natural gas, new carbon-polluting projects continue to be approved by the government. Allard is of the opinion that in the current climate it will pay to talk about the environment, not from a social perspective, but in economic terms. 'Environmentalist groups tend to take a preachy approach and yell at people about what needs to be done,' he said. "But we've got to get much smarter and start to talk in the language that the treasurer, bureaucrats, and decision-makers are going to understand." The offices of Treasurer Jim Chalmers and Environment Minister Murray Watt have been contacted for comment. Love Australia's weird and wonderful environment? 🐊🦘😳 Get our new newsletter showcasing the week's best stories. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
6 hours ago
- Yahoo
From $500 to $100 Million: Warren Buffett Would ‘Rather Wrestle Grizzlies' Than Compete With This Russian Immigrant Turned Millionaire
When Warren Buffett devoted a substantial section of his 1983 Berkshire Hathaway (BRK.B) (BRK.A) shareholder letter to the story of Rose Blumkin — better known as 'Mrs. B' — he wasn't just celebrating the company's purchase of Nebraska Furniture Mart. He was telling the business world that some of the most enduring competitive advantages are forged not in corporate boardrooms, but in grit, frugality, and an obsession with customer value. It's a tale that remains as relevant to modern investors and entrepreneurs as it was four decades ago. The story exemplifies just what it is that Buffett looks for in an acquisition and in a business leader, and can help investors understand what they should look for when investing in a company. More News from Barchart UnitedHealth Stock Soars as Warren Buffett's Berkshire Hathaway Discloses $1.57B Stake Palantir CEO Alex Karp Sees More Gains Ahead With America-Focused Growth Strategy, Calls U.S. The 'Leader of the Free World' Lucid Motors Is Caught in a Tariff Trap. Is LCID Stock More Likely to Hit $1 or $7 in 2025? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! The Immigrant Who Outworked Everyone In 1917, at just 23 years old, Rose Blumkin talked her way past a border guard to escape Russia and start a new life in America. She had no formal education, didn't speak English, and began with nothing. By 1937, after years of selling used clothing, she saved $500 — enough to open her dream business: Nebraska Furniture Mart. Facing entrenched, well-capitalized competitors, she relied on unconventional tactics: radical frugality, relentless price competition, and legal resilience. When cash ran out early on, she sold furniture and appliances from her own home to pay creditors in full. Rose constantly undercut competitors so dramatically that they tried to block her supply lines, pressuring manufacturers not to sell to her. When she was dragged into court for allegedly 'violating Fair Trade laws,' she won every case, and even sold the judge $1,400 worth of carpet after proving her pricing worked. By the early 1980s, her single store was generating over $100 million in annual sales — outselling all competitors in Omaha combined. Why Buffett Couldn't Resist Buffett famously said, 'I'd rather wrestle grizzlies than compete with Mrs. B.' From his perspective, Nebraska Furniture Mart had the trifecta of business excellence: Savvy purchasing: sourcing inventory better and cheaper than competitors. Lean operations: expense ratios so low that rivals couldn't imagine them. Customer loyalty: passing on savings instead of padding margins. It was, in Buffett's words, 'the ideal business — one built upon exceptional value to the customer that in turn translates into exceptional economics for its owners.' Buffett purchased 90% of the business in 1983, leaving family members in key management roles. Mrs. B, then 90 years old, kept showing up seven days a week to personally sell carpet. Lessons for Modern-Day Entrepreneurs While the business world has shifted from brick-and-mortar showrooms to e-commerce platforms and digital-first marketing, Mrs. B's principles remain timeless: Obsess over value, not hype: In an era of viral brands and influencer marketing, sustainable growth still depends on giving customers more than they expect for the price they pay. Operate lean: Venture-backed startups often burn through capital chasing scale, but Mrs. B's model shows how low overhead and disciplined purchasing can create enduring competitive moats. Play the long game: Mrs. B fought legal battles, endured supplier pushback, and navigated multiple economic downturns, yet never compromised on her value proposition. Lead from the floor: Even as an owner, she remained deeply involved in sales, reinforcing company culture through example. Lessons for Modern-Day Investors Mrs. B's story also speaks to investors looking for the next great compounder. Buffett didn't buy Nebraska Furniture Mart for its short-term profits; he bought it for its unbeatable market position and operational culture. The story is the moat. They grew because people loved the business, and people loved the business because they always strived to do right by their customers. Integrity, discipline, and customer-first thinking matter as much as — if not more than — the financial statements. Buffett notes that capital allocation in a bad industry is like 'struggling in quicksand.' In other words, even a great operator can be dragged down if the sector is fundamentally flawed. People need furniture now just as much as they needed it 100 years ago, and just as much as they will need it in 100 years. Recognizing a moat is crucial. The store's cost advantages and buying power made it difficult, if not impossible, for competitors to win customers without losing money. This means Mrs. B was going to be the leader in the area, and nobody around could change that. Why the Story Still Matters in 2025 In a global economy dominated by online retail giants like Amazon (AMZN) and fast-scaling disruptors in every sector, Mrs. B's example is a reminder that moats are built in the details: buying better, spending less, and treating customers better than anyone else. Whether you're a startup founder in fintech or a private equity investor looking for durable businesses, the lesson is clear: find — or build — the Mrs. B of your industry, and you'll have a business worth owning for decades. Buffett bought into Nebraska Furniture Mart for one reason: he recognized a business so good that price almost didn't matter. For modern investors and entrepreneurs, the challenge — and opportunity — is to recognize the next Mrs. B before everyone else does On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data