How to Create a PIP Sales That Actually Works
Alex Zlotko
CEO at Forecastio
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Are your reps constantly missing targets even with all the right tools and resources? Even top-performing sales teams have periods where quota attainment dips below expectations. Whether you’re managing an underperforming rep or looking to elevate your entire team’s performance a well-designed sales performance improvement plan (PIP) can help overcome sales challenges and turn struggling performers into contributors.
From two decades of working with high-growth B2B sales organizations, I’ve seen firsthand how the right approach to performance improvement can turn sales teams around and boost quota attainment. In this guide, we’ll show you how to create and implement PIPs that work.
Table of contents:
What is a PIP in Sales
Before we get into the what is pip in sales and its components, let’s define what sales performance means.
Sales performance is how well your sales team is meeting their goals and quotas, which includes:
Revenue
Deals closed
Average deal size
Close rate
Sales cycle length
Sales velocity and more
You can read more about what key performance metrics to track and how in this article, which emphasizes the importance of using relevant metrics to assess and improve sales performance.
A sales performance improvement plan (PIP Sales) is a structured program to help reps bridge specific performance gaps and hit their quota. Sales managers play a key role in developing and implementing these plans by actively assessing underperforming team members, identifying performance issues, and providing guidance and coaching through a tailored action plan. While PIPs were once seen as corrective action, modern PIPs are collaborative tools that align individual performance with company goals through clear objectives, targeted support, and measurable outcomes.
Evolutions of Sales PIPs
The sales performance management landscape has changed a lot over the last decade. Traditional PIPs were seen as punitive, using generic templates that focused solely on numbers and rigid timelines. These old-school approaches created anxiety and resistance not motivation for improvement.
Modern sales organizations have reimagined the PIP process as a development opportunity. Instead of generic templates, they create personalized growth plans that take into account each rep’s unique challenges and learning style. The focus has shifted from purely numerical targets to a holistic view of performance that includes skill development, behavior change, and long-term career growth.
Most importantly today’s PIP plan have gone from manager-driven to collaborative. Sales leaders now work alongside their reps to identify challenges, set realistic goals, and create flexible frameworks that can adapt to progress and changing circumstances. This partnership approach has proven to be much more effective at driving long-term performance improvement.
When to Implement a PIP?
Before you start implementing a sales PIP, you need to identify when to use it for underperforming sales reps. Consider this example:
Jennifer, a Sales Director at a fast-growing SaaS company, noticed a trend with a rep who had previously been performing well and whose conversion rates had dropped 30% over two quarters. Instead of implementing a PIP right away, she dug into the underlying causes – and found a shift in market dynamics that required additional product training. This insight informed a better sales improvement plan, and the rep’s win rate increased by 45% in 3 months.
Key reasons to use a PIP:
Missing sales targets for multiple quarters
Big drop in key metrics
Pipeline quality issues affecting forecast accuracy
Big gaps in product knowledge or selling skills
Misalignment with changing sales processes
How to Measure Sales Performance
Before creating a PIP, sales leaders need to have a clear view of their team’s current state, which involves understanding how to measure sales performance effectively. This includes both quantitative and qualitative measurements.
Your Baseline
Start with these core metrics:
Quota Attainment: Measure individual and team performance against targets
Pipeline Quality: Measure deal quality, velocity, and conversion rates
Activity Metrics: Measure key behaviors that drive success
Customer Feedback: Get insights from won and lost deals
One of our clients, a mid-market tech company, found that focusing on quota attainment only masked leading indicators. By adding pipeline quality metrics they could see issues weeks before they impacted results and reduced their average PIP duration by 40%.
Using Data to Improve Performance
Modern sales organizations use advanced analytics tools like Forecastio to monitor real-time performance trends, identify skill gaps, predict potential issues, and track progress. The key is to combine this data with qualitative insights from coaching sessions, customer interactions, and peer feedback to get a complete view of performance.
Creating a Custom Sales PIP
Creating a custom sales PIP is critical to address the specific needs of the underperforming sales rep. A good PIP should take into account the rep’s strengths, weaknesses, and performance gaps. Here are some things to consider when creating a custom sales PIP:
First, identify the root cause of underperformance. Is it a lack of product knowledge, poor communication skills, or inadequate pipeline management? Once you understand the root cause you can develop targeted strategies to improve.
