How Leaders Build High Performing Teams

Monica Pleasant, HR Director, Medtronic

Think back to the last time you received feedback from a leader. Did it inspire you to take action, or leave you second-guessing yourself? Most of us can recall moments when a few clear, encouraging words gave us the confidence to move forward. And we can just as easily remember when ambiguous or overly critical comments did the opposite. Feedback isn’t just about performance reviews or course corrections; it’s one of the most powerful tools leaders have to build trust, engagement, and results.

Research proves this point. The Harvard Business Review, as cited in a 2025 AIHR article, reports that 72% of employees believe their performance would improve if they received more regular, constructive feedback. Gallup’s State of the Global Workplace found that companies with highly engaged teams see a 21% increase in profitability. These numbers tell a clear story: leadership communication and feedback directly shape employee performance, engagement, and retention. The difference lies in how feedback is delivered. Leaders who lean into coaching-based, “feedforward” approaches create teams that thrive, while those who rely on vague or negative criticism risk disengagement and diminished results.

Despite the evidence, use of constructive feedback remains stubbornly low.  Gallup’s State of the Global Workplace report showed that only about one in five employees is actively engaged at work, highlighting a significant performance gap. Leaders may speak about creating safe, growth-oriented cultures, but in practice, feedback often remains irregular, ambiguous, or overly focused on what went wrong. Without psychological safety, employees hesitate to take risks, speak up, or innovate because they fear criticism or negative consequences. The gap between leadership intention and employee experience continues to undermine both performance and retention.

Historically, feedback has been rooted in evaluation rather than empowerment. Annual performance reviews, still the norm in many organizations, often emphasize deficiencies while offering little actionable direction on how to succeed moving forward. According to Zenger/Folkman’s research, 92% of employees agree that negative feedback, when delivered appropriately, can improve performance, yet many leaders struggle to frame it constructively. By focusing on shortcomings rather than opportunities, organizations unintentionally create environments of fear and compliance instead of trust and growth. A coaching-based, feedforward approach, highlighting future possibilities, clear next steps, and encouragement, shifts the narrative, unlocking both motivation and results.

Generational expectations further shape how feedback and coaching are received. Baby Boomers and Gen X employees, having been raised in more hierarchical workplaces, may be more accustomed to corrective or top-down feedback. Millennials and Gen Z, however, are redefining workplace norms. Research shows that younger generations increasingly expect ongoing coaching, transparency, and growth opportunities over rigid evaluation. They value dialogue, recognition, and purpose-driven work, and they view feedback as a partnership. Leaders who can adapt to these evolving expectations, balancing structure with collaboration, are best positioned to foster cultures where every generation feels valued, supported, and equipped to thrive.

How Do We Get There?

To build a feedforward culture, start by making sure everyone’s goals are clear and connected to the bigger picture, keep coaching conversations positively focused so people feel safe to learn and grow, and pair recognition with real development opportunities. When you do these three things, feedback becomes motivating, actionable, and helps your team perform at its best.

“Leaders who can adapt to evolving expectations, balancing structure with collaboration, are best positioned to foster cultures where every generation feels valued, supported, and equipped to thrive”

1. Setting clear, measurable, and aligned goals ensures every team member understands priorities, success metrics, and how their work contributes to organizational objectives. Without clarity, even high-performing individuals can be misaligned, leading to wasted effort and disengagement. The GROW Coaching Model helps leaders translate organizational goals into actionable plans for employees:

• Define the Goal

• Assess the current Reality 

• Explore possible Options

• Commit to a concrete Will 

Leveraging the GROW in goal-setting sessions paints a clearer picture of how individual team members’ work drives impact on overall performance and success.

2. Ongoing, forward-focused coaching, paired with positive feedback, helps employees develop skills, solve problems, and stay motivated. Critical to this is fostering psychological safety, meaning employees must feel comfortable sharing ideas, taking risks, and learning from mistakes without fear of negative consequences. The GROW Model enables structured coaching conversations between leaders and employees, including:

• Identification of work/career goals

• Explore the current reality

• Generate solutions

• Commit to next steps

Organizations that embed coaching into daily routines report measurable engagement and retention gains. 

3. Consistent recognition and meaningful rewards do more than say “good job.” They spotlight the behaviors and results leaders want to see repeated while keeping morale high. When leaders pair acknowledgment with real career development opportunities, it signals to employees that their growth matters long-term, boosting loyalty and retention. Using the GROW Model, recognition becomes a conversation:

• Celebrate what was achieved (reality)

• Explore new possibilities and next milestones to achieve (options)

• Connect achievements to future career goals (goal)

This turns simple praise into a roadmap for growth, making employees feel valued, inspired, and invested in.

Great teams aren’t built by chance. They are built by leaders who are intentional about clarity, coaching, and recognition. When you set clear goals, coach with a forward focus, and pair recognition with real growth opportunities, you create a workplace where people feel seen, supported, and ready to give their best. Feedback becomes motivating, trust grows, and engagement and retention soars. The opportunity is yours: lead with clarity, coaching, and recognition, and watch your team rise.

review