Unlocking Potential: Why a Balanced Diagnosis Is the Secret to Solving Underperformance

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Let’s be honest, no leader likes to deal with underperformance. It’s uncomfortable, tricky, and often layered with assumptions. But here’s something powerful to consider: what if that drop in performance isn’t the problem itself, but a signal pointing to something deeper?

Welcome to the world of balanced diagnosis, a thoughtful, people-first approach to underperformance management that gets to the real “why” behind the issue.

What Underperformance Is Really Telling You

Underperformance isn’t always about lack of effort. It’s a complex mix of factors that can exist at multiple levels:

  • Individual: Are they dealing with a skill gap, burnout, motivation dips, or simply in the wrong role?
  • Managerial: Are expectations clear? Is there effective feedback, support, or guidance from leadership?
  • Organizational: Are team roles unclear? Are outdated processes, structural bottlenecks, or a rigid culture slowing people down?

When we pause and explore these questions, we go from managing symptoms to solving root causes, like a true people-centered leader

Meet Carol: A Story of Potential Rediscovered

Take Derek, a senior manager who was ready to let go of Carol, a longtime team member whose performance had dipped. Frustration was high. But instead of reacting, Derek opted for a balanced diagnosis.

Through open, empathetic conversations, Derek discovered that Carol wasn’t checked out, she was overwhelmed by a bigger workload and lacked training on a new system. Her previous manager hadn’t prepared her. With support and the right tools, Carol bounced back. Her performance soared, and so did her confidence.

It wasn’t about fixing a person. It was about uncovering what was holding her back.

3 Thoughtful Steps to Diagnose Underperformance

  1. Don’t Assume, Be Curious: What you see isn’t always the full story. Underperformance is often just the surface.
  2. Zoom Out, Not Just In: Look across individual, managerial, and organizational performance issues to spot interdependencies.
  3. Start with Empathy: Create a space where people feel safe to speak honestly. Real solutions start with real conversations.

The Long Game: Stronger Teams, Healthier Culture

When you shift from quick fixes to thoughtful diagnosis, something amazing happens: employees feel seen, teams regain momentum, and workplace productivity rises. That’s the essence of true leadership development, the kind that builds trust and transforms team

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