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.

  1. 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.
  2. 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.
  3. 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