DG-301c · Module 3
Performance Management System
3 min read
SDR performance management is a system, not a monthly one-on-one conversation. The system has three components: clear targets with transparent measurement, early warning indicators that detect underperformance before it becomes a pattern, and an escalation framework that moves from coaching to performance improvement to separation in a documented, fair process.
- Target Setting Set monthly targets at three levels: floor (minimum acceptable — below this triggers intervention), target (expected performance — hitting this earns full variable compensation), and stretch (exceptional performance — hitting this earns accelerators). The floor must be achievable by any competent SDR following the daily rhythm. The target should require strong execution. The stretch should require excellence.
- Weekly Performance Tracking Track weekly run rate against monthly target. An SDR at 40% of target after week two is unlikely to hit target without intervention. Weekly tracking enables early course correction: adjust territories, add coaching sessions, or reallocate accounts. Monthly tracking discovers problems too late to fix them.
- Performance Improvement Protocol Two consecutive months below floor triggers a 30-day performance improvement plan (PIP). The PIP specifies the exact metrics to improve, the coaching support provided, and the consequences of continued underperformance. Document everything. The PIP is not punitive — it is a structured attempt to close identified skill gaps. If the gaps close, the SDR continues. If they do not, separation is fair and documented.
Do This
- Set three-tier targets (floor, target, stretch) with transparent measurement
- Track weekly run rate to enable early intervention
- Use a documented performance improvement process for consistent underperformance
Avoid This
- Set one target and leave unclear what happens above or below it
- Wait until month-end to discover an SDR was behind pace all month
- Skip the improvement process and either tolerate underperformance indefinitely or terminate without documentation