Fix Underperformance On Your Team With These 3 Tactics | Ep 246 - Build with Leila Hormozi

Summary4 min read

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.

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[00:00]
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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. Here's the thing. If someone on your team isn't meeting expectations, accountability is the solution. It doesn't start with them. It actually starts with you. I used to hear people say, you just need to hold them accountable. And I'm like, what does that mean? Nobody ever explained to me how to do this thing. It's like, be honest, trust people, hold them accountable. Okay, but how? And so this video isn't theory, it is tactical. I want to show show you how to address underperformance step by step so you can fix the problem at its root and get your teammate back on track. The first thing in the formula for accountability is set clear expectations. Most underperformance starts because there are no clear expectations. If your team doesn't know what success looks like, how can they hit the mark? Fuzzy goals and vague directions just create excuses for underperformance. While if you have crystal clear expectations, you eliminate all of that ambiguity. And so the question becomes, how do I set clear expectations? Expectations start when you are hiring the person. Do you have a clear job description that actually says what the person's doing? Do you have core values that tell someone what the culture is and what it isn't? Do you have a brand promise around what your delivery is for your customers? Are you fast? Are you good? Are you cheap? Are you what? Do you have expectations for the department that they're in? Does the sales team know how many sales to make? Does the finance team know what our revenue target is? Do you have role expectations? Do they know what their KPIs are? Do they tied to their roles? And do you have a company mission? All of these things tie into expectations. And if you don't have any one of those things, this is a great opportunity to go ahead and say, great, I can set more clear expectations. The question to ask yourself, did I tell them what good looks like? The vision you have in your head for what good is they need to know that vision. You can't expect what you didn't explain. Here's the thing that I've learned. Most people want to do well, most people want to win, and most people want to feel good about themselves. Almost every time that I've had a teammate that's underperforming, it has been because expectations were not crystal clear. Even as of recently, I had someone on a team who was underperforming and Then I went to their boss, their boss was saying, I'm not sure if this person's going to make it. And I went to them and said, did you clearly explain to them what your expectations were? Have you told them as clearly as you've told me? And that person said, no. I said, great, let's have a conversation. Let's tell them what those expectations are. They had the conversation. What happened? Within two weeks, their performance was on par with everybody else on the team. Why is that? Was it because suddenly they got the skills? No, it's because they didn't know what good looked like, they didn't know what they were expected to do and they didn't know what the standard was. The second thing you've got to do is create a self measurement tool. When underperformance is not tracked, it gets ignored and only grows in the direction you don't want to. It's sort of like if you're trying to lose weight, if you want to keep weight on, don't weigh yourself. If you want to lose weight, measure yourself on the scale every day. Without metrics to measure progress, you're left relying on feelings and assumptions which often lead to missed opportunity and course correction later. Measurement creates visibility. It shows you where someone stands and gives them feedback. And so the question is, how do you create a self measurement tool? Self measurement means that you create self some sort of tool where your teammate fills in their progress rather than you. So a lot of people think, oh gosh, holding people accountable is going to be so much work. Well, it's not because the most effective way to hold somebody accountable is to have them measure their own performance. You can do this through having them fill out an end of week report, having them fill out a scorecard every day, having them fill out utilization metrics, having them follow KPIs that they have to fill out on a daily basis or, or having them submit surveys. The most important thing is that they do the measuring, not you. Because people who measure their own performance are three times more likely to take action to perform better. There was a study done and it had a group of people during the holiday season. And what they did is they had one group of people who didn't weigh themselves and they had another group of people who weighed themselves every day. Here's what happened. The group that didn't weigh themselves, they actually gained weight during the holidays. Now what happened to the group that did weigh themselves, they lost weight during the holidays. These people did not go on a diet, they didn't go on A meal plan they didn't work out, they didn't change nothing. They were just conscious of their weight. The same goes for performance. If you simply measure something, it almost always goes in the direction you want it to. The next step is reinforce. Underperformance doesn't fix itself. Okay? It needs consistent feedback and follow up. Okay? And so many leaders address an issue once and assume it's gonna stay solved forever. But without consistent follow through and reminding and reinforcement, underperformance continues to be the norm. Feedback, AKA reinforcement, is the only multiplier for accountability. If you give somebody more feedback, they will improve performance faster and better. If you give somebody less feedback, they will improve slower and not as well. It is the only thing that can multiply the efforts of your teammate. And without it, underperformance will absolutely continue to be the norm. So the question is, how do you provide that kind of feedback? Here's the thing. Accountability is not a single conversation. It is an ongoing process. And so what you want to do is that you have the expectations. You've tied those expectations to a measurement, and then they are going to report that measurement to you. What you do next is called feedback. Telling them is, if they're at an 8 out of 10, how do you get to a 10? If they're at a 6 out of 10, how do you get to 10? What are the tactical steps to get there? And calling out their wins when they've made progress. Just because they're not a 10 doesn't mean that you say you suck. It means that you can still congratulate them for being a six because yesterday they were a five. Reward them for progress, not perfection. Reinforce the fact that they're going in the right direction and remind them of the steps to get to a 10. If they're not there yet, you have expectations and then you have performance. Accountability is the glue that brings those two together. Underperformance is a symptom of low accountability. If you fix accountability, you fix the problem. And it's not about micromanaging. It's not about being harsh. It's about creating clarity, measuring progress, and consistently giving feedback. That's it. And remember this, the culture of accountability starts with you. Be the example, set the standard, and watch how your team transforms. This is a part of a new series where I'm going to share tactical advice on leadership and business fundamentals. If you want more like this or you like this format, let me know in the comments and let me know if you've got specific topics or challenges that you want me to address.