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Personal improvement plan (PIP)

A Personal Improvement Plan (PIP) is a structured framework to help underperforming employees meet specific performance expectations. While often seen as a prelude to termination, a well-executed PIP can serve as a constructive tool for growth and retention.

Strategic Purpose of a PIP

  • Performance Recovery: Helps employees improve in key areas with clear expectations and measurable goals.
  • Legal Protection: Serves as documentation in case of disputes, ensuring fair process adherence.
  • Cultural Impact: If used constructively, PIPs reinforce a culture of accountability and professional development rather than fear.

Best Practices for CTOs Implementing a PIP

  • Clarity & Transparency: Define precise, achievable goals tied to business objectives.
  • Support & Mentorship: Provide coaching, mentorship, and necessary resources to facilitate improvement.
  • Realistic Timelines: Typical PIPs range from 30 to 90 days, allowing enough time for progress evaluation.
  • Regular Check-ins: Frequent feedback sessions to track progress and adjust as needed.
  • Objective Assessment: Measure outcomes against predefined success criteria, avoiding bias or ambiguity.

When to Use (or Avoid) a PIP

Use a PIP When:

  • An otherwise capable employee is struggling with clear fixable issues.
  • Performance concerns are impacting team efficiency.
  • The goal is genuine improvement rather than a formality before termination.

Avoid a PIP When:

  • The employee is fundamentally a bad fit for the role or culture.
  • The intent is to push someone out rather than help them succeed.
  • Leadership has already decided on termination, making the process disingenuous.

Alternative Approaches

  • Coaching & Mentoring: A more informal way to address minor issues before escalating to a PIP.
  • Role Adjustment: If skills don’t match the role, consider restructuring rather than forcing improvement in misaligned areas.
  • Performance Development Plans (PDPs): A proactive, non-punitive approach that fosters long-term growth for all employees, not just struggling ones.

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