Why performance management matters at the executive level

-

How to go about getting the best from your top leaders

Why performance management matters at the executive level

Managing the performance of your executive team is one of the highest-leverage activities a leader can focus on.

Get it right, and your business will run smoother, faster, and more effectively.

Get it wrong, and you’ll find yourself constantly firefighting, stepping in to cover gaps, or dealing with misalignment at the top.

Unlike frontline performance management, where issues can be clearer and solutions more structured, managing executives requires nuance, direct conversations, and a shared commitment to the business’s overall success.


Why it can be hard to get right

Performance managing an executive team isn’t easy. These are seasoned professionals who have likely led teams themselves, and they come with strong opinions, entrenched habits, and their own ways of working.

Unlike managing junior employees, where gaps in performance can often be tied to skill development, underperformance at the executive level is more nuanced—it’s often about strategic misalignment, leadership style conflicts, or a failure to adapt to changing business needs.

Here are some key reasons why it’s challenging:

  • Power dynamics – You’re managing senior leaders who may feel they are your peers rather than direct reports. Navigating these relationships requires a mix of authority and partnership.
  • Blurred lines between leadership and friendship – If friendships form too strongly, it can make tough conversations harder, leading to hesitations in holding them to account. While trust and camaraderie are essential, maintaining a level of professional distance ensures that performance expectations remain clear and uncompromised.
  • High stakes – The decisions your executives make have a significant impact on the business. If an exec isn’t delivering, it affects the entire company.
  • Resistance to feedback – Executives are used to being the ones giving feedback rather than receiving it. Without a strong culture of direct, open dialogue, necessary performance conversations can be avoided or watered down.
  • The risk of avoidance – Because these conversations can be uncomfortable, many leaders put them off, hoping things will improve on their own. More often than not, they don’t.
  • Role overlap – At the executive level, roles can overlap, and responsibility can become ambiguous. If expectations aren’t crystal clear, it becomes difficult to measure performance objectively.

Despite these challenges, avoiding performance management at this level is not an option. Strong leadership requires facing these difficulties head-on, ensuring your executive team is functioning at the highest level possible.

The key is to strike the balance between providing clarity, holding them accountable, and giving them the autonomy they need to drive results.

Let’s explore some practical steps you can take to get this right.


Aligning on vision and priorities

Before you can manage performance, you need to ensure that everyone is clear on what success looks like. Many executive-level performance issues don’t stem from a lack of capability but from misalignment on priorities.

  1. Set explicit expectations – Just because an executive has experience doesn’t mean they automatically know what you expect. Be clear about the company’s vision, strategic goals, and how their role contributes to them.
  2. Define what ‘good’ looks like – What are the tangible outcomes they need to achieve? How do you expect them to operate as leaders? Make this explicit early on to prevent future misunderstandings.
  3. Check for mutual understanding – This isn’t just about you telling them what’s important. It’s about ensuring they truly understand and buy into it. Ask them to articulate their priorities back to you and check that their focus aligns with your expectations.

Alignment isn’t a one-time event; it’s an ongoing process. Regularly revisit priorities in one-to-ones and leadership meetings to ensure focus remains sharp and strategic drift is avoided.


Getting the best out of them

You’ve built your executive team for their expertise, leadership, and strategic thinking. Now, your job is to get the absolute best out of them. This means tapping into what drives them, empowering them to perform at their peak, and ensuring they stay engaged and motivated.

  • Understand their motivations – Not all executives are driven by the same things. Some thrive on autonomy and big challenges, while others are energised by collaboration and purpose. Have open conversations about what excites them, what drains them, and what kind of leadership they respond to best.
  • Give them the right challenges – The best leaders want to be stretched. Assign strategic initiatives that push them beyond their comfort zones while still leveraging their strengths. Avoid bogging them down in operational details that dilute their impact.
  • Remove obstacles – One of the most valuable things you can do as a leader is clear the path for your executives. Whether it’s breaking down internal silos, securing resources, or resolving tensions between teams, removing barriers helps them focus on driving the business forward.

A thriving executive team doesn’t just happen—it’s cultivated. By investing time in understanding, challenging, and supporting them, you unlock their full potential and elevate the entire organisation.

Creating a culture of accountability and ownership

Accountability isn’t about micromanaging—it’s about ensuring commitments turn into outcomes. Many leaders assume executives will naturally hold themselves accountable, but even the best performers need structured accountability mechanisms to keep things on track.

  • Use regular check-ins effectively – One-to-one meetings should not be status updates. They should be focused on problem-solving, decision-making, and addressing challenges before they escalate.
  • Make commitments visible – Use clear objectives, key results, and measurable deliverables to track progress. If it’s not written down, it’s easy to drift.
  • Ask rather than assume – Don’t just take ‘everything is on track’ at face value. Dig deeper. “What’s working well? What’s proving difficult? Where do you need support?” These kinds of questions push for real accountability rather than vague assurances.

