Why CEOs Keep Low Performers Too Long

"I know I should let them go, but I just can't bring myself to do it."

Every leader has faced this dilemma.

Too often they put it off. They wait until the next annual performance review.

 All while the underperforming team member is slowing down their top performers.

Given how much companies value high performance, you'd think performance reviews would happen more regularly.

Yet most companies do performance reviews once a year.

Once a year?!

Here are a few reasons why we make performance reviews slower and harder than they need to be:

1) We insist on getting feedback from all team members.

While 360-degree feedback can be useful, it multiplies complexity by up to 10X. You get 80% of the value from your own perception as a manager in under 20% of the time.

2) We require qualitative feedback for everyone.

We ask everyone to write text reviews about their colleagues. Most people dread this process and avoid writing what they really feel to avoid conflict.

3) We apply the same process for top performers and low performers.

We design performance reviews as a one-size-fits-all process. Yet top performers and under-performers don’t need the same approach.

When the process is time-consuming and hated by all, it’s no surprise it happens so rarely.

That’s why I created a system to help you address underperformance faster and with less emotional friction.

There are three quick steps:

Step 1: Partner with Your EA (or a member of your support team)

Ask your EA to ask you one simple question about each of your direct reports:

"Are they below expectations, meeting expectations, or exceeding expectations?"

No long forms—just a quick gut check that takes 1-2 minutes to complete for the whole team.

Then, have them repeat this process at the beginning of every month and save your answers in a spreadsheet.

Step 2: Create an Algorithm

Establish simple rules based on the monthly assessments.

Your EA  can automate the rules and set up the appropriate meetings to ensure you follow through:

• If someone is below expectations for a month: Schedule a 25-minute call to outline the areas where improvement is needed.
• If they’re below expectations for two consecutive months: Book a 45-minute call to set a clear boundary: “If X doesn’t happen by next month, I’ll have to Y.”
• If they’re below expectations for three consecutive months: Make a decision: either commit 1-2 hours every week to work closely with them, or let them go.
• If someone exceeds expectations for three consecutive months: Book a 25-minute call to discuss an early promotion with additional responsibilities.

Your EA books the meetings based on the scores.

That way, it doesn’t rely on your willpower to have the hard conversations.

Step 3: Use AI to Craft Your Message

Finding the right words can be tough.

At least, it used to be.

Now you can enter raw observations into ChatGPT and let it craft a constructive way to deliver feedback.

It’s less stressful and more effective.

Don't Let Inaction Hold Back Your Team.

Holding on to under-performers doesn’t just impact you—it affects your entire team’s dynamic.

Your team deserves clear communication and decisive leadership.

Set up these mini-reviews every month, and hold yourself accountable for your team's performance.