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Performance Management: 5 Steps Every Business Needs

Filed Under: Business Update, Career Planning, Change management, Culture, External HR Support, HR essentials, Leadership, Media Appearances, Succession Management, Workforce

Performance management is the topic most managers dread. But when it’s done right, it’s one of the most powerful tools you have. 

 

The goal of performance management isn’t to build a paper trail for termination. It’s to help people do their best work and to address problems early, before they become serious. Most  businesses either avoid it entirely — hoping problems resolve themselves — or jump to formal processes too late.
Here’s a straightforward five-step framework:

 

Step 1. Be clear about expectations from the start 

You cannot manage performance against expectations that were never clearly communicated. Every role needs clear KPIs, responsibilities, and standards. If yours don’t have them, that’s your starting point.

 

Step 2. Have regular one-on-ones

Performance issues rarely emerge overnight. They develop over time — and regular check-ins allow you to catch early signs, give real-time feedback, and maintain the relationship that makes difficult conversations easier.

 

Step 3. Address issues early and informally 

When you notice a performance concern, address it quickly and informally first. A brief, direct conversation — “I’ve noticed this, I want to understand what’s happening” — is far more effective than letting it build until a formal process is required.

 

Step 4. Document what matters 

If a performance issue is ongoing, start keeping brief notes. Date, what was observed, what was discussed, what was agreed. This isn’t about catching someone out — it’s about creating a clear record that protects both of you.

 

Step 5. Move to a formal process when informal hasn’t worked

A formal performance improvement plan (PIP) should be used when informal conversations haven’t produced improvement. It should be clear, time-bound, specific, and — critically — include genuine support for the person to succeed.
The Fair Work Act has specific requirements around procedural fairness. Get the process right, and you protect the business. Get it wrong, and a

 

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