Is the Annual Performance Review Dead?
If not completely gone, this old-fashioned system, universally acknowledged as painful, seems to be on its way out at many companies like Adobe, Deloitte, Gap, Accenture, and even GE to be replaced by a continuous performance management process.
The Annual Review
Once upon a time annual performance reviews served the purpose of giving the employer and the employee an opportunity to talk one-on-one and take a measure of performance. But we’ve come a long way since then and have learned more about what it takes to improve individual and team performance.
So What’s the Answer?
Many companies are adopting a peer review system to provide continuous performance management feedback. Done right, the advantages of Continuous Performance Management are many:
The key words are “done right.” Many peer review plans have not panned out and are fraught with defects.
Three Steps for Implementing Continuous Performance Management
But if you follow these three steps, you have a better chance to be among those who rave about ongoing and continuous performance management and rejoice that the annual performance review that used to plague us has been abandoned.
Do the upfront work required to ensure leaders understand how a Continuous Performance Management aligns with creating a high performance culture by recognizing and celebrating positive behaviors that matter most. Use technology that is simple to use and interactive. Ideally, you want employees to be able to salute a peer without having to work through multiple steps.
If, for instance, a key corporate value is collaboration, there should be a category of recognition that emphasizes teamwork and the breaking down of silos. If an employee observes a situation where a peer works effectively with a teammate to solve a long-standing problem, this should be publicly recognized as an “Atta-boy” on the system.
Undeserved praise can have a negative effect. Not only will the praise seem empty to the employee, but others will also be demotivated observing that praise can be too easily earned. Many proponents of a peer review system follow the mantra of “praise publicly and criticize privately.”
The Bottom Line
From our perspective, Continuous Performance Management can be at the heart of a high performance culture by creating performance clarity and by exposing where people stand.
Tl learn more about performance management trends, download Performance Management Best Practices – 5 Factors
Get key strategy, culture, and talent tools from industry experts that work
Assess how you stack up against leading organizations in areas matter most
Download published articles from experts to stay ahead of the competition
Review proven research-backed approaches to get aligned
Stay up to do date on the latest best practices that drive higher performance
Explore real world results for clients like you striving to create higher performance