Better Performance Improvement Plans: Turning Accountability into Growth

Better Performance Improvement Plans: Turning Accountability into Growth
Our organizational culture assessment research found that Performance Improvement Plans (PIPs) are often misunderstood and misused. Too frequently, they’re viewed as a precursor to termination rather than a tool for alignment and growth. But when designed and implemented correctly, better performance improvement plans can be one of the most powerful mechanisms for building capability, supporting a high performance culture, increasing accountability, and building trust within an organization.

The Problem with Traditional Performance Improvement Plans
In many companies, performance improvement plans are reactive and punitive. They are rolled out only after performance or behavioral problems have persisted for too long — often when relationships are strained and motivation is low. As a result, employees see the plan as a final warning instead of an opportunity to succeed.

The ineffectiveness of this approach is backed by research:

• Gartner reported that only 29% of HR leaders are confident that their organization’s current performance processes are effective at helping employees achieve and sustain the best possible performance.
• Gallup found that only 20% of employees strongly agree that their performance is managed in a way that motivates them to do outstanding work.

The Risks of Ineffective Performance Improvement Plans
We know from new manager training that when designed or implemented incorrectly, weak Performance Improvement Plans:

1. Disengage Employees
   If employees feel that the plans are unfair, inaccurate, biased, or unattainable, they will eventually disengage. When employees feel mistreated or resentful, they will not perform at their peak.   Employees report feeling increased levels of fear, insecurity, and frustration when the performance management process is not in their best interests.
2. Reduce Performance
   Ineffective performance improvement processes can create untenable levels of performance pressure that can cause employee improvement plans to backfire and decrease performance. When employees feel that performance expectations are unclear, poorly measured, or just not worth achieving, they do not perform at their peak.
3. Create a Culture of Fear
   Ineffective Performance Improvement Plans can create a culture of workplace politics, fear, and apprehension that decreases employee engagement, feedback, innovation, collaboration, motivation, and growth. High performing leaders know that fear-based motivation is the least-effective way to increase the discretionary effort of their employees. When employees are frightened, they do not sustain performance.

What Better Performance Improvement Plans Look Like
The goal of any performance feedback should be to help employees succeed, not to document their failure. Performance management research from Harvard Business Review shows that when employees feel supported rather than threatened during performance challenges, they are 70% more likely to improve and remain engaged.

A well-designed performance improvement plan clarifies expectations, identifies specific gaps, and provides the support employees need to improve. It should be seen as a partnership between manager and employee — built on mutual accountability and a shared commitment to better outcomes.

Better PIPs include three key components:

1. Clarity of Expectations
   Our organizational alignment research found that goal clarity accounts for 31% of the difference between high and low performers. It is difficult for employees to adjust course if they do not know where they are headed.  Employees can only meet and exceed expectations if they know exactly how their goals and accountabilities are measured.

   Define the specific performance issues, why they matter, and what success looks like. Vague feedback such as “improve communication” is unhelpful. Instead, describe observable behaviors: “Provide weekly project updates to key stakeholders.”

2. Collaborative Action Plans
   The best plans are co-created. Managers and employees should jointly identify the actions, resources, and timelines needed to achieve improvement. Collaboration builds buy-in and a sense of shared responsibility.  Effective plans include:

   —  Concrete performance deficiencies and areas of concern that matter most.
   —  Desired performance improvement in typically 30-, 60-, and 90-day milestones.
   —  Individual development plans to close skill, knowledge, productivity, and attitude gaps.
   —  Consequences for failing to improve (e.g., termination, demotion, or other disciplinary actions.)

3. Ongoing Coaching and Feedback
   A PIP without consistent follow-up is destined to fail. Regular check-ins allow for course correction, reinforcement, and recognition of progress. According to Gallup, employees who receive weekly feedback are 3.5 times more likely to be engaged than those who receive little or none.

The Role of Managers
We know from people manager assessment center data that managers play a pivotal role in the success of any performance improvement effort. Their responsibility is not only to monitor results but also to remove barriers, provide encouragement, and hold meaningful conversations about progress. The best managers approach these situations with empathy and rigor — thoughtfully balancing accountability with support.

When employees fall short, effective leaders resist the urge to jump straight to discipline. Instead, they dig deeper: Is the issue due to lack of skill, motivation, clarity, or resources? Once the root cause is identified, targeted coaching and support can follow.

Building a Culture of Constructive Accountability
When done right, performance improvement plans reinforce a culture of constructive accountability — where underperformance is addressed directly but respectfully, and improvement is seen as both expected and achievable. This mindset not only helps struggling employees but also signals to high performers that fairness, development, and results truly matter.

The Bottom Line
Better performance improvement plans are not about punishment — they are about partnership. By focusing on clarity, collaboration, and continuous feedback, leaders can turn performance challenges into opportunities for growth. When employees feel supported and accountable, performance improves, engagement rises, and the entire organization benefits..

To learn more about managing employee performance, download The Science Behind Performance Expectations for Leaders to Know