The Question

Ever wondered why some small teams consistently outperform industry giants?

It’s not because they have more resources; they don’t. And it’s not because they’re smarter, big companies hire brilliant people, too.

The advantage small teams have is cultural. They’re faster, closer, more adaptable. They can surface issues, adjust in real-time, and hold each other accountable in ways that bloated organizations can’t. But that advantage only works if leaders create the conditions for honesty and trust.

And here’s the uncomfortable truth: most small teams still waste that advantage. They fall into the same traps as the giants: silence, forced optimism, rigid structures, and end up playing a game they can’t win.

So what actually separates the small teams that punch above their weight from the ones that get crushed? That’s where we need to look deeper.

The Research 🔍

When small teams take on giants, the outcome often seems improbable — but the data tells us it isn’t.

A landmark study published in Nature analyzed more than 65 million scientific papers, patents, and software projects. The pattern was striking: large teams tend to refine existing ideas, while small teams are far more likely to generate disruptive ones, work that shifts direction rather than extends the status quo.

Other research shows that smaller groups maintain stronger commitment and clearer accountability. Larger groups often suffer from diffusion of responsibility; people assume someone else will step up or hide behind layers of process. In smaller teams, there’s nowhere to hide; everyone’s fingerprints are on the outcome, which drives sharper ownership and faster alignment.

Finally, studies show that team size shapes how people actually work together. Smaller teams communicate more directly and build stronger relationships, which keeps alignment tight and momentum high. Bigger teams, on the other hand, rely on formal structures that slow things down and water down honest dialogue, the very things that make small teams unbeatable in speed and adaptability

Small teams don’t win because they’re smarter or richer; they win because of how they think, commit, and act. The challenge for leaders is whether they amplify that edge or let it erode into the same bureaucracy and groupthink that slows the giants down.

Some Advice 💬

Knowing that small teams hold this potential isn’t enough. You need to build around it. Here’s how I suggest you do that:

1. Lead as a multiplier, not just as a driver. Because your behaviour radiates at scale in a small team, your self-awareness, humility, and adaptability matter more than ever. Authentic leaders who admit flaws, ask questions, and trust their people unlock leverage others can’t.

2. Design clarity into your team mechanics. Smaller teams shouldn’t slip into chaos or ambiguity. Use regular rituals (check-ins, pause-for-questions, feedback loops) to keep alignment tight. Every member should understand how their work contributes to the mission.

3. Play the strategy no one else wants. Giants can’t move fast. They can’t iterate without layers. Use that. Focus narrow, test aggressively, and explore corners of the market they ignore. Don’t try to beat them at their game, pick a different one.

4. Protect your culture from mimicry. As you grow, you’ll feel pressure to adopt the norms of “big companies”, more structure, more processes, more “control.” Resist that instinct. Keep what makes you nimble alive: openness, ownership, fast feedback, and experimentation. Keep your superpower.

But principles on paper don’t win against giants, practice does. That’s why I recommend running what I call the Underdog Audit:

1. Audit the leader.

Start with yourself. Under pressure, do you default to control, avoidance, or presence? The leaders who give their teams an edge aren’t the ones who demand perfection or disappear when things get messy. They are the ones who set a clear standard of values, admit when they don’t have the answer, and create an environment where people feel safe to speak up and take risks. They balance intensity with humility, pushing hard when needed but also stepping back to let their teams own the moment. Your behaviour is contagious. If you lead with trust, openness, and clarity, your team will mirror it. If you lead with fear or silence, they’ll mirror that too.

2. Audit the team.
In your next meeting, ask one simple question: “What’s something we’re not talking about that we should be?” Then stay silent and let them answer. If no one speaks, you’ve uncovered a bigger issue: a lack of safety or ownership. A strong team advantage comes from candour: the ability to surface tensions, share half-baked ideas, and challenge assumptions without fear. If everyone is nodding in agreement but the real conversations are happening in the hallway or Slack channel afterward, you’re not accessing the full potential of your people. The most effective small teams make room for uncomfortable truths in the room, because that honesty is what allows them to move fast together.

3. Audit the strategy.
Finally, look at how decisions get made. Track the time from idea to action. If your team is moving slower than the giant you’re competing with, you’ve already lost the edge. Giants drown in approvals; small teams don’t have to. Your advantage is speed, testing, and iteration: if you bog yourself down with layers, you’ve started playing the wrong game.

The Underdog Audit doesn’t take long, but it’s revealing. It shows whether you’re leaning into the strengths of being small, or just carrying the weaknesses of being big in a smaller package.

Parting Thoughts 💭

Small teams don’t automatically win. They win when the leader shows up with emotional intelligence, the team culture fosters safety and ownership, and the strategy leans into agility over scale.

The giants lose because they default to resources, hierarchy, and reputation. Small teams win because they rely on trust, speed, and adaptability.

So ask yourself: which of these three levers is your current edge, and which one have you been neglecting? Because if you’re not intentional, the giant doesn’t even need to beat you. You’ll beat yourself.

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