OTL Newsletter 7 - How to address low performers before they become a drain on your business.

Observation 🧐

For me, managing low performers out of the business is the part of leadership I like the least. 

Giving constructive feedback is hard, and official “Performance Management” is even more difficult. 

Here are the 3 reasons why I find this process so difficult. 

1. The Numbers Paradox

Quota attainment isn't everything. Some of your most problematic performers might be hitting their numbers but they're alienating team members. "Soft" performance issues can be challenging to quantify and document, making it difficult to build a clear case for improvement.

Moreover, when a salesperson is meeting basic metrics, they often struggle to acknowledge deeper performance issues. "But I'm hitting my numbers!" becomes a shield against addressing gaps. 

2. The Near Term Pain

Performance management requires meticulous documentation of conversations, coaching sessions, improvement plans, and follow-ups. This process can feel like a second job:

• Recording every informal feedback conversation
• Creating detailed performance improvement plans
• Documenting specific instances of behavior or performance issues
• Tracking progress against established goals
• Maintaining communication with HR and legal teams

If improvement is not made and you must manage someone out of your team, you will likely have to take over their responsibilities. Not to mention start the hiring process for a replacement. 

3. The Emotional Toll

Nobody signs up for sales leadership dreaming about the day they'll put someone on a performance plan. As leaders, we invest in our people's success, and acknowledging that someone isn't working out can feel like a personal failure. The process affects:

• The employee, who may feel threatened, defensive, or demoralized
• The manager, who must balance empathy with organizational needs
• The team, who often sense the tension and may feel uncertain about their own standing
• Client relationships that may be impacted during the transition

I’ve certainly improved in this regard over time and here are my tips if you find yourself going through this process.  

Best Practices for Navigating Performance Management:

1. Start Early, Stay Consistent

Don't wait for small issues to become big problems. Address concerns immediately through regular feedback sessions. This builds a clear record of performance discussions and gives the employee genuine opportunities to improve.

2. Focus on Observable Behaviors

Instead of using vague or subjective feedback, focus on specific behaviors and their impact. 

For Example:

Pipeline Management

❌ Don't say: "You're not organized enough with your pipeline." 

✅ Say: "In our last three pipeline reviews, 60% of your opportunities had outdated close dates and missing next steps. This makes it difficult to forecast accurately and provide you with proper support."

Team Collaboration

❌ Don't say: "You're not a team player." 

✅ Say: "During yesterday's deal review, you spoke over Sally and dismissed her suggestions without consideration. Additionally, you haven't attended the last two optional training sessions where team members share best practices."

Account Management

❌ Don't say: "You're not strategic enough with accounts." 

✅ Say: "In reviewing your top 5 accounts, I notice you haven't mapped key stakeholders beyond your primary contact, and there's no documented expansion strategy for Q3 and Q4."

3. Build a Support Network

Don't go it alone. Work closely with:

• HR partners who can guide you through the process and documentation requirements
• Your own manager for perspective and support
• Trusted peers who have managed similar situations

4. Maintain Professional Empathy

While the process requires firmness, it shouldn't lack humanity. Treat the employee with respect, provide clear paths to improvement when possible, and if separation becomes necessary, handle it with dignity.

Effective performance management isn't about building a case for termination – it's about clearly communicating expectations, providing opportunities for improvement, and ensuring fair treatment for all involved. 

Good leadership sometimes means making tough calls. Your job isn't to be liked – it's to build and maintain a high-performing team that drives results the right way.

Thought Starter  🤔

Low performers are a drag on your business and prevent you and the team from reaching your full potential. 

Imagine your ability to hit quota if everyone on your team was a top performer. The cost of complacency is paid by the Sales Managers. 

A McKinsey analysis of nearly 500 B2B companies found that those in the top quartile outpaced their peers in productivity—generating 2.6x higher gross margin than the bottom quartile for every dollar they are investing in sales.  

Love 🥰

I have been a long time fan of Kim Scott’s book Radical Candor, which gives lessons on how to create a positive work environment and achieve results. Great leaders “Care personally and challenge directly”.  It's possible to care about people while also expecting the best from them. PS - She has a podcast too!