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The TroopHR Podcast

Ep 5. The Cost of Tolerating Underperformance with Melanie Naranjo, VP of People at Ethena

Mar 10, 2024
Melanie Naranjo, the VP of People at Ethena, shares her expertise on performance management and accountability. She discusses the high costs associated with tolerating underperformance, emphasizing the need for clear definitions and honest feedback. Melanie explores strategies for fostering a culture of experimentation rather than perfection, enabling teams to thrive. Additionally, she highlights the importance of engaging diverse learning styles for effective training and shares career insights that encourage community growth in HR.
25:25

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Effective performance management requires focusing on outcomes through specific questions, which helps evaluate employee contributions and avoid excessive empathy.
  • Tolerating underperformance negatively impacts not just individual employees but also high performers and overall organizational efficiency.

Deep dives

Defining Performance and Its Metrics

Performance can be defined as the value an employee contributes to their organization, with high performance indicating significant value addition and low performance resulting in value drain. Managers can effectively assess performance by asking three pivotal questions: whether the employee is making their work easier or harder, whether they would rehire them, and how they would feel if the employee resigned. This approach emphasizes focusing on outcomes rather than minute details, allowing managers to evaluate employees based on their contributions instead of getting lost in daily tasks. By prioritizing this framework, managers can avoid the pitfalls of excessive empathy that often leads to overlooking underperformance.

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