Group efficacy is an emerging construct that has great potential for groups as it has been repeatedly linked to group performance. However, there has been little research on the antecedents of group efficacy or how it is developed. What factors lead to high group efficacy? What actions can be taken to foster it? What effect does group leadership have on its development? A study was designed to address these questions and to begin to identify how group efficacy is developed. Data analysis reveals a strong link between the informal leaders’ perceptions of efficacy and group-level measurements of efficacy. It is suggested that group efficacy perceptions are influenced by informal group leaders. Data analysis also reveals that this relationship is much stronger at the beginning of the group’s task than at the end of the group’s task. Implication of these findings and suggestions for future research are addressed.