When you manage somebody who has been underperforming for a while, it becomes one of those hard conversation topics that you end up dancing around in your one-on-ones with them. You hint, you ask, and maybe you are not as direct as you should be in letting them know something seems wrong. You may get to the point where you go to your HR department for some guidance.

The most common tool an HR department will direct you toward is the PIP, or Performance Improvement Plan. 

I don’t know anyone who thinks a Performance Improvement Plan is a good thing. It’s dreaded by managers and employees alike. When someone is put on a PIP, they are put on notice that they are less than others in some way. It tells them they will be closely scrutinized and measured for up to 90 days. It tells them they are being punished. 

PIPs are often seen as a way for the company to protect itself with a paper trail should legal action be taken against them for releasing someone on a low-performance basis. At best, it is just a way for the company to feel like it tried to improve the situation in case they release the person.

Before you go there, however, I recommend you do some discovery work as to why there is a problem in the first place.

Performance issues can show up for all kinds of reasons. Perhaps someone is having a rough time in their life. Maybe there is an assignment for which they don’t have the support they need to succeed. Maybe they are in over their head and don’t have the knowledge or skill to fulfill the needs of their role or project. In many performance cases, when people are struggling, they are too fearful to let you know.

As a manager, part of your job is to be attuned to these times of struggle among staff members. There may be lines you are not allowed to cross. For instance, personal questions about what may be going on with them outside of work might be considered too invasive or even against policy. Asking someone if they need help can also trigger defensiveness and feelings of insufficiency. Performance is always a touchy subject to deal with, especially when you know someone is not reaching their full potential.

There is another way to handle these situations. I call it the Personal Impact Plan.

The Personal Impact Plan starts with fostering a sense of purpose. If someone has no drive toward a mission or vision, be it the company’s or their own, they will be less motivated to work. Within purpose, a person needs to have specific, measurable, and achievable goals. If someone just churns on work day after day, merely reacting to what comes at them, never being given the chance to own and be responsible for something of their own, they will disengage over time.

It is also your job as a manager to make sure your people are set up to succeed, and there are some considerations that you should reflect on. Figure out if the person has been set up to succeed in the first place. Is their job description clear on responsibilities and accountabilities? Are there concrete company and professional development goals the person is striving for? Are there expectations of the person outside the boundaries of time and capability? If they are not performing at a level deemed acceptable, answer these questions before launching the Personal Impact Plan process because you will be doing some work as well.

How to Build a Personal Impact Plan

The first thing you should do before setting up a Personal Impact Plan is to explain what it is and get the person’s agreement to participate. When you are dealing with performance improvement, it should be clear this is part of the intent. It should also be made clear that a Personal Impact Plan is not a punishment but rather an opportunity to find purpose and engage with more responsibility.

With the shared intent clear, use the following outline as a guide:

1. Define a purpose for being at the company. The person should find something in the company’s mission or at least something in their own career journey that provides a strong reason for being there.
2. Review and define their Role. A “Role” is different than a “Job Description” in that it applies to a specific set of responsibilities and accountabilities related to work being done at the moment. A job description is just a long list of things a person might be expected to do, and they may have gotten the job without even having the full list of desired capabilities in their job description. A Role is a subset of responsibilities and capabilities from a job description that is applied to a project or specific value-driven need in the company.
3. Define SMART goals. Within their Role, it is important to outline what is expected of them and get them to commit to it. SMART goals are Specific, Measurable, Achievable, Realistic, and Timebound. This is where you outline their accountability. In order to meet this accountability, they should be given the trust and autonomy to fulfill their commitments.
4. Encourage learning and personal achievement. As part of the Personal Impact Plan, consider that impact is not just achieved for the company. Impact should also be something a person experiences as part of a professional or personal development goal. If they need to pick up a new skill to be successful in their role, do what you can to support that. Give them time and, ideally, allocate some budget for training. Show appreciation when they accomplish their goals.
5. Make it a contract. Formalize the Personal Impact Plan as an agreement between you. It should be a living document with a start date that you can refer to as it progresses. Let the timebound nature of the defined goals dictate the length of time the plan will endure. This ensures that you are both operating on commitments and not just expectations.
6. Open a feedback loop. Ensure you provide an open door and supportive hand to them so they know that if they hit any barriers, they have a safe space and partner in you when it comes to getting past them.
7. Check in regularly. Maintain a weekly or, at the very least, bi-weekly cadence of check-ins. These meetings are about what they need, not what you need. You are checking in with them to ensure they feel supported and have what they need to succeed. If they are not on track to meet the goal(s) you have set together, figure out how to get back on track or revise the goal if circumstances have changed, and it turns out to be unrealistic.
8. Celebrate completion. When the goals of a Personal Impact Plan are achieved, you should both acknowledge the accomplishment and exchange appreciation. Areas of professional growth and impact should be shared with the team and the broader organization to recognize their achievement.

The main thing to remember is that when your employee is on a PIP, so are you. You both have a role in making it succeed.

Conclusion

There is no reason anyone should ever be put in the dehumanizing position of enduring a Performance Improvement Plan. It is the punitive version of the PIP. Most people on them feel like it is just a formality the company goes through before letting them go. 

The Personal Impact Plan is the supportive version of the PIP. Everyone wants to make an impact. When there are barriers like an unsupportive environment, missing knowledge or skill, or a lack of focus and purpose, you can help position them to overcome those barriers and give them a path to making an impact, both in their role and in themselves.

Who knows, if all goes well, your previously underachieving team member may even ask you to put them on another PIP!