How Do I Handle Underperforming Area Managers Without Demotivating Them?

In today’s newsletter, we’re tackling one of the toughest leadership challenges:

What do you do with an underperforming Area Manager without crushing their confidence?

Because let’s be honest…

Avoiding the issue won’t fix it. Smashing someone’s spirit won’t fix it either.

Why This Matters

Your underperformers are costing you:

• Lost sales

• Low team morale

• Frustrated franchisees

• Sleepless nights for you

But the worst part?

When you let things slide, your A-players start to wonder why they’re working so hard.

Underperformance, when ignored, spreads like a virus. Quickly.

As a leader, you either confront it or you silently condone it.

Common Fixes That Don’t Work

Here’s how most leaders get it wrong:

• Hinting instead of saying it straight

• Avoiding feedback to keep the peace

• Micromanaging instead of coaching

• Dragging it out for months hoping they magically improve

The result?

Confused managers. A frustrated team. And zero momentum.

Fixes That Do Work

Here’s the approach I teach in my Multi-Store Leadership Programme. And it works:

  1. Separate the person from the problem “This isn’t about you. It’s about a specific result that needs to change.”
  2. Start with belief “I believe in your potential. I wouldn’t be having this conversation if I didn’t.”
  3. Be clear on the gap “Here’s where we are. Here’s where we need to be. Let’s close that gap together.”
  4. Coach, don’t criticise Ask questions. Get them thinking. Co-create the solution. Ownership always beats obedience.
  5. Give them a win Help them score one early win. Momentum fuels belief.

Real Talk from the Field

One of the leaders I work with had an Area Manager who was dragging results down for three quarters straight. Instead of replacing them, we applied the five-step approach mentioned earlier. Within just six weeks, mystery shopper scores increased by 15% staff turnover dropped noticeably, and sales rose by 8% despite the tough economic climate. This turnaround happened because the leader had the courage to confront the issue and the skill to handle it in the right way.

Your Turn

Got an underperformer on your team?

What’s one conversation you’ve been avoiding?

It might be time to have it.

Just make sure it’s direct and supportive.

You’re not here to manage people’s emotions.

You’re here to raise their standards with heart.

I look forward to sharing more with you soon.

Cheers,

Larry

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