How to Deal With Underperformance: A Leadership Opportunity in Disguise
 
 

In my coaching practice, one of the leadership challenges that my clients share is underperformance. It’s one of the most uncomfortable challenges a leader can face, especially in today’s high-performing business culture. When someone on your team isn’t delivering, it feels personal. Patience runs thin, difficult conversations are avoided, and the pressure rises. 

So how do you deal with underperformance in a team member with clarity, fairness, and integrity - and without sweeping the issues under the carpet?

If we go back to basics, the term "underperforming" implies a person is failing to meet expectations. Somewhere there is a misalignment - between performance expectations and understanding, between required skills and actual abilities, or with cultural fit.

In today’s fast-paced organisations operating with high levels of ambiguity, it's easy for someone to veer off course without realising it. That doesn’t excuse low performance, but it does invite us to approach the issue with curiosity rather than judgment.

So how can you do this?

Curiosity needs to come before criticism

Have you clearly articulated your expectations of the role? Have you been giving regular feedback? Does the individual have an awareness of how far off the mark they are? 

Your approach needs to be grounded in facts, not assumptions. Have a one-to-one conversation and set an exploratory tone - you’re there to understand in the first instance. Know what is likely to trigger you in the meeting so you can remain calm throughout. State that they are not performing as you need them to be, and ask to hear their point of view.  This opens the door for a transparent conversation without putting the other person immediately on the defensive.

Give direct, but human feedback

Feedback needs to be both honest and compassionate. No one likes to hear they’re not performing well, but wishy-washy feedback never helped anyone either. Take the radical candour approach - feedback that’s kind, clear, specific, and sincere.

Be specific about the details of what’s happened and describe the impact. Avoid vague labels like "not proactive enough". For example: "In the last three client updates, the deliverables were late and lacked the depth we expect. That’s affected our credibility and placed extra pressure on others to fill in the gaps."

Then pause. Let them respond.

The goal is to engage them, not to shame them. You want to build a shared understanding of what’s not working, so that you can move forward together. To find out more, download my Complete Guide to Feedback

Explore root causes together
Once the issue is on the table, use active listening to identify the root causes of underperformance, maintaining an attitude of curiosity rather than judgment.

Ask coaching questions to help the team member determine how they can improve their approach. “What do you think is holding you back?” “What does support look like for you?”

You may uncover practical blockers (too many priorities, unclear instructions), skill gaps, clashing working styles that need to be ironed out, or even personal issues that are affecting focus or energy. None of these excuses poor performance, but they do offer insight into how to help this person improve.

Co-create a path forward.

This is where a difficult conversation turns into a development opportunity.

Agree on measurable development goals and have a structured plan. What specific behaviours or actions need to change and when by? What support and resources do they need to do that? How will you track progress?

It’s essential that the team member takes ownership here. You can support, but they must lead their own turnaround. How confident do they feel in their ability to meet these expectations? What needs to change on their part? What strengths do they have that can help them?

This sets expectations, keeps the focus on positive outcomes, and creates a shared sense of accountability.

Follow through with consistency and care

One of the most common pitfalls I observe is having a single good conversation, but then failing to follow up or check in. Monitoring somebody on a performance improvement plan is time-consuming, and leaders may resent having to spend so much time on one person. That signals to the individual (and to the team) that performance isn’t really a priority. 

So stick to the plan. Create regular check-ins. Stay actively involved without micromanaging - explain that you will be supervising more than usual in the short term.

Offer both developmental and affirming feedback along the way. And if improvement doesn’t follow, be ready to escalate with fairness and transparency.

Remember: you’re not doing this to protect someone’s ego. You’re doing it to support their potential, or to make a clear decision if they cannot meet the standard required.

Final thoughts

Learning how to deal with underperformance will never be easy. However, it can also serve as a catalyst for change, growth, and improved leadership.

Handled well, these situations build trust, bring clarity, and model the kind of integrity every high-functioning team needs. Rather than seeing them as difficult conversations to be avoided, see them as opportunities to demonstrate your leadership skills

The real measure of leadership isn’t how you handle high performers. It’s how you support those who are struggling, and how you act when the easy option is to look the other way.

If you’re navigating performance challenges and want a sounding board to think it through, let’s talk. Whether you're facing tough conversations or seeking to enhance your team's development, executive coaching can provide the clarity and support for you to lead with confidence.

📩 Feel free to connect or send me a message if you'd like to explore how coaching could support you or your leadership team.