The Hard Part of Leadership: Getting Performance Management Right

According to Inc, Daniel Chait of Greenhouse and Christie Horvath of Wagmo are sharing their approaches to rethinking performance management systems. The discussion focuses on building clarity, accountability, and trust within organizations to help employees grow while enabling companies to thrive. Chait brings over 22 years of technology entrepreneurship experience and has presented at prestigious events including the World Economic Forum at Davos. Horvath, who holds an MBA from Harvard Business School, founded Wagmo in 2017 after beginning her career at BlackRock. The conversation is moderated by Inc editor-in-chief Mike Hofman alongside recognition program manager Sarah Lynch and features insights from Capital One’s Ami Vedak about building products for small business owners.

The performance management evolution

Here’s the thing about performance management – everyone knows the old systems don’t work, but few companies have actually cracked the code on what does. Annual reviews? Basically useless. Stack ranking? Destroys team culture. So what are leaders like Chait and Horvath actually doing differently?

They’re probably focusing on continuous feedback rather than periodic evaluations. And building systems that actually help people grow instead of just judging them. The real challenge isn’t designing the process – it’s creating an environment where honest conversations can actually happen without people getting defensive.

The trust vs accountability balance

Look, this is where most companies stumble. You either get overly rigid systems that kill creativity, or you get vague “feedback cultures” where nobody knows what’s expected. The magic happens when you combine clear expectations with psychological safety.

Think about it – how can you hold people accountable without making them feel threatened? And how do you create trust while still maintaining standards? It’s not about being nice – it’s about being clear and consistent. When people know exactly what’s expected and feel safe discussing their challenges, that’s when real growth happens.

Making it work in reality

So what does this actually look like day-to-day? Probably regular check-ins instead of annual reviews. Clear metrics that everyone understands. And managers who are trained to have difficult conversations productively.

The companies that get this right understand that performance management isn’t an HR function – it’s a leadership responsibility. It requires investing in manager development and creating systems that support ongoing development rather than just evaluation. And honestly, that’s where most organizations fall short – they design great processes but don’t equip their managers to execute them effectively.