Giving Effective Annual Performance Reviews
(Not for the faint of heart or the unprepared...)
In my last post, I addressed how to productively receive and learn from an annual performance review. This post will take on the other half of this equation: how to prepare for and deliver high-quality, meaningful annual performance reviews to your team while still being true to yourself and your values. It is a topic that comes up in my coaching, especially toward the end of the year.
I’ve received more than 35 annual performance reviews in my working career, and I’ll admit it: I remember very little about the majority, other than that there were no disasters. But in the middle of my career, I had a 10-year run as a partner at Bain & Company. During that time, I cherished every one of the annual performance reviews I received, and I still have them in a folder. It wasn’t all praise either; there were some tough messages in some of those reviews. Why did these reviews mean so much more to me than the ones I received before or after at other places of employment? I’ll try to address these questions and offer some suggestions on how to provide great annual feedback in the form of a hypothetical conversation between coach and executive leader.
Coach: “What’s the topic you want to address today?”
Executive: “It’s mid-December, and I am up to my eyeballs to writing performance reviews (APRs) for my team. Honestly, it’s bumming me out, and I am not looking forward to the whole feedback cycle. It’s impossible to get this done on time and with integrity.”
Coach: “OK. So, I get the topic and I can sense your stress. What do you want to take away from our conversation today?”
Executive: “It would be great if I could be clearer about how I can effectively deliver these APRs and still be true to my values and have a tactical plan to do that. Having that would go a long way to reducing my stress.”
Coach: “OK. So, I hear a few different things that would be good to parse out. First, the facts. Your company has an APR process that requires everyone to receive a formal APR, in a certain form, by a certain date – correct?”
Executive: “Yes, that’s right. I have nine reviews to deliver no later than January 15th, and all reviews need to be submitted to HR by December 31st for quality review and calibration.”
Coach: “Now to your perspective about the facts. You’ve signaled a few beliefs about this process – first, that it is draining your energy and fueling your stress. Second, that writing reviews for your team is creating values conflicts for you. And I will use my intuition on another perspective here – feel free to correct my intuition if it’s misplaced – that the process isn’t valuable or worth your time and effort. What’s on- or off-target about my comments?”
Executive: “You’re absolutely right that I’m a stressball about this and I am avoiding doing it (which is creating more stress). And yes, your intuition is right – I have some issues with how we as a company run the whole process, which demotivates me a bit. This sort of overlaps with the values part of it.”
Coach: “Say more about that?”
Executive: “Well, efficiency is a big value for me, and if I think part of the process isn’t working right or is too bureaucratic, I feel the tug of conflict. And honesty is a big value for me, and I don’t have confidence that I can be totally honest with employees when they (inevitably) ask about how we arrive at their performance ratings. And lastly, conflict is a big anti-value for me, and I dread being challenged by an employee, or upsetting them.”
Coach: “I can see why the review process might be fraught for you. Do you also have some positive perspectives on the process? Think about the ideal for you – what would it look like?”
Executive: “Well, I do really like the idea of taking dedicated time to sit down and reflect upon the year’s accomplishments with each employee and also have time to discuss further areas of professional and personal growth. Those don’t happen often enough in the daily grind. And as you know from our prior discussions, I try to foster a supportive environment for my staff, and the review touchpoint is a great way to signal and reinforce that.”
Coach: “I’ve worked with you for a while. I have observed you and listened closely. I know you have the skill and the will to do this well. My question is: What is your aspiration in delivering APRs this year?”
Executive: “My flip answer would be – ‘just get it off my plate as fast as possible’ – but you know me better than that. On reflection, I would say my aspiration is the deliver the kind of performance reviews that I wish I had received earlier in my career, and to make them the kind of reviews that people will save, refer back to, and feel were an honest, fair, and constructive summation of the year behind us and the year ahead. I would like my employees to know that I see them and value them.”
Coach: “I love that notion – it’s a bold and compassionate aspiration and I am not surprised to hear it coming from you! Now, if that is your aspiration, what do you need to do to achieve that? Lay it out like a project plan.”
Executive: “OK, OK. You got me! Here’s my best shot. First, I need to set aside the time for adequate preparation. I’ve been procrastinating about doing the work because I have been ambivalent about the process, but somehow the aspiration is helping. I will just have to work around the parts of our corporate BS that I don’t like. To prepare, I need to get data from a variety of sources – formal and informal “in-year” reviews, peer and client feedback, and self-evaluations. I need to review each employee’s prior goals and their quantitative and qualitative achievements versus the goals. Then I need to document concrete examples and data to support achievements and development areas. Then I need to reflect on each employee’s growth, skills they have acquired or enhanced, and how they have impacted the rest of the organization.”
