How to Use a Performance Improvement Plan (PIP)
 

Nobody loves tough conversations. Not you. Not your team members. Not even the coworker who could've trademarked the poker face.

When someone on your team isn’t meeting expectations, you can’t just cross your fingers and hope things magically improve. You have to step in—with clarity and heart. That’s how you lead well.

But what if you’ve already had the hard, honest talks and things still aren’t improving? That’s where a performance improvement plan (PIP) comes in (we also call this a 90-day plan).

Contrary to popular belief, a PIP isn’t just a formal step before someone gets fired. It’s not about micromanaging or handing out punishments either. A PIP—used the right way—is a line in the sand for what’s expected moving forward and a clear road map for growth.

It gives struggling team members a real shot at turning things around. And if that doesn’t happen, it also gives them a dignified, respectful exit. So let’s walk through what a performance improvement plan is meant to be and how to move forward with leadership that serves your team best.

What Is a PIP?

PIP stands for performance improvement plan. It’s a written plan that outlines exactly where someone’s work is falling short and what they need to do to meet the expectations of their role.

What Is a PIP in Work?

A performance improvement plan in the workplace is used when a team member is consistently underperforming in a skill-based area of their job. Maybe they’re not hitting sales goals, meeting deadlines or communicating clearly with clients.

A PIP is not for behavior issues like not showing up on time (or at all), being disrespectful, or not dressing appropriately. Those aren’t gradual improvement areas—they’re “must change now” areas. A PIP is about skills.

When to Use a Performance Improvement Plan

Hear this clearly: Never deliver a PIP when you’re ready to let someone go but haven’t had a series of clear, direct conversations leading to this moment. As leadership expert Patrick Lencioni puts it, “Firing someone . . . is often the last act of cowardice for a leader who doesn’t know how or isn’t willing to hold people accountable.”

It’s not okay to introduce a performance improvement plan as the first conversation with any team member. But if you’ve had conversations and they just aren’t helping—or if someone starts plateauing or even spiraling—it’s time to move to the next level of accountability.

Armando Lopez, senior executive director of human resources at Ramsey Solutions, recommends asking yourself these three questions to know if it’s time to present a 90-day plan:

• Have I clearly laid out the expectations?
• Have I documented the misses and had a real conversation about them?
• Would this team member be surprised to hear they’re not meeting expectations?

“If you can’t answer yes to all three, then you shouldn’t move forward. To be unclear is to be unkind,” Armando says. “Surprises are never fun—especially when the stakes are high. Be really clear to ensure your team member knows exactly where they’re at.”

The truth is, 99% of your emotional energy in leading your team should be spent setting clear expectations. The remaining 1% is for holding team members accountable.

Setting clear expectations is a two-way conversation—one that brings clarity for everyone and gets team buy-in toward shared goals. So before you pull out a formal plan, make sure you’re having regular one-on-one meetings with honesty about performance concerns.

Flag issues in real time, give clear feedback, and offer specific examples of expectations not being met and the changes you need to see. Then, use one-on-ones to coach the team member forward.

How to Write a Performance Improvement Plan

Writing a performance improvement plan isn’t about filling in blanks on a form. It’s about creating a plan that’s crystal clear and fair. Here’s what to include:

• The specific areas where performance is lacking: Use their Key Results Area (KRA) to guide this.
• What’s expected: Be specific. “Make 10 sales calls per day” not “make more calls.”
• A time frame for improvement: Usually 90 days with checkpoints at 30 and 60 days at a minimum.
• How you’ll measure progress: Clear metrics, not vibes.
• What happens if there isn’t improvement: Usually, employment ends.

Your input should be direct and respectful. This isn’t a suggestion box. It’s a “this must change” document. So once you’ve created your PIP and are ready to present it, take time to refresh yourself on how to have uncomfortable conversations.

Performance Improvement Plan FAQs

Still got questions about PIPs? That’s a good thing. It means you care and you’re trying to get this right. Here are some common PIP questions with answers from Armando.

What should the conversations leading up to a PIP look like?

Start by sitting down with the team member and their KRA. Talk through each point honestly. Let’s say they’ve got five key areas and they’re meeting expectations in three of them, needing improvement in one, and completely missing another.

Ramsey uses this five-point scale: 1 – Needs Guidance, 2 – Self Sufficient, 3 – Skilled, 4 – Advanced 5 – Raises the Bar. So, on a five-point scale, this team member would see three 3s, one 2 and one 1.

Affirm where they’re doing well. Then point to the areas that need to improve. Spell out what it would look like to raise that 2 to a 3 (or higher) and explain what needs to change with the 1. And be clear that these expectations aren’t optional—they’re core to the role.

Document each conversation for your records and for personal accountability, organizing your notes by:• The date• What expectation isn’t being met• What the standard is• What improvement you and the team member discussed

This isn’t about catching a team member in the act of bad performance—it’s about helping them clearly see the gap and giving them a fair chance to close it.

