Performance Management for Small Companies: A System That Actually Works

The annual review cycle that large companies use was not designed for your stage. Here is a lightweight system for ongoing feedback, underperformance documentation, and decisions that hold up legally.

Most founders avoid performance conversations until the situation is already bad. The result is either tolerating underperformance until it damages the team, or making a termination decision without the documentation to support it. Here is a system that prevents both problems.

Why performance management fails at small companies

The core components

The conversation most founders avoid

What legally defensible documentation looks like

When to involve HR