Promoting and Firing.
Part 4 of The Playbook Series. The system is built. Now run it. Performance reviews, promotions, terminations, salary structure, and the one thing you cannot afford to lose.
The Playbook Series
You have a mission. You have core values. You have competencies. Now you need to run the system. This is the part where most companies fall apart. Not because the system is bad. Because they overcomplicate it, skip it, or run it inconsistently.
Keep this simple. This can get complicated too fast. People start doing 360 reviews, peer feedback, self-assessments, manager-of-manager reviews. Before you know it, the review takes longer than the actual work.
Start lean. Once you have the initial system running, you can build on top of it. But first, make it work.
The Performance Review
Once you get your first employee, you run this after 30 days. After that, every 3 months. That is it. Four reviews a year per person.
The review has three parts. Goals. Core competencies. Role competencies. Nothing else.
Goals
Measurable. 2 or 3 per person. Specific to their role.
Core Competencies
Same for everyone. Same every review. Non-negotiable.
Role Competencies
Specific to the position. Changes with seniority level.
Goals
Goals are something you can measure. Not "do a good job." Not "try harder." Numbers. Percentages. Things you can look at and say: yes or no.
Sales Goals
Closing Rate
Average Job Value
Follow-Up Response Time
Mover Goals
Damage Rate
5-Star Reviews
On-Time Completion
Setting goals properly is a whole other topic. But for now, understand this: every employee needs clarity on what their goals are. They need to be motivated to achieve them. You need agreement and commitment. The goals need to be relevant to the position. And they need to be easy to measure.
Two or three goals. That is it. Do not give someone ten goals. They will focus on zero of them.
How to Score
Do not do this
Do not score 1 to 5. Do not use simple words like "Poor, Good, Exceeds." A number or a single word tells the employee nothing. What does a 3 mean? What does "Good" look like? Nobody knows. And two managers will score a 3 completely differently.
Instead, use descriptions. Each level tells the employee exactly where they are and what the next step looks like.
Where Is This Person Today?
Not there yet
Needs constant support and guidance to do this.
Getting there
Shows this sometimes but not consistently yet.
Solid
Does exactly what we expect at this level.
Already above this level
Ready for the next step.
Exceptional
One of the best I have seen at this. Sets the standard for the whole team.
This applies to both core competencies and role competencies. You score them. You give feedback. You write notes. Then you have a conversation.
What the Review Looks Like
This is not theory. This is a real document you can hand to every manager in your company.
Performance Review
Moving Company
Employee Name:
Mike Johnson
Position / Level:
Sales Rep / Mid Level
Review Date:
March 2026
Reviewed By:
Sarah (Sales Manager)
Goals
Goals set at the beginning of the review period. Circle the result.
Goal 1: Closing rate above 25%
Notes:
Currently at 27%. Consistent improvement from last quarter.
Goal 2: Average job value above $2,800
Notes:
At $2,650. Getting better at upselling packing but still leaving money on storage.
Goal 3: Average lead response time under 5 minutes
Notes:
Averaging 3 minutes this quarter. Best on the team.
Core Competencies
Apply to every person in the company. No exceptions. No levels. You either demonstrate them or you do not.
Core Competency
When something goes wrong in your area, you fix it. You do not wait. You do not blame others.
From value: Ownership
Expected from everyone. No exceptions. No levels.
Where is this person today?
Not there yet. Needs constant support and guidance to do this.
Getting there. Shows this sometimes but not consistently yet.
Solid. Does exactly what we expect at this level.
Already above this level. Ready for the next step.
Exceptional. One of the best I have seen at this. Sets the standard for the whole team.
Notes:
Handled the pricing error on the Thompson job without being asked. Called the client, fixed the invoice, updated the system.
Core Competency
Every decision considers the customer. Not just when it is easy. Every time.
From value: Customer First
Expected from everyone. No exceptions. No levels.
Where is this person today?
Not there yet. Needs constant support and guidance to do this.
Getting there. Shows this sometimes but not consistently yet.
Solid. Does exactly what we expect at this level.
Already above this level. Ready for the next step.
Exceptional. One of the best I have seen at this. Sets the standard for the whole team.
Notes:
Clients consistently mention Mike by name in reviews. Two clients this quarter specifically requested him for their next move.
Core Competency
If you said it, you do it. No excuses. No half-done work.
From value: Integrity
Expected from everyone. No exceptions. No levels.
Where is this person today?
Not there yet. Needs constant support and guidance to do this.
Getting there. Shows this sometimes but not consistently yet.
