How do you balance empathy and accountability when dealing with underperforming portfolio company employees?

Emphatize with the team not the situation. A core team which eats-sleeps-drinks the business they are building, might lose sight of bigger picture while solving smaller issues that seem massive due to their proximity in dealing with it on a daily basis. Help team pull up the socks, mentor them to let smaller issues die its own death and bring accountability for the larger goals. When the board hand-holds the founder and team and re-aligns the goals to pursue and become accountable for, it reignites the team.

Todo mundo merece uma segunda chance. Mas precisamos saber alinhar bem as expectativas, deixar claro quais são as prioridades e fazer um plano que tenha metas que nos permitam saber se estamos no caminho certou no não no dia a dia. Geralmente existem vários fatores para um fracasso de uma startup, como uma não boa validação, problemas de time, timing de mercado, concorrência, legislação, modelo de negócios inconsistente, distribuição ineficiente. O ideal é escolher um problema por vez para atacar e buscando se fortalecer cada vez mais no próximo passo. Envolver o time é fundamental, já que o maior vilão de qlqr empresa é que o time não cresce na mesma necessidade que o negócio precisa!

Low performance is always a consequence of a deeper issue, depending on the impact of the investment on the portfolio, you may find yourself really digging into company's dynamics and operations to find the issue. Sometimes an outsider look can find issues that insiders cannot see.

Dive deep to uncover the real reasons behind underperformance. Is it a skills gap, unclear expectations, or perhaps external pressures? For example, if an employee is struggling due to outdated tools, providing the right resources can turn things around. Understanding these issues is like being a detective—solving the mystery ensures you're addressing the right problems, not just the symptoms. Empathy here means listening and responding with actionable solutions.

Engage the underperforming employee in a sincere conversation to start. Ask them about any challenges they're facing, whether it's personal issues or work-related problems. Show genuine concern and let them know you're there to support them. Listen carefully and make them feel understood and valued. Meanwhile, get feedback from their colleagues and supervisors to see if there are any recurring issues or patterns.

Set SMART goals—Specific, Measurable, Achievable, Relevant, and Time-bound—to give employees a clear roadmap. Imagine telling someone to "improve," versus "increase customer satisfaction scores by 10% over the next quarter." The latter provides clarity and direction. When expectations are transparent, it's easier to hold people accountable, and they know exactly what success looks like. It's a bit like playing darts—you need to see the target to hit the bullseye.

Empathy and accountability hinge on proactive feedback and real-time performance tracking. Encourage leadership to maintain continuous dialogue and ensure resources align with employee goals. This approach preempts issues, supports development, and enhances retention, aligning with strategic objectives.

Think of support as the scaffolding that helps employees reach their potential. Offer tailored training, mentorship, or tools they need to succeed. For instance, if an employee lacks confidence in a new software tool, pair them with a tech-savvy colleague for hands-on learning. Regular check-ins ensure they’re on track and show you're invested in their growth. It’s like being a gardener—nurture your plants, and they’ll flourish.

Offer the help they need to improve, whether it’s training, mentorship, or extra resources. Show them that you're committed to their success and ready to support them every step of the way. Regularly check in to see how they’re doing and if they need anything else. Your encouragement and support can be a huge morale booster. It shows them that they are not alone in this journey.

The best way to support your portfolio companies employees is through your actions. Show that you care about them by having an honest townhall with them. Listen to their concerns and find ways if you can help them with mentoring, guidance on specific topics related to their jobs such as Sales, Product Mgmt, Marketing etc. Also make sure you have a word with the founders to ensure their employees have a proper work-life balance and dont burn out in the pursuit of growth. Remember their birthdays, anniversaries and wish them on special occasions to make them feel appreciated and wanted.

Create a safe and open environment where the employee feels comfortable sharing their thoughts and concerns. Encourage honest communication and be an active listener. Let them know their feedback is valuable and that you’re there to help them overcome any obstacles. Regular one-on-one meetings can foster this kind of open dialogue. This ongoing conversation can lead to a better understanding and quicker resolution of issues.

Create a culture where employees feel safe to speak up. Open-ended questions like, “What’s challenging for you right now?” can uncover hidden obstacles. By fostering honest conversations, you’re not just solving problems—you’re building trust. This isn’t just about feedback; it’s about making them feel heard and valued. Think of it as installing a suggestion box that actually gets opened and actioned upon—everyone’s voice counts.

Balancing empathy and accountability with underperforming portfolio company employees starts with clear, open dialogue. Bad news must travel fast—addressing issues promptly prevents them from festering and shows you value transparency. While it’s important to understand and support employees facing challenges, accountability can’t be compromised. Set clear expectations, and work collaboratively to identify solutions. This approach fosters trust, ensuring that founders know they’re supported and responsible for their performance and outcomes.

To balance empathy and accountability with underperforming employees, create a “Learning Lab” where they can experiment with new skills and approaches in a low-risk setting. This lab should include peer feedback sessions and skills workshops tailored to their needs. Allow employees to set personal development goals and track their progress through this safe space, blending empathetic support with structured accountability. This method encourages growth by offering a hands-on, supportive environment while maintaining clear performance expectations.

Use regular reviews as both a compass and a mirror—guiding and reflecting progress. Implement bi-weekly check-ins to track goals, adjust strategies, and celebrate wins. Small victories, like hitting a short-term target, can boost morale and momentum. Accountability isn't about catching people out; it’s about providing the feedback loop necessary for continuous improvement. Remember, Rome wasn’t built in a day, but bricks were laid every hour.

Regular progress monitoring is crucial but should be integrated with dynamic feedback loops to adapt to changing business landscapes. Encourage management to leverage data analytics for tracking performance metrics, enabling nuanced insights beyond traditional review processes. Recognizing small wins is vital, but also ensure these milestones align with broader company objectives to maintain strategic coherence and motivate sustained high performance.

Strategic flexibility is key, but it's critical to approach adjustments with a data-driven mindset. Encourage management to make decisions based on quantifiable insights rather than intuition alone. Consider scenario planning to anticipate potential outcomes of strategic pivots, ensuring alignment with long-term business goals. Reassessing employee fit or management changes should be executed with sensitivity to maintain morale and protect the company's culture while driving performance.