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Posted On 09.14.09

It seems everyone hates the annual performance review.

Managers hate writing them. Employees hate receiving them. Human resource pros hate chasing managers down to do them and talking to unhappy employees about their appraisals. Why do we even bother?

The goal of the performance appraisal, I think, is two-fold:

  1. Have an ongoing discussion with the employees about their performance - what they’re doing well, and where they need work.
  2. Have written documentation of employee performance, for promotions, discipline, and so on.

The traditional performance appraisal seems pretty ineffective at achieving either of those goals.


Many managers avoid performance conversations all year - until the appraisal roles around. And then when they’re forced to talk about performance, they fear having uncomfortable conversations, so they overrate poor performers, underrate good ones, or play favorites. That makes the appraisals an ineffective tool to either communicate performance or to document it.

So how do we fix the performance management? Hold managers accountable for being managers.

Frank Roche from Know HR advocates something called the daily performance review.

Managers should be having conversations every day (or at least every week) with their employees about their performance. These don’t have to be stuffy, awkward affairs - just a casual “here’s what you’re doing great and here’s where I think you need some work” kind of discussion.

Since documentation is a goal of the appraisal, too, require the manager to write a short paragraph about the discussion, summarizing the key points. If your Legal team needs something more official, both the manager and employee can sign it.

How much more painless would that be? The key thing is that it needs to happen every week. That makes it easier to give timely and relevant feedback, and makes the process a lot more manageable than writing a massive appraisal once a year.

This process would be something managers would themselves be evaluated and goaled on. Ongoing communication around performance (a.k.a. helping your people become rockstars) is what being a manager is all about.

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Comments

09.14.09

There is a reason why continuous discussions about performance don't take place: they require a LOT of effort.

First you need a clear set of goals for the team. What department has that these days? Priorities are constantly shifting, projects get started and cancelled, deadlines move. How can you determine where the goal is, if the goal line keeps moving?

Then you need a clear set of goals for the employee. But who sets those goals? The hiring manager? The team lead? The project manager of the multiple project teams that the employee belongs to?

The problem is that much emphasis has been placed on creating a fast-paced work environment, with teams of employees that come together to accomplish a project under a new team leader and then disband. Additionally, managers are told to 'empower' employees, delegating increasing amounts of responsibility to their subordinates, and then 'get out of the way' and let employees do their jobs.

With such a free-wheeling work environment, where managers don't manage, and employees do their own thing, is it any wonder that no one has the energy to organize everything and actually set goals and determine performance?

09.14.09

@Scott - Empowering your employees doesn't mean you don't need to manage them. It means freeing them up to make intelligent choices, and then, giving them feedback on those choices. Were they wise? What could/should they have done differently? What did they do well? Do they need any help?

A fast-paced work environment is in no way an excuse not to manage. I also don't believe that ongoing performance discussions are more work than a well written performance appraisal. The problem is that most appraisals are poorly written and not timely.

Cumulatively, regular convos might amount to slightly more work, but the impact is tremendously more effective and meanginful.

09.14.09

I totally agree with the weekly performance reviews! When I have a performance review, I have to sit through 3 pages of my boss talking...mostly of what I did right/wrong MONTHS ago! Like anyone, my mind is somewhere else. If they would shorten it up, I would be able to improve what I was doing incorrectly immediately! Plus, I believe management would have much happier and motivated employees! *I think I'll ask my boss to do this =)*

09.14.09

@Melinda - Awesome! Let me know how it goes!

katenonymous
09.14.09

In my last job, my manager said, "Here are the goals we agreed on at the beginning of the year. Tell me how you met them, and anything you did in addition to them." Then she took my comments and used them as one of the inputs for the review.

Mind you, this was someone who gave feedback regularly, and was very open to being asked for feedback. That meant that any problems got caught and fixed early, and therefore weren't worth bringing up in the annual review.

I don't think there's anything wrong with the annual review. A year is a common and natural marker in the rhythm of life, and there's no reason not to use it in the workplace, too. However, lots of people DO annual reviews wrong. That's a training and procedural issue, though, and not an issue with the basic philosophy.

09.14.09

@KateNonymous - Based on what you typed above, I can't help but wonder... what's the benefit in doing the annual review?

It sounds like you were basically writing your own, but still getting coaching and feedback in a timely manner throughout the year. Why not just scrap the review all together?

