How to solve people problems using a values-performance matrix

Executive overview

People problems are the hardest part of scaling a business. Skills, experience, and track record don't predict performance — values fit does.

A simple two-axis matrix clarifies every people decision: does the person fit company values, and are they performing in their current role?

The core insight: a poor performer who fits your values is a role problem, not a people problem — move them before you lose them.

The two-axis talent matrix

• Vertical axis (primary): fit to company values and culture
• Horizontal axis (secondary): performance in the current role
• A-players sit top-right — winning and values-aligned; retain them
• Top-left (values fit, underperforming): coach or reassign before cutting
• Bottom-right (performing, no values fit): creating hidden damage; exit them
• Bottom-left (underperforming, no values fit): easy to delay, costly to keep; let go

Why values-fit outranks performance

• High performers who reject company values win through commotion — leaving messes and eroding culture
• Their results aren't sustainable; the collateral damage compounds over time
• A-players actively disengage when they work alongside people just "fogging a mirror"
• Letting go of low-fit, low-performers almost always frees capacity already there

Reassigning before firing

• A salesperson failing despite the right skills and background may have shifted values, not lost ability
• A direct conversation about motivation and what drives them now can surface the real issue
• Moving that person to a service role matched his new drive — he immediately thrived
• His replacement, hired with the right competitive motivation, succeeded in sales quickly
• The test: underperforming + values-aligned = explore a different role first