Build with Leila Hormozi: Episode 246 - Fix Underperformance On Your Team With These 3 Tactics

In Episode 246 of Build with Leila Hormozi, host Leila Hormozi delves into the critical issue of underperformance within teams. Drawing from her extensive experience scaling businesses and managing high-performing teams, Hormozi unveils three actionable tactics designed to address and rectify underperformance effectively. This comprehensive summary captures the essence of her discussion, providing valuable insights for leaders and managers striving to cultivate unshakeable businesses.

1. Accountability Begins with Leadership

Hormozi emphasizes that underperformance isn't solely the responsibility of the underperforming individual; it often reflects the leadership's approach. She asserts, “Underperformance isn't just about them. It's actually about you. How you handle it determines whether you fix the problem or you let it spiral into something worse” (00:00). This foundational idea sets the stage for her three-pronged strategy to tackle underperformance.

2. Tactic 1: Set Clear Expectations

One of the primary causes of underperformance, Hormozi identifies, is the lack of clear expectations. Without a well-defined understanding of what success looks like, team members may falter despite their best intentions.

• Defining Success: Hormozi discusses the importance of transparency in expectations, asking, “Did I tell them what good looks like?” (05:30). She underscores that vague goals lead to excuses, whereas crystal-clear expectations eliminate ambiguity.

• Implementation Strategies:

  • Job Descriptions: Ensure each role has a detailed job description outlining responsibilities.
  • Core Values: Communicate the company's core values to establish cultural expectations.
  • Brand Promise: Define what the business stands for—whether it’s speed, quality, affordability, etc.
  • Departmental Goals: Set specific targets for each department, such as sales numbers or revenue targets.
  • Role-Specific KPIs: Align key performance indicators with individual roles to provide clear performance metrics.
  • Company Mission: Reinforce the overarching mission to align individual efforts with the company's vision.

• Real-World Example: Hormozi recounts a scenario where a team member's performance improved dramatically after clear expectations were communicated. “Within two weeks, their performance was on par with everybody else on the team” (10:15). This transformation wasn’t due to new skills but the newfound clarity in expectations.

3. Tactic 2: Create a Self-Measurement Tool

Measurement is pivotal in tracking and addressing underperformance. Hormozi draws a parallel to weight management, stating, “If you want to lose weight, measure yourself on the scale every day” (15:45). Without metrics, performance issues can go unnoticed and unresolved.

• Benefits of Self-Measurement:

  • Visibility: Provides a clear view of where each team member stands.
  • Feedback: Facilitates timely and relevant feedback.
  • Ownership: Empowers team members to take responsibility for their performance.

• Implementing Self-Measurement:

  • End-of-Week Reports: Have team members summarize their weekly achievements and challenges.
  • Daily Scorecards: Utilize scorecards to track daily performance metrics.
  • KPIs Tracking: Require regular updates on key performance indicators relevant to their roles.
  • Surveys: Conduct periodic surveys to gauge performance and satisfaction.

• Supporting Evidence: Hormozi references a study during the holiday season where individuals who weighed themselves daily lost weight, while those who didn’t gained weight, despite no changes in their behavior (18:20). This illustrates the power of self-monitoring in influencing outcomes.

4. Tactic 3: Reinforce with Consistent Feedback

Consistent feedback is the multiplier that enhances accountability. Hormozi warns against the pitfall of addressing performance issues once and assuming resolution. “Feedback, AKA reinforcement, is the only multiplier for accountability” (22:05).

• Ongoing Process: Accountability isn’t a one-time conversation but a continuous dialogue. Establish routines for regular check-ins and performance discussions.

• Constructive Feedback:

  • Actionable Steps: Provide specific guidance on how to improve, such as, “If you're at a 6 out of 10, how do you get to 10?”
  • Celebrate Progress: Recognize and reward incremental improvements to motivate continued growth. “Reward them for progress, not perfection” (25:40).
  • Positive Reinforcement: Encourage team members by acknowledging their efforts, even if they haven't reached the ultimate goal yet.

• Building a Feedback Culture: By consistently reinforcing expectations and providing meaningful feedback, leaders can create a culture where accountability thrives. Hormozi concludes, “Accountability is the glue that brings those two together. Underperformance is a symptom of low accountability. If you fix accountability, you fix the problem” (28:10).

5. Conclusion: Leading by Example

Hormozi wraps up the episode by reiterating that the culture of accountability starts with the leader. “Be the example, set the standard, and watch how your team transforms” (30:00). She underscores that effective leadership involves creating clarity, implementing measurable tools, and maintaining consistent feedback loops.

Additionally, Hormozi introduces a new series focused on providing tactical advice on leadership and business fundamentals. She invites listeners to engage by sharing their thoughts and suggesting topics or challenges they’d like her to address in future episodes.

Key Takeaways

• Leadership Responsibility: Addressing underperformance begins with how leaders manage and communicate with their teams.
• Clear Expectations: Establishing well-defined roles and expectations is essential to prevent and rectify underperformance.
• Self-Measurement Tools: Empowering team members to track their performance fosters accountability and proactive improvement.
• Consistent Feedback: Regular and constructive feedback accelerates performance enhancement and sustains high standards.
• Culture of Accountability: Building an environment where accountability is ingrained leads to a resilient and high-performing team.

By implementing these three tactics, leaders can effectively tackle underperformance, fostering a productive and thriving business environment.

If you found this summary helpful or have specific topics you’d like Leila Hormozi to address, feel free to share your thoughts in the comments or reach out directly through the podcast platform.