How do I know if they understand the seriousness?

It’s one thing to say the words—and another thing to communicate effectively and know the words actually landed. So ask yourself, Was the message delivered the message received?

Here are two simple ways to check:

1. Ask them to rate the seriousness. Say something like, “On a scale of 1 to 5—with 1 being simple constructive criticism and 5 resulting in termination—how serious does this feel to you?” If they say a 1 or 2 and it’s a 4 or 5 for you, that’s a sign you haven’t been clear enough. Go back and be more direct.
2. Have them recap the conversation. At the end of your one-on-one, ask them to take five minutes to jot down what they heard—what the issue is, what needs to change, and by when—and email it to you. If their notes only cover part of the conversation or if the tone feels way more casual than you intended, that’s your cue to tighten things up.

You’re not being harsh—you’re being clear. Your team member needs to walk away knowing these expectations are musts, not maybes.

What if I know I’m ready to move forward with a PIP?

Have you had all the right conversations and documented them leading up to this point? If you have and it’s time to make things formal, don’t go it alone. Bring the situation to your HR committee. If you don’t have one, loop in another trusted leader or two. This is a moment for trusted colleagues to help you slow down and check your process and your gut.

Do you believe this person has what it takes to turn things around in 90 days?

If the honest answer is no, don’t offer a PIP. That would be unkind and unfair. It’s time to let them go. A PIP is not a delay tactic. It’s a real opportunity for someone to step up and stay.

If you do believe it’s still possible, empower them with two clear choices:

• Option A: Opt out now with a full severance package
• Option B: Fully commit to turning things around and meeting the standard (but if they don’t, they won’t get the same severance later)

Give your team member a couple of days to think it over, and let them know you’ll be doing the same. Say something like, “Take the weekend to think it over. On Monday, you can tell me if you want to go forward or call it. I’ll be thinking too—and I may come to the conclusion that we’re ready to call it. If so, I’ll let you know, and that will be your last day.”

The good news is, many people can and do turn things around—but only when the expectations, time frame and consequences are clear.

How do I deliver a PIP?

This is one of those conversations where how you show up matters just as much as what you say. You’re working with a real person—someone with hopes, bills, stress and a story. So even if you’re frustrated, lead with clarity and care.

Do:

• Lead with empathy. Treat people like you would want to be treated if the roles were reversed.
• Be curious, not judgmental. Ask questions and listen to understand, not to argue.
• Stick to the facts. Show them their performance gaps, not personal flaws.
• Say the hard thing, kindly. Don’t dance around it.
• Give them time to process. Two to three days is fair before asking for a decision.

Don’t:

• Say, “It’s not personal.” It is to them.
• Let your emotions run the show. Stay steady, even if they react strongly.
• Soften it so much they miss the seriousness. Be clear and firm.
• Take their reaction personally. This is hard news. Give them space to feel.

After the conversation, ask them to summarize it. That helps you see if what you said was what they heard.

How do I choose the right PIP goals?

Start with the problem you’re seeing. Then ask, What’s the expectation here? That’s your goal.

That said, keep in mind the role and the person’s time in the position when setting expectations. You don’t want to hold anyone to an unfair standard.

Still stuck? Think about the kind of wins you’d want to celebrate with this team member a year from now. Maybe it’s seeing them speak up in meetings, become someone people seek out to help solve problems, or receive customer praise instead of complaints. Now ask, What’s keeping this person from getting there?

How long should I keep someone on a PIP?

• Most PIPs last a maximum of 90 days with checkpoints at 30 and 60 days.
• At each check-in, use the PIP to ask, “How do you think you’re doing?”
• If they’re not where they need to be, give them the specific adjustments you need to see.

And remember—either of you can opt out at any point. If it becomes clear this isn’t going to work, it’s okay to call it before the 90 days are up.

What happens at the end of 90 days?

“Once a team member reaches the end of the 90 days and hits the goals, celebrate with them!” Armando says. “Let them know they crushed it and proved they’re capable of delivering what’s expected. Now, it’s up to them to keep going.”

He also emphasizes that the expectations don’t change just because the plan is over. Be clear with the team member that they won’t get a reset or another 90-day runway if performance slips again. If it helps, they can even pretend someone’s still watching over them until the level of work becomes second nature. (But don’t really look over their shoulder. Instead, use your one-on-ones to support them and keep rebuilding trust and open communication.)

One more thing to be super clear on:

• They can’t transfer to another department while on a PIP or immediately after—they need to demonstrate consistent performance where they are first.

Performance improvement plans aren’t easy—but they are worth it. They give clarity, dignity and direction. And when you use them well, they can lead to powerful turnarounds.

Challenge yourself and your leaders with direct reports to be fair, clear and quick to address issues. Most importantly, in all situations, treat your people the way you’d want someone to treat you.