Summary

This article explores how to use performance improvement plans (PIPs) as a supportive, structured tool—not a punitive measure—for helping team members course-correct and thrive.

In our podcast episode “Performance Improvement”, James and Dee take on one of the most emotionally loaded tools in the people management toolkit: the performance improvement plan, or PIP.

Too often, PIPs are misused, rolled out as a surprise, or treated as a quiet step toward dismissal. But when done with clarity and care, a PIP can be something entirely different: a structured, transparent, and human way to help someone course-correct.

This article breaks down what healthy performance improvement really looks like, when to use a formal plan, and how to ensure the process is aligned with your company’s commitment to being open and people-first.

Start with Feedback, Not Formalities

One of the clearest signals that something has gone wrong in a team’s feedback culture is when a performance plan comes as a surprise.

Before any talk of documentation or deadlines, a foundation of candid communication should already be in place. That means informal coaching, clear expectations, and timely conversations about behaviours or results that aren’t meeting the mark.

If those haven’t happened, or haven’t been documented, it’s too early for a PIP. No matter how frustrated you might feel, it’s unfair and destabilising to blindside someone with formal consequences for things they never had a real chance to correct.

What a PIP Actually Is

At its best, a performance improvement plan is a focused support tool. It should outline:

• The specific areas where performance or behaviour isn’t aligned with expectations
• What improvement looks like; clearly, measurably, and reasonably
• A defined timeline for progress (often 30 to 90 days)
• The support that will be offered along the way

A good PIP reflects empowered ownership. It invites the employee to take responsibility for their growth, with the manager offering structure and accountability in return. It’s not a “gotcha” moment. It’s a second chance, with scaffolding.

Use It When Patterns Emerge—Not Just One-Offs

In the episode, James shares a scenario where a team member has received feedback over several months. The issues persist, not just in isolated incidents, but as a consistent pattern of behaviour or missed outcomes.

This is exactly the kind of situation where a PIP makes sense. You’ve offered guidance, clarity, and time. But the change hasn’t come, and the impact is starting to affect other team members, timelines, or trust.

What a PIP does in that moment is raise the volume. It signals that this is now a critical priority, and that the company is invested in giving one more structured opportunity to course-correct before considering more serious changes.

Build It with Intent, Not Frustration

If a performance plan feels like a dumping ground for every grievance, it’s already off track.

In the podcast, one story involves a performance plan that included a long list of unrelated or never-discussed issues, some of which had only occurred once. That approach breaks trust fast. It feels punitive, not purposeful.

Instead, a strong plan focuses on what matters most. Think: persistent gaps in communication, reliability, collaboration, or key deliverables. Anything included should be both correctable and clearly tied to the person’s role.

And just as importantly, the plan should include what support looks like, whether that’s weekly check-ins, shadowing, extra training, or something else.

Document the Journey, Not Just the Destination

One of the most effective approaches shared in the episode was a weekly check-in system built around a simple tracker: meets expectations, needs improvement, and notes. This turned the plan into a shared living document, not a static list of demands.

Consistency is everything here. These check-ins aren’t just for the manager, they help the person on the plan feel seen, supported, and able to track their own momentum. Small wins matter, and they should be acknowledged as part of the process.

A Note on Culture and Psychological Safety

Even with the best intentions, a performance improvement plan can shake someone’s confidence. It puts a spotlight on their struggles, and in the absence of care, it can threaten psychological safety.

This is why your feedback culture matters so much before a PIP ever enters the picture. If team members are used to open dialogue, shared accountability, and regular recognition, a performance plan doesn’t feel like a betrayal. It feels like a tough but fair next step.

And for managers, that means doing the repair work too. Stay generous in your feedback. Celebrate progress. And make it clear, through actions, not just words, that your goal is to keep this person, not move them out.

Final Thoughts

If you’ve ever felt your stomach drop at the phrase performance improvement plan, you’re not alone. For many, “PIP” feels like corporate code for you’re on your way out.

But it doesn’t have to be that way.

At Future of Team, we believe culture isn’t a vibe, it’s a system. And when done right, a PIP can be part of that system. It’s not a punishment. It’s not a last-minute ambush. It’s a structured, transparent, and yes, human way to help someone reset, improve, and thrive.

The goal isn’t to remove someone. The goal is to keep them. And that’s what people-first performance management looks like.