Rethinking Performance Improvement

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In HR and talent management, Performance Improvement Plans (PIPs) have long been the standard approach to addressing performance issues. Ostensibly designed to help employees improve, PIPs often serve a different purpose: documenting poor performance as a prelude to termination.

Through my coaching work, I’ve found that by the time an employee is placed on a PIP, their fate is usually sealed. Rather than a tool for growth, PIPs frequently function as a bureaucratic step in a process that leads to an inevitable separation. Isn’t there a better way to approach performance challenges?

This post proposes a shift from PIPs to FIPs, or Feedback Improvement Plans—a more systemic, proactive approach that focuses on improving the feedback environment before performance deteriorates. By addressing feedback quality and frequency at the leadership level, FIPs create a culture of ongoing development rather than reactive discipline.

The Problem With PIPs

PIPs often serve as a formality rather than a genuine effort to support improvement. They tend to create a demotivating environment, in which employees feel targeted rather than guided, and they frequently overlook the root causes of performance issues. If improvement is possible, it rarely comes from being told to "do better" without meaningful support. By the time a PIP is introduced, earlier opportunities for feedback and course correction have already been missed.

What to Do Instead: Feedback Improvement Plans (FIPs)

FIPs offer a fundamentally different approach by focusing on:

• Leader Accountability: The responsibility for improvement shifts to managers, ensuring they enhance the frequency, quality, and effectiveness of their feedback.
• Proactive, Not Reactive Performance Management: Instead of waiting for performance to decline to the point of needing a PIP, FIPs emphasize continuous feedback, fostering a culture of growth and development.
• Constructive Communication: FIPs encourage candid, two-way conversations about what is working and what isn’t, promoting a more transparent and supportive work environment.

Implementing FIPs: A New Approach to Performance

A critical distinction of FIPs is that they place the responsibility for performance improvement on the manager, not just the employee. Instead of serving as a tool for documenting failure, a FIP is a commitment from the leader to invest in the employee’s development.

In a feedback-rich environment, employees receive timely guidance, making them more aware of their performance and how to improve. Meanwhile, managers gain real-time insights into an employee’s ability to adapt and develop, which will allow them to make critical hiring and firing decisions in a timely manner, rather than relying on delayed, high-stakes interventions.

By fostering ongoing dialogue, FIPs create a system where performance improvement happens organically, rather than being forced through a reactive process.

The Benefits of FIPs

Shifting from PIPs to FIPs offers multiple advantages:

• Higher Employee Engagement: Continuous feedback makes employees feel valued and understood, increasing motivation.
• Early Issue Identification: Regular feedback helps managers catch and address performance concerns before they escalate.
• Development Over Discipline: FIPs prioritize learning and growth, reducing the fear and stigma associated with performance management.
• Stronger Leader-Employee Relationships: Honest, frequent communication builds trust and transparency.

Challenges and Considerations

While FIPs offer clear benefits, transitioning from PIPs requires a cultural shift. Organizations accustomed to traditional performance management will resist this change, as it demands that managers—not just employees—adjust their behaviors.

Leaders will also need to receive training and support in how to give constructive, ongoing feedback. Additionally, striking the right balance between supportive and constructive feedback can be challenging and emotionally taxing. Shifting from PIPs to FIPs will likely require an investment in system changes and coaching to help leaders develop the skill to provide feedback that is both honest and motivating rather than overly critical or vague.

Conclusion

I recently heard the phrase “Clear is kind”—a Brené Brown-ism that really resonates when thinking about feedback and communication. Creating an environment where open, candid conversations are the norm allows people to actually learn and grow. Every time a leader avoids a tough conversation, the weight of that unspoken feedback only increases.

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The move from PIPs to FIPs represents more than just a policy shift; it’s a mindset shift (Blankenship, 2024). By prioritizing continuous, constructive feedback and leader accountability, organizations can replace punitive, demotivating processes with a culture of growth, engagement, and development. This approach not only enhances individual performance but also creates a more positive and productive workplace.