The Power of Quarterly Conversations

Overview:

• Topic: The Power of Quarterly Conversations
• Time: 8-10 minutes
• Takeaway: Regular quarterly conversations create alignment, improve engagement, and build a culture of trust within teams.
• Tool: The 5-5-5 Tool (5 Core Values, 5 Major Roles, 5 Rocks)
• Tip: Schedule these conversations well in advance to build anticipation and preparedness.
• Try: Use the "What's Working? What's Not Working?" framework to guide the discussion.

***Would you rather learn from watching a video instead of reading? Click below!***

INTRO:

Imagine you are trying to lead a team of people who are not communicating well. What could you do to enhance their communication? One way is to sit down one-on-one with each leader and just listen! Help them feel seen, heard, valued, and understood. Listening is your superpower as a leader and manager! There are at least 6 things that you lose when you don't listen well. Which of these can you relate to?

1) Respect.

• You can come off as offending and undervaluing others. If you are not present but instead are distracted and/or disengaged while someone is speaking, it can be costly to your relational capital with them.

2) Time.

• You waste your time, their time, and potential other people's time that are in the meeting too. The content may have to presented again because you were not paying attention.

3) Clarity.

• When you are not listening, you are not clear on what the problem is. You cannot make a good decision until you know the facts. To know the facts, you must listen for them! This can create confusion, chaos, and conflict! And just think, all this can be minimized if you just focus your attention and engage in deep, active, and authentic listening!

4) Momentum.

• If you don't listen, you might jump to the wrong conclusion. You might present the wrong solution. You therefore move backward, not forward. You lose your momentum.

5) Understanding.

• How many times has the root issue of a conflict resulted from a simple misunderstanding? How do you avoid this misunderstanding? You guessed it! You must listen! As Stephen Covey says, "Seek to understand first, then to be to be understood." This requires sacrificial listening! You must put their needs, desires, and feelings above your own. You must step out of your own world and enter theirs.

6) Productivity.

• Lastly, if you don't listen, you have to repeat things, redo things, and reprioritize things. Listening well on the front end can save you productivity which I simply define as being effective (focused on the right things) and efficient (doing things right).

In the fast-paced world of business, it’s easy for leaders and their teams to lose sight of what really matters. The cost of not listening to your team AND not developing your team to listen to each other is painful. Urgent tasks, shifting priorities, and everyday demands can lead to misalignment, communication breakdowns, and disengagement. This is where the power of Quarterly Conversations comes into play. These are not just another leadership checkbox; they are the backbone of a healthy, thriving organizational culture. When done right, they become a cornerstone for clarity, engagement, and accountability.

WHAT:

A Quarterly Conversation is an intentional time to talk to your direct reports about what is working and what is not working. It happens once a Quarter. It is off-site. It is protected time. It is focused time. The ideal is if this is face-to-face. The areas you are both evaluating are 1) The Company Core Values, 2) Their Roles, and 3) Their Rocks. Use the 5-5-5 Tool as a guide. This meeting is not a performance review but rather an opportunity to create alignment, build trust, and solve issues proactively. It provides a safe space and place for an open and honest conversation. The end goal is to create safety which allows both parties to gain perspective and set clear expectations.

WHY:

If you are like most bosses, you are afraid to have a real conversation with your direct reports. It’s easier to avoid conflict. You also may not even know how to have a Quarterly Conversation or have proper training for generating feedback. According to the book "How To Be A Great Boss", here are 6 common excuses (p. 112). Which of these can you relate to?

1. I talked to my people all the time…
2. I already have a meeting with my people every day…
3. I don’t know when I’ll find time to meet…
4. I don’t want them to bring me problems. I only want solutions...
5. I’ve been talking, but they’re not listening to me…
6. Every 90 days is too much…

The solution?

As the leader, learn how to have a Quarterly Conversation with each of your direct reports. Be consistent, be curious, and be courageous! Take action then review and refine this Management Practice. The more you embrace and do this Management Practice, the better you will get at it!

