The individual or the organization: Identifying the root of employee underperformance

For most professionals, performance management evokes thoughts of feedback, weekly check-in’s, annual reviews and key performance indicators that measure productivity, efficiency and ability. While these activities and outcomes are important, they do not provide a clear story about what causes an employee to underperform or what intervention is best for improving the employee’s performance.

Performance management is more than feedback and coaching

We’ve all seen managers jump into rescue mode and ask, “What do you need from me?” when presented with evidence that their direct report is not meeting expectations. Managers usually assume that with more internal support (more of their already limited time coupled with more touchpoints for feedback) their direct reports’ performance will improve.

Some managers jump straight to professional development offerings and recommend a course, a coach or a class. While the recommendations are well intentioned, performance management requires deeper investigation before recommending a solution. Most managers see coaching and constructive feedback as panaceas for poor performance, but the reality is much more complex.

Performance management is about ensuring the employee meets the organization’s goals. In order for managers to effectively address gaps in performance, they must start by asking four questions:

• Does my direct report have the information, abilities and attitude to be effective in their position?
• Have I made clear what tasks follow an established process vs. what tasks can be completed based on an employee’s preferences?
• Have I communicated objective measures of success in a specific task (completing a report) or in a situational context (leading a meeting or onboarding a client)?
• Am I aware of how my organization’s systems and processes impact my direct reports’ performance?

Find the root cause

Managers know that performance management is vital in keeping employees engaged and productive and keeping an organization profitable. They know this anecdotally (“people are the most important aspect of any high-performing organization”) and empirically (according to Gallup, disengaged employees have 37 percent higher absenteeism, 18 percent lower productivity and 15 percent lower profitability). Still, most managers don’t know how to uncover the root cause of an employee’s performance issue.

Let’s unpack the following four questions to understand the cause of your direct reports’ underperformance and which strategies will most effectively address their performance gap.

1:  Does my direct report have the information, abilities and attitude to be effective in their position?

The answer/root of performance obstacle: If the answer is no, then your employee has a gap in their knowledge, skills and attitude. These types of gaps occur because employees do not have the information or abilities necessary to do their job well.

To improve your direct reports performance, you need strategies that improve how they make decisions, strengthen or develop new skills or adjust their attitude toward a specific task.

To figure out which strategy, ask your direct report:

• Would you perform better if you learned a new interpersonal or technical skill?
  • If yes, consider a training or program that strengthens competency around a new or current skill set.
• Would you perform better if you had an opportunity to practice the skills you need more frequently?
  • If yes, consider a class or course that outlines direct action items that can be done on the job.
• Would you perform better if you had tailored individual support to help you improve your skills?
  • If yes, consider coaching so the specific obstacles can be uncovered and addressed.

2: Have I made clear what tasks follow an established process vs. what tasks can be completed based on an employee’s preferences?

The answer/root of performance obstacle: If the answer is no, then your employee is experiencing organizational incongruencies. This occurs when the individual’s ways of operating are at odds with the established system within the organization.

To improve your direct reports performance, you need strategies that ensure the organization is applying the same rules to everyone equally.

To figure out which strategy, ask your direct report:

• Would you perform better if the incentives and consequences were the same for all employees?
  • If yes, implement a performance-based reward system so that non-performance is not rewarded.
• Would you perform better if your current manager evaluated you the same way your previous manager did?
  • If yes, share your priorities and working style so they can better manage up.
• Would you perform better if you had the same mentor or onboarding experience as other colleagues in the same role?
  • If yes, have a conversation that addresses conflicting information. Sometimes colleagues share inaccurate information that encourages outdated behaviors or different approaches than what’s appropriate for the role.

3: Have I communicated objective measures of success in a specific task or in a situational context?

The answer/root of performance obstacle: If the answer is no, then your employee needs better feedback. This means improving the quality of information shared about the behaviors that define success.

To improve your direct reports performance, you need strategies that clearly delineate where they are performing a task incorrectly.

To figure out which strategy, ask your direct report:

• Would you perform better if you had clear, concrete expectations of success for all tasks?
  • If yes, your employee needs metrics associated with their tasks so they can better evaluate their success or shortcomings related to a specific task.
• Would you perform better if the task was outlined in a step-by-step manner?
  • If yes, document the process via a video or training manual the employee can reference.
• Would you perform better if you received more constructive feedback from your peers on your projects?
  • If yes, train all your employees in feedback so they can better collaborate and complete joint projects.

4: Am I aware of how my organization’s systems and processes impact my direct reports’ performance?

The answer/root of performance obstacle: If the answer is no, then your employees’ performance is being impacted by organizational obstacles. These are processes, policies or systems that impede quality and efficiency.

To improve your direct reports performance, you need strategies that acknowledge the “workarounds” they use to complete their tasks.

To figure out which strategy, ask your direct report:

• Would you perform better if you were interrupted less often by others?
  • If yes, encourage them to block time on their calendar so they can complete tasks without losing focus.
• Would you perform better if you didn’t have to wait for decisions from others before acting?
  • If yes, adjust the process so the person deciding is also the person delivering or setting deadlines that include the time it takes to receive an answer from the decision-maker.
• Would you perform better if you had updated technology?
  • If yes, evaluate how technology is being used to support workflows and implement systems that better align with employees’ daily activities and department goals.

The factors that encourage an excellent performance from an employee – their individual skills, internal network, manager and the organization’s systems – are the same culprits that cause poor performance. Knowing this helps managers understand that performance management is not only about empowering employees to do their job well; it’s about uncovering whether it’s the individual, the manager or the organization that inhibits the employee from doing their job.