Solid. Does exactly what we expect at this level.
Already above this level. Ready for the next step.
Exceptional. One of the best I have seen at this. Sets the standard for the whole team.
Notes:
Reliable on commitments. One missed callback but he owned it and followed up the next morning without being reminded.
Sales Department — Role Competencies
Competency 1 — Handles Objections
When the customer pushes back, turns a no into a conversation.
Junior
Handles basic objections using the script. Knows the standard responses. Not confident yet on price pressure or unusual pushback.
Mid Level
Handles common objections confidently. Knows the standard responses. Struggles with unusual or aggressive pushback.
Senior
Handles any objection without losing the customer. Keeps the conversation going. Rarely needs to escalate.
Manager
Trains the team on objection handling. Listens to calls and coaches reps on exactly what to say and when.
Where is this person today?
Not there yet. Needs constant support and guidance to do this.
Getting there. Shows this sometimes but not consistently yet.
Solid. Does exactly what we expect at this level.
Already above this level. Ready for the next step.
Exceptional. One of the best I have seen at this. Sets the standard for the whole team.
Notes:
Handles aggressive pushback calmly. Turned two "we went with someone cheaper" calls into booked jobs this quarter.
Competency 2 — Follows Up
Keeps every lead warm. Never lets a serious prospect go cold.
Junior
Follows up when reminded. Still building the habit and the system.
Mid Level
Follows up consistently without being reminded. Has a personal system. Rarely loses a warm lead.
Senior
Follows up on every lead with the right message at the right time. Conversion rate from follow up is visibly higher than the team average.
Manager
Builds and enforces the follow up system for the whole team. Tracks who is following up and who is not. Makes it a non-negotiable.
Where is this person today?
Not there yet. Needs constant support and guidance to do this.
Getting there. Shows this sometimes but not consistently yet.
Solid. Does exactly what we expect at this level.
Already above this level. Ready for the next step.
Exceptional. One of the best I have seen at this. Sets the standard for the whole team.
Notes:
Best follow-up system on the team. Has not lost a warm lead in two quarters. Other reps are starting to copy his method.
When to Promote
Three consecutive good performance reviews. That is the rule.
If they have one that is not satisfactory, the count resets. You are looking for the next three in a row again.
Core competencies are the hard filter.
If someone is not solid on core competencies, the promotion conversation does not even start. That is a culture and behavior problem first. Fix that before you talk about moving up.
Once core competencies are solid, then you look at role competencies. All of them need to be at "Already above this level" before the promotion happens. And in the last three reviews, there should not be a single one where the employee scored less than solid.
Core competencies: Solid or above. No exceptions.
Role competencies: All at "Already above this level." Three reviews in a row not less than solid.
Then you promote.
Individual Timelines, Not Company Calendars
Some companies do promotions once a year. January. So if you are hired in June, you are going to wait a year and five months to be considered. That does not work. Today's generation does not like to wait that long if they are performing.
Make this specific to each employee. They join the company, you run performance reviews every 3 months, and you are looking for 3 consecutive good ones. A high performer who joins in March and crushes it can be promoted by December. Someone who needs a couple months to adjust might take a year. The system accounts for both.
High Performer
Hired March
30-day review: strong start
Q2 review: solid across the board
Q3 review: already above level
Q4 review: third consecutive. Promoted.
9 months to promotion
Steady Performer
Hired March
30-day review: getting there
Q2 review: improving, not solid yet
Q3 review: solid. Count starts.
Q4 review: solid again. Two in a row.
Q1 next year: third consecutive. Promoted.
12 months to promotion
When to Fire
If someone is underperforming, you coach them for 30 days. Clear expectations. Clear timeline. Clear consequences. If it is not corrected after 30 days, you let them go.
That is not cruel. That is honest. They knew the expectations from day one. They saw the competencies. They had the reviews. There are no surprises.
Core values are instant
If someone violates a core value, there is no 30-day coaching plan. Core values are not skills you develop. They are behaviors you either have or you do not. If someone lies to a customer, blames their crew for their own mistake, or consistently puts themselves before the client, that is a values problem. And values problems do not get better with coaching.
The Manager Problem
Here is the biggest problem you will face. Your managers are running this system. And people are inconsistent.
One manager is going to be super generous. Everyone on their team exceeds expectations. Another manager is going to be too strict. Nobody on their team ever scores above solid. Now you have two departments with completely different standards.
How to handle it:
Separate departments. Do not compare across them. A "solid" in sales and a "solid" in operations are scored by different managers with different standards.