Coach: “That sounds like a good start. What worries you about that, if anything?”
Executive: “Getting organized around all the data is a little bit daunting and it also highlights that maybe I haven’t been paying close enough attention to everyone during the year. Maybe that’s really underlying my dragging feeling on this.”
Coach: “Well, I hear your Stickler and Perfectionist saboteurs raising their heads again a bit. Your review and summary do not have to be perfect. They have to objectively reflect the truth as well as you can know it. I trust your integrity to put in the time and effort to get these to be high quality. And you may want to make a mental note for this coming year to maintain some ongoing notes during the year that can support you when you write next year’s reviews. What comes next?”
Executive: “I appreciate your support. Next, I need to create a supportive environment. For me, that means ensuring we find a private space to have a good, open dialog and where I am not highlighting the power dynamic between us. Meaning, it might not be great to have it in my office with me behind my desk and my employee in a visitor’s chair. I need to allocate enough time so that we don’t feel rushed. I don’t want to leave the impression that this is a perfunctory exercise. Last, I need to approach the conversation as a two-way dialogue rather than a critique. I aim to show empathy, respect, and support throughout the discussion.”
Coach: “Tell me more about the communication dynamic you are planning”.
Executive: “I want each employee to feel that this isn’t one-sided. So, I’ll ask open-ended questions to encourage discussion and avoid “yes-no” type questions. I will employ all those active listening skills we worked on last month – never too old or experienced to benefit from truly active Level 2 and Level 3 listening skills. And last, I will ask for input on my management style, team dynamics, and company processes.”
Coach: “That sounds amazing. What about the feedback itself?”
Executive: “On the feedback front, I will start with positives by recognizing each employee’s contributions and celebrate achievements. I will provide specific examples to make the praise meaningful. Where there are areas for improvement, I will address them thoughtfully by framing the feedback as opportunities for growth rather than criticism. For example, ‘I see potential for you to be more effective as a communicator by being more succinct in executive presentations.’ I will make sure that I follow the "SBI" model: describing the Situation, the Behavior, and its Impact. This will keep feedback focused and actionable.
Coach: “That sounds great. Are there things you want to avoid doing in the feedback sessions, or in the preparation?”
Executive: “Well, I need to ensure I don’t overweight the last few months of performance when I try to assess the whole year. That recency bias could cause me to over- or undervalue the entire year of performance. I also need to avoid being vague in both my praise and when discussing opportunities for growth and improvement.”
Coach: “Can you give me an example?”
Executive: “Well, I guess what I am thinking about are expressions like ‘You’re doing great!’ without specifying why the person is doing great; or ‘Your upward communication could be better,’ without specific supporting examples and suggestions for how to improve. Being vague in either direction makes the review seem shallow and generic, and the employee is less likely to feel valued.”
Coach: “I feel like you are on the right track. Anything else you want to add to your plan?”
Executive: “A few final thoughts. I want to be sure I don’t just focus on development opportunities or negatives; I need to have the discipline to cover strong accomplishments and acknowledge each person’ contributions. I also don’t want the review to only be a ‘rearview mirror’ exercise: I want to build off the year’s summary and provide guidance on how to grow in the coming year. Perhaps strong stretch goals or assignments and suggestions on how the employee can accelerate their growth trajectory. And I want to make sure to end on a positive note.”
Coach: “So, how do you feel now?”
Executive: “I feel more motivated to dig into these reviews and more prepared to have the conversations. It feels more intentional and purposeful to me. And I feel like I can really represent my values in the process.”
Coach: “That’s terrific. What accountability do you want?”
Executive: “I commit to getting five reviews written and submitted by this Friday, and the remaining four by next Friday, before the corporate deadline. I will email you to confirm that these have been done.”
Coach: “Sounds like a plan.”
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Providing annual performance feedback to your team can be a moment of truth or a trainwreck. They are different than project reviews or interim check-ins; they feel more like “your permanent record” since they are meant to summarize a variety of different work experiences, and they usually directly impact an employee’s compensation. How you approach your role in the review process can go a long way toward making the interaction rewarding for you and your team members. High-quality performance reviews are often the most notable difference between a so-so corporate culture and an excellent corporate culture, and between middling performance and world-class performance. When done well, they can be impactful and motivating for your staff.
An Inquiry: “What was the most impactful annual performance review you have received, and what can you learn from that when you are the reviewer, not the reviewee?”