The Hidden Cost Of Managerial Debt - PeopleStorming

Managers often reach a breaking point and consider a PIP as a quick fix, but that decision usually reflects a deeper accumulation of managerial debt. Managerial debt is the hidden cost of avoided conversations-cancelling 1-on-1s, softening critical feedback, and assuming people should know how to work without clear guidance. Those shortcuts feel like short-term wins but they accrue interest, eroding team health and forcing painful interventions later.

The article lays out concrete patterns that signal debt: doing the work yourself because it's faster, vague frustration without documented expectations, and feedback amnesia where no specific written critique has been given in weeks. Each pattern shows how managers trade immediate speed for long-term friction, and why those habits eventually surface as performance crises.

To break the cycle, PeopleStorming proposes four practical tests. The Clarity Test asks whether anyone could read the written expectations and know exactly what success looks like. The Resource Test checks if the employee has the same tools and bandwidth as top performers. The Signal Test confirms that the person has been explicitly warned in writing that their performance is at risk. Finally, the Blocker Test asks what the manager is doing that makes the employee's job harder. Running these tests forces managers to surface hidden debt before it becomes a PIP.

When debt is acknowledged, the conversation shifts from a punitive PIP to a partnership reset. By admitting unclear expectations and realigning resources, a manager either enables the employee to succeed or confirms that a formal PIP is a fair next step. The piece closes by suggesting coaching as a way to gain clarity on performance management challenges.