Performance Improvement Plans (PIPs) have long been touted as a tool to help employees correct course and meet expectations. On paper, they are structured frameworks designed to provide clarity, support, and growth opportunities. However, PIPs are often seen as thinly veiled termination notices—a way to build a legal cover for firing someone rather than a genuine attempt to foster improvement. While much attention has been given to how PIPs affect employees, it’s time to shift the spotlight and ask a critical question: What do PIPs reveal about management failures?
The reality is that a PIP isn’t just an indictment of an employee’s performance; it’s often a symptom of deeper systemic issues. Poor management, unclear expectations, and insufficient coaching are frequently at the root of the performance gaps that PIPs are meant to address. If we want to use PIPs as a tool for growth rather than a mechanism for dismissal, we need to rethink their role in performance management and hold managers as accountable as their teams.
PIPs Reflection on Management
When an employee is placed on a PIP, it’s worth asking: How did they get here? More often than not, the answer lies upstream. Managers are pivotal in setting expectations, providing feedback, and creating an environment where employees thrive. If an employee is struggling, it’s likely due to one or more of the following managerial shortcomings:
- Unclear Expectations: Employees can’t meet goals they don’t understand. When managers fail to define clear, measurable objectives, team members are left to operate in ambiguity, increasing the likelihood of underperformance.
- Inconsistent Feedback: Waiting until a formal review or a PIP to address performance issues is a hallmark of poor leadership. Regular, documented, constructive feedback is essential to keeping employees on track.
- Lack of Support: Employees need the right resources, training, and encouragement to succeed. When these are absent, even the most talented individuals can fall short.
Rather than focusing solely on the employee’s shortcomings, organizations should use PIPs to examine and address these management gaps. If managers are not equipping their teams for success, they should face their own accountability measures.
Using PIPs to Diagnose Systemic Issues
When a PIP is initiated, it should trigger a broader diagnostic process. Here are some key steps organizations can take to ensure PIPs serve as tools for improvement rather than termination:
- Conduct a Leadership Review: Evaluate the manager’s role before placing an employee on a PIP. Have they provided clear expectations, regular feedback, and adequate support? If not, the manager may need development as much as the employee.
- Evaluate Team Dynamics: Is the underperformance isolated, or are there patterns within the team? A high rate of PIPs in a single department often signals leadership or structural issues rather than individual failures.
- Examine Organizational Processes: Are systemic factors contributing to performance gaps, such as unclear policies, excessive workloads, or inadequate training? Addressing these can prevent future issues.
By using PIPs as a lens to identify and address systemic issues, organizations can create a culture of accountability that extends to every level, from front-line employees to top leadership.
The Case for Managerial Accountability
If PIPs are meant to drive improvement, shouldn’t they apply to everyone? Managers who consistently rely on PIPs to address performance issues in their teams should themselves be placed on a “Leadership Improvement Plan” (LIP). Such a plan would focus on:
- Setting clear and measurable team goals.
- Providing consistent and actionable feedback.
- Developing coaching and mentorship skills.
- Building a supportive and high-performing team environment.
By holding managers to the same accountability standards as their employees, organizations can foster a culture where everyone is committed to continuous improvement.
Shifting the Narrative Around PIPs
We need to change the narrative to rehabilitate the role of PIPs in performance management. Rather than being seen as punitive, PIPs reframe them as tools for mutual growth. Here’s how:
- Standards of Performance Policy: Develop a comprehensive policy that includes a standards of performance document for each role. This document should outline clear, measurable expectations and the steps to take when those expectations aren’t met, creating consistency and clarity across the organization.
- Standards of Performance: Develop a comprehensive performance document for each role. This document should outline clear, measurable expectations that align with the organization’s goals, ensuring employees and managers understand what success looks like.
- Transparency: Communicate the purpose of the PIP and the steps involved, ensuring that employees understand it as an opportunity for improvement.
- Support: Provide resources and coaching to help employees meet their goals, demonstrating a genuine commitment to success.
- Accountability for All: Use PIPs to evaluate and improve management, not just employee performance.
When used thoughtfully, PIPs can be a powerful tool for identifying and addressing individual and systemic issues. Organizations can ensure they manage performance and cultivate a culture of excellence by broadening their scope to include management accountability.
Performance Improvement Plans shouldn’t be a one-way street. If an employee’s underperformance is a sign of systemic or management failures, those failures need to be addressed with equal urgency. By rethinking the role of PIPs and holding managers accountable for their contributions to team performance, organizations can move beyond blame and build a culture where everyone has the opportunity to succeed.
