The Hidden Gold in Performance Coaching: A Leader's Perspective

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Building a culture of continuous improvement and appreciation - Performance Coaching does not equal Compensation Conversations - Empowering Leadership Teams

As a leadership coach, I've seen countless eyes glaze over at the mention of "performance reviews." Let's be honest - traditionally, these conversations have felt like an undesired chore. But I'm here to tell you why performance coaching might be the most empowering tool that you're not using correctly in your business.

Here's the thing: performance coaching isn't just about checking boxes or delivering corrective feedback. It's about leading your team on a journey from point A to point B, and making sure everyone's set up for success along the way. Think of it like a GPS for professional development - it tells you where you are, where you're heading, and helps you navigate the route between the two.

The first mindset shift is separating compensation conversations from performance coaching. When money's on the table, people tend to focus solely on the dollar signs, missing the valuable development opportunities being discussed. Although acknowledging that performance impacts compensation, separating these allows for your team members to focus on developing in their roles ongoing rather than something that is discussed once a year.

I've developed a simple but effective framework for evaluating team performance that works across all roles. It starts with understanding where someone falls on the development spectrum:

New/Training: They're just getting started and need more hands-on support
Competent with Support: They've got the basics but still need coaching
Effective/Confident: They're driving their role independently and seeking mentorship
Expert/Leads/Teaches: They're innovating and helping others grow

The magic happens when you use this framework as a conversation starter rather than a judgment tool. You may rate yourself as an expert in your role, only to discover your supervisor sees things differently. Not because you aren’t performing well, but because the business goals now require new levels of performance you hadn't even considered. This is the golden touch in the conversation which can open your eyes to growth opportunities you might have missed otherwise.

One of my favorite analogies comes from Gordon Ramsay:

"Take this professionally, not personally."

This perfectly captures how we should approach performance coaching. It's not about personal criticism; it's about professional development.

The most successful teams I work with have turned performance coaching into an ongoing conversation rather than an annual event. They use it to:

Clarify roles and expectations
Identify growth opportunities
Recognize specific contributions
Build stronger collaboration
Drive innovation
Retain top talent

The secret sauce? Appreciation. Being specific about acknowledging contributions and their impact builds a culture where people want to excel. It's not just about saying "good job" - it's about saying "Your work on X project helped us achieve Y result, which made Z possible for the business."

Remember, in entrepreneurial businesses, the range of acceptable performance naturally narrows as you grow. Everyone, from C-suite to entry-level positions, needs to keep elevating their game. Performance coaching isn't just about fixing what's broken - it's about continuously raising the bar while supporting people in clearing it.

If you're ready to transform your approach to performance coaching, start by shifting your mindset. See it as an opportunity for growth rather than a dreaded obligation. Your team might just surprise you by looking forward to these conversations as much as you do.

What's one way you've successfully helped a team member grow from 'competent with support' to 'effective and confident'? Share in comments!

Author: Barbara Schindler

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