Hey entrepreneur,
Quick question...
Who's more dangerous to your company? The high performer who wrecks the culture, or the culture champion who can't execute?
Most founders say the high performer.
And I get it. Nobody wants the rockstar who makes everyone else quit.
But here's what I've learned after doing hundreds of reviews across 17 companies:
The most dangerous people on your team are the ones sitting right in the middle.
Not bad enough to fire. Not good enough to promote.
They're the threes. The "solid performers." The people you keep telling yourself will eventually step up.
And you tolerate them forever.
Meanwhile, your actual top performers are watching you accept mediocrity. And they're updating their LinkedIn profiles.
Here's how we fix it:
The Two-Factor Test
Before you promote anyone (or tolerate anyone) run them through this simple grid:
Factor 1: Effectiveness
Can they do the job? Do they deliver results? Does their work have a direct impact on your company's goals?
Factor 2: Fit
Do they live out your core values? Do they make the people around them better? Would you want more people like them?
Now plot them on the grid:
High Fit + High Effectiveness = Your A-players. Promote them. Grow them. Keep them.
High Fit + Low Effectiveness = Culture champions who underperform. Coach them. They're worth the investment.
Low Fit + High Effectiveness = Results-driven culture risks. Put them on notice. Sometimes you can "put them on an island" for a while, but long-term they need to improve or move on.
Low Fit + Low Effectiveness = Move them out. Fast. No plan needed here.
But here's the one that'll surprise you:
The people who are medium on both (the threes) are actually the most dangerous.
Why?
Because you'll tolerate them forever.
They're not bad enough to fire. They're not causing drama. They're just... fine.
And "fine" will hold your entire company back.
Your top performers see you tolerating mediocrity. Your culture starts to drift. And before you know it, your whole team is performing at a three.
That's why we run this exercise every quarter.
Not to be harsh. Not to create anxiety.
But to get clear on who needs what.
Some people need coaching. Some need resources. Some need a nudge. And some need to go.
But you can't help them if you can't see them.
If you grabbed the Team Impact Toolkit, you've got everything you need to run this yourself:
-
The Team Impact Analyzer (where you score Fit + Effectiveness)
-
The Team Assessment Matrix (the 2x2 grid)
-
The 1:1 template to actually discuss the results
If you haven't grabbed it yet, here's the link:
Get the Toolkit (Free) →
Next email, I'll show you the biggest mistake founders make when they finally sit down to have the review conversation.
(Hint: It's not what you think.)
Talk soon,
Ryan
P.S. One more thing about those "high fit, low effectiveness" people... the ones everyone loves but who can't execute.
These are the hardest to let go.
But your top performers? They're the ones who are most frustrated by them.
Don't let loyalty to a nice person cost you your best people.
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