Episode 190: Melanie Naranjo (VP, People, Ethena) & Vanesa Cotlar (VP, People & Culture, PolicyMe) on Performance Management

Listen to our recent episode with Vanesa Cotlar (VP, People & Culture, PolicyMe) and Melanie Naranjo (VP, People, Ethena).

We discussed the three questions every manager should be asking themselves about their direct reports, why setting expectations with new hires can go a long way in improving performance, and how to create a common language for employees around performance.

If you don't have time to listen, read the highlights below. ??

1. Three key questions managers should ask themselves about their team ??

"The ways in which people try to measure performance and the value that people are bringing are incredibly antiquated and inefficient," says Melanie Naranjo, VP of People at Ethena.

Instead of convoluted rubrics, Ethena simplifies it with just three questions:

1?? Would you hire them again?

2?? If they quit today, would you feel relieved or panicked?

3?? Are they making your job easier or harder?

These questions strip away emotion and focus on real value.

As Melanie explains, "Our player-coach managers don’t have time for complex evaluations but need effective tools. It's about understanding your audience and meeting them where they are."

2. Tip for managers: Color code employee feedback ?

Melanie shared a powerful tip to help managers give feedback more effectively. She said, "We color-code our feedback: yellow is nice to have, orange means no promotion or raise without action, and red is urgent—you risk losing your job."

She added, "This system is so ingrained in our culture that employees ask for clarification when unsure, saying, 'Is this an orange or a red?' It's essential to support managers to communicate clearly without fear. Instead of just telling them to do something, give them tools to say it more easily. Saying, 'This orange has now veered into red' is much easier than 'Your job's at risk.'"

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3. Managing expectations and checking in with new hires during the first 90 days is crucial ??

Vanesa shared where she sees many companies fumble: the first 90 days of a new hire’s journey.

She says those early days are goldmines for feedback and determining if the newbie is the right fit.

Vanesa pointed out that the interview process isn’t perfect. Big decisions are made based on a few hours of chit-chat, and while most hires hit the mark, sometimes expectations need a reality check early on to avoid a mismatch.

To address this, PolicyMe has implemented a system of check-ins at one week, 30 days, 60 days, and 90 days.

These check-ins are quick but effective, ensuring open conversations that keep everyone on the same page and nip any issues in the bud.

Vanesa sums it up perfectly: “It’s about making it a habit. We check in, and if all’s good, we move on. If not, we talk about it.” This keeps the communication lines open and sets the stage for long-term success.

4. Navigating tricky career conversations ???

Vanesa emphasized the importance of understanding employees' career goals and matching them with business needs. She said, "We talk about it openly. When discussing career planning, we're clear that your forever career likely won't be at PolicyMe."

Translation: Your career journey is just as important as the company’s goals. It’s all about finding that sweet spot where both can thrive.

These conversations are a two-way street. If PolicyMe can’t provide the next step up the ladder, they help employees find opportunities elsewhere. "We’ve done that a few times. Someone wanted to level up, but we didn’t have the need for that role yet," Vanesa shared.

And when roles evolve beyond what an employee can handle? PolicyMe keeps it transparent. "We have open conversations about role changes and necessary skills. If they add value but can’t meet new demands, we explore other roles within the business or help them find opportunities elsewhere."

PolicyMe’s strategy is all about balancing business needs with employees' aspirations.

Bottom line: Open conversations and mutual growth. That's how you build a high performing team.

Go listen to the full episode: Apple | Spotify

See you next week!

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