This post will summarize my personal learnings for managing performance in both a distributed and non-distributed environment. I recently hosted a discussion on ‘Remote Performance Management’ with engineering and product leads at other companies (through Enrich) and these were some of the topics we covered.
Performance management in a distributed environment is very similar to working in person, except you need to rely more on measuring actual contribution, and more written communication.
It can be very draining for a team, and for managers in particular, to deal with performance issues on their teams. If these are not dealt with quickly, they can fester and affect the entire team. It is important to have a clear path to gather data, diagnose and solve for the productivity and for the ‘health’ of your team.
1. GATHER INFORMATION
Start by gathering data to figure out if there are performance issues.
Your Gut: Most of the time, you know if someone is performing well. Trust your gut and use it as the starting point. Write down examples of issues you observe in a document so you can spot repeated patterns. In a distributed environment, it can take longer to calibrate your gut – you can’t ‘feel’ the energy of a person or a team as easily, so you need to rely on the output of teams. The more teams work out in the open (public by default), the easier it is to understand their output.
Team: Ask for feedback from folks who interact with the person closely – peers, direct reports, other functions. This can be more casual or part of a broader discussion if you don’t want to cause ‘alarm’. You can also ask your HR rep to help gather feedback for you as well. 360 degree feedback tools are also really valuable for managers and teammates to give feedback on each other.
Data: Try and figure out objective measures of output – communication metrics (e.g. Slack stats, public posts and comments), projects delivered, GitHub commits can all help paint a picture of productivity. It’s important not to use these metrics as the starting point for performance management – they are simply a useful tool to help validate or invalidate hypotheses. If people feel like they are being ‘watched’ they will not like it, or try to game the system which is not where you want them to focus.
2. DIAGNOSE ISSUE
Once you have established there is a performance issue, the next step is to unpack the why behind the issue.
Capability vs. Effort : I start by trying to understand if there is a capability problem or a motivation problem and use this simple matrix. Folks who are high capability and effort should be rewarded, and folks who are low capability and effort should be transitioned out of the company quickly.
Manager / Team Fit: The individual may just not fit in well with the team culture or have a good rapport with their manager. Once a manager has ‘lost faith’ in someone on their team, it’s very hard to regain faith without a team switch.
Project Fit: The individual may not enjoy or be well suited to the type of work they are doing. This person might have a capability or effort issue, and in most cases this requires a move to a different role or to a different project.
3. IMPLEMENT CHANGES
Once you’ve diagnosed the issue, the next step is to figure out a path forward. Many new managers simply avoid having these hard conversations because they are awkward and can be difficult.
Communicate clearly: Communicate performance issues clearly with the individual and then lay out a clear path forward with areas for improvement and timelines. This step comes before a formal performance improvement plan (PIP) which is more serious to developmental feedback.
Termination: If you have reached the point of termination, then be clear, direct and kind. Schedule a short in person meeting or video call, and get straight to the point. Often HR is involved in this call, and at some companies they are responsible for this meeting.
Team / Role / Project switch: If the individual is new to the company and has performance issues, and you suspect they are in the wrong role, wrong project or have fit issues with their current manager or team then you should allow one switch to give the person another shot. If the performance issues are persistent, then they should be let go from the company.
Permission to leave: Often, an individual was the right fit for the company or for a role at a point in time but given the stage of the company’s growth, or a shift in the nature of the work this person may not be a good fit any more. As a manager, you can give this person the ‘permission to leave’ and they will be able to find a place outside your team or company where their skills are better suited. It’ll be better both for the individual and the company.