For example, if a sales rep is struggling with product knowledge, additional training sessions and resources can be provided to fill the gap.
Next, set specific, measurable, achievable, relevant, and time-bound (SMART) goals. Define what you want the sales rep to achieve and by when. Make sure the goals are aligned with the company’s overall sales objectives.
For example, a goal might be to increase the sales rep’s conversion rate by 20% in the next quarter.
Create a personalized development plan that addresses the sales rep’s specific needs and gaps. This might include training, coaching, mentoring, or role-playing exercises. By tailoring the development plan the sales rep gets the support they need to overcome their unique challenges.
Create a timeline for improvement. Set realistic deadlines for achieving the desired improvements and break down bigger goals into smaller, manageable tasks so the sales rep can stay on track. This makes the goals more achievable and helps keep the sales rep motivated.
Finally, identify the key performance metrics that will be used to measure progress. This might be sales revenue, conversion rates, or customer satisfaction scores. Track these metrics regularly to see how the sales rep is improving and where they need more attention.
Sales Performance Improvement Plan Template
While data provides the foundation for improvement, turning those insights into action requires a structured PIP performance improvement plan. A good PIP template is your roadmap so everything is addressed systematically and thoroughly.
The template doesn’t just outline what needs to improve – it creates a clear path to success with specific milestones, support mechanisms, and measurement criteria. Let’s look at the key components that make a sales PIP successful and how they work together to deliver real improvement.
Key Components of a Sales PIP
A PIP’s success depends on its structure and implementation. We’ve worked with tens of sales teams to identify the 5 that work.
A clear set of performance standards is the foundation for success. A Director of Sales at a fast-growing software company said:
"We learned to define success in concrete terms. Instead of saying ‘improve demo quality’ we say ‘increase the demo-to-proposal conversion rate from 30% to 45% in 60 days’. This clarity helped our reps focus their efforts and reduce anxiety around unclear expectations".
Your performance improvement plan sales must include specific, time-bound objectives that address both immediate problems and long-term development. An enterprise sales team we worked with was struggling with pipeline quality. Their PIP sales objectives included a concrete target:
Increase qualified opportunity creation by 25% in the next 90 days with at least 70% of new opportunities matching our ideal customer profile. This specificity led to a 35% increase in win rates.
The development plan should be a detailed roadmap to success. Instead of a list of tasks, outline a full journey with targeted training, specific behavioral changes, and clear milestones. Each element should build on the previous one to create a logical progression to better performance.
Support frameworks are key to PIP success. One of our customers created a 3-tier support structure that changed everything. They combined weekly coaching sessions on skill gaps with daily huddles for quick problem-solving and access to senior sales mentors for specific challenges. This full support system had an 80% success rate for their PIPs.
How to Implement a Sales PIP
Implementing a sales PIP requires a structured approach to work. Here’s what to do:
First, communicate the plan. Schedule a meeting with the sales rep to go over the plan and make sure they understand the expectations and goals. Clear communication sets the right tone and makes sure the sales rep is on the same page.
Provide ongoing support and coaching. Meet with the sales rep regularly to give feedback, guidance, and support. Encourage them to ask questions and seek help when needed. This ongoing support is key to keeping momentum and addressing any issues that arise.
Monitor progress by reviewing the sales rep’s performance against the metrics. Use the data to identify areas for improvement and adjust the plan as needed. This data-driven approach keeps the plan relevant and working.
Celebrate along the way. Recognize and celebrate the sales rep’s successes to keep them motivated. Celebrating small wins can boost morale and encourage the sales rep to keep improving.
Address issues quickly. If the sales rep hits a snag, address it quickly and adjust the plan accordingly. This proactive approach gets over the obstacles and keeps the sales rep focused on their improvement journey.
Sales PIP Best Practices
Here are some sales PIP best practices:
Review and adjust regularly. Sales PIPs should be living documents. Review the plan regularly and adjust it as needed to keep it working and relevant.
Focus on behavior change. Sales PIPs should focus on changing behavior not just symptoms. Identify the root cause of underperformance and develop a plan to address it. This leads to more permanent change.
Use data to decide. Use data to decide and measure progress. This will help you identify areas for improvement and adjust the plan. Data-driven decisions are more objective and lead to better outcomes.
Provide ongoing support and coaching. Ongoing support and coaching are key to sales performance improvement. Meet with the sales rep regularly to give feedback, guidance, and support. This ongoing engagement keeps the momentum and addresses any issues.
