Performance improvement plan (PIP)

What is a performance improvement plan (PIP)?

A performance improvement plan (PIP) is a written plan with specific goals and a deadline for an employee who is falling short. It names the gap, sets measurable expectations, lists the support the company will provide and sets a time frame, often 30 to 90 days. It also states what happens if performance does not improve.

Why it matters to a revenue leader

A PIP is a fork in the road for a seller and a test for the manager. Used well, it gives a struggling seller clear targets and real help. Used as a paper trail for a decision already made, it wastes months, and the rest of the team can tell. SHRM guidance places the PIP inside progressive discipline, typically after coaching and verbal warnings, and notes it documents that the employee was warned. For a revenue leader, the hard part is diagnosis first: a seller missing quota in an undersized territory needs a different fix than a seller who skips site walks.

A testing and inspection company's seller has reached 55% of quota for two straight quarters while peers average 95%. Coaching has not moved it. The manager confirms the territory and quota match peers, then issues a 60-day PIP with targets for proposals submitted and renewals closed, regular check-ins, and time in the field with a top seller.