Performance Improvement Plan (PIP)
I have managed over 50 people in my career so far, and I have learned one thing: underperformance is situational.
I posted about 'how to manage under-performers a few months ago, check this out!
It depends on so many external factors that labelling somebody as an “under-performer” is limiting.
Even the most skilled or experienced person may struggle if they are going through a difficult time in their personal life.
Dealing with underperforming team members is one of the most challenging aspects of managing a sales team. It is crucial to address performance issues quickly and effectively to ensure your team’s and your organisation’s success.
To help team members succeed, a formal process needs to be in place.
One approach to managing underperformers is to implement a Performance Improvement Plan (PIP).
A PIP outlines specific performance goals and expectations for the employee, along with a timeline for improvement.
When implementing a PIP, it’s important to be clear and specific about the areas that need improvement and the steps the employee can take to achieve their goals.
Set achievable targets and provide the necessary resources and support to help the employee succeed. It’s also important to communicate regularly with the employee, providing feedback and guidance to help them stay on track.
Celebrate small wins along the way and recognise progress, even if it’s not perfect.
Before implementing a PIP, it’s important to give consistent and clear feedback on the areas that need improvement.
Support with KPIs, examples, and extensive coaching before putting someone on a PIP.
The process itself is time-consuming for both the leader and the affected employee. Having a template for the PIP process is crucial.
Include PIP as a formal process within your company handbook, along with promotion frameworks.
Usually, team members are put on a PIP after 1-2 quarters of consistent underperformance. For example, if an Account Executive is not hitting their goal or performing below a certain percentage threshold, they are likely to be placed on a PIP.
Remember to be formal and outline the process within the template.
Provide additional support and help during the process, such as running coaching sessions, joining meetings and sales calls, and showing team members how it’s done. It’s crucial to help your employee get through this, and you have to do it together.
Track all PIP meetings and communications in a single document, and have the events scheduled in both calendars throughout the period.
Try not to move or skip the meetings. Have a final PIP review one week before the end of the formal process. I used to use G-doc or a 1:1 tracking tool like Fellow.
The goal of a PIP is not to fire anyone but to recover someone who is struggling and put them back on track.
However, some processes may not end successfully, and the person may have to be let go. This outcome depends on the labour laws of your country.
Remember, managing underperformers is not easy, but it’s necessary for the health and success of your sales team. If you want a team of top performers you have to install a culture of performance.
Grab my template here below and start managing performance in the right way!