One of the biggest reasons this matters so much is that managing your people is the root of Team Health! Read this quote below slowly a few times:

“Not finance. Not strategy. Not technology. It is teamwork that remains the ultimate competitive advantage, both because it is so powerful and so rare… If you could get all the people in your organization rowing in the same direction, you could dominate any industry, in any market, against any competition, at any time.” – Lencioni (The Five Dysfunctions of a Team p. vii)

*Quick Resource - FiveDysfunctions.pdf

The ultimate competitive advantage is team health. If you can work better as a team with each of your direct reports you will make more positive impact and as a result be more profitable as a company! Check out this short video: (2:28min)

Here are some additional reasons on why this matters so much to effective leadership and management of your team:

1. It allows you and your team to provide each other with open, honest, and clear feedback.
2. It allows you to develop them, empower them, and coach them to become better for the greater good of the company.
3. It allows you and your direct report to be on the same page and to stay connected with you.
4. It has a direct impact on employee engagement and commitment. If a direct report does not understand the role they have and the importance of what they do each day, they will become more disengaged. *See below for stats
5. It’s an opportunity for them to feel valued, heard, seen, and understood.
6. Having a 90-day check-in allows you and your team to be 100% aligned around the vision and helps them understand that they are a key part of the team and have an important role for the greater good company.
7. You’re showing that you care by giving them your undivided time and attention. This helps them understand the culture of the company.
8. It’s also an opportunity for them to help you as a leader, manager and boss.
9. It’s an opportunity for there to be re-clarification around expectations, communication, and preferences!
10. It allows both sides to make course corrections as needed!
11. It’s a proactive approach to develop and build your team!

Finally, here is another reason this matters so much: employee engagement. This matters because you are trying to create better work engagement! Here are the facts:

• 87% of employees are not engaged at work
• 39% of employees have no idea what their company’s goals and objectives are
• 47% don’t know the state of their company’s performance
• 44% don’t understand how their role helps the company meet its goals

80+ Employee Engagement Statistics, Data, and Research (2023) | GenesisHR Solutions

When employees are not engaged and when they don't know how what they do matters and ties into the overall plan of the organization, you have gaps in accountability and team health suffers. Check out this 1:12min video

HOW:

#1) Schedule Well in Advance:

Put Quarterly Conversations on the calendar for the entire year to avoid scheduling conflicts and demonstrate commitment. This builds anticipation and gives both parties time to prepare.

#2) Prepare Using the 5-5-5 Tool:

Review the 5 Core Values, the 5 Roles, and the 5 Rocks before the meeting.

• Core Values: How is the employee embodying these values? Get them to think through that same question. Consider having them do a People Analyzer on themselves.
• Five Major Roles: What are their primary responsibilities, and how are they executing them?
• Rocks: What are their quarterly goals, and how much progress have they made?

#3) Start with “What’s Working?”

Invite your direct report to share their wins. Let them go first! Listen actively, celebrate achievements, and understand what led to their successes. At least focus on these three questions:

1 - What are you most proud of from the last quarter?

2 - What processes are working well for you?

3 - How have you overcome obstacles?

Additional thoughts:

Ask them this question and generate answers first. Then share with them your answers. Consider looking at their accomplishments, tasks, procedures, and whatever they think is going well in the organization and with you as their boss. Listen very well and seek to understand. Help them feel understood. Provide space and place for them to open up.

Possible questions:

• What else did they accomplish in the last quarter?
• How did they accomplish this?
• What additional processes or procedures are working really well?
• What additional obstacles did they have to overcome and how did they overcome it?
• Who was most helpful to them in overcoming those obstacles?
• Do they feel they’re working on the right things in the right way at the right time with enough bandwidth?
• Do they feel appreciated for the work that they do?
• Have you provided them with the tools that they needed these past 90 days?
• Have you kept the expectations clear?

After they go, now it’s your turn to provide some specific praise and positive feedback! Be sure when you share that you thank them and recognize them for specific behaviors, progress, and accomplishments. Tell them how much you appreciate them when they completed that one project. Ask them how their experiences have prepared them to take on larger projects. Consider asking them about their passions and their personal life. Acknowledge that they are hitting their stride in their current position. Let them know how their contribution is helping the department and ultimately the organization meet its priorities.

