Is this a complete performance management system?

No. These are principles and mental models, not a turnkey system. They are designed to challenge how you think about performance and to provide anchors when designing or evaluating your own approach.

How does the 100% capacity model change day-to-day management?

It shifts the conversation from 'why aren't you performing?' to 'what's consuming your capacity right now?' This empathy-first approach often uncovers solvable blockers rather than labeling someone as underperforming.

Where does the Three Strikes formula come from?

It originates from game theory regarding breeding trust in human systems. The same principle is illustrated in Nicky Case's interactive game 'The Evolution of Trust'. The formula provides predictable consequences which paradoxically create psychological safety.

What about performance in remote or hybrid teams?

Lousy management, improper operating models, lack of strategically aligned recruiting practices, and poor culture breed lack of innovation and loss of productivity, regardless of where people sit. Start by reviewing your operating model and culture, not your office policy.

How does onboarding connect to long-term performance?

Data consistently shows that employees who rate their onboarding experience highly are significantly more likely to be reviewed as high performers later in their tenure. Investing in onboarding is investing in future performance.

Can tools and AI replace the need for human care in management?

No. You can bring personal development tools, performance frameworks, and AI to support the endeavor, but if the people you report to don't care about you personally, nothing makes up for that. The tools amplify care; they do not create it.

What is KTLO and why does it matter for performance reviews?

KTLO stands for 'Keeping The Lights On'. It represents maintenance, interruptions, and operational work that does not push things forward but is necessary to keep the business alive. OKR-based performance systems often miss this work entirely, unfairly penalizing the people who do it.

Back to Resources Original article

Insight · Performance & Leadership

Thoughts on Performance

Eight principles for thinking about performance holistically: from the 100% life capacity rule and game-theory trust formulas, to why high performers are made through onboarding, not born through talent.

Too long; did read

•People have 100% total life capacity. If personal matters take 60%, only 40% remains for work. The split is never static.
•High performers are made, not born. Stellar onboarding experiences correlate with high performance reviews later.
•The Three Strikes formula from game theory: first mistake gets feedback, second is a serious warning, third is unforgivable.
•PIPs can work if the employee owns the goal-setting. Care for your people so they can leave but don't want to.
•No tool, framework, or AI can substitute for genuinely caring about the development of your people.

Eight Principles

Click any principle to explore the thinking behind it.

"High performers are not born. They are made."

"Caring about the development of your people cannot be substituted by any tool."

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Read the full original article on Just Thoughts #32 See also: Just Thoughts #31 — Performance Framework Reviewed

Thoughts on Performance

Too long; did read

Eight Principles

The 100% Life Capacity Rule

The Three Strikes Trust Formula

High Performers Are Made, Not Born

Everyone Should Know Where They Stand

PIPs Can Work (If Reimagined)

Caring Cannot Be Substituted

Hire for Growth Mindset

Mind the System, Not the Symptom

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Frequently Asked Questions

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