Celebrate along the way. Celebrating along the way will keep the sales rep motivated to improve. Recognizing achievements no matter how small can boost morale and encourage further progress.
Sales PIP Examples
Example 1: Pipeline Quality Improvement
An experienced sales rep with strong relationship skills was working hard but struggling with low conversion rates. Despite their effort, poor pipeline quality was impacting their quota attainment.
The PIP focused on three key metrics: increase the qualified opportunity conversion rate from 15% to 25%, increase the average deal size by 40%, and reduce sales cycle by 25%.
The action plan was around deepening the rep’s qualification skills through advanced training and regular collaboration with top performers. Weekly pipeline reviews with their sales manager kept them accountable and provided opportunities to course correct. A new qualification framework gave structure to their approach.
Results: 28% conversion rate within 90 days and meet quota the following quarter.
Example 2: Product Knowledge and Demo Effectiveness
A new enterprise sales rep joined with a strong sales background but limited technical knowledge. Their demo-to-proposal conversion rate was 20% which was well below the team average.
The PIP had clear objectives: double the demo-to-proposal rate to 40%, improve technical qualification accuracy, and reduce post-demo technical validation cycles.
Their development journey included completing a full product certification program and weekly mock demos with a solutions engineer. Each demo was recorded and reviewed with feedback incorporated into the next session. They also developed customer-specific demo scenarios to address unique use cases.
Within 60 days their demo-to-proposal rate was 45% and their quarterly pipeline value was up 60%.
Sales PIP Documentation Framework
Documentation is key to a successful PIP, but many organizations struggle with this. You will increase your PIP success rate by creating a documentation framework. It wasn’t about creating more paperwork – it was about clarity, accountability, and measurable progress at every step.
Performance Assessment Documentation
The foundation of good PIP documentation starts with a performance assessment. This should include:
Historical Performance Analysis: Document performance trends over the past 6-12 months, what were the patterns and inflection points where performance started to decline.
Skills and Behavior Assessment: Create a map of the rep’s current capabilities against required competencies, what are the strengths and areas for development.
One Regional Sales Director and Forecastio's customer shared with me:
"We use a capability matrix that covers everything from technical knowledge to soft skills. This allows us to create very targeted improvement plans rather than generic solutions."
Action Plan Documentation
Your action plan documentation should be a living document that evolves with the rep’s progress. It should include:
Primary Objectives: Clear, measurable goals tied to specific metrics.
Development Activities: Detailed description of training, coaching, and skill-building exercises.
Support Resources: Specific tools, materials, and personnel available to the rep.
Timeline: Clear deadlines and milestones for each component.
Sales performance review and Coaching Structure
The frequency and quality of the reviews can make or break a PIP. A VP of Sales from a leading SaaS company said:
"We implemented what we call the 3-2-1 Review Structure – three daily check-ins, two detailed weekly reviews, and one comprehensive monthly assessment. This layered approach helps us catch issues early while keeping focus on long-term improvement."
Daily Performance Monitoring
Daily monitoring should focus on leading indicators and immediate behavior changes. Each morning you should have a 15-minute standup where you review the previous day’s activities and set priorities for the current day. This keeps the rep focused and allows you to adjust quickly when needed.
Key elements of daily monitoring:
Activity metrics sales performance review
Priority alignment
Resource needs identification
Quick problem-solving
Weekly Deep Dives
Weekly reviews require more structure and preparation. You should look at what’s working, what’s not, and what additional support is needed. This structure keeps you solution-focused rather than problem-focused.
These sessions should cover:
Progress against key metrics
Skill development progress
Deal strategy discussions
Resource utilization assessment
Monthly Reviews
Monthly reviews give you the opportunity to step back and look at overall progress. You need to look at trend lines, not data points, long-term improvement not short-term fixes.
Technology and Tools for PIP Success
Modern sales performance improvement plans require the right technology stack to work.
PIP Management Tools
Forecastio Performance Tracking Dashboard: A single place to monitor all key metrics and insights. This should give real-time visibility into progress and early warning signs of issues.
Communication Platform: Set up a dedicated channel for PIP-related communications so all stakeholders are aligned and informed.
Learning Management System: Deploy a system to track the completion of training modules and skill development activities.