#4) Provide Specific Praise:

Avoid generic feedback like “You’re doing great.” Instead, say, “I really appreciate how you handled the client project last month. Your proactive communication kept everything on track.”

#5) Transition to “What’s Not Working?”

Create a safe space for honest feedback. Allow the employee to express challenges and frustrations without interruption. Use open-ended questions like “What obstacles are you facing?” or “What would help you perform better?” Ask them this question and generate answers first. Then share with them your answers. Consider these tips:

• Let them speak freely.
• Make sure they know it is a safe environment where they can be open and honest.
• Just listen and let them pour out.
• Don't fill the silence, sit it in. Let them process and think.
• Ask "What else?" or respond with “Say more…”
• If appropriate, help them identify the root issues by digging with them to the root cause. Then problem-solve together!
• Help them identify which issues matter most to them and start there.
• Remember: the people who have enough courage to raise issues actually care most about the organization. They are probably the most loyal. Those who are most willing to tell you what's NOT working are those above the bar. They are generally great people.
• Don't TELL them what's not working, ASK them!
• Seek to understand the issue! Ask “What’s the issue in 1 sentence?”

If you don't ask about issues and problems, they might not bring them up. Here is why:

• They are afraid of the upper management.
• They don't want to be reprimanded or fired.
• They believe upper management is not trustworthy.
• They think that upper management does not have their best interest in mind.
• They don’t feel it is a safe and healthy environment.
• They feel open and honest feedback is not welcome.
• Also they are apathetic - when they raise issues nothing gets solved. It stays the same.
• They often feel not heard, valued, seen, and understood – so why bring something up?

#6) Categorize Issues:

When they share the "real issue" listen for the following:

1. What process is broken?

2. How well do they understand the root cause?

3. Was the solution to the problem directly within their control?

4. Did they have the responsibility, accountability, and autonomy to act?

5.. Did they plan well and fail to execute?

6. Did you fail them in any way?

7. Did you provide them with the necessary tools to succeed?

As you listen, make a list. Sort the issues into three categories on that list:

Category #1 - Issues You Must Solve: If a problem requires your authority or resources, take responsibility. Help them be successful! Show them you care by taking action and resolving that issue. There are some issues that MUST get resolved! To do that, you may have to work with other department leaders or the owner.

Category #2 - Issues They Must Solve: Empower the employee to own and resolve their challenges. Apply the 1-3-1 Rule here! Ask questions to help them dig deep and uncover the true root issue. Then ask questions to empower them to come up with 3 ideal solutions. Then, ask questions to help them accept ownership on what the 1 solution is that they would take it they were in complete control. Empower them! Coach approach them! Don't take THEIR monkey on your back!

Consider these tips:

1) Agree on a timeframe for solving the issue

2) Agree on an exact plan of how THEY will solve it.

These two tips will help you manage their expectations.

Category #3 - Issues That Cannot Be Solved: Be honest and clear about limitations. Provide context and clarity. These are the MOST frustrating to bosses because it is usually a case of whining and complaining (123). Most issues brought up in a Quarterly Conversation fall into this category. Remember these tips:

- They must be acknowledged!

- Be able to say something like, "I hear you and I know it's an issue I was driving you crazy. What I need you to understand is that the issue that you're describing exist for the following reasons [reasons] and it's not going to change. I just hope you can live with it even though I know you don't agree with it." (124)

- If they are the Right Person in the Right Seat they should have the humility to respond by saying "I understand and can live with it. Thanks for listening." (124).

For additional thoughts, check out The Quarterly Conversation – What’s Stopping You? (2min) by Gino Wickman

#7) Set Clear Action Steps:

• Document the agreed-upon actions, set deadlines, and define responsibilities.
• Be sure to follow up regularly to maintain accountability.
• Both of you should walk away being aligned on what each will focus on over the next 90 days until the next Quarterly Conversation.

