What performance affects
Performance should directly and transparently influence:- Promotions — A-players and strong above-bar performers move up; underperformers do not until they meet the Talent Bar
- Salary increases — Tied to grade and trajectory
- Equity bonuses — Meaningful for A-players; scaled or absent for underperformers
- Exits / performance improvement plans (PIPs) — Underperformers get a clear path to improve or to transition out
Why this matters
If performance does not materially affect outcomes, the organisation will not become high-performance.The Talent Philosophy is A-player centric: we retain and promote top talent and exit underperformers quickly. That only works if:
- High performers see that strong performance leads to promotion, comp, and equity
- Above-bar performers see a credible path to A-player through development and outcomes
- Underperformers see that low performance leads to PIP, role change, or exit—not to the same rewards as everyone else
How outcomes are delivered
- Grades are final after Calibration and leadership approval.
- Managers communicate grades and outcomes in Step 3 of the Quarterly Cycle.
- HR / comp / talent teams use grades to implement:
- Salary and equity changes
- Promotion and level changes
- PIPs and exit processes
Connection to the rest of the system
- Philosophy — Make performance matter: incentives and consequences are explicit.
- Framework — Scorecards and the Talent Bar produce grades that justify these outcomes.
- Process — Roles and ownership ensure managers deliver feedback and that comp/HR execute on the approved grades.