The Ken Blanchard Companies® Situational Leadership®II model teaches managers that improvement in a direct report's performance requires them to provide the matching direction and support the employee needs. But what should managers do when faced with a decline in performance? Just as improvements in performance prompt forward shifts in leadership style, decreases in performance require a shift backward in leadership style.

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The Emotional Component
Experienced managers will tell you that dealing with declining performance is often a difficult and highly emotionally charged undertaking. If the situation has been going on for some time, there is probably a high level of emotional tension in the relationship between the leader and the direct report. We've found that a four-step framework can help defuse the emotional component of addressing declining performance.

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Step One: Preparation
The first step to addressing declining performance is preparation. Preparation should involve selecting a specific performance or behavior that you want to focus on. Do not attempt to address everything at once.

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Step Two: Discussion
Once you have done a thorough job of preparing, you're ready to schedule a meeting to discuss the situation. It is important to begin the meeting by stating the meeting's purpose and setting ground rules. This will ensure that both parties will be heard in a way that doesn't arouse defensiveness. People who have lost commitment and have serious performance or behavior issues are very likely to be argumentative and defensive when confronted.

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