Why performance management matters at the executive level

How to go about getting the best from your top leaders

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.

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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.