Data Analysis and Reporting
Data analysis helps us identify patterns and adjust our strategy. A sales operations manager who uses Forecastio said:
"We create weekly snapshots that show both leading and lagging indicators. This helps us understand not just what’s happening but why it’s happening."
Long-term Success
The last few weeks of a PIP are critical for long-term success. The biggest mistake you can make is ending PIPs too soon. I suggest creating a transition plan that gradually reduces support while maintaining accountability.
Transition Plan
Your transition plan should cover:
Gradual reduction in meeting frequency
Shift from direct supervision to self-management
Ongoing support mechanisms
Clear expectations for sustained performance
Measuring Long-term Success
Track performance for three months post-PIP to ensure the gains stick. This extended monitoring helps you catch any early signs of regression and address them quickly.
Overcoming Sales PIP Challenges
Even well-designed PIPs can face major obstacles. Knowing these challenges and having a plan to overcome them is key for sales leaders.
The Resistance Challenge
One of the biggest barriers to PIP success is emotional resistance from sales reps. A sales director at a fast-growing tech company said:
"When we first started doing PIPs we got a lot of pushback. Reps saw it as a step towards termination rather than an opportunity for growth. We changed that by re-framing our entire approach."
Their solution was threefold:
First, they framed the PIP as a performance acceleration program, focusing on growth and development not correction. Second, they shared success stories from reps who had gone through PIPs and achieved significant career advancement. Third they involved the rep in designing their improvement journey.
"The results were amazing," the director said. "When reps saw themselves as active participants not subjects of the process their engagement and success rates went through the roof."
Communication Breakdown
Poor communication is a PIP killer. Different stakeholders can have different definitions of progress and success. This misalignment created unnecessary tension and confusion.
The solution is to implement "The Communication Triangle":
Every key message about the PIP needs to be delivered and acknowledged in three ways – written, verbal, and demonstrated through actions. This ensures everyone is fully informed and aligned.
Resource Allocation
Many organizations struggle to provide enough resources to support PIPs. Just having a plan isn’t enough. Success requires dedicated resources, time, and support systems.
The solution is to create a resource assessment before launching any PIP. This included:
Training materials and programs
Mentor and coach time
Tools and technology access
Budget for additional support if needed
Advanced Strategies
30-60-90 Reimagined
Traditional 30-60-90 day plans fail because they’re too rigid. A sales leader shared their modified approach:
"We developed what we call the Flexible Milestone Framework. Instead of fixed periods, we focus on achievement-based progression."
This framework includes:
Phase 1: Foundation Building
Focus on immediate behavior changes and quick wins to build momentum. Track daily activities and weekly outcomes to measure progress.
Phase 2: Skill Enhancement
Implement targeted training and development programs. Measure improvement through practical application and results.
Phase 3: Long-term Performance
Gradually reduce support while maintaining accountability. Monitor long-term metrics and adjust as needed.
Culture of Continuous Improvement
The best organizations embed PIPs into a culture of development. Stop treating PIPs as special events and start to see them as part of your regular performance optimization process.
This approach includes regular PIP performance review for all team members, not just the ones struggling. This normalization of performance improvement has reduced the stigma around PIPs, and overall team performance will be increased.
Measuring Success
Measuring the success of your PIP program goes beyond individual success rates.
Primary Success Indicators:
Performance improvement sustainability (12-month view)
Team morale impact
Cost savings versus replacement
Long-term retention rates
You will find that successful PIPs not only improve individual performance but also the team culture and overall turnover.
Future Proof Your Sales PIP Program
As sales environments change PIP programs must too. Modern sales organizations are using advanced analytics to predict performance issues before they need to go into formal PIPs. Develop early warning systems to identify and address potential performance gaps proactively.
The predictive model includes:
Changes in activity patterns
Pipeline quality metrics
Customer engagement metrics
Win rate trends
Conclusion: Beyond Traditional PIPs
The best sales performance improvement plans go beyond fixing. They’re catalysts for growth and development. By using these advanced strategies and being aware of the pitfalls, sales leaders can create PIPs that deliver lasting change.
Success in sales performance management isn’t just about solving problems – it’s about building a resilient high-performing sales organization that can adapt to changing market conditions. The key is to see PIPs not as a last resort but as a valuable tool in your sales development toolkit.
Don’t let underperformance hold your team back any longer. Book a demo with Forecastio today and see how our tool can transform your sales process. This will get your team on track.
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Alex Zlotko
CEO at Forecastio