#8) Ask for Open and Honest Feedback on How You Can Improve As Their Boss:

• Ask them for specific feedback. Tell them you want to be a Great Boss to them!
• Again, reemphasize you want the facts…
• Help them attack the problem not the person. Don’t take it personal! Feedback is a precious gift! Use it!
• Encourage them to speak freely and openly.
• Help remind them this is a safe place, for the greater good, you want them to tell you what you need to hear, not what you want to hear.
• If you get stuck, use the 5 Leadership Practices and 5 Manage Practices Checklist as a guide.
• Have a humble mindset that is open, non-defensive, and curious. Do you really want to get better? Listen and take notes!

BONUS #9) End with Generating then Giving Feedback:

When you end the Quarterly Conversation, do a quick check-out. Take 3-5min and reflect on these questions. Then share them openly with each other.

• A) How are you feeling?
• B) What did you learn today? (In general, about yourself, about the other person)
• C) What did you do well in today's Quarterly Conversation?
• D) How can you improve for the next Quarterly Conversation?
• E) What did your manager/direct report do well in today's Quarterly Conversation?
• F) How can your manager/direct report improve in the next Quarterly Conversation?
• G) What was your highlight from today's Quarterly Conversation?

Q&A:

Q: What about the Annual Performance Review?

A; The annual review SHOULD be clearly documented by both parties, signed, and placed in a file that that both parties can go and look at it. The recommendation for this is to do 3 Quarterly Conversations, and 1 Annual Review per year. Do not discuss pay raises and other changes in compensation during the Annual Review. Do that during a Performance Review of some sort. Here is a simple format to use from page 128 in How To Be A Great Boss:

For additional thoughts, check out this article:

Kill the Annual Performance Review? (2min) - Focus on instant 24-hour feedback 365 days a year instead!

Q: Why is it important to recognize and reward team members quickly and consistently?

A: People have a deep desire to be acknowledged and appreciated. Timely recognition enhances the impact of feedback and reinforces positive behavior. As a leader, offering specific, quick, and consistent recognition helps build a culture of appreciation and accountability.

Q: What are three practical tips for effective recognition and rewards?

Tip 1 - The 24-Hour Rule:

• Provide both positive and constructive feedback within 24 hours. The longer you wait, the less effective it is.
• Follow the principle: “Publicly praise, privately pursue.”

Tip 2 - Public and Private Recognition:

• Criticize privately and praise publicly.
• Use a coaching approach to generate meaningful feedback

Tip 3 - Be Clear on Your Role – Boss vs. Buddy:

• Understand how your team perceives you.
• Stay clear on your role as a leader while still showing appreciation.

Q: What are some creative ways to recognize and reward your team?

• Be specific, consistent, and timely.
• Use multiple channels: Say it, Write it, Gift it.
• Consider involving their loved ones in the recognition.
• Explore resources like 1501 Ways to Reward Employees for fresh ideas.

Q: What is the 'Three Strike Rule' for managing performance issues?

Strike One:

• Meet with the person, identify the issue, and set a clear course for correction.
• Use the People Analyzer tool to clarify expectations and document the conversation.
• Involve a third party to witness the meeting.
• Give the employee 30 days to resolve the issue and set a follow-up meeting.

Strike Two:

• After 30 days, review their performance again using the People Analyzer.
• If performance has improved, celebrate and move forward.
• If not, identify the remaining issues, create a new plan, and set another 30-day timeline.
• Document the feedback and involve a witness.

Strike Three:

• If the issue is still unresolved, it may be time to terminate the employee.
• Prepare by having at least three data points and specific examples for each issue.
• This helps eliminate biases and shows that the problem is not isolated.
• Ensure the employee acknowledges the issue and establish a clear action plan if there’s a path forward.

Q: What’s the benefit of the 'Three Data Points' approach in difficult conversations?

A: Having three specific examples for each issue prevents dismissal as a coincidence or bias. It solidifies that the problem is a pattern and not an isolated incident, leading to clearer and more objective decisions.

Final Thought on Recognition:

"Great managers review, recognize, and reward consistently. What gets rewarded gets repeated." Implementing these strategies will not only boost team morale but also create a structured, fair approach to managing performance and accountability in your organization.

