Someone's not performing - now what?

Happy Spring Day to everyone in South Africa! Seems like we blinked, and winter is over. One of the joys of living here - a blissfully short cold season :-)

So today’s letter is about performance management. The less sexy side of our roles as managers of teams... Get your tall cappuccino and lets dive in!

Managing team performance is tough.

You have to contend with:

Unprecedented rate of change - The digital age is bringing change faster than ever before thanks to the advancements and accessibility of technologies like AI and Cloud.

Evolving working environments - Remote/Hybrid working is making it increasingly difficult to connect with your team.

Generational workforce differences - Baby Boomers, Gen X, Millennials, and Gen Z—each have distinct values, work styles, and expectations.

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Jokes aside, a standardized one-size fits all way of managing performance might work, but will it get you optimal performance?

Unlikely.

A better approach lies in the awareness of various styles/methods of performance management, and tailoring to your team members.

But what are these?

Let’s take a look at 5 of the most common methods, and briefly compare and critique:

1. Traditional Performance Appraisals

Effectiveness: ★★☆☆☆

Overview: these are your formal reviews that happen once or twice a year. Your manager sits down with you to discuss how you’ve performed against set goals, and this leads to ratings, feedback, and talks about your raise or promotion.

Pros:

Structured Process - this is a clear, structured approach to performance management, which is simple enough to implement and govern.

Cons:

Infrequency - in a digital age where work environments and job roles evolve rapidly, annual or biannual reviews are too infrequent to be effective.

Stressful and Outdated - The formal, one-size-fits-all nature of traditional appraisals may not resonate with the more fluid and collaborative work styles that you find in hybrid work settings.

Overall Rating: 2/5
Less effective in a fast-moving, hybrid work environment where continuous feedback and adaptability are more valuable.

2. Management by Objectives (MBO)

Effectiveness: ★★★☆☆

Overview: Management by Objectives involves setting specific, measurable goals that employees are expected to achieve within a set timeframe. The focus is on delivery - aligning individual objectives with broader organizational goals.

Pros:

• Clear Goals - highly effective in aligning individual contributions with organizational goals. This is essential in the digital age where teams may be dispersed across the world.

Cons:

• Rigidity - the focus on specific objectives may not accommodate the flexibility required in rapidly changing environments.

• Short-Term Focus - can encourage a focus on short-term goals at the expense of long-term innovation and growth.

Overall Rating: 3/5
Effective for goal alignment but may need more flexibility to adapt to the fast-paced digital environment.

3. 360-Degree Feedback

Effectiveness: ★★★☆☆

Overview: the 360-degree feedback approach involves gathering performance feedback from a variety of sources, including your peers, subordinates, and even customers, in addition to your manager’s assessment. It aims to provide a well-rounded perspective on your performance.

Pros:

• Holistic Insight - 360-degree feedback can provide valuable insights from various perspectives, reducing the risk of a siloed or narrow performance assessment by your manager.

• Promotes Collaboration - knowing that stakeholders will be providing input into your performance encourages open communication and accountability across distributed teams.

Cons:

• Complex and time consuming - managing and synthesizing feedback from multiple sources can be challenging, especially in hybrid teams.

• Potential for Conflict - the digital format might lead to misinterpretations or conflicts, particularly if feedback isn’t delivered with care.

Overall Rating: 3/5
Useful for gaining varied insights, but can be complex to manage in a hybrid work environment.

4. Continuous Performance Management

Effectiveness: ★★★★☆

Overview: Continuous performance management shifts the focus from periodic reviews to ongoing, real-time feedback and development. This strategy involves regular check-ins, goal adjustments, and continuous dialogue between managers and employees.

Pros:

• Real-Time Feedback - continuous performance management is highly effective in a digital age where rapid changes require agile responses. Regular check-ins and real-time feedback help teams stay aligned and adaptable.

• Flexibility - this approach supports hybrid work by maintaining ongoing communication and allowing for adjustments based on feedback.

Cons:

• Time-Consuming - requires consistent effort and can be resource-intensive for managers.

• Risk of Overload - without careful management and delivery, continuous feedback can become overwhelming.

Overall Rating: 4/5
Best suited for dynamic environments where adaptability and ongoing development are key.

5. Intrinsic Motivation and Empowerment

Effectiveness: ★★★★★

Overview: This approach focuses on fostering intrinsic motivation by giving employees autonomy, opportunities for mastery, and a sense of purpose in their work. Instead of relying on external rewards, the emphasis is on creating a fulfilling and empowering work environment.

Pros:

• Sustainable Engagement - intrinsic motivation is needed in hybrid and remote work settings where employees may feel isolated. Focusing on purpose, autonomy, and mastery keeps employees motivated and engaged.

• Adaptability - encourages ownership, self-driven learning and adaptability, which are essential with the current pace of change.

Cons:

• Requires Strong Leadership - managers need to be skilled in emotional intelligence and trust-building.

• Variable Impact - may not work equally well for all employees, requiring a tailored approach.

Overall Rating: 5/5
Highly effective in fostering long-term engagement and adaptability, especially in hybrid work settings.

Cross generational teams

In today’s workforce, teams are often composed of multiple generations—Baby Boomers, Gen X, Millennials, and Gen Z.

Each has their own distinct values, work styles, and expectations.

This diversity brings both opportunities and challenges when it comes to managing performance.

Younger generations like Millennials and Gen Z tend want continuous feedback, purpose-driven work, and autonomy. They thrive in environments where they can be empowered and develop mastery, making #5 Intrinsic Motivation and #4 Continuous Performance Management highly effective for them.

Older generations such as Baby Boomers and Gen X want more structured approaches like #2 Management by Objectives and #1 Traditional Performance Appraisals, as these align with their experience of clear goal-setting and formal recognition.

Managing a cross-generational team is about balancing different needs. Some thrive on real-time feedback, others prefer clear goals. Mix these approaches to create a team that’s both inclusive and high-performing. Adapt your style to meet each generation’s preferences.

What about dealing with poor/good performers?

You need to use your own recipe of the above 5 methods, depending on what you want to achieve, and the person:

Not meeting expectations (#2, #4) - you need to understand + address the reasons for poor performance and measure progress. Is it their ability or motivation? Are they improving, stagnant or declining? A heavier focus on MBO and regular check-ins here.

Meets expectations (#5, #3) - there is reliable delivery, and you want to move this person to exceeds. Try to understand what drives them, and how you can leverage that to better align their role and responsibilities to their intrinsic motivators and strengths. Collect 360 feedback from their key stakeholders to see where there are opportunities to improve and possible blind spots that they can address.

Exceeds expectations (#1, #5) - this person is a rising star/diamond. You need to stretch them to grow and shine more. Use #1 to allocate big projects or stretch goals with a longer timeframe. This will give them an opportunity and autonomy to have a greater impact. Use #5 to understand their drivers more deeply - chances are there is already a strong role-strengths fit, but don’t take it for granted. This is a potential star whose impact you are responsible for maximizing and unleashing in the organization.

Conclusion

Managing performance of your team members well requires careful thought and application.

The rewards are a greater probability of high performance of individuals, the team, and also you (the manager accountable for the team’s results).

By studying the various methods, your team members, and the context at hand, you can tailor your approach for the best results.

By the same token, leaving performance of each team member to chance will increase the risk of not getting the best out of them, and thus the risk of you performing poorly as a manager yourself….

Thanks for joining me today folks - have a great weekend and see you in next month’s newsletter! ☕️