Ownership is the other side of the accountability coin. If an executive doesn’t feel true ownership over their area, they’re unlikely to take full responsibility for the outcomes. Make sure they have the authority and resources needed to deliver, while holding them responsible for results.

Giving feedback: direct, constructive, and actionable

Feedback at the executive level needs to be different from how you might deliver it elsewhere in the organisation. These are experienced leaders, and they don’t need sugar-coating or excessive hand-holding. What they do need is clarity, directness, and actionable insights.

  1. Make feedback a regular habit – Don’t wait for formal reviews. Regular, informal feedback keeps performance conversations natural and avoids surprise moments.
  2. Be specific and direct – Avoid vague feedback like “you need to step up” or “I need to see more leadership from you.” Instead, say: “I need you to take a stronger stance in cross-functional meetings—your department’s perspective isn’t coming through clearly.”
  3. Balance challenge with support – High performers don’t just want to hear what’s wrong; they want to know how to improve. Pair critique with constructive suggestions and an offer of support.
  4. Use examples – Ground feedback in tangible observations. “In last week’s leadership meeting, you didn’t push back on X, even though it directly impacted your area. Why?” Specificity makes feedback useful rather than abstract.

What to do when performance is good

High-performing executives still need performance management—just of a different kind. If someone is delivering excellent results, your role is to challenge them, support their growth, and retain them.

  • Recognise and reinforce – Don’t assume great performance speaks for itself. Acknowledge achievements and impact so they feel valued.
  • Raise the bar – Give top performers bigger challenges, strategic projects, or areas to develop. Keeping them engaged is key to long-term retention.
  • Ensure visibility – Help them build their influence across the company and externally. Support speaking opportunities, board interactions, and networking to elevate their profile.

Handling underperformance

When an executive isn’t delivering, it needs to be addressed swiftly and directly. The biggest mistake leaders make is letting underperformance linger, hoping it will resolve itself. It rarely does.

  1. Identify the root cause – Is it a capability issue, a motivation issue, or a misalignment of expectations? Each requires a different approach.
  2. Have the tough conversation early – Don’t let things fester. Approach it with directness and curiosity: “I’ve noticed that [specific issue]. What’s going on?”
  3. Set clear improvement expectations – Be explicit about what needs to change, by when, and what support you’re willing to offer.
  4. Follow up consistently – One conversation won’t fix underperformance. Regularly check in and hold them accountable for progress.

Handling difficult conversations and conflict

Handling conflict well is a hallmark of strong leadership. But it doesn’t have to lead to raised voices and emotions.

  • Approach with a problem-solving mindset – Instead of framing a difficult conversation as a confrontation, approach it as an opportunity to resolve an issue together. Focus on solutions, not blame.
  • Be direct, but fair – Executives appreciate straightforward communication. Avoid sugar-coating issues or being overly vague. Be clear about the problem, the impact, and what needs to change.
  • Listen actively – A difficult conversation should be a two-way discussion. Give the other person space to share their perspective, and make sure you genuinely listen rather than just waiting to respond.
  • Stay focused on facts and outcomes – Keep emotions in check and stick to concrete examples of behaviour or performance issues. “Your department missed the Q2 targets by 15%” is more constructive than “You’re not performing well.”
  • Follow up with action – The conversation alone isn’t enough. Summarise key takeaways, agree on next steps, and check in regularly to ensure improvements are being made.

By addressing tensions proactively and constructively, you create a culture where challenges are tackled head-on rather than left to fester.


Know when to make a change

If performance doesn’t improve despite clear feedback and support, it’s time to make a decision. Keeping an underperforming executive in place for too long damages team morale and slows down the business.

  • Assess the impact – Consider how the individual’s performance is affecting overall business goals, team dynamics, and strategic execution.
  • Look for patterns – One-off mistakes can happen, but if issues persist despite direct conversations and agreed action plans, it’s a sign deeper changes may be needed.
  • Make a decisive move – Dragging out a poor fit doesn’t help anyone. If it’s clear that improvement isn’t happening, have the courage to make a change and transition the executive out of the role.
  • Manage the transition well – Communicate clearly to the rest of the team and ensure there is a structured plan for continuity and replacement.

Making a leadership change isn’t easy, but it’s sometimes necessary to ensure the business continues to move forward with the right people in place.


Performance management as a leadership discipline

Performance managing your executive team isn’t about control—it’s about creating the conditions for them to do their best work. It requires ongoing alignment, open conversations, and a structured approach to accountability.

By setting clear expectations, holding direct but fair conversations, and creating an environment of ownership and responsibility, you ensure that your executive team is not just functioning, but thriving.

TAKE ACTION

Get The Inside Track

To help you reach your destination faster, my regular newsletter includes tools, guides and action steps.

LEARN MORE

Explore our collection of 200+ Premium Webflow Templates