You’re responsible to get the most out of your company. So make sure that you, as the boss, are wandering around with an open mind.

And always assume that things can be improved.

Watch for the tell-tale signs. A common indicator of under-performance is when a department head is not personally confident. Also, when they don’t express themselves fully or clearly; and when things happen in their department that they don’t make a noise about (good or bad).

Before you start blaming anyone, make sure that the people within this under-performing department know what their objectives are – and how they are to be measured. It’s all very well for you to fester away, irritated at a team’s output, only to discover that they all thought they were meant to be doing something completely different.

Each department also needs to know how their activity crosses over with other departments. They must understand how they fit into the bigger picture and keep themselves in sync. If they understand this, they’ll be in a much better position to focus.

Be aware also that different departments progress at different rates. There’s no point in product development, say, steaming away with dozens of new ideas, if the commercial side doesn’t have the capacity to launch them. It’s just a natural law of business that sometimes one department is firing when another one is sluggish.

Okay, so this set of under-performers understands what they’re meant to be doing, how they’re being measured and how they fit into the bigger picture. But you feel they still lack some oomph. What next?

“Directors’ days” are a well-established way for senior staff to get close to the action; to keep up the training and motivation of our people; and, to assess how teams are performing. They’re not designed to monitor under-performance, but if it exists in the company, they would certainly identify it.

On directors’ days, the board goes “back to the floor” and works alongside their respective teams in their departments. They could go out on sales visits, man the phones for a day etc.

These days serve several purposes. Firstly they remind the directors themselves that they can still cut it at the coal face.

Secondly, they reinforce the reputation of that director within that team. The exercise gives off the message that “I’m not asking you to do anything that I wouldn’t do myself”.

Thirdly, the days provide an understanding about a particular aspect or activity in the business. They give a direct vision of the rate of progress of individuals within that team. And finally, they’re a great way to do some hands-on in-house training.

(Just remember to be very diplomatic about how you introduce the idea of a directors’ day. Generally if presented correctly, the reaction should be very positive as it’s a chance to get the ear of the boss.)

Such schemes are all very well in sales departments where objectives are obvious and measurable, I hear you say. But what about under-performance in a non sales-driven back-office functions such as HR or finance?

The same rules apply. Start by talking to the heads of department. Confirm your views with individuals within the team. Make sure that they all understand their objectives – and how they are measured.

You’ve no doubt come across times when the finance team, for example, thinks that they’re measured on how many phone calls they’ve made or e-mails they’ve sent to remind people to pay their bills; but in fact their ultimate performance objective is how much money is in the bank. Again, it’s up to you, the boss, to ensure that the appropriate work is going on in order to meet your key performance indicators.

You’ve done all this, but one department is still ambling? Well, I’m a firm believer that a fish almost always rots from the head. In the event that you have to get rid of a department head, you will probably see an almost immediate uplift in morale among the remaining staff.

Unfortunately, you, the boss, are usually the last person to realise when a person has to go. You may well have been made aware of it by other directors but, if there is any uncertainty about it, you will have wanted to give the person a chance.

Be sure about what you’re going to communicate to the rest of the department, before you release anyone. And be very careful about how, when and to whom you talk about it. And, if you’ve decided that someone has to go, I strongly believe that you must allow them to retain their pride. Be generous in your offer. And don’t be critical of them.

The trick is never to get into this position. Pay continual attention to management. Spot problems early. Departments don’t just under-perform on their own and most people want to do a good job. Go to great lengths to appoint the right people. If you do all this and still have an under-performing department, it’s probably you who’s guilty of incompetence.

Originally published in May 2003. See also our profile of Simon Worth here.

Related tags: team spirit, sales, motivation, simon worth,