PRO TIPS:

• Practice: It will take time just like anything worth doing. Just like riding a bike or swinging a golf club. It takes repetition. Practice is the key!
• Be present: Be patient. Be a great listener. Be curious. Be compassionate. Be with them!
• Go Off-Site: Meeting outside the office reduces distractions and encourages open dialogue.
• Be Vulnerable: Share your own challenges and ask for feedback to build trust. Leaders set the tone. They lead by example. They demonstrate vulnerability before asking for it. Build trust by modeling this. Check out this short 2:10min video on the value of trust as the building block.

• Stay Consistent: Make these conversations non-negotiable every 90 days.
• Prioritize AND Protect This Time: Plan WELL in advance and really prioritize this meeting. Protect it. Don't cancel it!
• Note Taking Is Helpful: Take notes primarily for yourself not for them. Encourage them to take notes as well. Tracking notes from conversation to conversation will enhance the communication and care factor and build relational capital.
• Simplify the Approach: Keep the meeting informal yet focused. The goal is to foster an honest, meaningful exchange.
• Be Clear: This is not a performance review. It’s not tied to a bonus structure or a time to deep dive every aspect of their day-to-day performance. 
• Keep it Relaxed: You will be nervous, and they will be nervous on the first few. That is okay. Call out the elephant in the room. Your communications will be more effective if you’re both relaxed.
• Start Off With Context: Consider saying something like “We are meeting to make sure that you and I are always on the same page and keeping expectations clear. I want to meet with you every three months. This is an opportunity for us to talk where we won’t be interrupted or distracted.” (How To Be A Great Boss, p. 116)
• Talk With Them Not At Them: It’s a conversation. It is not a performance review or a 3-strike meeting. It's not a lecture. So use your two ears and one mouth approach - listen more and talk less. Show them you care by investing time into really hearing and understanding them!
• End With Clarity and Confidence: You should both feel crystal clear on what the next steps are and what each party should be working on over the next 90 days until your next Quarterly Conversation. You both should be feeling confident that positive change will happen. As Nick Bradfield says, "As you help them resolve issues, there should be a clear plan of next steps.  Focus on severe clarity (who is doing what and when)." (EOS Worldwide Article)

CHALLENGE:

Commit to scheduling your next Quarterly Conversation today. Take 30 minutes to prepare by reviewing your team member’s 5-5-5 and jotting down specific praise and questions to explore challenges. Aim to make this meeting a cornerstone of your leadership rhythm. Have at least 1 Quarterly Conversation with each of your direct reports THIS quarter!

FINAL THOUGHT:

"Remember, people will work harder for recognition than for money....Don’t underestimate the power of positive feedback." - page 117 in How to Be a Great Boss!

Thank you for taking the time to read this. If you found value in this article, please share it with your network. If you want to connect further, email me at charlie.rhea@eosworldwide.com, and we can set up a 15-minute connect call. If you know you want to start your EOS journey, reach out to me, and let's set up the free 90-Minute Meeting!

I am WITH and FOR you!

-Charlie #helpfirst

References and Resources:

Articles:

• A Simple Habit for Greater Employee Accountability at Your Company (5min)
• 5-5-5, It’s a conversation, not a review - EOS Worldwide (5min)
• Quarterly Conversations - become the manager your people deserve - EOS Worldwide (5min)
• Going Deep With The People Analyzer™ (5min)
• Kill the Annual Performance Review? (2min) - Focus on instant 24-hour feedback 365 days a year instead!
• The Quarterly Conversation – What’s Stopping You? (2min)

Books:

• Covey, S. R. (1989). The 7 Habits of Highly Effective People. Free Press.
• Heffernan, M. (2011). Willful Blindness: Why We Ignore the Obvious at Our Peril. Walker & Company.
• Lencioni, P. (2002). The Five Dysfunctions of a Team: A Leadership Fable. Jossey-Bass.
• Paton, M., & Wickman, G. (2022). Process! How Discipline and Consistency Build Success. EOS Worldwide.
• Wickman, G. (2017). How to Be a Great Boss. BenBella Books.
• 1501 Ways to Reward Employees for fresh ideas.

Videos:

• LMA Pro Tip - The 1-3-1 Rule (8min)