More than half of senior executives, six out of 10, report their own teams are underperforming and team size may be to blame, according to the inaugural ThinkWise 2015 Impact of Team Performance Survey report released today.

The report found smaller organizations have teams that perform better than midsize and larger organizations. More than half, 52%, of respondents from smaller organizations rate their team as achieving its potential, compared to 35% of senior executives from midsize organizations and 39% of respondents from large organizations. The least optimistic team leaders work at midsize organizations.

Across company sizes, teams with fewer than 10 people are performing better, with 50% performing at full potential compared to 36% of teams with 10 to 50 people, according to the report. This compares with 14% of teams with more than 50 people that are performing at their potential. The report also found teams at smaller organizations are 13% more likely to perform well than those at midsize and larger companies, indicating the smaller the team and company, the better the team performance.

“With many modes of communication, the number of remote employees on the rise and an always connected environment, the modern workplace is full of distractions and presents an environment that inherently holds obstacles for teams to reach their highest-performing potential,” said Steve Griffin, VP of strategy and consulting for ThinkWise. “When organizational leadership truly embraces the makeup and function of highly effective teams, the impact on the business is phenomenal. Efficiency and profitability skyrocket, and their performance causes ripple effects throughout every area of the organization, including culture and retention.”

Senior executives surveyed reported the way teams are built plays a significant role in their ability to perform to their potential. Two-thirds, 63%, of respondents identified self-selected teams — meaning members who choose the team they join — as the best-performing teams. However, only 11% of these same executives currently use this approach.

The survey included more than 100 US business owners, C-level executives, VP and director-level team leaders. It was conducted online from April 15 to May 7, 2015.