Run the system on the managers first. They need to feel it on their own skin before they run it on anyone else. Consistent reviews for them before they review anyone else.
Add this exact issue to manager competencies. Rate managers on how consistently and fairly they run reviews. Make it a competency they are evaluated on.
Do not let managers review their own team without you reviewing the reviews. At least in the beginning. Calibrate.
Salary: Three Things, Kept Separate
Salary increases should never be one vague thing. There are three types. Keep them separate. When you mix them, nobody understands why they got what they got.
Thing 1: Inflation Increase
This is not a reward. This is not tied to performance.
Every person gets this every year. No exceptions. If you do not give at least an inflation increase every year, you are effectively cutting their salary. They are making less in real terms than the year before. They did not get worse. Your money got worth less. This is the minimum. It is not optional if you want to keep people.
Thing 2: Promotion Increase
Tied to the competency system.
When someone moves up a level, their salary moves with them. You should have a salary range for each level. Junior has a range. Mid Level has a range. Senior has a range. Manager has a range. When someone gets promoted, they move into the range of the next level.
Thing 3: Performance Increase
Direct bonuses based on results.
For instance, a bonus for every job booked. Or if they hit a closing rate over 20%, they get a 3% commission. In moving, pay-to-play is popular. They do this, they get this much. Whatever system you are running here is fine for now. The key is consistency. Everyone knows the rules. The rules do not change.
The danger zone
The mistake most owners make is they mix all three together. They give a raise when someone asks. They give a raise to avoid a difficult conversation. They give a raise because someone has been there a long time. None of those are reasons.
When you mix them, your best performers feel underpaid. Your weakest performers feel entitled. And you have no system. You want the system to push underperformers out by design. You need fresh talented people coming in at a steady rate. You need top performers to stay as long as possible. Mixing salary decisions makes both worse.
Watch Your Turnover Rate
Turnover rate is the percentage of your team that leaves or gets replaced in a year. The formula is simple. You have 20 people. 4 left this year. That is 20% turnover.
Track this separately for office and movers. You need a healthy turnover rate for both.
Above 15%: Red flag.
You have issues you need to fix. Run a survey. Find the problems. Get this down.
Around 10%: Healthy.
People are cycling through at a natural rate. Low performers leave. New talent comes in. The system is working.
Under 5%: Also a problem.
You do not have healthy turnover. Things stagnate. You are not bringing in new talented people. One of the traps companies fall into is extremely low turnover. It feels safe. It is not. It is how cultures go stale.
Protect the Culture at All Cost
Core values are not negotiable.
If you let this fail, there is no turning back. I do not have a single example of a company that managed to turn over the culture once it was lost. Once it is gone, it is gone for good. Employees start running the culture. And it is almost always toxic.
Put culture first. Even if it means working against short-term goals for the company. This is where your productivity comes from. Job satisfaction. Identity. The feeling that this place is different. That this place means something.
The moment you compromise on core values for short-term revenue, you send a message to every person in the company: the values were never real. And once people believe that, you cannot unbelieve it for them.
The Complete System
Mission & Vision
Why you exist. Where you are going.
Core Values
What behavior your mission demands.
Core Competencies
Same expectations. Every person.
Role Competencies
Specific to the job. Changes with seniority.
Performance Reviews
Every 3 months. Goals + competencies.
Promote, Coach, or Fire
3 consecutive good reviews to promote. 30 days to correct. Values violations are instant.
Performance reviews: 30 days for new hires, then every 3 months. Goals + core competencies + role competencies.
Score with descriptions, not numbers. "Solid" and "Already above this level" mean something. A 3 out of 5 means nothing.
Promote after 3 consecutive good reviews. Core competencies solid or above. Role competencies at "Already above."
Individual timelines, not company calendars. High performers move fast. Steady performers take longer. The system handles both.
Underperformance gets 30 days of coaching. If not corrected, they go. Core value violations are immediate.
Three salary types: inflation (everyone, every year), promotion (level up), performance (bonuses). Keep them separate.
Healthy turnover is around 10%. Under 5% stagnates. Over 15% means you have problems to fix.
Protect the culture at all cost. Once lost, it does not come back.
That is the whole system.
Mission. Vision. Core values. Competencies. Performance reviews. Promotions and terminations. Salary structure. Turnover tracking. It sounds like a lot. But it all started with one question in Part 1: what do we do, and where are we going? Everything else followed. Build it. Run it. Protect it. The companies that do this are the ones your competitors will never catch.
Series complete
The Playbook Series