Categories: Leadership

The Performance Values Matrix: A Leader’s Guide to Training, Retention, and Termination

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Identifying the right talent to retain, train, or let go is crucial for maintaining a high-performing, values-driven culture. The Performance Values Matrix provides a clear framework for evaluating employees based on two critical factors: performance and values & trust. With this matrix, leaders can make informed decisions about who to promote, who to support, and who to let go, ensuring the long-term health of their teams. Let’s break down the four types of employees in this matrix, along with practical solutions for handling each.

Understanding the Performance Values Matrix 📊

The Performance Values Matrix is divided into four quadrants, each representing a unique combination of performance levels (high or low) and adherence to company values & trust (high or low). Here’s how to categorize employees and take action based on their placement in the matrix:

1. Competent As*holes 😈 (High Performance, Low Values)

These individuals excel in their roles, consistently delivering strong results. However, their toxic behaviour undermines team morale and disrupts a positive work environment. While they may meet performance metrics, their attitude erodes trust, collaboration, and overall culture.

Solution: Disciplinary Action 🚨

Leaders must address their behaviour head-on. Give them clear, actionable feedback about their negative impact on the team. If their toxic behaviour persists despite corrective actions, they may need to be let go—no matter how competent they are. Long-term, these individuals cause more harm than good.

💡 Scenario: A sales executive consistently exceeds revenue targets but alienates teammates with aggressive and disrespectful behaviour. Customers may love the results, but their coworkers dread working with them. Such toxicity will hurt team performance in the long run if not addressed.

2. Competent Nice Guys 🌟 (High Performance, High Values)

The dream employee! They excel at their job and embody your company’s values—contributing positively to the workplace culture. These individuals don’t just achieve results; they also inspire those around them to work better and uphold integrity. In the Performance Values Matrix, they represent the ideal combination of high performance and strong adherence to company values. These employees are not only valuable for their skills but also for the positive example they set within the organization.

Solution: Retain & Promote ⬆️

These employees are your future leaders. Provide opportunities for growth, mentorship, and leadership roles to maximize their potential. Ensure they feel valued, as they are key to driving both performance and values forward in your organization.

💡 Scenario: A project manager who delivers projects on time and uplifts the team, offering support and fostering open communication. This person is a role model for what you want your entire workforce to become.

3. Incompetent As*holes 💣 (Low Performance, Low Values)

This is the quadrant you want to avoid at all costs. These employees fail to meet performance standards and exhibit destructive behaviour. They neither contribute positively to the company culture nor deliver the results expected from their role.

Solution: Fire Fast ❌

Incompetent as*holes drag the team down, wasting resources and setting a poor example for others. Leaders must act swiftly and decisively in these cases. Prolonging their stay in the company can cause long-term damage.

💡 Scenario: An IT technician who struggles with technical issues and regularly engages in office gossip, spreading negativity. This combination of low performance and toxic behaviour is a recipe for disaster. It’s better to part ways early.

4. Incompetent Nice Guys 🛠️ (Low Performance, High Values)

These individuals may struggle with their tasks, but they genuinely align with the company’s values. They are positive, supportive team members who bring good energy but lack the skills to perform effectively. While they don’t disrupt the work environment, they aren’t contributing to the company’s success either. The Performance Values Matrix helps leaders identify these “Incompetent Nice Guys” and guides decisions on whether to invest in their development or reevaluate their role within the organization.

Solution: Train & Support 🎓

Instead of immediately terminating these employees, invest in their development. Offer training programs, mentorship, or a performance improvement plan. With the right support, they may develop into strong performers. The Performance Values Matrix helps identify these individuals, recognizing their alignment with company values while highlighting areas where performance improvement is needed.

💡 Scenario: A junior marketing associate who consistently fails to meet campaign deadlines but is always willing to help others and shows initiative in learning. With the right guidance, they could grow into a more effective role. According to the Performance Values Matrix, this employee falls into the “Incompetent Nice Guys” category, where low performance is balanced by a strong alignment with company values. By investing in their development, leaders can use the Performance Values Matrix to guide decisions on training and growth opportunities. Over time, this approach may turn them into a valuable, high-performing team member.

Why the Matrix Matters 🌱

Using the Performance Values Matrix helps ensure that leaders are not just looking at numbers on a spreadsheet but are also evaluating how employees contribute to the overall culture of the company. As Netflix’s famous quote highlights:

“The actual company values, as opposed to the nice-sounding values, are shown by who gets rewarded, promoted, or let go.”

Employee performance and adherence to company values should both play significant roles in retention and promotion decisions. Ignoring one aspect can harm long-term success.

How to Use the Matrix for Effective Leadership 💡

1. Clear Communication:

Ensure all employees understand both performance expectations and the company values they are expected to embody. Clarity is key to accountability.

2. Regular Feedback:

Use the matrix during performance reviews to assess not only whether employees are hitting their goals but also how they are contributing to the team culture.

3. Swift Action:

Whether it’s promoting a star employee or letting go of a toxic one, don’t delay in making decisions that align with the matrix. Procrastination allows issues to grow.

4. Invest in Development:

Don’t be afraid to invest in those who align with your company’s values but may need some help to reach their full potential.

Conclusion: The Right Balance for Success

Instead of immediately terminating these employees, invest in their development. Offer training programs, mentorship, or a performance improvement plan, as the Performance Values Matrix suggests focusing on their potential for growth. By using the Performance Values Matrix, leaders can better assess whether these employees can improve their performance while continuing to embody the company’s values.

Abhishek Sharma