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How to Manage Underperforming Team Members

How to Manage Underperforming Team Members

Managing underperformance is one of the most important responsibilities of a Delivery Manager or Project Manager.

The goal is:

Improve employee performance

Protect delivery quality

Maintain team morale

Reduce project risk

Retain good talent whenever possible


In banking projects, underperformance can directly impact:

Production stability

Regulatory compliance

Release timelines

Customer experience



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Step-by-Step Approach to Managing Underperformance

1. Identify the Root Cause First

Do not assume laziness immediately.

Underperformance may happen due to:

Lack of technical skill

Poor banking domain knowledge

Personal issues

Low motivation

Unclear expectations

Work overload

Communication gaps

Wrong role assignment



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Banking Example

A developer repeatedly delays:

SWIFT integration tasks

API defect fixes


Manager investigates and finds:

Developer strong in UI

Weak in banking messaging standards


Root cause:

> Skill mismatch, not attitude problem.




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2. Use Data, Not Emotion

Always evaluate using measurable facts.


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Metrics to Review

Area Example Metrics

Delivery Missed deadlines
Quality Defect count
Productivity Story completion
Attendance Frequent absence
Collaboration Team complaints
Support Incident handling delays



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Example

Instead of saying:

> “You are not performing well.”



Say:

> “Three sprint stories were delayed, and defect reopen rate increased from 5% to 18%.”



This keeps discussion professional and objective.


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3. Conduct One-on-One Discussion

Private discussion is critical.


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Manager Should:

Listen actively

Understand challenges

Avoid public criticism

Show support

Clarify expectations



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Example Conversation

> “I noticed delays in recent API integration tasks. I want to understand what blockers or support you need.”



This creates trust instead of fear.


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4. Create Improvement Plan

Define:

Clear expectations

Measurable goals

Timeline

Support mechanism



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Example Performance Plan

Area Improvement Action

Banking Knowledge SWIFT training
Coding Quality Peer code review
Delivery Daily progress tracking
Testing Unit test coverage target



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Timeline Example

30-day improvement plan

Weekly review meetings



---

5. Provide Coaching and Mentoring

Many employees improve with guidance.


---

Support Methods

Pair programming

Senior mentor support

Technical workshops

Domain training

Shadowing experts



---

Banking Example

Junior developer struggling with:

AML rules engine


Manager assigns:

Senior AML SME mentor


Result:

Faster learning

Confidence improvement

Reduced defects



---

6. Monitor Progress Continuously

Track:

Sprint velocity

Defect reduction

Delivery consistency

Collaboration improvement



---

Example

Metric Before After

Story Completion 60% 90%
Defects 12 3
Reopen Rate 20% 5%



---

7. Give Continuous Feedback

Feedback should be:

Timely

Specific

Constructive

Balanced



---

Good Example

> “Your debugging speed improved significantly this sprint. Continue focusing on unit testing quality.”




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8. Escalate Only if Improvement Fails

If:

No improvement

Negative attitude

Repeated issues

Delivery risk continues


Then:

HR involvement

Formal PIP

Role reassignment

Resource replacement


may become necessary.


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Important Leadership Principle

Focus on:

> Correcting behavior, not attacking the person.




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Common Types of Underperformers and Solutions

Type Example Manager Action

Skill Gap Weak API knowledge Training
Domain Gap Banking process confusion SME mentoring
Low Motivation Minimal participation Career discussion
Communication Issue Poor stakeholder updates Coaching
Overloaded Resource Burnout Rebalance work
Negative Attitude Team conflict Counseling/escalation



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Real Banking Project Example

Situation

In a payment modernization project:

Senior developer repeatedly delayed sprint tasks

Production defects increased

Team frustration growing



---

Manager Investigation

Found:

Resource handling both:

Development

L3 production support



Actual issue:

> Over-allocation and burnout.




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Actions Taken

Resource Management

Reduced support allocation

Added backup support engineer


Coaching

Weekly technical reviews

Prioritized workload


Support

Flexible work schedule temporarily



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Result

Metric Before After

Sprint Delay Frequent Minimal
Production Defects High Reduced
Team Morale Low Improved
Resource Utilization 130% 85%



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PMP Perspective

According to Project Management Institute PMP:

Managing performance involves:

Team development

Conflict management

Motivation

Coaching

Performance assessment



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PMP Leadership Techniques

Technique Purpose

Coaching Skill improvement
Mentoring Long-term growth
Emotional Intelligence Understand behavior
Feedback Correct performance
Recognition Increase motivation
Conflict Resolution Improve collaboration



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What NOT to Do

Avoid:

Public humiliation

Emotional reactions

Micromanagement

Comparing employees publicly

Ignoring performance issues

Delaying difficult conversations



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Strong Interview Answer

> “I manage underperforming team members by first identifying the root cause using objective data and one-on-one discussions. In many banking projects, performance issues come from skill gaps, domain knowledge limitations, or over-allocation rather than lack of intent. I create a structured improvement plan with measurable goals, mentoring, training, and regular feedback. I continuously monitor progress and support the employee through coaching and realistic workload management. If performance still does not improve despite adequate support, I follow formal escalation or reassignment processes while ensuring project delivery remains stable.”

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