When the leader is the weakest link - what happens next?

In most organisations, managers are the linchpins of performance, culture, and employee engagement. But what happens when the people tasked with leading others start falling short themselves?

It’s an uncomfortable situation—after all, managers are often seen as the ones who fix performance issues, not the ones who have them. Yet, underperforming managers are more common than many leaders would like to admit. Whether it’s missed targets, poor team morale, or a lack of strategic thinking, the ripple effects can be significant.

So how do you address it without undermining authority, damaging morale, or creating a culture of blame? The answer lies in a balanced approach that combines clarity, support, and accountability.

Why managers struggle

Before jumping to conclusions, it’s important to understand why a manager might be underperforming. Common reasons include:

• Role misalignment: They were promoted for technical skills, not leadership ability.
• Lack of support: They haven’t received adequate training or mentoring.
• Burnout: They’re overwhelmed and unable to delegate effectively.
• Organisational change: Shifts in strategy or structure have left them unclear on expectations.
• Poor self-awareness: They may not realise their leadership style is ineffective.
• Personal challenges: Health issues, family stress, or other personal matters can quietly impact focus, energy, and performance.

Understanding the root cause is the first step toward a constructive solution.

The cost of inaction

Ignoring a struggling manager doesn’t just affect their own performance—it can drag down entire teams. Employees under poor management are more likely to disengage, underperform, or leave altogether. And when high performers exit due to bad leadership, the cost to the business is steep.

How to manage the managers with strategy

1. Start with data, not drama

Use objective data to identify performance issues. This might include:

• Team engagement scores
• Turnover rates
• Missed KPIs or project delays
• 360-degree feedback

Approaching the issue with facts rather than feelings helps keep the conversation constructive and focused.

2. Have the courageous conversation

Once you’ve identified a pattern, it’s time for a direct but respectful conversation. Frame it as a partnership, not a confrontation:

“I’ve noticed some challenges in your team’s recent performance. I’d like to understand what’s going on and how we can support you.”

This opens the door to dialogue rather than defensiveness. It’s also essential that these conversations—and any related performance discussions—are handled with strict confidentiality. HR and senior leaders must ensure that sensitive information is protected, shared only on a need-to-know basis, and managed in line with privacy obligations and organisational policies.

3. Diagnose the root cause

Ask open-ended questions to uncover what’s really going on. Are they overwhelmed? Lacking clarity? Struggling with a difficult team member? Sometimes, what looks like poor performance is actually a symptom of deeper issues.

4. Set clear expectations

Revisit the manager’s goals and responsibilities. Are they clear, realistic, and aligned with business priorities? If not, reset expectations and define what success looks like moving forward.

5. Provide targeted support

Support might include:

• Leadership coaching
• Time management training
• Peer mentoring
• Delegation workshops
• Mental health resources

Tailor the support to the manager’s specific needs and learning style.

6. Monitor progress and give feedback

Set regular check-ins to review progress. Celebrate small wins and provide constructive feedback when needed. Make it clear that improvement is expected—but also that support is ongoing.

7. Know when and how to make the tough call

If performance doesn’t improve despite support, it may be time to initiate a formal Performance Improvement Plan (PIP).  This step is essential for ensuring fairness and legal compliance. A well-structured PIP outlines clear expectations, timelines, and support. If there's still no progress, a role change or respectful exit—handled in line with Fair Work obligations—may be necessary.

Key takeaway tips for HR and leaders

Supporting underperforming managers requires a thoughtful balance of empathy, structure, and accountability. Here are some practical tips to guide your approach:

• Don’t delay: Address issues early before they escalate.
• Be curious, not critical: Seek to understand before you judge.
• Support first, then hold accountable: Balance empathy with expectations.
• Document everything: Keep records of conversations, plans, and progress.
• Lead by example: Model the kind of leadership you expect from others.

When managers thrive, so does the business

Managing underperforming managers is one of the trickiest challenges in HR—but also one of the most important. These are the people shaping your culture, influencing your teams, and driving your results. When they thrive, your organisation thrives. When they struggle, the impact is felt far and wide.

By approaching the issue with empathy, structure, and a commitment to growth, you can turn a difficult situation into a powerful opportunity—for the manager, their team, and your business.

Further information 

For assistance with your workplace matters, Members of Ai Group can contact us or call our Workplace Advice Line on 1300 55 66 77 for further information.

Employers can also access our extensive Optimising and Managing Performance topic for helpful resources.