Ever wonder if keeping that struggling team member is actually holding your entire company back? Recent studies show a shocking statistic: 47% of top performers leave companies that retain underperformers too long. It's time to get real about performance management.
Executive coach Carly Pepin breaks down the crucial elements every founder needs to know about managing team performance. The key? Start with crystal-clear metrics for every role. Even in early-stage companies where everyone wears multiple hats, each team member should own specific numbers. If everyone owns everything, nobody owns anything.
Before deciding whether to coach up or let go, examine these critical factors:
- Are they aligned with core values but struggling with specific skills?
- Do they show genuine engagement and desire to improve?
- Are the missing competencies truly teachable?
- Does your company have the time and resources to invest in development?
Remember: The smaller your company, the less runway you have for extended improvement plans. A ten-person startup can't afford a 90-day performance improvement plan for a key role. Sometimes you need to make the call in 30 days or less.
The most common mistake? Waiting too long to address issues. Whether coaching up or transitioning out, early action prevents bigger problems. Your job isn't to fix people—it's to build a high-performing team that can execute your vision.
Watch the Full Episode on Performance Management with expert Carly Pepin below:
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