Eben Pagan Interviews Sir Richard Branson
Eben Pagan shares his 'Daily Update' system for evaluating new hires within 30 days. This simple yet powerful assessment tool reveals employee performance patterns, accountability levels, and communication skills through daily email reports.
Teachings 5
The Daily Update system requires new hires to send a 5-10 minute daily email covering three areas: what they accomplished, problems encountered, and questions they have
Eben Pagan used this system recently with great success. The email must contain: 1) what I did today and results I got, 2) problems or challenges that came up, 3) questions I have for you
Watching daily updates for 30 days reveals more about an employee than people who have known them for years because you see their true patterns
The system reveals if they are results-driven vs activity-driven, whether they ask new questions, get curious, what they perceive as problems, and most importantly whether they send the update consistently every day
The most basic test of the Daily Update system is simply whether the employee sends it every day - consistency reveals accountability and communication style
After 30 days you might have received 12 updates, 6, or none. Underperforming employees usually don't send the update every day, while performers might miss some but still deliver results
High performers who miss daily updates can be coached or given assistant support, but non-performers who also miss updates should be terminated
If someone is a superstar but didn't send daily updates, you can get them an assistant to send updates. But if they're not performing AND not sending updates, it's time to let them go
The Daily Update system provides clear documentation for termination conversations by focusing on the one consistent request that wasn't fulfilled
After 30 days you can tell underperformers: 'I asked you to do one thing consistently for 30 days - send me a daily update. We need results, accountability and communication and it's not your style to do that'
Quotable Moments 3
“it's not the person you hire it's the person you don't fire that destroys the business”
— Eben Pagan“if you will watch someone's daily updates every day for 30 days you will learn so much about them that people have known them for years don't even realize because you will see the pattern”
— Eben Pagan“we need results and accountability and communication and it's just not your style to do that”
— Eben Pagan
How to Implement the Daily Update System for New Hires
A 30-day employee evaluation system using daily email reports
- 1
Set Clear Expectations
On day one, sit down with the new hire and explain they need to send you a daily update email that takes 5-10 minutes maximum
- 2
Define the Three Components
Tell them each daily update must include: what they accomplished and results they got, problems or challenges that came up, and questions they have
- 3
Monitor for 30 Days
Watch their daily updates to assess if they are results-driven vs activity-driven, whether they ask new questions, how they handle problems, and most importantly if they send updates consistently
- 4
Evaluate and Decide
After 30 days, determine if they're a high performer (keep regardless of update consistency), or underperformer who also missed updates (terminate with clear documentation)
Questions Answered
How do you evaluate new employees in the first 30 days
“if you will watch someone's daily updates every day for 30 days you will learn so much about them that people have known them for years don't even realize because you will see the pattern”
— Eben Pagan▶ 1:05
Use the Daily Update system where new hires send a 5-10 minute daily email covering what they accomplished, problems they faced, and questions they have. This reveals performance patterns and accountability levels within 30 days.
What should be included in a daily employee update email
“in the daily update I want you to tell me three things number one what I did today results I got right number two problems or challenges that you know came up number three questions that I have for you”
— Eben Pagan▶ 0:31
Daily updates should include three components: what you accomplished and results you got, problems or challenges that came up, and questions you have. The email should take only 5-10 minutes to write.
How do you fire an employee who fails the daily update test
“you can just say look I ask you to do one thing consistently for this 30 days right I ask you to do one thing and which just send me a little daily update”
— Eben Pagan▶ 2:38
After 30 days, you can have a clear termination conversation by pointing out they failed to consistently do the one thing you asked - send daily updates. Explain that you need results, accountability, and communication, and it's not their style.
What if a high performer doesn't send daily updates consistently
“if they're a superstar and they didn't send the daily update every day you can say we're going to get you an assistant that's going to send your updates every day”
— Eben Pagan▶ 2:07
If someone is a high performer but inconsistent with daily updates, you can provide them with an assistant to handle the updates or coach them on the importance of communication while keeping them on the team.
How long should daily employee updates take to write
“it should take you five minutes to do 10 minutes max if it takes you more than 5 to 10 minutes you're doing something wrong”
— Eben Pagan▶ 0:31
Daily updates should take 5-10 minutes maximum. If it takes longer than that, the employee is doing something wrong and overthinking the process.
Summary
The Foundation: Hire Slowly, Fire Quickly
Eben opens with the critical principle that it's not the person you hire, but the person you don't fire that destroys businesses. This sets up the need for systematic employee evaluation.
The Daily Update System Explained
The core methodology involves new hires sending daily 5-10 minute emails covering accomplishments, problems, and questions. This simple system reveals more about employee patterns than years of traditional observation.
Reading the Patterns
After 30 days of daily updates, clear patterns emerge showing whether employees are results-driven, accountable, curious, and communicative. The consistency of sending updates is itself a crucial performance indicator.
Making the Decision
High performers can be coached or supported even if they miss updates, but underperformers who also lack accountability should be terminated. The system provides clear documentation for these difficult conversations.
Counterpoint
Claim: “You need extensive performance reviews and long probation periods to evaluate new employees”
Reframe: A simple 30-day Daily Update system reveals more about employee patterns than years of traditional observation
Watching someone's daily updates for 30 days shows whether they're results-driven vs activity-driven, their problem-solving approach, curiosity levels, and basic accountability - patterns that people who've known them for years don't realize
Key Points 5
The Daily Update system requires new hires to send a 5-10 minute daily email covering three areas: what they accomplished, problems encountered, and questions they have
▶ 0:31Watching daily updates for 30 days reveals more about an employee than people who have known them for years because you see their true patterns
▶ 1:05The most basic test of the Daily Update system is simply whether the employee sends it every day - consistency reveals accountability and communication style
▶ 1:36High performers who miss daily updates can be coached or given assistant support, but non-performers who also miss updates should be terminated
▶ 2:07The Daily Update system provides clear documentation for termination conversations by focusing on the one consistent request that wasn't fulfilled
▶ 2:38Topics
Business Frameworks
Common Mistakes