This post was originally published in Spanish in Entrepreneur. You can find it here.

Internal competition within organizations can profoundly impact team dynamics and the achievement of long-term goals. A Harvard Business Review study highlights that in environments where recognition and rewards focus on individual performance, employees tend to view their peers as competitors rather than collaborators, weakening the bonds of trust that sustain a strong organizational culture. Diane Garza, CEO of iCatalyze, a leadership coaching and training firm, reinforces this perspective by emphasizing that trust and commitment to common goals are at the core of a successful team. When people can collaborate in an authentic and aligned manner, they not only achieve meaningful results but drive the sustainable success of the entire organization. This philosophy, focused on collective development, highlights how an organizational culture based on mutual support and shared success strengthens teams and facilitates the achievement of sustainable goals.

Internal Competition: A Challenge for Cohesion and Organizational Culture

This dynamic of individualistic competition affects employee morale and reduces the potential for effective collaboration. When teams prioritize individual achievements over shared goals, the opportunity to foster an environment of mutual learning is lost, harming innovation and long-term organizational growth. According to McKinsey & Company, organizations that foster a collaborative culture aligned with common goals can increase their performance by up to 20% at the organizational level, achieving greater effectiveness in achieving their strategic objectives.

Strategies to reduce internal competition and foster a collaborative culture

Diane Garza recommends the following strategies to reduce internal competition and foster a collaborative culture:

1. Set team goals and rewards: Companies that promote collective goals reinforce the idea that success is the product of joint effort. To maximize this impact, it is essential to involve team members in defining these goals since when they actively participate in their development, they experience a greater sense of ownership or belonging toward them. This participation increases commitment and makes it easier for all members to feel responsible for achieving the objectives. Strategies such as team bonuses, recognition at corporate events, and celebrations of shared achievements can be highly effective in reinforcing this message and cultivating an environment of collaboration and shared responsibility.

2. Recognizing individual contributions and their impact on the team: A 360° evaluation system, which integrates feedback from peers and supervisors, is essential to recognizing each member’s value in the team context. This fosters a comprehensive view of performance and motivates employees to actively contribute to group achievements.

3. Promoting transparency and open communication: Communication is key to reducing negative competition. Creating a work environment where everyone knows their roles and responsibilities allows for team problem-solving and facilitates collaboration.

4. Collaborative leadership training: Training leaders in collaborative practices is a strategic investment. Leadership that balances individual and group recognition creates a space where feedback and mutual support are valued, essential for building a culture geared toward shared success. Garza emphasizes that committed leadership maximizes the team’s professional and personal potential, strengthening collaboration and wellbeing.

From Individualism to Collective Success

While it can drive short-term results, internal competition diverts organizations from their long-term goals. Implementing strategies that promote collaboration and collective success allows for building a work environment where individual and group performance mutually reinforce each other, benefiting talent retention and increasing employee satisfaction.