The Truth About PIPs: A Leader’s Guide To Turning Things Around

The Truth About PIPs: A Leader’s Guide To Turning Things Around

Just utter the phrase, “Performance Improvement Plan,” and you will surely evoke a negative reaction from someone nearby. 

Employees typically view them as a final warning toward inevitable termination. Leaders frequently dread them as bureaucratic paperwork. HR doesn’t even like them, but it feels like a necessary evil. But what if the narrative were all wrong? A PIP, when used effectively, can transform underperformance into renewed success. The reason is that the PIP is a catalyst for pain, and without pain, there is no change. 

Without pain there is no change

Proactive Leadership Over Reactive Management

Leaders don’t wait until performance becomes a major problem before stepping in. Effective leaders proactively manage their team’s performance, offering clear standards, timely coaching, and consistent feedback. Conversely, reactive managers resort to paperwork as a last resort, often using a PIP simply to justify a decision they have been thinking about for months, if not years. 

Great leadership is focused on proactive performance improvement, not reactive paperwork

Recently, I coached a leader who found himself facing a PIP due to complacency and team underperformance. The company was concerned about his skills and motivation, so they opted for an external coach to help. Initially, he felt angry, frustrated, and inadequate.

However, the real issue wasn’t entirely a skill or will gap; it was his belief in himself and his ability to change the situation. Instead of letting the PIP define his career, he made the courageous decision to use it as an opportunity to grow.

Accountability Changes Behavior

Accountability is often misunderstood, seen as harmful rather than helpful. The reality is that accountability can positively shape behavior. Want proof?

Accountability is helpful, not harmful.

Think of driving down the highway: just seeing a police car immediately prompts you to hit the brake and check your speed. In a similar way, workplace accountability, when properly communicated and supported, can help individuals adopt winning behaviors.

This principle played out clearly in the story of the leader I coached. The external accountability provided by coaching pushed him to make courageous decisions, confront challenges, and stop avoiding difficult tasks. This accountability significantly improved his daily actions. A PIP can work the same.  If done well, the PIP provides built in accountability over a period of time. 

Patience Is Essential for Real Growth

The best leaders understand this, and instead of looking for immediate results, they seek the right inputs to determine if the outputs have a chance of changing. If and when a leader has a team member in a performance review, they are looking for three specific inputs: 

  • Are they showing consistent daily effort?

  • ‘Are they focusing on the most important activities?

  • Are they remaining open to coaching?

In the case of the leader I coached, his small courageous choices began to compound. Patience and consistent coaching enabled meaningful progress. Within three months, he successfully completed his PIP, and his team’s performance improved significantly.

People need time to develop, be patient if their effort, activity, and coachability are where they need to be.

Closing

A Performance Improvement Plan doesn’t have to be a negative experience. It doesn’t mean the employee has to like it or be excited about it.  However, by approaching it proactively, emphasizing accountability, and exercising patience, leaders can use PIPs effectively to encourage lasting improvement. Ultimately, leadership isn’t about paperwork; it’s about genuinely developing people to fulfill their potential.

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About the Author: John Eades is the CEO of LearnLoft and The Sales Infrastructure. He was named one of LinkedIn’s Top Voices. John is also the author of Building the Best: 8 Proven Leadership Principles to Elevate Others to Success. You can follow him on Instagram @johngeades.

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