Glossary

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Performance Improvement Plans (PIP)

An official warning to a sales rep that’s underperforming and needs to improve.

Performance Improvement Plans, or PIP for short, are an official warning to a sales rep that’s underperforming and needs to improve. PIP's aren't unique to sales but are especially suited for aiding in the resolution of sales issues since most of what we do in sales is easily quantifiable. Give PIP's to underperforming reps as a last chance to improve before termination.

Performance improvement plans do several things:
1. Notify reps that they're underperforming
2. Highlight the area(s) where a rep is underperforming
3. Demonstrate a plan for the rep to resolve their underperformance issue(s)
4. Provide written proof and directions for all of the above

PIP's are important to management and underperforming reps are on the same page about where they stand currently vs. where they need to be, how to from A to B, and the consequences for not doing so.