09.15.09

Chris,

I really like your philosophy and agree with it whole-heartedly. The annual review just doesn't make that much sense to either--especially with how business works these days. Everything is so instantaneous, so high-speed internet driven, the annual review just seems so archaic. I think we should be getting constant feedback from managers. The annual or bi-annual reviews should be a time for goal setting, but the feedback, that needs to be coming all the time.

09.15.09

@Sharalyn - Thanks! The question now, I suppose, is how us HR pros can make it a reality.

katenonymous
09.15.09

@Chris The benefit is that my boss and I each get a year-long overview of how we see my performance--it isn't one-sided. As for things being instantaneous, well, that depends on the business.

Regular feedback is great, but it does not present a big picture. It's immediate, but narrow. Annual reviews provide perspective over time.

09.15.09

@Kate - I would counter that regular and ongoing feedback, if done right, should be neither one-sided or short-sighted.

Sometimes feedback will be about specific tasks, but a good manager should be regularly comparing your performance against broader goals - not just once a year. And feedback discussions should always be just that - discussions. That means two-way feedback.

09.15.09

@Chris: Just to be clear, I agree with you on what needs to be done. I just think that often the amount of effort required is dismissed as "slightly more work". A manager with 50 employees is going to have a difficult time having 50 weekly performance reviews, especially when each employee is working on a half-dozen different tasks.

Instead, I think it needs to be clear that ongoing evaluations ARE time consuming, but they are worth it. They improve employee morale and performance. Not just because employees know their management cares about their work, but because employees have a clearer sense of what they should be focusing on, which makes for less stress and better performance.

09.15.09

@Scott - Very great point. I may be trivializing the amount of actual work this kind of feedback requires for managers with many direct reports.

I do believe it's incredibly important though, and far superior to the traditional type of appraisal. I also think that this sort of thing is what being a manager is all about. Otherwise, you're just a supervisor.

katenonymous
09.15.09

@Chris That might be feasible if your manager's only job responsibility is giving feedback to subordinates. I have never worked for that manager.

And, frankly, I don't want to. That's a system practically guaranteed to devolve into micromanagement, which is a waste of everyone's time.

Ongoing feedback combined with an effective annual review is actually a pretty strong system. But neither I nor my manager has time for a formal weekly review. We're both too busy getting our jobs done.

09.15.09

@Kate - One word can make a world of difference. I don't believe I ever said "formal". I see no reason why regular, casual feedback can't include some component of looking at your performance in the context of bigger organizational goals. Maybe not every week, but certainly every month or quarter.

What should I manager be evaluating your performance on, if not against goals?

katenonymous
09.15.09

You know what, though? I'm willing to delete the word "formal" and still stand by my statement.

And why is a month or a quarter different from a year? Answer: they're not, really, because all arbitrary demarcations that are based on external time measurements, not on the lifespan of a project or a corporate cycle (aside from the financial cycle).

It is less likely that a narrower time frame will include a wider perspective. If you do quarterly reviews, people are likely to look at that quarter, and maybe the one before. If you do monthly reviews, people will look at that month.

There's no reason not to do both. But you haven't really given a good reason for scrapping the annual review; your substitutes offer some potential improvements, but other losses. The balance is doing both. But none of them are worth doing if they're done poorly.

Which takes me back to my original point: their utility depends on whether they're taken seriously, particularly by management (why management? because they set the tone).

09.16.09

"And why is a month or a quarter different from a year? Answer: they're not, really, because all arbitrary demarcations that are based on external time measurements, not on the lifespan of a project or a corporate cycle (aside from the financial cycle)."

I don't agree. A month or quarter are different because they're more frequent. They're more immediate. The feedback is more timely.

I actually get what you're saying about taking an annual look at your performance (on a macro level) and looking at how it aligns with the organization's goals. I'm not sure that's the same thing as what we currently call the annual performance appraisal, though. And I do still believe that's something that can and should be done regularly throughout the year, in addition to perhaps a higher level overview annually.

katenonymous
09.16.09

Again, it is--if it's done right. Nowhere have I said that the annual review should be the only checkpoint. Nowhere. I have said that different types of feedback have different purposes.

Constant feedback can also be done badly. The issue isn't when the feedback happens, so much as whether it's effective, targeted, and substantive.

The concept of the performance review isn't inherently flawed. It's actually quite sound. It's the execution that is often flawed--separate issue, and indicative of management problems on more than one level. But they are different issues.

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