Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here.
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Dear Readers,
In teaching a recurring series on effective coaching and my graduate class on managerial skills, the topic of coaching versus performance management comes up a lot. These are two different skills and approaches in working with team members. This article will address the best practices when an employee is not making a transition and you are losing faith that the person will be able to do what’s needed in the role.
Before moving to performance management, it is important to employ coaching strategies:
1. Coaching is important and necessary, but it is best used when you are still hopeful the team member is going to be able to make their shift. Coaching, when done well, involves both negative constructive feedback – i.e., noting the areas someone needs to change and the specific steps they need to take to do so, and positive constructive feedback – reinforcing strengths and good behaviors when team members do things right.
2. Coaching should involve a plan of action – the what, when, how and outcomes you expect from the team member. Ideally the team member is an active partner in creating this plan. When you have worked with someone for a while and they are not making any changes, or appearing to care or put in effort, then it is time for performance management.
When embarking upon a performance management process, be fair to your employee and consider any legal ramifications. Take the necessary steps to protect your firm.
The questions below are not meant to be used in place of working with an HR or legal professional in difficult situations; they are meant to provide management guidance when you enter this phase:
1. Do you have the right person in the right role, or are you asking someone who isn’t wired to do something well to make a change in their DNA? This is frequently the case when a manager changes a position or the position requirements on a team member. They may have had strengths for the prior role but they struggle to perform well under the new conditions. If the person is not wired to do complicated analytics and you move them into an analyst role whereby all they do is crunch numbers, you aren’t going to get the performance you expect. Be careful about this. Expecting someone to be something they are not causes many managers frustration.
2. Are the goals and objectives you have established clear and measurable for your team member? Sometimes in training we talk about the difference between a goal, and a SMART goal. It is often stunning to me how many managers need the reminder to establish and convey goals that are clearly defined. Just saying, “I need you to get better at follow-up,” isn’t going to help your team member improve. Let him or her know what exactly that looks like, when you are expecting the change to be made, and how you will measure their success.
3. Do you have a roadmap with milestones for both of you to use? Small wins can be important to someone on a management plan. Set reasonable expectations for changes in performance and check in on a regular basis to see what’s working and what’s not. You must let your employee know the consequences of not making the changes. Establish by when you need to see a new skill or change in attitude or behavior and what will happen if the results are not there. Part of good performance management is milestones, accountability and consequences. These need to be clear, in writing and discussed with the employee.
4. Are there established stakeholders who can provide feedback on the team member’s improvement or lack thereof? This one is a bit tricky because you don’t want colleagues and others within the firm to know you have an employee on a performance plan. This sort of firm gossip can be defeating to the employee and can cause a dip in morale, depending on who the individual is and how well regarded. However, it is generally a good practice to seek input from those who connect with this person and/or are dependent on their performance. Don’t share that you have the team member on a plan, but do say you want to ensure changes are being made and you value both their support of the person’s success, as well as insights on what’s working and what’s not.
5. When the milestones are missed, have you let the employee know they are in a precarious position? Do not sugar coat, do not avoid the discussion, do not pretend it will be better tomorrow. Address it. And be sure you put in writing what you have addressed and send it to your employee. A paper trail and record of emails sent is very important to show you were fair and balanced in dealing with this person.
6. Have you had a “what’s next for you?” conversation with the person? This takes skill so don’t do it if you are not the type of person who can pull it off. If you can, it is often useful to talk to the employee about what they are good at, what sort of role might be best for them and even if it isn’t in your company, where they might go next. I’ve seen many situations where an employee actually leaves feeling helped and supported as they move on to another position. It doesn’t have to end badly if you manage it well.
Be aware of your own style in interactions around performance management. Some people become overly aggressive because they don’t like to deal with this process, so they are quick and sometimes a bit mean, wanting to get it over with (think of anyone you know who was fired by a three-word text). Some are overly optimistic that the employee is going to change, and they give far more leeway than they should. They make it harder in the long run. Some are analytical and just want to review the numbers or the measurements and don’t want to actually engage with the person. This is a difficult process for both parties, manager and employee. Be sure you bring your highest possible level of emotional intelligence (EQ) to the situation.
Beverly Flaxington co-founded The Collaborative, a consulting firm devoted to business building for the financial services industry in 1995. The firm also founded and manages the Advisors Sales Academy. She is currently an adjunct professor at Suffolk University teaching undergraduate and graduate students Entrepreneurship and Leading Teams. Beverly is a Certified Professional Behavioral Analyst (CPBA) and Certified Professional Values Analyst (CPVA).
She has spent over 25 years in the investment industry and has been featured in Selling Power Magazine and quoted in hundreds of media outlets, including The Wall Street Journal, MSNBC.com, Investment News and Solutions Magazine for the FPA. She speaks frequently at investment industry conferences and is a speaker for the CFA Institute.
Read more articles by Beverly Flaxington
Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here.
