A few years ago, I found myself in the thick of a rapidly scaling SaaS startup. The energy was electric, the stakes were high, and every day felt like a week. We had just brought on a shiny new VP of Sales, someone whose reputation preceded him. He was handed the reins of a team peppered with new hires and high expectations.

In those early days, he made quick calls on performance, decisions as swift as they were final. Two underperforming sales reps were let go, and a third was nearly shown the door. This third rep, someone I had played a key role in hiring, was different. Despite his less-than-stellar numbers, he exhibited behaviors that screamed potential: resilience, a knack for building relationships, and a learning curve that was steep but promising.

Pleading for patience, I argued his case. Fast forward twelve months—this once-struggling rep was now our top performer. What did this teach me? Well, our ability to make business-critical, data-driven, and accurate decisions based on someone’s potential was extremely limited.

Shifting the Lens: Behaviors Over KPIs

This experience was a stark reminder of the pitfalls of traditional performance metrics. In a world that moves fast, it’s easy to rely on numbers. They’re clean, they’re uncomplicated, and they don’t tell stories of struggle or growth. But here’s the thing—people do.

Focusing solely on KPIs can be like judging a book by its cover: efficient but often misleading. It overlooks the human elements, the very behaviors that are foundational to long-term success. Isn’t it time we changed the narrative?

Continuous, Not Periodic!

We need a seismic shift in how we evaluate performance. Gone should be the days of annual reviews that feel more like autopsies than check-ups. Instead, let’s talk about continuous dialogue, regular feedback, and a system that focuses on the behaviors that drive performance.

How Do We Pinpoint the Behaviors that Truly Drive Performance?

Here’s where it gets tricky. Recognizing the right behaviors that are driving performance isn’t straightforward. It requires observation, understanding, and a bit of psychology. One tool in our arsenal? The Critical Incident Technique (CIT). This method involves identifying specific events (or incidents) where significant behaviors led to notable outcomes. By analyzing these, we can start to paint a picture of which behaviors drive success and which don’t.

CIT isn’t just about catching people in the act; it’s about understanding the why behind the act. It’s a deep dive into the context, the pressures, the successes, and the failures. It gives us a fuller, richer understanding of our team’s dynamics and how we can better support their journey towards becoming high performers.

The Takeaway

If there’s one thing my time at the startup taught me, it’s that real potential is often hidden beneath the surface. It’s wrapped up in behaviors that need time and the right conditions to shine, and the current performance review processes aren’t cutting it.